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HomeMy WebLinkAbout1989-02-15 Council MinutesAGENDA >- KEMAI CITY COUNCIL -REGULAR MEETING - FEBRUARY 15, 1989 - 7:00 PM A. CALL- TO ORDER 1. Pledge of Allegiance 2. Roll Call 3. Agenda Approval 4. Consent Agenda *All items listed with an asterisk M are considered to be routine annon-controversialone motion. the Council and will be approvedY There will be no separate discussion of these items unless a Council member semooved from the which case the item will be Consent Agenda and considered in its normal ral sequence on the agenda as part of the Gene Orders. B. SCSEDULED PUBLIC COMMM (10 Min.) 1. Mike McLane --Inlet Woods 2. Larry Powers Lease of Tidelands C. PUBLIC BEARINGS 1. Ordinance 1302-89 - Increasing Rev/Appns -VIP Streets Capital Improvement Project - $915,000 2, ordinance 1303-89 - increasing Rev/Appns candlelight, Linwood Streets Capital Improvement Project - $649,000 _ 3, ordinance 1304-89 -eetsrC�a ital emprovement - Aliak, Highbush 00 P Project - $2738000 4. Resolution 89-11 - Continuation of E. Aliak, Highbush Assessment District ora 5. Resolution 89-12 - Continuation Ave.,i Pirate LaneL ,Muir way, Watergate Way, K Ave. Assessment District 6. Resolution 89-13 - Continuation of Candlelight Dr:, Linwood Lane, Kakau Way, Riana Lane, Baker St., Lawton Dr. Assessment District 7. Resolution 89-14 - Reconuaending Passage of Safe Boating Bill 8. Resolution 89-15 -Requesting Legislature Enact Comprehensive Tort Report .Legislation 9. Renewal of Liquor License - - Rainbow Bar & Grill it shop#58 Oaken Reg Spirit Eagles #3525 10. Renewal of Liquor License - Little Ski Mo Drive.Inn D. COMUSSIOIN/COMMITTEE REPORTS 1. Council on Aging 2. Airport ComissionComlDis83.on 3. Economic Development 4. Harbor Commission 5, Library Commission 6. Recreation Commission 7. Planning & Zoning Commission 8. misc. Coma/conma E. MINUTES 1. *Regular Meeting, February 1, 1989 • F. CORRESPONDENCE 1. *Sen. Stevens - P-3 Orion Project, Job Corps Site, Alaska Conference of Mayors 2. Sen. Uehli.ng - Railbelt Assistance & Recovery Act 3. *Alaska Assoc. of Municipal Clerks President Drexler - Intl. Institute of Municipal Clerks Meeting in Anchorage 4. *Alaska C&RA Commissioner Hoffman - FY 89 Municipal Assistance Payment S. Girdwood Bd. of Supervisors - Accelerate Improvements on Seward Hwy (Girdwood to Bird Creek) G. OLD H. NEw BUSINESS 1. Bills to be Paid, Bills to be Ratified 2. Requisitions Exceeding $1,000 3. *Ordinance 1305-89 - Amending Kenai Municipal Code, Title 14 - Bed & Breakfast Establishments 4. *Ordinance 1306-89 - Amending Kenai Municipal Code, Title 14 - R/V Parks 5. Disc. - Jesse Wade Request - Dena'Ina Pt. S/D 6. Approval - Airport Terminal Renovation - Change Order #1 - Asbestos Removal 7. Approval - Boating Facility Project - Increase in Engineering- Win. Nelson Engrg. 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 . KENAI CITY COUNCIL - REGULAR MEETING - MINUTES FEBRUARY 15, 1989 - 7:00 PM KENAI CITY HALL MAYOR JOHN J. WILLIAMS PRESIDING A. CALL TO ORDER mayor Williams called the meeting to order. A-1 Pledge of Allegiance A-2 Roll Call Present: Mari O'Reilly, Hal Smalley, Linda Swarner, John Williams Absent: Chris Monfor, Art McComsey, Ray Measles A-3 Agenda Approval Mayor Williams spoke. a. Additional material for items C-4 and C-6, Assessment Districts, was distributed this date. b. Application for Games of Chance & Skill for Moose Club, distributed this date, be added as item H-8. C. 4 items distributed this date and identified as I-1 items, be added under Mayor's Report. d. The Senior Citizen Housing Report, distributed this date, be added to the packet. e. Councilwoman Swarner distributed a report on her trip to Juneau. f. Add Res. 89-16 as item C-11. MOTION: Councilman Smalley moved, seconded by Councilwoman O'Reilly, to approve the agenda as amended. Motion passed by unanimous consent. A-4 Consent Agenda Council approved the Consent Agenda as submitted, by unanimous -consent. B. SCHEDULED PUBLIC COMMENT B-1 Mike McLane - Inlet Woods Mike McLane, Box 2504, Kenai. I wrote a letter last summer to Council through City Manager Brighton regarding our inability to pay the assessments. I contacted Mr. Brighton on a number of occasions in order to meet with Council. I wanted an opportunity to explain the reasons why we could not pay. I was told the City was considering options and it was not a good time to get together. The first response was in the Clarion that the City was seeking outside counsel. We were not notified. An executive session was called. I asked Mr. Brighton to express our surprise. On Feb. 1, 1989 I received a copy of a letter from Atty. Rogers that a suit was being done Feb. 10, 1989. Our financial dealings with the community have been honorable. I regret having to lay this out in public forum. But I cannot remain silent. Inlet Woods began 5 years ago. We worked out with the City Council one KENAI CITY COUNCIL FEB. 15, 1989 PAGE 2 of the best areas in the City. We are proud of our subdivision and believe it is an asset to the cit . D. The streets and utilities were constructed as an LI Now it looks like the City does not only want to have the property but sue us as well. The property was purchased from Hedley Parsons for $4000000. 6 partners were involved, 4 members of the McLane family, Bruce Robson and George Bradford. Over the last 5 years, the real estate market Collapsed# th IRS instituted major tax revisions regarding interest e and capital gains, real estate taxes escalated. $500,000 of our own Moneywas $300,000 was paid in taxes to the Boroughlan Woods, and the 2 partners left the State. g .and cities, statement shows a lack of financial Our financial rves. al negotiated with Mr. Parsons.We sent to the City asking the city to e a 1988a letter was situation. Deeds to our interest in the landwereoffered. My hope was the City could cut their losses by discounting the assessments to sell the lots and get the property off the delinquent rolls. Instead the City has chosen to sue us, based on an admittedly untested legal theory. My family has acted responsibly throughout this transaction. Based on an untesd legal action, my family will suffer bankrupt ankru tc titleewill be clouded, 16 p y, the will benefit. The City Will up withone. Nobody whether there is a law suit or not. The title wiInlet ll be transferred to you by the Borough about March 1, 1989. I had hoped a realistic strategy to be developed. We are not allid withesolve articular one p this could town. To destroy this business will not ch p financial facts. ange the Mayor Williams. council has retained legal counsel in this matter and we are not at liberty to discuss this. We sympathize but find ourselves situation. in a tenuous The City had to bond for this project, it is in debt over $2 Million for this project. The good faith and credibility of the Cit these bonds. The first y require that we pay be over $400,000 in debtwiththis bhas ynexen t We will not an easy matter. The collapse Of -the real estate is market in this state has affected is nothing we can discuss this evenmi y People. There Mike McLane. My point was to get this to Council. Mayor Williams. Council has been appraised. Administration has kept us informed. Council can do at this time. There is nothing over the next several months. We will be working on it B-2 Larry Powers - Lease of Tidelands Mr. Powers was not present. C. PUBLIC HEARINGS C-1 Ord. 1302-89 - Increas Improvement Project - $9150000Rev A pns VIP Streets Capital KENAI CITY COUNCIL FEB. 15, 1989 PAGE 3 Motion passed unanimously by roll call vote. C-2 Ord. 1303-89 - Increas. Rev/Appns - Candlelight, Linwood Streets Capital Improvement Project - $649,000 MOTION: Councilman Smalley moved, seconded by Councilman Smalley, to adopt the ordinance. There was no public comment. Motion passed unanimously by roll call vote. C-3 Ord. 1304-89 - Increas. Rev/Appns - E. Aliak, Highbush Streets Capital Improvement Project - $273,000 MOTION: Councilman Smalley moved, seconded by Councilwoman O'Reilly, to adopt the ordinance. There was no public comment. Motion passed unanimously by roll call vote. C-4 Res. 89-11 - Continuation of E. Aliak, Highbush Assessment Dist. - MOTION: Councilwoman Swarner moved, seconded by Councilwoman O'Reilly, to adopt the resolution. There was no public comment. q Motion passed by unanimous consent. C-5 Res. 89-12 - Continuation of VIP Dr., Lora way, Watergate Way, Retch Ave., Pirate Lane, Muir Ave. Assessment Dist. MOTION: Councilwoman o,Reilly moved, seconded by Councilman Smalley, to adopt the resolution. There was no public comment. Motion passed by unanimous consent. C-6 Res. 89-13 - Continuation of Candlelight Dr., Linwood Lane, Kaknu Way, Kana Lane, Baker St., Lawton Dr. Assessment Dist. MOTION: Councilman Smalley moved, seconded by Councilwoman �. O'Reilly, to adopt the resolution. PUBLIC COMMENT: a. Beth Thompson, 1004 Kaknu, Kenai. I don't want to pay $200. The lot next to me is owned by a man from Texas. If he does not pay, do you leave this unpaved? Will our taxes go up? The assessment goes up. Mayor Williams. The assessment has been set at 12% of the cost of the pavement. Yours is $210 for 10 years, $40.80 per year. KENAI CITY COUNCIL FEB. 15, 1989 PAGE 4 is Councilwoman Swarner. Last summer I checked with an appraiser. He said it does not matter whether it was paved or not, the cost was the same. Ms. Thompson. It could change next year. I don't want my taxes to ac up. I can water my street. You have city trucks to do this. Mayor Williams. We do not have city trucks to water the streets. Ms. Thompson. I don't want it paved and do not went to pay for it.I cannot see how taxes won't goP. The value alue will go up. Mayor Williams. The City has the lowest tax rate in Alaska. Ms. Thompson. That will change sooner or later. Taxes will go up. The Mayor had said last year it would not cost us anything. Mayor Williams. I tried to get this but could not. Ms. Thompson. What happened to the money appropriated? Mayor Williams. That is what we are using. It will not cover all of it. We are pulling out of General Fund $60,000 in addition. Ms. Thompson. Our taxes will not go up? Mayor Williams. Not as a result of road paving. City Manager Brighton. Because your road is paved or not paved, your taxes may go up anyway. Paving will not necessitate a tax increase. Ms. Thompson. Will they go up more with paving? City Manager Brighton. As long as it is gravel, we will grade once a week. With paving, we will not come out till it snows. That is a savings to the City. Mayor Williams. Your portion of the assessment is 12 0 of paving only. The up -grade is from grant funds. The assessment is 7-1/2% with all included. Ms. Thompson. We don't pay for preparing the road? Answer - right. Ms. Thompson. The $204 I would have to pay, what if I don't pay? Mayor Williams. A man was just here and has road improvements and cannot pay. Councilman Smalley. I called the Borough assessor. He said they re -assess every 3 years. Most likely there will be tax increases in the future whether you pave or not. Ms. Thompson. Does $204 I pay go up the driveway? Public Works Director Kornelis. Just to the property line. Ms. Thompson. How much more will it be to do the whole driveway? Mayor Williams. About 4 times as much. Ms. Thompson. will you fill in if there are pot holes, etc.? will there be a lip where the dirt washes out? Councilman Smalley. I lived on Beaver Loop; it is paved, the side roads are not. It was no problem. Ms. Thompson. Is this appropriated for sidewalks? There are a lot of kids there. Mayor Williams. KENAI CITY COUNCIL FEB. 15, 1989 PAGE 5 Curb and gutter would run the cost so high we would not have money to do it. it is strip paving :- only. Ms. Thompson. If I have enough for a petition, will you not pave? Public Works Director Kornelis. You have to have 51% of the project. Ms. Thompson. This is not fair for all streets to be involved. Mayor Williams. 51% of all of the F people. Ms. Thompson. Now can we re -arrange so it will be - just Kaknu? Answer - Council must change the Code. VOTE: Motion passed by unanimous consent. Mayor Williams. After several years and many public hearings, I am happy to say we will have the roads paved. Unidentified person. When will it be done? Public Works Director Kornelis. All those other than VIP will start in the Spring. VIP will require utility work. Mayor Williams. There is also $2 Million worth of work to be done at the airport. Finance Director Brown. Council has not picked the payment terms. The time to do this is at the end of the job. Mayor Williams. There has been discussion at Council, some of the payments are very low. We may have immediate payment on very low amounts. Assessments will not go over 12% of actual cost of paving. Unidentified person. Can the streets off VIP be assessed and paved? Public Works Director Kornelis. Only those that are facing the street. Unidentified person. How do we get on paving list? We are off VIP. Mayor Williams. VIP is most expensive. We will have to get more money. C-7 Res. 88-14 - Recommending Passage of Safe Boating Bill MOTION: Councilman Smalley moved, seconded by Councilwoman O'Reilly, to adopt the resolution. There was no public comment. Motion passed by unanimous consent. C-8 Res. 89-15 - Requesting Legislature Enact Comprehensive Tort Reform Legislation City Manager.Brighton. The resolution states this was recrsested by Council, it was not. Council dial not take action on this. Council took no action. C-9 Renewal of Liquor License - KENAI CITY COUNCIL FEB. 15, 1989 PAGE 6 Rainbow Bar & Grill • Oaken Reg Spirit Shop #58 Eagles #3525 Clerk Ruotsala reported the Oaken Keg and the Eagles are current in their taxes. She requested a 30 day extension for the Rainbow Bar. MOTION: Councilwoman O'Reilly moved, seconded by Councilwoman Swarner, to recommend non objection for the Oaken Reg and the Eagles, and request 30 extension for the Rainbow Bar. Motion passed by unanimous consent. C-10 Renewal of Liquor License - Little Ski No Drive Inn Clerk Ruotsala reported they are now current in their taxes. MOTION: Councilman Smalley moved, seconded by Councilwoman O'Reilly, to recommend non -objection for the Little Ski NO. Motion passed by unanimous consent. C-11 Res. 89-16 - Requesting Legislature Grant Relief to Municipalities and Local Governments from AK 47-37, as a Result of the Supreme Court Is Ruling in the Busby Case MOTION: Councilwoman O'Reilly moved, seconded by Councilman Smalley, to adopt the resolution. There was no public conmtent. Motion passed by unanimous consent. D. COMMISSION/COMMITTEE REPORTS D-1 Council on Aging None D-2 Airport Commission f. Mayor Williams asked about the Peninsula Cruisers. Airport Manager Ernst. The have requested the north ` end of Willow St. as a cruising area. Also, item 6-d this was not the reacquisition of land, it was the acquisition. Mayor Williams. With the new '. administration, we will have to start the homeporting issue..over again. D-3 Economic Development Commission Mayor Williams. He will be appointing new members soon. D-4 Harbor Commission KEN -AI CITY COUNCIL FEB. 15, 1989 PAGE 7 Mayor Williams. The study by Mr. Coughenower will be ready soon. It will not be for the last 2 seasons. He has a problem with getting information from the State. D-5 Library Commission Librarian DeForest. There will be a State conference in Homer March 3. There will be a Trustees Day, all members of the Council are invited. There will be 119 librarians, 140 vendors. D-6- Recreation Commission None D-7 Planning &.Zoning Commission None D-8 Misc. Conan\Comm a. Councilwoman Swarner. The Beautification Coimn. has asked that the back of the "Welcome to Kenai" sign state "Thank You for Visiting Kenai." Mayor Williams suggested the Beautification Comm. come up with ideas. Councilwoman O'Reilly. With the angle, would you see it from the road? Councilwoman Swarner will discuss it at the next Beautification Comm. meeting. Mayor Williams. What is the cost of a light for the "Welcome to Kenai" sign? Public Works Director Rornelis. About $2,000 for transformer and pole. b. Mayor Williams. I am working on a program for enhancement of the old skating area at the bottom of the gully below the ball parks: a park with ski & sled trails and a pond. Councilwoman Swarner. That should go to the Recreation Comm. Mayor Williams. The Beautification Comm. is interested in Lawton Strip. it will need top soil. Mayor Williams. I have had Phil Bryson design the preliminary drawings (for a park in the old skating area). There will be wetlands and stream rehabilitation work, and fish ladders. It could be done as a JTPA project, also summer youth employment and Wildwood prisoners. Councilwoman Swarner. Is this part of the land trade with the *State? Mayor Williams. Part of the reason to get this on paper is, when we have to discuss we have a better position to arbitrate. Since our last correspondence to them they have not written back. E. E-1 Regular Meeting, Feb. 1, 1989 Approved by Consent Agenda F. CORRESPONDENCE F-1 Sen. Stevens - P-3 Orion Project, Job Corps Site, Alaska Conference of Mayors KENAI CITY COUNCIL Me 15, 1989 PAGE 8 Approved by Consent Agenda. F-2 Sen. Uehling - Railbelt Assistance & Recovery Act Mayor Williams. Sen. Uehling has 3 bills regarding the Railbelt. He would like some support from the Railbelt areas. The Railbelt fund will probably not withstand the onslaught of the Legislature. Council agreed to have Administration prepare a resolution. F-3 AK AAMC President Drexler - AAMC Meeting in Anchorage F-4 AK C&RA Commissioner Hoffman - FY 89 Municipal Assistance Payment Approved by Consent Agenda. F-5 Girdwood Bd. of Supervisors - Accelerate Improvements on Seward Hwy (Girdwood to Bird Creek) No action taken by Council. G. OLD BUSINESS None H. NEW BUSINESS H-1 Balls to be Paid, Bills to be Ratified MOTION: Councilwoman O'Reilly moved, seconded by Councilman Smalley, to pay the bills as submitted. Motion passed by unanimous consent. H-2 Requisitions Exceeding $1,000 MOTION: Councilwoman O'Reilly moved, seconded by Councilwoman Swarner, to approve the requisitions as submitted. Motion passed by unanimous consent. a H-3 Ord. 1306-89 - Amend. KMC Title 14 - Bed & Breakfast Establishments H-4 Ord. 1306-89 - Amend. KMC Title 14 - R/V Parks Approved by Consent Agenda. H-5 Disc. - Jesse Wade Request - Dena'Ina Pt. S/D Admin. Asst. Howard distributed 2 memos from Finance Director Brown and the request from Jesse Wade. City Manager Brighton. He has an opportunity on the basis of partial releases to get a release on one property with an additional $1,800 and turn the remainder back to the City. He has paid $280,000 to the City, 100 will be lost. Mr. Brighton and Finance Director Brown recommend partial release on Tract B-8 and turn the -- remainder back to the City. Mayor Williams. Should the Administration prepare a document after recognizing the special request from Mr. Wade for review? City Manager Brighton. I am not sure this is appropriate. I. received a call from him this date altering his _ ..: KENAI CITY COUNCIL FEB. 15, 1989 PAGE terms. He wanted to change the terms, Council should decide first. MOTION: Councilman Smalley moved, seconded by Councilwoman Swarner, that Administration work out a proposal for partial release for Jesse Wade for Lot 8-8 regarding his letter, and take back the remainder of the real estate involved. Atty. Rogers. Whether or not the Council will let him rescind, he wants permission to do so. Mayor Williams. _ Dave Brown is involved with one of these tracts, could he speak regarding this? Council agreed to have Mr. Brown speak. Dave Brown, Kenai. I am speaking on my behalf only. I am offering an alternative that could be beneficial to the City. Mr. Wade has made this offer so he can bring himself out of a hea,ry burden on monthly payments. But if the City goes this route, they will be losing income on a monthly basis. I feel the land is marketable as it is now. If it goes back to the City and has to be paid out at depressed value, the City may be sitting on it for several years. He requested a one month moratorium on payments to allow me to get together to take over this property. Mayor Williams. To assume Mr. Wade's obligation? Dave Brown. Yes, or at least to put together a partnership to do this. Atty. Rogers. We have a land disposal system that does not provide for this. I would caution Council on exceptions to the Code. Mayor Williams. Is Mr. Wade current? Answer - yes. Dave Brown. It would happen in one month. Finance Director Brown. The City did not initiate this process. They will not be doing anything in one month. You can do something with Mr. Wade, the City will not be party to this. Dave Brown. It is pressure on his side. Finance Director Brown. The City will not take action in one month. Dave Brown. He is in a hurry to bow out of payments. He wants to do this before the next payment. City Manager Brighton. The motion of Council has not been voted on yet. It is to arrange partial release on B-8 and take back all the real estate. Why would we not act on this in 30 days? Finance Director Brown. We cannot take it back. He has not offered. City Manager Brighton. He will be as soon as possible. Finance Director Brown. The City may proceed on these lines. Control on this is in Mr. Wade's hands. City Manager Brighton. If Council agrees to the proposal, he will follow up immediately. Atty. Rogers. Council directed mutual rescission of property with partial release of one lot. Councilman Smalley. If Mr. Brown and Mr. Wade meet, that is not up to us. Finance Director Brown. It is up to Mr. Wade to take the next step. I would like to make sure the motion is for partial release pursuant to _ contract. Atty. Rogers. We are not negotiating. This is a mutual decision to take back the land. Do not suspend the contract relative to payments. MOTION, Additions Councilman Smalley moved, with consent of second, to add to the end of the motion, "pursuant to contract." KENAI CITY COUNCIL FEB. 15, 1989 PAGE 10 Councilwoman O'Reilly asked that Administration prepare the paperwork and bring it back to Council. Mayor = Williams. That will give Mr. Wade time to negotiate. VOTE: Motion, with addition, passed by unanimous consent. H-6 Approval - Airport Terminal Renovation - Change Order #1 - Asbestos Removal Public Works Director Kornelis. We are asking for approval of the change order and to In crease the dprod ed.+ not -to -exceed figure for extra work Councilwoman O'Reilly. Why is an architect required to remove asbestos? Public Works Director Kornelis. That is for work done to this point: testing, paperwork, extra inspection. Councilman Smalley. Is it possible they will find more? Public Works Director Kornelis. I cannot say, but I doubt it. Councilwoman Swarner. Councilwoman Monfor told her she thought the cost was high. Public Works Director Kornelis. The contractor receiyed at least one other bid, it was $3,700 higher than this. it is costly for removal and disposal of asbestos. Councilman Smalley. They have to have temporary walls and special suits. Mayor Williams. Are you satisfied that there is no more asbestos? Architect Kluge. Yes. I don't see any more. Since last Council meeting, they had taken a sample downstairs, the tile had been replaced and was not the age of the other tiles. But the majority is asbestos. MOTION: Councilman Smalley moved, seconded by Councilwoman O'Reilly, for approval of $21,840 for the airport asbestos problem and for architect fee as outlined in the letter. Motion passed unanimously by roll call vote. H-7 Approval - Boating Facility Project - Increase in Engineering - Wm. Nelson Engineering Mayor Williams. There are sufficient funds for legal fees. The claim in the law suit is $2,254. Public Works Kornelis. It would be well worth it if and when it.goes to court. He recommended approval. Finance Director Brown. It was approved, this is for information. MOTION: Councilman Smalley moved, seconded by Councilwoman O'Reilly, to pay $2,254 fee for Western Marine vs City of Kenai. Motion passed unanimously by roll call vote. H-8 Games of Chance & Skill - Moose Lodge #1942 MOTION: Councilman Smalley moved, seconded by Councilwoman O'Reilly, for non -objection of the application. Motion passed by unanimous consent. a 6 a. The Legislature is moving ahead with the budget, they have cut $200 Million, they will borrow $300 Million from the Permanent Fund. They are planning to go after Municipal Assistance and Revenue Sharing, *.t is not sacred. The Governor and Legislature are meeting Feb. 18 at the high school. His trip report was in the packet. The State has $1 Billion on hand. b. There are 2 seminars in Anchorage in March. He would like to attend the seminar on "How to Make - Powerful Presentations." He is dealing with powerful forces in the Legislature. We have the money in the budget. Councilwoman Swarner. you going to lobby? Mayor Williams. This is to lobby the Legislature more expertly. Council had no objection. c. Alaska Airlines Port Page. The cost is $385+. I had planned to run an ad in the April issue of Alaska Airlines magazine; black & white, 1/6 page. Councilman Smalley. I spoke against this. We had one for $1,700 that ran up to $2,600. At this point, everybody that is involved with the harbor knows about it. I don't think we are gaining that much from this ad. Mayor Williams. I had anticipated this would come out of the boating fund. Public Works Director Rornelis. I thought it was to come out of advertising budget of $6,000 that was to be used for brochures. We did not do the brochures. Councilwoman O'Reilly. Who would read this? Commuters and travelers would not use it. Mayor Williams. One of our large sources of income is fuel, we advertise this. We anticipate increasing fuel sales this year. one fuel sale profit was enough to pay for this 3 times. councilwoman Swarner. It should be out of the advertising budget and not exceed $400. Public Works Director Rornelis. The last ad did not give all details. This is directly with Alaska Airlines, not a public relations firm. Mayor Williams. The public relations firm changed the fee. Councilwoman Swarner. Will there be change for doing up the ad? Answer - no. MOTION: Councilwoman Swarner moved, seconded by Councilman Smalley, to put the ad in the magazine, not to exceed $400. Motion passed by unanimous consent. d. The Bicentennial pins. There was a question as to use of the logo. Yes, we do own it. This is the standard logo that we own. Ms. Odd has said she will sell us rights to all for $500. This will be City, Bicentennial and Chamber of Commerce purchase, $900.for 1,000. Council had no objection. • ■- KENAI CITY COUNCIL FEB. 15, 1989 PAGE 12 e. The color of the letters in the airport sign. Wildwood Prison metal shop will build - 2 ft. high, concrete imbedded. Councilwoman Swarner. Can I take this to the Beautification Comm.? Mayor Williams. Gold has been proposed. f. The reception for the Russian representatives is Thursday, Feb. 23, at Mr. D's, sponsored by the Bicentennial Visitors & Convention Bd. • g. Regarding the proposed Senior Citizen Program. EDC wants direction as to importance. The senior Housing report has been distributed to Council and EDC. Councilwoman Swarner. As a long term goal it is good. But we should not be giving EDC goals. They should be setting up their own. Mayor Williams. Their concern is Council directed them to only pursue to a point and they had to come back to continue. They don't want to start major projects if Council does not feel it is worth pursuing. Councilwoman Swarner. We should not be telling them what to do. Only as a long term project. h. Mayor Williams requested Council review his material distributed this date. i. The Senate Finance Committee met reg&xding the Governor's capital budget. Kenai's $1 Million request is still in there. I-2 City Manager None I-3 Attorney Atty. Rogers spoke. a. The Dairy Queen RFP ad will be in Friday's paper, a 10 year lease with option to purchase. The lease is $1,600. One time premium paid over the above minimum, they will be able to enter into a lease option any of the 9 years in the 10 year lease. b. The airport RFP ad will be in the paper Friday, the bar, restaurant and gift shop. An 8 year lease. The bar $2,500, the restaurant $10500, the gift shop is higher. Airport Manager Ernst. $2,500 minimum for the bar, $1,500 for the restaurant. One time premium to be paid, the highest is the winner for the gift shop. An 8 year term in the restaurant and bar equipment is depreciated for one more year. Mayor Williams. They are furnishing the equipment? Answer - yes. Atty. Rogers. We stay out of their books. Before it was based on a revenue basis. We*do not want this. a. (contd) We did not have a minimum on the Dairy Queen. We probably should have. It may be too late to change this. Mayor Williams. How did you arrive at the bid? Atty. Rogers. 6% of appraised value. Admin. Asst. Howard, property and building. b. (contd) Mayor Williams. What is the airport RENAI CITY COUNCIL FEB. 15, 1989 PAGE 13 minimum? Airport Manager Ernst. The bar in sq. footage is less than the restaurant but more lucrative. The bar is 1,621 sq. ft., @ $1.65 per sq. ft. is $1,915. The restaurant is 1,735 sq. ft., at the same rate it is $2,800. The previous owner paid $4,100, we thought $2,500 was a good figure. We wanted to keep the rate reasonable to help them make f it. The as ts, at $2,800 was excessive. $1,500 seemedreaonable. The gift shop, based on 300 sq. ft. at $1.65 ra te is $495. Councilman Smalley. Who owns the liquor license? Atty. Rogers. It goes with the bar. ABC was demanding a license. We got off the license. ABC said it isle convenience license They have travelers, it goes with p to have a lease with us. Councilman Smalley. Do they attach liability to the City? Atty. Rogers. By owning the premises only. c. Regarding litigation ss claim tha golf Mr- Morgan has a cro we need to indemnify him. d. Information on the Jackson case is in the packet. _ It will be national covaiaPeninsula Borough)e* Maor The title is wrong (Ken Atty. Rogers. The Borough enjoined it. e. Friday's Peninsula Clarion will have the foreclosure list in it. f. AML called regarding the Busby case. There will be testimony Feb. 16. Lobbyist Reed is working on it. There will be another hearing. The Governor wants language that holds cities to pick up and protect people against themselves. I said there was no ground for compromise in AML legislation. I-4 City Clerk Clerk Ruotsala spoke. a. Item F-3. The International Institute of Municipal Clerksnference inwill bving their Anchorage in 1994. international This is a large group, and quite a success for the Alaska clerks. b. A telephone poll was conductedapproval to issue2a purchase requesting Council app order to Kenai Electric for $1,625 for heat tape from the airport terminal building to a manhole on Willow St. 3 members were out of tons, lilly � Monforn Measles & Smalley, Councilwomen O'Re voted yes. C. There will be a potluck for the Soviet guests on Feb. 21 at Soldotna Elementary, Council is invited. d. There will be a Unocal reception in Anchorage Feb. 22, Council is invited. e. Mayor Williams urged Council to attend as many functions for the Russians as possible. We have Bob Williams to thank for the reception ion gd,t on by the Bicentennial visitors & Chairman Kobetes has said he wanted to specifically come to Kenai. KENAI CITY COUNCIL MM. 15, .1989 PAGE 14 I-5 Finance Director None - I-6 Public Works Director Public Works Director Kornelis spoke. a. OSHA had an inspection of Public Works buildings. They complimented them on their operation. There may be a few things in the report. b. The dock project - parking and staging area will go out to bid March 29. It will cost more than $85,000, approximately $130,000 to $140,000. I-7 Airport Manager None J. DISCUSSION J-1 Citizens a. Ed Call, 1202 Lilac, Kenai. I have been trying to get a street light in our subdivision, especially while school is on. There is a pole and transformer near the corner where the bus stops, one light would do. With the school bus stopping, it is real bad out there. This is at the corner of Lilac and Cook Inlet View. Public Works Director Kornelis will check on this. J-2 Council a. Councilwoman Swarner. Regarding Mayor Williams' report (item I-1), I did not attend the breakfast with the legislators. b. Councilwoman Swarner. I visited the State Library, tourism department and APOC offices in Juneau at the AML Legislative meetings. The Legislature is not in favor of State: sales tax. Talking with the local legislators, they are very interested in keeping in closer contact with local people. Would Council like a weekly teleconference at 6:30? Mayor Williams. We have not had them on a regular basis. We.could discuss with the whole Council. Council agreed to discuss this. Councilwoman Swarner will spearhead this. c. Councilwoman Swarner. AML wants the City lobbyist to lobby for all AML platforms. Atty. Rogers. That was discussed. I am opposed. We are paying Mr. Reed for special things. There is policy being made by AML at these meetings. We may want to push AML to take part of this, but there is plenty of time to do this. Mayor Williams. Our lobbyist will lobby those things we request and those that are sensitive to us. One of my reasons for involvement with Alaska Conference of Mayors is we have the same vote as all cities. d. Councilman Smalley. Items H-3 and H-4 refer to R/V parks and Bed & Breakfast Establistments. He asked Council to review them. Mayor Williams. Thanks to P&Z for getting there out in a timely manner. Mayor Williams. i will be absent from the March 1 meeting. Mayor Williams acknowledged the student representative from KM b