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HomeMy WebLinkAbout1997-08-20 Council Minutes• AGENDA KENAI CITY COUNCIL - RF,GULAR MEETING AUGUST 20, 1997 7:00 P.M. KENAI CITY COUNCIL CHAMBERS http://www.Ronal.ne /city BOARD OF ADJUSTMENT HEARING - Appeal of Bill Zubeck 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. Be SCHE,RIMD, PUBLIC COGENT (10 Minutes) 1. Bob Favretto - Potential Development of a Women's Prison C. PUBLIC Ii[EARINGIB 1. Ordinance No. 1755-97 - Increasing Estimated Revenues and Appropriations by $3,824 in the Taxiway Extension North Capital Project Fund. 2. Ordinance No. 1756-97 - Increasing Estimated Revenues and Appropriations by $10,993,472 in the Capital Project Fund Entitled "Kenai ARFF Project." a. Motion to Postpone for Special Meeting Action b. Schedule Special Meeting 3. Ordinance No. 1757-97 - Increasing Estimated Revenues and Appropriations by $1,237 in the General Fund for the Purchase of a Playground Slide. 4. Resolution No. 97-52 - Formally Accepting FY98 Municipal matching Grant Number 98/587-4-001 From the State of Alaska, Department of Administration in the Amount of $147,180.00 for a Water Quality and Quantity/ Development Program, and Accepting the Conditions of the Grant Agreement. 5. Resolution No. 97-53 - Transferring $1,835 in the Mission Street Capital Projects Fund for Engineering Services. 6. Resolution No. 97-54 - Transferring $3,000 in the General Fund Public Works Department for Professional Services. 7. Resolution No. 97-55 - Transferring $3,307 in the Airport Land System Special revenue Fund for a Gas Main Extension. 8. Resolution No. 97-56 - Awarding a Contract to North Star Contracting for the Project Entitled "Kenai Municipal Airport Runway and Taxiway Crack Sealing and Painting, 1997" for the Total Amount of $159,679.00 Which Includes the Basic Bid and Alternates A, B, and C. 9. Resolution No. 97-57 - Awarding the Bid for a Cargo Van for the Building Maintenance Department to Kenai Chrysler for a Total Amount of $18,821.00. • 10. Resolution No. 97-58 - Awarding a Contract to Randy's Glass for the Project Entitled, "Public Safety Building Overhead Door and Operator Replacement" for the Total Amount of $21,289.25 Which Includes the Basic Bid. 11. Resolution No. 97-59 - Awarding a Contract to Miller Sheetmetal for the Project Entitled, "Kenai Recreation Center Roof Top Air Handling/Heating Unit Replacement" for the Total Amount of $48,600.00, Which Includes the Basic Bid. 12. Resolution No. 97-60 - Awarding a Contract to Russ's construction . Company for the Project Entitled "Kenai Recreation Center Wood Gym Floor Repair/ Refinish" for the Total Amount of $19,127.00, Which Includes the Basic Bid. D. COMMI88I0N/C0MMITTEE REPORT8 1. Council on Aging 2. Airport Commission 3. Harbor Commission 4. Library Commission 5. Parks & Recreation Commission �J 81 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 August 6, 1997. 1. Bills to be Paid, Bills to be Ratified 2. Purchase Orders Exceeding $2,500 3. *Ordinance No. 1758-97 - Increasing Estimated Revenues and Appropriations by $7,000 in the General Fund for a Public Library Assistance Grant. 4. *Ordinance No. 1759-97 - Increasing Estimated Revenues and Appropriations by a Net Amount of $7,145 in Three Senior Citizen Funds. 5. Discussion - Mayor's Invitation to Travel with Representatives of the Alaska State Legislature to Khabarovsk- and Sakhalin-. 6. Discussion - City Maintenance Facility 7. Discussion - ARFF Photo Series 11, R 171U= None Scheduled. 1. Mayor 2. City Manager O 3. Attorney 4. City Clerk ' 5. PYnance Director 6. Public Works Director 7. Airport Manager J. D�SC„�V Olt 1. Citizens (five minutes) 2. Council K. �l►D�iO��CNT 4 • -4- KENAI CITY COUNCIL - REGULAR AIEETINGa AUQUBT 201,1997 7:00 P.M. IIENAI CITY COUNCIL CHAMBERS http://www.KenaLuct/aft BOARD OF ADJUSTMENT HIEAR1NGl - Appeal of Bill Zutbeak I • Mayor Williams called the meeting to order at approximately 7:00 p.m. in the Council Chambers in the Kenai City Hall Building. A-1. PLEDtIE .OF ALLEGIANCE Mayor Williams led those assembled in the Pledge of Allegiance. A-2. WLI CALL Roll was taken by the City Clerk. Present were: Smalley, Williams, Swarner, Moore and Measles. Bookey, absent for the Board of Adjustment Hearing, arrived at 7:31 p.m. for the council meeting. • MOTION: Councilman Smalley MOVED to recess for purposes of holding the Board of Adjustment Hearing. Councilman Measles BEGONDED the motion. There were no objections. SO ORDERED. Williams noted Mr. Zubeck had not yet arrived, but continued on with the Hearing's Preliminary comments. The Board of Adjustment Hearing was called to order by Mayor John Williams at approximately 7:05 p.m. Mayor Williams reviewed the Board. of Adjustment instructions with council, noting the Board was under a duty to act justly, reasonably, and without abuse of discretion on applications for appeal concerning.matters before it and would act as a quasi- judicial body. He added, the Board would take testimony as it was a public hearing and the proceedings would be recorded. Williams noted six of the seven council members were in attendance and a quorum was present as a quorum of four was required and the majority was the requisite vote. Williams also noted, the Board had 30 days from the appeal to render a decision and could impose appropriate conditions and safeguards with regard to the zoning ordinances relative to any matter subject to their jurisdiction. . KENAI CITY COUNCIL MEETING MINUTES AUGUST 20, 1997 PAGE 2 Williams noted Mr. Zubeck arrived (at approximately 7:04 p.m.). Additionally, Williams stated, those persons giving testimony would be sworn in prior to their testimony. Williams requested the following items be added to the packet of information: 6. Item BA-1, page 2 of the Board of Adjustment instructions (a copying error) 7. BA-6(k), a letter in opposition to the vacation from Denis Mueller Testimony began with Appellee Bill Zubeck being sworn in and offering his comments. Verbatim begins: Zubeck: We brought this vacation before the Planning & Zoning Commission. It was approved by the City of Kenai and then it went to the Borough and was disapproved for a, there were a couple of people there who owned property that claimed that the only way they had access was through my property. But they had lived there for a number of years and at the time they had bought that property, there was access to the Spur Highway, not through my property, there always has been. So, on them grounds, why they decided not to approve the vacation and they said through a matter of appeal, we could bring it back to the city. And, that weave done. I can give you a little history on that property; I bought it in 1973 and at that time, there was a water, the city main water line goes through that - - property, approximately 150 feet south of where this easement, so-called public use easement is or shows on the plat. But at the time this was given by the former owners, I was to understand that when they moved that water line, that it was, that other become null and void. And in 1983, I brought the, there was another little angle that went through the far corner that I brought before the Planning & Zoning council to be vacated and there was no problem. And, at that time, I understood that the only easement back there was a power line easement only. And, that's, to the best of my knowledge, that easement should never been there and became null and void when the 60' easement was given 150 feet south through the full length of my property. That's the way I see it. 0 • KENAI CITY COUNCIL MEETING MINUTES AUGUST 20, 1997 PAGE 3 Williams: Okay, now the questions from council regarding this issue. I1m going to ask the staff attorney, or council attorney to bring us up to speed a little bit with the issue of the Borough and the procedures that they used for sending it back over. Graves: Well, I think it's contained in the packet, but the reason. that the Board of Adjustment is hearing this is because the Borough ordinance sends back appeals from easement vacations and refusal to vacate to city Board of Adjustment. It's a little bit unusual. We haven't had one of these to my knowledge for a long time, but that's why this body is hearing it rather than the Borough Assembly as a Board of Adjustment. Williams: Okay, thank you. Are there questions from the attorney? Yes, Councilman Moore. Moore: Is our decision final? Graves: The City Clerk called the Borough to check on just that point and, I believe, Lisa Parker, the Borough Planning & Zoning Director said that • they consider our decision as binding upon them. One way or the other they will adhere to our decision. Moore: Thanks. Williams: Further questions, discussions? There seems to be considerable amount of data available to us from previous hearings and there seems to be no question about the first easement - Easement No. 1. Everyone is in agreement that that easement is okay and -can take place. There is a note from the Borough that says, "In the even this easement is approved for vacation, the applicant may need to purchase the easement within the northern 30 feet of the City of Kenai." Of that, I'm not too clear on. Anybody care to elaborate? Is it, on Easement 1, is it necessary for Mr. Zubeck to purchase from the city that 30 feet? Graves: There is a state statute involved and I can, if you give one just a minute to find it in the packet. Williams: All right, the second easement is the one we're most concerned with at this time. That easement, along Doris Avenue; the findings of the Borough stab were that alternative right-of-way is being dedicated by the Buffalo Run Subdivision Plat and that no properties would be denied . access for utilities. Earlier, the staff found no reason for not granting the vacation. There were some recommendations. However, later, as we begin to look through there, there came up the question of the Homer KENAI CITY COUNCIL MEETING MINUTES AUGUST 20, 1997 PAGE 4 Electric easement, as I understand it, and there seems to be a thought thateven if the easement were vacated, that the Homer Electric 40' easement, center power line being the 40' easement, would still be in place. Zubeck: That's correct, and I have no problem with that. I mean, at that time, I think it was as power line easement only. But by public use, they think that it should be a road, sewer and water. Williams: So, in other words, if the easement were vacated, Homer Electric would agree to maintain their position with regard to the 40' easement and you would have no problem... Zubeck: I have no problem with the electric easement at all. I mean its...and at the time that I understood that it was a power line easement only, which I have no problem with, my property still going out the edge(?) which farm and raised wheat, or oats on for many years, never had any problem. The only thing is, I had to give them access for maintenance or whatever to that easement. And, I never even knew that there was a so- called 30' public use easement there. until I started this process of subdividing this. I thought that that thing had been abandoned when the other easement, the 60' easement, was given along Doris Avenue. Williams: And, of course, that brings up the question of which deed is correct. Which document is correct as to whether one was given up and one wasn't. Zubeck: Well, if you see the dates, one of them, the one, the original easement was like a few days prior to this, and from what I understand, at the. time they, they were going to put this water main through there, it was going to come along the north end of the property. But, Homer Swires had that shop there. He also had that, probably had a landing strip where the city water main is right now and it was a straight shot from the well house through there. It was already cleared and I just assumed that it was an easier way to go rather than have to move that shop and whatever. Ah, there are very few people alive right now that I can talk to, but from what I understand, that's what happened there and that was the reason that water main is where it is now instead of on the north side of the property. Williams: Because the shop was already there. KENAI CITY COUNCIL MEETING MINUTES AUGUST 20, 1997 PAGE 5 Zubeck: The shop was already there and there was some question there when it went to the Borough. They thought that I had built that shop, knowing that was a public use easement. Well, that shop was there before there was any power fine or public use easement at all. That thing was there either in the late fifties or the early sixties. Ten or twelve years before I purchased the property. Williams: All right. And also to substantiate Mr. Zubeck's discussion concerning the deeds, in 1970 the reference book and page were recorded with the Kenai Recording District. On August 5 and August 1411 there was a dedication of an easement that superceded the first easement. That's the part that's been hard for me to grasp. Are these documents in fact real? Do they exist? Everybody's seen them. I haven't. In June, the northern 30 feet was dedicated to the city as an easement. In August, city and original property owners moved the dedication 150' south of the quarter easement. In August, city and original property owners moved the dedicated 150' feet, I guess it says. It's little type there. South of the quarter section which is now Doris Avenue. In that same recording, all other easements, dedications were declared null and void and the water line was constructed through Doris Avenue easement. Is that the way you understand it? Zubeck: ' That's the way I understand it so at that time, that 30' public -use easement become null and void and the new 60' right-of-way through there, which the water main is now, was the, is where it should be. Williams: Okay. Now, Mr. Graves... Graves: The section in Title 29 says, "...if the municipality acquired the street or other public area vacated for legal consideration, money, or by expressed dedication to the municipality, other than as a subdivision platting requirement... " Then it goes on to say they have to pay fair market value if the property vacated. So, what it means is, if the city got it by an ordinary dedication or paid money for it, they have to pay back the city the fair market value. But, if it was just dedicated as part of a zoning platting requirement, they don't have to pay fair market value. Frankly, from the record I read, I read this thing several times, I'm not exactly clear if it was formally a platting requirement or not. I2 have to go through it again and examine that... It's, excuse me, it says there for a $1.00 and other, whatever, consideration is what they gave him for that first easement and it says . KENAI CITY COUNCIL MEETING MINUTES AUGUST 20, 1997 PAGE 6 the same thing on the second. But on the second one, it mentioned in there, when they hooked to that water, that the assessments, something to do with the assessments would be, I don't know, waived or whatever, for that, when they hooked that existing house up to the city water. Williams: Are there questions from the council? I have to chuckle a little bit over this whole issue, having been in the real estate business and dealt with some of the principals and properties back there and then it leads me to chuckle a little when I see the plat and shows virtually everybody's houses in there are not on their properties. They're scattered all over the place, you know. It's how we did it in the old days. All right, questions from council? Yes, Councilwoman Swarner. Swarmr: I guess just a question. The things you were reading from John, the historical pact, where were you getting...is that on... Williams: There were all part of the packet materials we had. is Swarner: Was it in the first part of the packet? Williams: Probably starting down in, they aren't numbered but, BA-3(a) in the right-hand corner is the beginning. We might also discuss, for just a moment, Mr. Mueller's letter that just came to the council this evening and you should have an opportunity to have a copy of it. He's asking, he's stating that he opposes the petition for two reasons: First of all, it's the only dedicated and recorded easement for my residence (Tract B, Mal Cole Subdivision). Without this access, my property will be landlocked." Is that true or not? Zubeck: Mr. Mueller has lived on that property for over 15 years. Ibe talked to the lady that sold him that property and she said, when that property was sold, there was easement ... not him, but I guess that's property's changed hands a couple of times, there is a, the way it was done before, there was a deeded right-of-way with access to all that property that, and it's a 20 foot right of way. And where that property came is on the state plat showing that property. It does show an easement in there. But on the latest Borough tax plat, it doesn't show. Now, I don't think that's my problem. That's between whoever purchased that problem with Cole. And to be realistic, Mr. Mueller's property is probably 800' across the swamp, if you go east, and if you go west, it's probably over 1500 feet and through my shop. So, realistically, I don't understand how he figured that he would get access that way. KENAI CITY COUNCIL MEETING MINUTES AUGUST 20, 1997 PAGE 7 Williams: All right. And I don't know how well staff has investigated this, but he also claims that it provides his only access to city water and sewer. lie does admit that at the present time, he's not connected to city utilities, but if it becomes necessary in the future, this would also affect other properties in the subdivision. Zubeck: And, I don't know how that would happen because I don't think the city's going to build a right-of-way sewer and water down that easement and the only other way, I think, the city would go is probably along the Spur Highway and at that time, that would probably be easier and closer for them to get hooked to sewer and water. Right now, it's probably 2,000 feet from his, if they were to use that, and at that time, from what I understand, if he has his house built, if they had to give, if he had to, if they had to give their 30 feet of easement, along with my 30 feet, to make that an official easement through there, his house would be in that easement. . Williams: All right, Councilman Bannock? • Bannock: In regards to Mr. Mueller's letter, is Tract B on our map the little one -by - five square marked "B." Is that the one that's identified on our map of... Williams: Bannock: Smalley: Williams: Bannock: Williams: Bannock: Zubeck: Bannock: Zubeck: I imagine you're looking at 041050, upper right hand at the corner? That's not the one I was looking at, but... Directly behind this one... Same thing. Yea, okay. All right. Okay. A quarter of an acre, a quarter of an acre with the 07B... Mr. Mueller's property "B." It isn't identified as a house. • Is that the one that he's speaking about in this letter? This right here would be his property, on this... Okay, that's the very same one marked "B.* Right here. KENAI CITY COUNCIL MEETING MINUTES AUGUST 20, 1997 PAGE 8 Bannock: Where in relationship to that was, as I understand it, the Easement No. 2, I'm sorry, let me rephrase that, the water and sewer used to be in that line. It's no longer there? Zubeck: Bannock: Zubeck: Bannock: Zubeck: Bannock: Zubeck: Bannock: Zubeck: Bannock: Zubeck: Bannock: Zubeck: Bannock: Williams: It never has been... It was designed to go there? It never has been... But never has been. Where now does that water and sewer go. Along the bottom? There is no sewer. Okay, water, all right. The water, at the present time, runs right along here and this is approximately 150 feet from here to here. Okay, okay. This is the water. There is no sewer. All right. So, is it true then, is paragraph No. 2 of this letter true? Well, I don't know how he figures he'd have access through there because I own that ro p pertY Well, there's nothing there either. There is no water and sewer there. No. I believe Paragraph No. 2 is not applicable. All right. Further observations? Councilwoman Swarner? Swarner: Mr. Zubeck, I guess I can ask him questionso right? Okay. I went, rode down Swires Road today and looked for access to these other lots and I didn't see any access trails. Zubeck: There never has been access. The only access, when this property was sold, the only access to this was the Spur Highway. This was, when . KENAI CITY COUNCIL MEETING MINUTES AUGUST 20, 1997 PAGE 9 these, when this property was sold, this was all woods back here. There was no access at all. Swarner: Okay, and that's what I had trouble understanding, you know, that people talking about access to their property because there isn't any historical things that I saw. Zubeck: I, I thought that we had in this map showing you the access on the original, on the state... Swamer: Right, I think you do. Zubeck: And that is on a state plat, right here, is Mr. Mueller's property and this is an easement that was given to the deed to the first people that sold this property. There's never been a question about access to this property here. But he has his house built here on this corner... Swarner: Right. SZubeck: ...within that 30' easement. If he had to, if this, if they had to give their 30 feet also, he would have to move his house. But, when you see the Borough tax map, the most current one, they didn't show any of this. All they show is a straight line here. But, this is a state plat. Swarner: Thank you. Williams: All right, are their future questions from the council? Further observations? Swarner: Mr. Mayor, I guess I have another question. Do we have any Planning & Zoning minutes available from 1973? Sorry. Freas: I'm sure that there probably are. Evidently that wasn't looked up. Zubeck: We went back and looked at that and it's, they recommended they write a letter to Mr. And Mrs. Swires thanking them for giving them that easement and that was about the extent of it. Williams: All right. Now, you're fully familiar with the Borough's recommendation on the acceptance, I believe from their May 8e' meeting, on Easement No. 2. They claim there is an alternative right-of-way being dedicated from the Buffalo Run Subdivision plat. No properties would be denied access for utilities. The Planning Commission concur with, accept the findings, and approve the vacation of a portion condition of bonds. And then they • KENAI CITY COUNCIL MEETING MINUTES ALf(3U3T 20, 1997 PAGE 10 • U have the City of Kenai 30 days in which they may veto the Planning Commission approval of the vacation. Is there anything in there you're in disagreement with? Zubeck: No, I mean. Actually, I don't even care about that. I mean, the only, we're building those lots down there. They're the ones that have question about having access to it and we're going to build a road to give them access. Williams: Has anyone joined us or does anyone have any other pertinent information that they may like to add to these hearings this evening? All right. Unless council has anything else to say or discuss about the matter, I think we're pretty well aware of most of the facts. The entire matter will be turned over to the administration to prepare an answer based on the council's decision and it's my understanding that answer would be forthcoming within 30 days. Does council have anything to add to that? Does administration have anything to add to that? Mr. Zubeck, closing statements? Zubeck: If anybody has any further questions, I've got all of the paperwork. I didn't bring it with me tonight, from the people that sold that property, that's in question, that shouldn't even be part of this issue. Moore: Zubeck: Moore: Graves: Zubeck: Graves: Zubeck: Graves: One final question, Mr. Zubeck, has this held you up in your development of... Yes, it has. Thanks. Mr. Zubeck, I'm sorry. Can I ask you a question? Certainly. On this track to Mr. Mueller's property, I think you said that there was a private driveway granted by a deed years ago... There is, but from what... Is that the one, you mind if show you this thing? Is it okay I get up and show this...I just wanted to see if... I just wondered if that private road you talked about is one of these in this deed from the Cole's to Robert Moody? Is that one of the ones... • KENAI CITY COUNCIL MEETING MINUTES AUGUST 20, 1997 PAGE 11 Zubeck: Yes, IVe got all of the, I went to Mrs. Cole and Iwe got all the paperwork... Graves: Is this number one, is that the one that you thought connected to that Tract B? Zubeck: There is (inaudible).. -At that time (inaudible)...I'm not sure if that's the exact one, but it's similar to it. Portion inaudible. All were talking among themselves. Williams: All right. It appears that all the testimony has been given. Ah, the questions that may have been before the council seem to have been answered. There does not seem to be any further questions from the council or the general public. As I said before, the administration will prepare the answer to the appeal within the 30-day period and with that I will declare this Board of Appeal regarding the Bill Zubeck case closed. The Board of Adjustment hearing closed at 7:31 p.m. MOTION: Councilman Smalley MOVED to call the meeting to order from the recess taken to hear the appeal of Bill E. Zubeck. Councilman Bannock SECONDED the motion. There were no objections. SO ORDERED. It was noted, Councilman Bookey arrived at 7:31 p.m., immediately following the closure of the Board of Adjustment. A -Se Mayor Williams requested the following changes to the agenda: SUBSTITUTE: C-119 Resolution No. 97-59 (total amount change) RFaq ACE: H-29 Purchase Orden Exceeding $29500 - (Correcting "Additions to Purchase Order, Increased Balance") Councilman Bannock requested Item B-1 be removed. There were no objections. • KENAI CITY COUNCIL MEETING MINUTES AUGUST 20, 1997 PAGE 12 • th 0 MOTION: Councilman Smalley MOVED for approval of the agenda as amended and Councilwoman Swarner SECONDED the motion. There were no objections. BO ORDERED. A-6. CONSENT AGENDA MOTION: Councilman Smalley MOVED to approve the consent agenda as presented and Councilman Bannock SECONDED the motion. There were no objections. SO ORDERED. ITEM X-: 80 F 11ULED PUBLIC COMMENT B-1. Bob Favretto - Potential Development of a Women's Prison Removed from agenda. IT REM Q PUBLIC BIEARINGS C-1. Ordinance No. 1755-97 - Increasing Estimated Revenues and Appropriations by $3,824 in the Taxiway Extension North Capital Project Fund. MOTION: Councilman Measles MOVED for adoption of Ordinance No. 1755-97 and Councilman Bookey SECONDED the motion. There were no public or council comments. VOTE: Smalley: Yes Williams: Yes Bookey: Yes Swarner: Yes Moore: Yes Measles: Yes Bannock: Yes MOTION PASSED UNANIMOUSLY. • KENAI CITY COUNCIL MEETING MINUTES AUGUST 20, 1997 PAGE 13 C-2. Ordinance No. 1756-97 - Increasing Estimated Revenues and Appropriations by $10,993,472 in the Capital Project Fund Entitled "Kenai ARFF Project." MOTION: Councilman Measles MOVED for adoption of Ordinance No. 1756-97 and Councilman Smalley SECONDED the motion. There were no public comments. City Manager Ross requested council set a special meeting at which this ordinance would be considered. Ross requested Monday, August 25 or Tuesday, August 26. Ross explained, the bids were opened and the low bid was Jansen Construction at $7.15 million; $1 million over the engineer's estimate. Jansen met with administration because they discovered errors in their bid, and based on documenting those errors, were allowed to withdraw their low bid. Ross continued, the next low bid was Alcan Construction at $7.87 million; $1.7 million over the engineer's estimate. He added, $1.3 million of the overage was in the main training building and the remainder mostly in the affluent building. $3.18 • million was estimated to build the main training building and the current low bid was $4.9 million, 40% over estimate. Ross noted, administration was not advised at any time the building had escalated costs, probably because the project was so expedited that building plans were received by the city at the same time they were mailed out to bidders, which probably meant the estimators didn't have them either. He continued, administration has requested from the engineer, Morrison Maierle, a written explanation of their rationale and justifications for the overage. When speaking with Jansen Construction, they were asked why they thought there was such a discrepancy in the bid for the main building and the engineer's estimate. Jansen listed building design and construction, multiple materials used (wood, steel, concrete) and audio-visual components (electrical and mechanical). Jansen did not mention weather, winter construction, or bidding environment. At this time, administration was submitting Alcan's bid amounts to FAA for their input. After knowing the percentage FAA will fund and their assessment of whether they feel the overages are acceptable, administration will prepare options for council to consider at the special meeting. Options would include award of the bid to Alcan to non -award. He explained, administration was not prepared to discuss options until knowing FAA's position in regard to the funding. Also, he was unable to explain, at this time, why the engineer's estimate was missed so broadly. Ross requested council to consider a special meeting for Tuesday, August 26, 1997. 0 KENAI CITY COUNCIL MEETING MINUTES • AUGUST 20, 1997 PAGE 14 Councilman Bookey stated he had a major concern about the overage and asked if there was any indication from FAA of the percentage they would fund. Ross stated no, but Finance Director Semmens and Airport Manager Ernst would be in contact with FAA in the morning. Ross added, they would ask FAA what their percentage of participation would be in the total project, as well as their participation in knowing the overages they would be funding. Ross noted, what FAA would be agreeable to fund would have a lot to do with council's decisions. Councilwoman Swarner asked if the needed information would be acquired by Tuesday. Ross answered, they hoped to have it by then. Councilman Moore asked, there was quite a process to get the FAA money channeled to the city, would it be another year to get the funding or are there other provisions to deal with this amount of overage. Ross stated he would not be able to answer that question at this time. Airport Manager Ernst stated, the allocation that the FAA had already funded for this fiscal year was set at $1.68 million. What FAA was proposing was that if this project was to the point of going to bid and awarding the bid, then at the end of their fiscal year (September 30), when all the entitlement funds throughout the United States are reviewed and those that are not being used can be turned into a discretionary fund, the city would have the capability, with its priority rating of 21 (throughout the • nation), to tap that fund to whatever amount. The amount would depend on what is leftover from unused AIP entitlement funds nationwide. He added, last year $25 million was leftover. He also noted, the city was 21 on the list, but because the project would have already been out to bid and hopefully awarded, the money could be channeled immediately after September 30. Ernst added, at this time FAA cannot give a hard number figure, other than what was already set aside ($1.68 million), plus the city's entitlements ($600,000 leftover from the taxiway project), plus the city's funds. Moore asked if the city is bidding a $10 million project without having the funds to pay for it. Ernst answered yes. Williams added, there was approximately $6.08 million in the pool now, the additional $4 million would come from the remaining FAA monies. Ernst explained, the September 30 number is to funnel any excess discretionary monies to the city. As soon as he receives the hard numbers the city finally decides on, those amounts would be included in next year's grant funds. The project is a seven -scheduled project, meaning it could be phased throughout the program. He added, they had hoped the phasing would coincide with the money allocation. Ross stated, all along, this had been a scheduled project based on FAA funding. The. City was aware of that and at no point did the city have all the funding for the project. It has always been contingent. Ross added, there was a possibility that after September 30, the wait for the scheduled money may not be needed and enough to cover the entire project may be received from the leftover entitlements (discussed earlier). FAA has given the city assurances all along, but they were looking at the worst -case scenario in the rest of the funding taking place in the new year. • KENAI CITY AUGUST 20, PAGE 15 COUNCIL MEETING MINUTES 1997 Ross added, what Administration would be discussing with FAA would be the new numbers, based on the overages, and the percentage of funding they will do with those numbers. Ross assured Moore, the project had always been scheduled, contingent on funding. C-2a. Motion to Postpone for Special Meeting Action C-2b. Schedule Special Meeting MOTION: Councilman Measles MOVED to postpone (action on Ordinance No. 1756-97) until next Tuesday (August 26, 1997). Councilwoman Swarner SECONDED the motion. There were no objections. SO ORDERED. Councilman Measles advised council he would be out of town on both August 25 and 26, 1997 and unable to attend the special meeting. C-3. Ordinance No. 1757-97 - Increasing Estimated Revenues and Appropriations by $1,237 in the General Fund for the Purchase of a i Playground Slide. MOTION: Councilman Bannock MOVED for adoption of Ordinance No. 1757-97 and Councilman Smalley SECONDED the motion. There were no public comments. Councilman Bannock explained, the Rotary funds for the slide were a portion of rose sale monies the club had raised. VOTE: Smalley: Yes Williams: Yes Bookey: Yes Swarner: Yes Moore: Yes Measles: Yes Bannock: Yes MOTION PASSED UNANIMOUSLY. C-4. Resolution No. 97-52 - Formally Accepting FY98 Municipal matching Grant Number 98/587-4-001 From the State of Alaska, Department of Administration in the Amount of $147,180.00 for a Water Quality and Quantity/ Development Program, and Accepting the Conditions of the Grant Agreement. • • KENAI CITY COUNCIL MEETING MINUTE3 AUGUST 20, 1997 PAGE 16 MOTION: Councilman Smalley MOVED for adoption of Resolution No. 97-52 and Councilman Measles SECONDED the motion. There were no public or council comments. VOTE: There were no objections. 80 ORDERED. C-5. Resolution No. 97-53 - Transferring $1,835 in the Mission Street Capital Projects Find for Engineering Services. MOTION: Councilman Measles MOVED for adoption of Resolution No. 97-53 and requested UNANIMOUS CONSENT. Councilman Smalley SECONDED the motion. 0 There were no public or council comments. VOTE.. There were no objections. SO ORDERED. C-6. Resolution No. 97-54 - Transferring $3,000 in the General Find Public Works Department for Professional Services. MOTION: - Councilman Bookey MOVED for adoption of Resolution No. 97-54 and Councilwoman Swarner SECONDED the motion. There were no public or council comments. VOTE: There were no objections. SO ORDERED, C-7. Resolution No. 97-55 - Transferring $3,307 in the Airport Land System Special revenue Pund for a Gas Main Extension. . KENAI CITY COUNCIL MEETING MINUTES . AUGUST 20, 1997 PAGE 17 MOTION: Councilman Measles MOVED for adoption of Resolution No. 97-55 and requested UNANIMOUS 'CONSENT. Councilman Smalley SECONDED the motion. There were no public or council comments. VOTE: There were no objections. 60 ORDERED. C.S. Resolution No. 97-56 - Awarding a Contract to North Star Contracting for the Project Entitled "Kenai Municipal Airport Runway and Taxiway Crack Sealing and Painting, 1997" for the Total Amount of $159,679.00 Which Includes the Basic Bid and Alternates A, B, and C. MOTION: Councilman Measles MOVED for adoption of Resolution No. 97-56 and Councilwoman •� Swarner SECONDED the motion. There were no public comments. Measles asked why the two bids were so far apart. Ross explained, upon review, administration believed Kodiak was way out of line and North Star within approximately $600 of what was budgeted. Measles stated, North Star was in line with the cost of the last time crack sealing was done. Ross added, North Star left the room happy with their bid and felt they could do the job at that amount. Williams stated, they're finding that the projects are going out on the street so late,- . and there are so many other projects out to bid, contractors are not willing to bid this late in the year. Ross stated, he thought Kodiak didn't estimate the quantities accurately. Ross added, referring back to the ARFF, based on the small margin for which the Jansen bid was withdrawn, he felt their was still a tight bidding environment. Swarner asked if North Star had done other contracting for the city. City Engineer La Shot answered, North Star is an Anchorage firm and are working on the Anchorage airport. VoTE: 0 There were no objections. 60 ORDERED. KENAI CITY COUNCIL MEETING MINUTES AUGUST 20, 1997 PAGE 18 C-9. Resolution No. 97-57 - Awarding the Bid for a Cargo Van for the Building Maintenance Department to Kenai Chrysler for a Total Amount of $18,821.00. MOTION: Councilman Bookey MOVED for adoption of Resolution No. 97-57 and Councilwoman Swarner SECONDED the motion. There were no public comments. Councilman Bannock requested to abstain from the vote on the resolution and Mayor Williams permitted the abstention. VOTE:: There were no objections. 80 ORDERED. C-10. Resolution No. 97-SS - Awarding a Contract to Randy's Glass for the Project Entitled, "Public Safety Building Overhead Door and Operator Replacement" for the Total Amount of $21,289.25 Which Includes the Basic Bid. MOTION: Councilman Smalley MOVED for approval of Resolution No. 97-58 and Councilman Bannock SECONDED the motion. There were no public comments. Councilman Bookey asked what was budgeted for the job and La Shot answered, $27,500. VOTE: There were no objections. 80 ORDERED. C-11. Resolution No. 97-59 - Awarding a Contract to Miller Sheetmetal for the Project Entitled, "Kenai Recreation Center Roof Top Air Handling/Heating Unit Replacement" for the Total Amount of $48,600.00, Which Includes the Basic Bid. MOTION: Councilwoman Swarner MOVED for approval of Resolution No. 97-59 and Councilman Smalley SECONDED the motion. There were no public comments. KENAI CITY COUNCIL MEETING MINUTES AUGUST 20, 1997 PAGE 19 MOTION TO AMEND: Councilwoman Swarner MOVED to amend with Substitute Resolution No. 97-59 and Councilman Smalley SECONDED the motion. There were no objections. SO ORDERED. Williams read the title of the substitute resolution, noting the amount of the award changed from $48,600 to $35,720. Ross explained, Miller Sheetmetal was the only bidder and in reviewing the bid, it was found the unit he bid was not the one maintenance had in mind and compatible with all the other units. The one maintenance wanted met the specifications and in discussing it with Miller, found the unit would do the same job and is a lower priced unit. Miller researched the matter and Miller and the building inspector compiled a plan for the air handler/heating unit and fAr less money. Moore asked, how the bid specifications went out. Ross answered, the lower -priced unit (indicated on the substitute resolution) met the bid specifications. VOTE.. There were no objections. BO ORDERED. C-12. Resolution No. 97-60 - Awarding a Contract to Russ's construction Company for the Project Entitled "Kenai Recreation Center Wood Gym Floor Repair/ Refinish" for the Total Amount of $19,127.00, Which Includes the Basic Bid. MOTION: Councilman Bannock MOVED for adoption of Resolution No. 97-60 and Councilman Smalley SECONDED the motion. There were no public comments. It was noted, the last time the floor was repaired was approximately five years ago. It was also explained the repair work entailed removing the flooring where "dead spots" occur. VOTE: There were no objections. 80 ORDERED. BREAK TAKEN: 8:00 P.M. RETURN TO ORDER: 8:1 S P.M. • KENAI CITY AUGUST 20, PAGE 20 IT.— FAM. D-l. COUNCIL MEETING MINUTES 1997 C�MI88ION/COM TIRE YtEPiDRTB Council on Aging Swarner reported the next meeting was scheduled for early in September. D-2. Airport Commission Measles reported the Commission met last week and took a to Project. He also reported the final draft of the tour of the taxiway Airport Master Plan would come back to the Commission at their next meeting and to council at its second and meeting in D-3. Harbor Commission Bookey reported the minutes of the August added, the Commission spent a considerable amount of e eluded in the packet. He Prices offered at the dock to fishers. He noted, there werscussing the fuel commercial fishers that were unhappycomments made by .; not competitive with the prices as they felt they the canneries. Bookey added, the Commission a decided oar and the prices over the winter to see if there was anything to do dif' eview, erently. Bookey also reported, the Commission had a lengthy discussion in regard to fishing concerns.. They agree with the council in their concerns council t continue in the direction they are moving. rns and want council to Swarner noted an incomplete sentence in the minutes and su reviewed prior to the Commission's acceptance of them. ggested they be D-4. Library Commission Moore reported the minutes of the last meeting were included in been previously discussed at council's Au the packet, but had gust 6 meeting. D-S. Parks & Recreation Commission Bannock reported the minutes of the Au He noted, the Commission discussed a newssi meeting the were included a the packet. from a local artist interested in doing the work aft alscemo re after a presentation Commission would take a tour of the cityPorted the beginning at 6:00 p.nz, Council was invited to accompanyday, August 28, 1997, the Commission. • • 0 KENAI CITY COUNCIL MEETING MINUTES AUGUST 20, 1997 PAGE 21 D4. Planning & Zoning Commission Smalley reported the minutes of the last meeting were not included in the packet. He reported, the Commission approved a plat for the Salamatof Center; approved a re - plat for Inlet Woods Subdivision; and, approved a conditional use permit for a bed and breakfast on South Forest Drive. Smalley also noted the Commission approved a landscaping plan for the ARFF, however some comments were they felt the city should set the example for landscaping and some were upset with the plan. Continuing, Smalley reported, the Commission first heard a motion that all landscaping of city properties be done by the Parks & Recreation Department. He pointed out, that was a budget item and suggested they encourage the city council to talk to city administration in regard to their concerns of landscaping plans. Smalley also noted, one commissioner stated she thought the plan was done in the proper manner as landscaping was very expensive and when put to bid, it is costly. When the city takes on the landscaping as part of the beautification program, it is an advantage. The Commissioner also noted she felt grass and natural vegetation was landscaping. Smalley added, the Commission suggested that in the future, site plans go before them prior to the project going to bid. D-7. Miscellaneous Commissions and Committees D-7a. Beautification Committee Swarner reported the minutes of the August 6 meeting were included in the packet. She added, the Committee would be touring local gardens. D-7b. Historic District Board Moore reported the Board met and had a quorum. They discussed the purpose and intent of the Board and spent a considerable amount of time discussing what authority the Board had. He added, the Board may ask Attorney Graves to attend a meeting to discuss the matter further. Moore also reported, the Board discussed asking council to revise the present ordinance, what the Board's relationship was to the Planning & Zoning Commission, and their membership problems. D-70. Challenger Board Bannock reported a meeting was held, although he was not able to attend it. He did refer to the information included in the packet which noted the $2.5 million included in the Senate budget for a science learning center in Kenai, Alaska (Alaska Challenger Center for Space, Science and Technology). He added, a Board of Governors meeting was scheduled for September 4, 1997. • KENAI CITY COUNCIL MEETING MINUTES AUGUST 209 1997 PAGE 22 Ross noted he read in the paper Challenger planned to break ground in June, 1998. He suggested several council members, members of the Challenger Board and the Public Works Department form a construction committee to review and draft RFP's for architectural services. When an architect is selected, the committee would work with the architect so there will be continual knowledge of the development of the Center. He added, the project will be relying on state, federal and charitable source funding and it has been represented by council that no General Fund monies would be used for the development of the Center. He added, he would like this project to take a slower approach in order to have a handle on the cost program and what is in the bid pac)cage prior to going to bid. Williams stated he thought this a good idea. He added, in the ARFF bid there are concerns about the high-tech package of the distance learning center equipment, etc. and that is similar to concerns about the Challenger project - both projects will cut new territory. He suggested, there may be room for sharing equipment in regard to the distance learning center. Williams revisited his prior suggestion that the $68,000 coming from the state (discussed at the August 6 meeting) be granted to the Challenger Center. In his is discussion with Ross, he was reminded of the city's match to the grant (approximately $30,000). He suggested eliciting from the Challenger Board an agreement to change the original agreement with the city to put up $65,000 as the supplement for the first year operating costs and substitute that for the $70,000 in state money and $30,000 in city match. If this is done, both would actually come out about $35,000 ahead. Williams requested council consider whether it would be legitimate and logical to rearrange the supplemental agreement for the first year of operation and give Challenger $100,000 and say that's the money the city promised. Ross stated, the $68,000 were capital matching grant funds and he didn't believe they could be used to donate or in support of operations and had to be used for a capital project. Semmens agreed. Ross added, he believed the funds needed to be used toward a capital project and couldn't be funneled through a non-profit. He added, he was not saying it couldn't be used for construction, etc., but had to be a part of a capital project. Williams stated, the capital project could be the building and the building would the city's. Ross, referred to Williams' comment the money would be used for operating costs for the first year. Williams stated, the agreement on the operating costs could be rearranged, moving the $100,000 off the $65,000 mark. He added, the building would be the city's anyway and putting the money into the capital project, it should work. Williams also noted, the project would be charged Davis -Bacon wages because federal funding was involved. is . KENAI CITY COUNCIL MEETING MINUTES AUGUST 20, 1997 PAGE 23 Williams requested council to consider his suggestion and pass on their comments to him. He added, the city and Challenger would save money and the Governor would not have an objection to it. Bannock asked if the city's share ($30,000) had to be used in the same capital project. Semmens answered, typically the grants are for a specific project, or at least a specific purpose. The Legislature would be looking to the council to tell them for what the money would be spent and the city would have to pledge in the process to spend the 30% match. Bannock asked if this year's $25,000 check was sent to Challenger. Semmens answered, yes. Ross stated council would be asked, during the goals and objectives session, for their thoughts concerning capital matching grant funds because a list has to be forwarded to Juneau by October r, what projects will be funded with the grant funds ($215,000) and city match ($90,0001). Ross added, that included the $68,000 (considered carry- over or balance funds). Measles asked Williams if he meant the city would take the $68,000 plus the city's matching portion, and apply it to the capital portion of the Challenger project (construction) and not fund the Challenger's first year of operation. Williams answered, yes. Williams added, they feel they've been a little slow at warming up to the private sector side of the donations due to the rearrangement of the 50 l (3)(c) structure in order to take foundation money. He added, there are a lot of people lining up to give money and in -kind services (Peninsula Clarion, $20,000 for public relations and advertising, Anchorage Daily News, AT&T). They feel they will be able to raise enough money to cover start-up costs. They want to further investigate an architectural rendering, pre -design, review of electronic packages, etc. with the $100,000 of which he's discussing. Moore asked what the city would be responsible for the second year. Williams answered, $30,000. Bannock added, the third year, the projection says "O." Ross asked, under the business plan, how much of the maintenance for the facility would the city be responsible. Bannock answered, the city would own the building and the maintenance. Williams requested a copy of the agreement with Challenger be included with the information for the goals and objectives session and have a copy of it forwarded to the Challenger Center. There was a question of whether there was an agreement and Bannock stated, the information was included in the business plan. Ross noted, he understood there was a resolution accepting the business plan. Williams noted, the agreement was restructured when it became apparent the city and the Challenger should separate internally. Ross added, and for budget and budget accountability. • KENAI CITY COUNCII. MEETING MINUTES AUGUST 20, 1997 PAGE 24 • 0 Bookey stated, there was no formal agreement between the Chalienger Board and the council like what has been done with the Visitors Center (for example)- Williams . answered, no, but council accepted the business plan. Measles stated, he was not aware of a formal agreement spelling out the responsibilities of the city, etc. Bannock answered, he believed it would be good to have at operation time or slightly before, a formal agreement processed which would delineate responsibilities. This would make it very easy for future councils to make decisions. Williams added, that was why they wanted some written document between the groups. Bannock added, that written document now goes to year three of operation. D-7d. Kenai Visitors & Convention Bureau Board Bookey reported the next meeting was scheduled for August 25. D-76% Alaska Municipal League Report No report. EM E-1. Regular Meeting of August 6, 1997. Approved by consent agenda. None. _ITEM.C#r: OLD BUSINESS None. r BM H: MW BVSINBS , H-1. Bills to be Paid, Bills to be Ratified • KENA1 CITY COUNCIL MEETING MINUTES AUGUST 20, 1997 PAGE 25 MOTION: Councilman Smalley MOVED to pay the bills and Councilman Measles SECONDED the motion. There were no objections. 60 ORDERED. H-2. Purchase Orden Exceeding $29500 MOTION: Councilman Smalley MOVED for approval of the purchase orders exceeding $2,500 and Councilman Bookey SECONDED the motion. There were no objections. SO ORDERED. H-3. Ordinance No. 1768-97 - Increasing Estimated Revenues and Appropriations by $7,000 in the General Fund for a Public Library Assistance Grant. Introduced by consent agenda. isH-4. Ordinance No. 1.769-97 - Increasing Estimated Revenues and Appropriations by a Net Amount of $7,145 in Three Senior Citizen Funds. Introduced by consent agenda. H-8. Discussion - Mayor's Invitation to Travel with Representatives of the Alaska State Legislature to Khabarovsk and Sakhalin. Mayor Williams referred to a letter of from Senate President Mike Miller and_.Speaker of the House Gail Phillips which was included in the packet. The letter invited Williams to travel to Khabarovsk and Sakhalin, September 27 through October 4, 1997. Discussion followed as to whether this would be an appropriate time for him to travel there or better to wait until later in order to promote the fire training facility. It was decided a letter be sent thanking them for the invitation, but not to travel there at this time. H-6. Discussion - City Maintenance Facility Williams stated he would like a new city maintenance facility be included in the goals and objectives work session discussions. He added, he wanted to build a new facility in 2000 as the present building is 30 years old and some of the city equipment is unable to fit into the building without removing portions of the equipment. 0 • KENA1 CITY COUNCIL MEETING MINUTES AUGUST 20, 1997 PAGE 26 Williams also stated, he planned to discuss the need of a new facility during the Deferred Maintenance Task Force hearing on August 25. He added, he would also be discussing the information and slides prepared earlier, i.e. city roads, bluff erosion, etc., but emphasizing the need for the maintenance facility and the city sewer system. He noted, deferred maintenance is not only maintaining existing facilities, but building new facilities as well. Williams went on to say, the city has done well at keeping buildings maintained, but the city would be remiss in not including the $5 million that will be needed for the upgrade of the Sewer Treatment Plant. He will base his discussion on the need for a new maintenance facility on the state's dependence that the city operates the airport and takes a large responsibility from their shoulders. He added, the maintenance of the airport is handled by large equipment which must be maintained and because the airport serves the needs of the city and the city is a service city, he believed a new maintenance facility fits into the deferred maintenance category. Swarner asked which streets he will be discussing and Williams answered, Wildwood Road was on one of the slides (which is a state road) and two of the slides were of the bluff erosion. Swarner stated she believed city parking lots needed a large amount of attention and indicated the Recreation Center parking lot repair was definitely deferred maintenance. She added, before the maintenance facility, she would want dipnet fishery facilitieslisted. Swarner noted she understood Williams' thought that the maintenance facility was a. deferred building and definitely needed, but didn't how that would fit into the state funding. Williams stated he was not sure they should address the state's responsibility in regard to the river and thought the city should ban dipnetting altogether. Swarner also noted, the heating -in city hall was a deferred maintenance. -Measles commented, the heating system in city hall was a problem when the building was built. Ross noted, the original letter from AML left deferred maintenance within communities wide open. He was contacted by the Borough the day the information was due in Juneau and was told this was supposed to be a state legislative committee and were wanting borough and municipalities to list what the state had not done to properly maintain their infrastructure in individual areas. Based on that, several of the communities and borough were going to present roads, infrastructure, etc. instead of their own AML request for needs of buildings. Since then, Williams had had his conversation with Mayor Navarre and felt it was up to the mayor and council to decide the issues they wanted to present. Williams added, he would be requesting funding be placed in the next budget to have plans for a maintenance facility readied for when money came available. Bookey stated he agreed, but was concerned that if they present something for deferred O KENAI CITY COUNCIL MEETING MINUTES AUGUST 20, 1997 PAGE 27 • • construction instead of deferred maintenance, the city may not be included in the . program. He added, he wouldn't have a problem as long as the city would be kept in the deferred maintenance program. Swarner asked the estimated cost of a new maintenance facility. Williams suggested $2 million and cost of architectural plans would be approximately $200,000. H-7. Discussion - ARFF Photo Series Williams reported he had been approached by Bill Grimm, a local photographer who wants to do a photographic series (at city expense) on the ARFF building, from bid opening through the actual opening of the building. Williams thought it would be a good idea. Smalley suggested there were city employees who could take photographs. Williams stated, he has often asked for photographs of various city projects, etc. and they are not available. Swarner stated she saw no need for the professional phoWgraphy. Williams stated he invited Grimm to attend the special meeting to make a presentation. CUTIVE 626-ROA - None Scheduled. ITEM I: ADMINISTRATIONE�ORTB I-1. Mayor Women's Ftison - Williams asked council their opinion of approaching the state to build a 200-bed women's prison in the city, noting the possibility of the Highland - facility being expanded would alleviate the need. Swarner asked if a specific site had been suggested. Williams answered no. Swarner asked if funding had been discussed. Williams answered, no, and suggested the city could build and lease a building, like it did with the court house. Williams added, he has discussed the possibility of building it at Wildwood with a city revenue bond. Attorney Graves stated, administration contacted Bond Counsel Minkner and were told that it would be possible to use revenue bonds, if certain criteria were met. Semmens added, the criteria included: (1) does the city have corporate power to build the facility within the city limits of Kenai? If yes, then (2) if it is decided to build the facility outside the city, would the city be usurping Borough powers? Semmens stated he was not aware of any. And (3) is the project for a public purpose to benefit the citizens of the city, since they would be putting up the bond? Williams suggested such a facility could be built further out Marathon Road. Measles suggested it may be advantageous to the state to have a women's facility and the • KENAI CITY COUNCIL MEETING MINUTE3 AUGUST 20, 1997 PAGE 28 is 0 Wildwood facility within the same general area. Swarner asked if the city furnished water and sewer to Wildwood. Answer was, only to their property line. Williams added, that was why he thought the state would put in money to build an airport maintenance facility because of the large amount of state people using the airport facility. Measles asked if the state had a standard design or have they indicated what it would cost to build a 200-bed facility and what amount in bonds would they be considering. Ross suggested $16-20 million. Smalley stated he would like to continue looking into the matter for discussion purposes. I-2. City Manager Golf Course - Ross reported he received a letter from Don Morgan, lessee of the golf course in regard to real property taxes. Ross explained, the city owns the buildings, greens, etc. and at the time of the lease, there was an understanding or misunderstanding about taxation of the real property. Ross believes that is a resolved issue. However, the lease has escalation clauses in it and in the last few years the Morgan's have paid $5,000 a year, per property, to lease the facility in which they have invested about $800,000 of their own money. Ross told Morgan he would be willing to discuss with council (at their next meeting), the equity involved, looking at their figures, and instead of requesting another rate increase (which would possibly put the golf course at a disadvantage to a neighboring course), look at the fact the city is using the facilities for its winter recreation program. With that, Ross added, he would prepare a recommendation that the lease rates are frozen at the present rate, since the city is using the facilities for its programs. (Over the tern of the lease, the rate was to escalate to $10,000 per property.) Ross explained, an amendment to the lease would be prepared for council consideration at the next regular meeting to freeze the lease rate at the existing rate, which would in turn be an acknowledgment the city is using the properties for other recreation purposes other than golf course. Multi -Use Skating Facility - Ross reported he met with Mike Navarre, Rick Baldwin and Nate Kiel in regard to the skating facility. They reviewed several sites, one he felt was unacceptable (across from (BOR)land that would be sold as lots along the golf course). Ross continued, Navarre feels very confident he can work out a deal with the Borough and Mental Health to acquire the land by the high school. The city would then sell its lots and try to dedicate that land and use the money to develop on that property where there is already infrastructure, parking lots, etc. KENAI CITY • AUGUST 20, PAGE 29 COUNCIL MEETING MINUTES 1997 Ross noted, the ball was in the user's court and they needed to come forward with a footprint to know the size of property needed, etc. He added, a purchase order will before council on September 3 for survey and platting costs of the (BOR)Iand in order to get it before the Borough at their October meeting. DEC Issues - Rose reported he met with the Commissioner and they walked the airport and discussed the problem of pulling piping and destroying the airport. The Commissioner met with staff and they subsequently talked with Ross. Ross added, he did not think the tank would be pulled this year, but will be next year under the new regulations (which city had proposed). Ross noted, the city was still very firmly on its position (and he felt DEC was leaning to the same), the piping would be left in place. Ross continued, they have submitted a proposal to do Phase II, sinking the walls deeper and getting more data. He did not anticipate any more than that taking place on that project this year. Ross also reported, when he came to work as city manager, there was a bill from DEC for several thousand dollars of which he did not agree. After analysis of the bill, the city felt DEC was entitled to $294 and offered that as a settlement and DEC accepted it. Bluff - Ross reported, they were still working on the bluff asphalt, picking it up as it migrates away from the toe. He added, they believe they have Fish & Game on board for the pilot project that Mr. Nelson developed and presented to the Harbor Commission (in concept). They are considering doing it in that location and will submit it as a grant request to Alaska Science & Technology. Ross added, he didn't know what the cost would be, but would bring it to council later this winter. He added, he also was not aware of what the city's match would be, however he suggested it could be $30,000-50,000. Dipnet Fishery - Ross reported he would meet with Dave Nelson of Fish & Game in regard to proposed language for a letter requesting an agenda change for the upcoming Fish Board meeting. He added, the letter would be restricted to the city's, argument that there was unforeseen consequences as a result of the dipnet boundary on this side of the river. The letter will request a discussion item be added to the agenda to change the boundary of the dipnet fishing area. Dairy Queen Lease - Ross reported the lessee of the Dairy Queen submitted a 60-day notice to quit the lease. Ross added, he had reviewed the file and would submit an ordinance for council's consideration to declare the property surplus with no public need and would give council the option of putting the property on the market through the winter. If there is no interest in purchase through March, council would then have the option of requesting proposals for the lease of the property. KENAI CITY • AUGUST 20, PAGE 30 COUNCIL MEETING MINUTES 1997 Ross added, he didn't think it was necessary to send the matter through Planning & Zoning. However, he suggested council could decide that during their discussion at the next council meeting. City Hell - Ross reported he had a meeting with two out-of-state contractors who wanted to talk to him about corrosion control for city hall. He declined their proposal. I-3. Attorney Attorney Graves reported he received a letter from Kathryn Gouyton of the Division of Retirement and Benefits for PERS who requested minutes of the council work session at which council rejected the applicants for the permanent position of city manager and set late fall (October) to begin the search again, and Rose's contract as Interim City Manager. Another letter was received from Gouyton indicating that if Ross was still city manager as of November 17, they would terminate his PERS benefits. Graves explained, he wrote back and sent the requested information as well as told Gouyton he considered her letter as an ultimatum that the city terminate Ross' • contract. He informed her the council would make the decision of whether to remove the city manager position from PERS, and not the state. Graves added, he also informed Gouyton that he would recommend to council they remove the city manager position from the PERS system which is allowable by state statute. Further, if council wanted to remove the position from the PERS system, he would prepare an ordinance for introduction at the next regular council meeting. The ordinance would state that council, by resolution would determine whether the city manager position would be in PERS. In that way, council could opt out by resolution and when a permanent city manager is hired, council could opt back in if that city manager chose to be in the PERS system. E Graves continued, he asked Gouyton to reconsider her decision and as yet, had not heard back from her. Moore stated, the city manager is not an employee. Graves explained, PERS considers the position an employee. He added, the city does not consider the city manager position as an employee as Ross has a professional services contract. Graves continued, the simple way to handle the matter is for the city to opt that position out. The PERS statute gives the city that authority and PERS cannot contest it. Smalley asked if there would be a money penalty for Ross if the council opted him out of PERS. Ross answered, if PERS attempted to make him an employee, he would consider it council's ten day notice of his resignation of the position. • KENA1 CITY COUNCIL MEETING MINUTES AUGUST 201 1997 PAGE 31 Smalley requested city administration draft an ordinance stating the council, system. resolution, will determine whether or not the city manager' I-4. City Clerk Clerk Reas reported the period for acceptance of councilcandidate entnominating The three petitions had closed. Three petitions were filed and found candidates for two council seats (for the October 7 election) were: H. Raymond Measles, Harold OHar Smalley, and Donald L. McCloud. I-8. Fla"ce Director No report. 1.6. ftblic Works Director No report. 1-7. Ah"It Manager No report. J. DIgCU 8g ION J-1. Citizens None. J-2. Conseil Rookey - No comments. 40 garasaer - Reminded council of the AML Board Meeting/Alaska Conference of Mayors dinner to be held at the Senior Center on Wednesday, August 27 and will begun at 6:00 p.m. Rosa explained, Moore -Questioned the progress oftthe � forward foot pit, He added, they were waiting for the interested group g and Mayor Navarre represented to .him that he has an understandingsdHe believes he can od relationship with Mental Health and the Borough land the city needs. At this time, develop a way for the city to pick up the piece of property ty it is the group's place to bring it forward. • 0 KENAI CITY COUNCIL MEETING MINUTES AUGUST 20, 1997 PAGE 32 Measles - No comments. Bannock - Stated he was impressed to see the enplanement report and noted the July, 1997 figure is the largest monthly figure since 1983. Smalley - Stated the Planning & Zoning Commission discussed the Land Use Table and council's request for a work session. He added, they appreciated council's comments and were looking forward to the work session. Smalley also reported he had been contacted by a constituent from Thompson Park concerning water/sewer hook-ups. He met with the individual and recommended she contact the city attorney and city manager on the issue and encouraged her then to come to council if she was not satisfied with their recommendations. Williams - Referred to Bannock's comments about the airport and added he didn't think the city was doing itself justice in iregard to the use of the airport because along with the person traveling, there are one or two people who come to the airport to see the traveler off or welcome them to Kenai. He estimated the amount of people using the airport is more like 230,000 a year. Airport Manager Ernst stated, he always uses 500,000. Williams stated he will be using the 230,000 figure when making his presentation to the Deferred Maintenance Task Force. TEM : ADJOURNMENT The meeting adjourned at approximately 9:35 p.m. Minutes transcribed and prepared by: Carol L. Freas, tity Clerk DAU