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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.