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HomeMy WebLinkAbout1999-02-17 Council Minutes� AGENDA KENAI CITY COUNCIL -REGULAR MEETING FEBRUARY 17, 1999 ?: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. OATH OF OFFICE -- WILLIAM R. FRAZER 4. Agenda Approval 5. 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 minutes) 1. Bill Nelson -- Wm. J. Nelson & Associates/ Cunningham Park Improvements Update ITEM C: PUBLIC HEARINGS 1. Ordinance No. 1811-99 -- Deleting the Age Requirement in KMC 23.40.095 for Eligibility for the Supplemental Retirement Program. 2. Resolution No. 99-9 -- Awarding the Bid to Seekins Ford Peninsula for a 1999 Police Patrol Car for the Total Amount of $22, 19 1. ITEM D: COMMISSION / COMMITTEE REPORTS 1. Council on Aging 2. Airport Commission 3. Harbor Commission 4. Library Commission 5. Parks 8. Recreation Commission 6. Planning & Zoning Commission -1- 7. Miscellaneous Commissions and Committees a. Beautification Committee b. Historic District Board C. Kenai Visitors &Convention Bureau Board d. Alaska Municipal League Report ITEM E: MINUTES 1. *Regular Meeting of February 3, 1999. ITEM F: CORRESPONDENCE ITEM G: OLD BUSINESS ITEM H: NEW BUSINESS 1. Bills to be Paid, Bills to be Ratified 2. Purchase Orders Exceeding $2,500 3. *Ordinance No. 1812-99 -- Increasing Estimated Revenues and Appropriations by $750 in the Council on Aging Borough Special Revenue Fund. 4. *Ordinance No. 1813-99 -- Amending Title 4 of the Kenai Municipal Code Entitled, "Uniform Building Codes," to Adopt and Incorporate by Reference Therein the 1997 Editions of the Uniform Building Code, the Uniform Building Security Code, the Uniform Code for Abatement of Dangerous Buildings, the Uniform Sign Code, the Uniform Mechanical Code, the Uniform Plumbing Code, and the 1999 National Electrical Code. 5. Approval -- Library Director Appointee/Relocation Expenses. 6. Approval -- Petition to Vacate a Portion of the 40-Foot Wide Frontage Road Dedicated by Shaginoff Subdivision (Plat 78-188) ; AND, Vacate the Ten Foot Walkway Easement Within Lot 4 of Said Subdivision. Portion of Frontage Road Petitioned for Vacation is Bounded by Lots 3 and 4, Shaginoff Subdivision; Being Within Section 6, Township 5 North, Range 10 West, Seward Meridian, Alaska; and Within the City of Kenai; KPB File-99-011. 7. Approval -- FAA/AIP Snow Removal Equipment Grant WN ITEM I• 1. Mayor ADMINISTRATION REPORTS 2. City Manager 3. Attorney 4. City Clerk 5. Finance Director 6. Public Works 7. Airport Manager ITEM J: DISCUSSION 1. Citizens (live minutes) 2. Council EXECUTIVE SESSION - None Scheduled ITEM K: ADJOURNMENT -3- KENAI CITY COUNCIL - REGULAR MEETING FEBRUARY 17, 1999 7:00 P.M. KENAI CITY COUNCIL CHAMBERS MAYOR JOHN J. WILLIAMS, PRESIDING ITEM A: CALL TO ORDER Mayor Williams called the meeting to order at approximately 7:02 p.m. in the Council Chambers in the Kenai City Hall building. A-1. PLEDGE OF ALLEGIANCE Mayor Williams led those assembled in the Pledge of Allegiance. A-2. ROLL CALL Roll was taken by the City Clerk. Present were: Measles, Bannock, Williams, Bookey, Swarner and Moore. A-3. OATH OF OFFICE - WILLIAM R. FRAZER William R. Frazer was sworn in as council member by Mayor Williams and took his place with the council. A-4. AGENDA AND CONSENT AGENDA APPROVAL Mayor Williams reported he had no changes to the agenda or the consent agenda. MOTION: Councilman Measles MOVED to approve the agenda and consent agenda as presented. Councilman Moore SECONDED the motion. There were no objections. SO ORDERED, ITEM B: SCHEDULED PUBLIC COMMENTS B-1. Bill Nelson - Wm. J. Nelson 8v Associates/Cunningham Park Improvements Update. Nelson explained, after his presentation to council at the January 28, 1999 council meeting, he revised the design plans as requested by council, i.e. changing the boat ramp to a haul -out ramp as well as including a handicap -accessible gravel path to the beach. Nelson reported, after the meeting and making the requested changes, he and Public Works Manager Kornelis met with representatives of the regulatory people at the Kenai KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 17 1999 PAGE 2 of 14 River Center and discussed the park improvements. Upon those discussions, he prepared the revised plan a copy of which was included in the council packet. Nelson noted, the Borough directed that a gravel path along the bluff would not be acceptable, but a gravel path could be incorporated where the boat launch is situated. So, a handicap -accessible path was included in the design from the parking lot area to the beach. The path would have to be an elevated and open grating -type walkway. Nelson noted the parking area was redesigned, adding an additional parking area close to the road and will hold 18 cars. It is a gravel parking area with a turnaround and drop-off area, with two handicapped parking spaces close to the restrooms. For those who want to get to the beach quickly, there is a walkway and steps to by-pass the lengthy portion of the handicapped -accessible walkway, which will also keep people from walking over the banks. There are several short paths to the beach for this purpose. Nelson noted, in order to keep the $100,000 project in budget, he broke the costs down. The river bank restoration, to be funded by the Kenai River Sportfishing Association, was broken into two parts: the draw going upstream to the property line and the access ramp and stairs to the beach, handicapped -accessible pathway and shorter pathways will cost approximately $97,000. Building the elevated walkway and stairs will cost approximately $24,000; adding bank rehabilitation from the existing fence to the property line will cost approximately $13,000; and the parking lot improvements will cost approximately $20,000. Nelson proposed the project be bid either to include the basic bid and the parking lot improvements (if additional funds are found over the $100,000) which would total approximately $125,000, with an additive alternates for the additional river bank and additional walkway, or the basic bid with three additive alternates. Moore asked if Nelson saw any problems with rebuilding the bank without having the elevated walkway and people circumventing the easements to the river and cutting across. Nelson answered yes, because under the basic bid the elevated walkway and stairs wouldn't be built and people would want to stand along the bank. If the walkway is built, there are railings along the walkway and would tend to keep people out of the bank area. Moore stated, he believed council should be sure to protect that bank area. Nelson noted, the total cost of the project would be approximately $155)000. Bookey stated his concern was the project started as a $100,000 project and the cost is now $155,000 and climbing. He added, he was also concerned with going ahead without having something on the front end. The Sportfishing Association had stated they would not participate in funding the parking area. Kornelis stated originally that was correct, however there had been some changes. Originally, they wanted to fund $100,000 and were concerned with the area right along the river. After a meeting with a representative of the Association, there was an indication of additional funding. The KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 17, 1999 PAGE 3 of 14 Association has not yet reviewed the updated design. Part of the reason to divide the project into alternatives would be so the Association can decide if they want to fund any additional portions of the project. Bookey suggested if the Association would fund the bank stabilization, access to the river and do the grating across the front (for an additional $24,000), the city could possibly do gravel work in-house over the coming years. Kornelis noted, the parking lot was not part of the original design and could be left out if the Association was not willing to fund it. Bookey noted, he was concerned with the council going forward with a project that the city would have to add $50,000 to accomplish. He added, he was not willing to put $50,000 of General Find monies into the project. Nelson noted in discussions with the Association, comments were made regarding the addition of restrooms. He added, he didn't believe the general public was aware there are restrooms already available at the park. With the improvements to access, he believed more use of the restrooms would be seen. Nelson added, he thought the Association may be interested in seeing more of the additional improvements made to encourage use of the restrooms. Swarner asked how many spaces were included in the present parking lot. Nelson answered, it is not a parking area with designated spaces and was difficult to say, but thought eight to ten cars. Bookey stated, at times 30 to 35 cars are parked in the area. Swarner stated she would like to see all of the project completed except the parking lot. She added, she would really like to see the restoration of the bank, etc. completed. Williams asked if council would be interested in a midway compromise, i.e. if the Association paid for half of the additional $54,000, would council consider paying the other half. Bookey stated, he would recommend investigating whether the Association would participate in the additional $24,000 and the city try to do the remainder in- house as its split. Williams suggested Administration continue to work on the costs and a final understanding of what the costs will be and what the Association will contribute. Ross stated, according to what had been presented by Nelson, Administration would approach the Association on the basis of the basic bid and the alternates and ask them for their response prior to going to bid. He added, there is nothing left in-house to do on the design and was ready to present to the Association. Nelson noted, the plans were ready for presentation and added, it was a unique project as the stream bank re -vegetation would have to be done early in May (cutting the willow branches when they are still dormant in March or April) . Also in time to advertise the bid and awarding the bid, etc., it would need to go to bid in the next several weeks in order meet the schedule. Nelson added, if the Association was to provide additional funding but not all, it would still be good to go to bid with the complete project, i.e. basic bid and three additive alternates. That will tell the contractor there may not be enough funding to do all the work, and will only build what can be funded. KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 17, 1999 PAGE 4 of 14 Swarner asked when they would hear from the Association. Nelson answered, he would present the redesign in the next several days. He believed they could give their comment within the week. Kornelis stated, when bid, it may be found the whole project can be completed for $100,000. He added, the parking lot could be removed or included as an additive alternate. If there is not enough money, then don't award the parking area part of the project. Nelson added, the city has the right to choose which additive alternate is awarded, if any, in whatever priority it desires. Measles asked if there was any downside to put it to bid at the time they speak to the Association, with additive alternates included on the bid. Kornelis stated he didn't know of any. Measles added, in any case the city can accept all, part, or none of a bid. Bookey stated he wouldn't have a problem, except whether the Association would be compatible or comfortable with the redesign. Ross stated, the project should be prepared for bid, but should go to the Association and tell them the plan to go to basic bid with alternates and the city's contribution may be parking lot later, etc. and get the Association's response prior to going to bid. Williams suggested, Administration should contact the Association to review the plan and then prepare the material for bid immediately. Williams asked if a 30-day bid process would be required. Kornelis answered, since city funds will be used, a 30-day process would not be required. ITEM C: PUBLIC HEARINGS C-1. Ordinance No. 1811-99 - Deleting the Age Requirement in KMC 23.40.095 for Eligibility for the Supplemental Retirement Program. MOTION: Councilman Bookey MOVED for adoption of Ordinance No. 1811-99 and Councilwoman Swarner SECONDED the motion. There were no public or council comments. It was noted state law is followed in regard to age constraints for summer hire. VOTE: Measles: Yes Bannock: Yes Frazer: Yes Williams: Yes Bookey: Yes Swarner: Yes Moore: Yes KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 17, 1999 PAGE 5 of 14 MOTION PASSED UNANIMOUSLY. C-2, Resolution No. 99-9 - Awarding the Bid to Seekins Ford Peninsula for a 1999 Police Patron Car for the Total Amount of $22,19 1. MOTION: Councilman Moore MOVED for approval of Resolution No. 99-9 and Councilwoman Swarner SECONDED the motion. There were no public or council comments. VOTE: There were no objections. SO ORDERED. Williams requested Administration provide a clear view of squad cars in this year's budget, i.e. how cars are holding up and if this is a catch-up year. Lt. Kohler reported he, Chief Morris and City Manager Ross had discussed the matter. He added, the cars are holding up. The high mileage cars were assigned to officers who are not doing a lot of driving. If necessary, the Department will be able to get along with only one new car. ITEM D: COMMISSION / COMMITTEE REPORTS D-1. Council on Aging - Councilwoman Swarner reported the minutes of the February 4 meeting were included in the packet. She noted, the Council elected Peggy Arness as Chair and Joanna Hollier as Vice Chair. Swarner also reported there are residents at Vintage Pointe who may contact council members to discuss their desire to have covered parking at the facility. Swarner referred to the application of Earl Jones that was included in the packet. She recommended Jones be appointed to the Council on Aging filling a seat left vacant by a recent resignation. Swarner reported, Jones resides at Vintage Pointe and participates in activities at the Senior Center. There were no objections to the appointment. D-2. Airport Commission - Airport Manager Atha reported the Commission had only one item on their agenda requiring action; a request for an assignment of lease for the restaurant. He noted, the Commission recommended approval of the assignment. Atha noted, all the insurance documents, etc. had not been available, but would be in the next few days. The assignment will be brought forward to council for consideration at the next council meeting. KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 17, 1999 PAGE 6 of 14 D-3. Harbor Commission - Councilman Bookey reported the Commission met on February 8 and discussed the improvement plans for Cunningham Park. The Commission gave their encouragement to go forward with the improvements. Bookey also reported the Commission discussed the bluff project information received from Nottingham, Petratrovich and Drage and requested cost estimates to finish the project within the $5,000 parameters of the preliminary project. D-4. Library Commission - Councilman Moore reported minutes of the Commission's last meeting were included in the packet. Moore reminded those in attendance of the 50th Anniversary party for the Library, scheduled for March 7. He noted, the Commission would meet again on March 2. D-5. Parks & Recreation Commission - Councilman Moore reported he attended the Commission meeting for Councilman Bannock. At the meeting, representatives of Kenai Little League discussed their concerns in regard to the ball fields. He noted, the national Little League office are requiring all fields to be upgraded to tournament level for safety which would add costs to care for the fields. They also discussed summer street banners with Helen Brown who reported she would be using a heavier fabric this year to give the banners added strength. Moore also reported Dave Feeken spoke with the Commission regarding the potential lighting of cross-country ski trails. Parks & Recreation Director Frates gave reports regarding Cunningham Park, budget and the multi -use ice facility. D-6. Planning & Zoning Commission - The minutes of the Commission's February 10 meeting were included in the packet. Councilman Frazer reported he attended the Commission meeting unofficially. He noted it was the second shortest meeting in their history, adjourning in 20 minutes. D-7. Miscellaneous Commissions and Committees D-7a. Beautification Committee - Councilwoman Swarner reported the minutes of the last meeting were included in the packet. She noted, the Committee discussed flowers for the summer beds and banners. They also discussed Christmas decorations and whether to salvage the present decorations or consider purchasing of new ones. During the discussion, it was stated some new transformers would be needed for the present decorations. Frates reported the lights in the greenhouse had been turned on in order to start warming the building for use in the next several weeks. D-7b. Historic District Board -- Moore reported the Board would meet again on May 17. D-7c. Kenai Visitors & Convention Bureau Board - Bookey reported a meeting was held on February 7 at which the Board passed a resolution supporting \ KENAI CITY COUNCIL MEETING MINUTES � FEBRUARY 17, 1999 PAGE 7 of 14 public access of the West Side of Cook Inlet. Moore asked if the KVCC would continue forwarding their board meeting minutes to council. Bookey stated they would continue. D-7d. Alaska Municipal League Report - Williams reported he attended the Governor's conference regarding the state budget. The Governor wanted to know how all the cuts, etc. would affect the municipalities now and the future. No one offered a fix for the problems, but did discuss the need of new industry. The Governor asked all the mayors to return to their municipalities and put out as much information out to the population about the need to change the state's system dramatically and quickly. Williams noted, Mayor Navarre would be coordinating a Peninsula -wide economic forum in order to inform the Peninsula regarding the possibility of using the corpus of the Permanent Fund to aid in supporting the state's finances, etc. Saturday, March 13 was set for the forum and Williams suggested the city may be able to forego its own forum and help in funding the Peninsula -wide forum, contingent upon the other Peninsula cities also helping in the costs. Williams asked if council would object to participating financially in the March 13 forum. He noted, cost estimates would be brought forward in the near future. Williams added, no location for the forum has been set. ITEM E: MINUTES E-1. Regular Meeting of February 3, 1999. Minutes approved by consent agenda. ITEM F: CORRESPONDENCE - None. ITEM G: OLD BUSINESS - None. ITEM H: NEW BUSINESS H-1. Bills to be Paid, Bills to be Ratified MOTION: Councilman Measles MOVED to pay the bills and requested UNANIMOUS CONSENT, Councilman Moore SECONDED the motion. There were no objections. SO ORDERED. KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 17, 1999 PAGE 8 of 14 H-2, Purchase Orders Exceeding $2,500 - None. H-3. Ordinance No. 1812-99 - Increasing Estimated Revenues and Appropriations by $750 in the Council on Aging Borough Special Revenue Fund. Introduced by consent agenda. H-4. Ordinance No. 1813-99 - Amending Title 4 of the Kenai Municipal Code Entitled, "Uniform Building Codes," to Adopt and Incorporate by Reference Therein the 1997 Editions of the Uniform Building Code, the Uniform Building Security Code, the Uniform Code for Abatement of Dangerous Buildings, the Uniform Sign Code, the Uniform Mechanical Code, the Uniform Plumbing Code, and the 1999 National Electrical Code. Introduced by consent agenda. H-5. Approval -Library Director Appointee/Relocation Expenses. City Manager Ross referred to the memorandum included in the packet. He explained, Eva Jankowska had accepted the appointment as Library Director and he was requesting council's authorization to proceed with a transportation agreement with Jankowska, allowing reimbursement of relocation expenses not in excess of $10,000 as allowed by Kenai Municipal Code. Moore asked if it would be a requirement for Jankowska to live within the Kenai city limits. Ross explained, under the Charter, there were only three employees of the city who could be required to live inside the city, i.e. City Manager, City Clerk, and City Attorney. MOTION: Councilwoman Swarner MOVED to allow the City Manager to pay the new Library Director, Eva Jankowska for reimbursement for actual expenses of relocation, not to exceed $10,000. Councilman Moore SECONDED the motion. There were no objections. SO ORDERED. H-6. Approval - Petition to Vacate a Portion of the 40-Fot Wide Frontage Road Dedicated by Shaginoff Subdivision (Plat 78-188) ; AND, Vacate the Ten Foot Walkway Easement Within Lot 4 of Said Subdivision. Portion of Frontage Road Petitioned for Vacation is Bounded by Lots 3 and 4, Shaginoff Subdivision; Being Within Section 6, Township 5 North, Range 10 West, Seward Meridian, Alaska; and Within the City of Kenai; KPB File-99-011. KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 17, 1999 PAGE 9 of 14 Councilman Bannock reported the Planning & Zoning Commission reviewed the Petition as two separate issues: Frontage road and the walkway. He noted, the Borough Planning Commission did the same thing. He suggested Council follow the Commissions' lead and approach the issues separately; the frontage road vacation and walkway vacation. Discussion followed regarding what actions the council could take. Attorney Graves noted, Title 29 allows the city to veto a Borough vacation of an easement. It does not allow the city to grant a vacation if the Borough denies the easement. He noted, the Borough denied one vacation and granted one. The city can only appeal the vacation that was granted. It cannot grant the one denied. Bannock stated his understanding was the city had the ability to veto their decision if it was made in the affirmative. Graves stated that was correct. Bannock noted the cover letter stated the city had 30 days in which to veto the decision of the Planning Commission. It did not say the city could only veto an affirmative decision. Graves referred to Title 29, Section 140 and noted it states the council had 30 days in which to veto a vacation of a street. However, there is no language stating the city could veto the refusal to vacate a street. Graves added, that had been his understanding of the statute and historically, that was how it has been handled. City Engineer La Shot added, he understood it that way as well; if council chose not to veto the action (of the Borough Planning Commission), the right-of-way would disappear and the walkway easement would remain. Bannock asked if the city had any say about the walkway at this time. La Shot answered, he didn't believe that decision could be changed. The city could only veto their actions. Bannock questioned that answer. Graves clarified, the city has the right to veto decisions made to vacate rights - of -way easements, but not the right to veto decisions to refuse to vacate. Also, the Borough has the platting authority under Title 29, not the city. Measles noted, the Borough Planning Commission upheld the Planning 8. Zoning Commission's finding. Graves noted, the Borough's Commission did the same thing the City's Commission recommended. Measles clarified, if the 40-foot easement was vacated, the ten foot right-of-way would be extended through the vacated easement and both Commissions agreed. Answer was yes. Bookey asked if council took no action, the decision of the Planning &.Zoning Commission and the Borough Planning Commission would stand. Graves answered yes. Bookey added, the 40 foot easement would be vacated and if the property owner wants to try to vacate the ten foot walkway, that could be done. Graves answered, it was his understanding he could reapply in the future. Council took no action. KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 17, 1999 PAGE 10 of 14 H-7. Approval -FAA/AIP Snow Removal Equipment Grant. Ross explained, the grant would purchase equipment that has been on the AIP list. The city's contribution that would normally have been made to the $344, 000 project would have been $8,927, but $59,300 received from the past auction sales of obsolete equipment that had been funded by the Airport was required to be added. Ross added, the grant had to be submitted and this was council's opportunity to pull it back or let it continue as it does obligate the city's Airport Fund to $68,277. Measles asked if the $59,300 from the sale of obsolete equipment did go back to the Airport Fund. Ross answered, yes. MOTION: Councilman Measles MOVED to go forward and Councilwoman Swarner SECONDED the motion and requested UNANIMOUS CONSENT. There were no objections. SO ORDERED, ITEM I: I-1. Mayor ADMINISTRATION REPORTS a. AML Conference Reception Williams reported he requested the Clerk include in the preliminary Legislative budget, funds for a major reception during the AML Conference which will be co -hosted by Soldotna and Kenai. b. Milepost Advertisement - Williams requested council consider rearranging funds in the upcoming budget to advertise the City in the Milepost using a full -page color advertisement. It was noted, it was too late to place such an advertisement this year. Williams noted, he wanted to discuss the matter at budget time. C. Leif Hansen Memorial Park - Williams suggested council consider placing five or six lights at the entrances and ends of the Park. I-2. City Manager a. Dairy Queen - Ross reported, an offer to purchase the property had been made at the appraised price of $245,000. However the prospective buyer has requested a 120-day due -diligence period to do their research of title, access issues, environmental issues and their own construction bids and costs. He noted, the city has been that to comply with their request is not an earnest money offer at all if they can walk away from the sale for any reason during the 120-day period. The buyer's position is this is a standard practice in the present commercial real estate market. KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 17, 1999 PAGE 11 of 14 Ross noted, he has consulted with some realtors who told him it was not an unusual request. However, he was not aware it has been the city's practice before. Ross added, he believed this to be a serious offer which has gone from the broker level through the legal department and he is now working with the buyer's national director real estate and construction . Ross stated, if this is a serious offer, the opportunity to develop the site this year is possibly worth the gamble. If the earnest money agreement is tied to their carrying out the due -diligence items they say are needed (title, environmental, putting together their bid package and going to bid this year) and if they then decide they would not go through with the project, they could walk away. If they don't do those things, the city would ask the earnest money be forfeited. Ross stated, he offered, if there is a failure because of environmental or misrepresentation of the property, they could walk away and keep their earnest money. A loggerhead has been reached. If the information he received holds true and it is a standard practice, possibly tying an earnest money agreement could be investigated. Ross requested council's direction on the issue. Ross noted, other offers had been made, but none close to the appraised value to go to FAA to negotiate. Measles stated he had no problem as long as the agreement would be defined to force the buyer to do their due -diligence within the timeframe, i.e. performing under their due -diligence agreement and do what they say they are going to do, or they forfeit. He noted, he didn't want to see the city get into an agreement with them and they tie the property up for 120 days and not do anything. Graves stated, that was what he and Ross had wanted to use as a bargaining point. He noted, the city would also require documentation the due -diligence has been done. Bannock stated he was excited to see the letter, however was not willing to use his council hat to go into a gray area. He added, there are things in regard to the sale of the Dairy Queen that are negotiable and some that are non-negotiable. Based on the information provided to him, the buyer is asking to negotiate something on which the council should not negotiate. Bannock added, although he wants the property to be sold, the rules are set, are there for a specific reason, and case history is probably available to show the city has enforced the rules in the past. He believed there was no reason why the city should get delve into a gray area to benefit the needs, wants and desires to benefit a party interested in doing business with the city. Williams questioned Bannock's statement and Bannock clarified, the city should not negotiate the rules. Graves stated, most of the rules within the Code, pertain specifically to property that is put out to bid. He explained, the property had been put out to bid and no bids were offered on it. The primary rule is the city is to get fair market value. Bannock asked if there are rules pertaining to the 120-day issue. Ross noted, the only rule of which he was aware was that since the property had once been offered for public sale, the city manager may enter into negotiations and only if it is less than fair market value is the city manager required to bring the matter to council. KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 17 1999 PAGE 12 of 14 Earnest money rules is mainly between parties and there was nothing in the Code giving him guidance on that issue. Ross noted, the reason he brought the matter to council was because it was an area of which he had little experience and wanted council's experience on the issue. Ross explained, there was nothing proposed by the buyer or discussed by council that was in any way a change of the way rules are interpreted. Bannock referred to the buyer's letter in which it stated, "..-the city wants to limit the examination period to 60 days and the city wants the earnest money to be non- refundable..." He asked, if those are not rules. Ross explained, they were criteria he put forth during his negotiations with the buyer. Bannock asked if he was incorrect in stating those should not be negotiable instruments. Ross answered yes. Williams stated, a negotiating position is moved to after finding no one else is interested in purchasing the property during the bid process. After the bid time is over, the property then becomes a negotiable item to whoever wants to make an offer. He added, the question is whether the offer is accepted or not. Williams noted, the city is looking for the best value for the city. Ross noted, this is Airport Fund land. If a negotiated agreement is made for less than appraised value and the FAA did not agree, the city would have to subsidize the agreement from the General Fund. He added, that's why administration has been holding the price as best it could and now there is an offer for the appraised value. Bookey asked if a clear indication had been received from the buyer of whether an agreement with the due -diligence will be accepted (as Ross had explained) . Ross answered, he had not discussed that with them. He was taking their letter and noting there is a problem with what they offered, but the city will accept the earnest money and if the due -diligence items are performed, and then they make a decision not to go forward, the earnest money will be returned. If the due -diligence items are not performed, the earnest money will be forfeited. Ross added, he did not feel he could offer that negotiation if council did not support it. Bookey stated, he would agree with Measles in that enough "teeth" are put into the agreement to make the buyer abide by the agreement, he would like to go forward with the negotiations. Swarner stated she agreed with Measles and Bookey. Measles stated, he believed they are serious enough to accept those terms. Graves stated, the buyer has indicated they are committed to performing the due -diligence and that they spent $50,000 in Anchorage on another property. He added, he didn't think there would be a problem. Williams noted, it was the consensus of the council to proceed with the negotiations along the lines discussed, arranging for a suitable and acceptable earnest money agreement. KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 17, 1999 PAGE 13 of 14 I-3. City Attorney - No report. I-4. City Clerk - Clerk Freas referred to a letter included in the packet from the Kenai Alternative High School requesting a donation from council to help in their graduation expenses. Freas noted, council had included $300 in their budget for this donation. She asked if council wanted to go forward with the donation. MOTION: Councilman Measles MOVED to approve the donation and Councilman Moore SECONDED the motion. There were no objections. SO ORDERED. I-5. Finance Director - No report. I-6. Public Works a. Amendment # 11 /DOT FY 98-2000 STIP Projects - Kornelis reported he attended a meeting at the Borough building to discuss the draft amendment # 11 to the FY 98-2000 STIP projects. He offered to make copies of the amendment if council requested. Kornelis noted, the amendment changed the start of construction for the Forest Drive/Redoubt Avenue project from 2000 to 1999. DOT plans on getting authorization to issue funds before September 30, 1999. Kornelis also reported the Kalifornsky Beach Road Rehabilitation project was scheduled for 1999 construction. I-7. Airport Manager - No report. ITEM J: DISCUSSION J-1. Citizens - None. J-2, Council Bookey - Welcomed Bill Frazer to council. Swarner - Welcomed Frazer to council. Swarner also reported she attended a portion of the Board of Fisheries meeting and picked up some information. She noted, she felt someone from council or administration should attend the meetings to listen and show a presence for the City of Kenai. Swarner also reported Jeff Lowenfels would be making a presentation on gardening at the high school on Thursday from 7 to 8 p.m. KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 17, 1999 PAGE 14 of 14 Moore - Reported he was scheduled to give testimony at the Board of Fisheries meeting. He noted he would be speaking his opinion, but would be identifying himself as a council member as well. He added, he would be attending the meetings as much as possible. Measles - No report. Bannock - No report. Frazer - Stated he was happy to serve as council member and thanked the City Clerk, City Manager, and City Attorney for their help. Ross reported he would be attending a meeting with the FAA in Anchorage tomorrow and the Board of Fisheries meeting on Friday. Williams noted, the Board of Fisheries meetings are very frustrating. Moore reported, the Board would go through a committee process at the end of the meeting. He noted, that was where the city was misrepresented during the last Board meeting and suggested those speaking during the committee process receives a higher priority. Swarner suggested that should be where a staff member or council member should be in attendance. Ross stated he would be giving testimony in support of the city's resolutions and its Proposal 223. He noted, he would be at the committee meetings, especially when Proposal 223 is discussed. EXECUTIVE SESSION - None held. ITEM K: ADJOURNMENT The meeting adjourned at approximately 8:40 p.m. Minutes transcribed and prepared by: Carol L. Freas, City Clerk APPROVED BY COl9NCl1. DATE OY CLERK