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HomeMy WebLinkAbout2006-09-06 Council MinutesAGENDA KENAI CITY COUNCIL - REGULAR MEETING SEPTEMBER 6, 2006 7:00 P.M. KENAI CITY COUNCIL CHAMBERS http://www.ci.kenai.ak.us ITEM A: CALL TO 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 Orders. ITEM B: SCHEDULED PUBLIC COMMENTS (10 mvsutes) ITEM C: UNSCHEDULED PUBLIC COMMENTS (3 minutes) ITEM D: REPORTS OF KPB ASSEMBLY LEGISLATORS AND COUNCILS ITEM E: PUBLIC HEARINGS Ordinance No. 2180-2006 -- Repealing the Existing KMC 21.05 (Airport Administration and Operation), KMC 2 1. 10 (Leasing of Airport Lands), KMC 21.15 (Provisions Required) and KMC 21.20 (Policy Governing Modification of Existing Leases), and Replacing Them With KMC 21.05 (Airport Administration and Operation), KMC 2 1. 10 (Leasing of Airport Reserve Lands) and KMC 21.15 (Lease and Sale of Airport Land Outside of the Airport Reserve). Clerk's Note: A motion was passed at the August 16, 2006 meeting to postpone action on Ordinance No. 2180-2006 to September 6, 2006 and that a second public hearing be held at that time. a. Substitute Ordinance No. 2180-2006 -- Repealing the Existing KMC 21.05 (Airport Administration and Operation), KMC 2 1. 10 (Leasing of Airport Lands), KMC 21.15 (Provisions Required) and KMC 21.20 (Policy Governing Modification of Existing Leases), and Replacing Them With KMC 21.05 (Airport Administration and Operation), KMC 2 1. 10 (Leasing of Airport Reserve Lands) and KMC 21.15 (Lease and Sale of Airport Land Outside of the Airport Reserve). 2. Ordinance No. 2181-2006 -- Increasing Estimated Revenues and Appropriations by $20,000 in the General Fund Library Department for a State Grant. 3. Ordinance No. 2182-2006 -- Increasing Estimated Revenues and Appropriations by $40,000 in the General Fund Police Department for a State Grant. 4. Ordinance No. 2183-2006 -- Repealing the Existing KMC 7.30 (Airport Land and Terminal) and Replacing It with a New KMC 7.30 (Airport Land Sale Permanent Fund). 5. Ordinance No. 2184-2006 -- Amending Portions of KMC 1.56 (Kenai Municipal Library Department) and KMC 1.57 (Library Connnission) Regarding Lending Policies, and Replacing the Term 'Librarian" with "Library Director." 6. Ordinance No. 2185-2006 -- Establishing a Central Mixed Use Zone (CMU) at KMC 14.20.125 and Amending the Various Parts of the Kenai Zoning Code by Adding the Provisions to Encompass the New Zone, and Updating Portions of the Land Use Table at KMC 14.22.010. 7. Ordinance No. 2186-2006 -- Amending Estimated Revenues by $3,580 in the Senior Citizen Title III Fund and Increasing Estimated Revenues and Appropriations by $1,000 in the Senior Citizen Fund. 8. Ordinance No. 2187-2006 -- Increasing Estimated Revenues and Appropriations by $24,630 in the General Fund to Pay for Attorney's Fees Awarded in the Recreation Center Litigation. 9. Resolution No. 2006-50 -- Transferring $8,000 in the Airport Fund to Purchase Equipment. ITEM F: MINUTES *Regular Meeting of August 16, 2006. ITEM G: ITEM H: 1. Bills to be Ratified 2. Approval of Purchase Orders Exceeding $15,000 3. *Ordinance No. 2188-2006 -- Increasing Estimated Revenues and Appropriations by $500 in the General Fund to Purchase Library Books. 4. *Ordinance No. 2189-2006 -- Increasing Estimated Revenues and Appropriations by $16,000.00 in the General Fund for a Homeland Security Grant to Fund a Rewrite/Revision of the City of Kenai Emergency Operations Plan. 5. Approval -- Election Boards/October 3, 2006 City of Kenai General Election 6. Approval -- Amendments to Library Regulations 7. Discussion -- Proposed Angler Drive Special Assessment District/Report of City Manager. ITEM I: COMMISSION/COMMITTEE REPORTS 1. Council on Aging 2. Airport Commission 3. Harbor Commission 4. Library Commission 5. Parks & Recreation Commission 6. Planning & Zoning Commission 7. Miscellaneous Commissions and Committees a. Beautification Committee b. Alaska Municipal League Report ITEM J: REPORT OF THE MAYOR ITEM K: 1. City Manager 2. Attorney 3. City Clerk ITEM L: DISCUSSION 1. Citizens (five minutes) 2. Council EXECUTIVE SESSION -- None Scheduled ITEM M: ADJOURNMENT KENAI CITY COUNCIL - REGULAR MEETING SEPTEMBER 6, 2006 7:00 P.M. KENAI CITY COUNCIL CHAMBERS http://www.ci.kenai.ak.us MAYOR PAT PORTER, PRESIDING MINUTES ITEM A: CALL TO ORDER Mayor Porter called the meeting to order at approximately 7:00 p.m. in the Council Chambers in the Kenai City Hall Building. A-1. PLEDGE OF ALLEGIANCE Mayor Porter led those assembled in the Pledge of Allegiance. A-2. ROLL CALL The City Clerk took roll. Present were: Mike Boyle Pat Porter, Mayor Joe Moore, Vice Mayor Linda Swarner Rick Ross Robert Mollo A quorum was present. A-3. AGENDA APPROVAL Mayor Porter noted the following item to be added to the packet: ADD TO: E-Ia -- Exhibit 2A (map indicating current Airport Reserve Boundary, and recommended boundaries of consultant, Airport Commission and Administration). MOTION: Council Member Molloy MOVED to approve the agenda and with the addition of E-la, Appendix I -a map. Council Member Moore SECONDED the motion and requested UNANIMOUS CONSENT. There were no objections. SO ORDERED. A-4. CONSENT AGENDA MOTION: Council Member Molloy MOVED to approve the consent agenda. Council Member Ross SECONDED the motion and requested UNANIMOUS CONSENT. There were no objections. SO ORDERED. ITEM B: SCHEDULED PUBLIC COMMENTS -- None. KENAI CITY COUNCIL MEETING SEPTEMBER 6, 2006 PAGE 2 ITEM C: UNSCHEDULED PUBLIC COMMENTS -- None. ITEM D: REPORTS OF KPB ASSEMBLY LEGISLATORS AND COUNCILS Assembly Member Margaret Gilman reported on actions taken at the September 5, 2006 Borough Assembly meeting, including the passage of the Senior Citizen Tax Exemption ordinance. She noted, a request for reconsideration had been made and the issue would be before the Assembly again at their September 19 meeting. ITEM E: PUBLIC HEARINGS E-1. Ordinance No. 2180-2006 -- Repealing the Existing KMC 21.05 (Airport Administration and Operation), KMC 2 1. 10 (Leasing of Airport Lands), KMC 21.15 (Provisions Required) and KMC 21.20 (Policy Governing Modification of Existing Leases), and Replacing Them With KMC 21.05 (Airport Administration and Operation), KMC 21.10 (Leasing of Airport Reserve Lands) and KMC 21.15 (Lease and Sale of Airport Land Outside of the Airport Reserve). Clerk's Note: A motion was passed at the August 16, 2006 meeting to postpone action on Ordinance No. 2180-2006 to September 6, 2006 and that a second public hearing be held at that time. Mayor Porter opened the floor to allow additional public testimony on the ordinance. Rick Baldwin, Chair, KEDS Action Team -- Reported the Team had the opportunity to review and comment on the ordinance; the Team was not advocating any particular portion of the ordinance; the Team's comments on the boundary was included in the council meeting packet; in their comments, the Team did not take into consideration airport needs; the Team felt selling the land is better than leasing it when wanting to develop land, i.e. owners are more apt to put long-term investment into the property; selling land would bring immediate revenue to the city; and, the Team did not feel it good public policy to require a business plan to be submitted with a lease application (the most egregious were noted as KMC 21.10.040(3)(iii, iv, v) in the substitute ordinance). He added, the Team believed requiring a business plan may discourage applicants from disclosing their business plan to potential competitors, i.e. a business plan would be a public record; if an airport -related business, the applicant would be disclosing a business plan to potential competitors who may be members of the Airport Commission; and, it is not necessarily within the expertise of city government to determine a business plan is viable or not. Kristine Schmidt, 513 Ash Avenue, Kenai -- Schmidt noted she felt Council should be conservative in their decision and accept the recommendation of the consultants; KENAI CITY COUNCIL MEETING SEPTEMBER 6, 2006 PAGE 3 it would be easier to take property out of the Reserve than to put it back in; once property is taken out of the Reserve, it cannot be put back in; felt there was no financial data to support not using the recommendation of the consultants; felt it appropriate to request a business plan; would prefer leasing the remaining land instead of selling it; and, believed land could be leased, i.e. Safeway and Home Depot are situated on long -leased land and which did not stop them from building elaborate facilities. Comments included: • The property on which Safeway is situated is not owned by the City. • The Home Depot owns its store site property as well. • The Reserve could be expanded to include property owned by the City. • The Reserve boundary could be drawn around property privately owned, but the rules would not apply. If privately owned property becomes available for the City to purchase, the City could choose to include the property in the Reserve. • There is no prohibition to place property back in the Reserve that had been previously removed from the Reserve. • Airport funds would be used to re -purchase property to be placed back in the Reserve. Jason Carroll, 407 Eadies Way, Kenai -- Carroll stated he agreed with Baldwin related to leasing property versus fee simple land; leasing property would hurt small business owners because it is more difficult to acquire financing to develop leased property due to bank concerns for possible investment; it is difficult to sell leased properties; and, believes it better to sell to have the immediate revenue stream for interest earning, etc. Dr. Pete Hansen, 418 Rogers Road, Kenai -- Hansen stated he believed it more important for the council to make adequate land available for small businesses to purchase, develop, and from which to profit. Glenda Feeken, 10672 Kenai spur Highway, Kenai -- Feeken requested council to take into consideration that she is a realtor and has been having realty agents from Anchorage calling and wanting to purchase land and not to lease land. E-la. Substitute Ordinance No. 2180-2006 -- Repealing the Existing KMC 21.05 (Airport Administration and Operation), KMC 2 1. 10 (Leasing of Airport Lands), KMC 21.15 (Provisions Required) and KMC 21.20 (Policy Governing Modification of Existing Leases), and Replacing Them With KMC 21.05 (Airport Administration and Operation), KMC 2 1. 10 (Leasing of Airport Reserve Lands) and KMC 21.15 (Lease and Sale of Airport Land Outside of the Airport Reserve). KENAI CITY COUNCIL MEETING SEPTEMBER 6, 2006 PAGE 4 MOTION TO SUBSTITUTE: Council Member Ross MOVED to Substitute Ordinance No. 2180-2006, marked as E- la and Council Member Moore SECONDED the motion. Administration comments included: • The substitute ordinance took into account comments made by council members and others. • The substitute includes wording for sale of land to be achieved by ordinance (instead of a resolution). • Requirements for a business plan was included in the substitute. • Explanation of changes in the substitute was included in the City Attorney's memorandum included in the packet. MOTION TO AMEND: Council Member Ross MOVED to remove b(2) under 21.10.040 and remove b(3)(iii), (iv), and (v). Council Member Moore the motion. Comments of council/administration included: • It should not be council's decision to identify a lease as appropriate or performable based on where or from whom the investment funds are acquired. • The lease is strong in performance standards. • It is not the business of the city to know who the customers would be. • It was not appropriate for the city to know an estimate of gross receipts of a proposed business. • Requiring a description of the proposed business or the requirement for the number of employees are legitimate information for a business plan. • The other information is proprietary and could not be protected by the city. • If there is concern a business would place a burden on existing roadways or transportation system, it could be an appropriate condition of the lease to have a traffic impact analysis be performed. • Disclosure of traffic volume would be addressed when acquiring a building permit and submitting a site plan. However, should not be disclosed in the application process due to competitiveness in the process and should not be disclosed to other possible vendors. Parking needs would be addressed in the building permit stage. VOTE ON AMENDMENT: Boyle Yes Porter Yes I Yes Swarner Yes Ross Yes Molloy Yes KENAI CITY COUNCIL MEETING SEPTEMBER 6, 2006 PAGE 5 MOTION PASSED UNANIMOUSLY. Council Member Boyle MOVED to amend the ordinance to include the land on Exhibit 2-a, which is indicated by the red line, with the exception of the red line which goes around the court house. Council Member Molloy SECONDED the motion. Discussion on the motion to amend included: • An explanation of the map included with the Substitute ordinance, i.e. three boundaries addressed as the substitute ordinance boundary, that adopted by the Airport Commission, and that suggested by the consultant. • The proposed Boyle boundary amendment, with the exception of the courthouse inclusion, was recommended by the consultant. • The proposed Boyle amendment with the exception of the courthouse, was recommended by the consultant in an effort to show how to make the airport more efficient and self-sustaining. • No objective data was presented with the two proposed boundary options explaining why the large portions of land from the consultant's proposal were removed, how the airport could achieve self-sufficiency without that acreage included, or how taking that acreage from the reserve would be beneficial to the city. • Needs of the airport are the most important issues to consider. • Concerns noted by Boyle were addressed in the city manager's memorandum. • The Kenai Airport is different than those cited by the consultants, i.e. the land use, how the land has been developed in the past, how lease land does impact small businesses that are not airport dependent; most of the Kenai airport traffic is general aviation; and, if the proposed Boyle plan would be adopted, it would unnecessarily lock up land in the future that does not have a projected use. • After review and evaluation of the consultant's report, neither the Airport Commission or KEDS agreed with the boundary included in the proposed Boyle motion. Concerns to keep as much land as possible in the Reserve. l+l�Sllx�]�r:�'iiah�h]i�ii�QYW Boyle Yes Porter No Moore No Swarner No Ross No Molloy Yes MOTION FAILED. MOTION TO AMEND: KENAI CITY COUNCIL MEETING SEPTEMBER 6, 2006 PAGE 6 Council Member Moore MOVED to substitute Appendix I (attached to Substitute Ordinance No. 2180-2006) with his handout map identified as Appendix I. Council Member Swarner SECONDED the motion. Moore distributed a copy of his suggested Appendix I map to council and the audience and explained, this Appendix I included the recommended boundary of Administration except the 17+ Acres contained on the west side of Marathon Road. Moore noted, he had discussed this suggested boundary with members of the Airport Commission, KEDS Action Team, members of the public and council and believed it a compromise to move the ordinance forward. MOTION TO AMEND (SECONDARY MOTION): Council Member Molloy MOVED to amend Council Member Moore's motion to add in the 26± Acres to the line (shown on Maps 2 and 2-a) that would include the Airport Commission recommendation. Council Member Boyle SECONDED the motion. Koch explained, the substitute ordinance identified Administration's recommendation for the Reserve boundary with a blue line; Council Member Moore's proposed amendment would add the 17 Acres into the boundary; and, Council Member Molloy's motion to amend the amendment would add the 26+ Acres as well. VOTE: Boyle Yes Porter No Moore No Swarner No Ross No Mollo Yes MOTION FAILED. Porter opened the floor to public comment. Jason Carroll -- Explained Moore's Appendix I was a compromise of the two recommended boundaries (Administration and Airport Commission). It was noted, a future council could determine to expand or decrease the boundary. Boyle Yes Porter Yes Moore Yes Swarner Yes Ross Yes Mollo Yes MOTION PASSED UNANIMOUSLY. KENAI CITY COUNCIL MEETING SEPTEMBER 6, 2006 PAGE 7 Discussion followed, including: • Land outside the Reserve cannot be sold for less than fair market value. • With remediation concerns [21.05.070(e)], the city would rely on the Department of Environmental Conservation (DEC) for a plan and more detailed requirements would be included in a lease document. • Staff disagreed with the consultants' recommendation to remove referrals to the Planning & Zoning Commission and insert the Airport Commission as the Planning & Zoning Commission has the zoning expertise the Airport Commission would not have. • With Title 29 giving platting authority to the Borough, administration wants to have the property replatted, use a metes and bounds lease in order to quickly determine a lease rate and have the ability to process a lease much faster. • Referring to 21.10.160(c) related to re-evaluation of rent and the city's estimation of Fair Market Value, it was asked if it was intended to receive a letter opinion or an appraisal and concern was expressed the thirty -day timeline would not be sufficient enough time if an appraisal was being required and would not allow debate over the lease value. MOTION TO AMEND: Council member Molloy MOVED to amend (c) to change thirty (30) days to ninety (90) days and Council Member Boyle SECONDED the motion. • W 11 .kt Ul Boyle Yes Porter Yes Moore Yes Swarner Yes Ross Yes Mollo Yes MOTION PASSED UNANIMOUSLY. Discussion continued, with comments including: • Referring to 21.05.080(i), concern was expressed the city should not be determining whether a rental vehicle is safe or not. It was explained, administration wanted to try to keep a certain standard of cars to be rented. • Referring to 21.05.080(b)(1), it was questioned whether the "vehicle" was correct. It was noted, it was the wording in the current code, however it seemed to be typographical error. MOTION TO AMEND: KENAI CITY COUNCIL MEETING SEPTEMBER 6, 2006 PAGE 8 Council Member Swarner MOVED to amend 21.05.080(b)(1), changing the word "vehicle" to "permit." Council Member Moore SECONDED the motion and requested UNANIMOUS CONSENT. VOTE ON AMENDMENT: There were no objections. SO ORDERED. fi (6110010'i Council Member Molloy MOVED to amend 21.05.080(i) to delete the second sentence, i.e. 'The Airport Manager shall order a permittee to remove from service any permittee vehicle the Manager determines to be unsafe or otherwise in violation of this section." Council Member Boyle SECONDED the motion. VOTE ON AMENDMENT: Bo le Yes Po I Moore Yes Swarner Yes Ross Yes Mollo Yes MOTION PASSED UNANIMOUSLY. VOTE ON MAIN MOTION AS AMENDED: Boyle No Porter Yes I Yes Swarner Yes Ross Yes Molloy Yes MOTION PASSED. BREAK TAKEN: 8:20 P.M. BACK TO ORDER: 8:33 P.M. E-2. Ordinance No. 2181-2006 -- Increasing Estimated Revenues and Appropriations by $20,000 in the General Fund Library Department for a State Grant. MOTION: Council Member Molloy MOVED for the adoption of Ordinance No. 2181-2006 and Council Member Boyle SECONDED the motion. There were no public or council comments. KENAI CITY COUNCIL MEETING SEPTEMBER 6, 2006 PAGE 9 Bo le Yes I Porter I Yes Moore I Yes Swarner Yes I Ross I Yes Molloy I Yes MOTION PASSED UNANIMOUSLY. E-3. Ordinance No. 2182-2006 -- Increasing Estimated Revenues and Appropriations by $40,000 in the General Fund Police Department for a State Grant. MOTION: Council member Molloy MOVED to adopt Ordinance No. 2182-2006 and Council Member Boyle SECONDED the motion. There were no public or council comments. VOTE: Bo le Yes Porter Yes I Moore Yes Swarner Yes Ross Yes Molloy Yes MOTION PASSED UNANIMOUSLY. E-4. Ordinance No. 2183-2006 -- Repealing the Existing KMC 7.30 (Airport Land and Terminal) and Replacing It with a New KMC 7.30 (Airport Land Sale Permanent Fund). MOTION: Council Member Swarner MOVED for the approval of Ordinance No. 2183-2006 and Council Member Molloy SECONDED the motion. There were no public comments. A brief discussion took place related to the investment process. T4110 Bo le Yes Porter YesI Moore Yes Swarner Yes Ross Yes I MolloyYes MOTION PASSED UNANIMOUSLY. KENAI CITY COUNCIL MEETING SEPTEMBER 6, 2006 PAGE 10 E-5. Ordinance No. 2184-2006 -- Amending Portions of KMC 1.56 (Kenai Municipal Library Department) and KMC 1.57 (Library Commission) Regarding Lending Policies, and Replacing the Term "Librarian" with "Library Director." MOTION: Council Member Molloy MOVED for the adoption of Ordinance No. 2184-2006 and Council Member Swarner SECONDED the motion. There were no public or council comments. VOTE: Boyle Yes Porter Yes Moore Yes Swarner Yes Ross Yes Molloy Yes MOTION PASSED UNANIMOUSLY. E-6. Ordinance No. 2185-2006 -- Establishing a Central Mixed Use Zone (CMU) at KMC 14.20.125 and Amending the Various Parts of the Kenai Zoning Code by Adding the Provisions to Encompass the New Zone, and Updating Portions of the Land Use Table at KMC 14.22.010. MOTION: Council Member Boyle MOVED for approval of Ordinance No. 2185-2006 and Council Member Moore SECONDED the motion. Barry Eldridge, 2679 Bowpicker Lane, Kenai -- As Chair of the Planning & Zoning Commission, Eldridge reported on the actions taken by the Commission, noting the development of the zone was in response to the Comprehensive Plan and in the zone, signs would be closer to the ground, which would be aesthetically more pleasing in the downtown area. Discussion followed with comments including: The ordinance was providing for a Mixed Use Zone, and Council's action would not identify where the zone might be used. • The map, included in the packet, was developed as a guide. If the ordinance is passed, the Commission could then identify an area and perhaps recommend to council the zoning ordinance be amended to include a Mixed Use Zone. KENAI CITY COUNCIL MEETING SEPTEMBER 6, 2006 PAGE 11 • Public hearings, along with notification to property owners, would be required prior to any actions in amending the zoning map. • If conflicts in the zone between business and residential, conflict would mostly likely be resolved in favor of the business because it is primarily a business zone for commercial uses and allowing residential use as conditional uses. • Political sign requirements are addressed in a different area of the code. • Administration recommended to the Commission two amendments to the sign code and information included in council's packet also requested the amendments. The Commission defeated the amendments on a 3-2 vote. • Administration concerns related to sign size were reviewed and it was noted, zoning should be managed by a workable code and the need for a variance should be an exception. MOTION: Council Member Ross MOVED to amend the ordinance in concurrence with City Manager Koch's recommendation noted in his memorandum of August 31, 2006 (included in the packet) as follows: • Attachment D, Page 2 of 8, 14.20.220(2), Allowed Signs Requiring a Permit; (A) One (1) freestanding or marquee per premises of not more than one hundred twenty (120) square feet. Where there is more than one (1) business on a premises a combined freestanding or marquee sign of not more than two hundred (200) square feet. • Attachment D, Page 2 of 8, 14.20.220(3), Prohibited Signs; (G) Signs that are higher than twenty (20) feet above the adjacent ground or pavement level. Council Member Moore SECONDED the motion. [Koch identified an error in his memorandum's referral to (3)(b) and stated it should be (3)(G).] Molloy stated his support of the amendment and suggested the final action on the ordinance be postponed to the September 20 meeting in order for business and public continents to be gathered. VOTE ON AMENDMENT: Boyle Yes Por I Moore Yes Swarner Yes Ross Yes IMollo Yes MOTION PASSED UNANIMOUSLY. Discussion followed and included comments as follows: KENAI CITY COUNCIL MEETING SEPTEMBER 6, 2006 PAGE 12 Differences that would occur, if the example mapped area were to be rezoned to the Mixed Use Zone were reviewed, i.e. residences built in a commercial area, apartments above commercial spaces, etc. The Mixed Use Zone ordinance could be modified at a time when public testimony would be taken related to a rezone of an area. Because the city has not had such a zone in the past, until the zone is tested it will not be known how it will work and what changes will need to be made. VOTE ON MOTION AS AMENDED: Bo le Yes Porter Yes I Moore I Yes Swarner Yes Ross Yes Mollo Yes MOTION PASSED UNANIMOUSLY. E-7. Ordinance No. 2186-2006 -- Amending Estimated Revenues by $3,580 in the Senior Citizen Title III Fund and Increasing Estimated Revenues and Appropriations by $1,000 in the Senior Citizen Fund. Council Member Swarner MOVED for adoption of Ordinance No. 2186-2006 and Council Member Ross SECONDED the motion. There were no public or council comments. VOTE: Boyle Yes Porter Yes Moore Yes Swarner Yes Ross Yes Mollo Yes MOTION PASSED UNANIMOUSLY. E-8. Ordinance No. 2187-2006 -- Increasing Estimated Revenues and Appropriations by $24,630 in the General Fund to Pay for Attorney's Fees Awarded in the Recreation Center Litigation. MOTION: Council Member Swarner MOVED for adoption of Ordinance No. 2187-2006 and Council Member Ross SECONDED the motion. Council Member Molloy noted a conflict of interest with the issue and stated he would abstain from voting. There were no objections of council. KENAI CITY COUNCIL MEETING SEPTEMBER 6, 2006 PAGE 13 VOTE: Boyle I Yes Porter Yes Moore Yes Swarner I Yes Ross Yes Molio Abstain MOTION PASSED UNANIMOUSLY. E-9. Resolution No. 2006-50 -- Transferring $8,000 in the Airport Fund to Purchase Equipment. MOTION: Council Member Swarner MOVED for the approval of Resolution No. 2006-50 and requested UNANIMOUS CONSENT. Council Member Moore SECONDED the motion. There were no public or council comments. VOTE: There were no objections. SO ORDERED. ITEM F: MINUTES F-1. Regular Meeting of August 16, 2006 -- Approved by consent agenda. ITEM G: UNFINISHED BUSINESS -- None. ITEM H: NEW BUSINESS H-1. Bills to be Ratified MOTION: Council Member Swarner MOVED to ratify the bills. Council Member Moore SECONDED the motion and requested UNANIMOUS CONSENT. ell There were no objections. SO ORDERED. H-2. Approval of Purchase Orders Exceeding $15,000 MOTION: KENAI CITY COUNCIL MEETING SEPTEMBER 6, 2006 PAGE 14 Council Member Swarner MOVED to approve the purchase orders over $15,000 and requested UNANIMOUS CONSENT. Council Member Moore SECONDED the motion. VOTE: There were no objections. SO ORDERED. H-3. Ordinance No. 2188-2006 -- Increasing Estimated Revenues and Appropriations by $500 in the General Fund to Purchase Library Books. Introduced by consent agenda. H-4. Ordinance No. 2189-2006 -- Increasing Estimated Revenues and Appropriations by $16,000.00 in the General Fund for a Homeland Security Grant to Fund a Rewrite/Revision of the City of Kenai Emergency Operations Plan. Introduced by consent agenda. H-5. Approval -- Election Boards/October 3, 2006 City of Kenai General Election MOTION: Council Member Boyle MOVED to approve the election board members and Council Member Molloy SECONDED the motion. There were no objections. SO ORDERED. H-6. Approval -- Amendments to Library Regulations MOTION: Council Member Swarner MOVED to approve the library regulation amendments and requested UNANIMOUS CONSENT. Council Member Molloy SECONDED the motion. There were no objections. SO ORDERED. H-7. Discussion -- Proposed Angler Drive Special Assessment District/Report of City Manager. Koch reviewed the report included in the packet, noting the cost of the project is estimated to be $728,000; no funding source has been identified at this time; administration will provide a list of all the proposed assessment district information with which council can decide which can be funded; and, administration will offer a recommendation of the fairest allocation of assessments for the Angler Drive project when it is brought back to council. KENAI CITY COUNCIL MEETING SEPTEMBER 6, 2006 PAGE 15 Council had no objections to proceeding with the process. ITEM I: COMMISSION/COMMITTEE REPORTS I-1. Council on Aging -- Council Member Boyle reported the next meeting would be held on September 7. I-2. Airport Commission -- Council Member Swarner reported the next meeting would be held September 14. I-3. Harbor Commission -- Public Works Manager Kornelis reported the next meeting would be held September 11. I-4. Library Commission -- Council Member Molloy reported the September meeting had been cancelled. The next meeting is scheduled for October 3, 2006. I-5. Parks & Recreation Commission -- Council Member Moore reported the next meeting would be held September 7. I-6. Planning & Zoning Commission -- Council Member Ross noted the minutes of the August 23 meeting were included in the packet. I-7. Miscellaneous Commissions and Committees I-7a. Beautification Committee -- Council Member Swarner reported the next meeting would be held September 12. I-7b. Alaska Municipal League Report -- Swarner noted the November Conference. ITEM J: REPORT OF THE MAYOR -- Mayor Porter noted the following: • She attended a Bar Association reception related to an expansion at the court house. She would like to approach businesses situated along Willow Street to participate in donating to purchase trees to be placed along the street. Concerns were voiced related to types of trees and placement/snow removal issues. Council stated no objection to the request. • Discussed the Pebble Mine Project and potential job availabilities with representatives of the Kenaitze Indian Tribe. ITEM K: ADMINISTRATION REPORTS K-1. City Manager -- City Manager Koch noted the following: KENAI CITY COUNCIL MEETING SEPTEMBER 6, 2006 PAGE 16 • Ile would be out of the office on Friday. • Requested council to review the draft management agreement for the Alaska Fire Training Center Facility; the State would like to take over the facility in December; and, the Fire Marshals are open to the possibility of AVTEC's use of the facility as well. • Referred to a memorandum included in the packet from Finance Director Semmens related to draft financial statement information. A brief discussion followed including the following: • Ross requested discussion of appropriating $150,000 from fund balance to put toward the PERS indebtedness at the next council meeting. • To acquire an audit report to provide details necessary to verify the accuracy of the city's PERS liability will cost approximately $5,000. Council requested the report be purchased. • Referred to the Corps of Engineers report included in the packet and explained the city did not have the opportunity to review the report in draft; he strongly disagrees with the economic analyses within the report; he will report in more detail during the next council meeting. • All but one Salty Dog Heights lot was sold. K-2. Attorney -- No report. K-3. City Clerk -- No report. ITEM L: DISCUSSION L-1. Citizens -- Larry Semmens -- Reported he attended the Assembly meeting, wore his City of Kenai t-shirt, and was very happy to be affiliated with the City. L-2. Council -- Moore -- • Complimented Semmens on his letter to PERS. • Asked the progress of park development on property donated by the Elson's. It was reported the work was ongoing. Swarner -- No report. Ross -- Thanked Administration, the City Manager, and Finane Director Semmens for the financial statement and PERS letter. Molloy -- Stated he agreed with the financial report information. Boyle -- No comments. KENAI CITY COUNCIL MEETING SEPTEMBER 6, 2006 PAGE 17 Porter -- Thanked Administration for the financial report information. EXECUTIVE SESSION -- None Scheduled ITEM M: ADJOURNMENT There being no further business before the Council, the meeting adjourned at approximately 9:51 p.m. Minutes submitted by: Carol L. Freas, City Clerk