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Home My WebLink About1988-04-06 Council Minutes„ ...; AGENDA `.. KENAI CITY COUNCIL -REGULAR MEETING APRIL 6, 1988 - 700 PM PLEDGE OF ALLEGIANCE A. ROLL CALL 1. Agenda Approval - - - - - - . 2. Consent Agenda *All items listed with an asterisk (*) are { considered _to-te _routine and noncontroversial 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. . - B. PERSONS PRESENT SCHEDULED TO BE HEARD (10 Min.) :,. _ ..... 1. Representative of Pepsi Cola Co. - Vending Machine at Airport y , 2. Carmen Gintoli, Architect - Congregate Housing J C. PUBLIC HEARINGS 1. Ordinance 1252-88 - increasing Rev/Appns - Kalifornsky Christian Center Donation to Rec Center - $1,000 2. Resolution 88-10 - Transfer of Funds - Commercial Fisheries Industry Study - $5,000 3. Resolution 88-18 - Authorizing Participation in REDI Grant Program 4. Resolution 88-19 - Establishing Authorized Signatures from Depositories of Municipal Funds S. Resolution 88-20 - Transfer of Funds - Maintgnance ,- Agreement, Library Computers - $4,300 6. Resolution 88-21 - Transfer of Funds - Publish Special Assessment Foreclosure List - $1,534 7. Resolution 88-22 - Transfer of Funds - Memorial Park Expenses - $2,034 8. Resolution 88-23 - Encouraging Greater Voter Participation 9. Resolution 88-24 - Awarding Dock Unloading Cranes 10. Resolution 88-25 - Support of Alaska Economic �;,.:_____. �._- �—: • --- Assistance Program 1 L I C. PUBLIC HEARINGS (Cont'd) 11. Resolution 88-26 - Requesting Legislative Support { of Municipal Assistance and Revenue Sharing at - - 1986 Level - 12. Renewal of Liquor License - Runway Lounge Little Ski Mo 13. Renewal of Liquor License - The Rig D. COMMISSION/COMMITTEE REPORTS - ---,-- - 1. Planning & Zoning 2. Harbor Commission 3. Recreation Commission 4. Library Commission 5. Council on Aging 6. Airport Commission ---- - - 7. Economic Development Commission 8. Kenai Bicentennial Commission 9. Misc. Comm/Comm dull - E. MINUTES *Regular Meeting, March 16, 1988 F. CORRESPONDENCE - 1. *Rep. Swaakhammer - Capital Improvement Project List 1 2. *Sen. Fischer - Trail Lakes Hatchery Resolution 3. *Sen. Stevens -Military Facilities 4. U.S. Fish & Wildlife - Land Exchange 5. *Rep. Grussendorf - Economic Limit Factor 6. Alaska C&RA Revenue Sharing Payment - 7. National Bank of Alaska - Financing of Public Projects G. OLD BUSINESS H. NEW BUSINESS 1. Bills to be Paid, Bills to be Ratified ' - 2. Requisitions Exceeding $1,000 3. Ordinance 1253-88 - Increasing Rev/Appns - sr= o- Outstanding Defaults, lot & 2nd Deeds of Trust - r:.< en Property Dairy Queen p ty 1 - Public Hearing Ordinance 1253-86 2 t :7 .• - - 1 u H. NEW BUSINESS (Cont'd 4. Ordinance 1254-88 - Amend KMC Title 23 - Re -Employment 5. Discussions Wildwood Annexation 6. Approval of Contract of Sale - B.Kline - FBO S/D 7. Discussions D/Q Cooperative Education Venture S. Discussions Task Force - KPC, Oil Companies, City - Fire Training School 9. Discussions Railbelt Coalition Participation 10. Discussion: Airport Commission Recommendations a. Float Plane Basin b. Terminal Restaurant 11. Discussion: Purchase of Fax Machine 12. Schedule Budget Work Sessions I. ADMINISTRATION REPORTS 1. City Manager 2. Attorney 3. Mayor 4. City Clerk 5. Finance Director 6. Public Works Director 7. Airport Manager J. PERSONS PRESENT NOT SCHEDULED TO BE HEARD (5 Min.) ADJOURNMENT .' `-_ _ ! 3 Jq KENAI CITY.COUNCIL, REGULAR MEETING, MINUTES APRIL 6, 1988, 7s00 PM KENAI CITY HALL MAYOR JOHN J. WILLIAMS PRESIDING PLEDGE OF ALLEGIANCE A. ROLL CALL Presents MarTomjAckerly, Artinda e McC msey,a Ray Measles, John Chris Monfor Y Absent: None , A-1 Agenda Approval - -- - - -- a. Mayor Williams asked that a portion of item C-12 (Renewal of Liquor License, Little Ski Me) be added to the Consent Agenda. b. Mayor Williams asked that the Kenai Bicentennial Commission, Goals & Objectives - distributed this date - be discussed under item D-8 (Kenai Bicentennial Comm. Report). c. Mayor Williams asked that item H-3 (Ord. 1253-88, Dairy Queen) be moved to item H-1. d. ls tobe paid yor ianitemss asked that d RequisitionsExceeding $1,00l 0)be moved to H•-2 and H-3. e. Mayor Williams noted the 87-88 proposed budget was distributed this date. f. Councilwoman Monfor asked that item H-7 (D/Q Cooperative Venture) be deleted, as it is premature at this time. MOTION: Councilwoman O'Reilly moved to approve the agenda as amended. Motion passed by unanimous consent. A-2 Consent Agenda MOTION: Councilman Ackerly moved to approve the Consent Agenda as amended. Motion passed by unanimous consent. B. PERSONS PRESENT SCHEDULED TO BE HEARD 8 1 Representative of Pepsi Cola - Vending Machine at Airport Kurt Neils, Pepsi Cola Co. - He is proposing putting Pepsi Cola in the airport terminal. There is none available now. There is a profit potential for the City at no cost to the City. He distributed a list that states the cost potential. There is a local vendor who will do this at 10% of the proceeds and do maintenance. Based on these numbers, 8 cans per day, 10 cases per month, there would be a net profit of $55 per month. If the City were to run it, it would bring income to the City and would be a courtesy to people who use the product. Airport Manager Ernst explained, we have a lease agreement with Tyler Vending. He furnishes pop, cigarettes, candy and change, based on 10% of the gross, except $.10 per pack for cigarettes. ,--_ N - — KENAI CITY COUNCIL t I APRIL 6, 1988 l PAGE 2 His lease is yearly and can be terminated with 30 days i notice. To bring in a vendor would put the existing the '� vendor in a position of having many machines, +- opposition would have one. The lease expires June 30. City Manager Brighton -said if Council desires additional vendors, we should put it out to bid at that time. Councilwoman Swarner asked Mr. Neils if Pepsi - - Cola Co. could provide the other machines. Mr. Neils i replied, Pepsi has change machines. It would increase - revenue at the airport, some people will not buy anything but Pepsi. George Spence, George's Vending, stated he has pop and candy machines but not _ cigarettes. He would have a dollar valuator to make change. Councilman Ackerly noted a cigarette machine - ---- ^- - - may be a moot point in the future, the State is - eliminating them all over. Councilwoman Swarner asked - if there was an exclusive on the vendor. Answer - no. Councilman Measles said he thought we had a terminal :_. operators manual that said one of each type in the - -= - airport. we would have to correct the manual. - -- Councilwoman O'Reilly asked if there were any problems with the system as it is now. Mr. Ernst replied, he ` has not had any complaints. Mr. Neils explained, it would not be competition, they each have their own 'product. Vic Tyler, Coca Cola Co. He has machines at the airport and at City Hall. The City should have bids. He has the ability to put Pepsi in his machines. It - could be part of the bid document. it should be for a year. His change machines provide for phone and other needs. Airport Manager Ernst read the Code, the machines are `K put in at the airport per instructions. Councilwoman O'Reilly suggested, since the airport leases are coming up for review, we could put out proposals at the same „- time. MOTION: Councilwoman Monfor moved, secondod by -Councilwoman .: .... .....:...-...." -- .- O'Reilly, to have Administration prepare bid specs for vendors at the airport to go at a yearly basis just o :; : , like the other leases. MOTION, Amendments ��—.. --- _-- , . __ . - _ . - Councilwoman Monfor moved;; _seconded by- councilwoman :.'•:;.;;=:,. O'Reilly, to amend the motion to three year leases. ,.' Motion as amended passed by unanimous consent. B-2 C. Gintoli, Architect - Congregate Housing Mr. Gintoli introduced Dennis Murray, Lutheran Homes. Mr. Gintoli explained, the Commission recommended no balconies. There will be 40 units, 30 rentable. The - ' - day care is part of the structure. There are 3 commons, one on the first floor, 2 on the 2nd floor. ss ,l The cost estimate was $7 Million before, is $6.3 r Million now. City Manager Brighton said, these plans Sen. Fischer ,. have been delivered to the legislators. it .' will be in Kenai April S. They hope to discuss at that time. The engineering schematics will be left to i,...;' do till we get the go-ahead from the legislature. Mr. is $70,000 left for design Gintoli added, there development. r..r..r KENAI CITY COUNCIL - - APRIL 6, 1988 PAGE 3 MOTION: Councilwoman Monfor moved, beconded by Councilman, MoComsey, to accept and forward these plans to Juneau for the next phase. Councilman Ackerly asked if it could be built in stages. Answer - yes. City Manager Brighton noted the last home built was in Juneau. It took 3 years to accumulate the funds. They withheld till the entire amount was appropriated before starting, Mayor Williams asked if this will fall under Alaska Health & Social Service statutes. Mr. Murray replied, the reason they were included is, some residential care facilities are funded by general appropriation, 2 in the State are funded by special appropriation. The regulations were included to provide an opportunity for funding through Health & Social Services. There is a new facility in Anchorage that is a combination of residential and intern care. They have tried to get State funds, they have not gotten them yet. Mayor Williams noted model #2 and M4 have the same amount of sq. ft., and have 40 units. What is the difference? Mr. Murray explained, N2 is operated by the City, M4 is operated by a non-profit organization. Mayor Williams asked, why are there 40 apartments and 38 rented? Mr. Murray replied, one is -for management, one for maintenance. That is so someone will be on site. Motion passed by unanimous consent . C. PUBLIC HEARINGS C-1 Ord. 1252-88 - Increas. Rev/Appns - Kalifonsky Christian Center Donation to Rea Center - $1,000 MOTION: Councilman Measles moved, seconded by Councilwoman Monfor, to adopt the ordinance. There was no public comment. Councilwoman Swarner asked, what will they do with the money? Recreation Director McGillivray replied, they will use it for equipment. Motion passed unanimously by roll call vote. C-2 Res. 88-10 - Transf. of Funds - Commercial Fisheries _ Industry_ Study- $5,000 - MOTION: Councilwoman O'Reilly moved, seconded by Councilman Ackerly, to adopt the resolution. There was no public comment. Councilman Ackerly asked, why is it going to Economic Development comm. instead of Harbor Comm.? Harbor Comm. Chairman Quesnel replied, he had no problem with EDC doing it. Motion passed by unanimous consent. C-3 Res. 88-18 - Authorizing Participation in REDI Grant Program f KENAI CITY COUNCIL APRIL 6, 1988 PAGE 4 MOTION: Councilwoman Monfor moved, seconded by Councilwoman O'Reilly, to adopt the resolution. There was no public comment. Motion passed by unanimous consent. Res. 88-19 - Establishing Authorized Signatures from Depositories of Municipal Funds C-4 140TION: Councilman Ackerly moved, seconded by Councilwoman Monfor, to adopt the resolution. There was no public comment. Motion passed by unanimous consent. Res. 88-20 - Transf. of Funds - Maintenance Agreement, Library Computers - $4,300 C-5 MOTION: Councilwoman Monfor moved, seconded by Councilwoman Swarner, to adopt the resolution - There was no public comment. Councilman McComsey asked if this was for all the computers in the library. Librarian DeForest replied no, for the Dynix and Ultimate, not the Apple or IBM. Councilman Ackerly said we have discussed maintenance agreements for years, if you gambled and did not have an agreement, you would have many bucks. Librarian DeForest replied, considering the power problems, she could not guarantee that. Mayor Williams noted this is one of a kind in the community. A i; I i Motion passed by unanimous consent. C-6 Res. 88-21 - Transf. of Funds - Publish Special Assessment Foreclosure List - $1,534 r� ;r MOTION: Councilwoman O'Reilly -moved; seconded by Councilwoman -- - ---- - - - -=---- - -. Monfor, to adopt the resolution. There was no public comment. Councilwoman Swarner asked, why is this before us if it has been in the papers? Legal Asst. Sutcliffe replied, we mailed out the letters. Under statute you have to publish foreclosure lists in a certain length of time. L We did not know it would cost that much. Councilwoman - Swarner said she objects to paying after the action. - Mayor Williams explained, this is foreclosure on assessments due. To be published in a timely manner, it had to be done between meetings. Motion passed by unanimous consent. C-7 Res. 88-22 - Transf. of Funds, Memorial Park Expenses- k $2,034 MOTION: KENAI CITY COUNCIL APRIL 6, 1988 -- - PAGE 5 Councilwoman Morfor moved, seconded by Councilman the resolution. MaComsey, to adopt There was no public comment., ... 't, Motion passed by unanimous a onsent. - C-8 Res. 88-23 - Encouraging Greater Voter Participation MOTION s Councilman Ackerly moved, seconded by Councilwoman 1i O'Reilly, to adopt the resolution. _.:. There was no public comment. Motion passed by unanimous consent. Mayor Williams noted 39% of the eligible voters voted - --" in the last election. Clerk Whelan added, there will -- - be voter registration in the Kenai Mall this week end. -*- �•" :,: C-9 Res. 88-24 -Awarding Doak Unloading Cranes MOTIONS Councilman Ackerly moved, seconded by Councilwoman O'Reilly, to adopt the resolution. There was no public comment. Motion passed by unanimous consent. Councilwoman Swarner asked, what is the recommendation of the Harbor Commission? Harbor Comm. Chairman Quesnel replied, that the City buy it. Count woman Swarner asked, where is Slattery Equip. Co. from? Public Works Director Kornelis replied, Washington .r. ... .. ,.:..,:. State, there are none in Alaska. Councilman MaComsey - -- - -` „ -.. asked, what are the funds from? Mr. Kornelis replied, 840,000 from Federal Revenue Sharing, the rest from the . _. .__ ._.... .. dock fund. C-10 Res. 88-25 - Support of Alaska Economic Assistance ;3 Program Ir' ` MOTION: Councilwoman Monfor moved,- seconded -by -Councilman- - - - - --- - -- ------------- ---- --- McComsey, to adopt the resolution. There was no public comment. City Manager Brighton e!cplained, this is for formation - of economic development districts in Alaska, it is comparable to the Kenai Borough EDD. $50,000 of State money is for getting groups started to pursue and r; promote economic development in the area. One { I; interpretation is for districts larger than cities. `.t.-°• There may be an effort to amend that so Kenai Economic included. Borough Mayor '' ;: Development Comm. could be Gilman has said even those that have formed theirs and have Federal money can still be included in this. t Motion passed by unanimous consent. I 1 ` L KENAI CITY COUNCIL APRIL 6, 1988 PAGE 6 C-11 Res. 88-26 - Requesting Legislative Support of Municipal Assistance and Revenue Sharing at 1986 Level s MOTION: ' _ Councilman Measles moved, seconded by Councilman *, "A MaComsey, to adopt the resolution. ��. There was no public comment.AL „ 11 Mayor Williams explained, the resolution is the result of four Mayors' Conferences and three teleconferences. - -- --'= - - There will be another teleconference_ April S. +' Anchorage has $37 Million short fall, Mayor Fink's intention is to kick-start the economy. The Railbelt cities told him to initiate sales tax and do anything rather than take funds away from the small communities. �f Mayor Fink has proposed a Railbelt coalition, they had a meeting in Juneau. 4 mayors from the Kenai Peninsula agreed they would not participate. Anchorage may have - to lay off 500 people or 25%. This would continue to - cause the economy to spiral downward. This resolution _ says we will support Municipal Assistance and Revenue Sharing based on 1986 level. That is higher than last year. The Kenai Borough resolution states priority $1 is "Fait Accompli." #2 is what is in our resolution. N3 and #4 must be Railbelt Energy funds. The amount is what the Railbelt fund has in it. If we use that, other projects will not be done. In supporting the first part of the resolution, he said he would bring ' `�'''•_ '' the rest to Council. He did not recommend capital ". improvement project money for this. The Railbelt funds have already been appropriated. To re -appropriate them „ 4 would not be right. councilman McComsey said Fairbanks had to lay off over 100 people. Mayor Williams noted that is 1/2 of their work force. But money to bail out Anchorage should not be from the Railbelt Energy fund. - City Manager Brighton added, it is close to $350,000 additional for the City of Kenai. Councilwoman _ O'Reilly said she had difficulty with Borough Resolution 88-40 Section 2-A. They have not done anything locally. This should be a joint effort. - Notion passed by unanimous consent. C-12 Renewal of Liquor License Runway Lounge • ._-=---------_— ,... - _ - Little_ Ski - Mu --- Little Ski No approved by Consent Agenda. Runway Lounge. Mayor Williams noted they are $10,000 behind in their rent. He recommended we shut them down, as well as non -recommendation for approval to ABC. City Manager Brighton suggested we give them a E' grace period to get current. Legal Asst. Sutcliffe •'� =: said we issued them 30 day notice to quit the premises {: 31 days ago, asking them to get their rent current. PUBLIC COMMENT: a. Rene Daniels, Runway Lounge. They are only one City. Accountant Parnell month behind to the stated the check paid this date was NSF. Sandy { Daniels replied she covered it and asked the bank •- : ' -- •-,- - - ,-- -�' to notify the City. Acct. Parnell stated she is the • „. - still $4,000 in arrears. Sandy Daniels said -_-: restaurant is a separate issue. Rene Daniels said - - �P,,: the bar would not have had a problem this year. i4 jl �i KENAI CITii COUNCIL APRIL 6, 1988 s `> PAGE 7 { They decided to open the restaurant. Sandy Daniels said they were current till they opened. the restaurant. Jan., Feb. and March should not be in 1987. Rene Daniels added, that is not due till April 30. She was not aware this was coming r up this date. There is a change of partnership, she thought she had time. The restaurant is paying its way now. Mayor Williams noted the City lowered the rent. Rene Daniels said they did not know the $5,000 was due this date. Sandy Daniels said they are they are getting on their feet now. Rene Daniels said they put $1,800 from the bar into the restaurant. Mayor Williams asked if the Borough was working with -a monthly instead of - -- -- ---- — - - quarterly now. Rene Daniels replied, for 1987. Mayor Williams said the Borough is placing more effort to collect taxes due. Councilwoman Monfor said Footwear Gallery owed for years, this has only been 2-3 months. They have taken over a bad situation. She would like to give them 30 days to clear this up. Mayor Williams said the Confession of Judgement is over one year ago. Councilman Measles said we cannot evict on sales tax, the only recourse is rents. MOTION: Councilman Measles moved, seconded by Councilwoman Monfor, to table action till the next meeting. VOTE (Passed)t Yes: O'Reilly, Swarner, Ackerly, McComsey, Measles, Monfor Not Williams C-13 Renewal of Liquor License - The Rig Clerk Whelan reported the Borough has requested tabling action as they are working on payment of sales tax. MOTION, Tablet Councilman Measles moved, seconded by Councilman McComsey, to table action. Motion passed by unanimous consent. D. COMMISSION/COMMITTEE REPORTS D-1 Planning & Zoning None D-2 Harbor Commission Harbor Comm. Chairman Quesnel reported Administration is working on leases for the next season. Councilman McComsey asked if there were any replies on the ad in the papers. Public Works Director Kornelis replied, they had a pre -bid conference April 5, bid opening is April 14. (There will be two bid openings) There are changes from last year. They will increase the minimum bid because of the added crane. The processors wanted a commitment to tell the fishermen. They have a two or four year option. He has the bid specs if Council wants to review them. Admin. Asst. Gerstlauer reported on the REDI grant for $100,000. The pre-app was KENAI CITY COUNCIL APRIL 6, 1988 PAGE 8 submitted, final submittal is April S. She expects to hear in the next couple of weeks. Mayor Williams noted Admin. Asst. Gerstlauer attended a grant writing school last week. Mrs. Gerstlauer added they worked on the Kenai ball field grant app in the class. D-3 Recreation Commission Councilwoman Monfor expressed concern about the people outside the Rec Center smoking and under age. Could there be any other place they could smoke? Recreation Director McGillivray replied they are working on that. There is no smoking in the building. D-4 Library Commission Councilwoman Monfor reported they met April 5. She noted Librarian DeForest takes the volunteers to the Chamber lunch on volunteer Week. MOTION: Councilwoman Monfor moved, seconded by Councilman Ackerly, to pay $125 for lunches for library volunteers. Motion passed by unanimous consent. D-5 Council on Aging None D-6 Airport Commission None D-7 Economic Development Commission None D-8 Kenai Bicentennial Commission Councilwoman Monfor noted the Goals & Objectives distributed this date. Council stood in recess to review. MOTION: Councilman Measles moved, seconded by Councilman ____Ac erl,- to- acc�t the Goals & Objectives as submitted by the Kenai Bicentennial -commission -0 - - --- - - - - Motion passed by unanimous consent. Mayor Williams asked if they had started on the contest yet. Councilwoman Monfor replied no, they were waiting for Council approval. Councilman Ackerly suggested we have a speakers bureau to be available to schools and organizations to talk about the Bicentennial. Chairman Cowan agreed, noting it could tie in with the Bill of Rights Bicentennial. Mayor Williams said Councilwoman Monfor talked to Rep. Young, he said he would assist in any way he can. Chairman Cowan said he would like a work session with Council to review finances and political concerns. Mayor Williams suggested after budget sessions. Councilwoman Monfor asked that the Goals & objectives be sent to the Legislators in Juneau. KENAI CITX COUNCIL APRIL 6, 1988 PAGE 9 D-9 Misc. Comm/Conan None E. MINU'iES E-1 Regular Meeting, March 16, 1988 Approved by Consent Agenda. F. CORRESPONDENCE F-1 Rep. Swackhammer - Capital Improvement Project List F-2 Son. Fischer - Trail Lakes -Hatchery Resolution F-3 Sen. Stevens - Military Facilities F-4 U.S. Fish & Wildlife - Land Exchange Approved by Consent Agenda. F-5 Rep. Grussendorf - Economic Limit Factor City Manager Drighton distributed material and explained, there is an excess of $1 Billion to remedy the $.5 Billion shortfall. They cannot agree on which one of the funds to'dip into. Mayor Williams added, the Mayor's Conference are going back to their Councils for recommendations on this. F-6 Alaska C&RA - Revenue Sharing Payment Mayor Williams said the original amount was $353,111. What would it be at 1966 level? City Manager Brighton replied, this is only revenue sharing without municipal assistance. His figure was a combination of both, about $350,000 additional. Mayor Williams explained, this was started in 1981 to serve communities that have people living in an area and working in other areas. F-7 NBA - Financing of Public Projects Mayor Williams noted all the banks are recognizing municipalities as viable business entities. G. OLD BUSINESS None H: -NEW-BUSINE - .. - - - -H-1 - Ord-.-12-5-3-88 --Increas.- Rev/Appns Outstanding-- _- - - - Defaults, 1st & 2nd Deeds of Trust - Dairy Queen Property 1. Public Hearing, Ord. 1253-88 MOTION: Councilman Measles moved, seconded by Councilwoman O'Reilly, to introduce the ordinance. Legal Asst. Sutcliffe explained, Atty. Rogers had a conflict in this matter. As a result, Mr. Sutcliffe does also. The reason for this is to avoid foreclosure by the State. (foreclosure costs up to $10,000) Councilman Ackerly stated he would abstain from voting because of a conflict of interest. VOTE: ,.1 �n 3. . KENAI CITY COUNCIL APRIL 6, 1988 PAGE 10 Motion passed unanimously, with Councilman Ackerly abstaining. MOTION, 2nd Readings Councilman Measles moved, seconded by Councilwoman Monfort to have the 2nd reading.thi.s date. MAYOR WILLIAMS SUSPENDED THE RULES, DISCUSSION WAS HELD BEFORE THE VOTE. COUNCILMAN ACKERLY WAS EXCUSED FROM THE CHAMBERS: 9:25 PM. Mayor Williams explained, he had requested the attorney to be here. He has been in court in Anchorage and had to return to Anchorage. We are without legal counsel. Legal Asst. Sutcliffe cannot advise us. Councilman Measles said the only thing pressing is the $56,000 to the State. We could deal with that, and discuss the balance at the next meeting. Acct. Parnell agreed that was the only pressing item. Mayor Williams asked if it would come out of airport funds. Answer - yes. Councilman Measles said if we amend and have a 2nd reading, the balance will be delayed for 30 days from this date. Will that be a problem? Acct. Parnell replied she did not know. Mayor Williams said we cannot complete foreclosure for 90 days. The remainder of the money will not be due till we obtain the property through foreclosure. Acct. Parnell said appropriating the money does not mean we will spend it. It will have to come back to Council. City Manager Brighton said the only expenditure to be approved is $56,000. Mayor Williams asked Councilman Ackerly to return to the meeting, collect his material and leave for the rest of the meeting. RECESS WAS CALLED, 9:30 PM. COUNCILMAN ACKERLY LEFT CITY HALL: 9:32 PM. VOTE, 2nd Reading: Motion passed by unanimous consent. MOTION: Councilman Measles moved, seconded by Councilman Mccomsey, to adopt the ordinance. PUBLIC COMMENT: a. Vic Tyler, Tyler Vending Co. He is also a land owner. This scares him. He has a similar situation. A precedent is being set. He cannot do deed in lieu of foreclosure. They will not take it back. They will chase him for his assets. He could quit making payments to the City and the State, one year from now the City would take it back and he will walk down the street. Mayor Williams said we are without legal counsel, but it appears that is true. The City finds itself in 3rd position. The 3rd position is worth more than 1st and 2nd put together. The land -is worth $300,000. We are facing a sacrifice if we do not exercise this. We put ourselves in a position of losing all. Mr. Tyler said with legal counsel they could stay in business for another year. He would like to go to the City with a deed in lieu of foreclosure and get his money back. He took a -;. KENAI CITY COUNCIL PAt3EAPRIL11 , 1988 big loss on land in the City, in excess of $100,000. Sometimes you just have to walk away. if you fund this, it is the beginning of a lot of trouble. Mayor Williams said he has taken hits in the last year also. We asked, how critical is this? City Manager Brighton replied, that is what Council had an attorney for. He cannot speak for him. Mayor Willia*6 noted the letter from the State to Mr. Ackerly dated March 22 was final demand for payment - all payments and late charges. Councilwoman Monfor objected, stating we should not discuss this without counsel. Councilman Measles suggested we table for a special meeting prior to April 19 date, at which time we will have an attorney present. Mayor Williams noted he was requesting a budget work session April 13, this could be changed to a special meeting. Councilwoman Monfor objected, stating counsel has said we should pay. Councilwoman O'Reilly said this is a very serious matter for all of us. We need an attorney. MOTION, Tables Councilman Measles moved, seconded by Councilwoman Swarner, to table action on Ord. 1253-86 till a special meeting on April 13, 1988. VOTE, Table (Passed): Yes: O'Reilly, Swarner, Williams, McComsey, Measles Nos Monfor H-2 Bills to be Paid, Bills to be Ratified MOTION: Councilman Measles moved, seconded by Councilman McComsey, to approve the bills and delete $56,000 to the State of Alaska. Motion passed by unanimous consent. H-3 Requisitions Exceeding $1,000 MOTION: Councilman Measles moved, seconded by Councilman -- McComsey,-to approve the requisitions as submitted..-__ _Motion passed by-nanimousconsent._ H-4 Ord. 1254-88 - Amend MC Title 23 - Re -Employment Approved by Consent Agenda. H-5 Disc. - Wildwood Annexation Mayor Williams reported Administration and KNA have been discussing annexation. He suggested Council allow the Economic Development Comm. to review this and make a report to us within 60 days. Councilwoman Swarner asked, when was the most recent study? Mayor Williams replied, we have an on -going study. City Manager Brighton said Finance Director Brown did a numbers situation in 1985- It was up -dated 2-3 months ago* it is relatively current. We will need reports from the Police Dept., Fire Dept., Public Works Dept., Finance Dept. Councilwoman Swarner asked if there KENAI CITY COUNCIL APRIL 6, 1988 PAGE 12 would be an additional cost. Mr. Brighton replied, manpower and time. Mayor Williams said the Economic Development Comm. may have expenses, from their budget. He noted there is only one owner in Wildwood. Councilwoman Swarner asked, if.we don't need a report, why do it? Mayor Williams explained, all sides must be looked at. MOTION: Councilman McComsey moved, seconded by Councilman Measles, to pass on the item to Economic Development Comm. Motion passed by unanimous consent. H-6 Approval of Extension of Airport Terminal Leases Councilwoman Swarner asked if any of these concessions are asking for a decrease. Answer - no. MOTION: Councilwoman Monfor moved, seconded by Councilwoman O'Reilly, to extend for an additional three year period, lease rates of $1.65 per sq. ft. Motion passed by unanimous consent. Councilman Measles noted we are doing something different this year, in the past we established the lease rates after budget approval. City Manager Brighton replied, in the budget we established the lease rate as a percent and sq. ft. costs. Councilman Measles said unless there is a reason to do it now, he would like to see the budget first. Admin. Asst. Gerstlauer said last -year we did not establish terminal rates, there was a resolution to keep them the same. Mr. Brighton added, it was done with the budget. Admin. Asst. Gerstlauer said we did not have a resolution regarding the rates, we just used the 1986 rates. Councilman Measles added, the resolution adopted the budget. Airport Manager Ernst explained, we are trying to do this in a timely manner by June 30. He had no objection to waiting. Mr. Brighton noted Council can change it at budget time. Mr. Ernst said he would not notify the lease holders. H-8 Disc. - Task Force - KPC, Oil Companies, City - Fire ----- - - - Training School_- -- - - - - - --- -- -- -- - - -- — - - -- - Mayor Williams said we are still pursuing the legislature for $500,000 for a training ground. Is Council willing to form a task force or do this in-house? No action taken by Council. H-9 Disc. - Railbelt Coalition Participation Mayor Williams asked Council to review the material in the packet. H-10 Disc. - Airport Comm. Recommendations a. Float Plane Basin b. Terminal Restaurant H-10-a I n KENAI CITY COUNCIL i APRIL 6, 1988 PAGE 13 _.... Councilwoman Swarner asked if any spaces have been rented yet. Airport Manager Ernst replied, the ads just went out. City Manager Brighton asked, when the float plane basin is done, will we have tie -down slips? Mr. Ernst replied, the first 15 will be staked, we will charge a fee. councilman Measles noted they are not . slips like the boat harbor. He asked if our lease rates were in line with other locations. Mr. Ernst - r replied yes. Councilman Measles asked, what is the tie down rate for wheeled planes? Mr. Ernst replied, $42 including tax. The use of a water runway will only be 5 months. There will not be skis in winter, there is a liability with the thickness of the ice. He recommended the ski facility be on land. Councilman Measles asked, what do other facilities do regarding , liability? Mr. Ernst replied he did not know, this will be the next step. MOTION: Councilwoman O'Reilly moved, seconded by Councilman McComsey, that the rates for the float plane basin be set at $360 per year for non-commercial tiedown slips and $480 for commercial tiedown slips, as recommended. Mayor Williams asked if this was in conflict with the 3 year lease set by Code. Councilman Measles replied, this is not contract or lease. Mr. Ernst added, it is a user permit. Motion passed by unanimous consent. H-10-b Airport Manager Ernst said the lease of the terminal is up June 30. Councilman Measles said the airport is entering into its busiest part of the year. Their odds of pulling out between now and July 1 are better than in winter. He would be concerned closing now. It would be hard to get anyone for the rest of the summer. If it was November, it would be different. Mayor Williams said they were given a confession of judgement in three months, or was that the previous lease? Mr. Ernst replied, that was the previous lease. The reason for a one year lease is because of the remodeling. Legal Asst. Sutcliffe explained, when their lease expires June 30, you could allow on a month to month basis till Fall, then evict or they could leave. councilman Measles said he was concerned about entering into- -a -year - lease...f _we go- ahead with renovation, it would be cleaner for the City and the lessee -to -get -_renovation completed or at least know what we will do and then go out for RFP: it will- be harder -to --get a ---- good bid. Mayor Williams said we put a stop -gap measure on renovation pending a review of our finances. We were to review in the Fall. The best choice is month to month lease till Fall. Councilman Measles suggested we should look at it sooner and more often. If the Borough does not withdraw their objection, they will not have a license anyhow. MOTION: Councilman McComsey moved, seconded by Councilman Measles, to pursue a month to month basis operation till Fall and continue with the people in there now. At that time, go for a long term lease. Motion passed by unanimous consent. r G RENAI CITY COUNCIL APRIL 60 1988 PAGE 14 H-11 Disc. - Purchase of a Fax Machine Mayor Williams explained, he has had 2 packets -that the Clerk has had to pick up at the Borough. It is the latest machine in use. Councilwoman Monfor noted, there is a phone charge. Mayor Williams replied, $32. councilwoman Monfor said she would like to see how, often we will use it. Mayor Williams said he cannot justify with past use, the more it comes into use, the more we will need it. Mayor Williams said he would review this with budget discussions. H-12 Schedule Budget Work Sessions council agreed to a work session on April 13, with the Special Meeting. I. ADMINISTRATION REPORTS I-1 City Manager City Manager Brighton noted the proposed budget was passed out this date. He hopes to complete in 30 days. I-2 Attorney Legal Asst. Sutcliffe spoke. a. Atty. Rogers is ill. b. Regarding Ord. 1254-88 (Amend Title 23). The City got sued for $200,000 regarding this. The Mayor has been served. c. There is a special foreclosure list in the packet. Most are Crown Development. d. Regarding the letter from Gloria Church (Info #14). There is $22,000 due. if the Borough forecloses, they will lose their lease. He recommended we wait and see what the Borough does. 4 i I-3 Mayor Mayor Williams spoke. a. The Chamber of Commerce will be meeting with the Council April 15 to review the Visitors' Video Guide. b. Regarding the chambers showcase (material distributed this date). MOTION: f -- ------------------ -- -- --- ---------------- ---- - -- Councilwoman Monfor moved, seconded by -Councillmlan --.— McComsey, to authorize $225 for the showcase. Motion passed by unanimous consent. Council agreed to set it under the window in the back of the chambers. c. Regarding his letter to Sen. Stevens dated April 5, 1988. Within 18 months, the Navy is looking at two P-31s in this vicinity. It was recommended by the Legislature to put it in Kenai. He suggested Council not confuse this with the Air Re3cue Wing. There are 200 people involved. d. He recommended Ervin Witbro to replace Michael Meeks for Harbor Commission. Council approved the recommendation. ff. i a� KENAI CITY COUNCIL APRIL 6., 1988 PAGE 15 e. The Volunteers' Appreciation reception. Suggested date is May 20 (item I-4). Council agreed to the recommendation. I-4 City Clerk Clerk Whelan spoke. a. The proposed amended agenda (item I-4). Council agreed to the recommendation. b. ___She would like to know who wants name tags. c. Regarding election judges exemption from - employment verification procedures (item 1-4). There was a concern that judges would have to complete INS form I-9, proof of citizenship. This establishes exemption from this requirement. d. Regarding national standards for voter registration proposed in U.S. House. Alaska Div. of Elections has reviewed them and replied. Council can review them if they contact the Clerk. e. Ballots for 1986 have been destroyed (item I-4). City Code requires this be reported to Council. f. Apparently the packets had some errors in preparation. There is temporary help in the office, there have been some mistakes made. J. PERSONS PRESENT NOT SCHEDULED TO BE HEARD a. Councilwoman Monfor. Regarding the letter from Councilman Ackerly on the opening of Nikiski school. The principal considered KCHS as a rural high school in town. When they open Nikiski they will have 300+, KCHS will have 400+, the Jr. High will have 200+. There will be 900 across town. We will have to compete. City Manager Brighton said Council authorized that statement 3 years ago. They did everything they could to prevent this. These people are bringing in on emotion, not with economics or academics. Councilwoman Monfor suggested the Mayor write a letter to the Borough stating what is in the Councilman Ackerly's letter and Council's feelings. The boundary would be the City limits and current boundaries on the other side. Mayor Williams said at one school board meeting he attended he got a head count of people from Kenai. There were not many. - -- Maybe -the- residents -of --Kenai- do not - - - understand the full implication. Council agreed to send the letter. City Manager Brighton said, in the public opinion survey, most people did not want the schools open. Mayor Williams said, regarding the economic impact on the City, people would limit their shopping in Kenai as Nikiski was built up. Councilwoman Monfor said they will open the school eventually, but they should open both and give equally to all schools. Mayor Williams said he and Councilman McComsey attended Soldotna Chamber of Commerce. The speaker from C&RA spoke regarding a new Borough at Nikiski. The City of Kenai must soon become involved in strong thinking regarding this. it is their intent to ask us to j04n. Do we want to get into a borough with 50% of the entire Borough tax base or a borough with 80% of the tax [JAI CITY COUNCIL RIL 6, 1988 GE 16 load? Councilman McComsey said Kenai has to go with them or they will not get their borough. Mayor Williams said they could have 2 second class, cities in a second class borough. They could have a unified municipality. They would not have control of their schools. The only way they could control their schools is creating their own borough. Councilman MoComsey noted the petitions will be on the streets in 2 weeks. They need about 20300 signatures. This will be a ballot of the people in the area. b. Councilwoman Swarner. She asked if there was a list of roads to be brought up to standard. - Public Works Director Kornelis replied, he made a list about a year ago. Councilwoman Swarner noted the dirt road off 4th & Aspen. There is erosion to 4th, it needs to be corrected. 'Mr. Kornelis explained, it is 1/2 right of way. There is a house in the right of way. Councilwoman Swarner said 5th St. in Woodland S/D is eroding. Mayor Williams asked about the $140,000 budgeted for street repairs last year. Mr. Kornelis replied, that will be done in the Spring. There is about $1000000 left. The majority is for sealcoating Woodland, Mommsen and Redoubt. DJOURNMENT: Meeting adjourned 11:05 PM. llju-� 'anet Whelan :ity Clerk AppaOVED DY C .IQL z -PP ---� DATE Gly vJ= ;i ,. KENAI CITY COUNCIL PARTIAL TRANSLATION APR IL 6, 1988 H NEW BUSINESS 1 H-6 Approval of Extension of Airport Terminal Leases Councilwoman Swarner asked if any of these concessions are asking for a decrease. Answer - no. -f MOTION: Councilwoman Monfor moved, seconded by Councilwoman O'Reilly, to extend for an additional three year period, at a lease rate of $1.65 sq. ft. ... Motion passed by unanimous consent. Councilman Measles noted we are doing something ,'. different this year, in the past we established the lease rates after budget approval. City Manager �..; Brighton replied, in the budget we established the ' lease rate as a percent and sq. ft. costs. Councilman : Measles said unless there is a reason to do it now, he would like to see the budget first. Admin. Asst. aerstlauer said last year we did not establish terminal �R. rates, there was a resolution to keep them the same. Mr. Brighton added, it was done with the budget. " Admin. Asst. aerstlauer said we did not have a resolution regarding the rates, we just used the 1986 rates. Councilman Measles added, the resolution adopted the budget. Airport Manager Ernst explained, we are trying to do this in a timely manner by June 30. - He had no objection to waiting. Mr. Brighton noted Council can change it at budget time. Mr. Ernst said -. he would not notify the lease holders. `.... _:. anet Ruotsala City Clerk