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HomeMy WebLinkAbout1989-06-21 Council Minutes• CI 0 AGENDA KENAI CITY COUNCIL - REGULAR MEETING JUNE 21, 1989 - 7:00 PM. WORK SESSION: 6:00 PM A. CALL TO ORDER 1. Pledge of Allegiance 2. Roll Call 3. Agenda Approval 4. Consent Agenda *All items listed with an asterisk i*) are considered to be routine and non -controversial by one motion.by the council and will be approved There will be no separate discussion of these items unless a CouncW�llmember remaved fromsthen which case the item Consent Agenda and considered in its normal sequence on the agenda as part of the General Orders. B. SCHEDULED PUBLIC COMMENT (10 Minutes) 1. Dan Roberts - Baron Pk. S/D Purchase.(Pizza Hut) 2. Paul Weller - Paving of Lawton Drive C. PUBLIC HEARINGS 1. Ordinance 1324--89 - Amending Kenai Municipal Code Title 23 - Personnel Off 2. Ordinance 1325-89 - Increasing Rev/Appns - Senior Citizen Center Parking -Lot - $15,000 3. Resolution 89-47 - Award Contract - Paving Susieana Lane and Senior Citizen Center Parking Lot - Harley's Trucking - $48.077 4. Resolution 89-48 - Transfer of Funds - Boiler Room Repairs, Public Safety Bldg. - $20170.40 D. COMMISSION/COMMITTEE REPORTS 1. Council on Aging 2. Airport Commission 3. Economic Development 4. Harbor Commission 5. Library Commission Commission 6. Recreation Commission 7. Planning & Zoning Commission 8. Misc. Commissions/Committees S. MINUTES 1. *Regular Meeting, June 7, 1989 F. CORRESPONDENCE G. OLD BUSINESS H. NEW BUSINESS 1. Bills to be Paid, Bills to be Ratified 2. Requisitions Exceeding $1,000 3. *Ordinance 1326-89 - Increasing Rev/Appns - Willow St. Extension - $105,000 4. Discussion - Senior Citizen Center Rental Agreement 5. Discussion - Section 36, Parcel D - Inclusion of Partial Release Clause 6. Approval - Comm/Comm Secretary Bid 7. Discussion - RFP's - Airport Terminal Concessions 8. Discussion - Reprint of City Brochure 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 9 KENAI CITY COUNCIL - REGULAR MEETING - MINUTES JUNE 21,.1989 - 7:40 PM RENAL CITY HALL MAYOR JOMt J. WILLIAMS PRESIDING A. CALL TO ORDER Mayor Williams called the meeting to order. A-1 Pledge of Allegiance I' A-2 Roll Call Present: Mara O'Reilly, Hal Smalley, Linda Swarner, John Williams, Art McComsey, Ray Measles, Chris Monfor Absent: None A-3 Agenda Approval Mayor Williams spoke. a. Delete item B-2 (Paul Weller). b. Add item B-2 (Twin Cities Raceway Representative - Water Use). C. Item D-2 (Airport Comm. Minutes) distributed this date. d. Add item C-5 (Res. 89-49 - Support of Locating Cold Water Helicopter Training & Recovery School and Dedicating Airport Lands for that Purpose). e. Item D-8 (Beautification Comm. Minutes) require Council action. f. Assessment request from Eagle Rock residents, distributed this date. Add as item F-1, on Consent Agenda. No action can be taken till 7-5-89 meeting. g. 2 items distributed this date for item H-2 (Requisitions Exceeding $1,000) - Bulldog Computer Products - $1,645.94 Mack Trucks - $1,435.19 h. Additional material distributed this date for item H-5 (Section 36, Partial Release Clause) MOTION: Councilman Mccomsey moved to approve the agenda as amended. There was no second. ' Motion passed by unanimous consent. A-4 Consent Agenda Mayor Williams noted item F-1 (Eagle Rock Assessment Request), added this date, was placed on the Consent Agenda. MOTION: Councilman Smalley moved, seconded by Councilman McComsey, to approve the Consent Agenda as amended. Motion passed by unanimous consent. B. SCHEDULED PUBLIC COMMENT B-1 Dan Roberts - Baron Pk. S/D Purchase (Pizza Hut) • KENAI CITY COUNCIL JUNE 21, 1989 PAGE 2 Dan Roberts, Kenai. We leased Baron Pk. lots from the City and decided to purchase them in July 1988. We were denied in March 1989 because of 2nd position of the City. Bank financing would be an alternative to this, we are considering it if we have to. The City has a very nice financing plan - 10%, the bank is 12%. With the bank we would have to have mortgage insurance ($5,500); fees, points, etc. would be 1%-2%. In 1986 we built the Pizza Hut on Lot 3-B, out of pocket, for $300,000. It was appraised at $301,000 in November 1986, to get a loan for $125,000. In 1989 the City asked us to get a letter of opinion on the building - it was $250,000. Frykholm says the lease we have with * Inc. (owner) is worth $43,000. It is a reputable company. It is an asset to the property. We have 18 years left on a 20 year lease. The mortgage payments are to National Mortgage Co., we pay $1,000 in addition each month. It will be paid off in 3 years, $125,000 is down to $90,000. Lot 3-A, the equity is the land only. Preparation of the land was $29,000 cost. The Pizza Hut on Lot 3-B is $250,000, appraised at $279,000. The note against it is $90,000. That leaves $189,000 equity. We paid $23,000, 15% down. It could add to the equity, $212,000 total. Councilman McComsey. How much per month? Mr. Roberts. $3,200 for 20 years, 2 years are done. Mayor Williams. We would have $90,000 at stake if he defaults. We would have $250,000 value in the Pizza Hut. Mr. Roberts. Add $23,000 (down) to that. Mayor Williams. We would be out about $77,000. Mr. Roberts. We pay our bills on time. (He distributed financial statements) One payment was 10 days late when we changed contracts with the City. Mayor Williams. The Code allows for seconds to be taken. The recent position of the City has been not to take any seconds at all based on bad experience. This place has been in business since 1985 and survived very chaotic times. This has more than a 50-50 chance of surviving. We would want to alter our position regarding seconds. Mr. Roberts. On the lease agreement, per Frykholm Appraisals, we are paying higher than estimated average. We are paying an extra $1,000 per month on this. Mayor Williams. The policy of real estate is that each should be examined individually. I am in favor of doing this. Finance Director Brown. I am against taking a second on any land sale. You have never had a policy on this. You have never turned anyone down. There is enough equity, but how much is enough? You will have to decide each time. He will borrow the money if we do not do this. Councilman Smalley. It looks like a fair deal for Mr. Roberts and the City. We have made concessions to encourage business in the City. This is better than most. Mayor Williams. I was on the Land Committee when we tried to sell City land to get business in the City. We were coming out of a decline. We are now coming out a decline again. KENAI.CITY COUNCIL JUNE 21, 1989 PAGE 3 MOTION: Councilman Measles moved, seconded by Councilman Smalley, to allow Mr. Roberts second position in Baron Pk. S/D Purchase. Motion passed unanimously by roll call vote. B-2 Twin Cities Raceway Representative - Water Use Jesse Meeks, Resident of Kenai/Soldotna area for 22 years. The raceway is in its 3rd season under the present management. The business pays lease fees and taxes to the Borough. They do business with many Kenai people, purchasing equipment, trophies, etc. We have drivers from Anchorage and Homer. Local drivers buy fuel, etc. We provide recreation for the area. It has never shown a profit, we are $5,800 out of pocket this year. There is a $180 per day fee for use of the hydrant. We are asking for use of an old artesian well. We cannot keep our water truck in use because of vandalism. The well is right at the race track. We do a lot for the area and kids. (16 to 22 years) Without this water we cannot run there, we have to have water on the race track to keep down dust. We have donated much time and equipment. This is a benefit to the area to put kids there and not on the highway. Councilman McComsey. Would this be possible? Public f: Works Director Kornelis replied yes, there was a possibility we may dig deeper to get clear water. They could use the other well while this was done. Councilman Measles. Could we waive the hydrant charge in an individual case? Legal Asst. Graves. One of the problems with waiving fees is enforcement. You create an arbitrary standard. City Manager Brighton. It is a problem for the Fire Dept. and Public Works Dept. One of the problems with the fire hydrants is they have been used clandestinely and broken. They are expensive to repair. if the well does not have an effect on the water system, it could be okay to use. MOTION: Councilwoman Swarner moved, seconded by Councilwoman O'Reilly, to direct Administration to let the Vain Cities Raceway use the artesian well. Mayor Williams. There may be an exploratory situation in the future. City Manager Brighton suggested putting a restriction that the sole purpose is for watering the raceway. Councilman McComsey. Is there enough volume for a suction pump? Public Works Director Rornelis replied he did not know. Mr. Meeks. It takes 9 minutes to pump 1,000 gallons, with 8 ft. gear. Councilman Smalley. Should we draft an agreement letter? Mayor Williams replied yes, it would include the fact that the City may take it back. Motion passed by unanimous consent. Mayor Williams. Regarding the exploratory well. may be able"to drill deeper and examine the low aquifer. We may want to extend well house #2 to We that. • KENAI CITY COUNCIL JUNE 21, 1989 PAGE 4 Mr. Meeks. Also, the deposit by Mr. Pollard of $150, at $100 per day. On May 31 I put down the deposit. I asked what would happen if we did not use it. I was told it would carry over. We did not use it June 4. On June 15 I got a permit. The Fire Dept. secretary said they would not carry over. Finance Director Brown said we would be reimbursed. On June 19 Finance Director Brown would not give the money back. Finance Director Brown. I had to get permission from the Fire Dept.. before I could release. I can refund the use fee and $150 now. C. PUBLIC CGS C-1 Ord. 1324-89 - Amend. RMC Title 23 - Personnel Officer MOTION: Councilwoman Swarner moved, seconded by Councilman MCComsey, to adopt the ordinance. There was no public continent. Councilman Measles. This is only adding a classification. If we put in the position, we could have it in place. MOTION, Amendment: Councilman Measles moved, seconded by Councilwoman Swarner, to amend the ordinance, the first WHEREAS, line 2, change the words "the 1989-90" to "a future." VOTE, Motion as Amended (Passed): Yes: O'Reilly, Smalley, Swarner, Williams, Measles, Monfor No: Mccomsey C-2 Ord. 1325-89 - Increas. Rev/Appns - Sr. Cit. Center Parking Lot - $15,000 MOTION: Councilman-McComsey moved, seconded by Councilwoman Monfor, to adopt the ordinance. There was no public commnent. Motion passed unanimously by roll call vote. C-3 Res. 89-47 - Award Contract - Paving Susieana Lane & Sr..Cit. center Parking Lot - Harley's Trucking - $48,077 MOTION: Councilwoman Monfor moved, seconded by Councilman McComsey, to adopt the resolution. There was no public continent. Councilwoman Monfor. What about $42,000 from Mr. Hall? What do we do with the extra? Finance Director Brown. What went into construction was $36,000+. It is a • little short. There is no extra. • Motion passed by unanimous consent. • KENAI CITY COUNCIL JUNE 21, 1989 PAGE 5 C-4 Res.,89-48 - Transfer of Funds - Boiler Room Repairs, Public Safety Bldg. - $2,170.40 MOTION: Councilman Smalley moved, seconded by Councilwoman O'Reilly, to adopt'the resolution. There was no public comment. Councilwoman Monfor. Did they already fix it? Answer - no. Motion passed by unanimous consent. C-5 Res. 89-49 - Support of Locating Cold Water Helicopter Training & Recovery School in Kenai and Dedicating Airport Lands for that Purpose Mayor Williams. There are two THEREFORE's. a3 Lands dedicated for military use will be rededicated, not the full 65 acres. b) Water & sewer to the property. I have been talking to U.S. Govt. people and Sen. Stevens. $5 Million has been put in the Subcommittee on Appropriations. We should be back there in the next 30 days. The University of Alaska Chancellor in Anchorage has no objection. We have letters of support from industry. The building will have a 1-1/2 acre pool inside. It is estimated by the Mining & Petroleum Institute it would be used by 1500 men per year. It would be one of 4 in the U.S., the other 3 have year long waiting period. We want to request it be here. Councilwoman Swarner. What is the cost of water & sewer? Mayor Williams. It will need a lift station, just to the property line. Public Works Director Kornelis. About $40-$50 -ft-s crp'V" ---t Councilwoman O'Reilly. Are there Federal moneys available? Mayor Williams. Airport moneys. Of the $5 Million appropriation, $4.7 Million is for building and equipment, $300,000 for parking lot, lighting, etc. It will not be enough for water & sewer. It will develop all the land along the road. There could be other compliance schools as well - all painters have to be schooled now. Councilwoman Monfor. We have many unexplored areas. For years we have been putting off water & sewer to Thompson Pk. Would there be wetland permits? Mayor Williams. It is high ground there. Councilwoman Monfor. Council should take a look at it first. Wetlands, much money, an area that has been waiting for service for years. Councilman Measles. 1-1/2 acre pool - How deep? There may be OSHA regulations, replacement problems, etc. Where are you going to dump the water? Are water permits going to allow this? Mayor Williams. It would not be from City water or be dumped in City sewer. Councilman Measles. It might be better to put in separate well for this only, use the pool for a fire system. Mayor Williams. The object is to show Council is encouraging this. KENAI CITY COUNCIL JUKE 21, 1989 PAGE 6 MOTION: Councilman Smalley moved, seconded by Councilman Measles, to adopt the resolution with the following amendments: Under BE IT FURTHER RESOLVED, Line 1 a 20, delete the. words, "construct and." Line 2 & 3, change the word "utility".to "utilities," delete the words "lines to the property." Motion passed by unanimous consent. • D. COMUSSIO L OMMITTEE REPORTS D-1 Council on Aging None D-2 Airport Commission Councilwoman O'Reilly. There was a meeting June 15, they discussed the float plane basin and the airport terminal. Mayor Williams. Over the past years, there has been an ! appropriation for fuel for the July 4 celebration for the pilots. The Air Show is being expanded, there will be a KC-135 with a crew. I would like to go from $1,000 to $1,500 and take it from the $15,000 promotion funds to fund board and room. Councilwoman Monfor. Could we put them in the armory? Mayor Williams. It could come out of promotion funds. Finance Director Brown. Will it benefit the airport? Mayor Williams replied yes. MOTION: Councilwoman Swarner moved, seconded by Councilman Smalley, to continue to give $1, 000 for fuel for the July 4 celebration. Councilwoman Swarner. The promotion was to advertise in the Bush to promote the airport. Barry Eldridge. Their per diem is $42.50 per day. Councilman Smalley. I will make one bed available. Mayor Williams. I have 2. VOTE (Passed): Yes: O'Reilly, Smalley, Swarner, Williams, McComsey, Measles No: Monfor D-3 Economic Development Commission Councilwoman Monfor. We have not had a report or minutes for a long time. Is this still a viable commission? Mayor Williams. I am working on that. I will have answers at the July 5 meeting. D-4 Harbor Commission None D-5 Library Commission mmAI CITY COUNCIL JUNE 21, 1989 PAGE 7 Mayor Williams noted, So% of the cards from last month were outside the City. (Info 9) D-6 Recreation Commission Recreation Director McGillivray reported the ARCo Jesse Owens games are this Saturday. (6 2 ) D-7 Planning & Zoning Connission None D-8 Misc. Comma/Comm Councilwoman Swarner. Regarding the back of the Welcome to Kenai sign, the hyphen is to be eliminated. MOTION: Councilwoman O'Reilly moved, seconded by councilwoman Swarner, to authorize payment of $696 for completing the back of the sign. Motion passed by unanimous consent. coun cilwoman Swarner. There was no quorumat the last meeting. Mayor Williams' letter was not discussed. E. MINUTES E-1 Regular Meeting, June 7, 1989 Approved by Consent Agenda. F. CORRESPONDENCE F-1 Eagle Rock & Tern Place Residents -Reconsideration of 50% Assessment Approved by Consent Agenda, postponed till 7-5-89. G. OLD BUSINESS None H. NEW BUSINESS H-1 Bills to be Paid, Bills to be Ratified MOTION: Councilman McComsey moved, seconded by Councilman Smalley, to pay the bills. Motion passed by unanimous consent. H-2 Requisitions Exceeding $1,000 Mayor Williams noted there were 2 additions. councilwoman Monfor. What is the computer? Legal Asst. Graves. The Legal Dept. has been working with Public Works Director Kornelis. It is a scanner, it copies documents into the -computer. Public Works Director Rornelis. Atty. Rogers has done the research, I agree. MOTION: 1�1 KENAI CITY COUNCIL JUNE 21, 1989 PAGE 8 Councilwoman O+Reilly moved, seconded by Councilman Smalley, to approve the requisitions and inc additional distributed this date. Jude the 2 Motion passed by unanimous consent. H-3 Ord. 1326-89 Increas. Rev/A PP ns .. Extension - $105,000 Willow St. Approved by Consent Agenda. H-4 Disc. - Sr. Center Rental Agreement Councilwoman Monfor. Page 4, item H-8, they should not have to have a bartender. with the Valdez mayor and theyMayorLt.WGoverms. I talked had problems even with the ball They have Monfor. This is for weddings, parks. They Legal Asst. Graves. Should the City lease the and allow liquor to be sold oray# Premises liable. All 50 states have hostlliabilit law would be Employees and hosts at a party could be sables' The City would face liability. Councilwoman Monfor. a) The City is not host. are leasing. b) If this is the case the cityThey not have liquor at their functions.Mayor Williams.d There is a difference here. We go to establishment an With a liquor license. It is their liability. nt Councilman Measles. If the City buys, they are liable. Mayor Williams. If we go to a restaurant or bar and they serve liquor, who is responsible? Graves. It could be joint liability. Legal Asst. Measles. Y• Councilman If the City bought liquor for the City be liable? Answer 1DeOPle, would - yes. Councilman Measles. I see less liability here then in CitY-sponsored parties. If we lease the buildingto someone, they buy liquor and dispense removed from liability. it, We are remove the chance of liabil�tl Asst. Graves. We try to increasing the liability whenyalc holism is are occur. situations Councilwoman O'Reilly. People can still sue the Cit and will. Legal Asst. Graves. y Primarily go after insurance. But they would have insurance. The concessioner would Councilwoman O'Reilly. If a restaurant or bar owner arranges to have it used by a person at the Senior Center, does the insurance transfer to the premises? Legal Asst. Graves. We have to look at the in each case. insurance Councilman McComsey. you have someone in. where there is distribution between 2parties, but you the City have contractor come in here without insuranCe. What is the difference? Where is liability different unI bid is over a certain amount. ess Councilwoman Monfor. Why aren't answers here if the attorney knew we wanted this?? Should be These are questions that answered. We have bee • we have had 2 or 3 receptions at the center and have not had.a lease agreement. Mayor after the fact, we can continue Williams. If we are to operate after the • KMW CITY COUNCIL JUNE 21, 1989 PAGE 9 fact. Councilman Smalley. out. It needs to be straightened Mayor Williams. The use of liquor has raised tremendous liability problems. It is a stronger situation all the time. Councilwoman Monfor. What does the Sports Center do? Mayor Williams. They have licensed caterers. Program Director Porter. Only if they sell it. Councilman Measles suggested an indemnification clause regarding sale or distribution of alcohol beverages. Legal Asst. Graves. We did consider that but ruled it out. If there is an accident, and the judgement is large, what will they give to us if they have only a small amity? Councilman Measles. We would not get it. Legal Asst. Graves. It would be to pass Councilman Measles. A law suit could be directed to the lessee. The City could be totally exempt. Legal Asst. Graves. The problem is we cannot make a contract for the courts. You cannot contract out liability outside of the contract. Councilman Measles. The lessee would be part of the contract. Mayor Williams suggested it be sent back to Atty. Rogers with concerns and have him work them out. Councilman Measles. what if someone gets hit by a car OW? Are we not just as liable now? city Manager Brighton. And no liquor has been served. Councilman Measles. If we rent out the building, there is liability. This is the least liability the City has. Councilman-Monfor. What about Ft. Kenay? It has been What do we do about leased for years with liquor. them? Mayor .Williams susuagestedit be sent back to Atty. Rogers. City Manager Brighton. He will not change his mind. Mayor Williams. It is the same situation at the ball park. City Manager Brighton. We would have to stop the Oilers from selling beer. The land belongs to us. Mayor Williams. They have a license. Councilwoman Monfor. It could be on City owned property. Councilman Measles. There is no way to protect ourselves from a lawsuit. MOTION: Councilwoman Monfor moved, seconded by Councilman Mecomsey, to approve the senior center agreement. MOTION, Amendment: Councilwoman O'Reilly moved, seconded by Councilman Smalley, to amend the agreement as follows. item H-8, Paragraph 1 line 2 - delete the words 4, away, or used." Page�4, item H-8 Paragraph "given after the ward "allow," add the Words ale line 1' VOTE, Amendment (Passed): Yes: O'Reilly, Smalley, Swarner, McComsey, Measles, Monfor No: Williams 1 J KENAI CITY COUNCIL JUNE 21, 1989 PAGE 10 VOTE, Main Motion as Amended (passed): Yes: � ' O Reilly, Smalley, Swarner, McComsey Monfor , Measles, No: Williams Councilman Smalley. Is it possible that the City would get protection on a lease agreement by requiring the lessee to buy insurance? Legal Asst, Graves. It was considered. An inquiry to our insurance broker, event insurance is available. We did not follow up. The broker said some people can put on their homeowners insurance. Councilman Smalley. The City could suggest they do if they do not have a bartender? Answer - yes. Councilwoman O'Reilly. The Only way our (personal) i insurance company could do this s increase liability coverage, not for just one day. Councilman Measles. It is available from other companies for one shot. H-5 Disc. - Section 368 Parcel D - Inclusion of Partial Release Clause Councilwoman Monfor. He has not requested this? Finance Director Brown. His letter is all we have. He has only asked for partial release. These are the options. MOTION: Councilwoman Swarner moved to add a partial release clause to his contract. MOTION, Withdraw: Councilwoman Swarner withdrew her motion. Legal Asst. Graves. Atty. Rogers wanted to bring up, if the City agrees to amend for partial release, we should require something to make it binding from him. About $1,000 would be satisfactory. Mayor Williams. Finance Director Brown's memo has noted 2 amounts. Finance Director Brown. That was just an example. Councilman Measles. Was there a partial release with Jesse Wade? Answer - no. Councilman Measles - Dave Brown? Answer - yes. Councilman Measles. This is the only one that does not have that in Section 36. MOTION: Councilwoman Swarner moved, seconded by Councilwoman Monfor, to grant a partial release clause on Section 36 Plus monetary compensation of $1,000. City Manager Brighton. The Finance Director's Proposition on how this should be? Councilman Measles. This has no bearing on what he is asking. If he comes back, it will. Finance Director Brown. Mr. Brighton is talking about the lst part of my memo.City Manager i Brighton. You have to have something to dentify. MOTION, Addition: KENAI CITY COUNCIL JUNE 21, 1989 PAGE 11 Councilwoman Swarner moved, with consent of second, to add that the memo from Finance Director Brown be followed. Councilman Measles. What in the memo should be included? Finance Director Brown. Beginning in the mid section (D-1 - $45,700, etc.) to the end (Remaining amount of note - $313,875.60). Councilman Measles. Are these prices in the contract? Finance Director Brown. No, these are based on best information and appraisals. MOTE: Motion passed unanimously by roll call vote. H-6 Approval - Comm/Comm Secretary Bid Clerk Ruotsala. Since there have been some concerns about the Comas/Conga minutes lately, I have submitted the bids for Council to make the decision. Councilman McComsey. Do they have insurance? Clerk Ruotsala. Not that I know of. Councilman McComsey. If they are injured? They are on City property. Legal Asst. Graves. I do not know. I will check. MOTION: Councilwoman Monfor moved, seconded by Councilwoman O'Reilly, to accept the bid by Patti Truesdell. Motion passed by unanimous consent. H-7 Disc. - RFP's - Airport Terminal Concessions Mayor Williams. There are problems. Councilwoman Monfor. We should have a work session. 1/2 of us do not have this in front of us. Mayor Williams. Atty. Rogers is not here. MOTION, Table: Councilman Smalley moved to table action till Atty. Rogers is here. NOTION, Withdraw: Councilman Smalley withdrew his motion. PUBLIC COMMENT: a. Dana Wackler. I came to hear the discussion regarding changes. I picked up a bid when it first came out. I did not bid the first time because of restrictions. Mayor Williams. Do you have concerns? Ms. Wackler. a) Being open the amount of hours for all flight times. b) In the winter months, it would be hard to make enough money to keep it open. c) The specs to even bid, 3 years of gift shop experience with $100,000 year eliminates a lot of people. Mayor Williams. Atty. Rogers said he would not do this till Council directed him to. Councilwoman Swarner. Having $100,000 CD performance bond, is that normal? Especially with a gift shop? Where terms are shortened, I would like to have renewal E' RFNAI CITY. COUNCIL JUNE 21, 1989 PAGE 12 clause shortened. To rebid is a hardship. Gross sales percent added to bar is more work for the City. Charge a monthly fee that is adequate. Mayor Williams. My biggest concern is we are looking at going from a Mom & Pop operation to a Marriott corporation. Councilman Smalley. I have known 3-4 people that have gone belly -up, not just rental but $21500. Council. agreed to have a work session Thursday, June 29 at 7:00 PM. • H-8 Disc. - Reprint of.City Brochure Mayor Williams noted this was approved by Council under H-2. I. ADMINISTRATION REPORTS I - 1 Mayor Mayor Williams spoke. a. I will be at an international conference in Valdez next week regarding the oil spill, meeting with representatives from Brittany, France. We are not going to get an agreement with Exxon. It is disturbing to all mayors. There will be resolutions that will go to many countries and the U.S. I will report July 5. I will go on a field trip to the site. b. I had request from a local wholesaler regarding the new Kenai River booklet. I suggested he contact the Chamber of Commerce & Bicentennial Bureau. There is a $l discount per copy. I-2 City Manager None 1-3 Attorney Legal Asst. Graves spoke. a. There is a foreclosure list in the packet (item I-3) b. The Burnett vs City of Kenai & Morgan. (item I-3) Initially when Burnetts sued the City and Morgan, there were procedural maneuvers. Burnetts retained.a new attorney, he filed new action with the same claim. The court moved to dismiss because of no action, awarded partial attorney fees ($400). A new case still goes on along with the Jones Case. c. The City of Kenai vs Tarlas. (item I-3) This is for water & sewer. I don't know the amount, it is not large. d. Taylor vs Carter. (item I-3) It was non -meritorious, it was dismissed. e. An opinion was mailed to Council. 1-4 City Clerk • KENAI CITY COUNCIL JUNE 21; 1989 PAGE 13 Clerk Ruotsala spoke. a. A report on the Clerks conference was included in the packet. (item I-4) b. The Clerks Newsletter had an article on Federal registration of voters for Council information. C. The Peace River Regional District is planning a celebration on the 50th anniversary of the Al/Can Highway. I spoke to the Clerk at the Clerks conference, he is very enthusiastic about combining this with Kenai's Bicentennial celebration.; I will speak to Director Sue Carter. I -5 Finance Director None 1-6 Public Works Director None I-7 Airport Manager Airport Manager Ernst suggested he invite the Airport COMM. to the.6-29 work session. Council agreed. J. DISCUSSION J-1 Citizens None J-2 Council a. Councilman McComsey. Homer has pretty banners, made locally. Councilwoman Swarner. They were Purchased by the business association. Councilwoman Monfor. The Bicentennial Bureau has banners for next year. b. Councilman McComsey. CIRI is not interested in the property for the land trade. Is the City doing anything? (Info 19) Mayor Williams. People are objecting to adjacent lands. Councilman McComsey. It look bad, can we protest? Mayor Williams. It is Federal property. Barry Eldridge. They plan to put on siding. c. Councilman McComsey. We should take care of the Treat building (burned out). d. Councilwoman Monfor. In July or Aug., we should come up with a plan for long range and short range planning, for consistency. e. Councilwoman Monfor asked Finance Director Brown for a synopsis on expenses of Council in FY 87/88 and FY 88/89 not in budget. f. Councilwoman Monfor. What will Council do regarding RIP (Retirement Incentive Program)? We should look at soon. Finance Director Brown. As soon as I receive, I will report. g• Councilwoman Monfor. I would ask for reports from the Legal Dept. on what is going on and in a more KENAI CITY COUNCIL JUNE 21, 1989 PAGE 14 timely manner. What about the City, Jr. High and School District report regarding the playground? Recreation Director McGillivray. I have received it from Atty. Rogers and taken it to the Borough. They are cutti-ng brush, that is the first step. f. Councilwoman Monfor. We never hear anything from Atty. Rogers. h. Councilwoman. Monfor. Regarding the Bookey's R/V park, it looks like a million dollars. it is planted, new foundation, they may close the restaurant. It says a lot for them. i. Councilwoman O'Reilly. Someone has been playing around with the Merit Inn sign. City Manager Brighton. That is private property, we cannot touch it. j. Councilman Smalley. Who is responsible for the bike paths? City Manager Brighton replied, the State. Councilman Smalley. They were destroyed with the construction. Recreation Director McGillivray. We have talked to the State. They said they have looked at it, the cost of repair is tremendous, they will be gone with the new highway. The are not worrying about it. wa Y k. Councilwoman Swarner. Next week, the prisoners are clearing the brush from the Lawton Strip. 1. Mayor Williams. Info 2, Resource Development Council annual meeting. One of the Council members should go. m. Mayor Williams. It was suggested we change the sign on the Dairy Queen building. Admin. Asst. Howard. We do not have the letters. K. ADJOURN1++EL�1T Meeting adjourned at 10:05 PM. Janet Ruotsala City Clerk DAM 4AWam