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HomeMy WebLinkAbout1993-07-07 Council Minutes• 6 KENAI CITY KENAI A. CALL TO ORDER COUNCIL - REGULAR MEETING JULY 7, 1993 7:00 P.M. CITY COUNCIL CHAMBERS 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 Aso 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) 1. Gretchen Graeff - Kenai Headstart Program. C. PUBLIC HEARINGS 1. Ordinance No. 1551-93 - Establishing Section 13.10.060 of the Kenai Municipal Code (Providing Sanitary Facilities for Individuals Camping on Private Property). 2. Resolution No. 93-54 - Transferring $4,000 in the General Fund for the City's Share of Alaska Municipal League Conference Costs. 3. Resolution No. 93-55 - Awarding a Contract for the Architect/Engineering Schematic Design and Design Development Phases on the Project Entitled "Kenai Animal Shelter" to Kluge and Associates for the Not -to - Exceed Amount of $23,500.00. D. COMMISIUMCOMMITTEE REPORTS 1. Council on Aging 2. Airport Commission 3. Harbor Commission 4. Library Commission -1- • • 5. Parks & Recreation Commission 6. Planning & zoning Commission 7. Miscellaneous Commissions and Committees m. XZNUTES 1. *Regular Meeting of June 16, 1993. 1. *6/28/93 J.Williams letter to Kenai Peninsula School Board. a. QLD AMMEN! H. NEW BOB NESS 1. Bills to be Paid, Bills to be Ratified 2. Purchase orders Exceeding $1,000 3. *Ordinance No. 1552 93 Increasing Estimated Revenues and Appropriations by $95,172 in the Capital Project Fund Entitled "Airport Safety/Security Gates." 4. *Ordinance No. 1353-93 - Decreasing Estimated Revenues and Appropriations by $13,975 in Two Senior Citizen Funds. 5. *Ordinance No. 1554-93 - Amending KMC 14.20.290 Entitled, "Appeals - Board of Adjustment." 6. *Ordinance No. 1555-93 - Increasing Estimated Revenues and Appropriations by $16,533 in the General Fund as a Result of Receiving Three Library Grants. 7. *Ordinance No. 1556-93 - Amending the Kenai Municipal Code by Enacting 23.40.140 and 23.40.150 and Amending 23.40.130 (Family Leave). 8. *Ordinance No. 1557-93 - Increasing Estimated Revenues and Appropriations by $521,627 in.the General Fund for Purchase of a Fire Department Aerial Device, 9. Set Hearing - Hoard of Adjv®tment - Appeal of Mary and Jack Keck. r2.. I • e 10. Approval - Petition to Vacate the Right -of -Way and Utility Easement, Government Lot 12, Section 1, T5N, R11W, S.M. 11. Discussion - Vehicles -for -Hire. 12. Discussion - Fence Between Carr's and Bernie Huss Memorial. Park. 13. Discussion - Kenai Spur - Water and Sewer Crossings. I. ADMI_N�,�T�RAT�,QN RLP�RTB 1. Mayor 2. City Manager 3. Attorney 4. City Clerk 5. Finance Director 6. Public Works Director 7. Airport Manager J. DI8C0881 1. Citizens (five minutes) 2. Council -3- KENAI CITY COUNCIL REGULAR MEETING JULY 7o 1993 7100 P.M. KENAI CITY COUNCIL CHAMBERS MAYOR JOHN J. WILLIAMS0 PRESIDING ITIRAL CALL TO ORDDR Mayor Williams called the meeting to order at approximately-7:04 P.m. in the council chambers in the Kenai City Hall Building. A-1. PLEDGE 07 ALLEGIAn Mayor Williams led those assembled in the Pledge of Allegiance. A-2 . RQ Roll was taken by the City Clerk. Presntwre: Williams, Bookey, Monfor, Measles, McComsey,Smalley. Absent was Swarner. •YJ A-5. AGENDA APPRSaV_AL Mayor Williams requested the following changes to the agenda: ADDS Capital Mayor's Report - Preliminary List, City of Kenai Capital Projects 1994. Information Item No. 4 - J.La Shot's memo to KK regarding Thompson Park Sea�erInterceptor Stste st&rStreets (Phase and Thompson Park Sewer, W y II). Councilman Smalley MOVED for approval of the agenda as amended and requested UNANIMOUS COMB . There were no objections. 00 ORDERED. A-6. CONSENT AaBND, There were no changes to the consent agenda. Councilman Smalley MOVED for approvaleoof heTconssent agenda as presented and requested UNANIMOUS e were no objections. So ORDERED. SCHEDULED pneLle ao EST g..1. Qrstchen Graeff - Kenai Headstart Program. Ms. Graeff reviewed the information regard the Headstart Program which was included in the packet. Graeff stated it appearnext. sthey will receive funding for their program either this year KENAI CITY COUNCIL MEETING MINUTES JULY 71 1993 PAGE 2 They are lacking a building to use to house their program. Graeff added they are applying for a federal grant which funds building renovation. Graeff stated she wanted to inform Council of their existence. Graeff stated she understands the City has no building space available at this time and she will keep in touch with Kim Howard with regard to space availability. Graeff added their program will serve pre-school children aged three to five years old. Williams stated this would be the,type of organization which he believes would fit into the Kenai Elementary School if the City purchases it from the Borough and rents it out to non-profit organizations. Williams suggested the health nurses could also be moved into the school as well. Williams added he believed it would be a possibility for the City to seek a grant from the State to place an elevator in the building and for the removal of asbestos, etc. Graeff stated that type of renovation work could 16 fit into the renovation funding which she spoke about. Williams added first the October vote will decide whether bonds will be sold to build a new school. If the vote decides the people want a new school, he will start a committee to discuss this issue more. ITEM CS_ PUBLIC HLARINOB C-1, Ordinance No. 1551-93 - Establishing Section 13.10.060 of the Kenai Municipal Code (Providing Sanitary Facilities for Individuals Camping on Private Property). MOTIONS Councilman Smalley MOVED for adoption of Ordinance No. 1551-93 and Councilman Bookey SECONDED the motion. Public Comment: W.L. Brown, a resident manager for a local recreational vehicle park. Brown stated he believed the ordinance, as written, will send the wrong signal to tourists who come to Kenai. Brown was concerned about the wording regarding "sanitary facilities." Brown stated recreational vehicles' tanks can hold several days of waste before needing to be dumped. • Brown added he believed the ordinance needs to recognize recreational vehicles as "self-contained." KENAI CITY COUNCIL MEETING MINUTES JULY 71 1993 PAGE 3 Smalley asked Graves if there is a recreational vehicle park with recreational vehicles parked there, would that be classified as adequate sanitary facilities. Graves stated the intent of the ordinance is to allow for a recreational vehicle with adequate sanitary facilities. Graves added the ordinance was meant to prohibit tenting on property where there is no sanitary facilities. Graves suggested an amendment to be added to paragraph (c) as follows: "A recreational vehicle, motor home, or camper with adequate self-contained sanitary facilities shall be considered to have adequate sanitary facilities for purposes of this ordinance." MOTION TO AMEND: Councilwoman Monfor MOVED to amend the motion with the addition of the change suggested by Attorney Graves. Councilman Smalley SECONDED the motion. Councilwoman Monfor requested UNANIMOUS CONSENT. There were no objections. 00 ORDERED. VOTE ON AMENDED MAIN MOTION: Williams: Yes Hookey: Yes Swarner: Absent Monfor: Yes Measles: Yes McComsey: Yes Smalley: Yes MOTION PASSED UNANIMOUSLY. C-2. Resolution No. 93-54 - Transferring $4,000 in the General Fund for the City's Share of Alaska Municipal League Conference Costs. MOTION: Councilman Monfor MOVED for approval of Resolution. No. 93-54 and requested UNANIMOUS CONSENT. Councilman Measles SECONDED the motion. There were no objections. SO ORDERED. C-3. Resolution No. 93-55 - Awarding a Contract for the Architect/Engineering Schematic Design and Design Development Phases on the Project Entitled "Kenai Animal Shelter" to Kluge and Associates for the Not -to - Exceed Amount of $23,500.00. • KENAI CITY COUNCIL MEETING MINUTES JULY 7, 1993 PAGE 4 MOTIONS Councilwoman Monfor MOVED for adoption of Resolution and requested VNANIIMOVS CONSENT. Councilman Measles No. 93--55 motion. BBCOND$D the Williams asked if the total cost of the project wi ascertained with the design schematics. 11 be the audience and stated the total cost of theidevelopmenKluge was h building will be included with that information. pment of the VOTN: There were no objections. 80 ORDERED, Z= AlCOMMI88=ON/CO anza u m D-1• Council on Aging Councilwoman Monfor reported for Councilwoman Swarner. stated the Council on Aging is Monfor Force to compile a memorandum to Council sug°estinng the Task additional items could be added to the congregate suggesting facility. As requested by the City Council, the building committee will report back to the City Council at their f August meeting. it first Kornelis stated the amount of money left from the ro not be known until the contract is settled by Easton ject will Associates. Monfor suggested the building committee & until the first September meeting before reportin could wait agreed. g Williams It was also reported the Council reviewed the budget. The Council meals and rides. They will date. again D-2 • Airport C0=113e1on on Aging, at their last meeting, suggested price increases for discuss the prices at a later Ernst reported the meeting minutes were included in t The next meeting is scheduled for July 8, 1993. he packet. KENAI CITY COUNCIL MEETING MINUTES JULY 7, 1993 PAGE 5 D-3 9 Harbor Commission Bookey reported there was no meeting in June. The next scheduled meeting is for July 12. Kornelis reported the ramp fee charges • are progressing well. They have collected an excess of $30.00 each day. There have been some seasonal passes purchased as well. D-4. Library Commission Monfor reported there is no July meeting scheduled. Monfor reported over 300 children have signed up for the summer reading program. Also, there were 597 people in the library on July 6. D-3. Parks it Recreation Commission McComsey reported Parks & Recreation crews are having a hard time ' keeping lawns and flowers watered due to the dry weather and the increase in flowers and gardens needing to be watered. McComsey added Parks & Recreation Director McGillivray handed -him a flyer describing a water wheel. The cost of the water wheel was discussed. McGillivray stated the water wheel can operate off of a fire hydrant and is very efficient. McGillivray requested Council review the information. McGillivray added he believed this type of equipment could be purchased with the Daubenspeck funds. McGillivray stated he believed there was approximately $70,000 in the Daubenspeck funds. Brown stated he believed this equipment could be purchased from that account. Brown added an ordinance would need to be passed to appropriate the money for this purchase. Williams stated he was concerned about the budget as the water wheel had not been included. McGillivray stated he was planning for next year. The wheel would not be received until spring. McGillivray reported new playground equipment is being placed at the Municipal Park and at the Fourth Street playground by the summer crews. Monfor complimented McGillivray and the crews for their work at the Municipal Park. Monfor stated she drove through and saw the park was being used by a number of people. McComsey requested an ordinance for the appropriation of funds to • purchase the water wheel. C7 • KENAI CITY COUNCIL MEETING MINUTES JULY 71 1993 PAGE 6 D-6. Planning i zoning Commission Smalley stated he was out of town and did not attend the meeting. Smalley added minutes of the meeting were included in the packet. Smalley reminded Council of a vacancy on the Commission. Williams referred to applicants for the position which were included in the packet. Williams recommended Charlie Pierce. There were no objections from Council. Clerk Freas will send the appropriate appointment letter. D-7. Miscellaneous Commissions and Committees Monfor reported there have been approximately 500 visitors a day at the Visitors Center this summer. Also a dedication program for the eagle display will be given on July 9 at the Visitors Center. ,ITEM -as L-1. Regular Meeting of June i6, 1993. Approved by consent agenda. $ Xt 91MO RORDENCE F-1. 6/28/93 J.Williams letter to Kenai Peninsula school Board. Approved by consent agenda. None. N-1. Bills to be Paid, Bills to be Ratified MOTION$ Councilman Smalley MOVED to pay the bills and Councilman Measles SECONDED the motion. There were no objections. 80 ORDERED. KENAI CITY COUNCIL MEETING MINUTES JULY 71 1993 PAGE 7 H-2. Purchase Orders Exceeding $i,000 MOTION: Councilman Measles MOVED to approve the purchase orders exceed $1,000 and Councilman Smalley 8EC0NDED the motion. Williams questioned the repainting of a police car for the Airport Manager's use. Brown stated it was included in the budget. Ernst stated another vehicle is needed because the half- time employee many times is using the truck when doing maintenance, etc. There are occasions when Ernst cannot respond to airport business because he does not have the truck. Ernst has been using his private vehicle for airport business also. - Ernst stated the half-time employee works year around, i.e. half time for airport and half time for streets. Ernst added the vehicle to be painted is a retired police car. H-3. Ordinance No. 3552-93 Increasing Estimated Revenues and Appropriations by $95,172 in the Capital Project Fund Entitled "Airport Safety/Security Gates.11 Approved by consent agenda. H-4. Ordinance No. 1553-93 - Decreasing Estimated Revenues and Appropriations by $13,975 in Two Senior Citizen Funds. Approved by consent agenda. H-5. Ordinance No. 1554-93 - Amending KMC 14.20.290 Entitled, "Appeals - Board of Adjustment." Approved by consent agenda. H-6. Ordinance No. 1555-93 - Increasing Estimated Revenues and Appropriations by $16,533 in the General Fund as a Result of Receiving Three Library Grants. Approved by consent agenda. 9-7. Ordinance No. 1556-93 - Amending the Kenai Municipal Code by Enacting 23.40.140 and 23.40.150 and Amending 23.40.130 (Family Leave). Approved by consent agenda. KENAI CITY COUNCIL MEETING MINUTES JULY 7, 1993 PAGE 8 R-8. Ordinance No. 1857-93 - Increasing Estimated Revenues and Appropriations by $521,627 in the General Fund for Purchase of a Fire Department Aerial Device. Approved by consent agenda. Set Rearing - Hoard of Adjustment - Appeal of Mary and Jack Keck. MOTION: Councilman Smalley MOVED to set the Board of Adjustment hearing for 7:00 p.m., July 21, 1993. There were no objections. SA ORDERED. N-10. Approval - Petition to Vacate the Right -of -Way and Utility Easement, Government Lot 12, Section 1, T5N, "R11W, S.M. MOTION: Councilman Smalley MOVED for approval of the vacation of the right-of-way utility easement, Government Lot 12, Section 1, T5N, R11W, S.M. and Councilman Bookey SECONDED the motion. There was no discussion. VOT$: Williams: Yes Bookey: Yes Swarner: Absent Monfor: Yes Measles: Yes McComsey: Yes Smalley: Yes MOTION PASSED UNANIMOUSLY. CR R-31. Discussion - Vehicles -for -Hire. Williams stated he requested this item be included on the agenda for discussion. Williams added the issue of the payment of the license fees and who should pay them has been decided. However, Williams stated he wanted to inform Council that he has discussed the matter with the Borough and has learned the Borough will not register cab drivers to collect sales tax. Williams stated the issue of sales tax is not resolved. The Borough is reluctant to expand their code in order to register the drivers. Williams • E KENAI CITY COUNCIL MEETING MINUTES JULY 7, 1993 PAGE 9 suggested Kenai's code be repealed which would eliminate problems that return every year and the Clerk's time involved in dealing with the re -licensing, R.L. Roper - Owner, Inlet Transportation. Roper stated he was prepared to pay for all the permits and collect sales tax from his drivers. Roper stated he believed there are enough regulations as they are. Roper stated he would like to have the rules and regulations enforced at the airport. Williams stated the problem is having the operator of the car paying sales tax to the Borough. The Borough does not seem interested in changing their ordinance in order that the sales tax can be collected from the drivers. Williams stated the driver is identified as a dependent contractor. The state statute has been amended in regard to workmen's compensation, etc. The cab company is not required to have workmen's compensation when the drivers are on contracts. (A copy of the amendment was included in the packet.) Nick Schulcraft - Driver for Alaska Cab Company. Schulcraft stated he begins his work $65 in debt each day. That is the amount he pays to the company for lease of the vehicle. Schulcraft stated he drives to Nikiski, Ninilchik, Homer, etc. Schulcraft asked how he would collect sales tax for all those different places when sometimes the fare starts in Kenai (5% sales tax) and ends in Homer (different sales tax) or visa versa. Monfor suggested a resolution be drafted to make a formal requelst to the Borough that they amend their code to allow cab drivers to register in order to collect sales tax. There were no objections from Council to bring forth a resolution in regard to cab drivers and sales tax. H-la. Discussion - Fence Between Carr's and Bernie Huss Memorial Park. Williams referred to the information Kornelis prepared with regard to the cost for placement of a fence between the Carr's property and the Bernie Huss Trail. Williams stated he also included the fence, as well as some improvements to the trail, on his preliminary capital improvement list. a KENAI CITY COUNCIL MEETING MINUTES JULY 7, 1993 PAGE 10 Monfor asked if Administration has discussed the matter with Carr's. Williams stated Carr's is a lessee and does not own the property. Monfor asked if Mr. Norville (owner of the property) has been contacted. Monfor suggested the cost could be split. Williams suggested a block wall could be built. McComsey stated a block wall would deteriorate quicker. Monfor suggested replanting the area with natural habitat. Smalley agreed. Measles stated anything placed there will be a problem with regard to vandalism, etc. Smalley encouraged discussions with Norville to see if he will work with the city and pay half the* cost. H-13. Discussion - Kenai Spur - Water and Sewer Crossings. A memorandum from Kornelis, included in the packet, explained that the State Department of Transportation has requested that design of water and/or sewer mains to cross the Spur Highway be completed and provided to them prior to their scheduled reconstruction work. The City must do the design work and pay for that construction work, but the design would be handled by the State as part of their project. Kornelis' memorandum stated his Department recommended a water and sewer main line crossing at Highbush Lane and Swires Road. They also recommended a main water line crossing at McCollum Drive. Kornelis' memorandum referred to additional information in the packet regarding the possible purchase of AutoCAD software which would enable in-house design of the crossings, as well as other future in-house projects. Kornelis requested direction from Council whether to proceed with the crossings and if the AutoCAD software should be purchased or design of the crossings should be hired out to consultants. Williams suggested more crossings are needed. Kornelis stated the work has already been bid. Measles asked if there is someone on staff that knows how to use the AutoCAD system. Kornelis stated the engineering technician has received training for its use and she will teach La Shot and himself how to use it. Kornelis added purchase of a plotter will not be necessary as the Borough and other consultants already 41 have that equipment and will allow the City to use it. Smalleyasked what funds will a 1 pay for the cost. Kornelis stated he would have to review the budget. Kornelis stated the purpose 0 • KENAI CITY COUNCIL MEETING MINUTES JULY 71 1993 PAGE 11 of the memorandum was to get Council's concurrence as to whether the crossings are needed and if yes, whether the design should be done in-house or hired out. Kornelis added the purchase would probably come from contingency. Measles was concerned whether there will be time for the work to be completed in-house. Kornelis stated he believed there would be no problem in getting the software quickly and the engineering technician believes there would not be a problem getting the work done in time. Measles again stated his concern there would not be enough time to pass an ordinance, etc. as Kornelis had stated. Kornelis stated a transfer of funds would be in the form of a resolution. The purchase order for purchase of the software would be included in the list of purchase orders over $1,000. These items would be included in the July 21 packet. They will have August and September in which to do the work. MOTION: Councilman Smalley MOVED that Public Works continue with the Swires, Highbush and McCollum and other crossings as recommended and develop a resolution to transfer funds to purchase the AutoCAD system as stated in the La Shot/Clark memorandum of July 21 1993 which was included in the packet. Councilman McComsey SECONDED the motion. Councilman Smalley requested MIANIMOUS CONSENT. There were no objections. 80 ORDERED. BREM: 8:17 P.M. BACK TO ORDER: 8:36 P.M. Mayor a. Preliminary Capital Improvement List - Williams referred to the list distributed prior to the meeting. Williams reviewed the list with Council. Williams stated his list costs were based on a 70-30% split with the State. The State to carry the 70% of the cost. 1. Animal Control Shelter - Anticipated cost is . approximately $400,000. City's share would be $120,000. 2. Fire Truck - Williams spoke with Representative Navarre. Navarre stated he felt excess funding from the KENAI CITY COUNCIL MEETING MINUTES • JULY 71 1993 PAGE 12 congregate housing project could be reap r theated for truck isthe $525,000. g Total cost purchase of the would cbe $157,500. The city's p 3. Highway Crossings - Williams believes this should be fully funded with federal highway funds. 4. Parks & Recreation Upgrades and New Construction - ectric Williams suggested restroom facilities and pertheebalint lfields. power be placed at the picnic faorethglJulys4dbooths, etc. The This area could then be used y other groups who could have the power area could also be used b.q. be billed for its u turned on by HEA and : sated u grade of dugouts and covered stands on Williams also sgfields.p illiams suggested there are three of the ballthe design work may blueprints available fromamas former stated desigthe rBernie Huss Trail is be done in -gig air and maintenance. in need of p Williams stated his list of projects' total costs st w would ould bee $1,475,000. However, the Cit Y's portion of $412,000. This amount includes all on hislist the more highway crossings. Williams added it appears capital money available next yea. The Legislature will have. lliams added he though the additional settlement monies. Legislature seems to want to spend the settlement monild es as $ey come in. Williams stated he believes the City million. Smalley stated he enjoys softball, but thought $15amountfor of time upgrades of dugouts, eWilliamsalot for the stated he is ashamed of the the fields are used* co ncession stand and would like to have coverednds so that he will not have to sit in the rain to watch the games. Williams stated he would like Council's additions and ideas. e Williams added he did not want to start g pthie list again. this year. Monfor asked if they woalSebt mberu1. Monfor suggested a Williams stated between now an p t camping park and its amenities should be place o camping; list. ten p ark is reopens P Smalley added if the municipal p upgrades of those restroom facilities will beneedeed. 9 the suggested an advertisement be placed in paper citizens for suggestions. onnel are b. smart OpeUiug - Williams stated and WillKMart iams sWilliams S the r P concerned about traffic control for g KENAI CITY COUNCIL MEETING MINUTES DULY 7, 199 3 PAGE 13 asked if the City has handled traffic control and if Police Administration couldopening. authorize overlicetimeChief Morris stated he has Department for the discussed the matter with the KMart manager. KMart aritis Making arrangements to have .personnel from Guardian iKenai Police Department o work traffic control in the parking will be doing traffic control on the streets Morris stated he has advised KMart not to use Guardian security on the streets. C. okha Relationship - Williams reported iVersityre roffAlaska available specifically to State the to teach Russian for developing business training programs citizens to be capitalists. Part of the training will take place on the Kenai Peninsula. The University ishpiand o have a center for Russian studies here for capitalism democratization. Williams requested the City authorize a through the auspices Committee Friendship Committee to be set up • Mayor's office. Williams added he did not would come to Council for funding. The Committee would be set up as an established recognized committee fort the theo ofpAlaskaoses f eta• finding grants through thetexchangesprogram. and to get involved in BookeY stated he believed it to be a good idea to maior ntain ,has Sister -Cities relationship. Smalley agreed. Nonn as it is not a commission. Williams added the grant monies long s accountingsystem. may have to be funneled haveuah roblemtwith that. Brown stated he did not P Williams stated the first group of people will number about 50There is a and will stay in the area for as nmonths. after they have concern as to how to get the visitors to goback been here for that long. Williams stated he will get in touch with a few of the committee members and set P 4. Work Session/Townsite Historic Zoning b ode - 1.or�his session for July 131 1993 at 7.00 p.m. wa Y will be a joint work session with the Townsite HistoricTask Force, Planning & Zoning Commission and Co s. Summer Work Crews - Williams commended the Parks work. Recreation Department and work crews for Williams received a number of compliments over the weekend on what a beautiful city Kenai is. • KENAI CITY COUNCIL MEETING MINUTES JULY 7, 1993 PAGE 14 1-3, City Manager No report. t-3. Attorney Graves requested authorization from Council to file an appeal of the HEA decision by Judge Link. Council concurred. _-4 . City Clerk Freas referred to her memorandum included in the packet delineating when ordinances for placement of propositions on the October ballot must be passed. No report. I-6. No report. I-7. No report. Finance Director Public Works Director Airport Manager Williams referred to Brown's memorandum included in the packet regarding the financial troubles of Lloyd's of London and its affect on the City of Kenai. Williams. asked Brown if the insurance payment will be made tomorrow to purchase the City's Public Officials and Law Enforcement insurance. Brown stated yes. Williams stated the Council has authorized Administration to proceed with the present broker. The broker will be purchasing coverage from Lloyd's of London. Williams stated the City has some concern in regard to Lloyd's financial problems. McComsey asked where else this type of insurance could be purchased. Graves stated in the AML-JIA discussion before Council, their representative stated they could get it out of London, not Lloyd's however. Graves added Cigna carriers this type of insurance. Measles stated if Lloyd's goes under, there will be many businesses throughout the world that will come to a standstill. Williams stated if that happens, the City will be liable. KENAI CITY COUNCIL MEETING MINUTES JULY 71 1993 PAGE 15 McComsey stated it does not matter who they go through, they will still be going through Lloyd's. Brown stated he did not believe that is a fair characterization. Good domestic companies have reserves of their own to handle losses and are making money. If the City deals with Lloyd's directly, it will not know what syndicate is handling it. Brown stated thishmattercannot withget themlist. last Brown reminded Council he discussed year and Lloyd's situation has deteriorated since then. Brown continued this is a situation where the only reason to buy insurance is to transfer the risk and Brown stated he did not believe the City will be doing that. The policies have to be good for twenty years. Measles stated Lloyd's is not deunWlbut some know until asyndicates claim is are insolvent. Measles added theyilnot filed. Bookey asked if the City had another broker to go through. Brown stated he has to deal with this kind of insurance through one broker for this insurance. Brown stated if he told the broker that he did not want certain types of insurance and if that is all he could get for him, he would go to another broker. Brown stated he does not have leeway tatedthis thistime theand only to deal with this broker. The broker hass insurance he can get. Brown stated he has talked with other brokers and they have told him there are other good domestic companies that handle this type of insurance. Williams stated the Council will be taking a leap of faith. Brown stated the discussion will be back again next year. IT� DISCU88IOM J-1. Citizens vSRBATIM Sandra vozar - My name is Sandra Vozar and my husband and I own the Toyon Villa here in the townsite of Kenai in Old Town and we also own the new RV park that's going in. However, um actually I have a handout that if you could pass it down everybody could look and see what it is that I'm talking about. What I'm concerned about is in 1986, we have a drainage ditch that's directly in front of the Toyon Villa. It's called the Municipal Reserve and you'll see this. This is the Toyon Villa KENAI CITY COUNCIL MEETING MINUTES JULY 7, 1993 PAGE 16 and this is the RV park and this is called the Municipal Reserve and there is a drainage ditch right here that all the streets in Kenai are built to drain into this municipal reserve and then the water goes down the municipal reserve into the Inlet. And what I am concerned about is in 1906 we had a bad rainfall and this is what happened to me at the Toyon Villa. A huge chunk of land...I lost a huge chunk of land at the Toyon Villa because of this drainage ditch. And, in the article in your ah, little packet here, you'll see this chunk of land and this is Richard Strong standing there just above the chunk of land, and he says in the article on the very next page, "we watched big chunks of the bluff caving in. It happened pretty fast. Strong explained the area is a natural drainage for Old Town and a lot of water came his way in during the rainy weather. Strong alerted the City of Kenai and plenty of equipment and workers showed up, unplugged the drain and got the water diverted back where it belonged in short order." There's a drainage ditch there that all the roads drain into. What concerns me is I've come to find out that this drainage ditch, the Municipal Reserve, has been sold by the City of Kenai. This particular lot was sold right where the drainage ditch is. Now this piece, this lot, is right, has a fantastic view of the whole Inlet and the Swarners and O'Connells purchased it. Mr. Swarner and Mr. O'Connell purchased it from the City of Kenai for $7,700 which is what it was appraised for. The reason that tract of land, the tract of land two tracts over from it is owned by Hakkinnen and he wants $100,000 for his. The reason that tract of land was sold for $7,700 is that Swarners and O'Connell had to give the City of Kenai an easement 20 feet, or ten feet on both sides. You'll see a copy of the Quit Claim Deed in your packet. You'll see a copy of the Grant of the Easement and they gave an easement on both sides of this drainage ditch so that the City could take care of any kind of drainage problems. Now this land, that was sold, was sold under Title 22 and that's in your packet also. There's a little number at the bottom of your page that says number seven. And, on it, it was explained to me at the City on page S. if the tract of land, this was land was leased by the way, by the Swarners and O'Connell from 1984, I • believe it was until they purchased in November of 192, last year. • r • KENAI CITY COUNCIL MEETING MINUTES JULY 7, 1993 PAGE 17 I an an adjoining propert y The current lessee obtains this right to negotiate a sale only after he has leased the land for a two-year period immediately preceding the sale or, the lessee has the satisfaction of the City Manager, completed development as detained in the development schedule which was incorporated into the lease agreement. But that was the section that was under, that was highlighted for me. This, I took this to an attorney. I could not go to an attorney locally because myself and O'Connell/Swarner use the same attorney, Rick Baldwin, so I had to go outside to an attorney. The attorney read the very section, he asked me to get a copy of the Code and I gave it to him. Then, the very next item (d) says, "if the tract of land proposed to be sold, or leased land without substantial improvements, then the tract of land may only be sold by outcry auction or by competitive sealed bids. WILLIAMS: Would you read that sentence again, please sentence (d). VOZAR: It's not, it's number 9, page 9 at the very bottom of your corner, (d). WILLIAMS: (d). Would you please read that again. VOZAR: "If the tract of land proposed to be sold is not leased land, or is leased land without substantial improvements, the tract of land may only be sold by outcry auction or by competitive sealed bids." This is a vacant piece of land with no substantial improvements on it. Now, we can go back to the first part, Schedule C and it says that, Page S. "if the tract of land proposed to be sold is leased land where the lease sets forth a development schedule..." KENAI CITY COUNCIL MEETING MINUTES JULY 71 1993 PAGE 18 If you'll look back on the lease, which is Page 10, there's a copy of the lease, there is a lease schedule. It says Lease Application and the items are highlighted. It's Page 11. The intent was to put on a Kenai Vision Center. The property to be used is for patient parking and the description of development was supposed to be asphalt on a gravel base. Time schedule for the proposed development is beginning date March 85, proposed completion September 85. 1992, no development had been done. None. So therefore, under the first section, it was told to me that the City was selling the property under, oh what is it, 22.05.040, section (c) there was no development done. The lease, from my understanding from the attorney that I talked to, was an invalid lease. They had not lived up to the lease agreement and then were allowed to purchase the land without making any improvements to it either without having to go to outcry auction. And you will see, there's a page here, up, it's marked number 15 at the bottom and at the top it has recording information, page 0258 or book, page 819. And this is the plan that was with the lease and it states the proposed vision center and the parking and that was what was recorded with the document in 84 that was supposed to be done and it wasn't done. Now I, I'm doing my RV park and I get a letter from Jack La Shot that says and it's page 16, it says, and it's dated April 26, 1993, "Mr. & Mrs. Vozar. The City has a very important drainage inlet to an outfall through the bluff located at the northerly property boundary of Tract A. Kenai Municipal Reserve, Sub. No. 1. If needed, city crews will work with you to ensure proper drainage into this structure." My question to the City is, is this an important drainage ditch or is this not an important drainage ditch. Was it in the, was it responsible for the City to sell this piece of property for seventy-seven hundred dollars and, God knows, everyone of you.and everybody in the City would have stood in line to buy that piece of property for seventy-seven hundred dollars just to sit a camper on it every year. This is the point where the Kenai Visitors Center, you go to the Visitors Center and where do they send you, to Beluga Point. • Right down there and the City sells the piece of property for seventy-seven hundred dollars. Now, if these people are allowed to put a parking lot on top of this piece of property and they • KENAI CITY COUNCIL MEETING MINUTES JULY 71 1993 PAGE 19 pave it and there's this huge drainage ditch going through it that's fifty feet over the bluff, can you imagine how much dirt the City's going to have to dig up and how much is it going to cost the City to take care of it and then is the Kenai Vision Center going to come back and say to the City, you replace the pavement that you've dug up and you've also disturbed our business because now we don't have a parking lot for our Vision Center. I feel that, and I would like the City to rescind this sale for the property and revert it back to Municipal Reserve and to leave it that way and I would like to see O'Connell and Swarner be given a letter from the City as to not to proceed with any improvements or drawings until this thing can be settled because if they're going to have some engineering plans to build this Vision Center, although it's been on the book since 84 as far as they're concerned, they could have already had some design work done and then they're going to come back to the City and say, 40 hey, we just spent $10,000 for an engineer to design this building and you're saying, after you sold me the land, and now I can't buy, I can't ah do my building. But it's something that seriously needs to be looked at. If, right now, we have not had, I've heard today, about watering the flowers and the grass here in the City of Kenai and it's and we've been busy watering. We have not had much rain in the last three weeks. I invite any of you to come down there and look at that drainage ditch and you will see in the last three weeks the water path that has cut through there. That has gone down there just from the water we've had in the last three weeks and we have disturbed a lot of dirt with our RV park. You can clearly see the water path. Those roads, every one of them was designed in Old Town to drain in that drainage ditch and if you're wanting to improve Old Town and do things with Old Town, this drainage ditch is important unless you're going to tear up all the streets and revert them in a different direction not to do it. When my bluff washed out and I had this big hole in here, because the City didn't clean out the drainage ditch, you know what the City told me? "You've got a problem Mrs. Vozar." In fact, when I had a fit, did they finally bring a backhoe over and some equipment and put some dirt in that hole and I had the check that I wrote to the City of Kenai to pay for the City's equipment to fill a portion of that hole. And I don't feel that it's fair and it jeopardizes my piece of property. I'm putting, this could have, this would have washed out by the Toyon Villa. My KENAI CITY COUNCIL MEETING MINUTES JULY ?, 1993 PAGE 20 building. It could wash out my RV park. It could wash out anything that's there. There's a lot of force of water that comes down those roads. And the sale, the way I read the City Code, is not correct and this sale should not have happened. It's not only, Mrs. Swarner is on the Council and even with that, there should have been a hands on thing that said, hold on a minute. Let's, let's advertise. Let's take it to the Council. Let's get some more input on this. That's all I have to say. WILLIAMS: Thank you very much Mrs. Vozar for bringing this to our attention. Are there any questions from Council? All right. What I'm gobig to do... SMALLEY: I was, I just was thinking, I didn't believe Mrs. Swarner was on the Council back in 84-85. WILLIAMS: That's probably very true. VOZAR: She was in 92 when this sale took place. WILLIAMS: What I'd like to do is direct this entire matter to the Administration, both the attorney's office and the engineer's office and ask that they come back to the Council with a report on this. Is that all right with Council. All right. We'll take a look at it and look into it... END OF DISCUSSION. J-2. Council Bookey - a. Stated he saw a water truck without a meter getting water from a hydrant and it was not a city vehicle. Kornelis stated he would investigate. b. Requested McGillivray to speak to the summer crew in regard to driving lawnmowers on city streets. c. Stated he had received a telephone call from Councilwoman Swarner. She requested him to ask about the fires used by tent campers on the Dragnet property. Are they allowed. Chief Burnett stated warming fires are allowable. No permit is needed for warming fires. Monfor - a. Monfor stated she received a telephone call from Councilwoman Swarner as well. She was concerned (and wanted to bring to Council and Administration's attention) about the amount of campers on the bluff by the congregate housing facility. 0 KENAI CITY COUNCIL MEETING MINUTES JULY 7, 1993 PAGE 21 b• Asked Kornelis of the status of front of the old street entrance to the placing the curb in stated he would invests ate Senior Center. work to be done b g • but believed it was on the list of stated it will be a barrier Construction this summer. c. Requested Administration to Kornelis leader who has come to council meetings contact the Hoy Scout to purchase flags to be gs and requested donations occasions. Monfor stated she hasbeen the city on special flags were not displayed on Fla een disappointed in that the were on July 5. Monfor stated she didnnot mid werend not on Jul 4 money to purchase flags, but suggestedmind donating the but giving the donation if they werthe city think twice about appropriate days. going to display them on the d• Monfor requested a grand opening. Freas will Ordernoneefor delivery. to for their e• Monfor complimented the Chamber, Committee, etc. for the work done for th Beautification celebration. a Fourth of July Measles- Nothing. MoComseY - Will not be at the next meet been any news in regard to the McLanes meeting. Asked if there has matter. Brown stated no. 8ma11ep - Asked for an update of the grass airport. Ernst reported it is in g ss contract on the seeded the area and is fertilizing, The contractor has g, etc. Niiliame - Suggested as a courtesy City Hall for a few days familiarize himself with so that Mrt Mt council stay clear of Kenai. anninen will have time to attend the work session Jul Smalley suggested Manninen Y 13 as well. The meeting adjourned at 9:35 p.m. Minutes transcribed and submitted by: APPROV@D 6Y COCiNCE pAZi Or WOBf