HomeMy WebLinkAbout1990-02-21 Council Minutes•
.
•
AGENDA
KENAI CITY COUNCIL - REGULAR MEETING
FEBRUARY 21, 1990 - 1%00 PM
A • CALL TO ORDER
1. Pledge of Allegiance
2. Roll Call
3. Agenda Approval
4. Consent Agenda
*All items listed with an asterisk (*) are
considered to be.routine and.non-controversial by
the Council and will be approved'by one mot16n..
There will be no separate discussion of these
items unless a Council member so requests, in
whi6h 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 SCHEDULED PUBLIC COMMENT (10 Minutes)
1. Tom Tomrdle, OEKOS - Fisheries Industry
Legislation
C. PUBLIC HEARINGS
1.
2.
3.
4.
5.
6.
7.
Be
9.
Ordinance 1344-89 - Increase Rev/Appns - Purchase
Land for Boat Launch - $1800,000
Ordinance 1355-90 - Accepting Delegated Authority
from Kenai Borough to Make Land Use Plan
Amendments to Kenai Comprehensive Plan
Ordinance 1356-90 - Increase Rev/Appas - Senior.
Citizens -Kenai Borough Special Revenue Fund - From
United Way - $2,571.24
Ordinance 1357-90 - Increase'Rev/Appns - Senior
Day Care Special Revenue Fund - State Grant -
$4,644
Ordinance 13 58-90 -- Increase Rev/Appns ' - Senior.
Center Dining Room Expansion - $296,000
a. Approval of Kluge Design/Inspection Contract
Resolution 90-06 - Kenai Caucus Capital
improvement List
Renewal of Liquor License -
Mr. D' s
Rainbow Bar & Grill
*Renewal of Liquor License -
Larry's Club
Kenai Country Liquor
BPOE Elks Lodge #2425
Renewal of Liquor License -
Katmai Hotel Restaurant & Lounge
The Rig Bar
D. COMMISSION/COMMITTEE REPORTS
1. Council on Aging
2. Airport Commission
3. Economic Development Commission
4. Harbor Commission
S. Library Commission
6. Parks & Recreation Commission
7. Planning & Zoning Commission
8. Misc, Commissions/Committee'
E. MINUTES
1. *Regular Meeting, Feb. 7, 1990
F. CORRESPONDENCE
1. *Rep. Young - Impact of Budget Cuts on EDD
2. *EDD Officers
G. OLD BUSINESS
H. NEW BUSINESS
I. Bills to be Paid, Bills to be Ratified
2. Requisitions Exceeding $1,000
3. *Ordinance 1359-90 - Amend Revenue Estimates in
Capital Projects Funds — Expenditure of 1985
Legislative Road Grant
4. *Games of Chance & Skill -
Kenai Peninsula Builders Assoc.
5. *Games of Chance & Skill -
FOE Auxiliary, Aerie #3525
6. *Games.of.Chance & Skill -
FOE #3525
7. *Games of Chance & - Skill. - -
Kenai.Elks Lodge.#2425
8. *Games of Chance & Skill -
AARP #745.
9. Approval - Sublease of Space - Rick Baldwin GM
10. Approval - Lease Application - Eiehholtz & Pitts,
Kenai Airport Fuel Service, Inc. - FBO S/D
11. Discussion - Regional.Citisens Advisory Committee
for.Cook Inlet
12. Discussion - Kenai Peninsula Caucus - Membership
13. Discussion — Plaque for City Hall Flag
I. ADMINISTRATION REPORTS
1. Mayor
2. City Manager
3. Attorney ., .
4. City Clerk
5. Finance Director
6. Public Works Director
7, Airport Manager
J. DISCUSSION
1. Citizens
2. Council
K. ADJOURNMENT
•
6
•
KENAI CITY COUNCIL - REGULAR MEETING MINUTES
FxSRUARY 21, 1990
KE1A .CITY HALL.
MAYOR- JOHN 'J.. WILLIAMS. PRESIDING
A. CALL -TO 'ORDLR<
A-1 Pledge of Allegiance
A-2 Roll Call
Present: Kevin Walker, John Williams, Chris Aonfor,
" Marj O'Reilly,.Hal Smalley, Linda Swarner
- - -Absent: Ray Measles (excused).
A-3 Agenda Approval
Mayor Williams spoke.
i a. Item C-6 - Move to C-la, item C-1 will be C-lb.
b. Item C-7 - Add to the Consent Agenda, all taxes
have been satisfied. Item C-9 will remain off the
Consent Agenda.
C. Add item H-14 - Games of Chance & Skill, Kenaitze
Indian Tribe - distributed this date.
d. Add as item 1-3, the Governor's budget and news
clipping relating to the budget, distributed this
date.
e. Add as.item I-3, letter to Atty. Rogers from
Alaska Atty. General. This will need concurrence
of Council.
f. Add as item H-15, letter from Lobbyist A. Reed.
g. Add as item I-3, letter from U.S. Dept. of
Commerce regarding EDA grant application.
. , MOTIflN:
Councilman Smalley moved to approve -the agenda. as
amended.
Motion passed by unans.mous consent.
A-4 Consent Agenda
NOTION
Councilwoman O'Reilly moved, seconded by Councilman
Smalley, to approve the Consent Agenda as amended.
Notion passed by unanimous consent.
B . SCHEDULED PUBLIC CONlMM
B-1 Tom Tamrdle, OEKOS - Fisheries -Industry Legislation
Mr. Tomrdle was not in attendance.
C. PUBLIC HEARINGS
C-la Res. 90-06 - Kenai Caucus Capital Improvement List
NOTION;
•
KENAI CITY COUNCIL
FEBRUARY 21, 1990
PAGE 2
Councilwoman Monformoved, seconded by Councilman
Smalley, to approve the resolution.
There was no public comment.
Mayor Williams. The Kenai Caucus will meet March 2.
At the last meeting we were trying to decide how best
to use the railbelt energy funds. Would it be better
to have all communities lobby or the Kenai Caucus get a
list and lobby on the Borough level by Borough people.
$7 Million+ is our share. They decided to break down
as listed. Cooper Landing - I discussed this with Rep.
Navarre. He suggested there may be money for this
already. If so, this money would be reallocated. This
is preliminary, it may be amended. if Council
approves, I will talk to the Kenai Caucus. This may be
the outer limits of our Capital Improvement money.
Councilman Smalley. The boat launch - that does not
include Dingall/Johnson money? City Manager Brighton.
No, I was contacted by Soldotna Manager Underkofler.
This meets with Anchorage & Fairbanks approval. Now
they want the Kenai Borough approval. Mat Su has not
agreed yet. Their complaint is lack of major funding
on the intertie. Mr. Underkofler asked that they be
economic development projects. On the basis of the
capital improvement list, we felt this was the way to
break it down. Mr. Underkofler was worried about $1.1
Million for roads, it may not comply with economic
development. But the Legislature has put large amounts
of money out for summer for economic development. This
is for Council consideration. It is not recommended by
Administration. This was for it to be broken down on a
per capita basis. This is the best way.
VOTE:
Councilwoman Monfor. We need to remember we do not
know if they will release the money to us. City
Manager Brighton. This is primarily a hedge to protect
a major amount of funds being distributed outside of
the railbelt.
Mayor Williams. This Railbelt Energy Fund has been
rolling around for some time now. There have been many
meetings. There is no money for Seward, there is $10
Million allotted to Seward fora. transfer line from
Lawing to Seward. If we support that, that is enough.
Motion passed by unanimous consent.
GENERAL DISCUSSION:
Mayor Williams. We will now review C-lb and C-5. We
will approve by ordinance if we so choose. But it
should be on record that expenditures of these funds is
not being authorized at this time. In the event funds
are authorized by the Legislature we can resume our
package. If not, we can go ahead and authorize
expenditures prior to construction.
C-lb Ord-. 1344-89 - increase Rev/Appns - Purchase Land for
Boat Launch - $180,000
MOTION:
Councilwoman Monfor moved, seconded by Councilwoman
O'Reilly, to. -adopt the ordinance.
RENAL CITY COUNCIL
FEHRUARY 210P 1990
PAGE 3
PUBLIC COMM:
a) Chris Garcia, Box 203, Kenai. I spoke at the last
meeting. I have not changed my mind. I think the
property is a bargain and hope you unanimously
vote for it.
Councilwoman Monfor. I am excited about it. I have
not heard any negative comments. If we don't get
permits we don't get the land. With testimony from the
public at the last meeting II call it our Bicentennial
Boat Launch) we are going to keep going. Tt is great
for the people. There is no better way for the City to
spend money.
_ Councilwoman Swarner. After Mayor Williams' statement
regarding appropriations, should this be amended?
:Finance Director Brown. Regarding spending money, that
would have to go to Council if over $1,000. It could
not be done without Council approval.
Mayor Williams. We received a letter from Gary Foster
in support of the ramp. Cunningham Pk. is a bad
situation. In 1989 the Kenai River had 4 world record
fish. This points to Kenai for future trips. We have
to provide facilities for them.
Councilman walker.. I spoke on this before. I am for
it. Mr. Foster brought up good concerns. If we could
alleviate the heavy traffic in the lower river, it
would make our fishermen happy.
Councilwoman O'Reilly. I am in favor of this. The
true value of the land lies between the 2 numbers. The
use makes it a bargain.
Councilman Smalley. I agree. I was concerned
:.:
regarding the price. Economic Development of the City
will -be a benefit to the City. I support the ramp
somewhere. It is a step in the right direction.
i
Motion passed unanimously by roll call vote.
F
C-2 Ord. 1355-90 - Accepting Delegated Authority from Kenai
Borough to Make Land Use Plan Ameaents to Kenai
Comprehensive. Plan
MOTION:
Councilman Walker moved, seconded by Councilwoman
Monfor, to adopt the ordinance.
There was no public conment.
City Manager Brighton. It is necessary that the
Borough approve a similar ordinance to transfer
authority.
Motion passed unanimously by roll call vote.
C-3 Ord. 1356-90 - Increase Rev/Appns Senior
Citizens -Kenai Borough Special Revenue Fund - From
United Way - $20571.24
�- MOTION:
Councilman Smalley moved, seconded by Councilwoman
Swarner, to adopt the ordinance.
ai
KENAI CITY COUNCIL.
FEBitUAR. 210 19'90.
PAGB , 4_Y:
There was no public comment.
Motion passed unanimously by roll
C-4 Ord. 130-90 - Increase Rev/Appus
Special Revenue Fund - State Grant
NOTION:
call vote.
- Senior Day Care
$4,644
councilwoman Monfor moved, seconded by Councilwoman
Swarner, to adopt the ordinance.
There was no public comment.
Motion passed unanimously by roll call vote.
C-5 Ord. 1358-90 - Increase Rev/Appns - Senior Center
Dining Room Expansion - $296,000
a. Approval of Kluge Design/Inspection Contract
MOTION:
Councilwoman Monfor moved, seconded by Councilman
Smalley, to adopt the ordinance.
PUBLIC COMMENT:
a. Betty Warren, Box 116, Kenai, I am Vice President
of Kenai Senior Connection, the fund raising part
of the Kenai Senior Center. You have a letter
signed by Glenn Jackson of the Senior Connection.
$14,000 from the Senior Connection is to be
applied to the cost of construction of the dining
room addition. This "strips the gears" of the
Senior Connection, but we will start again next
summer. Thank you for the City of Kenai support
in the last 18 years.
b. Joanna Hollier, Box 366, Kenai. I am President of
the Council on Aging. I encourage a positive vote
on the expansion.
c. Clarence Ladd, Kenai. I have 5-6 pages of
signatures here this date. I came here in Nov.
and Dec. asking Council to work this into their
budget. Regarding the plans, a group of us feel
the plan looks beautiful. One thing regarding
safety. The fire exits are good. The new ones
_ will be in front over the bluff. I talked to the
Fire Marshall and the Building Inspector. To get
people out of there would be difficult over the
bluff. Could one be put on the north side where
an ambulance could go? I did not put the petition
in the packet because we had another meeting since
Friday (packet day).
d. Martha Bethe, Kenai. I lived in Cooper Landing 10
years. When I moved, I chose Kenai because of the
Senior Center activities. We need the expansion.
Last summer they were putting tables in the entry
way.
e. Gordon Levy, resident of Old Town, Kenai. I have
depended on the Senior Center for the last few
years for meals on wheels. This is very important
because of my diet. They are preparing for people
_ meeting there and preparing for meals on wheels
also.. They do not have space for both at the same
time. I have been an engineer for many years.
CAI CITY COUNCIL
FEBRUARY 21, 1990
PAGE 5
Space prevents &.better job -being done. They need.
the space.
MOTION, Amendment:
Councilwoman O'Reilly moved, seconded by Councilwoman
Swarner, for City funding of the project contingent on
State funding of Congregate Housing.
Councilwoman O'Reilly. I am in favor of the expansion
and Congregate Housing. I appreciate what the Center
does for seniors. Congregate Housing and the dining
room expansion go together. The dining room expansion
was to be a sign of support of Congregate Housing.
This would send the same message.
.. Councilwoman Monfor. If we don't get Congregate
r Housing, we would not build the dining room?
Councilwoman O'Reilly. No, it would come up again.
Councilwoman Monfor. There is no money for dining room
expansion in Congregate Housing, do you realize that?
Councilwoman O'Reilly. Yes, the City would do•the
diningroom the State would do Congregate Housing.
I:-
Councilwoman Monfor. Mayor Williams says we would not
appropriate money till we hear from Juneau. I want to
commit this tonight. Councilwoman Swarner. I think we
should wait on the extension till we find out what the
Legislature will do. Councilwoman Monfor. We will not
appropriate money till the Legislature is done.
Councilwoman Swarner. If you build both of them, you
would get a utter price, use it as an added alternate.
I am uncomfortable with the price.
Councilman Smalley. I have the same understanding that
It would be held till May for appropriation.
City Manager Brighton. Technically we are
appropriating money. it is available. It would then
be Council's job to decide when the money would be
spent.
Councilman Smalley., We need to deal.-. with the
appropriation -tonight. Our action doing this sends the
message to Juneau of our support.
MOTION (Amendment), Withdraw:
Councilwoman O'Reilly, with consent of second, withdrew
her motion.
Councilwoman Monfor. I don't have a problem in putting
the dining room out (for bid) when we get Congregate
Housing. But the dining room is not part of Congregate
Housing. We don't want Juneau to be confused.
Councilman Walker. These are separate. Why do we
intend on waiting till May to deal with this? If we
are going to appropriate money, we should go ahead with
it, get plans done and build. It would be done sooner.
Either we are going to build or not. Why wait till
May?
Mayor Williams. It may be appropriate to amend to
authorize the design portion. City Manager Brighton.
We have in the packet an appropriating ordinance for
this. Public Works Director Rornelis. If you wish to
KENAI CITY COUNCIL
FEBRUARY 211 1990
PAGE 6
design.and hold on construction, item C-5a, drop out
the portion regarding.inspection.and just do design.
VOTE:
Motion passed unanimously by roll call vote.
Councilman Smalley. There will have to be rezoning.
Can Administration handle this without a problem? It
is in a conservation zone. City Manager Brighton. It
will have to go through P&Z, the City will work on
this.
Mayor Williams suggested Council direct P&Z to proceed
with rezoning of this.
Council agreed to the suggestion.
C-5a Approval of Kluge Design/Inspection Contract
MOTION:
Councilwoman O'Reilly moved, seconded by Councilwoman
Swarner, that the City of Kenai award to the firm of
Kluge and Assoc. the architectural services for the
project entitled Senior Center Dining Room Expansion.
The cost for performing these services shall be a lump
sum of $22,350 for the contract documents and bidding.
Motion passed by. unanimous consent.
C-7. Renewal of Liquor License -
Mr. DI-s
Rainbow Bar:.& Grill
C-8 Renewal of Liquor License -
Larry's-Club
Kenak Country Liquor
BPOE Elks Lodge #2425
Approved by. Consent; Agenda.
C-9 Renewal of Liquor License -
Katmai Hotel Restaurant & Lounge
The Rig Bar
Clerk Ruotsala. The lease problem with the Katmai has
been.resolved. The Rig Bar is having tax problems, we
have requested an extension and can postpone action
till -the March 28 meeting.
MOTION:
Councilwoman swarner moved, seconded by Councilman
Smalley, to send a letter of non -objection to ABC
regarding the Katmai and postpone action on the Rig
Bar.
Motion passed by unanimous consent.
ADDED ITEMS:
a. Mayor Williams. We have been working on the
helicopter cold water recovery training school
project. It is now back for review. There will
be a meeting in Anchorage regarding this. I have
asked Councilman Walker to represent Kenai on
this.
Council agreed with the recommendation.
KENAI CITY COUNCIL
FEBRUARY 211 1990
PAGE 7
b. Councilwoman Monfor. Feb. 23 and 24 are the dates
for the Library Book Sale in the Mall.
c. (Item H-13) Councilwoman Monfor. Ed Selby donated
a flag pole to the City. It was originally for
Memorial Pk., it is now at City Hall. City
Manager Brighton. Ed Selby donated a flag pole,
but it is not this one. This is a brushed
aluminum light pole.
Councilwoman Monfor. It was not donated. The
sleeve and plaque has been ordered for $25. We
could put on the plaque "Donated by Ed Selby,
1987." He made a great effort to give a flag pole
to the City. Clerk Ruotsala. Tim Wisniewski •
called this date, the cost will be $40.
d. Councilwoman Swarner. Congregate Housing lobbying
effort. Councilwoman Monfor will be going to
Juneau with "goodies." It would like to have a
senior citizen. If we get the project it would be
worth it. City Manager Brighton. You have the
right to lobby without registering. Someone from
off the street would have to register to lobby.
Councilwoman Swarner. I would suggest other
Council members lobby. Mayor Williams. I will be
in Juneau March 8 and 9, 28 to 30, and maybe 16 to
19. Councilman Smalley. They have to be a
lobbyist? Mayor Williams. If the City pays for
the trip, APOC would object. The Sr. Center could
raise funds. City Manager Brighton. Program
Director.Porter could go without registering.
Councilwoman O'Reilly and Councilman Smalley said
they were available.
COUNCILWOMAN MWOR LEFT: 8:25 PM.
D. COMMISSION/COMMITTEE REPORTS
D-1 Council on Aging
Councilwoman Swarner reported, there was a meeting this
date. Officers for the coming year were elected:
Fresident.Joanna Hollier, vice President Francis Meeks,
Secretary t3eorgetta Funk.
D-2 . Airport Commission
None
0 D-3 Economic Development Commission
Mayor Williams reported there will be a joint meeting
Feb. 22, of Economic Development Comm.,, Harbor Comm.
and Council. Councilwoman Swarner. I will not be
here. I talked to Jim Carter (EDD). The video on the
Resource Devel. Comm. meeting in Nov. is not ready yet.
Mayor Williams. The Coughenower report on commercial
fisheries impact on the Kenai area is ready. There are
500 copies published, they will discuss distribution.
D-4 Harbor Commission
Councilman Walker. The Feb. 12 meeting did not have a
quorum. I would like to address those people who have
not attended 3.meetings and contact the commissioners
for possible replacement. Mayor Williams.
Commissioner Rainey was ill for some time. Councilman
- - _
D-5 Library Commission
Mayor Williams. In,the minutes,. under Goals &
objectives, they said there was not, much more to be
done. City.Manager.Brighton.. Under 7b, they discussed
expansion.
D-6 Parks Recreation commission
Councilwoman O'Reilly. There was a meeting Feb. 20.
They discussed the budget.
Mayor Williams. We are still looking at rearranging
the control center at the ball fields. The Little
League people were wondering if there was anything the
City could do regarding repairs on Spruce St. ball
park. They could use about $10,000 worth of work.
City Manager Brighton. How many people in Little
League? Recreation Director McGillivray. I do not
know. The bleachers are all metal, they are all in
good shape. Mayor Williams. How about the center
field where the bleachers were cut out? Mr.
McGillivray. They have metal bleachers there. Mayor
Williams. Maybe a snack shack. They may be going to
Council for help. Mr. McGillivray. Last year they
were asking for dug outs at the soft ball field. They
received $5,000-$6,000 from the State. I suggested
they use that. They built their own dug outs. We have
done work on dug outs and the City works at other
fields. I do not know about the snack bar. it is not
a good building, but there is not a good way to up
grade. It was built by volunteers. The rest rooms by
the.snack bar are a problem. With additional bleachers
from the schools, we plan to look at replacing seating
on those. They can be moved there easily.
Mayor Williams. How many teams are there?* Mr.
McGillivray. In past years there were 300-400 kids, I
would guess it is still about that. They have Nikiski
kids also. Mayor Williams. It is a major segment of
the community.
City Manager Brighton. With 300-400 kids, there would
be at least that many parents. They should have enough
volunteers to do what they want.
D-7 Planning & Zoning Commission
Councilman Smalley. There was a meeting Feb. 14. They
approved a -lease application and sublease. They
discussed the land fill problem. They would like a
work session with Council on this.
Mayor Williams. On March 6 is the Borough date for
action on the land fill lease. I will not be here. It
would seem they are remiss in their objections to
leasing without prior rezoning to what they need. I
asked City Manager Brighton to relay this to the
Borough Mayor. The City Planning Comm. has not done
anything on this.
City Manager Brighton. The proposed resolution will be
supported by the City Assembly members. it says the
Borough will provide free transfer sites within 3 miles
of any City limits. I have said to the Borough Mayor
KENAI CITY COUNCIL
_
FEBRUARY 21, 1990
PAGE
- 9
that the City will support anything that would be the
same treatment as all other cities.
Mayor Williams. We should take a slow approach and see
what the ordinance will do. It may not be necessary to
have a work session with P&Z.
D-4
(contd) Councilman Walker. Regarding the Harbor Comm.
attendance. From July 10 to date, Commissioners Jahrig
and Nord have missed most of the meetings. Comm.
Witbro has made 2 of the last 3 and missed 2. Mayor
Williams. -Cam. Witbro said he wants to.continue. I
will talk to Co mnissioners Nord and Jahrig.
D-8
Misc. Comm/Conan
Councilwoman Swarner. The Beautification Comm. met
-=-
Feb. 13 and reviewed the budget. Mayor Williams. Is
the membership okay? Answer - yes*
E.
MINUTES
E-1
Regular Meeting, Feb. 7, 1990
°. Am
Approved. by Consent Agenda.
F.
CORRESPONDENCE
°`-
F-1
Rep. Young - Impact of Budget Cuts on EDD
F-2
EDD Officers
Mayor Williams. There are some things that get the
interest of the Legislators. Regarding EDD letter
written by City Manager Brighton (item F-1). It got a
response from Rep. Young. The other was regarding the
old building in Old Town (Western Auto building). It
has been bought by the owner of the Pizza Paradisos.
He plans.to demolish and expand it.
ADDED ITEM
Mayor Williams. I:am going to continue to ask Jim
Elson to serve on EDD., with Council concurrence.
Council agreed to the request.
G. OLD. -BUSINESS
None
H. NEW BUSINESS
H-1 Bills to be Paid, Bills to be Ratified
MOTION:
Councilwoman O'Reilly moved, seconded by Councilman
Smalley, to approve the bills as submitted.
Councilwoman Swarner. We have paid D. Baktuit for
fees. How often do we do this? Finance Director
Brown. During tournament season. He keeps a log, I
review it. He pays the officials in cash. They want
to be paid every 2 weeks.
Mayor Williams. (To Finance Director Brown) On the
T-bills, we do business with NBA primarily. Any
airport or central treasury funds in any other banks?
ft
KENAI CITY COUNCIL
FEBRUARY 21, 1990
PAGE 10
Answer - no. Mayor Williams asked why. Finance
Director Brown. NBA acts as broker for no charge. I
went to bid on $3 Million. The T-bill was better.
CD's are not competitive. Over $20 Million of CD are
with NBA. I have been approached by outsiders but have
not used them. We only invest in secured instruments.
I do not go to other banks on CD's, just T-bills. NBA
does it free. Mayor Williams asked why. Finance
Director Brown. They increase volume and get a better
-'-
rate with large volume. We have done this for 15 years
and want to keep the account. There are no transfer
notion fees or -bad check fees.
-'
-Motion passed by unanimous consent.
H-2 Requisitions Exceeding $1,000
MOTION:
Councilwoman Swarner moved, seconded by Councilman
Smalley, to approve the requisitions as submitted.
Councilman Walker. The appraisal for $2,500. Is that
for 12 lots? Admin. Asst. Howard. Yes, Anchorage
wants $16000. Mayor Williams. That is a good price.
A house is $4,000.
Motion passed by unanimous consent.
H-3 Ord. 1359-.90 --Amend Revenue Estimates in Capital
.Projects Funds Expenditure of 1985 Legislative Road
Grant
H-4 Games of Chance & Skill -
Renai Peninsula.Builders Assoc.
H-5 Games:.of Chance & Skill -
FOE Auxiliary, Aerie #3525
H-6 Games of Chance & Skill -
FOE #3525
H-7 Gates. of Chance & Skill -
Kenai Elks Lodge #2425
H-8 Games of Chance & Skill -
AARP #745
Approved by Consent Agenda.
H-9 Approval - Sublease of Space - Rick Baldwin - GAA
Atty. Rogers. The document Mr. Baldwin will enter into
is acceptable.
MOTION:
Councilman Smalley moved, seconded by Councilwoman
O'Reilly, to approve the request for sublease.
Motion passed by unanimous consent.
H-10 Approval - Lease Application - Eichholtz & Pitts, Kenai
Airport Fuel Service, Inc. - FBO S/D
Mayor Williams. This is another indication of economic
development in our area. I am glad to see private
enterprise moving ahead with this.
Councilman Walker. a) The whole lot is needed for
this. It will not.preclude development in lots 5 & 6?
b) Are the.fuel tanks installed within standards and
are there.any fire concerns?.
a. Dean Eichholtz, Kenai Airport Fuel Service. With
the new EPA regulations regarding underground
facilities, we are trying to keep ahead of the
game. Instead of upgrading, we decided to
incorporate larger fuel concessions to take care
of future needs. Tesoro has been working with us
on design, etc. They will be one of our
distributors. They are looking at their best
interest and to lessen liability. We are planning
to go above ground to minimize liability. The
fuel trucks will be able to move off Willow and
not be on the airport. We will move the fuel
concessions north and give us access for planes.
With the number of tanks, we will have a system
for fuel hauls out of the airport that are needed.
Mayor Williams. (To Atty. Rogers) Regarding
insurance. $500,000 is required with 140,000
gallons of fuel storage, will that be enough? Is
the 1+ability more than that? Atty. Rogers. I
will want to hold on that till I talk to our
insurance representative. Mr. Eichholtz. We are
above required amounts now. Atty. Rogers. You
would have to defer to them regarding insurance.
The lease does not absolve them of any other
liability by Federal, City and State guidelines.
f. Councilman Smalley. The City gets gallon per
gallon sold rate at the present facility. Will
that rate be the same on the new facility? Are
rental cars getting fuel there? Mr. Eichholtz.
The regulations do not address that, just aviation
fuel. Councilman Smalley. The City should look
= into this. Airport Manager Ernst. Is it to
refuel also? Mr. Eichholtz. Yes, it would be car
rentals also..
Mayor Williams. They would have to have sales
tax.
NOTION:
Councilwoman Swarner moved, seconded by Councilman
Smalley, to approve the lease subject to additional
conditions of acceptance the City may require including
but not limited to amount of insurance.
Admin. Asst. Howard. Will that be the 30 year lease as
PU recommended? Mayor Williams.. Yes, the lease
applicant has requested 99 years. FAA says no. 30
years is acceptable to the lessees.
Motion passed by unanimous consent.
H-11 Disc. - Regional Citizens Advisory Committee for Cook
Inlet
Mayor Williams. I had this in the packet before. I
met with Nikiski Chamber of Commerce. There are 2
resolutions attached. They are asking for direct
donation from oil companies for the committee. I have
received a 2nd letter from Tim Robertson on Feb. 1. It
would be my intention if we put in the resolution that
we request the chairman of the Harbor Comm. be put on
the committee. One of Harbor Comm. goals is to form a
contingency plan for our local river area. The City
does not want to get itself in a position with
-
KENAI CITY COUNCIL
FEBRUARY 21, 1990
PAGE 12
responsibility for spill cleanup. One spill could
bankrupt us. I am not sure of Harbor Comm. plans. We
should take a close look at bringing someone to talk to
us for the March 21 meeting.
Councilman Walker. These resolutions seem to me
reactionary. I would not object to a resolution in
this order, but I would like to see it less
reactionary. They are obviously against the oil
companies. Exxon -Valdez spill can be belabored till it
is counterproductive. Our resolution should be more
upbeat.
Councilwoman Swarner. The letter from Seldovia to
Mayor Williams was addressed to the Borough address.
Kodiak is not concerned with oil except with fish and
oil income. We should let this sit for awhile.
--
Councilwoman O'Reilly. I do not want us to have people
from Washington coming to tell us what to do. If we do
not do something, that is what will happen. We need to
�.'
have reasons.
Councilman Smalley. I agree. The WAS could be put
`.`
in a more positive light but it is difficult to see in
•
a positive light. It is important that we take part in
developing our program.
Mayor Williams. I would like to ask the president of
Alyeska, Mr. Hermiller, to discuss the reason for this.
Why he says Cook Inlet Advisory Committee was necessary
to set up. British Petroleum has stopped shipments to
Tesoro on Cook Inlet because of liability vs profit.
It will be a transportation hardship for Tesoro. If
they are going to set up a regulatory advisory
committee, it may behoove us to take a stand so we need
someone on the committee. I will send letters to Mr..
-
Robertson and Mr. Hermiller for the March 21 meeting.
if we put Chairman Eldridge on the committee, he runs
_
Cook Inlet Resource Organization and has many years in
the Coast Guard.
MOTION:
Councilman Walker moved, seconded by Councilman
Smalley, to have a resolution at the March 21 meeting
regarding a Regional Citizens Advisory Committee for
Cook Inlet.
City Manager Brighton. An advisory committee has very
little power. We will have to approach with caution.
Mayor Williams. Mr. Hermiller said at the Nikiski
Chamber. meeting that -the committee was set up with the
blessing of the oil companies but is outside of the
committee. it is totally a citizens' group. It seems
it is something they wanted done.
Motion passed by unanimous consent.
8-12 Disc. - Kenai Peninsula Caucus - Membership
Mayor Williams. I have assumed responsibility of this.
Would anyone from Council like to represent the City
for the next year? Rich Underkofler has been very good
about setting meetings. The next meeting is March 2.
There will be a teleconference at City Hall.
Clerk Ruotsala will notify Council of the time and
KENAI CITY COUNCIL
FEBRUARY 21, 1990
PAGE 13
date.. Mayor Williams. The dues are $25 this year.
will go"to the March 2 meeting,. and check with
Councilman Measles if he is willing to represent the
City.
8-13 Disc. , - Plaque for City Hall. Flag
Discussed after item C-9.
H-14 Games of Chance & Skill -
Kenaaitze Indian Tribe, IBA
Approved by Consent Agenda.
I
H-15 Letter from Lobbyist Ashley Reed - HB 422, Fisheries
Tax
Mayor Williams. The AML report of Feb. 16 has items
regarding fisheries tax. •
City Manager Brighton. Kodiak,the Aleutians East
Borough and the North Slope Borough do not want the
formula changed. They use fish tax money for
government. They do not have taxes. Unless our
Legislators can fight for this, you can kiss this
good-bye. 'If there was any way this could be kept
constitutional for us and still let them keep theirs,
but I don't think so.
Mayor Williams. We are having a difficult time with
this because we are not getting support. AM has not.
taken a stand on this. Atty. Rogers. The Legislative
Committee is punting.
City Manager Brighton. The Bush has more members than
the cities. Mayor Williams. It helps us to $400,000
per year. We are not getting help because of the Bush.
Mayor Williams. our lobbyist has spent much time with
this for 3 years trying to get this through. City
Manager Brighton. All we are asking for is fair
treatment. It is unfair at this time.
Mayor -Williams. We will watch it this year.
No.action by.Council.
I. ADMINISTRATION REPORTS
I-1 Mayor
Mayor Williams spoke.
a. I would ask for the July 4 Council meeting to be
July 11 and the 2nd meeting to be July 18.
Council agreed to the request.
b. The Fire Training School. I attended a meeting at
the Borough on Feb. 20. They decided to get a new
plan. There was much discussion regarding
training schools near residential areas. People
in the Borough say no zoning but they want special
regulations. I did not know we would have such
opposition to this. A subcommittee of a fire
training school group travelled to see facilities
in the South 48. Smokeless, computer -controlled,,..,
environmentally sound but expensive.. We may be
able to use a.Wildwood building. The cost would
be about $4-1/2 Million. The plan is to tap the
i
_ f
MWAI CITY COUNCIL
FEBRUARY 21, 1990
PAGE- 14
Railbelt Energy fund to supplement. The Board of
P,egents will meet in Juneau with others on July
22. From $400,000 to $4-1/2 Million. The numbers
of people using it went from 1500 to 2,000 to
31000. We are doing a major push to get this.
Councilwoman O'Reilly. There is more awareness of
the environment and what we are doing with it. In
the long run it is cheaper.
Mayor Williams. We may benefit from this. The
technology driving this is amazing. You get
f
effect of heat &fire, but it - is- environmentally
sound and no smoke. They hope to have 8 modules
to run them, in about 1/2 acre.
`=
C. Councilman Walker and I are going to Anch. 2-26
regarding the helicopter cold water recovery
training school.
d. I will not be here March 7. Councilman Measles
will preside. I will be in Juneau at no cost to
the City.
a. (contd) The Fire Training School. The 1st Borough
resolution failed but the resolution regarding the
_
Borough being informed on location passed. The
University does not have to notify them.
I-2 City Manager
Ci.ty Manager Brighton. I will not be at the March 7
meeting. I will be in Wash. D.C. for NLC. I am a
member of the -Policy Committee for Economic Development
for Small Cities.
I-3 Attorney
Im
Atty. Rogers spoke.
a. AML Legislative committee meeting. The fish tax
was not discussed much. The Legislative Committee
is taking the heat because our agenda is not their
agenda. We are lobbying on behalf of the cities.
They are booking us with.lobbying for AM. I feel
we should split our time. I may not be at the
March 1 meeting with AML. Councilwoman Swarner
may not be there either.
b. American Bar Assn. meeting. They discussed
construction contract documents, land use,
computers, disaster, litigation.
C. I attended OEM meeting at the Borough this date,
regarding the volcano.
d. Regarding the word processing equipment (item
I-3). We would like to donate to schools.
Councilwoman O'Reilly. Are you restricting to
Kenai schools? Atty. Rogers. 1st to Kenai
schools, then others. Nikiski is the only class
room that wants one. They can call Legal Secy
Freas.
e. Regarding the Church building (item I-3). They
will take over the building. We were able to get
a promise to pay arrearages of $6,400. We will
recommend assignment of lease or any other
documents necessary to get the building useful..
•
KENAI CITY COUNCIL
FEBRUARY 21, 1990
PAGE 15
f. City Manager Brighton. The Governor's budget is
this amendment? I heard they did not have the
court house remodeling. Mayor Williams. Look at
the final number. Atty. Rogers. This is 3 weeks
old. Mayor Williams. $62 Million for U of A but
the Governor wants to maintain government
buildings. Nome and Fairbanks did well.
e. (contd) Councilman Smalley. We did a letter of
concurrence from Council on .the Church lease?
Atty. Rogers. With no objection from Council, I.
will proceed.
MOTION:
Councilman Smalley moved, seconded by Councilwoman
Swaraer, for Atty. Rogers to proceed with a letter of
concurrence on.the Church lease situation.
Motion passed by unanimous consent.
I-4 City Clerk
Clerk,Ruotsala noted the voter registration changes
proposed by congress., Alaska.does most of these things
already.
1-5.:Finance Director
None
I-6 Public -Works Director
Public Works Director Kornelis spoke.
a. 2-16 I received MPDES permit and EPA compliance
order documents for the sewer treatment plant
work. We need engineering design under contract
by March 31. We need the money appropriated.
CH2M Hill will send a design proposal. We will
have it at the March 7 meeting.
b. The Sr. Center addition. We will award the
contract to design to Arch. Kluge. We will hold
off on bid for project. Rezoning and property
line changes will have to be done. Councilman
Smalley. Will that affect the property at
Congregate Housing? Public Works Director
Kornelis. No, it is on the opposite side. There
are also archeological concerns we will review.
C. Mayor Williams. What about the wetlands permits?
Public Works Director Kornelis. Beaver Loop and
Willow St. Extension. The Corps. of Engineers are
behind. The boat ramp is #7, Willow St. is later.
d. Mayor Williams. What about the Fish & Wildlife
grant application? Public Works Director
Kornelis. Nothing since last meeting. It should
be let in March.
I-7 Airport Manager
Airport Manager Ernst spoke.
a. Feb. 15 there was a fire in the airport bar. It
was confined to a small area. one sprinkler head
triggered,'it put it out so fast the smoke alarms
did not go off. There was minimal damage, about
KENAI CITY COUNCIL
FEBRUARY 21, 1990
PAGE 16
2,300 gallons of water released from the sprinkler
head. Some damage in the gift shop. We notified
the insurance company. Councilman Smalley. Any
damage to the wood floor? Airport Manager Ernst.
No damage to any of the bar area. I called the
foreman, he was there inuediately. The gift shop
owner also.
b. I have required all gates at the airport be
closed. We are having some difficulty with
wildlife. Under our certification requirements,
they must be secured. There may be some
additional work this summer.
C. Redoubt volcano has caused anguish to the public.
Southcentral was the only airline flying. The
fallout was very light. I had several calls and
one visit, asking what we will do. I called the
other airports. Anchorage has a contingency plan,
they put snow on the runway and remove it. We
cannot blade this, it is too thin.
ADDED ITEMS:
a. City Manager Brighton. Every Spring when we sweep
streets, we have a large cloud. We will have a
great problem this year. We have at least 4
layers of ash right now. It will take longer and
cost more.
b. Mayor Williams. How is the street budget? Public
Works Director Kornelis. It is not too bad.
I-7 (clotd)
d.. Mayor Williams. How is the glass case coming?
Airport Manager Ernst. It should be started next
week.. We will have to gut security walls in. The
model is in 12 large crates.
ADDED ITEMS:
C. Mayor Williams (to Councilman Walker). Could you
get copies of the 15 Cook Inlet oil platforms for
City Hall? Councilman Walker. I will try.
d. Public Works Director Kornelis. Regarding the
stop lights. They have to order lights. They
will have a crew down Feb. 22 and have a sunguard.
Some of the lights cannot be fixed till summer.
Anchorage has been sending a truck down without
any problems. They stopped contracting to lower
costs.
Councilwoman O'Reilly. At Willow St.
intersection. I was the 3rd car back at the green
light. 1-1/2 cars got through and it turned red..
Is there something wrong with the timing? Public
Works Director Kornelis. They are aware of that
and will check it.
e. Councilman Smalley. When people drive leaving
Soldotna on State patrolled highways, the roads
are good. But in the Kenai/Soldotna area, they
are pathetic. Ridges push cars out of control.
Public Works Director Kornelis. I have written
the State regarding this and talked to them this
week. Their problem is they have had a freeze on
new equipment. Road equipment is breaking down.:
MWAI CITY COUNCIL
FEBRUARY 21, 1990
PAGE 17
We are working with them. They say they will be
back.
f. Mayor Williams. Info 3 (State Boards &
Commissions) may be of interest to Council.
J. DISCUSSION
J-1 Citizens
None
J-2 Council
a. Councilman Walker. We voted on the ordinance this
date for the dining room addition for the Sr.
Citizens. There is still some confusion. We
voted on the addition but are delaying?
Mayor Williams. We appropriated the money, but
still have to vote to spend the money for the
contract. Finance Director Brown. The exception
is engineering.
Public Works Director Rornelis. I will go ahead
with engineering and wait for the Congregate
Housing decision to continue. If Congregate
Housing does not go, we will be ready to go out
for bid on the dining room.
Councilman Walker. I don't want to see us wait
till Spring or, summer. I would like to see it
expedited. I don't view us as receiving
Congregate Housing money from this Legislature and
I would like to see us proceed..
E_ Mayor Williams. It will take a while to do
drawings. Public Works Director Rornelis replied,
a couple of months.
:. Mayor Williams. We will prepare and have it ready
i.. to go to bid by May 16. That would give the
contractors 30 days bid preparation time. We
would be ready by July 11 to let the contract.
The Legislature will be out May 8, we will know by
r May 16. Councilman Smalley. Not much can be done
before then.
Mayor Williams. Administration could be ready to
bid by May 16 meeting, we could put it on the
agenda. Public Works Director Rornelis. If
Railbelt Energy funds come through, we will want
to re -appropriate money.
Finance Director Brown. Most legislative grants
are in mid -August. City Manager Brighton. But
you will know by May. Mayor Williams. We must
check if it says it will not replace moneys
appropriated.
b. Councilwoman Swarner. There is going to be a
committee at the Sr. Center to work with the
architect ton Sr. Center addition). He will bring
it to Council for review. It may take 2 months.
Mayor Williams. There may be a cost adjustment as.
we go along. There will be a tremendous amount of
work out in the State this year. That may hamper
us from getting good bid prices.
IUMOa CITY. COUNCIL
FEB WARY 21, 1990
PAGE 18
C. Councilwoman Swarner. Regarding State roads.
Fairbanks roads are bad also.
d. Councilwoman O'Reilly (to Airport Manager Ernst).
What is the current opening date for the bar?
Airport Manager Ernst. The bar - the 1st week in
March; the restaurant - the 1st week in April.
e. Councilman Smalley (to Atty. Rogers). I talked
with P&Z Chairman Bryson. They received a letter
showing City policy on Comm/Conan that said
Conran/Comm are only advisory. P&Z is different?
Are they affected by this policy? Atty. Rogers.
They do have powers. City Manager Brighton. They
are the only one with powers. Atty. Rogers.
Those powers are specifically designated..
K. ADJOURtIMENT.
Meeting adjourned at 10:15 PM.
anet Ruotsala, CMC
City Clerk
•
•
KENAI CITY COUNCIL - PARTIAL TRANSLATION
FEBRUARY 21, 1990
C. PUBLIC HEARINGS
C-5 Ord. 1358-90 Increase Rev/Appns - Senior Center Dining
Room Expansion - $296,000
MOTION:
Councilwoman Monfor moved, seconded by Councilman
Smalley, to approve the ordinance.
PUBLIC COMMENT
a. Betty Warren, Box 116, Kenai. I am Vice President
of Kenai Senior Connection, the fund raising part
of the Kenai Senior Center. You have a letter
signed by Glenn Jackson of the Senior Connection.
$14,000 from the Senior Connection is to be
applied to the cost of construction of the dining
room addition . This "strips the gears" of the
Senior Connection, but we will start again next
summer. Thank you for the City of Kenai support
in the last 18 years.
b. Joanna Hollier, Box 366, Kenai. I am President of
the Council on Aging. I encourage a positive vote
on the expansion.
c. Clarence Ladd, Kenai. I have 5-6 pages of
signatures here this date. I came here in Nov.
and Dec. asking Council to work this into their
budget. Regarding the plans, a group of us feel
the plan looks beautiful. One thing regarding
safety. The fire exits are good. The new ones
will be in front over the bluff. I talked to the
Fire Marshall and the Building Inspector. To get
people out of there would be difficult over the
bluff. Could one be put on the north side where
an ambulance coula go? I did not put the petition
in the packet because we had another meeting since
Friday (packet day).
d. Martha Bethe, Kenai. I lived in Cooper Landing 10
years. When I moved, I chose Kenai because of the
Senior Center activities. We need the expansion.
Last summer they were putting tables in the entry
way.
c. Gordon Levy, resident of Old Town, Kenai. I have
depended on the Senior Center for the last few
years for meals on wheels. This is very important
because of my diet. They are preparing for people
•
KENAI CITY COUNCIL
PARTIAL TRANSLATION
FEBRUARY 21, 19902
meeting there and preparing for meals on wheels
also. They do not have space for both at the same
time. I have been an engineer for many years.
Space prevents a better job being done. They need
the space.
MOTION, Amendment:
Councilwoman O'Reilly moved, seconded by Councilwoman
Swarner, for City funding of the project contingent on
State funding of Congregate Housing.
Councilwoman O'Reilly. I am in favor of the expansion
and Congregate Housing. I appreciate what the Center
does for seniors. Congregate Housing and the dining
room expansion go together. The dining room expansion
was to be a sign of support of Congregate Housing.
This would send the same message.
Councilwoman Monfor. If we don't get Congregate
Housing, we would not build the dining room?
Councilwoman O'Reilly. No, it would come up again.
Councilwoman Monfor. There is no money for dining room
expansion in Congregate Housing. Do you realize that?
Councilwoman O'Reilly. Yes, the City would do the
dining room, the State would do Congregate Housing.
Councilwoman Monfor. Mayor Williams says we would not
appropriate money till we hear from Juneau. I want to
commit this tonight. Councilwoman Swarner. I think we
should wait on the extension till we find out what the
Legislature will do. Councilwoman Monfor. We will not
appropriate money till the Legislature is done.
Councilwoman Swarner. If you build both of them, you
would get a better price, use it as an added alternate.
I am uncomfortable with the price.
Councilman Smalley. I have the same understanding that
it would be held till May for appropriation.
City Manager Brighton. Technically we are
appropriating money. It is available. It would then
be Council's job to decide when the money would be
spent.
Councilman Smalley. We need to deal with the
appropriation tonight. Our action doing this sends the
message to Juneau of our support.
0 MOTION, Withdraw:
KENAI CITY COUNCIL
PARTIAL TRANSLATION
FEBRUARY 21, 19903
VOTE:
Councilwoman Monfor. I don't have a problem in putting
the dining room out (for bid) when we get Congregate
Housing* But the dining room is not part of Congregate
Housing. We don't want Juneau to be confused..
Councilman Walker. These are separate, why do we
intend on.waiting till May to deal with this? If we
are going to appropriate money, we should go.ahead with
it, get plans done and build. It would be done sooner.
Either we are going to build or not. Why wait till
May?
Mayor Williams. It may be appropriate to amend to
authorize the design portion. City Manager Brighton.
We have in the packet an appropriating ordinance for
this. Public Works Director Kornelis. If you wish to
design and hold.on construction, item C-5a, drop out
the portion regarding inspection and just do design.
Motion passed unanimously by roll call vote.
Councilman Smalley. There will have to be rezoning.
Can Adminisiration.handle this without a problem? It
is in a conservation zone. City Manager Brighton. It
will have to go through P&Z, the City will work on
this.
Mayor Williams suggested Council direct P&Z to proceed
with rezoning of this?
Council agreed to the suggestion.
C-5a Approval of Kluge Design/Inspection Contract
MOTION:
Councilwoman O'Reilly moved, seconded by Councilwoman
Swarner, that the City of Kenai award to the firm of
Kluge and Assoc. the architectural services for the
project entitled Senior Center Dining Room Expansion*
The cost for performing these services shall be a lumr
sum of $22,350 for the contract documents and bidding.
Motion passed by unanimous consent.
Janet Ruotsala, CMC
City Clerk
A
PARTIAL VERBATIM'
888$IIARY 21r 3990
IIENAI CITY CODNCIL MaSTI1iA
ITEM R-101 AVBAOVAL- Lease Application/miahholts a pittr
Kenai Airport Fuel SetViae, Inv. 120 Subdivision
WILLIAMS:
Item 10, the approval of a lease application, Sichholtz & Pitts,
Kenai Airport Fuel Service, Inc. Council we have this item
before us. This is something that the Mayoras been very
interested in for some time. We had talked'about. Yes, excuse.
SMALLEY3
Just one item, I guess I'll ask for unanimous consent and
everyone out there can vote on it.
WILLIAMS$
Well, there are a couple of questions...
SMALLEY=
on the Baldwin?
WXLLIAMS t
Oh, I'm sorry. I'm sorry. Unanimous Consent has been called for
and if there are no objections...So ordered.
This fuel terminal business that Dan Pitts.and,Dean Eichholtz are
to attend to is another indication of economic
development for our area. Some time back, you might remember, we
had thought about talking with Tesoro about. doing something like
this and I'm glad to see that private enterprise is moving ahead
with it. Ah, Mr. Eichholtz is here this evening to talk with us
about it. There are a couple of questions that I'd like to pose
before we approve it. And I'd also like to,hear from the City
Attorney if there is any objections.from his part. With that,
does Council have any questions regarding this application, this
lease? Councilman Walker.
WALKERS
I had two questions on it, not being able to read the P&Z minutes
on it. Somewhere in here we have a map showing the lot areas
that I presume...
wlam
1�
WILLIAMBs
The very back page...
WALIUMi
okay the from reading through this that the
whole lot71g"_h4_&d_4d for th s and.this won't preclude someone else
from moving into lots five and six.perhaps:, should we have some
other kind of.development come forward? And also,'that was one
question and one concern that I had and on the map that's an the
back showing the location of fuel tanks and`what not, I presume
that they were going'to be installed within standards -
and what not, and did we have any fire concerns in relat on to.
that.
WILLIAMS:
Mr. Eiehholtz is here with us and he may be able to give us a
broader view of what the overall concept will be if you care to
comment.
LICIMOLTSs
Thank you. What our plans are out there at the airport at the
present time, of course, we.do have the Kenai
Airport Fuel Sery ce out there at the present time and with new
EPA regulations concerning underground fuel facilities, we are
trying to be a little bit ahead of the game on that. We do have.
fairly new tanks in there at the present time, but we feel that,
instead of trying to upgrade the tanks, putting in a monitoring
system and putting them above ground right there, we decided to
make a move and try to incorporate a little bit larger fuel
concession and take care of needs into the future per se on that.
We contacted Tesoro and they have worked with us closely so far
as giving us a lot of help as far. as planning and tank design,
pumps, etc. out there. We have•f-ormulated plans. They're ..:
letting us.become of their deep distributors. So, they'll be
hanging their sign out there'as well. So, on that, of course,
we're looking out for the best interests, as well to,minimize any
liability so far as fuel containments. You know,,they're giving
us all their cooperation with all of their facilities to best
back the fuel system.
We are planning on going aboveground with the tanks to minimise
that particular aspect. We are planning, if you notice, that for
the fuel drops, we are planning -the fuel. trucks to be able to.. do
any fuel drops from off of Willow Street so they won't have to;
drive through the airport area itself. That.will move the -fuel,.
concession over toward the north some, and that will provide us:
some access to park our general aviation airplanes, Alaska Flying
Networks parks their planes, etc. right out there, as well as we
have the maintenance facility sort of, will provide us that
additional ramp area that's necessary with that for our expansion
needs.
The number of tanks that
do is get a system so fa
haul requirements out of
what the future so far a
WILLIAMBt
s
I did want to direct one question to the City Attorney with
regard to insurance that's required. I note that on the
conditions to acceptance, we're requiring.$5001000. I would
suspect between 140,000 gallons of fuel storage, that $500,000
may be something we want to take a look at to insure that the
liability insurance is considerably more than that.
ROGERBs
I would want to reserve insurance amounts until such time as we
talk with our insurance broker.
RICHROLT$s
We presently do have a million dollars, where we're required
right now with the $500,000 we're in aware of those minimums
right now as well.
R03MR81
But I don't know what their recommendation would be. It could be
500 and we would forced to close them down insofar as insurance
is concerned. Also, the lease does not absolve them of
compliance, Councilman Walker. With any other requirements
relative to the installation and operation of fuel tanks, that
may be required under City Code, federal guidelines and state as
well.
WILLXAMB8
Councilman Smalley?
ONRLLBY s
Yeah, I don't know if the Council's aware that the City currently
receives a gallon per gallon sold rate at the present facility..
I'm assuming that this rate will remain the same on the new
facility which will also....
-3-
i
6
I
ROGERS:
I would assume that it would be the same...
SMALLRY s
and this includes the rental cars and so an that would be getting
fuel there?
BRMST=
It doesn't address, the regulation doesn't address vehicle fuel.
It only addresses aviation fuel.
8Ma1LL8Y =
But that's something the.City could look into. It's just a
question.
BRMSTI
Is that what the vehicle fuel ?
RICHROLT$t
Correct. We're looking at, of course, trying to provide for like
DHL or rental car.
BRUBT t
Does the city not get sales tax from...
WILD MS s
In that case it would retail sales...
BRMOTI
Right...
RICREOLTa =
Sure .. .
WILLIAMS $
...you ought to be collecting sales tax. I believe the aviation
dollar amount is in lieu of sales tax.
BMALLBYt.
Correct.
-4-
RILLIAMBs
3o we would still be collecting sales tax. All right...
ROOSROt
I would ask that the approval be subject to other conditions of
acceptance that the:,city May. impose# including but not limited
to, insurance amounts:
WtLLtAM$t
All right Mr. Smalley, would you care to make a motion?
BMALL$Ys
Ah, the motion would be to,
Councilwoman O'Reilly.
WILLIAMSt
Ism sorry, I was talking to
Would the City Attorney please restate the acceptance conditions?
ROObRSt
If it ' s the desire of the council to approve,
lease application, subject to additionalconditionspOfve the
, includin , but not limited acceptance
the city may require
insurance. g mated to the amount of
8MALLiYs
You said that so well, I'd like to say that's my motion.
WILLIAMS
Let the record show we have the motion down. You better read it
back to us...
SWARMS
I�11 second that too.
WILLIAX8 s
The Clerk will read the motion back for us please.
RVOTSWAs
I'm sorry, I didn�t.get. the'last part of it. Approval subject to
additional conditions of acceptance the City may require
including.,
ROGERSt
But not limited to the amount of the insurance,
RDOTBALAt
...to amount of insurance. Thank you.
WILLIAM I
Yes, the terms of the lease would be somewhat different. The.
lease applicant has reghested'a.99 year lease. The ah...
ROGERBs
The FAA says no,
WILLIAMSs
...the FAA does not allow us to go that long. So the thirty year
seems to be acceptable at this time.
EICHHOLTSs •
I see.
WILLIAMBs
A thirty year lease then? Are there any other details that
should be looked at?
ROGERS:
I think that the motion is such that it's pretty open-ended. We
can draft the lease as we see fit and as we acquire information,
we'll put in$
WILLIAMsa
Good. We have a motion and it's been seconded. is there any
objections by any members of the council? Seeing none, it stands
approved.
END OF ITEM.