HomeMy WebLinkAbout1998-03-18 Council Minutes•
C7
AGENDA
KENAI CITY COUNCIL - REQiiLAit MEWING
MARCH 18. 1996
7:00 P.M.
KENAI CITY COUNCIL CHAMBERS
http://www.Ronal.not/city
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.
B. SCHEDULED PUBLIC COMMENT (10 Minutes)
C. PUBLIC HEARINGS
1. Resolution No. 98.11- Transferring $28,185 From the Airport Land
System Special Revenue Fund to the (General Fund.
2. Resolution No. 98-12 - Transferring $14,450 From General Fund Non -
Departmental Contingency to Pay Rent on the New Animal Control
Shelter.
3. Resolution No. 98-13 Awarding a Five -Year Contract for the Kenai
Municipal Airport Terminal Gift Shop Concession to Jep Frederick -.
Hansen d/b/a/ Alaska Wild Fin.
D. COMM-1011 NICOMMITTEE 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. Historic District Board
C. Challenger Board
d. Kenai Visitors & Convention Bureau Board
e. Alaska Municipal League Report
1. *Regular Meeting of March 4, 1998.
c • � I Ise,;
1. Bills to be Paid, Bills to be Ratified
2. Purchase Orders Exceeding $2,500
3. *Ordinance No. 1776-98 - Replacing KMC 12.20.010, (Expectorating on
Streets and Sidewalks) With New Wording Described as "Deposit of
Refuse."
4. *Ordinance No. 1777-98 - Changing the Employee Classification,
Supervisory and Professional, List at KMC 23.50.010(a) to Include a
Public Works Manager and An Assistant Airport Manager, and Changing
the Airport Manager's Range.
5. *Ordinance No. 1778-98 Including the Newly Created Position of
Public Works Manager- as One of the Positions Exempted From the Fair
Labor Standards Management Act.
6.
7.
Approval - Change Order No. 3/Alaska Regional Fire Training
Center/Alvan General, Inc. - $1479193.45.
Approval - Special Use Permit/ Portion• of Tract A, General Aviation
Apron #2 - Kenai Air Alaska, Inc.
Discussion - Schedule Budget Work Sessions
Discussion - Ordinance for Moratorium/Reapplying for Conditional Use
Permit After Denial.
-2-
•
•
10. Discussion - Lease Application/James H. Doyle, Tract B, Gusty
Subdivision No. 6.
11. Discussion - Lease of Counter Space/Kenai Airport Terminal - Artha L.
(Bonnie L. Koerber, Garrison Corporation d/b/a Budget -Rent-A-Car.
EXECUTIVE SESSION - None Scheduled.
1.
Mayor
2.
City Manager
3.
Attorney
4.
City Clerk
5.
Finance Director
6.
Public Works Director
7.
Airport Manager
J. DISCUSSION
1. Citizens (five minutes)
2. Council '
K. ADJOURNMENT
-3-
KENAI CITY COUNCIL - REt1ULARETINtI
MARCH 1891998
7:00 P.M.
KENAI CITY COUNCIL CHAMBERS
MAYOR JOHN J* WiLLIA,M$o PRBBIDINt,1
lim Al
Mayor Williams called the meeting to order at approximately 7:00 p.m. is the Council
Chambers in the Kenai City Hall Building.
Mayor Williams led those assembled in the Pledge of Allegiance.
A-2.
ROLL 9"
Roll was taken by the City Clerk. Present were: Bookey, Moore, Bannock, Smalley
and Williams.
Absent were Swarner and Measles.
A-5. A_00�APPROVAL
. Mayor Williams requested the following changes to the agenda:
ADD AS: B-1, Gone Kempf - Water/ Sewer Charge- Concerns (DOTE TO COUNCIL
- THE CITY 18 IN LMOATIOII WITH MR. KZMPF IN REGARD TO
THIS MATTER -REQUEST FOR JUDGrMENT RAS BEEN
FILED.)
BU813TITUTE: B-19 Payments Over $2,500 - Substitute Includes overage of
purchase order toy Copy -Cats or City/Chamber brochure's.
ADD TO: I.10 DOT letter - Regarding Bridge Access Road speed limit changes.
ADD TO: I-1, Frontier Comm- n Services letter requesting City's letter of
support their Child's Play program (..."an educational and supportive
service for parent(s) and foster parent(s) who have children birth to five.
with challenging behaviors that are at risk for abuse and neglect.")
ADD TO: I. I, Division of Fire Preveatlon letter regarding Alaska Fire Chiefs
Association Spring Conference.
ADD TO: I.19 3/ 12/98 Rep. A11en Remplen letter regarding use of Permanent
Fund undistributed earnings for community needs.
0
• KENAI CITY
MARCH 18,
PAGE 2
MOTION:
COUNCIL MEETING MINUTES
1998
Councilman Smalley MOVED for approval of the agenda as amended and requested
UNANIMOUS CONSENT. Councilman Bookey SECONDED the motion. There were
no objections. SO ORDERED.
A-6.
Mayor Williams noted he had no changes to the consent agenda.
MOTION:
Councilman Smalley MOVED for approval of the consent agenda as presented and
Councilman Bookey SECONDED the motion. There were no objections. SO
ORDERED.
ITEM SCKRDULKD P'iTBI1 IC,�O��
B-1. Gene Kempf - Water/Sewer Charge Concerns
Mayor Williams noted this matter is in litigation matter when it was added to the
agenda at the beginning of the meeting.
Mr. Kempf explained he built a speculation house in 1996 and initiated water/sewer
service to the house. He told the city no one was living in the house and the house
was for sale. He was told that whether or not someone was living- Mri the house, - there:
would still be water/sewer- charges assessed._ In December the water service was
turned off due to non-payment of the bill. He has since sold the house.
Kempf added, he had discussed the matter previously with the City Attorney after the
water service had been turned off and stated he would pay the amount owed up until.
the water was turned off (December). He noted, he would have come to council
before, had he known he could. Kempf stated he did not think he should have to pay
for water after it had been turned off and when no one was living in the house. He
would like to solve the matter without going to court, but was told there could be no
negotiation. Kempf also stated, he was informed council would not take any action
because the matter was in litigation.
Councilman Bookey asked if the matter was in litigation. Attorney Graves answered;
yes. Councilman Smalley asked Kempf if the service was still available, even though
he was no longer hooked up to water. Answer was yes.
. KENAi CITY COUNCIL MEETING MINUTES
MARCH 18, 1998
PAGE 3
E
Williams noted Kempf stated he had sold the house and asked if the charges accrued
previous to last summer. Kempf answered yes. Kempf added, he thought the city
should do something about the ordinance as he did not believe it fair to charge a
service if it is not being provided.
Councilman Moore asked if the ordinance was being enforced. Attorney Graves
answered, yes and added, the ordinance clearly states water service will be charged
whether or not the structure is occupied. When asked, Graves reported the amount
owed was approximately $750 which included the water service charges
(approximately $400) plus attorney and process fees. Graves added, if the charges are
waived for this account, it would affect 1600 other water accounts.
Kempf added, he thought something should be done about the ordinance as he was
being charged for a service which had been discontinued. Williams stated council
appreciated Kempf coming forward. He added, it is a concern that bas come up
several times over the years, but has not been changed. No further discussion.
C-1. Resolution No. 98-11 - Transferring $28,185 From the Airport Land
System Special Revenue Fund to the General Fund.
MOTION:
Councilman Smalley MOVED for the adoption of Resolution No. 98-11 and
Councilman Moore SECONDED the motion.
There were no public or council comments.
VOTE:
There were no objections. 80 ORDERED.
C-2. Resolution No. 98-12 - Transferring $14,450 From General Fund Non -
Departmental Contingency to Pay Rent on the New Animal Control
Shelter.
MOTION:
Councilman Bookey MOVED for adoption of Resolution No. 98-12 and Councilman
Smalley SECONDED the motion.
• KENAi CITY COUNCIL MEETING A4INUTES
MARCH 18, 1998
PAGE 4
There were no public cocnents. Mayor Williams explained for those in the audience,
council invested in an animal shelter using airport funds and is leasing the land on
which it site from the Airport Fund. This alleviated using General Fund monies. 'The
City will now pay rent to the Airport Fund at six percent of the property value.
Moore noted, the lease rate .is set at six percent of fair market value: He asked, if the
value rises, will the lease rate also. City Manager Ross answered, historically, the city
has set the lease rate on its own properties and has not adjusted that lease rate. The
lease rate for this property will continue at six percent. He added, the City, in dealing
with its airport funds and lands has not done a reappraisal, but has used property
costs as a base and the Airport Fund is continuing to receive the return as if the
monies were still in its account. He also noted, FAA has not questioned this practice
in 30 years.
VOTE:
Councilman Smalley requested UNANIMOUS CONSENT. There were no objections.
SO ORDERED. .
C-3. Resolution No. 98-13 - Awarding a Five -Year Contract for the Kenai
Municipal Airport Terminal Gift. Shop Concession to Jep Frederick
Hansen d/b/a/ Alaska Wild Fin.
MOTION:
Councilman Smalley MOVED for approval of Resolution No. 98-13 (noting the
resolution included in- the packet was misnumbered as- 97" 13): Councilman- Bannock
SECONDED the -motion as -corrected.
Job Hansen - Owner of Alaska Wild Fin. Hansen reported he and his wife have been
in business for approximately four years manufacturing and selling Native arts and
crafts. They are making approximately ISO types of items at their location in .
Soldotna at this time. He added, 90% of the gifts they sell are made in Alaska by
Alaskans and Alaska Natives. Many of the items they sell are one -of -a -kind or limited
editions.
Hansen continued, they plan to have the. gift shop at the airport open seven days a
week and plan to have their store hours I at 8:00 a.m. to 10 p.m. during the summer.
They plan their winter hours to be 9:00 a.m. to 7:00 p.m. They also plan to move in a
portable paragraph engraving machine for engraving gold, silver and bone in the
winter to take up some of the business slack time.
• KENAI CITY COUNCIL MEETING MINUTES
MARCH 18, 1998
PAGE 5
Attorney Graves noted Article 4, Paragraph (d) discusses the suggested hours of
operation for the gift shop which is as specific as possible without micro -managing
the operation.
VOTB:
There were no objections. 80 O.
D-1. Council on Aging
Williams reported there was no quorum and the meeting was rescheduled for Monday,
March 30, 1998.
D-2. Airport Conraission
It was noted the meeting was held on March 12 and the minutes were not available
for this packet. Items discussed would be considered later in this council meeting
D-3. ' Serbor Commission
Councilman Bookey reported the minutes of the March 9 meeting were included in
the packet. Bookey noted, the Commission discussed the boat yard lease renewal to
Snug Harbor, rates and whether an RFP is required. He added, Attorney Graves
advised Public Works Director Kornelis an RFP was not required, however he believes
the Commission will ask that it goes to an_ RFP. At this time -the- Commission doesn't
know if they want to do a year lease or a multi -year lease.
The Commission also briefly discussed the Corps of Engineers Reconnaissance Report
of Navigation Improvements and noted that because the city would have to fund 50%
of their project, the Commission asked that it be shelved for the next five years.
Bookey added, the Commission did not want to give up on the project, but to continue
to look for other funding programs. The Corps will allow shelving the report for five
years without losing everything done to this point.
Bookey also reported the Commission reviewed and worked on an' update to their
goals and objectives. The draft list was attached and included in the packet. The
Commission will further discuss and finalize the list during their next meeting.
Bookey explained the Commission is requesting .to change their next meeting date
from April 6 to 13 to accommodate some of the members' schedules.
KEIdAI CITY COUNCIL MEETING MINUTES
MARCH 18, 1998
PAGE 6
MOTION:
Councilman Bookey MOVED to change the date of the next Harbor Commission
meeting from April 6 to April 13. Councilman Smalley SECONDED the motion. There
were no objections. SO O" BRED.
Councilman Moore noted the draft goals and objectives listed development of a
parking fee for dipnet fishing. He asked if the Commission reacted to the Board of
Fisheries motion to table discussion regarding the city's request until February 1999.
Bookey answered, there had been no discussion to this point.
Williams noted the Commission's discussion on page 6 regarding their long-term goal
to "...provide a combination of boardwalk and pathway from the dock pad to the
existing boardwalk at the bird watch area ... it was noted that funding can come from
various sources to include Exxon Valdez, Ducks Unlimited and the State." Williams
stated, Ducks Unlimited has found it to be very lucrative to hold Ducks Unlimited
banquets in Kenai for the purpose of fund-raising. However, their past directors have
stated to him personally that they have no intentions of investing any monies in this
area. He added, he told them he had no intention of supporting Ducks Unlimited
anymore and has not for the past five years. Williams added, he was not in favor of
supporting an organization that comes to the community to solicit funding to be used
somewhere else which does not benefit the community from where they raised the
money. Williams noted, this was a personal statement and not one on behalf of the
council.
D-4. Library Commission
Councilman Moore noted the next meeting will be held on April 7. The minutes of the
last meeting were included in the packet which he reported on during the March 4
meeting.
Librarian DeForest reported the Writers' Night was very successful and there was
interest to do it again in the future.
D-5. Parks & Recreation Commission
a. Youth Football League - Councilman Smalley reported the Commission
met on March 5. During the meeting, the Commission discussed a request from Steve
Foster representing Youth League Football, regarding use of the FAA football fields for
their program in August and September. It was noted some improvements would
have to be made to the field. They are to meet with Administration to discuss their
request and potential liability waivers.
• KENAI CITY COUNCIL MEETING MINUTES
MARCH 18, 1998
PAGE 7
b, Ede Steen Fuck - Also discussed was the Eric Hansen Park and a
copy of the proposed plan was included in the packet. Parks & Recreation Director
Frates noted the design was developed by the Commission with the help of the
Kenaitze Indian Tribe and the Hansen family. Frates added, the Commission was
submitting the plan to council for approval. He noted there was no landscaping built
into the plan, however the Beautification Committee will probably discuss the
landscaping at a future meeting.
Councilman Moore questioned whether the six-inch crushed aggregate with geo-
textile on grade will be wheelchair accessible. Kornelis explained, the geo-textile is
the material that is used to keep silts from coming up through the gravel. The gravel
will be compacted and no excavation will be done. There will be timbers placed along
the outside of the path. The paths will be similar to those placed in the Municipal
Park by the Lions Club. Kornelis added, crushed gravel meets the ADA requirements.
Smalley asked if Frates was asking for approval from council at this time. Frates
answered yes.
• moa7os:
Councilman Smalley MOVED for approval of this concept as presented and
Councilman Bannock SECONDED the motion.
Smalley explained he used the word "concept" because the plan may need some
minor adjustments. Bookey stated, because there will be some changes in the
beautification of the park, he did not want to approve anything at this meeting that
was final. He added, -he would consider it as a "concept" approval.
Williams asked about the memorial and Frates explained, Dr. Hansen would be
meeting with manufacturers of the statue during a trip out of state. Williams
suggested planting trees could be done during Arbor Day at the park.
VOTE..
There were no objections to the conceptual approval. 80 ORDERED.
C. . C►ampiug/Softball Gmen. Bttlp - Smalley reported the Commission
discussed problems that have come up in the past with camping on the softball green
strip during softball tournaments. He explained, camping has been allowed along the
green strip in the past with written permission of the city manager. Smalley reported
a letter is being sent to all the softball teams to inform them of the proper procedure
for no parking and that cooking is to be done in the pavilion, use of restrooms, orderly
behavior, etc.
KENAI CITY COUNCIL MEETING MINUTES
MARCH 18, 1998
PAGE 8
Ross explained there were several concerns stated last year in regard to softball
players using the green strip for camping during softball tournaments. Complaints
included parking, use of business dumpsters, fires on grass, dumping of hot coals=on
the grass, etc. Additionally, when the tents are set up there, other visitors to the area,
who may not be softball players, believe it's a camping area. Ross noted his concern
that dipnet fishery users will see the tents there and think it is a place where camping
is allowed.
Ross continued, the code is specific however it does allow for the city manager to give
permission to use city property for camping. He intends to have council discuss the
matter during the next council meeting prior to letters being sent out to softball
players. He added, he wants council to address some of the issues and decide
whether they want to continue allowing camping on the green strip.
Ross added, originally, when the code was written to allow camping on city property
with written approval of the city manager, it was put in place for special traveling
campers using the FAA fields. This year, there are six or more tournaments
scheduled to be held in Kenai. This will take many weekends out of the summer
when local residents will not be able to use the pavilion and green strip and its
facilities for community use.
Moore asked if a fee was charged to use the green strip for camping. Ross answered .
no. Bannock requested the Parks & Recreation Commission members be informed
this topic will be discussed during the next council meeting.
d. Bernie Huss Fitness Trail - Parks & Recreation Director Frates reported
the Commission is planning -some site improvements -to the Bemie Huss Fitness 'Trail. -
He noted a local Girl Scout submitted plans for her Gold Award which includes work
on the Fitness Trail. The Girl Scout organization in Anchorage has approved the
project. The work will be done during the summer.
e. 21't CentW Grant - Frates also reported he and several teachers from
the Kenai Middle School were developing a proposal for a 21'` Century education.
grant for communities to assist in after school and tutor programs. Because of the
time frame, they will forward their application next fall. The grant awards can be from
$35,000 to $200,000.
d. Spring Break - Frates reported the volleyball courts and gym will be
available for school children's use during spring break. ,
• KENAI CITY COUNCIL MEETING MINUTES
MARCH 18, 1998
PAGE 9
D-6. Punning & Zoning Commission
Smalley reported a variance permit application for an over -sized, internally lighted
sign for Grace Brethren Church was continued until the Commission's next meeting.
It was continued due to only four members in attendance at the meeting. All four
would have to vote yes to allow the variance. Commission members felt that since
there probably would not be enough votes to pass the request, they would move it to
the next meeting to be sure the request was given a fair chance.
Smalley continued, another variance permit application for the One Stop by
Thompson Park was also continued to the next meeting for similar reasons. He noted,
the sign size had been reduced to about 14 sq. ft. over the limit.
Also, a conditional use permit for a retail business on Beaver Creek was denied. The
applicant indicated during the meeting he will appeal. Clerk Preas stated no appeal
had been received at this time. Smalley also noted a renewal for a lease application
for Mr. Doyle was al- proved and will be before coundl for consideration later in this
meeting.
Councilman Moore asked for details regarding the conditional use permit which was
denied. Smalley answered, it is a retail business for second-hand items, used
furniture, etc. He added, there was no testimony given against the request for the
permit and the vote was two to two.
D-7. Miscellaneous Commissions and Committees
D-?a. Beautification Committee
Williams noted the minutes of the last meeting were included in the packet. Also, an
application was submitted by Helen Brown for placement on the Beautification
Committee which will fill the open seat. There were no objections to the appointment
of Ms. Brown to the Committee.
D-7b. Historic District Board
Councilman Moore reported the Board met on March 16 at which there was a
presentation from Kathy Tarr of the KVCC. They are coordinating their efforts to move
visitors toward using the walking tour of Old Town which the Board is finalizing. The
Board also discussed at length the production of a walking tour brochure and how it
will be funded. It was noted time was of the essence. Moore added, Tarr presented
the 1998 Milepost advertisement which mentions the walking tour.
0
. KEMAI CITY
MARCH 18,
PAGE 10
COUNCIL MEETING MINUTES
1998
Continuing, Moore reported, prior to the meeting the Board held a work session and
worked on the Preservation Plan. They also reviewed their goals and objectives during
the meeting.
D-7c. Challenger Board
Councilman Bannock reported the Challenger Board Executive Committee met and
discussed the Challenger receptions to be held in Kenai and Anchorage next week.
Bannock added, the Challenger project was at a pivotal point as they would be writing
a check in the amount of $50,000 toward the purchase of pre -fabricated Challenger
items.
Bill Popp - Challenger Project Coordinator. Popp reported two fund raisers would be
held during the next week at which several representatives from the National
Challenger organization would be attending. He added, there will also be two
astronauts attending the receptions as well. Popp noted Jim and Sue Carter would be
hosting the Kenai reception at which the food and beverages will be sponsored by
Tesoro Alaska and Unocal. He added, the Anchorage reception will be hosted by
former Governor Sheffield and sponsored by AT&T (Wireless and Alascom).
Williams noted, the sponsors have donated to the program itself and are sponsoring
the receptions as well. In that way, no funds collected for the Challenger project are
being used for the receptions. Popp added a number of major corporate sponsorships
(and donations) will be announced during the Anchorage reception.
D-7e. Kenai Visitors & Convention Bureau Board
Councilman Bookey reported a meeting was held earlier in the afternoon which -he
had to leave to attend the council meeting. He noted Paul Dale of Snug Harbor
Seafoods made a presentation regarding allocation issues and some suggestions to
the Board of what they should do and how they should do it.
Bookey continued, the Board elected new officers: President, Will Jahrig; Vice
President, Rebecca Godek; and Secretary/Treasurer, Diane Loftstedt.
D-7f. Alaska Municipal League Report
Smalley reported he and Mayor Williams will be attending the AML Board of Directors
and Alaska Conference of Mayors meetings in Juneau April 1, 2, and 3. Both will
miss the April 1 council meeting.
Smalley reminded council they had been invited to the Planning & Zoning
Commission work session to begin at 6:00 p.m. on March 25, 1998. They will be
• KENAI CITY COUNCIL MEETING MINUTES
MARCH 181 1998
PAGE 11
discussing setback requirements, etc. A light dinner will be available and a packet of
information will be mailed to council for their information. and review prior to the work
session.
Regular Meeting of March 4919980
Approved by consent agenda.
OLD BU88 - None.
H-1. Bills to be Paid, Sills to be Ratified
MOTION:
Councilman Smalley MOVED to approve Item H-1, Substitute and Councilman
Bookey SECONDED the motion.
It was- noted- the difference in the original and substitute was the inclusion of an
overage amount to a purchase order to Copy Cats for the City/Chamber brochure.
VOTE:
There were no objections. 80 ORDEi ZD.
B-2. Purchase Orders Exceeding $29SOO - None.
R.3. Ordiaance No. 1776-98-- Replacing KMC 12.20.010, (Expectorating on
Streets and Sidewalks) With New Wording Described as "Deposit of
Refuse."
Introduced by consent agenda.
•
• KENAI CITY18COUNCIL MEETING MINUTES
MARCH . 1998
PAGE 12
H-4.
Sudivanae No.
1777.98 - C .
p i'visory and Professional ��g the Em
Public Works Man , List at ployee Classification,
the 'port Mane er'$r and AssistKU
ant 23.So 010(a� to Include a
Introduced b c 8 age. ''�°� Manager, and Changing
Y consent
agenda. Ong
Worksaaae No. 1778.98 _ In
Stand M er as One of the Po�g the Neq lY Created Position
�agement Act. t"Ons Exempted Pro hePai Labor
Introduced b m the Fay Labor
Y consent agenda.
gppi"oval
Center/Akan General, Inc. _ 3/Alaska Regional
�O'1'IO $147,193.45, �°nal Fire Training
V V.tr
Councilman Smalley hOVED for approval of Change
the motion. Order
8� Nel�soa _ No
3 �d Councilman
of then Nelson noted the change
�� a 1 g s Dyewen r the facility. Cou :rder amount was large.,
concern ge tank and ing, he noted the fa mostly due to the cost
• that during• . pumping system for usin • cility had been deli
concern the �k and pump yst na t of water would be drawn city water. There h wed
even with the new city Avadabili , $Wn from the as been
developed just for ty a'eA Because of tides of water is city
alsysways a even
the fire training Portion of the s' y was felt well
a
. - _ facili anew well should be
a. _ fire
Re - . ty` -
project was fast s �iOaa/Additato
additional
Ross s tracked acid administration
etas Sera _ Ross e 1
fated administintx'ation antic � wined
dit1Onal truss hangers) questioned I eons change orders ,the ARFF
items. gers) °f the char 4 and 5 Would be
change order. He asked for an (truss revisions and
Nelson explained aevis of those
trusses and What load ags showed how the
s ahown on the drawings.On Should is placed on the trusses.s m
�ufacturer was to de81gn the
reted Somme Of the l tom$ Particular Project.. Each individual Process, he (Nelson) g con
tithe truss is
°$dam truss manufacturer
loads 1 noticed a fear o f wring the
• Nelson added the trusses were desi shop dra .
tru89es are s , he believed the geed to w'ug review
skylights, and ep at
feet on center half of the design
manufacturer made an
ent °n the roof, it set because there aye honest
t tor` Usually,
necessary to have some
openings,
me additional
• KENA1 CITY COUNCIL MEETING MINUTES
MARCH 18, 1998
PAGE 13
trusses to carry additional load. In his drawings, Nelson explained, he showed two
trusses next to each other with the loading conditions for the individual trusses. The
manufacturer interpreted the load he showed to be divided between each of the two
trusses which was not his intent.
Nelson added, in order to carry the load, several additional trusses were needed. to be
placed in several locations. On review, the contractor who bid he job, didn't know the
truss supplier would be needing to provide the extra trusses nor did the truss
supplier. The truss supplier asked for payment for the extra trusses because their
cost was not included in the original bid. Then, because there would be four trusses
where it was originally designed for two, it became necessary to fabricate special truss
hangers which increased the cost again.
Nelson stated, he reviewed the costs forwarded to them for the extra trusses and
hangers, and felt the costs the general contractor incurred were possibly justifiable
because he didn't know and didn't include in his bid costs to cover the changes that
were made necessary by adding the Pxtra trusses. However, he didn't feel the extra
costs submitted by the truss supplier were eligible for compensation and marked
down the request for extra payment from approximately $5,000 to $2,146. FAA
reviewed the information and felt they shouldn't have to pay for any of those extra
costs. Nelson explained, if this item is approved, their total cost will be paid by the
city.
Nelson stated, he felt an honest error was made. He didn't think the contractor was
trying to gouge the city. In the bidding process his drawings were misinterpreted.
They were fortunate the error was found during the review. He suggested the city
should consider paying for the costs to keep good will with the contractor and all
parties concerned. However, from the technical stipulation of the contract, he didn't
think the city was 100% responsible.
Bannock asked if FAA gave a reason why they wouldn't be willing to participate in the
extra costs. Nelson answered, FAA's comments were conveyed to him by Tim
Orthmeyer, project manager. Bannock asked if he thought FAA's decision was based
on the technical clause Nelson had mentioned. Nelson answered, he believed FAA's
position was that the contractor made a mistake and they would not pay for the
mistake. Nelson added, in general, he felt the contractor was being fair on the
contract, doing a good job on the project, and working in the city's interest. He
added, he felt it is important to keep that relationship.
Ross restated, this was a fast -tracked project and some design problems were
anticipated. There are other issues that if it had been a normal project, he would
expect them to be caught. In this case, he questioned City Engineer La Shot
• KENAI CITY COUNCIL MEETING MINUTES
MARCH 18, 1998
PAGE 14
on these two items because he didn't realize the same amount would have been paid
if the error had been caught and the extra hangers are required because the original
design had not been followed.
Nelson added, they didn't know if the truss supplier had known or understood the
loading conditions ahead of time, whether he could have designed two trusses to carry
the load of the four. Ross stated his impression of FAA was that an error was made
on the part of the manufacturer and these are additional costs that would not have
been incurred if the trusses had been constructed without error. Ross added, that
was why he questioned the extra cost coming to the city.
Williams asked Nelson if, at this point in the construction of the project, did he expect
any major change orders in the future. Nelson answered, none that he was aware of
or told about. He added, he didn't think the contractor was holding any information
back either. However, he had not had a final settlement for the earthwork on the
project. Generally, he thought the earthwork quantities would be less than the
original estimate and there may be a noticeable cost savings. Williams asked if the
city would be asked for a change order from the contractor to pay the truss
manufacturer? Nelson answered, because he decreased the line item of cost
submitted by the truss manufacturer and only allowed the line item cost the general
contractor incurred, he didn't expect another change order request for this item.
Ross added, the change orders to date involved approximately $69,000 to the bad. He
believed the contractor had been fair with the change orders that involved credits.
Nelson added, the total cost of the project is approximately $8 million. Approximately
$4,356,000 has been spent to date. Total change orders have been $67,900 net,
equating 1.56% of the total project cost. Of that, there were some increases requested -
by the city, i.e. additional utilities to the structural fire trainer, a credit to the _ _._ _ -
audio/visual system, and the well. Those involve approximately $54,217 of the
$67,900 - about 1.2%. Other items requested by the contractor and design team
equal $13,749 to date - about .3% of the total project of the $4 million spent so far on
the project.
Williams stated he felt it was not the contractor's error, but the truss manufacturers'.
The magnitude of the project would indicate some cost differentials. He added, he
was inclined to have the negotiated amount to continue the good relationship with the
general contractor.
Bannock stated he was inclined to support the change order also. He asked if a
change order, by definition, is for changes requested by the customer to make to the
project -after the fact or is it to take care of errors in the project. Williams answered, it
has been his experience that either side can initiate a change order and either accept
the responsibility for the outcome.
. KENAI CITY COUNCIL MEETING MINUTES
MARCH 18, 1998
PAGE 15
u
•
b. Room 207 Revisions - Williams questioned the "...ceiling revisions to
accommodate structural modifications required by Nelson & Associates." Nelson
explained, a steel beam goes across the room which supports the floor above. The
height of the steel beam is below the ceiling height. All the beams along that wall are
at the same height. In this room the ceiling is higher, but his plan showed the beam
the same height as the other beams. When the architect discovered the beam would
be lower than the ceiling level, he felt it would look odd. In order to incorporate the
beam better, he had the contractor build a soffit around the other three walls of the
room to tie in and visually make the beam not look out of place. Williams asked if
this change was for cosmetic purposes and not structural. Nelson answered, correct.
C. TO Column Correction - Williams questioned, "...second floor column
was offset 10" from the lower floor column in order to provide a wider hallway ... the
first floor column had to be reinforced in order to carry the offset load." Williams
stated this seemed to be understandable, but asked what caused the contractor,
architect or engineer to miss this in the initial design. Nelson answered, for
construction efficiency one column from one level is stacked on the column and beam
below so that reinforcement of the column below is not required. A grid system had
been established to line up all the columns from one story to the next. At one point
during the design, the hallway width changed going into a room and the column could
not be on the grid that was established. The column had to be moved. However, it
was moved on the architect's plan, but not on his. During the shop drawing review
stage, it was noticed the column would be ten inches out from the wall. It could have
stayed, but would have looked odd. In order to move it, the connection of the column
to the beam had to be beefed up and then the beam to the column below it, etc.
Williams stated this could be attributed to bad communication between the- architect
and the structural engineer. Ross stated, the project was fast -tracked and drawings
were ready as bidders were picking them up. Mistakes were anticipated. Items 4 and
5 were concerns of administration, however those costs were negotiated down.
Administration recommends this change order be approved.
d. Well - Williams asked Ross what the original estimated price of the well
was. Ross answered, he thought between $50,000 and $75,000. Williams stated,
originally council was given $53,000 for the cost of the well. Ross stated, the original
price of the well included the drilling and the cost of the well. Re -engineering costs
for the pump and control systems were not included (which increased the cost of the
well significantly). He added, that was the difference between the cost initially given
to the council and the final cost.
Nelson added, they did a cost estimate after receiving a cost quote from the contractor
for putting in the well. Their cost estimate and the contractor's quote agreed except
for the installation of the pidess adapter. There was an approximate $12,000
. KENAI CITY COUNCIL MEETING MINUTES
MARCH 18, 1998
PAGE 16
difference between the estimate and quote. Nelson continued, the contractor
explained they would have to keep the area de -watered due to the water table, etc.
They feel there is a significant risk factor to them in installing the well. They are
willing to do that part of the work on a time and material basis, but that would be a
risk to the city. However, if the water table is low, etc. and the work is done on a
time -and -material basis, there is a potential for the city to save approximately
$12,000.
Bookey stated he agreed with Ross to a point. He remembers the discussion on the
cost of the well to be $50,000. It added, he didn't remember any other costs
discussed beyond that. He stated his concern in regard to the pitless adapter.
Bookey added, without the well costs, they were only seeing an approximate $20,000
change and that is very acceptable. Williams agreed. He added, the council has been
stringent in the non -issuance of change orders due to being burned two or three
times. Continuing, Williams noted the last two or three city projects have been very
good with few change orders and he believed that was due in part to the engineering,
etc., but also because of council's reputation of disliking excessive change orders.
• VOTE
There were no objections to Change Order No. 3. 00 ORDERED.
BREAK TAKEN: 8:29 P.M.
BACK TO ORDER: 8:43 P.M.
H-7. Approval - Special Use Permit/Portion of Tract A, General Aviation
Apron #2 - Kenai Aix Alaska, Inc. - - -
Acting Airport Manager Holland explained Kenai Air had requested to renew their
special use permit of a 100' x 300' foot area adjacent to their building used for
customer vehicular parking. The parking area is on an unimproved lot which Kenai
Air cleared for this use. There have not been any problems with this use in the past.
The Airport Commission and Administration recommend the permit be reissued.
MOTION:
Councilman Smalley MOVED for approval of the special use permit for a portion of
Tract A. General Aviation Apron 02 to Kenai Air Alaska, Inc. Councilman Bannock
SECONDED the motion. There were no objections. 60 ORDERED.
0
KENAI CITY
MARCH 18,
PAGE 17
H-S.
COUNCIL MEETING MINUTES
1998
Discussion - Schedule Budget Work Sessions
Ross reported the draft budgets would be forwarded to council for their review on
April b. Williams reported administration will want to give an overview of the budget
during the first work session and requests for donations will also be heard that
evening. Ross added, he would like to present an overview of revenues and general
review of expenditures during the first meeting. Also, personnel from the Borough
would like to make an informative presentation in regard to sales tax and property
tax. After that presentation, he would suggest the request for donations be held.
Ross added, a memorandum will be included with the budget which will discuss
issues council has stated they wanted in the budget. Some are in the budget and
some are not.
The following dates, times and places were chosen for budget sessions:
1. April 8, 7 p.m. at the Senior Center
2. April 22, 7 p.m. at the Senior Center
3. April 29, 7 p.m. in the Council Chambers
4. May 11, 7 p.m. in the Council Chambers
It was noted April 8 was also a Planning & Zoning Commission meeting date and it
was decided to hold the work session at the Senior Center. Bannock stated he would
not be able to attend. It was also noted May 11 is a Harbor Commission meeting date.
It was decided the Commission meeting could be held upstairs at City Hall. The Clerk
was requested to update the calendar (included in the packet) with the work session
dates included for council's use.
H-9. Discussion - Ordinance for Moratorium/Reapplying for Conditional Use
Permit After Denial.
Councilman Bookey explained his coi.cern that appeals on conditional use permit
applications for the same piece of property might happen over and over again
prompted hint to have this item placed on the agenda. He suggested a six-month or
one year moratorium could be written into the code to alleviate this type of problem.
He added, he didn't think people in a neighborhood should have to return over and
over to defend that neighborhood. (Bookey referred to the recent appeal of a
conditional use permit for property along Spur Highway.) He asked if council had any
direction one way or another and whether to go forward with an ordinance for
consideration.
Williams asked if Bookey would structure the moratorium to begin after the appellate
go process. Bookey answered, he assumed that's how it would be structured. He added,
• KENAI CITY COUNCIL MEETING MINUTES
MARCH 18, 1998
PAGE 18
he had not gone into it too far, but Attorney Graves had done some research on the
subject. However, he (Bookey) wanted to bring it to council prior to going too far with
it.
Williams noted, it would be only for conditional use permit applications and not
rezoning as that is already discussed in the code. Councilman Bannock, referring to
the area along Spur Highway most recently appealed, explained, there was an
application for a zoning change (which was denied), a conditional use permit
application (denied at Planning & Zoning) and a second conditional use permit asked
for during the appeal process which council did not hear. Technically, there was one
conditional use permit denied on that pi operty. Bannock continued, he believed
there is an ordinance in the code which places a moratorium on a conditional use
permit for the same thing. He added, he believed it would be serious trouble if a
person could not apply for a different conditional use permit on the same piece of
property. He noted, council denied the request to amend the appealed conditional
use permit because it was too different from the original conditional use permit
application.
• Councilman Smalley stated he sympathized with Bookey, and to a degree, agreed with
Bannock. He added, the new request is for professional offices which is different than
the first application, though still a commercial use. Bookey stated, his example may
not have been a good one, but his intention is to place a moratorium on someone
applying for the same conditional use permit on the same property over and over.
Attorney Graves noted, there is a moratorium already in the code for rezoning
property, but not for a conditional use permit.
Graves added, he checked with several other municipal codes in the state and- found
it is common to have a moratorium clause for rezoning requests, but he found no.
conditional use moratorium. He advised, that does not mean it couldn't be done.
Bookey added, he didn't want someone to be able to reapply for a conditional use
permit every thirty days until he wears the neighbors down. He believes that could
happen and feels it is a flaw in the zoning code.
Smalley suggested making a recommendation to the City Attorney to bring a draft
ordinance for consideration, through Planning & Zoning. Williams stated he believed
it would be hard to design an ordinance placing a limiting factor on conditional use
permits based on the idea that any change in substance to the permit constitutes a.
new application for the permit. He added, who then would be the judge of character
for the permit. Bookey agreed that is a concern.
Williams stated he believed administration and the City Attorney understand council's
concerns. He asked if it was council's desire to proceed with further investigation and
• KENAI CITY COUNCIL MEETING MINUTES
MARCH 189 1998
PAGE 19
the development of at least a set of guidelines that can be reviewed first by Planning &
Zoning and brought back to council with their recommendation.
Bannock suggested Planning & Zoning be requested to develop the guidelines or
ordinance. Williams stated, they would have to come up with a legal suggestion and
the attorney would have to be involved in drafting the guidelines. He added, if the
guidelines develop to a resolution from Planning & Zoning, the matter will still come
back to council. Bannock stated, if the rules are to be changed, he believed the city
would be best served to involve the Commission who will be involved in carrying out
the rule.
Council had no objections to continuing with the development of moratorium
guidelines or ordinance.
H-10. Discussion - Lease Application/James H. Doyle, Tract B, Gusty
Subdivision No. 6.
MOTION:
Councilman Smalley MOVED for approval of the lease application to James H. Doyle
for Tract B, Gusty Subdivision No. 6. Councilman Moore SECONDED the motion.
Ross referred to the memorandum included in the packet and added, it is a 90-day
notice lease which has come up for renewal.
VOTE:
There were no objections. SO ORDERED.
H-11. Discussion - Lease of Counter Space/Kenai Airport Terminal - Artha L.
(Bonnie) L. Koerber, Garrison Corporation d/b/a Budget -Rent-A-Car.
MOTION:
Councilman Bannock MOVED to approve the lease of counter space at the Kenai
Airport Terminal to Artha L. (Bonnie) L. Koerber, Garrison Corporation d/b/a Budget -
Rent -A -Car for Lease Space 19. Councilman Smalley SECONDED the motion.
Williams noted this is the only remaining full space and has been used in the past by
the Kenai Visitors Center to disseminate information to visitors. Acting Airport
Manager Holland added, with approval of this lease agreement, all the full spaces will
be taken. However, there is a small counter space off the end and some other counter
space that can be made available for the KVCC if necessary.
• KENAI CITY COUNCIL MEETING MINUTES
MARCH 18, 1998
PAGE 20
•
•
VOTE:
There were no objections. 80 ORDERED.
�ECZTTIVE 8EBSt�ON - None Scheduled.
ITEM I:
I-7. Mayor
a. Comxannity Dividend Program - Williams referred to Representative
Allen Kemplen's letter which was added to the agenda at the beginning of the meeting.
He noted the letter asked council for a response either by letter or resolution in regard
to whether the Legislature should use a portion of the undistributed earnings of the
Permanent Fund for a community dividend program. The funds would take place of
the Municipal Assistance and Revenue Sharing Program which have been declining
over the years.
Williams reported he, Mayors Navarre, Lancaster and Gonzales will be meeting with
Governor Hickel and Eric Wohlforth (Permanent Fund Trustee) on March 31 to
discuss statistical data and ideas regarding use of these funds. He also noted, while
in Juneau he and Smalley would be talking with Representative Davis in regard to the
bill he has introduced for a community dividend program.
Williams suggested council not answer Kemplen's letter until after their meetings with
Hickel and Wohlforth and returning from Juneau. He asked council if they were in.
support of a community dividend program. If so, he will prepare a resolution and will
be lobbying for a program. No objections were stated. Smalley added, AML was
strongly supporting some form of a community dividend program. Williams noted,
both Governor Hickel and Hammond were in support of a community dividend
program as well.
b. Donkey Engine - Williams noted, he and Bookey had been planning to
move the antique donkey engine to a piece of city property for some time. They had
been waiting to pour a concrete slab on which to place the engine. Williams
suggested the engine be moved and placed without the concrete slab and suggested
property behind the Kenai Fine Arts Building, outside the fenced area, as a location.
Williams requested Administration to check the plat and make sure placement of the .
engine at that location won't interfere with utility lines, easements, or any agreements
with the present lessee of the Kenai Fine Arts building. There were no objections from
council.
• KENAI CITY COUNCIL MEETING MINDS
MARCH 18, 1998
PAGE 21
i3esviees - Williams referred to thesMarch to letter
C. Frontier Community • requested a letter of pp
ort from Frontier Community Services us which they
• funding through the Alaska Children's Trust" Indian.
attach to their application for a the director of the Ken
Clerk Freas reported she spoke with Rita SYnagg am Would be in conflict
am and asked whether Frontier's Progr
Tribes Head Start program with a representative
comnfiagicgtea'seported, after speakingwith, the Head Start Program•state fundsandKIT's
from ontier, they would not Frontier serequesting felt Frontier's program
Head am is federally funded. Freas ad
Head Start program
may enhance their Head Start Program'
LOTION:
VFD to draft a letter of support• There were no objections.
Councilman Smalley MO
80 OgDZ=D.
Weekly - Williams referred to the Nation's Citi�esdWeekly
d. Katton s Cfties F Supreme Court ruling that gran
packet noting a U.S. Sup lawsuits for proposing or
article included in the p against liability
municipal elected officials full immunity g
voting on municipal ordinances.
Road speed Limit Change - Council referred tothe DOT
limit
e• Bridge Access R P of the meeting regarding thespeed
letter which was distributed at the beginning request DOT paint the .
Bridge Access Road. Smalley requested the city q gn a benefit.
changes along for maximum si ag
new speed limits in large numbers across the roadway
1-2• city images
his letters
a• Redoubt Avenue/Forest Drive -Ross referred to copies
Senator Warn
ded as Information Item No. 7) to Representativ He also noted, his letters
(included
the Redoubt Avenue/Forest Drive reconstructiontheir
March 4 meeting•
• ted council reaffirmed their capitol projects
reference during
eunding Hodgins had
in�iica s also include
Ross added, his letter to f a no confused with the CIP
of anon -potable well on the golf cc,urse and the city
offered for development should those funds be co
would accept those funds but in no v►aY
list requests.
Ross reported he negotiated a price for all the major
b City Castooa map .
s to be included on the cartoon map
for one price
city building
t Funds/Depastment of Agriculture - Rose council had
C. Fedesal� the Department of Agriculture
investigated possible funding'°ugh
million only $50,000 comes to Alaska as block grants an
requested. He found of $50 eligible
didn't believe the city would be
. KENAI CITY COUNCIL MEETING MINUTES
MARCH 18, 1998
PAGE 22
d. Cunningham Park Fence - Ross reported he would not be including
funds in the budget to move the fence, but would have the amounts available for
council to review during their consideration of the Parks & Recreation Department
budget.
e. FAA ags - Ross reported he met with representatives of FAA Real
Estate who want to turn over the FAA property with the buildings and towers (in
place) to the City of Kenai. They were not able to answer many of his questions
because they were not aware of findings of the FAA Environmental Section. Ross
reported he told FAA he would advise council, look at the buildings and tower, and
determine whether or not the salvage of the buildings could be done at no cost to the
city. FAA talked about laying the towers down and the city removing them. He asked
them for names of people who have done work like this for FAA in the past. Ross
stated, administration has every reason to believe the towers are painted with lead-
based paint and there are also issues involving the buildings and their floor drains,
dry wells, etc.
Ross continued, to insist FAA remove the buildings and tower will further delay the
transfer of the property to the city because of FAA procedures. Ross added,
administration will make a recommendation, but it will be conservative and that the
city should accept the land only after FAA remove the buildings and towers even
though it will mean extra delay. If it is a funding problem for FAA, Ross suggested
Senator Stevens be contacted as he has already been involved with FAA
environmental funding. Ross added, he will be report back to council.
Williams asked for confirmation that $250,000 has already been made available to
FAA. Ross stated, that funding is with FAA Environmental, not with FAA Real Estate.
Williams suggested FAA cost out how much moving the towers and buildings would
be. Ross stated, FAA is to get that information back to him, i.e. information they
have, how long it will take, cost if FAA is to do it, etc. Ross added, without the FAA
environmentalists being involved in the discussions, a full picture is not known as the
FAA Real Estate representatives barely ackxiowledged there is a third buried tank
(outside the fence).
Williams suggested discussions coltinue as council placed a moratorium on the
development of any of those properties until it is known the extent of the problems.
He added, he would rather be safe than sorry. Bookey stated he agreed totally and
added, the city does not want to accept the properties unconditionally without the
federal government covering the clean-up costs. He added, it's a very old site and
there are a lot of unknowns involved.
•
KENAI CITY COUNCIL MEETING MINUTES
MARCH 18, 1998
PAGE 23
Ross noted, one tower was removed, but the base is still there. Under the tower base
is a 12 to 16' drop full of concrete which would have to be removed. The buildings
and towers are the main thing to discuss, but the environmentalists need to be
involved in those discussions.
f. Wildwood Bowes Line Problems - Ross reported he received a call over
the weekend that there was a major sewer line problem at Wildwood. Two city
personnel and the vactor truck were sent to help. Wildwood will be billed for the over
time used but not equipment time because if the city had not helped with the
problem, it may have passed on down to the lift station and there could have been a
worse problem.
g. FUh Board - Ross reported Dave Nelson of Fish & Game advised him the
city will not have to reapply for the regulation change. It was set for time certain and
will carry over.
h. Fire Department Matching 0sant - Ross reported he has authorized
the Fire Department to apply for a matching grant which will require a $5,000 local
matching grant if the grant is awarded. The grant will cover equipment for fighting
wild land -type fires and would match up with the Department of Forestry's hoses,
radios, etc. Ross added, it is something that probably needs to be done due to the
amount of beetle -killed trees and other situations that will require mutual fire support
in the future. If the grant is awarded, information will be brought back to council
because the match will probably have to come from contingency.
i. Challenger Project - Ross reported he has been working on how to
protect the city's interest in the language of the Challenger contract at the national
level. Three different attorneys are working with -three different.entities. At this time,
under the grant it appears Challenger can own the building. Ross added,
Administration would like council to consider the city putting up the land, allowing
Challenger to own the building and work out cooperative agreements that would also
allow Challenger to own the land.
The benefit in the long term, Rose continued, would be a lot of interaction between
council and Challenger which will alleviate some problems. Ross noted, he and
Attorney Graves have discussed how the city's interests would be secured. At this
time they are investigating a.reversionary clause in the deed to state if the Challenger
equipment is removed from the building and the program leaves town, everything
comes back to the City of Kenai. They also discussed placing on the deed a restriction
from borrowing against the land (for ten years or more) . He added, this would put the
council in a fairly good position as there would be a lot to lose (for the Challenger
program) . On the other hand, the Challenger non-profit who is raising significant
funds toward the program, will have ownership in what they are doing.
• KENAI CITY COUNCIL MEETING MINUTES
MARCH 18, 1998
PAGE 24
Ross added, he believed the option he discussed would be as good as protection that
can be had -- it's definable and readily enforceable versus trying to work clauses into a
three-way contract with Challenger National.
Bill Popp - Popp stated he was neutral with the suggested options. The Board of
Directors had not met to discuss the suggestion and would need to as it is a deviation
from the original arrangement. Popp added, he had polled the president of the Board
and based on her past discussions with other members of the Board, they would be
open for discussion on the idea. Popp stated he would like some indication from
council for him to take back to his Board.
Councilman Moore asked how this suggested option would affect the Memorandum of
Understanding. Ross answered, there would be parts of it that need modifying. He
added, they had always been under the assumption the grant (from NASA) would
restrict ownership to a municipality. Information Popp had received was it does not.
Ross continued, portions of the Memorandum of Understanding that reflect
ownership would have to be reviewed, as well as what the city's responsibility would
be for maintenance support, cleaning, landscaping, parking lots, etc. and can be
is negotiated irrespective of the ownership. Council can still continue with those items
as part of the agreement in working with Challenger.
Bookey stated he did not know, at this time, whether he would be in favor of the
option or not. He suggested council have more time to think it through as it is quite a
change in the original direction. He added, he was not willing to make a decision at
this time.
Ross stated, he was not asking for a decision of council at this time. He added,- what
it does is it takes the city out of the role with Challenger as it has with the Visitors
Center where the city owns the facility but contracting with a non-profit to run the
facility, and with Challenger, a three-way agreement with Challenger National
involved as well. Ross continued, this option is fairly clean. The City would negotiate
with Challenger as to what services the city will provide to Challenger in the
community. Also, the protections in this option, to administration, are more
enforceable and greater protections than some agreements than could be reached
through the three entities.
Williams asked Popp if there wasn't a reversionary clause already built in that says if
the 501(3)(c) fails and leaves the project, it reverts to a responsible governmental
agency. Popp explained that is in the by-laws with an amendment required by the
IRS. He added, the amendment to the by-laws was to make them compatible with the
501(3)(c) designation and states in the event of dissolutionment of the corporation,
0 assets must be distributed to the court of the county or to a local recognized
KENAI CITY COUNCIL MEETING MINUTES
MARCH 189 1998
PAGE 25
government: entity. Popp added, at first glance this would desilutate the t and would
of Kenai
as the recipient of the Challengers assets in the event of deso be a perfectly acceptable situation *vvith the IRS.
Williams asked if this reversionary clause could be worked into the city/Challenger
agreement. Ross stated, the reversionary clause they discussed to the ownership of the .
laced on
the deed of the land that says the land and the facility r
City of Kenai. Ross added, what council and the Challenger Board need to discuss is
to further restrict the deed so that Challenger cannot take a mortgage against the
property without the consent of the Kenai City Council.
1-3. Attorney - No report.
I-4. City Clerk - No report.
i_g. Finance Director - No report.
I-6. Pvtblic Works Director - No report.
•
14. Airport Manager - No report.
IT= i• �ISCUSBO�I
0
J-1. Citizens - None.
J-2: Council
Bookey - Stated he was very disappointed in the decision of the Board of
Fisheries in trying to take the meetings out of this area and hold them in another
area. Williams asked council if they wanted him and the City
M'sncernager to cowrite a Council
letter to the Board of Fisheries and the Governor stating
had no objections.
Moore - No comments.
Measles - Absent.
Bannock - No comments.
8metlley -Reported the Borough Assembly at their March 17 meeting, drafted
a resolution strongly supporting Senator Torgerson s secondary road and municipal
road maintenance bills (Senate Bills 263 and 264). Smalley suggested the City of
Kenai may want to do the same.
Willisms - Referred to Information Item No. 7, a letter from DCRA which notes .
the population of the city as 6,971 and set the FY99 Municipal Revenue Sharing for
KENAI CITY COUNCIL MEETING MINUTES
MARCH 18, 1998
PAGE 26
the city. Williams stated his concern the population decreases, but building permits
have increased. He added, the city has the ability to question the count and take
another count, however the cost is very High to do so.'
ADJOURNMENT
The meeting adjourned at approximately 9:54 p.m.
Minutes transcribed and prepared by:
.. . dCaezX. ,,- �Zad-a--1
Carol L. Freas, dity Clerk
•
CAM