Loading...
HomeMy WebLinkAbout1989-05-03 Council MinutesMW3 AGENDA KENAI CITY COUNCIL - REGULAR MEETING MAY 3, 1989 - 7:00 PM A. CALL TO ORDER 1. Pledge of Allegiance 2. Welcome to Students 3. Roll Call a. Students b. Council 4. Agenda Approval 5. Consent Agenda *All items listedroutine andnon-controversial by nts considered to b the Council and will bepaiscussion of theseroved bone motion. There will be no separate items unless a Council eb removebe d d fromthe so sn which case the item will Consent Agenda and considered iofits thenormal General sequence on the agendapart Orders. B. SCHEDULED PUBLIC COMMENT (10 Minutes) C. PUBLIC HEARINGS 1. Ordinance 1315-89 - increase Rev/Appns - Library 1 Books, Donation - $1,8 2. Resolution 89-36 - Authorizing Participation in State Day Care Assistance 3. Resolution 89-37 - Setting Percentage of Fair Market Value on Lease of City -Owned Lands 4. Resolution 89-38 - Award Inspection - LCK Project - Wince, Corthell & Bryson - $57,760 5. Resolution 89-3Award & Assoc.Ing�64t108 VIP Project - McLane 6. Resolution 89-40 - Award Inspection - E. Aliak, Highbush - M. Tauriainen - $20p684 7. Resolution 89-41 - TransfeProjects rFunds for Inspection & Surveying - VIP, LCK, HA j s 8. *Transfer of Liquor License - Kenai Joe's 9. *Transfer of Liquor License - Mr. D's D. COMMISSION/COMMITTEE REPORTS 1. Council on Aging 2. Airport Commission 3. Economic Development Commission 4. Harbor Commission 5. Library Commission 6. Recreation Commission ission 7. Planning & Zoning COMM Commissions/Committees 8. Misc. a. Welcome to Kenai Sign E. MINUTES 1. *Regular Meeting, April 19, 1989 2. *Special Meeting, April 24, 1989 F. CORRESPONDENCE a. OLD BUSINESS H. NEW BUSINESS 1. Bills to be Paid, Bills to be Ratified 2. Requisitions Exceeding $ .000 3. *Ordinance 1316-89 - Increase Rev/Appns - Council on Aging - $3,471; Decrease Rev/App Employment Fund - $5,912; D45rease Rev/Appns - Senior Day Care Fund - $ . 4. *Ordinance 1317-89 - Amend Kenai Municipal al_Code, Title 23 - Increase Employer on Supplemental Retirement Plan 5. *Ordinance 1318-89 - Increase Rev/App s — Shipping Costs for Donated Museum Artifacts 6. *Ordinance 1319-89 - Increase Rev/Appns - Susieana Lane Paving - $42,000 Airport 7. Ordinance 1320-89 - Increase Rev/Appns Terminal Renovation: 1) Bar & Restaurant Furniture & Equipment, 2) Change Order #51 3) Contingencies - $187,000 _ Ord. 1320-89 a. Public Hearing Jackson 8. Approval - Lease AmondstrBidlFurnishings & 9. Approval - Kluge Proposal - Equipment - Airport Bar & RestaurntRenovation 10. Approval - Airport Terminal Renovation Order #5 ueen Facility RFP 11. Discussion - Dairy Q 12. Approval - Regional Conference, ASaska Recreationoners Parks Assn. - Registration for $275 _. ADMINISTRATION REPORTS 1. Mayor 2. City Manager 3. Attorney 4. City Clerk 5. Finance Director 6. Public Works Director 7. Airport Manager J. DISCUSSION 11 Citizens 26 council K. ADJOURNMENT 0 KENAI CITY COUNCIL - MINUTES - REGULAR MEETING MAY 3, 1989 - 7:00 PM KENAI CITY HALL MAYOR JOHN J. WILLIAMS PRESIDING Student Mayor Arbuckle called the meeting to order. A-1 Pledge of Allegiance A-2 Welcome to Students Mayor Williams introduced the Student Government Day representatives. A-3 Roll Call a. Students Present: Tassita Arbuckle, Curtis Bernu, Chris Blanke, Duke Hanson, Jason Huff, Todd Parsons Absent: Lisa Ines b. Council Present: Ray Measles, Chris Monfor, Marj O'Reilly, Linda Swarner, John Williams Absent: Art McComsey (excused), Hal Smalley (arrived late) A-4 Agenda Approval a. Student Rep. Hanson. Item H-4 (Ord. 1317-89) was distributed this date. MOTION: Student Rep. Hanson moved, seconded by Student Rep. Huff, to approve the agenda as submitted. Motion passed by unanimous consent. A-5 Consent Agenda MOTION: Student Rep. Hanson moved, seconded by Student Rep. Bernu, to approve the Consent Agenda as submitted. Motion passed by unanimous consent. D. COMMISSION/COMMITTEE REPORTS D-1 Council on Aging Councilwoman Swarner. There will be a meeting 5-8-89. The fashion show scheduled for 5-6-89 is sold out. D-2 Airport Commission Councilwoman O'Reilly. There was a meeting 4-20-89, there was not a quorum. D-3 Economic Development Conmtission KENAI CITY COUNCIL MAY 31 1989 PAGE 2 Mayor Williams. They are working with the Kenai Borough regarding an economic impact study. Penny Dyer has resigned from the Commission. D-4 Harbor Commission Atone D-5 Library Commission Councilwoman Monfor. They made $1,000 at the book sale. The library will be celebrating its 40th birthday 5-22-89, D-6 Recreation Commission None D-7 Planning & Zoning Commission D-8 Misc Comm/Comm a. Councilwoman Swarner, Beautification Committee. They have asked for Council action on the back of the "Welcome to Kenai" sign. There is money in the budget. MOTION: Student Rep. Hanson moved, seconded by Student Rep - Huff, to accept the proposal from Guf Sherman for the sign and have it installed. Motion passed by unanimous consent. E. MINUTES E-1 Regular Meeting, 4-19-89 E-2 .Special Meeting, 4-24-89 Approved by Consent Agenda. F. CORRESPONDENCE None G. OLD.BUSINESS None ii. NEW BUSINESS H-1 Bills to be Paid, Bills to be Ratified MOTION: Student Rep. Parsons moved, seconded by Student Rep. Burnu, to approve the bills as submitted. Student Rep. Hanson. How long does the food from Anchorage Cold Storage cover for? Mayor Williams. That is listed under item H-2. Motion passed by unanimous consent. H-2 Requisitions Exceeding $1,000 ■ K33NAI CITY COUNCIL MAY 3, 1989 PAGE 3 • Student Rep. Hanson. How long does the food from Anchorage Cold Storage cover for? Senior Citizen Program Director Porter. It costs $40,000 for food for one year for 22,000 meals. She is hoping for another appropriation. This will cover them for one week. Student Rep. Hanson asked about the emergency food -from Mega Foods. Mrs. Porter. This is emergency food and shelter funds from the Federal Govt. It will be bulk buying, mostly meat. MOTION: Student Rep. Parsons moved, seconded by Student Rep. Hanson, to approve the requisitions as submitted. Student Atty. Carter asked about the Rec Center roof repair. What was the damage and what caused it?. Recreation Director McGillivray. With a tarred roof, it weathers and begins leaking, they have to hot -mop it. Motion passed by unanimous consent. I. ADMINISTRATION REPORTS I-1 Mayor Student Mayor Arbuckle. The day was very interesting. I have learned more than I expected to and I am still trying to learn. I have enjoyed representing the Mayor, but it is hard. I I-2 City Manager Student Manager Estes. I realized how much work goes into City government, the time and work that is involved. I-3 Attorney Student Atty. Carter. I talked about some of the cases and how much he enjoys his work here. I-4 City Clerk Student Clerk Jolly. It is an extremely hectic job. I stayed. there for one hour, and she did not complete one sentence without interruption. We were taken on a tour of City facilities. Thanks to Mayor Williams for making this possible. I-5 Finance Director None I-6 Public Works Director None I-7 Airport Manager None J. DISCUSSION J-1 Citizens None KENAI CITY COUNCIL MAY 3, 1989 PAGE 4 J-2 Council a. Student Rep. Hanson. My street is not paved. The City limits go down the middle of the road. (Strawberry Rd.) Public Works Director Rornelis. The City does not maintain that road, the State does. b. Student Rep. Blanke. Thank you for participating and letting us participate. All student representatives agreed with the statement. RECESS: Meeting recessed 7:25 PM: Student representatives completed their agenda. COUNCIL CONVENED IN REGULAR SESSION: 7:30 PM. A-4 Agenda Approval a Council approved the agenda as submitted, by unanimous. consent. A-5 Consent Agenda Public Works Director Rornelis. Item E-1 (Minutes, 4-19-89), page 3, paragraph 3, last sentence, should read, "We used to ask $1 Million for roads and $2 Million for buildings." MOTION: Councilwoman O'Reilly moved, seconded by Councilwoman Swarner, to approve the minutes of 4-19-89 as amended. Motion passed by unanimous consent. Consent Agenda was approved by unanimous consent. ADDED ITEM: Mayor Williams asked if Council wished to take any further action on the actions of the Student Council members. There was none. VOTE Approval of Actions of Student Council: >:= Approval was by unanimous vote of Council. C. PUBLIC HEARINGS . C-1 Ord. 1315-89 - Increase Rev/Appus - Library Books, Donation - $1,800 MOTION: Councilman Measles moved, seconded by Councilwoman Swarner, to adopt the ordinance. There was no public comment. Motion passed unanimously by roll call vote. C-2 Res. 89-36 - Authorizing.Participation in State Day -Care Assistance MOTION: KENAI CITY COUNCIL MAY 3, 1989 PAGE 5 Councliwoman.Monfor-moved, seconded by Councilwoman O'Reilly, to adopt the resolution. There was no public comment. Councilwoman Monfor. Is this.something we do every - year? City Manager Brighton. Yes, it is $176,000 per year. Motion passed by unanimous consent. _ C-3 Res. 89-37 - Setting Percentage of Fair Market Value on Lease of City -Owned Lands MOTION: Councilman. Measles moved, seconded by Councilwoman Monfor, to adopt the resolution. There was no public comment. Motion passed by unanimous consent. C-4 Res. 89-38 - Award Inspection - LCK Project - Wince, Corthell & Bryson - $57,760 MOTION: Councilwoman O`Reilly moved, seconded by Councilwoman swarner, to adopt the resolution. There was no public comment. Mayor Williams. We have 3 of these resolutions for award and inspection to Wince-Corthell-Bryson, McLane, and Tauriainen. They are followed by resolutions for transfer of funds for inspection and survey. These projects were all put together by the engineers, we are going to have to transfer $170,000 above the original cost. He asked Public Works Director Kornelis for the reason. Public Works Director Kornelis. In 1987 we went out for engineering on 6 projects and received proposals. We have normally gone to the same engineer as we had for design work, we asked the design firms for proposals. McLane asked for joint work with Wince, Corthell & Bryson. Mayor Williams. Why the cost overrun? Public Works Director Kornelis. We started in 1987 and asked for proposals now. The prices have gone up from the original estimate. All 3 are not -to -exceed figures. Mayor Williams. We are extending a courtesy of contracts on inspection to the same as design? Public Works Director Kornelis. The figures we put in the original budget were just estimates. Motion passed by unanimous consent. C-5 Res. 89-39 - Award Inspection - VIP Project - McLane & Assoc. - $64,108 MOTION: Councilwoman Monfor moved, seconded by Councilman Measles, to adopt the resolution. There was no.public comment. . S i KENAI CITY COUNCIL MAY 3, 1989 PAGE 6 Motion passed by unanimous consent. C-6 Res. 89-40. Award Inspection - E. Aliak, Highbush - M. Tauriainen - $20,684 MOTION. Councilwoman Swarner moved, seconded by Councilwoman Monfor, to . adopt the resolution. There was no public comment. Motion passed by unanimous consent. C-7 Res. 89-41 — Transfer Funds for Inspection & Surveying -VIP, LCR, HA Projects MOTION: Councilwoman Monfor moved, seconded by Councilwoman Swarner, to adopt the resolution. There was no public comment. Mayor Williams. The appropriation amount is taken from contingency of other projects, moneys that were already tied to the project? Public Works Director Kornelis replied yes. Motion passed by unanimous consent. C-8 Transfer of Liquor License - Kenai Joe's C-9 Transfer of Liquor License - Mr. D's Approved by Consent Agenda. D. CONMISSIONICOMMITTEE REPORTS D-1 Council on Aging Program Director Porter. We are preparing to make the Senior Center available for rent. I received a phone call last week that Council will have to make a decision on. Nordstroms wants to put on a style show of children's clothing. I asked why they wanted it in Kenai. It is because they have many customers in G Kenai. Councilwoman O'Reilly. How would it operate if they did it? Would they be selling merchandise? Mrs. Porter. I did not ask. They would like to come down a day ahead of time to prepare. Estee Lauder came down and was very successful. Councilwoman O'Reilly. I have no objection. We want to help local merchants but I do not see any competition. Councilman Measles. I have an objection. For years K the City has been trying to promote local shopping. The City is stepping out of bounds to encourage Nordstroms in Anchorage. They would take a lot of heat from local merchants. 0 Councilwoman Monfor. Do we have a lease drawn up for this? Atty. Rogers. Was there a time line for Nordstroms? Mrs. Porter. The show is to be the middle of August. Atty. Rogers. The lease documents are not ready. As of this date, the facility is not available. I would not represent it as available. I was told it would be occasional use when other facilities were not available, receptions and things of this nature. City Manager Brighton. If they brought inventory they would need a business license and would have to pay sales tax. If they did on an order basis, they would ship down and not pay sales tax or a business license. if you do this, you are creating a furor in the business area. Atty. Rogers. Are orders taken at the style shows and shipped from other areas? Councilwoman O'Reilly. Does a catalog business have to pay sales tax? Atty. Rogers. It depends on the State. 20 states have this law. It is still state by state. Councilwoman O'Reilly. There is no ordinance in the State? Atty. Rogers. No, we would have a hard time enforcing one. City Manager Brighton. We have no State sales tax. Atty. Rogers. It also gets into federal law regarding Green River ordinances. Mrs. Porter. If Council decides not to allow this, it would not make any difference if they went to a private place? They could go where want to? City Manager Brighton. They become involved with an Itinerant Merchants license then. The Clerk has to enforce. Mrs. Porter. They were here last October. Clerk Ruotsala. They did not get a license. I do not have enforcement powers. Councilwoman Monfor. When we are talking City facilities, we have to set a policy. Clerk Ruotsala reviewed the Itinerant Merchant requirements. Also, there is a policy regarding use of City Hall, there is no charge. Mrs. Porter. The reason for renting is to earn money. City Manager Brighton. We have 2 questicns: 1) The rent for retail commercial. 2) The rent for service -type use. They should be addressed separately. Councilman Measles. I think the City should have a policy for all city buildings that they not be used for sale of merchandise. The City has no business in that type of business. Councilwoman Swarner. When it was brought to my attention regarding Nordstroms I thought it would be for sale and we receive sales tax. I had not anticipated order taking. Councilwoman O'Reilly suggested a work session regarding this. Mayor williams suggested Mrs. Porter meet with Administration to develop ground rules for utilizing of the Senior Center for lease, develop a format for leasing policy, types of leasing (wedding receptions, etc.). We have a lot of retail space available. I hate to become involved with outside businesses competing with local business. Mrs. Porter. I am concerned about time. When I brought this to Atty. Rogers, it was a 1-1/2 months ago. I have had 2 people that wanted to rent. One is for June. I would hate to delay too long. Mayor Williams suggested Administration prepare the necessary ground rules for leasing, Mrs. Porter and Council agree, how and to whom. We could allow some discretion by Administration but not for cormaercial ventures. Have the outline drafted, basic policy set in place for I KI.`tJAI CITY COUNCIL MAY 3, 1989 PAGE 8 May 17 meeting? Councilwoman Monfor. We will not have a full Council. Atty. Rogers. It is contingent on non-commercial use for the present. I will have it within 1-1/2 months. If liquor is served, they will have another set of circumstances. I would have to go to an insurance broker. Without alcohol, we are ready to go. Mayor Williams. In preparing the ground rules for leasing, there will not be allowed dispensing of alcohol by individuals? Atty. Rogers. That is what we are trying to get worked out. We are trying to get the use of another business liquor license. Mayor Williams. How soon is the 1st wedding? Mrs. Porter replied, June 3. Atty. Rogers. Proceed with this for non-commercial use, and complete by next week? Council agreed. D-2 Airport Commission D-3 Economic Development Commission D-4 Harbor Commission D-5 Library Commission D-6 Recreation Commission D-7 Planning & Zoning Coamni.ssion D-8 Misc. Comm/Comm completed by Student Government representatives. E. MINUTES E-1 Regular Meeting, 4-19-89 E-2 Special Meeting, 4-24-89 Approved by Consent, Agenda. F. CORRESPONDENCE None G. OLD BUSINESS None H. NEW BUSINESS H-1 Bills to be Paid, Bills to be Ratified H-2 Requisitions Exceeding $1,000 Completed by Student Government representatives. H-3 Ord. 1316-89 - Increase Rev/Appns - $3,471; Decrease Rev/Appns - Senior Council on Aging - Employment Fund - $5,912; Decrease Rev/Appns - Senior Day Care Fund - $1,745 H-4 Ord. 1317-89 - Amend RMC Title 23 - Increase Employer Contribution - Supplemental Retirement Fund H-5 Ord. 1318-89 - Increase Rev/Appns - Shipping Costs for Donated Museum.Artifacts - $212 H-6 Ord. 1319-89 - Increase Rev/Appns - Susieana Lane Paving - $42,000 Approved by Consent Agenda. H-7 Ord. 1320-89 - Increase Rev/Appns - Airport Terminal Renovation: 1) Bar & Restaurant Furniture & Equipment, 2) Change Order #5, 3) Contingencies - $187,000 Counc3.1WOman V " Measles, to introduce moved, seconded by Councilman the ordinance. e? City Mayor Williams. Is there $187,CouncillmanbMeasles- Manager Brighton replied yes. did we arrive at that There is $154,000 estimate. now ner? public Works Director Rornelis. From the architect's consultant. Mayor Williams. Has this been before the Airport Conuai,ssion? Airport Manager Ernst. They will be been given the actual figure, but they before Council. Mayor ,Williams.. ? AirportThey Manager Ernst reviewed lay -out design, Will they be able to replied no. Mayor Williams- Manager Ernst. It has before next meeting? there is no need to. already been designed, Councilwoman O'il�lynagt sE reset. urgency? Airport number d bl change enwbefore consent.going Motion pass y NOTION, .Second Reading: any reason for I don't think this out to bid. Councilwoman O'Reilly moevdir seconded Measles, to have a 2nd Motion passed by unanimous. consent. ION, Public Hearing: by Councilman Councilman Measles moved, seconded by Councilwoman O'Reilly, to adopt the ordinance. There was no public comment. Councilwoman Monfor. I will not vote for future change orders and future contingency. Architect Kluge- Funds have been eaten up by the gsible to complete asbestos problem. It not is each without contingency ihoucoming back f additional thing• Councilwoman O'Reilly: When it assusingfirst $125u000 for ht to Council regarding oluil meat • I w both. It is much higher. Mr. Kluge. The actual figure was $126,000 It was the original estimated figure. It was written as one job. Public Works Director Rornelis asked me to review. the hairwent stand kitchen consultant in Anchorage tables for the bar and lounge, kitchen and bar eqtL 'pment. Councilwoman O'Reilly.They are not in the oi inal estimate? Mr. Kluge replied o on the lic Works `� It was just for co Director gornelis. Kluge. The City sold original furniture. Mr - everything in the original bar. The original estimate was to refinish. Councilwoman Monfor. When It stOV toes, refrigerator, equipmennclude t, I thought we mean sinks. I did not include furniture-hobeable pickout the bar and/or restaurant, should the style. The City should not have to depreciate because the customer wants to blar anket UP. for future can understand contingency, but] change orders, no. • • MWAI CITY COUNCIL MAY 3, 1989 PAGE 10 Public Works Director Rornelis. No contingency for chanersrurally we have 10$ have had. They did not have S% to�start wit spent what we us with nothing. We would have with• This leaves meetings before we could to have 2 council pass on every change. Mr- Kluge- $1,500+ is total of change asbestos. Only thins g orders without Council approval are q done in the field without Project- As emergencies that would hold up the diningroom, `it seam r he started excavation for th the asphalt the rip, e PPi.ng out asphalt. 6" below extra charge. old apron. 8e cut this with no line ran se went to the new stairwell through where the col , the sewer the drawings. • The 1981 addition taran. It was not on mostly new buy -kiln the airport was building, it is additional problems. tearing Into the old Airport � f what you Ernst. With renovation, you get into. 8e has you have no to work with U.S.I gone out of his way tableshave no Problem with not furnishin built in nd iitris eBut we had a small contingency g aten up, Councilwoman Monfor. Don't we have Original of when the buildingwas built?have drawings Rornelis. We have one set but they Works Director the building was co y are as-builts after we complete thisWher , w�l We'haveuncilwoman Monfor. can see in the future? a set of drawings so we We have as-builts on all projects Works Director Rornelis. It was over 20 Projects now. Mayor Williams, Years ago. Councilwoman Swarner. leadsea.bles- I have trouble accepting cha' They will not last till the end o chairs future chWhhoe Wange hoever the ordinance f the orders, put in future contingency, Put in Councilwomantcan cy' total cosO Reilly. Ye tables, chairsy°u get a breakdown on s, $126,000 on the original estimate, Mr. . Rluge- NOTION it may be low. Amendment: -- Councilman Measles mo swarner* to amend vim• seconded by Councilwoman delete future c the ordinanCe. in headin <: the orders and/or." g, line 5, Motion passed by unanimous consent, MOTION, Amendment: Councilwoman Monfor moved, seconded Swarlmer, to amend the ordinance he Councilwoman change the amount to $173 000• par' in heading, line 2, amount to $14Q,000; in the totals, 3, change the new amounts. change to reflect Motion passed by unanimous consent. MOTION, Amendment: Councilwoman Monfor moved Measles, to amend the ordinsanecon y reference to furniture. ce by Motion passed by unanimous co,, _ VOTE' Main Motion as Amended: by Councilman deleting any KENAI CITY COUNCIL MAY 3, 1989 PAGE 11 Motion passed unanimously by roll call vote. H-8 Approval - Lease Amendment - CIIAP - R. Jackson Admin. Asst. Howard. The purpose will not change. had as appraisal in 1987. The purpose is a storage We Yard. He wants it for 2 more years. MOTION: Councilwoman Monfor moved, seconded O'Reilly, to approve the lease amendmentooilwoman Motion passed by unanimous consent. H-9 Approval - Kluge Proposal - Bid Furnishings & Equipment - Airport Bar & Restaurant Renovation Mayor Williams asked if this was taken care of under item H-7. Public Works Director Kornelis. That was money, this is approval. award was amendey R- . Councilwoman pubbli.c Works Direr. The tor Kornelis. There would be not be tables and chat do not know if that would affect the bid. hates. I . MOTION: Councilwoman Monfor moved, seconded by Councilman Measles, to approve the not -to -exceed cost of $2,480. Councilwoman Swarner. Are there any other additional comments? Are you recommending against it? Public Works Director Kornelis replied no. Motion passed by unanimous consent. H-10 Approval - Airport Terminal Renovation - Change Or #5 g der Architect Kluge. At the existing bar and restaurant, the original windows were covered with wood. The contract said to remove the wood. Some of the wood would not come off without damage. I asked for 2 prices, one option was to have covers of aluminum on the windows. This is a band aid approach, and the heaters would be over the windows. The other option is to replace the window frames and use the glass that is there. I thought it was best to replace the frames. It will have a lot of public use. Public Works Director Kornelis. My recommendation, because of the cost, is $8,412 (option B). It would look better to go the other route. Councilman Measles. Take $144p000 from the tables and chairs and put new windows in. We have too much mone in the airport now. We should not Y window frames. Patch up on the MOTION: Councilwoman O'Reilly moved, seconded by Councilman Measles, to:approve the change order #5, option A, in the amount of $220f 33. Motion passed by unanimous consent. Architect Kluge showed a sample ofthe replacement carpet. It will be from the existing dining room to r_ - L KI CITY COUNCIL MAY 3, 1989 PAGE 12 O • the side of the baggage area where you come in from the planes. It will look the same where there is not much walking but will show up in the center. Airport Manager Ernst. The problem is we are doing a larger area than we planned. Mayor Williams. Is there a point where you can make a complete cut? Airport Manager Ernst. It would be best about there. Mr. Kluge. I would personally recommend all being replaced now, but under separate projects. Councilman Measles. What would be the cost of the whole thing? Mr. Kluge. 885 yds. of carpet, excluding our project, $22,000. $24.08 per yd. with installing and replacing rubber base. You would have to replace the old part in 2 years. Mayor Williams. It would be new from the rail to the end of the restaurant, old to north end. To the south end is less. It would be cheaper to wait till we have to replace all in 2 years. Mr. Kluge. You would replace 900+ yds. Councilman Measles. Would it disturb the kitchen? Councilwoman Monfor. We might as well do it all now. It will have to be replaced in 2 years. Do it while you have a mess. Mr. Kluge. The carpet has been down 8 years. Mayor Williams. Will we have to pull our counters? Mr. Kluge. We do not have to do behind the counters. Mayor Williams. As long as you are going to replace, is that the color you want? Councilwoman O'Reilly. I like it. Mr. Kluge. They picked it because the airport was so long, the lines would make it look less long. Mayor Williams. Since they are doing it just for us, will it cost more? Mr. Kluge. $1 per yd. more because it is discontinued. MOTION: Councilwoman Monfor moved, seconded by Councilwoman Swarner, to re -carpet that portion of the airport not included in renovation and funding be out of FY 1989 budget. Finance Director Brown. It is not appropriated. it will have to come back with an ordinance. It should be appropriated before we order. I don't know if it has to go back out to bid. Atty. Rogers. In view of the size of the contract, this is small percentage. You can do it as part of this project. Mr. Kluge. $22,000 of a $7000000 project. Mayor Williams. It needs to be done for aesthetic value. MOTION, Amendment: Councilwoman O'Reilly moved, seconded by Councilman Measles, to direct Administration to prepare a change order and ordinance for 1st and 2nd reading at the May 17 meeting. VOTE, Amendment: Motion passed by unanimous consent. MAIN MOTION, As Amended: Motion passed by unanimous consent. KENAI CITY COUNCIL MAY 3, 1989 PAGE 13 H-7 Ord. 1320-89 - Airport Renovation (Reconsider) MOTION, Reconsideration: Councilman Measles moved, seconded by Councilwoman Monfor, for immediate reconsideration of Ord. 1320-89. Motion passed by unanimous consent. MOTION, Amendment: Councilman Measles moved, seconded by Councilwoman O'Reilly, to amend the ordinance by adding a WHEREAS clause between the 2nd and 3rd WHEREAS, to say, "WHEREAS, the Council desires to add $22,000 to add carpet at the airport." Also, change the heading, and add $22,000 to all figures. VOTE, Amendment: Motion passed unanimously by roll call vote. MOTION: Councilman Measles moved seconded by Councilwoman O'Reilly, to adopt the ordinance as amended. VOTE, Main Motion as Amended: Motion passed unanimously by roll call vote. H-11 Disc. - Dairy Queen Facility RFP Atty. Rogers. Mr. Ischi is in the audience. He did not want to proceed with the contract document. Pursuant to that, we commenced with various alternatives. After this, we received written retraction of Mr. Ischi's previous statement, indicating he wished to proceed. At the time he declined, it is my position that discretion was solely with Council. If Council wishes to award, that is their prerogative. I spoke toCity Manager Brighton, I have a packet in front of me, including full length RFp proposal, one with contract damages.limi.tation as okayed, also a short form document RFP bid; I do not like as much as the long form. I have also long term lease for airport lands such as Dairy Queen with improvements. Having drafted these, I have not submitted them. At this time I would ask Council what their pleasure is. I have also a lease agreement here that incorporates change that was authorized last time we directed this issue: "Design Liquidated Damages. The City and lessee agree the lessee shall pay the City an amount equal to 2 years of the then prevailing lease rate -and the City agrees to this amount as a limitation of damages as to rents it would otherwise be due under the terms of this lease." Basically it accomplishes the purposes Mr. Ischi requested and Council authorized. All other terms are as they were. Mayor Williams asked Mr. Ischi to come up. r Counci-1woman Monfor. By this letter, you are coming to us stating that the terms we offered are now acceptable and if we give you a lease, when will you open? Peter Ischi. Yes (to the 1st question). 3 weeks from signing (to the 2nd question) I would like to sign this week. I decided $40,000 to $50,000 was chance I RENAL CITY COUNCIL MAY 31 1989 PAGE 14 r� s would have to take. At the meeting someone questioned 2 year penalty clause. They asked if they could make payments. It was stated they could. Atty. Rogers. There is no provision for that in here. Mr. Ischi, okay. Councilwoman O'Reilly. MY understanding is that at the last meeting, Council, after Mr. ischi declined, instructed Administration to prepare new bidding. Atty. Rogers. We have done that. We did not want to go to a new option in view of Mr. Ischi's change of mind. We have not publicized that. Councilwoman O'Reilly. How can we undo that? Atty. Rogers. You have a discretional thing in front of you now. No detrimental reliance on anyone else. You can accelerate occupancy with Mr, Ischi. You have an option of not proceeding with this -and going out to bid. If you feel his past performance has been obstreperous or it would be detrimental to the City, You have the option of not proceeding with this and going out. Councilwoman O'Reilly. I don't feel Mr. Ischi has been obstreperous and I don't think it would be detrimental to the City if we accept his bid. I would feel more comfortable if we went through the bid process. Councilwoman Swarner. I would feel more comfortable with re -bidding. We offered to Mr. Ischi and he said he was not interested. To be €air to everyone, he has had an opportunity to sign for a long time. It would i be of benefit to the City f it were open. Councilman Measles. It would be in the best interest of the City, in view of bids received the 1st time, we did offer an amendment to Mr. Ischi, it is in the best interest of the City to conclude as it is now. Let's get on down the road. The City does not stand to gain anything by prolonging. Councilman Measles asked Clerk Ruotsala, at the April 24 meeting there was a motion on a 2 year clause. Was there a vote on it? Answer - no. Councilman Measles. We dropped it when Mr. Ischi said no. Atty. Rogers read the clause: "Page 2, Heading - Liquidated Damages. City and lessee recognize that time is of the essence and that the City will suffer loss if operation and maintenance of the premises is not commenced in a timely manner or if lessee vacates, quits the premises or is evicted for a material breach of the lease during the term provided herein. They also recognize the delays, expenses and difficulties involved in proving in a legal proceeding, the actual loss suffered by the City if lessee materially breaches this lease. Accordingly, instead of requiring proof, the City and lessee a ebe that ass ui any such damages but not as a g liquidated an amount Penalty, lessee shall pay the City equal to 2 years of the than prevailing lease rate and City agrees to this amount, a limitation of damages, to rents it would otherwise be due under the terms of this lease." Mayor Williams asked Mr. Ischi if he agreed with this. Mr. Ischi replied yes. MOTION: Councilman Measles moved, seconded by Councilwoman swarner, to approve of the insert of the clause read by Atty. Rogers in the contract with Mr. Ischi on the Dairy Queen property. :.1 -. _ -Affi� .. - f-: KENAI CITY COUNCIL MAY 3t 1989 PAGE 15 Motion passed unanuaously by roll call vote. MOTION: Councilman Measles moved, seconded by Councilwoman Monfort for approval of the leaseof the Dairy Queen property as amended with Mr. Ischi. • VOTE: Councilwoman Monfor. I will support this. We know how long this has been vacant. It is a drain to keep it closed. Delaying for the bid process would not do any. good. Yes: Measles, Monfort Williams No: O'Reilly, Swarner Mayor Williams. Shall we bring back for the May 17 meeting or go out to bid? Atty. Rogers. I have a memo with several ways to go. A short form ad in the paper that it is available, that would circumvent the RFP. It would allow a person to propose a lease agreement under normal proceedings. Or we can go out for premium RFP, that would take longer. We have both prepared. It would probably go with the long form RFP, with improvements. The long form gives us more protection. My preference is a lease agreement. It is an expedited Procedure. The dollar amount is the same.. The appraisal is current, we do not need a new appraisal. We would not have to advertise. It would only need a small ad. Mayor Williams. How long would the time be for lease applications? Atty. Rogers. You would not be in a bid situation. If competing bids, it would go to Council. City Manager Brighton. It would have to go to P&Z. Mayor Williams. It could be at the 5-10 meeting of P&Z, and back to Council by 5-17. Finance Director Brown. They could not have time. Atty. Rogers. Mr. Ischi makes a lease application to the City tomorrow, he has lost his $2,000. He could make a lease application tomorrow, but he has to go through P&Z. Mr. Ischi. $2,000 would not go 11 towards the rent? Atty. Rogers replied yes. Mr. Ischi. Could we wait till next meeting? Councilwoman Monfor. There will still be 2 Councilmembers missing. Mr. Ischi. We are talking $20000 here. Mayor Williams. The reason this did not go through is for several reasons. Since there was only 1 bidder, it would be within Council purview to consider - - - Atty. Rogers. If Council wishes to proceed with these documents, okay. The lease deposit of $2,000 will apply. If he makes a new application tomorrow, under the lease provisions, he has to go through P&Z, he -forfeits $2,000. This is the Code. COUNCILMAN SMAL EY ARRIVED: 10:15 PM. MOTION, Reconsider: Councilwoman O'Reilly moved, seconded by Councilwoman Swarner, in the interest of giving Councilman Smalley an opportunity.to review, to bring up for reconsideration the issue of Dairy Queen. VOTE, Reconsideration: c KENAI CITY COUNCIL MAY 3, 1989 PAGE 16 Motion passed unanimously by roll call vote. Atty. Rogers. At a special meeting regarding Dairy Queen, there was a discussion of inserting a provision Of limitation of damages to 2 han the entire duration. The amendments ars pproved as by Council. Mr. Ischi, indicated that he would not with leasing of the facilities. With that antic Proceed breach of non -executed contract, we proceeded at thery direction of Council to prepare documents for disposition of the Dairy Queen Property. then contacted the cityb Mr. Ischi he had changed his indicating Inhview of hhiiststa min. he was not going to proceed and in view oftrelianncetoft the City on that statement, the option would be with the City as to whether he would be able documents. In consulting with city manage sign the it was decided that should be decided byCouncil. Not knowing what Council would decide, we drafted alternate documents. Another "P (long form or short form) lease under general leasing provisions. We drafted 4 documents. sets of There were not enough votes at this meeting to allow Ischi to proceed under contract documents. Councilman Smalley arrived. There can now be a vote. If Mr. Ischi were'to proceed under lease agreement documents of RFP he has indicated he woult the City, with _'_ _ o Mr. Ischi. I will sign May 4 or May 5. I will Atty. Dolifka and be back no later that May S. iet to called him Monday and said I would be in on Thursday. Atty.'Rogers. Mr. Ischi has indicated he will need 3 weeks occupancy before opening. It will have to P&Z. 6-8 weeks for that procedure. go to proceedings under the RFP it would takethatit would be longest alternative. re -advertise under MY recommendation is we applications to P&Zgtoeselect, havease hato provisions, send Council. one come to Councilman Smalley. At our last meeting, when it was publicly rejected it was my understanding it i re -bid. That.is where I left off. With the situationuldbe we have had with Mr. Ischi thus far: I would ju soon that it go back out for bid and be re -opened under general lease procedures. As he is still interested he can pursue that route. Mr. Ischi. I acted hastily earlier. I thought about it, this is a chance I have to take. re -bidding is the time frame. You makes Theproblem4 m with break even for a couple of months and lose in the rest. It was my fault to turn it down. The cit to gain from this. Once I si Y sti 11 stands am hooked. The city is not taking a risk. Mayor Williams' If we follow this proposal, would everyone interested in leasing the Dairy Queen have the same opportunity as Mr. Ischi? Atty. Rogers replied Yes. Mayor Williams. If we take the short form and run everyone will be able to come forward and make a ' Proposal? Atty. Rogers. But it would not be bidding. Mayor Williams. Anyone out there who is willing to in a lease application would have the same Opportunity g Put as Mr. Ischi. Only thing we are doing is compressing the time frame that this would take place in. Ong Everyone KENAI CITY COUNCIL MAY 3, 1989 PAGE 17 s who is interested will have an equal opportunity. I would prevail on Council to take a careful look at this. It will go to P&Z and then to Council. Councilwoman O'Reilly. If we go with the short form and there is one bidder, it does not have to go to P&Z? City Manager Brighton, correct. Councilman Measles. If we go with the short form, Mr. Ischi loses $2,000 he put up? Mayor Williams replied yes, that is gone. Mr. Ischi. since there is extra Council members, can, they re -vote? Mayor Williams replied yes. Councilman Measles. If the lease is approved tonight, then $2,000 is not lost. Mayor Williams. As we stand now, there is no way Mr. Ischi can recoup without a positive vote. Councilwoman Monfor. Let's go the short form. There is no way that it can go to P&Z next Wednesday if there is more than one. 2 weeks before P&Z, one week for Council, at least 3 weeks for successful bidders to get together. If it is not Dairy Queen, it will have to get back to the main company. Possibly it would not be open till the first of August. One month profit only. We are being unrealistic to think anyone can do this. Also, that building has been empty for over a year. We had one person bid on it. Mayor Williams. The vote is to allow Mr. Ischi the lease. Mr. Ischi. A lot of people think there will not be another bidder. We are postponing and it will cost me another $2,000. Councilman Measles. Mr. Ischi can put in another lease tomorrow, but he may decide not to deal with the City government any more and we will have no bidders. 6 Councilwoman O'Reilly. The bid was awarded to Mr. Ischi, he declined, On tonight's agenda, it was listed as discussion of Dairy Queen. Mr. Ischi. It was publicized, no one put a bid in. If it does not go through the time frame will not let it go through. You have 10 year lease. I made a mistake but I don't want to pay for it. I am being penalized for this, but I cannot make it for another 2-3 weeks penalty. Councilman Measles. If there was anyone out there that was that interested, they would have been here tonight. Councilwoman O'Reilly. From reading the agenda, they would not know. Councilman Measles. If you were interested and you saw Dairy Queen RFP on the agenda, would you not have been here tonight to see what the discussion was? Mayor Williams. shall Mr. Ischi be granted a contract by the City pursuant to the agreement passed with amendment? VOTE (Failed): Yes: Measles, Monfor, Williams No: O'Reilly, Smalley, Swarner Tie vote fails. • KENAI CITY COUNCIL MAY 3, 1989 PAGE 18 Mayor Williams. Shall Council direct Administration to accept the proposal? Atty. Rogers. Shall we advertise for lease? Councilwoman Swarner. I would accept for reconsideration - - - Atty. Rogers. You cannot reconsider. Mayor Williams. What are the options? Atty. Rogers. An RFP or lease procedure. I would recommend advertising for lease. It is faster, simpler and cheaper. Mayor Williams. There is no time frame? Atty. Rogers replied yes, he read a suggested ad. No closing date is needed. Councilman Smalley. Should this go in the paper May 4, prior to P&Z? If there is only one application, can we call a special meeting and consider? It would not have to go before P&Z. Atty. Rogers. It would have to go before P&Z. City Manager Brighton. Not in this situation. The building is already there. Atty. Rogers. This was advertised for any use. It has to be in conformance with.zoning, etc. Councilman Smalley. It goes to P&Z May 10, can they act on May 10? Atty. Rogers. Yes, it could be 2 weeks from May 3. Councilwoman Monfor. Regarding "Let's not have a closing time." What about the person who is out of town? Councilman Measles. Everybody is concerned about being fair, there better be a closing date, so we are doing it right. Mayor Williams. Council can accept applications up to P&Z meeting date. Councilman Measles. That is not enough time. Mayor Williams. There in no reconsideration under normal situations. Councilman Smalley was not in the 1st vote, can he move for reconsideration? Atty. Rogers replied no. Mayor Williams. Is there a motion to direct Administration with the next line of leasing? City Manager Brighton. Anyone who comes in asking for leasing has to put in $2,000 plus filing fee. Admin. Asst. Howard. Even with the short form. Councilman Smalley. I would assume Mr. Ischi knew that option when he was here at the special meeting. Mayor Williams. I am not sure everyone knew the full ramifications. I am not sure Councilwoman Swarner knew this date. Councilman Measles. Mayor Williams was not aware Mr. Ischi would lose his $2,000. MOTION: Councilwoman O'Reilly moved, seconded by Councilman Smalley, to direct Administration to prepare the necessary advertising for lease of Dairy Queen and newspaper ads to run a minimum of one week. Councilwoman O'Reilly. P&Z can have an emergency meeting. Councilwoman Swarner. We should state the closing date of the ad. City Manager Brighton. 5 working days or 7 working days? Smalley, Swarner Monfor, Williams Tie vote fails. H-12 Approval - Regional Conference, Alaska Recreation & Parks Assn - Registration for 5 Commissioners - $275 Councilwoman Monfor. Why are 5 going and are we paying for air fare? Recreation Director McGillivray. This is a regional conference, Alaska Assoc. is the host state. This is registration and lunch for a one day work shop. We have money in the budget. Any other costs, they have not asked for any. It starts at 8:00 AN Sunday. Mayor Williams. Do you think they would expect air fare? Mr. McGillivray. Mr. Hultberg and Mr. Siebert attended one meeting, we paid registration, they paid other expenses. Mayor Williams. Could the trip be pooled? Could they _ use one of our vans? City Manager Brighton. I would advise not going that far from Kenai. NOTION: Councilwoman O'Reilly moved, seconded by Councilman Smalley, to approve $275 to pay for registration fees, etc. to pay for the meeting. Notion passed unaniiaously by roll call vote. I. ADMINISTRATION REPORTS I-1 Mayor Mayor Williams spoke. a. I have had several calls regarding skate boards off Stellar Dr. They are complaining, they want them removed. The cul de sac is not a park. Councilwoman Monfor. The kids could take care of it themselves if they were approached. The kids from all over town are there. The people built it themselves. Before we send City people over, we should talk to the kids. b Council agreed it be taken care of :. Y the People involved. b. I will be in Juneau May 4 with a stop in Anchorage. The Peninsula mayors are chartering a plane to Anchorage, cost to be paid by the Borough, regarding the oil spill. The Governor has asked for $40 Million, at request of the Alaska Conf. of Mayors. We will meet with State officials. Later on May 4 I will meet with Vice Pres. Quayle regarding the impact statement. I will go to Juneau to close out the Legislative session. C. I distributed a letter from AML this date with the most recent position on the Legislature. d. I will be out of town May 17, Vice Mayor Measles will have to fill in. c KENAI CITY COUNCIL MAY 3, 1989 PAGE 20 e. The pull tab situation has moved to a new level. There is legal action at Kenai Borough and Kodiak Borough. f. The street improvement list from Public Works Director Kornelis was distributed this date, Council can review it. I would like to discuss it this date and give direction to Administration as soon as possible. I would like to add Lawton Dr. to.the golf course. Public Works Director. Kornelis. Direction was for high maintenance items. No action taken by Council. I�2 City _ Manager None I-3 Attorney Atty. Rogers spoke. a. SCR 33 - The bill regarding the Bicentennial of the City passed the Senate 19-0. b. I will go to Juneau May 5. directives, please call. I-4 City Clerk None I-5 _Finance Director None I-6 Public Works Director If Council has Public Works Director Kornelis. The appropriating money for the carpet in the airport was passed, but we did not approve the change order #6 to replace the existing carpet. MOTION: Councilman Measles moved, seconded by Councilwoman O*Reilly, to approve the change order #6 for a not -to -exceed figure of $22,000 as requested by Council. Motion passed by unanimous consent. I-7 Airport Manager a. Councilwoman Swarner. What happened to the concession stand? Airport Manager Ernst replied, it'starts May 15. J. DISCUSSION J-1 Citizens None J-2 Council a. Councilman Smalley. I apologize for being late, but.I had a prior commitment. Regarding comments f + KENAI CITY COUNCIL MAY 3, 1989 PAGE 21 regarding responsible government. Upon defeat of Mr. Ischi's lease, re -bid was defeated. Was that responsible government? We made Mr. Ischi the last applicant for that facility by not putting up for lease. It is sitting there with nothing happening to it. The action of the Council, I think, is irresponsible. I would like to have a vote of reconsideration on the action, on defeat of the new lease proposal. Mayor Williams. You were not on the prevailing side. Councilman Smalley. 1 am not too sure I would consider that responsible government. We took him at his word and he backed down 2 times. Mayor Williams. In order to let out a new lease out, all will have to put up $2,000. That would be $4,000 for him for the potential. He has the prerogative if Council chooses to go out for bid. Atty. Rogers. Anybody, even without advertising, could come in and file for a lease application. Mayor Williams. The Chair will entertain a motion for reconsideration. We will have to come to grips with the Dairy Queen at some time. By action of Council this date, we have delayed the potential lease for a long time, at least 2 weeks before we can present another motion. No action by Council. b. Councilwoman Monfor. Regarding Iowa St. This concerns the Shirnberg house, it is deserted. There is real concern. The house has burned down. The IRS has insurance money. There must be something we can do. Public Works Director Kornelis. It is a legal problem. Councilwoman Monfor. Have someone check into it. It is in Thompson Pk. C. Councilwoman O'Reilly. Do you have an estimated time in reference to pull tabs? When can we come up with an ordinance regarding this? Mayor William - The Legislature has to close out this Year and the decision has to be made regarding injunctions against the Kenai Borough and the Kodiak Borough. Atty. Rogers. I don't know. The injunction will probably stand till there can be hearings. It will probably be lengthy. Probably not for a substantial period of time, perhaps next session of the Legislature. Mayor Williams. Council will probably not do anything this year. Councilwoman O'Reilly. Looking at non-profit organizations in the City, we need to find out who these organizations are, the percentages of receipts that are dedicated for this purpose. Mayor Williams. It is spelled out by State law. Atty. Rogers. You are talking about a lot of money, well run organizations and not -so -well run organizations. I don't know if we have the capability or authority to get into this. Mayor Williams. We will not till the courts decide. Atty. Rogers. The liquor licenses are examples. You have limited grounds to object. If KWAI CITY COUNCIL MAY 30 1989 PAGE 22 :Ybeou do, you Must represent.at your Own expense and prepared to appear in court. K 7URNIGNT Meeting adjourned at 11: 15 PM. '/3a�net Ruotsala C CitY. Clerk .0 6