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HomeMy WebLinkAbout1989-11-21 Council Minutes. .. r--1 AGENDA KEN.A3: CXTY COUNCS?.. — REGULAR MEETxNO NOv4mmkP 4ar 21 , 19 8 9 A. CALL 'r'O ORDER 1. Pledge of Alleglance 2. Roll Call 3. Agenda Approval 4. Consent Agenda *All items listed with an asterisk (*) are considered to be routine and non -controversial by the Council and will be approved by one motion. There will be no separate discussion of these items unless a Council member so requests, in which case the item will be removed from the Consent Agenda and considered in its normal sequence on the agenda as part of the General Orders. S . SCHEDULED PUSL =C COMMENT (10 Minutes) 1. Gerry Sparks, Beautification Committee: Request for Banners C . PUSL I C HEARZ NGS 1. Resolution 89-75: Adoption of 1990-91 Capital Improvement Projects Priority List 2. Resolution 89-76: Electing to Participate in RIP Program 3. Resolution 89-77: Transfer $4,100 in Airport Terminal Fund for General Repairs 4. Resolution 89-78: Transfer $5,000 in 1989-90 General Fund for Heater Repair in Public Safety Building D . COMM=SS=ON/COMMS"I'TEE REPORTS 1. Council on Aging 2. Airport Commission 3. Economic Development Commission 4. Harbor Commission S. Library Commission 6. Parks & Recreation Commission 7. Planning & Zoning Commission 8. Misc. Commissions/Committees R . M2NU'I'ES 1. *Regular Meeting, November 1, 1989 1 0 . CORRESPONDENCE 1. *Letter from Senator Zawacki Regarding Congregate Housing 2. *Letter from Senator Pat Pourchot Regarding.Congregate Housing 3. *Letter From Governor Cowper - Education Fund OLD L�iJ82NESS . H . NEW OUS ZNE S S 1. Bills to be Paid, Bills to be Ratified 2. Requisitions Exceeding $1,000 3. *Ordinance 1333-89: Amend Kenai Zoning Map - Maguire S/D from Suburban Residential (RS) to General Comomerc:ial. (CG) 4. *Ordinance 1343-89: Amend Kenai Municipal Code by Adding "Recreation Zone" (R) 5. *Ordinance 1344-89: Increase Estimated Rev/Appns by $180,000 for Purchase of Land for Boat Launch 6. Discussion: Treat Lease - Steel Shell/Sublease .7. Discussion: Approval of Former Dairy Queen Facility Lease to Peter & Valerie Ischi 8. Change Order: Airport Bar & Restaurant Equipment X . ALDM=N=8T1XArMX0N REPORTS 1. Mayor 2. City Manager 3. Attorney 4. City Clerk 5. Finance Director 6. Public Works Director 7. Airport Manager a D=SCUSSX0N 1. Citizens 2. Council K . AD7'OURNMENT r, ..._ REGULAR MEET=NG �C,�NAZ CST Nov�mla�� 2 1 , 19i39 ., L TO CJRDER �, Pled a of Alle lance Z. Roll Call Present: Williams, Measles, Monfor, O'Reilly, Smalley, Swarner, Walker 3. Agenda Approval Item C-2: Additional material a. b. Item H-2: Additional material torney ial and Aters requested to matervious c. Item H-3: all Additional references to p considerationsgto the Ordinance*, d. strike Item H-7: Additional ial from Dale Dolifka material from City Attorney Re: Church Lease e, Item I-3: Additional Additional mate material from Dale Doa Re: airport bar f. Item H-: All other additional material is for information g. MOTION: Coun cilman Smalley moved for approval of the agenda as amended, seconds by Councilwoman Monfor VOTE: Motion passed with Unanimous Consent 4. Consent Agenda a. Councilwoman Swarner asked Consent Agenda. r to remove Item E-1, Minutes from the. MOTION: Councilman Walker moved to approve the Consent Agenda with the removal of Item E-1, seconded by Councilman Smalley VOTE: Motion passed with Unanimous Consent �,UB=, r C COMMENT (10 Minutes) g. 5CHEDULED Q. Gerry Sparks is a member of the Beautification Committee and is Mrs. Y from the Committeet presenting a request for banners for the City Realizing that this would be best brought up at a time when Council is it it f KENAI CITY COUNCIL November 21, 1989 Page 2 considering the budget, certain things happen which necessitate bringing things to you later on. Mrs. Sparks: In the past we've had banners up and down the highway only on one side or on every other street light. With the bicentennial coming up it would be nice to have more of a festive look to the City and one that would be permanent and would attract more tourists. The banner committee considered several companies and styles. The first step was to look at the streets themselves and for Willow Street decided to go with the American Decorating Company. These are triangle shaped banners, two banners per pole, or 34 banners for 17 poles at $65 for double banners it totals $1,105. For the Spur Highway, we decided on the Kalamazoo Banner Works. There are 56 poles from Airport Way to Forest Drive, double banners at $43 per banner, or $4,816. On Airport Way, since it is short, single banners for 12 poles. Again American Decorating Company and totals $780. The total request is for 158 banners for 85 poles at a total cost of approximately $7,000, including all hardware. All banners are shorter than banners in the past. The designs are more simple and instead of having different designs on.every banner, the same design . will be on each banner, but a different design for each street. The existing banners would be ideal for Old Towne to draw attention to historical sites. We were hoping you might consider erecting historical markers for that area. Perhaps the Bicentennial Bureau may be tackling that problem later on, however, you might be considering it. For the Airport Triangle: Most tourists enter Kenai through the airport year round. We suggest that at the point of the triangle, there would be three flag poles, one the U.S. flag, the State flag,, -and one for Kenai. The three flag poles close together and of different heights. This is the City of Kenai and we re very proud of it. We've had very favorable remarks on our looks and I've heard myself from folks as far away as Phoenix Arizona. We hope that this would not just be for the bicentennial but for all time. I hope that yqu will consider the purchase of these banners. Councilwoman Swarner: if these are going to be smaller, does that mean the maintenance costs of putting them up will be less? Answer no. Mrs. Sparks passed around some designs from the various companies. Councilwoman O'Reilly: Do you have any estimate on the cost of installing? Answer no. How many banners do we have now? PW Director Kornelis: Approximately 26. Mayor Williams.: Can you guess at a cost I of installation? PW Director Kornelis: The 26 cost $1,000 to put up. As far as installing, it would cost considerably more. Mayor Williams: Roughly estimating, it would cost 3 times the cost of putting them up.' Councilwoman Monfort I thinks it great. I don't know if Sally.has. L it KSNA►I CITY COUNCIL November 21, 1989 Page 3 discussed it with you, but I know the Bicentennial was thinking of having a particular theme banner for maybe Airport Way. Mrs. Sally Sailie: Basically, what we had talked about was a number of generic banners with no definite design, interspersed with very definite bicentennial banners using some. of the designs submitted during the contest. While I was with Council I had mentioned looking at the possibility of purchasing a used boom truck. I'have seen them in'Anchorage often, and I don't know the cost, it could be prohibitive, but since it is very. expensive to put them UP and take them down it may pay for itself and be used in other areas of the City. It might be worth your while. Mayor Williams asked if this had been pursued. PW Director Kornelis: I located one that was $26,000. We've been looking into it. There are a couple of companies that deal strictly with them. Councilwoman O'Reilly: Is there a possibility of renting a piece of equipment like that. PW Director Kornelis: Not a good possibility here but a good possibility in Washington and Oregon. Mayor Williams: I would like to direct the Parks & Recreation Commission to include this as a part of their annual upcoming budget and also ask the Public Works Director continue to investigate the cost of a boom truck. Councilwoman Monfor: What is the turn -around time for ordering once it is approved. Mrs. Sparks: The last batch was a matter of 3 months. Director McGillivray: I think if its a specialty item it takes longer. Councilwoman Monfor: One of the plans for the bicentennial committee was if we were going to try to do banners we would have them ready by the summer of 1990. For those coming in 19900 it would be a draw for the coming year. To go from the 1990-91 budget, they wouldn't be up until summer or the spring of 1991 and we're already into the celebration. Food for thought-. Mayor Williams: Let's give it a little time here and see what happens.. It was determined that the deadline date for the budget to be in Is approximately February 20th. Mayor Williams asked that the group find out how soon the banners could be made and delivered. A report will be forthcoming. Councilwoman Monfor: Shouldn't we direct the Public Works Director to start looking into the flag poles because it took so long to get the others. Mrs. Sparks: We did look into flags and poles through the American Decorating Company and that came to $3,700. Thie item to return. at the meeting of January 17th. KENAI CITY COUNCIL November 210, 1989 Page 4 H-6 Discussion: Treat Lease __ Steel Shell Sublease Attorney Rogers: What it boils down to at this point is that the steel uprights still -exist on.the premises. I believe that Mrs. Treat will be asking that they be allowed to remain for one purpose or another. We. have.. done no engineering studied .of those and the last instructions that.I recall from Council was to proceed as per the representation that they would clear the premises and that would include the steel girder uprights. If Council has other direction we need to know. Insofar as any reasons for leaving them, I prefer Mrs. Treat address the Council. Joyce Treat: We were going to take the steel structure down, we've had Foster Construction go in and remove all the burn so its clean, all that's there is the steel structure. We have an interest in a sublease and the person who is wanting to sublease for a year and would like it to stay there. We've had several different builders look at it. The beams are in good shape, I don't know if they're specialists or not but it seems pretty safe. At the time I wrote the letter we did have someone to remove but when we were approached about a sublease we decided to leave it. Councilwoman O'Reilly: Could you tell us, if you can, what the purpose of the potential lessee is? Answer Scott Carver of Peninsula Sanitation. Councilwoman O'Reilly: I would question the location for a facility like that, it's right in the middle of town. Especially when we're working on the one hand to beautify. I think the location is a poor one. While we certainly would like his facility some place close by I question this location. Joyce Treat: I don't know what his intentions are, I know he's working on some project. I could get you more information on that. I know that he really wants the building there. City Attorney Rogers: The assignment of the lease, at this point, is rather the propriety of leaving the uprights there. I, personally have no information to believe other than its a derelict building and I have no representations by anyone in authority or training or expertise to say that those uprights are, in fact, stable and could be reused and that the heat treating process of the fire was such that it did not take the temper out of them and render them useless. I would be very surprised to see an engineer's report of those not having been warped by the f ire as they were. But that really is the matter in front of the Council now, not the matter of the assignment. Councilman Smalley: if it is potentially, a derelict building would the City have any liability by allowing the beams to remain. City Attorney Rogers: The rule.of law is no, generally we would not suffer liability.. There is always the exposure. If there is litigation as a result of injury we would be joined and would then have the defense expense of prevailing. Mayor Williams: There are actually two issues: whether or not the Council wants any building on that site as there is a question whether or not the FAA would approve the construction of another building, and if we allowed the building to remain in place, whether the type of business that is going in there would have the Council approval within the sublease.... That would, in part, cause the person to take a close look at Council's discussion. City Attorney Rogers: I would respectfully differ with the Mayor as to what. is in front of the Council-,., at this time. Basically, we have . the contractual arrangement, representations by the Treats that. they were going to take the steel structures down. They now don't want to'do that and are asking Council for permission for them to remain which is different from any assignment or subletting to anyone else. ' I may or may not affect the ability for another to build a structure on there. Joyce Treat: We haven't had a reason.up to now, but if you wants, we could have an engineer look at it. City Attorney Rogers: I don't want to. I have no opinion one way or the other. If that is something the Council wants prior to making their decision that is their prerogative. Mayor Williams: If I could suggest to Council that if we want to take a slower approach to this perhaps we could extend the time for the removal of the building completion to the first of May. or Council could stand by their previous wishes. City Attorney Rogers: In talking to the City Manager, one other aspect that I forgot to mention is that in any subsequent building going up or assignment the FAA is going to insist on a 90 day cancellation clause. Whether or not that would be applicable in Treats.' sublease I don't know. That really isn't before you at this point. Councilwoman Monfor: I have been pretty vocal about that particular building, the Harborview; and the Kenai Korners. They need to be dealt with and I don't feel any differently. now. Councilman Walker: In reading this agenda, I read that its for discussion only. I seem to feel prodded for action on -this and I don't see where we. need to take action on this at this point in time. City Attorney Rogers: If no action is taken I . will proceed with the previous directive from Council and insist that it be torn down. Councilwoman O'Reilly: I would concur, to stay with the original intent., Councilman Smalley:. I agree, to., stay with the existing situation. Councilman Walker: According to their airport lands planning, should there in fact be a building in that area. City Manager Brighton: That is the reason the FAA is going, to insist on a 90 day cancellation clause. So that anytime that land is needed, they can say the lease is going to be cancelled. Mayor Williams: it appears to be the consensus of Council that no action be taken on this matter and that the previous action. is to stand regarding. the removal of the building. Joyce Treat: I don't know what all is involved in tearing down steel structures, but that time is November, 30th which is only 8 days. Would. you consider a little more.timQ Councilman Smalley: Do you have any. idea of what it would take to remove a building like that, would. January 1 be an appropriate date? PW Director Kornelis: I would say it would be. I'm just gutessing,but I think $o. Joyce Treat: From what .T.can gather, they have to have a welder cut it apart so he'll need a boom truck .,since the beams are 40' .high. Mayor Williams: There are monies available through various, insurance companies to cover this I believe. ' Joyce Treat:. . It cost us $3,000. to. get what we've . done so far. I'm not sure what the guy will chargo us. MOTION: Councilman Smalley moved that we extend the date. of the removal of the building at Lot 4, Block, 3, Gusty S/D #p4, Treat Cabinet to December 31, 1989, seconded by Councilwoman O'Reilly VOTE: Mayor Williams - yes Councilman Measles - yes Councilwoman Monfor - yes Councilwoman O'Reilly - yes Councilman Smalley - yes Councilwoman Swarner - yes Councilman Walker - no C . PUBL = C HEAR= NHS 1. Resolution 89-75: Adoption of 1990-91 Capital Improvement Projects Priorittaist MOTION: Councilwoman Monfor moved to adopt Resolution 89-75, seconded by Councilman Smalley VOTE: Mayor Williams called for comments.from the public, there were none. Motion passed with Unanimous Consent 2. Resolution 89-76:... Electinc .to Participate. in RIP, PMgram MOTION: Councilwoman Monfor moved to adopt Resolution 89-76, seconded by Councilwoman O'Reilly . Mayor Williams called for comments from the public, there were none. MOTION AMENDMENT: Councilman Smalley moved to amend the motion. to include Janet Ruotsala in the list as those eligible based on the criteria, seconded by Councilwoman Monfor 4. is KENAI CITY COUNCIL November 21, 1989 Page 7 Councilwoman Swarner: This savings of $11,000, was there a minimum on that that the state said we have to pay before we could participate. Answer, no. So even if it's $5 that's a savings. Answer yes. Mayor Williams asked if Administration had been approached by people wishing to retire, or is that a criteria. There was no reply. Councilman Walker: We have a net savings over a 3 year period of $11,147' listed on this, plus perhaps the addition of our City Clerk should. she decide to accept this. In the monies that we would have to pay out to PERS within the next three years, how much would that cost us in lost interest. Finance Director Brown: I don't have that, however, in your attachment where it lists the six employees, there is a column that has an estimated lost interest which is negative interest for the three year period or what we paid PERS which is the $86,000. The positive interest is blended together to get the negative $6,828. Mayor Williams: I might point out to Council that there might very well be some lead and lag time between the time people decide to retire and another person is actually hired to replace that person. For every period of time that there is such a lag it is an additional savings to the City. In all probability, if all six of the designated employees chose to retire, that savings to the City would be in excess of $11,000. I believe that was a base figure. Finance Director Brown agreed he had not considered a gap or overlap. VOTE AMENDMENT: Motion passed unanimously by roll call vote VOTE MAIN MOTION: Mayor Williams - yes Councilman Measles - no Councilwoman Monfor - yes Councilwoman O'Reilly - yes Councilman Smalley - yes Councilwoman Swarner - yes Councilman Walker - yes Finance Director Brown: Can I assume that the exactly language, to amend Section 3 of the Resolution and amend Section 4 was meant in the amendment as stated in my memo. Council agreed. Ray Rogers: I was wanting to know if one of those people on that list are allowed to participate in that program. Mayor Williams answered yes. Mr. Rogers asked about Clyde Johnson who is older and has worked for the City longer than he. Mayor Williams answered that his name was not on the list. Mr. Rogers: He has the attitude that he will also be able to do it. Mayor Williams: Mr. Johnson shows a value of $3,492 and is therefore ineligible. Each of the six person that was included within the retirement show a positive value of up to $6,931, however the criteria was established based on a positive value to the City. Mr. Johnson's indicates a negative value. KENAI CITY COUNCIL November 21, 1989 Page 9 The display and the bar and restaurant are not going - December date. g to -be e ready by the b• Mayor Williams noted that this was that we passed earlier and was approximately part of the promotional budget If the Council won't spend s Oa $ snot .vo Councilwoman Monfor: an open house. voting for $4,000 for MOTION: Councilman Measles moved that Council approve a no t to $4,000 for the dedication ceremony of the airport terms®xceed figure of Councilman Walker nal, seconded by Councilman Walker: Looking at the may be overstating the amounts a little, may I ask, sincethinkperhaps they Previous party that was thrown, how man since I was not at the UP. Mayor Williams: That's hard to say because the last onewe at showing conjunction with Jul 4th was held in throws a party it's pretty well attendedep when the city sometimes three. I am anticn We throw sPeakin brow two parties a year and ipating it would exceed 150 to 200 We threw one party that nearly filled the high school auditor people. sum. Councilwoman 8warner: � There s no way I could support this budget. Is there a possiblity, that the budget committee can come back w budget. Mayor Williams: with a revised Where would Councilwoman 8warner. Everywhere. Y°u like to see the budget cut. Williams: In the first Where are we advertising? Mayor rst one it was statewide advertising, the same, that is for statewide advertising? Manager Ernst;is:this figure I would assume it would go to people who commute to I m not sure. Kodiak. Anchorage, Homer, and Mayor Williams explained that the intent of the open house i travelling public, including those involved in travel such as h to get the services, etc. familiar with the new facility and encourage tousle, guide Councilwoman O'Reilly: I am in favor of this tourism. going to attract the people we're talking about, January orhD c if we're that matter is going to play against us. December for wait until April or May until the bar and/ Would restaurant would t be at all feasible to be open and the weather would be pleasant and we would be more likel t travel agents. Mayor Williams answered that he felt it was theget those of the Commissson to hold it when the bar and restaurant were open. intention Councilman Measles agreed, stating that at least open. o and with the restaurant may not be open until April, the would be di fi open I think they were operating under the assumption that the Coudifficwht. they were directed to plan this ncil, when Possible after the open house, it would be done as soon as expansion. My feeling is that it wouldn't make any difference to the Commission to put it off. Manager Ernst: There is a possiblity too, that even though wouldn't be officially open, it could 9 the restaurant there, but I don't know what ramifications Possibly here could me catering out of be. Mayor Williams 0 KENAI CITY COUNCIL November 21, 1989 Page 8 3. Resolution 89-77: Transfer $4,100 in Airport Terminal Fund for General Repairs Irwlwr•wl��wlp.wwl/��nn a/wr�llrrlw-LIr1Y�/Ia wrw. wwlnlll/^I\�I ul I�wwul rwlwwwwl\r•wNlwwwlwr�l/�I�O�.� MOTION: Councilwoman O'Reilly moved to .adopt Resolution 89-77, seconded by Councilman Smalley VOTE: Mayor Williams called for comments from the public,.there were none. Motion passed with Unanimous Consent 4. Resolution 89-78: Transfer $5,000 in 1989-90 General Fund for. Heater Repair in Public 8afetX Buildin,�,�, MOTION: Councilwoman Monfor moved for adoption of Resolution 89-78, seconded by Councilwoman Swarner Mayor Williams called for comments from the public, there were none. Councilwoman Swarner: The library has a problem with the addition too. The activity room is rather cold. If this works there, perhaps something could be done at the library too. PW Director Kornelis: I think their system works a little differently than public safety's though, but I will check. VOTE: Motion passed with Unanimous Consent COUNCIL RECESSED n . COMMSSSZON/COMMST'TER REPORTS 1. Council on Act a. Director Porter: The meeting with Ashley Reed went very well. He. gave us several great pointers on Congregate Housing projects and he was very positive. b. The Seniors have invited the City employees to a thank you breakfast on December 5th at 7:00 A.M. They do. an awful lot for us with no complaints. c. We have received a grant from the Borough for $14,000. These are funds Senator Fischer obtained for Seniors on the Peninsula. We will be, using it for repairs.to the Center. 2. Airport Commission r 1rr-1 I /II�II�w Irrrw ■ rw�.I.Iwr.�11._-wrwlrrrr a. Councilman Measles reported that the Commission set the date for December 15th and submitted a memo to Council with an estimate of costs. The date has been changed, however and it will be sometime in January. i KENAI CITY COUNCIL November 21, 1989 Page 10 asked to .be corrected,, but since Council had already approved the money for the purchases, there wouldn't be a need toreiterate the action. Councilman Measles: .I think the $15,000 covered more than just what they are doing here. Councilman Smalley: I don't have an rob setting a figure from those funds that have been set a ide, but 'again, I. agree that if we're going to look at a promotional opportunity for tourism, I think it would be better later in the year, Mayor William: Not necessarily. Remember that 'the people that we're attracting here, are not tourists. The people we're asking are those that are going to get the tourists to I come. 1 am thinking about the people from RDC and 'all the tour operators, ticket agents, etc. Councilman Smalley: Then I would agree with Randy, that I would rather they came down to an open house rather than a closed house with regard to restaurant and so on. Mayor Williams: Okay, set a date that would be better suited, a time when the restaurant would at least be usable. Councilwoman O'Reilly: St. Patrick's Day, they could use a theme for decorating. Council agreed. VOTE: Motion passes Mayor Williams - yes , Councilman Measles - yes Councilwoman Monfor - no Councilwoman O'Reilly - yes Councilman Smalley - yes Councilwoman Swarner - no Councilman Walker - yes 3. Economic Develo ment Commission a. No meeting. b. The- RDC annual -conference -will be held November 29 - 30 and Councilwoman Swarner is going to attend and will report back at the next meeting. 4. . Harbor Commission a. Councilman Walker reported that the Commission met the previous evening and a) approved an appeal for denial of a Corps Permit for Gracie Kendall for mooring buoys, b) reviewed thO-Five Year.Plan, 3) approved Option #1 of the Beaver Loop boat launch, and 4) requested retention of the dock grid at the .dock facility at least until further land' can- be acquired and before that is removed, return to the Commission, The Commission further 5) approved an application for a'mooring buoy and, 6) heard a report from. the .Harbormasters' Convention in Seward. It will be held next year in Skagway and in 1991 in.itenai. Finally, they reviewed an article written by Doug Coughenbower.addressing boat harbors and viewing areas. They did mention that there was insufficient time to minutes for this meeting. prepare is �1 t KENAI CITY COUNCIL November 21, 1989 Page 11 5. LibrarXCommi lion a. No meeting and no December meeting. b. December 14th is the annual Library Open House 6. Parks & Recreation Commission The minutes of the last meeting are in the packet. They will meet tomorrow evening. 7. Planning & Zoning Commission Councilman Smalley: Minutes are in the packet, I did not attend the meeting due to the Council work session. You will notice there was still some difficulty with the sign portion of the Recreation zone. Mayor Williams: I realize that we do have the introduction of Ordinance 1343-89, but I want Council to review the minutes of the meeting specifically, that portion relating to the signs. There seems to be considerable amount of confusion relating to signage. If I read the motion correctly is what they're asking for is lighting with regarding to placed - external to the sign. This seems to be an antique way of doing things. They refer to internally lighted signs and they seem to have a problem delineating between blinking neon and internally lighted. I think of Malstons sign as internally illuminated and the kind that would be on hotels. Councilman Smalley: Part of the problem they were having on this discussion was in regard to the size of the sign. Again, I wasn't at the meeting, but these same things came up at the last meeting I attended. The fact that this is a recreational zone that basically is in a residential zone so there is a wish to maintain the integrity of residential housing. The concern expressed was, do you in your, whatever you paid for your house, want to be sitting across from a sign advertising someone's recreational laundromat. I know they started off the mark and maybe it would be nice to have some expertise, maybe Howard there to talk to them. Mayor Williams: I find the problem in it in that they need to address that and establish a recreational zoning area. If they're going to be establishing recreational areas in highly residential areas that needs to be addressed. I'm more concerned that in rural areas where recreation areas are going to be anticipated such as the boat launch area, if a world class hotel were to develop here, and they were disallowed the convenience' of properly designed signage I think it would be a disservice. Councilman Smalley: A facility such as that wouldn't have the lights on anyway. Mayor Williams: We're talking about lodges that would be used. from April through November. I think that whole issue needs to be addressed and Council needs to be thinking about it. KENAZ- CITY COUNCIL November 21, 1989 Page 12. S. disc. Commissions/Committees None R. MXNUTEB 1. Regular Meeting, November 1, 1989 Councilwoman Swarner: After checking with my English handbook and English. teachers, !"think that the numbers that are in the minutes, they need to be, they began a sentence, there are several in the minutes and they need to be f illed out. Such as, on page 5 25% needs, to be f ille ' out, to twenty- five percent. Also on page 5, there is a sentence missing and further down there is a sentence that is lacking something. On page 11, ex but I think it meant example. Councilwoman O'Reilly stated it meant "aside from". MOTION: Councilman Smalley moved to approve the minutes of November 1, 19890, as amended, seconded by Councilwoman Swarner VOTE: UC City Clerk Ruotsala: we went through this a few years .ago and what the Council, at that time suggested, is if there are mechanical errors rather than actually errors in the minutes themselves, that they could be corrected in-house by a phone call and not take the time away from the Council.. if Council is still in agreement with that suggestion we can continue that procedure. Council agreed. P. C0RREStV0WDENCR 1. *Letter from Senator Zawackir�.niRegarding Congregate Housing ice. i i.u......._........��. .� Consent Agenda Item 2. *Letter from Senator Pat Pourchot Regarding Congregate Housing Consent Agenda Item 3. *Letter from Governor Cowper - Education Fund Consent Agenda Item G . 0XPD SUSS=NESS None i MOTION: Councilwoman O'Reilly moved to pay the bills over,$1,000, seconded by Councilwoman Monfor VOTE: Motion passed by Unanimous Consent 2. Recuisitibne Exceeding 11,000 MOTION: Councilwoman Monfor moved to approve the requisitions over $1,000 and add $8,800 for repair to the snowblower, seconded by Councilwoman Swarner PW Director Kornelis: I called DeanIsPrinting on the printing of the CIP brochures. and it came to $1,098. Since it is over $1,000 we need a motion. Mayor Williams asked Councilwoman Monfor to restate her motion. MOTION RESTATED: Councilwoman Monfor moved that we also pay Dean I s Printing $1, 098 to Dean I s Printing for the CIP brochures., seconded by Councilwoman Swarner VOTE:. Motion passed by Unanimous Consent 3. *Ordinance 1333-89: Amend Kenai Zoning Map - Maguire S/d - from Suburban Residential (RS) to General Commercial (CG) Consent Agenda Item 4. *Ordinance 1343-89: Amend Kenai Municipal Code by Adding "Recreation ZonefR) Consent Agenda Item 5. *Ordinance 1344-89: Increase Estimated Rev/Appns by $180,000 for Purchase of Land for Boat Launch Consent Agenda.Item 6. Discussion: Treat Lease- Steel Shell/Sublease 7. Discussion: Approval of Former Dairy Queen Facility Lease to Peter Val Ischi City Attorney Ptogers: You have a memorandum that basically points out ,the changes made pursuant.to the request and the proposal. Behind that you have a draft lease and you also have a letter that was passed out this evening from Dale0olifca saying that he has reviewed thy, draft lease . and 1- KENAI CITY COUNCIL November 21, 1989 Page 14 they find that an acceptable form, the only hesitancy at this point is the appraisal figure which, of course, we are still couching our acquiesce to this lease on that too. However, if you find the lease document to be acceptable in its form and can approve it at this time, we need not come back to Council once we have the appraisal figure, we will merely insert them into the document and finalize it and proceed. MOTION: Councilwoman Monfor moved approval of the lease between the City and the Ischi's for the Dairy Queen, seconded by Councilman Smalley Councilman Walker: On page marked LCA-4, as I understand this paragraph where it specifically disclaims title to any facilities and fixtures,.4n these premises, I am very confused by this paragraph, if we're planning as per the inventory as listed back here in Exhibit B. City Attorney Rogers: That takes care of any specific UCC filings that may show up even though we've searched and found none, insofar as some of the equipment on the premises. This was in the prior documentation as well. It's interesting to note that one reason this is in there is because the attorney presently representing the Ischis discussed it with me and agreed that this should be in the documentation when we were acquiring the facility back from the prior owners. On any subsequent letting of those premises we should protect ourselves because of any possible UCC filings and also because there were several Dairy Queen's in existence under a common ownership at one time and sometimes the ice cream machine from Hamer was up here and sometimes this one was there, and serial numbers didn't match. Consequently, we just said its there, if we get title you get what we've got but nothing more. Councilman Walker: We're disclaiming title, does that also state that we're disclaiming ownership so basically anything that's in there at thing point in time when they take over if they take it out, any of the items on this list, say for instance, in a few years they gave up their lease and those items were no longer in there, at that point what recourse would the City have or chose to have. City Attorney Rogers: In another clause we have replacement for normal wear and tear provision so we will get the property back. Councilman Walker: I read the two different clauses and what confused me is that they seemed contradictory, and at one point we are claiming not to have title but at the other point we're claiming that these items are in there and we want them to be in there should the City ever take it back. City Attorney Rogers: Basically, we want it both ways. Mayor Williams: I think there's .a misunderstanding here of the fact that, with the UCC filing, someone may have laid claim to the equipment for monies owed, and that did happen one time. City Attorney Rogers: That was, but we hope we've taken care of that. Mayor Williams: if, in fact they come back and pull the equipment out we're not liable to replace -the equipment that they take out for those liens. City Attorney Rogers:, We i L K9NAI CITY COUNCIL November 21, 1989 Page 15 , maintain we do have title. But in the event we don't there's no liability to the City of anyone else with superior title comes in and takes the. equipment from the place, that means that we don't have to replace it at our expense. It puts them on notice that there may be claims against the property. Councilman Smalley: Do you have any idea if the appraisal rate will go up this year. Administrative Assistant Howard: I would expect it to be about the same but we should have the appraisal within the week. Councilman Walker: I would almost suggest, after reviewing this letter from Mr. Dolifka that we do not take any action on this this evening. They're saying they won't pay any rent over $1740 and since we have., no real basis of being able to decide on that we either accept their maximum of $1740 or too bad, we have to wait until April to find out. I may be reading that incorrectly but they aren't planning on taking the lease until April. • City Attorney Rogers: It says April 1 or at the time of possession whichever event occurs first. It is their intent, as I understand it, to take possession prior to that date. I can certainly find out because we have an occupancy date blank on the first page of the lease and I can bring it back to Council if you're saying you want occupancy or rent prior to April 1. 1 thought that was the proposal that the Ischis made, that they would start paying rent on that date. If they take occupancy prior to that date, it is my intent to extract rent prior to that. Councilman Walker: The only thing I'm questioning is, unless they don't take occupancy prior to April 1, they are required by this document, but should the appraisal come in and that 6% is higher than that point 'in time, this agreement is null and void? We start all over again? City Attorney Rogers: There is no agreement because they won't sign it, perhaps. On the other hand, if the appraisal comes in substantially below, I'm bringing that back to Council because I've already indicated, except for the appraisal, I'm asking for approval of this document. If the appraisal figure comes in outside of the $1740 by more than a couple hundred dollars, I'll probably be polling the Council before authorizing they sign it. Mayor Williams: I think we need to give administration and Ischi both some latitude in that respect. The figure $1740 is based on supposition that could very well flow either way. If it comes in higher than $1140 we're not authorized to sign the lease because that's going to require a subsidy to airport lands and we can't appropriate the money, only Council can do that, even if it's $50 to $100 more. Mayor Williams: Even :if Ischi agrees to it. City Attorney Rogers: He can agree to it but we can't. If he says I can't go higher than $1740 we have to bring it back to Council. Mayor Williams: If it comes in at $1775 he may well say that's within his budget. Mayor Williams: On page 9 of the contract, for information purposes, we are presuming this is in there in the event that he is not using it for ..z ` ANAI CITY COUNCIL November 21, 1989 Page ib VOTE: a franchised Dairy Queen operation. City Attorney Rogers: That's why it says subject to the satisfaction of International Dairy Queen. Mayor Williams: If he's in compliance with their regulations it doesn't always, mean a thing. City Attorney Rogers: That's exactly right. If he has their blessings, I assume that will be satisfactory to International Dairy Queen. Motion passed by Unanimous Consent 8._ Change Order: Airport Bar & Restaurant Ec:uinment PW Director Kornelis: On the back side of the change order is* an explanation from Mr. Kluge, but basically what we have is, a contractor could have the bar and restaurant equipment completed in time with no problem whatsoever, but Mr. Schilling has requested that, instead of us putting down the vinyl and carpet in the bar and restaurant, he wanted to use his own materials which is wood flooring and his own carpet. in order for us to install the equipment, we need to have the flooring down first. Mr. Schilling is requesting this change order for that reason. We do collect liquidated damages when a contractor is failing to get the project done on time and I want to make it clear to the other contractor that we're not just giving it to him for no reason. Basically there is no cost change, it is just an additional 14 days. MOTION: Councilman Smalley moved approval of the change order for the airport bar and restaurant, seconded by Councilwoman O'Reilly VOTE: Motion passed by Unanimous Consent 9. Letter from Dale Dolifka Regarding Rent for the Month of December City Attorney Rogers: The reasons are stated here, for proposed abatement of rent, basically a request for modification of the agreement. I indicated to Dale that I would submit a letter but I was not empowered to do that sort of thing, Council will have to take a look at it. Councilman Smalley: I have a question on page 2, item 3, regarding all diligent efforts have been made by Schillings to obtain a liquor license for the airport bar, what is the problem with the liquor license that goes with the facility. O City Attorney Rogers: Basically, it makes their agenda for getting in, the Board meets ten times per year, and apparently they weren't on the last agenda, and the next agenda is whenever. Councilman Smalley: There's no problem with the license itself. City Attorney Rogers: No, there should not be a problem with that license. Councilwoman O'Reilly: I have some confusion about it though. I was under the impression that the lessee was using the City's license? City Attorney Rogers: Years ago the City was named on the license in KENAI CITY COUNCIL November 21, 1989 Page 17 conjunction with the person running the premises. .I changed that because any time you are on the license you're going to be named in any lawsuits. We may still be, but at least we're not on the license. By having that license does not mean that he can take that license and transfer it. It is a special License for the convenience of the travelling public —it is... for those premises only, when ceases to be a lessee of the City the license is revoked and reissued. We also worked it worked it out so that the charges made by a prior holder~ are not, it appears, going to have to be paid by the City. I'm maiting for this license to be reissued before I make a report on that. Councilwoman O'Reilly: The last operator had the same arrangement as this. City Attorney Rogers: That's correct. What we were fighting there was some insinuation that there was some sort of hold being placed on the reissue of that license until certain suppliers were paid, that appears to not be the case now. That will now be issued irregardless of the indebtedness of the prior lessee. MOTION: Councilwoman O'Reilly moved that we abate the months rent to Mr. & Mrs. Schilling, seconded by Councilman Walker fsVOTE: Motion passed by Unanimous Consent _ . ADM=N=STi2�T20N RE1�C�R'I'S 1. Mayor a. Mayor Williams discussed his trip to Juneau for the AML conference. Mayor Williams met with Governor Cowper and Rep. Swackhammer to discuss the Congregate Housing project. Governor Cowper is not "turned off" by the project, however is concerned by the funding. He indicated that he would not have a capital budget ready for -the legislature by December 15th. The Governor voiced concern about other communities coming in next year as a result of Kenai obtaining this one, asking for a similar grant. They further discussed congregate housing as an alternative to the senior housing problems .in the state. b. Mayor Williams reported on a meeting with Wells Williams who- is a planner for the City of Sitka. Mr. Williams wanted to thank us for forwarding the information regarding the grant application for the freezer plant. Sitka is now applying for a similar facility. c. Mayor Williams attended the Kenai Caucus meeting prior to going to Juneau and there will be a legislative reception December 5th, from 4:15 to 5:00 P.M. then from 6:00 P.M. there will be a reception at Mykels d. Mayor Williams reminded the Council of the work session December 4th regarding the EMT program. KENAI CITY COUNCIL November 21, 1989 Page 18 e. The ordinance pertaining to the boat launch will be on the agenda for the next meeting. PW Director Kornelis explained that there are two design completed and that they are being passed on to Planning & Zoning, Harbor, and Parks & Recreation Commission. f. Mayor Williams will be out of town from November 23rd until December. 3rd. 2. City Manager None 3. Attorney a. City Attorney Rogers: You have a draft letter to the State of Alaska regarding the Church property which is the one across the street. Please excise the third sentence in the first paragraph. There is a handout which corrects that. Basically, what it boils down to is that we have requests from the State of Alaska to cooperate with them in their foreclosure, but no true binding representation that they're going to bring the lease current, rather pay it out of the proceeds of the sale. I have no assurances that the proceeds of the sale will be sufficient so I'm trying to get the money up front. We'll get some other accommodations from the State. Councilman Walker: From reading this, does the State have foreclosure rights? For instance, we didn't to assignment of lease, then they can't legally foreclose on a lien against that property, what kind of reasons did we have to allow the State to sell off these assets versus the City. If these leases are in arrears. City Attorney Rogers: It is conceivable we could foreclose. What we're entitled to are lease payments. If we weren't to get back conceivably we could end up with the property. That's a policy question this Council wants that property. For that particular building. Perhaps I'm presuming too much, but I presumed that the Council would rather have the back lease payments and what they bargained for was a lease rate on the property, have it on the tax rolls, which would not be if we took ownership of it. And to try to facilitate the rehabilitation by somebody of that building so it's occupied. That's more a policy question than a legal one. .We have not explored the possibility of trying to (inaudible) the State's interest in that building. our position has merely been to get what we. felt was rightfully ours and thereby, hopefully, fulfilling the best interest of the City and get the premises back on the market and sold. If Council wants to pursue another vein ... Right now we've got this reappraisal, we've got kind of a battle with that, we passed that hurdle, we've got back lease payments, I personally think we'd be better off if we could get the bank to cough up a chunk of money to bring us current and then let them worry about the condition of that building. I've been over there peeking into it, and I don't know' that I'd want it. Councilman Smalley: There are severe water problems on the back side. NAI CITY COUNCIL November 21, 1989 Page 19 4. City Clerk None 5. Finance Director None 6. Public Works Director a. PW Director Kornelis reported that there were some concerns about the tanks that went down Forest Drive and made the mess. For those interested, there are photos of that. Councilman Smalley asked if there was anything we could do, PW Director Kornelis: I don't know how to stop the army. PR Director McGillivray: I did contact the National Guard and the Sergeant in charge over there assured me that it would not happen again. b. Councilman Walker: Have you had an opportunity to check the intersection at Spruce for potential water problems. PW Director Kornelis: I've been by there but I haven't taken a level out to actually take a look at it. It does appear that we can correct that, just from looking at it. 7. Airport Manager a. Mayor Williams noted that there have been some problems with the partition that was to go in to protect the model, has that been arranged. Manager Ernst: Yes, we're still waiting for other bidders. Also, Treat is going to rebid. a. OMSCUSS=ON 1. Citizens None 2. Council a. Councilman Walker: After having been at AML this past week, I would suggest that the City continue to support the AML and I would state that. I learned a lot from the Newly Elected Officials Seminar and I would support sending people in the future. b. Councilwoman Swarner: On the AML legislative committee meeting, it was mentioned that the first meeting of the Legislative Session will. be the last day of January and the first day in February for meetings and lobbying. I will probably attend. Mayor Williams stated that he will be attending also. c. Councilwoman O'Reilly: Have we had any luck in finding a new member of Parks & Recreation Commission. Mayor Williams: Do we have a student member? PR Director McGillivray: The student member ..... Councilman flAi CITY COUNCIL' November 21, 1989 Page 20 Smalley: It was approved through here. William: Mayor Willia: And we're still short a member? 'PR Director McGillivray: No. The student member. had not attended yet when the minutes were done.. Mayor. WillamM.: Twill be there to meet her tomorrow night'* d. Mayor Williams: Regarding AML, the longer- T. am Involved _in government, the more be fits its I see in some' of the .n►eetings we have. This one.was especially interesting, even though the'. weather prevenI a lot of people from attending, on time, we ended up havi, ng a continuous rotation of people. Probably because' of the. legislative, meeting 'in Monteray California, we were blessed. on, their return trip ithh great numbers of . legislators. There were more legislators attending this AML than any I've,. ever been to. K . PsI�,TOUR1ti7MENT There being no further business, the meeting was adjourned at 9:25 P.M. 000 Janet A. Loper Deputy City Clerk Transcribed from tape.