Loading...
HomeMy WebLinkAbout1992-07-01 Council MinutesAGENDA KENAI CITY COUNCIL REGULAR MEETING JULY 1, 1992 he CALL TO ORDER 1. Pledge of Allegiance 2. Roll Call 3. Agenda Approval 4. Consent Agenda *All items listed with an asterisk (*) are considered to be routine and non -controversial by the Council and will be approved by one motion. There will be no' separate discussion of.these items unless a Council Member so requests, in which case the item will be removed from the Consent Agenda and considered in its normal sequence on the agenda as part of the General Orders, Be BCBRDULRD PUBLIC dOT (10 Minutes) I. Jos Champion - City Building and Mechanical Codes and Inspections. 0 C. PUBLIC 8E11RI11A9 1. Ordinance No. 1504-92 - Amending the Kenai Municipal Code Amending the Procedure for Granting Conditional Use Permits, 2. Ordinance No. 1505-92 - Adding a New Chapter to the Municipal Code Establishing Accounting Provisions for the Congregate Mousing Facility, 3. Resolution No. 92-47 - Transferring $15,000 in the General Fund for Dust Control. 4. Resolution No. 92-48 - Donating Lots 15 & 16, Block 11, Carl E. Ahlstrom Subdivision to Central Peninsula Habitat for Humanity, Inc. for Construction of Housing. S. *1992 Liquor License Application - Kenai Merit inn Beverage Dispensary. D. COMIBBIMCMUTRR JRRROR201 1. Council on Aging 2. Airport Commission 3. Harbor Commission _1_ • to • s. 4. Library Commission 5. Parks & Recreation Commission 6. Planning & Zoning Commission 7. Miscellaneous Commissions and Committees 1. *Regular Meeting of June 17, 1992. 2. *Board of Adjustment Meeting of June 17, 1992. n. NEEW BOB=� HI88 1. Bills to be Paid, Bills to be Ratified 2. Purchase Orders Exceeding $1,000 3. *Ordinance No. 1506-92 - Increasing Estimated Revenues and Appropriations by $51983,000 in the Court Facility Capital Project Fund. 4. *Ordinance No. 1507-92 - Amending Kenai Municipal Code, Section 14.15.110, Entitled "Plan Adopted." 5. Discussion - work Session/Commissioner Mala, Health & social Services. 6. Discussion - Furnishing and installation of Chainlink Fencing/New Grace Drilling Property/Peninsula Fence Company - $18,387.00. 7. Approval - Construction Change Directive No. 23 - Kenai Congregate Housing Project/Gaston & Associates, inc./$10794.00. 8. Discussion - Construction Administration Fee, Extended services - Livingston-Slone/Kenai Congregate Housing. Project. i. AMZXZ#J=zgH REPOR 8 I. Mayor 2. City Manager 3. Attorney -2- 4. City Clerk S. Finance Director 6. Public Works Director 7« Airport Manager s. RZOGU N 1, Citizens (five minutes) 2. Council g • A�sT.O�tiR�ll[ s n� • I 1 0 RENAL CITY COUNCIL RESULM NEST'" 9"lly, It 199E RENAL COUNCIL CR�hNRB 7800 B.L. JOHN J. VZ&&Z p PAli9IDINQI �+ QALL TO ORDER Mayor Williams called the meeting to order at -approximately .7:Q4 p.m. in the Council Chambers in the.Kenai.City Hall Building. A -Ili PLEDGE OF ALL h I ,ANON Mayor Williams led those assembled in the Pledge of Allegiance. A..g , BOLL CALL Roll was taken by the City Clerk. Present were: Williams, Measles, Walker, McComsey and Swarner. Absent was Smalley and Monfor. MUM Mayor Mayor Williams requested the following changes to the agenda: ADD = 9-21 stove Fick - Fishhawk Fisheries - Lease of Dock Space 03. H-2, Purchase orders Over $1•000 - Alaska Roadbuildexs, AC5 for Crack Sealing-.$3,300. 8-2, Purchase Order$ Over $i,600 - Arctic Wire Rope & Supply - 2,070.00 (fencing for Municipal Park) 8-e, Additional Inioreatioa - Livingston -Slone. -.- Extended Services Proposed Costs, NOTION: Counoilman McComsey MOVED for approval -of the agenda as,aZennded and Councilwoman Swarner 6E0ONDED the notion. There were n. objections. 90 ORDERED. A,.6 � SONBE�LT _Aa�1DA .1Mayor.Williams requested the following change to the Consent Agenda: AIDbi C-5, =n Additional 03Mfttion - utter of None -objection from the Kenai Pehineula:,B*kbUgh regarding the New 1992 Liquor License for Kenai Merit 1,nn. RENAI CITY COUNCIL MEE'PING MINOTES DULY 1, 1992 PAGE 2 I *TXONs Councilman McComsey MOVED for approval of the Consent Agenda as amended and requested tlNIWimove CONSEn. There were no objections. 80 ORDERED. 2-1. Joe Champion - City Building and Mechanical Codes and Inspections. Absent. H-R. SteVo Fick - Fishhawk Fisheries, Lease of Dock Space #3. Lawrence Grahamson was present and spoke in Mr. Fick's absence. Grahamson stated that Fick had a question regarding the lease of Dock Space 03 from the City of Kenai. A•lease was negotiated and when Fick received the contract documents, he found that the contract included a base price plus a price per pound. Grahamson stated that during the negotiations of the lease by telephone between Fick and Kornelis, only the base price was discussed. Attorney Graves summarized what occurred. Graves stated that the spaces were advertised for bid. After the bid opening, there was one space still available. Kornelis contacted companies he believed might be interested in leasing the available space. Kornelis spoke to Fick. Fick offered $12,000. Graves stated that it appears Kornelis and Fick did not come to the same terms. Both thought they reached an agreement, but had understood different terms. Fick still wants to lease the space, but has a problem with the additional fee for the fish. If this concern can be resolved, the other issues can be easily handled. Question to the Council was whether they wanted to lease the space for $12,000 only. packet of information was distributed to Council at the beginning of the meeting. The items Fick was concerned about were his signing the lease as an individual; no second year Option; paying the $0.0375 per pound for fish after 320,000 pounds have been unloaded; and, the tote does not weigh 1,000 -pounds. • 0 • KENAI CITY COUNCIL MEETING MINUTES JULY 1, 1992 PAGE 3 Graham -son restated that the information Fick received initially did not include the poundage charge. Kornelis stated that he explained while they were in negotiations, that the final approval must come from the Council. Williams agreed. Kornelis stated that Fick does not have a problem now with signing as an individual or not having the second year option. Also, the tote weight is not a problem. The only thing Fick is concerned with at this time is the poundage charge. Swarner stated that the Council passed a resolution in June which awarded the lease to Fick and it included the poundage charge. Council stood by that resolution and made no change. C-10 Ordinance No. 3,504-92 - Amending the Kenai Municipal Code Amending the Procedure for Granting Conditional Use Permits, NOTION: Councilman Walker NO for adoption of Ordinance No. 1504-92 and Councilman Measles SECONDED the motion. There were no public or Council comments. VOTE: Measles: Yes McComsey: Yes Smalley: Absent Williams: Yes Walker: Yes Swarner: Yes Monfor: Absent MOTION NABORD WANIHOOPLY. C-Z. Ordinance No. 1505w92 Adding $ New Chapter to the Municipal Code Establishing Accounting Provisions for the Congregate Housing:Facility. Councilman Measles MOVED for adoption of Ordinance No. 1505-92 and Councilwoman Swarner BECONDED the motion. KENAI CITY COUNCIL MEETING MINUTES JULY 11 1992 PAGE 4 There were no public comments. Swarner stated that she recalled from former discussions, that the intent is for the money to be transferred to the General Fund where it can be used for senior programs when senior program funding is cut from other source$. Williams stated that he made comments that the money could be used for chairs, upholstery, etc. The seniors should not have to come back to Council for additional funding. Director Porter stated that would be if all the apartments are rented, as much ass $80,000 could roll over to the General Fund each year. Williams added that because of that availability of money, the Council wants a broader ability to control those funds. The Council is concerned that monies could be used without Council approval. Council will be able to approve the use of the funds at purchase order approval (H-2). Williams noted that a future Council can change the ordinance. Swarner stated she would like a method of tracking the funds. Brown stated that it would be done by an annual transfer and would be a separate item in the budget. It is very simple to keep it separated and tracked. Measles stated that he prefers they keep the ordinance as it appears. There's no need to track the money in the General Fund as the Council will keep track of monies used at the Senior Center. They are different cost centers. VOTZs Measles: Yes McComsey: Yes Smalley: Absent Williams: Yes Walker: Yes Swarner: Yes Monfor: Absent MOTION DABBED VIi XNXMOV8LY. C-3. Resolution No. 92-47 - Transferring $15,000 in the General Fund for Dust Control, MOTION$ Councilman McComsey MOVED for approval of Resolution No. 92-47 and Councilwoman Swarner SECONDED the motion. There were no public comments. Walker stated he thought Coundi1 chose not to put these funds in the budget at this time. Brighton stated this item was discussed at the last meeting. C� KENAI CITY COUNCIL MEETING MINUTES JULY 1, 1992 PAGE 5 Council directed Administration to prepare a.resolution so that the money would'be there for the dust control. Mccomsey added that Councilwoman Monfor requested that the resolution be done to wake sure there will be money for dust control next year, you s There were no objections to UN3WHOUB COUSNUT. 00.ORDERED* C-4, Resolution No. 92-49 - Donating Lots 15 & 16, Block Ile Carl E. Ahlstrom subdivision to Central Peninsula Habitat for Humanity, Inc. for Construction of Housing. r, C!� 4LC-I Councilwoman Swarner MOVED for approval of Resolution No. 92-48 and requested 0AN=1LOQs CoNsIM9 Councilman Measles ORCONDBD the motion. Public comments: Barry Nldri4go: Requested Council's support of the resolution. They have a family waiting to build a house and.the organization is ready to start building this year. Next year they plan on building another home. Williams stated that the assessed value of the property is well below: the $lo-000 limit placed by the resolution. The area is not well -suited for homes. Williams believes the building will be a benefit to the City to bring the property on the tax roils. Measles.asked about taxes owed. Administrative Assistant Howard stated that a letter was received front the Borough -stating -the, City paid taxes owed in 1971-�72. There were never any assessments on the property. 'Brown added that the Borough thinks the.City paid the taxes on foreclosure and the property was deeded to -the City. The Borough and City have no record. Howard added that the effective date of.the resolution,needs to be changed to July 17. Williamsremiinded Council that the organization will be carrying the mortgage• The.property has been sitting empty for twenty years. Measles asked how many other parcels fall into this category. Howard stated there are not many foreclosures that are. • KENAI CITY COUNCIL MEBTING MIM)TES JOLY 11 1992 PAGE 6 ten years old. Eldridge stated he researched the Borough records and found two in Ahlstrom Subdivision and one other on Beaver Loop Road. Measles stated that they were assured that the taxes would be paid including penalties and interest. Howard stated that she has a letter from the Borough stating there are no taxes owed. Measles asked how much in taxes would be owed if the property had been on the tax rolls. Brown stated he discussed the question with the Borough. They stated it would be difficult to answer. They could use an arbitrary date and compute taxes as if the property were privately owned. Brown stated that he did not think it was the intent to pay back taxes, but to pay the amount the Borough stated was owed. if it is Council's intention to charge for the taxes that would have been owed as if property had been privately owed, there will be a problem. It has been over ten years and the amount could be substantial. The resolution could be contradictory. That is the problem they have had with the assessments. Brown stated that he decided that was not the Council's intent. Brown stated that if he misunderstood, the item needs to be readdressed. Walker stated he does not support the resolution. Walker stated that he does not feel it is in the best interest of the City to donate land to private hands, even if the property is put on the tax rolls. Walker added that the City is giving approximately $13,000 in land away. It will be a number of years before the property comes back on the tax rolls. XONFOR ARRIVED AT 7 t 4 5 V. X 8 McComsey questioned that both lots will be donated by this resolution, but the organization is planning to build only one home. Brighton stated that the homes must be built within a certain amount of time. Howard stated it is in the last "resolved" and will appear in the quit claim deed as well. McComsey stated that he does not like giving property away. McComsey stated he believes it is an excellent program. However, he does not like giving City property away. Monfor stated that she drove through the area. The last building done in the area she guessed, was five -six years ago. Monfor believes that the subdivision will benefit from the program. • KENAI CITY COUNCIL MEETING MINUTES JULY 1, 1992 PAGE 7 Brighton suggested that this could be perceived as a Program. Final approval of the program can be made after homes are built. these vorst Measles: Yes Williams: Yes Monfor: Yes XOTIOX PABOND. McCComsey: No Walker: No Smalley: swarner: . Absent Yes C-s. 3992 Li quor Licoare Applioatioa - Kenai Merit Inn - Beverage Dispensary. Approved by Consent Agenda, 8RSUs 7153 P.M. BACR TO ORDRRs ssl0 P.no D-l. Counoil on Aging swarner reported that she toured the Congregate Housing The carpets, tile, and cupboards are bean a Projeot. g referred to Attorney Gravest memo in 1-3placed. swrner Of the housing project. regarding the management NOTtoN s Councilwoman swarner xovsD for Council to award a contract to the lowest bidder, Edwin and Margaret one-year annual amount of $11,400. Councilwoman Monfor gg a for the motion, anCONDED the Williams objected and stated that he Would management plan before award like to review the Williams asked Graves if the bidders ga�aeml$�scontract. Graves stated that some p in their'bds. ga"�generai resume material. Graves added that the duties of the specifications. Williams added that h®�twted in the with Administration and review.the man Quid like to sit down stated that there are concern$ with including items ment lan, Williams from the • KENAI CITY COUNCIL MSETIMG MINUTES DULY 1t 1992 PAGE 8 Landlord Tenant Act, etc. Graves stated that he and Brown reviewed the Act and they are ready to and intend to follow its guidelines. Williams stated that he has concerns about trust accounts. Also, where the rent will be paid, if there will be latitude for late payments for certain conditions, and who will the tenants talk to if there is a problem. Brighton stated they will talk to the same person they talk to at this time: Pat Porter. Tenants will pay their rent at City Hall, MOTION: Councilman Measles MOvBD to table the motion to the first meeting in August. Councilman McComsey 88CONDED the motion. MOTION NAB TABLED. Graves stated he does not know if he can hold the bidders to to their proposals until that time. Porter stated her concerns with the tabling until the first August meeting. The building is to be completed by August 25, she wanted to have the management in place prior to seniors moving into the building. Porter stated she is uncertain if the first meeting in August will allow enough time for those people who are to manage the property to move from where they are now living, etc. Porter requested Council table the motion to the July 15 meeting instead. Williams stated he had no problem with discussing the item at the July 15 meeting. He will review the plan. Williams stated he is not sure the management plan presented to the bidders is to his liking. Graves stated that it does not matter who is chosen as the manager, they will have to following the plan on which the Council decides. McComsey asked if the bid included a management plan. Graves answered no, that the bid package included a fairly specific list of duties. Measles asked what the intended date to start the contract was. Graves stated it was not specific, but as soon as possible. They do wish to have the management move in prior to occupancy of seniors. They will not be paying for management prior to the.. move -in date. Measles stated he would like to review the management plan as.. well. • KENAI CITY COUNCIL MEETING MINUTES JULY 1, 1992 PAGE 9 MOTION TO AMEND MOTION TO TABLE= Councilman Measles MOVED to amend his motion to table to the next regular council meeting and Councilman McComsey SECONDED. There were no objections to UUMMOVS CONg=20 8O ORDMOD. VOTE ON AMSli1DED XhZN XOTXON TO TABLE= Measles: Yes McComsey: Yes Smalley: Absent Williams: Yes Walker: No Swarner: No Monfor: Yes MOTION PABBED. ITEM TO BE HEARD JQLY ls, n92. D-2• Airport Commission � Minutes are in the packet. The next meeting will be in September. D-3• Harbor Commission There was no meeting. The next meeting will be July 6, 1992.. D-40 Library commission No meeting. DES• Parks A Reoroation Commission No meeting. Next meeting will be in August. Aga• Planning s Sowing Commission Minutes are included in the packet. Williams stated that he will attempt to have a suggested Old Town Task Force for the next meeting. D"7• Miscellaneous Commissions and Committees Monfor reminded Council of the parade on Saturday. Monfor also,. reported that she was the guest speaker at the. Rota where she discussed the All -America City applicatio anti awarmeetind. The Rotary were very enthusiastic. .Monfor stated that theCit wili..be incurring some exp®nser► to go'with.the award. Monfor Y • KENAI CITY COUNCIL MEETING MINUTES JULY 1, 1992 PAGE 10 suggested that logos, etc. be handed out and encourage businesses, etc. to use them. The award belongs to everyone. This is an ongoing award. Williams requested Council's approval to the following orders in regard to the All -America City award: purchase 1. Designs - All -America City sweatshirts. The sweatshirts will be worn by Task Force members for the parade and will be their's to keep. There will be extra sweatshirts for sale. Cost Of the sweatshirts - $526.009 2. Polar Screens - A parade banner - $545.000 3. Polar Screens - Magnetic signs with the All -America City logo and denoting it is the Mayor of Kenails car in parades - $125.00. MOTION, Councilman Measles MOVED for approval of the purchase orders and Councilwoman Monfor ONCONDRD the motion. There were n objections. 80 ORDHKMD, o Williams requested Councills choice and approval for the following signs to be placed throughout the City denoting the All -America city logo: 1. Logo to be added to the existing otWelcome to Kenai" sign, Sandblasted - $485 Painted - $185 COUNCIL APPROVBD TSH THD 8ION. 2. Logo for City Hall. Council decided on a decal.for the window. Clerk Freas fs to check on the price. 3. Plastic letters for above the car rentai area in the a :. Municipal Airport. Ke a i $892, installed. COUNCIL APPROVED, NOTING TO Von FONDS. I :� AZBOBT. • KENAI CITY CO[JNCIL MEETIATG MINUTES JVLY 1, 1992 PAGE 11 4. Two logos to be placed at ends of plastic letterts.above the car rental area in the Kenai Municipal Airport. Sandblasted - $425 x 2 = $850 Painted - $160 x 2 a $320 COUNCIL APPROVED Tab C08T8 TO HE PAID FV N . URPORT FUNDS. 5. Logo to be added to the flower bed at the Airport Triangle Park. Sandblasted - $560 Painted - $220 COUNCIL "PROVED SMOSLASTED. Discussion followed as to whether the cost of this sign could be taken from airport funds. ' Brown stated it could not be. Ernst added that there have been no airport funds used in the development of the Triangle Park. Brown was directed to find from where the monies could be used to purchase this sign. 6. 4x8 ft. sign at Bridge Access - $360.00 Williams is to bring back another price for a sandblasted sign. Ask Sherman to propose cost for mounting a shield between the poles (in the middle of the sign). 7. Labor and installation of signs (except the plastic signs in Airport). Cook Inlet Lighting - $575 APPROVED BY COUNCIL. McComsey suggested that logos be purchased to place on all City vehicles. Clerk Freas is to check on the costs. IXOTION i 'Councilman McComsey MOVED for .approval of ail of it and. Councilwoman Swarner SECONDED the motion. There were no objections. 8o oWERND. Hri h g ton asked if decals should be purchased for placement at the tourist center, Rec Center, etc. Monfor stated that a decal • n • KENAI CITY COUNCIL MEETING MINUTES JULY 1, 1992 PAGE 12 should be placed in the window of all City -owned buildings, Clerk Freas was requested to get cost proposals for a variety of sizes of decals. Brighton asked if the decals were to ordered regardless of the costs. A cost proposal is to be reviewed by Council. Williams reported that the All -America City Task Force has proposed to have a community celebration on September 6. The celebration would include a free picnic and incorporate the grand opening of the congregate housing project. Restaurants and service organizations in the area have been contacted and many have donated items toward the food. The only cost Williams believes will come to the City will be for the halibut. Williams added that the Governor will be invited, as well as Stevens, Murkowski, Young, State representatives and senator, and political candidates. The Old Carr's Mall will be used to house the celebration. Williams reviewed the list of donations already agreed to be brought by the different organizations. Williams reported that a softball tournament is also being planned. There were no objections to the plan. E-1. Regular Meeting of June 17, 1992. Approved by Consent Agenda. E-a. Hoard of AdiuetmeAt Meeting of June 17, 1992. Approved by Consent Agenda. i'; •:77 None. �{ �• W770-7177-4777-71 None. ..4 C� J • KENAI CITY COUNCIL MEETING MINUTES JULY 1, 1992 • PAGE 13 N-1• Bills to be Paid, Bills to be Ratified MOTIONS Councilman Measles MOVOD to pay the bills and Councilman MaComeey SECONDED the motion. There were no objections. 80 ORDERED. R-2. Purchase Orders Exceeding $18000 MOTION: Councilman Measles MOVED for approval of the purchase orders exceeding $i,000, including the two additions made tonight to Alaska Roadbuilders ($31300) and Arctic wire Rope & Supply. ($21070). Councilwoman Swarner SECONDED the motion. Measles requested UNANIMODS CONSENT. There were no objections. So ORDERED. N-3., Ordinance No. 1306-92 - Increasing Estimated Revenues and Appropriations by $5,983,000 in the Court Facility Capital Project Fund. Approved by Consent Agenda. N-4, ordinance No. 1507-92 - Amending Kenai Municipal Code, Section 14.15.110, Entitled "Plan Adopted." Approved by Consent Agenda, N-5. Discussion - Work Session/Commissioner Mala, Health & Social Services. There were no objections -to setting a work session for 7:00 p.m., July 15, 1992 with Commissioner Mala. Topic of discussion will be the services Health & Social Services have available in the area. Discussion - Furnishing and Installation of Chainlink Fencing/New Grace Drilling Property/Peninsula Fence.. Company - $18,387.00. A copy of the cost proposal from Peninsula Fence, the ordinance to reimburse Grace Drilling for moving expenses, and the rescission agreement between Grace Drilling and the City were KENAI CITY COUNCIL MEETING MINUTES JULY 11 1992 PAGE 14 included in the packet. Williams reported that he was contacted by Grace Drilling after they received a copy of the fencing proposal. Grace Drilling believes that they should not have to pay for the cost of the fencing. Williams stated he was not sure if Grace had a copy of the ordinance which allowed $40,000 to be paid to Grace Drilling for moving expenses and $30,000 for environmental assessment. Williams asked Brown if any of the $30,000 was left. Brown stated that the funding lapsed at midnight, June 30. There was about $15,000 not used for professional services. Williams asked Council what they wished to do. Williams added that the City will retain the fence that is on the property from which Grace moved. Williams stated that Peninsula Pence stated that to move the fence now on the property would be more costly than placing new fence. Walker asked if Grace Drilling has documented their costs. to Williams stated that the City authorized $40,000 for their relocation and they spent it as they wanted. Measles stated that the $40,000 included funds to move the fence. McComsey asked if Grace agreed to that payment. Answer was yes. McComsey stated that Grace Drilling should move their own fence or build a new one. No changes were made. There was no further discussion of the matter. R-7. Approval - Construction Change Directive No. 23 - Kenai Congregate Housing Project/Gaston & Associates, Inc./$1,794.00. MOTIONs Councilwoman Swarner MOVRD for approval of Construction Change Directive No. 23 and Councilwoman Monfor 88CONDED the motion. There were no objections. 80 ORDSRRD, R-e. Discussion - Construction Administration Fee, Extended. services - Livingston-Slone/Kenai Congregate Housing Project. Mr. Donald E. Slone of Livingston Slone, Inc. was present to • discuss the matter with Council. Slone referred to a letter included in the packet dated June 19, 1992 and a letter distributed to Council this evening, dated July 1, 1992. • • KENAI CITY COUNCIL MEETING MINUTES JULY 1, 1992 PAGE 15 Livingston ISlone, Inc. is requesting an extension of services at' additional.cost to the City. The letters describe the request for additional funding of $89,600 and how that amount was derived. Slone stated the $89#600 is based on agreements.set out in the letter of June 19 and reflects credits and discounts by Livingston Slone, Inc. of over $62,000. Discussion followed regarding the credits and discounts. Slone stated they included contract areas, city -requested items and architect responsibility gray areas, city gray areas, and gray areas between the City and Livingston Slone, Inc. Shone stated that they do not want to be placed in an adversarial position and want to continue their services to the structure. Swarner asked Kornelis if he has a list of the "gray areas." Kornelis answered that he has a list of the construction change orders and directives. Swarner added that she recognizes that some of the items the City requested, however, there are some that the City questions. She would like to see those on a list. McComsey asked Slone if he was saying that they bid an amount of money to do the project, and that money ran out on May 31. Slone answered yes. Slone added the $89,6000 is a compromise. The bidding technique was discussed. Slone stated they are requesting $59,000 for additional services and the balance is for extended services at a 50% discounted rate. Walker asked how many of the DVCR's are due to specific errors in design of the architect or engineering of the building. Slone stated that the time prior to May 31, none. After that, none also. Slone stated he has not reviewed them with Kornelis and confirmed this. They have identified those items that may be their responsibility and taken them off of the cost. . Walker stated that based on Slone's remarks, if they take out all of the errors, potentially, that they made, they missed their estimate on additional services or related services normally in these contracts, by at least 30%. If the estimate was missed by. $30,0000, it sounds like they want to reconstruct the whole contract. That would necessitate a re -bid of the project. Missing by 30% isa substantial amount of money. • KBAiAI CITY COUNCIL MEETING AfINOTSg DULY 1, 1992 PAGE 16 Slone stated that $59,000 were for changes that could not be anticipated by the contractor or the City. Slone added that, their responsibility is to protect the City through their enforcement of the contract documents. Slone stated that he tried to eliminate Council's questions about their services. The question is whether the Council wishes to go forward. Slone stated he believes it is in the City's best - interest to continue to the contract. Slone added that there have been 5% of change orders and 4.7% was what City asked for directly. 4.7% was what the City asked for directly. Discrepancies in the documents were about it. Slone stated.this reflects good administration of the contract. Williams requested that Council meet in executive session with Brown, Kornelis, Graves and Brighton to discuss this item which may have a financial bearing on the City because of Page 4, paragraph 5 of the memorandum from Livingston Slone to Kornelis. MOTIONt Councilman Walker MovBD to meet in executive session and Councilman McComsey SECONDED the motion. VOTES Measles: Yes Williams: Yes Monfor: No MOTION PASSED. McComsey: Yes Smalley: Absent, Walker: Yes Swarner: Yes EXECUTIVE SESSION BEGAN: 9:45 P.M. HACK TO ORDERt 10126 P.M. Williams stated that Council met in executive session and discussed the potential offer of Livingston Slone in regard to congregate housing. MOTIONS Councilman Measles MOVED to increase the contract amount by $89,500, provided that the amount is a final not -to -exceed amount • and that the City reserves the right to pursue any and all claims it deems necessary against the firm of Livingston Slone, Councilwoman Swarner SECONDED the motion. • 1C8NAI CITY COUNCIL MEETING MINUTE$ JUI,Y 1, 1992 PAGE 17 Slone was asked if he understood the motion. Slone believed so. That the City is increasing the contra Stated that did not agree to settle. Slone added that ct amount but a discount of approximately $63 00o. part of the $89,600 is settle the issue of whether to � This was attached to try to level of services. A$Y for services or not, or the Williams stated that it is the Councfl's desire to project. They are agreement to do that by increasi�ieish the $89,6o0, no more, no contingency, etc. Willi g the fee by are saying $89,600 is it and should litigation 8 added that they later date, the City reserves the right on any avenue at a pursue. The City also expects the job to be finished. for City to Slone asked if Council was wanting the disco offered. Williams stated absolutel ants that have been opportunity to discuss this further Administration an establish the mechanism they will have for of her ,., n to up if the City wants to make any changes. 'Coming should should further changes be ordered by the City that may that necessary, they will bring with them fee changes. However, City does not anticipate any more changes and so r, the offering $89,600 and that is it. The record and Councilare agree and if Council makes a change, the Council willConsi e other fees. Williams reiterated, "if Council decide eider change," s to make a Slone stated that if he understands, if there a re they are to bring them to Administration and Council, changes, providing the services. 1 before Walker asked if he understood correctly the last ofn any change directive or change order will carry withitmade that additional fees to Livingston Slone. the City of Kenai would be considered Any yto inhanaes Initiated by work. Any changes due to deli he scope of should be included in the $$9, 00errors, structural changes, etc. Slone stated that to the extent that the Citydoes Pay, they cannot guarantee they will do all the workoneedet to Williams stated that the ed®d. Williams feels that Livingston Slone has a 4S days of completion, to produce a good product. The has a moral responsibility City does not fear litigation, s • 6 KENAI CITY COUNCIL MEETING MINUTES JULY 1, 1992 PAGE 18 Slone stated that he wants to go ahead with the project, handwin- hand. walker asked Slone when the City can expect a decision on the Council's motion. Slone stated that as soon as he can discuss it with his engineers. Slone hopes an answer will be forthcoming by the and of next week. Walker asked if the answer would be to the City prior to the July 15, 1992 meeting. Slone stated they will tray to act quickly. ,ITEM_ ADMINIB WION PORTS I-3.0 Mayor 1. Phil Bryson - Williams reported that he had been contacted by the Borough and asked if Council would like to reappoint Phil Bryson to the Kenai Peninsula Borough Planning & Zoning Commission. MOTIONt Councilman Measles MOVED to reappoint Phil Bryson to the Kenai Peninsula Borough Planning & Zoning Commission. Councilman McComsey SECONDED the motion. 2. T-33 Airplane - Williams stated that there had been a telephone poll regarding the sandblasting and painting of the T- 33. Williams added that the funding put aside for the refurbishing of the plane was absorbed on June 30. It will require approximately $1,500 to finish the work. MOTIONt Councilman Walker MOVED that funds come from the miscellaneous account for costs for the completion of work on the T-33. VOTEt Measles: Yes Williams: Yes Monfor: Yes MOTION TABBED. 0 =-a. City Manager No report. McComsey: Yes Smalley: Absent Walker: Yes Swarner: No KENAI CITY COUNCIL MEETING MINUTES JULY 1, 1992 PAGE 19 I-3 . No report. Attorney 1-4. City Clerk Clerk Freas read into the record the findings of the tele poll of June 25, 1992 in regard to the sandblasting, rimeroan painting of the T-33 airplane, p and 1-5, Finance Director 1. =naurancO - Brown referred to an article included in the Packet regarding Lloyd's of London Insurance Com an is concerned with the statements made in the article t Y Brown of London is having financial hat Lloyd's mentioned this information in hisbpreviousrown m morandumstated that uhe n regarding the purchase of insurance for the upcoming year. orCouncil Council directed the City to purchase coverage through Last Frontier Insurance which included Lloyd's of London for of and public officials insurance. p icy .- Council to rescind their actions, but that he willhe s not asking very closely. He is not saying to change tit nge brokers, but a different carrier, g o Walker asked if it would not be the obligation of the insur broker to provide coverage through another carrier if Llo ante es fails. Graves stated if Lloydes fails and the Cityis not covered, the City would be liable. t file against the broker. However, the City could then Of Lloyd's Brown added that Last Frontier is aware Y problems and they are concerned also. Brown stated he felt it was Administrationes obligation to this to the Councills attention. Council directed Brown bring request Last Frontier to find different to that Last Frontier should be reviewing inforn ationaalreaddded have it available when needed. Brown stated the he thought tt City would have to push Last Frontier to look for another ght the carrier. Williams stated to Brown to tell them the Council another quote. 1 wants 2. Court Roue® Financing - Brown referred to his memorandum included in the packet which is a synopsis of the court house financing. Brown stated that are expenditures being committed to that should beereimbsomeur plans & specifications, title insurance Policy. olic • All thhees i.e. se KENAI CITY COUNCIL MEETING MINUTES JULY 1, 1992 PAGE 20 expenditures should come out of the proceeds of the debt of the grant. A package of information must be available for the investors. Brown will have an ordinance before Council at the next meeting. The investors will be bidding an interest rate on July 14. Determination of who and how much money will be needed should be made by July 15. 1-6. Pablic Works Dirootor Kornelis reviewed different upcoming pre -bid conferences and bid openings with Council. Kornelis added that the Set Net Court/Drive project is proceeding. The Sewer Treatment Plant project will soon be closed. Preliminary drawings for the Mission Street paving project are available. There will be a public hearing in approximately two weeks for public review. Congregate Housing Project is going along. The airport project is progressing smoothly. 1-7. Airport Manager No report. J-1. citizens M. Targonsky - Asked if a moratorium had been placed on development in the Townsite Historic Zone. Williams stated that no moratorium had been placed. A task force will be assigned at the July 15, 1992 meeting. s-8. council Walker - No report. Swarner a. Will not be in attendance at the next meeting. b. Asked what the Recreation Center's policy is on donations and is it the same for the City and the aerobic instructor. McGillivray stated that they have distributed three, or four punch cards a year to different organizations that have requested them. c. The AML Legislative Committee will be meeting in Kenai on July 30 and 31. A dinner has been scheduled for the evening of July 30 at the Swarner residence for the Committee members. Swarner invited Council to attend. �J 0 • KENAI CITY COUNCIL MEETING MINUTES JULY 10, 1992 PAGE 21 Monfor - No report. Measles - Requested to modify the janitorial contract at the. Kenai Visitor & Cultural Center for the summer. The :modification would be to have the Center cleaned seven days per week during July and August and have the Center cleaned two times per week. during the winter months. Brown stated that the contractor could be requested to do that. Graves added that the contractor would need to be contacted to change the time to perform, etc. Administrative Assistant Howard will contact the contractor. NoComsey - Referred to a request he made of Attorney Graves earlier in the day to call DEC regarding some items being buried on property within the City of Kenai. Graves stated that he called DEC and there were aware of some bags of catalytic material on the site. A DEC representative is supposed to go to the site and check. Williams - Informed Council that a new manufacturing plant is moving to the south end of Miller Loop Road. The company will be manufacturing dimensional lumber from glass and plastic waste. They will be employing approximately 40 people. Councilman McComsey left the meeting at 11:09 p.m. The meeting adjourned at 11:10 p.m. Minutes transcribed and submitted by: APPROVED by cou"CA DAIN