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HomeMy WebLinkAbout1988-06-01 Council MinutesAGENDA • � ` �•'_ KENAI CITY COUNCIL -REGULAR MEETINd „.. JUNE 1, 1986 - 7:00 PN A. CALL TO ORDER 1. Pledge of Allegiance 2. Roll Call a. Resignation of Councilman Ackerly b. Discussion - Selection of Councilmemher �a 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. ". . B. SCHEDULED PUBLIC COMNENT (10 Min.) ? 1. Royal Pacific Representatives - Pipeline Contract - C. PUBLIC HEARINGS - 1. Ordinance 1260-88 - Amending Kenai municipal Code, Title 23 - Exempt Employees ' a. Substitute Ord. 1260-88 2. ordinance 1261-88 - Increasing Rev/Appns - Senior r Day Care Donations - $926 3. Ordinance 1262-86 - Increasing Rev/Appns -senior �n 4. Citizens Donations - $3,821 ordinance 1263-88 - Replacing Tables in Personnel Regulations, Title 23 - New Salary Structures and 1� - 5. Hourly Rates Ordinance 1264-88 - Adopting Annual Budget - FY 1988-89 i 6. Ordinance 1265-88 - Increasing Rev/Appns - } Runway/Taxiway Overlay - $66,000 k 7. Resolution 88-41 - Rate of Levy of Property Tax for FY 1988-89 - 2.7 Mills `.; -- L .i ' E. F. H. v 8. Resolution 88-42 - Transfer of Funds - Parks Dept. Personnel - $8,000 9. Revolution 88-43 - Transfer of Funds - inspection/Survey - Coral & Cohoe - $12,320 10. Resolution 88-44 - Award Bid - Construction, Drainage, Water & Sewer - Coral & Cohoe - Zubeck Inc. - $243,904.25 11. Resolution 88-45 - Award Bid - Curb & Sidewalk Repairs - Valley Concrete - $15,871.95 12. Resolution 88-46 - Authorizing Participation - Grant Application - Developing seafood Industrial Park 13. *Liquor Application for Restaurant/Eating Place - Pizza Paridisos COMMISSION/COMMITTEE REPORTS 1. Council on Aging 2. Airport Commission 3. Economic Development Commission 4. Harbor Commission 5, Kenai Bicentennial Commission 6. Library Commission 7. Recreation Commission S. Planning & Zoning Commission 9. Misc. Comm/Comm MINUTES 1. *Regular Meeting, May 18, 1988 CORRESPONDENCE 1. *Barbara Crane, Tundra Times - Thanks to Mayor Williams 2. *Alaska C&RA - State Revenue Sharing Entitlement OLD BUSINESS NEW BUSINESS 1. Bills to be Paid, Bills to be Ratified 2. Requisitions Exceeding $1,000 3. *Ordinance 1266-88 - Increasing Rev/Appns - Swires, Lawton - $823,000 F 4. *Ordinance 1267-88 - Amending Kenai Municipal Code r_ a: Title 17 New Date of Application of Penalty and i. Delinquent ent Water & Sewer Hills • 4u *dames of Chance & Skill - �' Peninsula Learning Resources 6. Approval - Inspection, Survrjying, Testing -Coral & Cohoe - Wm. Nelson & Assoc. a 7. Discussion - Dena'Ina Pt. Estates Addition #1 Be Discussion - Schedule Wort; Session a. Camper Park - Heaver Creek -- b. New Building Function - Kenai Bicentennial 9. Discussion - Russian Orthodox Church Repairs I. ADMINISTRATION REPORTS 1. Mayor ' 2. City Manager 3. Attorney 4. City Clerk - 5. Finance Director :• 6. Public Works Director ,. 7. Airport Manager m J. DISCUSSION 1. Citizens 2. Council K. ADJOURNMENT p • n -KENAI CITY COUNCIL - REGULAR MEETING - MINUTES JUNE 1, 1988 - 7:00 PM KENAI CITY HALL MAYOR JOHN J. WILLIAMS PRESIDING A. CALL TO ORDER A-1 Pledge of Allegiance A-2 Roll Call Presents Chris Monfor, Marj O'Reilly, Linda Swarner, John Williams Absent: Ray Measles, Art MCComsey A-2a Resignation of Councilman Ackerly MOTION: Councilwoman O'Reilly moved, seconded by Councilwoman Monfor, to accept the resignation of Tom Ackerly. Motion passed by unanimous consent. A-2b Disc. - Selection of Councilmember Mayor Williams distributed a proclamation of thanks to Mr. Ackerly. Mayor Williams noted we have had many ways of appointing a replacement for a Council member. Mr. Ackerly has submitted a recommendation. Councilwoman O'Reilly suggested waiting till all councilmembers were here. Councilwoman Monfor said she did not think there should be a vacancy longer than one more meeting. She spoke to Sally Bailie, Mr. Ackerly had recommended her. Mrs. Bailie said she would serve the balance of the term but did not know about next Fall. She would like someone with prior experience with Council. Mayor Williams said it would be discussed at the June 15 meeting. A-3 Agenda Approval a. Mayor Williams noted amendment to Ord. 1264-88, (Adopting Annual Budget) distributed this date. It does not increase the budget, just a change. Council approved the agenda as submitted. A-4 Consent Agenda s (� a. Mayor Williams asked that item H-3 (Ord. 1266-88 - swires, Lawton) and H-4 (Ord. 1267-88 - Delinquent Water & Sewer Bills) be deleted from the Consent Agenda. Council approved the Consent Agenda as amended. B. SCHEDULED PUBLIC COMMENT w B-1 Royal Pacific Representatives - Pipeline Contract :.It,.....�� Atty. Rogers distributed the packet from the May 25 work session. He explained, this was discussed by phone on May 31, they have resolved most of the differences. 1 ti �v1' Y . KENAI CITY COUNCIL I, � - - —-------- - JUNE 1, 1988 _ PAGE 2 Atty. Petumehos, representing Marvin Dragseth. He reviewed the problems not resolved. �. . a. Royal Pacific is a corporation in good standing, well capitalized. There is no reason Mr. Dragseth has to sign personally. They requested it be signed as a corporation. If they want to sell the corporation, obligations and privileges would sell with the business. Councilwoman Monfor noted we have done it with other companies. Atty. - Rogers explained, in previous instances where a corporate entity signed, the City had problems. in the last 5-6 years he has always insisted on individual signatories unless -authorized by ------- -_-- ---- `-=---------= Council. Council has done that but only after submittal of financial statement. There could be substitution of personal signator for another in a sale. The last instance where the signature was waived was a New York corporation. Some have refused because of public disclosure. Councilwoman O'Reilly asked if we leave it as is, -- what disadvantage would it be to Mr. Dragseth if it is sold? Atty. Rogers replied we could -" substitute Mr. Dragseth's signature for a new signature, that can release Mr. Dragseth's signature. Councilwoman O'Reilly asked, can we put in a clause to that effect? Atty. Rogers replied yes, there are two reasons for not _ requiring individual signatures. 1) To preclude personal liability, and 2) Tax reasons. Only a corporate entity would be responsible to the City. Joe Kross, Engineer. This corporation, because it is a licensed fish processor, provides Alaska Dept. of Revenue a very complete report. It is confidential public record with Dept. of Revenue. it must be on file each calendar year. That is a good show of faith of the company to pay their obligation and withstand scrutiny. Atty. Petumenos added, this is a small part of the company. The newspaper article in the packet implied a large amount of fish waste, that is inaccurate. Mayor Williams asked, if the event of - company failure, who is the major part of the financing? Atty. Petumenos replied, CFAB. Atty. Rogers said if Council treats this differently they may be called upon to do so again with those that are not as solvent. (ex.: Far North Oil & - _ --Gas) - -Atty.-Petumenos-- said_ he __wou.ld _object- -to -any comparison of this to a high pressure oil _pipeline.__ftty_. Rogers noted he has drafted the document so it could be used in the future or any" �>> other than certificated utilities. Atty. Petumenos asked for language that the City agrees, if sale of Royal Pacific or lease of operations, that Mr. Dragseth will be released from obligation. Atty. Rogers said there is no need for additional language, the City still has discretion to let Mr. Dragseth off. Mayor Williams explained, we just want Mr. Dragseth to sign as being personally responsible. When he sells, we write a release and the next person will be responsible. Atty. Petumenos said they are not asking for a line, they are asking for a permit on the right of way. Limiting it to New York stock exchange is overly restrictive. Marvin Dragseth, Royal Pacific Fisheries. The - permit was approved by Dept. of Transportation and rf: KENAI CITY COUNCIL JUNE 1, 1.988 PAGE 3 b. Dept. of Environmental Conservation. if you can supply them with enough material, it should be good enough for. the City. He can submit a financial statement but not for publication. Mayor Williams said we are talking about bringing a pipeline out of the City into the City. We will be responsible if there is a problem with the neighborhood. Mr. Dragseth asked if the City required this of the four other processors. Mayor Williams replied none run across City property. Mr. Dragseth replied, then lease him the right of way. Atty. Petumenos asked if you have insurance provided and cash bond, would that be more secure? Councilwoman Monfor asked, how many months per year would this be used? Mr. Dragseth replied, April 1 to Sept. 15. Councilwoman Monfor noted, this is just waste water. Mr. Dragseth added, 90% of it is in a short period. Mayor Williams asked, what if there is a major leak? Engineer Kross replied, it is high density polyethylene line, capable of 300 psi. The pipeline will be purged with air in the Fall, the system will fully freeze and expand without breaking. it is purged with fresh water and air. The chances of malfunction are remote. if a contractor breaks the line, it will be repaired at the time of excavation. In the Spring it will be purged with fresh water. A meter will show if all comes out. They have been designed for this. Councilwoman O'Reilly said one of the reasons for approval was Mr. Dragseth. He has a wonderful reputation. We don't know the new buyer. City Manager Brighton said if this were a new company trying to determine if they were going to do something here, this Council would bend over to provide economic incentive to get them here instead of somewhere else. This is a local industry, it provides substantial jobs. Most of the money is in the local area. if they went bankrupt, Public Works could dig it up in two days. From an exposure standpoint, this is insignificant from the overall view. The facility is outside Kenai, but Kenai benefits substantially. To get hung up on this single clause is silly. The exposure is not there from the standpoint of going out of business and the City monitoring the line. Atty. Petumenos. The fee amount (item B) was left blank, it was never discussed. Atty. Rogers explained; --that -was-a -gratuity on -his part- in _case Council thought of something. Councilwoman Monfor -----said--the- money- may--not.-be._appropr_iate,_ but a donation of fish to the Chamber of Commerce for July 4 would be wonderful. Mr. Dragseth asked, how much? Councilwoman Monfor replied, up to 1,000 lb. Mr. Dragseth suggested $400 per month from now on. He explained, he did not have a problem, it was just the way it was brought to him. Atty. Petumenos said the State filing fee is $400. He suggested that amount on one time. Mr. Dragseth said he heard this three days ago, he does not want it in the papers. He will give the City more than 100 lb. Councilwoman O'Reilly said we don't need this in the permit. Councilwoman Monfor suggested taking it in pounds of fish, not dollar amount. Mr. Dragseth said, up to 400 lbs. of sockeye. i n�. n - KENAI-CITY COUNCIL JUNE 1, 1988 PAGE 4 c. Atty. Petumenos referred to renewal. (item C) Atty. Rogers explained, a five year term with one year renewal for 10 years. He arbitrarily capped 10 because otherwise it was in perpetuity. Councilwoman swarner asked, what is the projected life of the plastic? Engr. Kress replied, indefinite. It has been on the market for 30 years. Enstar uses it for their high pressure lines. d. Atty. Petumenos referred to reservation of rights. (item G) He requested it be stricken, it says the City can take away their ability to take water from the river. His concern is that it leaves them in an uncertain situation. That is not normally done. It makes it hard to know where to go. Mayor Williams said the same clause is in the State grant. Engr. Kress said the state allows a person in the right of way to have certain rights. Kenai does not have this, it is the only pipeline in the area. Atty. Rogers replied the City is subject to covenants of good faith, their action cannot be unreasonable or capricious. They have litigated right of way relocation extensions. The City is not taking a harsher stance than relocation of certified utilities. They have been in the Supreme Court regarding this. Mr. Kress said it does not offer them an opportunity to protect the plant to operate. If for some reason the City decides to preclude them from using it, it stops up from operating. The courts are useful but there is a time frame. Atty. Rogers replied we have 30 days required to go to Council or pursue administrative remedy or legal. Atty. Petumenos asked to extend to 120 days. He explained, if you asked us to remove in the fishing season, it would destroy the season. They need time to find alternatives. Atty. Rogers said 30 days was for two Council meetings. 45 would be more appropriate for time on the end of two Council meetings. Atty. Petumencs explained, it is not legal but a practical engineering problem. That is not enough. Atty. Rogers said it should be solved during the same fishing season. He is looking at the construction season. Mayor Williams said we have spent thousands of dollars regarding utilities. We will not back up now, we have almost won. There is close to $1 Million liability._ Atty. Petumenos said 120 days would be the fishing season. Mayor -Williams - said the -City knows one year in advance if major construction — - - -- - will --be -done—in-an area-0 Mr. - Kress--said-120--days - -- would give t.taem time to work before shutting down. Mayor Williams asked Public Works Director Kornelis, with the time element, is there a major problem with 120 daysT 'Ar. Kornelis replied, some times they do not know what project they will do till just before they do it. Because of the cost of relocation, utilities will not do anything till Council approves. some times it is less than 30 days. This will be out of the right of way and will not be a problem. The only problem is if the contractor goes in and there is a utility in the way, there is a conflict. Council agreed to 120 days. e. Atty. Petumenos noted Right of Entry. (item Q) He has no problem with granting the City right of A :.. ._.,> ti o i rr �� KENAI CITY COUNCIL - JUNE 1, 1988 PAGE 5 f way. It asks for indemnification of costs of any i delay caused by work done under this permit. If Ij anyone spends more time than planned, Royal Pacific would have to pay. Any contractor should plan for the existence of pipe, Delay costs in construction can be enormously high. If the contractor fails to anticipate the existence of pipe, even with their negligence, Royal Pacific must pay. Atty. Rogers said indemnification would be only if the City would have to pay. He cannot envision where the City would have to pay for one's negligence. If the City was to pay for construction delay, it would be as a result of something other than contractor negligence. It would be a result of the pipeline not being put in pursuant to specs. Atty. Petumenos asked that the permit say that. He added, item T says it is in conformance. Atty. Rogers said he cannot anticipate all circumstances. if it pertains to Royal Pacific pipeline, it says they will pay the City. Mayor Williams said the City must be Indemnified for all problems not of City making. Atty. Petumenos said the wording says Royal Pacific will indemnify the City or its contractors on anything that will delay. He has never seen an indemnification clause such as this, regardless of fault, they have as -built surveys filed. He would have to pay regardless of how much he has done right. He suggested it be tied to item S, "Royal Pacific agrees to indemnify the City and contractor to cost tangible and intangible as a result caused by failure to file accurate as -built upon completion of improvements." That would limit their indemnification to acts they can control. Atty. Rogers replied he cannot address all scenarios the City may be brought in relative to this. It could be put in pursuant to as -built and engineering. But there could be a defect in the pipe, etc. Atty. Petumenos noted the City could be absolutely risk -free by denying the permit. They wish to be responsible for anything that they do. Their concern is the way it is drafted. They have no control over indemnification. There is a difference between when they do something wrong and something caused by a project. Atty. petumenos referred to Previous Easements and Utility Permits. (item R) They don't mind being subordinate -to certificated -utility- but -they -grant them to try to reasonably accommodate us if they - - -can-.---- His suggestion just asks_ the _utility-- to -try to accommodate. Mayor Williams said the City has a streets and sidewalks ordinance that delineates where utilities will go. Representative from Royal Pacific: Plans by engineers are submitted to the City Public Works Dept. and lines are negotiated to take that into consideration. The company will locate in the field, register the drawings. it is wrapped in wire so it can be located. Public Works Director Kornelis asked if they would have a local porson to locate the 3.ine. Answer - yes. Atty. Rogers said the reason for subordination is this is to accommodate certificated utilities because they are essential services. (water & sewer, gas, electricity) He has circulated the draft to the utilities and will circulate any changes to them. Atty. Petumenos asked if he circulated his amendments. Atty. li ,I . AE• I KENAZ -CITY COUNCIL --' -- -- -- ----- JUNE 1, 1988 PAGE 6 Rogers replied, he distributed the whole packet. Mayor Williams said the area has expanded, there may be water & sewer eventuallye it will fall on the City to be sure utilities follow this plan. Loyal Pacific is not a certificated utility, they would be subject to moving their location in favor of a certificated utility. Councilwoman Monfor t said in 20 years they will probably have - technology that this will be obsolete. The City could remove in two days. Public Works Director Kornelis said there is no place in our ordinance for private utilities, but they have a section for _1< °-utilities outside of assigned areas. Atty. Petumenos said there are reasonable alternatives. �:.. Atty. Rogers said he had a problem with --- - ---- — -- — - determination of reasonable and unreasonable. He suggested a clause making the City the determinate - - party to require relocation, not necessarily at request of the utilities but if the City finds it reasonable. Atty. Petumenos said they want it clear that they can raise the issue that we have a right not to be treated capriciously. The City is taking their ability to litigate on their own sted stating point from them. Atty. Rogers sugge , "action hereunder by the City shall not be arbitrary, capricious or unreasonable." g•. Atty. Petumenos noted insurance. (item 0) He proposed $5,000 cash bond. He noted they have the same insurance broker. Atty. Rogers said we need a comprehensive liability amount, he will call Walters & Olson for that. He added, the term of deposit is the term of renewal. $5,000 is indemnity in event of a spill. Mayor Williams asked if there is $1 Million general liability in addition. Atty. Rogers replied yes, but it covers accidents, exclusive of spills, pipelines, etc. There is no pollution insurance. Atty. Petumenos said you are dealing with water, not a hazardous substance. it is the best possible way ito dispose 0 of it. Representative from Royal Pacif c: - Because this is permitted by the U.S. and the State, the company is held liable for removal and clean-up and indemnification. There is no limit of liability except the worth of the company. it is in the Federal discharge permit. Atty. Rogers asked if he could forward a copy of this to the City. Answer - yes. Atty. Rogers explained, that was the reason for the cash bond. They also discussed monitoring visually on a daily basis.---- - -- - - Representative from Royal Pacific: The Feds and - -- - State- require -monitoring -discharge and- a yearly_ - - - - ,- --- --- - - — -- --- --- report. He will send that to the City. Atty. Rogers said he would add an addendum as a separate paragraph regarding $5,000 cash deposit with NBA, term of permit to cover any breach of the agreement. a. Signators. Mayor Williams suggested it be subject to their presenting to the Public Works Dept. all necessary permits and applications, presenting to Atty. Rogers the insurance policy and proof of bond. When approved, the City will allow a corporate signature instead of Mr. Dragseth. Atty. Rogers replied he -had no problem, he asked that Council be consistent in the future. He did not see a massive liability in this case.. f .. - 71 --- ,.— -. .. ..-n-„ter-r--ur. C•�s� a KENAI CITY COUNCIL JUNE 1, 1986 PAGE 7 e. Right of Entry. Atty. Petumenos said he did not object to acts of omission, negligent design or construction or filing on their part - they can protect themselves. But indemnification should be tied to design, construction and placement by them.- Atty. Rogers said that is in addition to the general indemnification clause because of the unique character of public right of way. The City acquiescence would allow private companies in public right of way. Councilwoman O'Reilly said the last clause in item Q does what they want. It is work that they are responsible for. Atty. Petumenos suggested adding, "by Royal Pacific Fisheries, Inc." after the word "permit." Council agreed to the request. Atty. Rogers reviewed the changes: Page 1 and throughout the document it will be drafted to Royal Pacific Fisheries Inc. Item B will be up to 400 lb. sockeye reds, amounts determined by the City. Item C will be renewal for ten years with additional renewal for the same percentage. Change 1993 to 1998 in two instances. Item G, change 30 days to 120 days two times. item H, the pipeline shall be removed -within one year of abandonment (This was not discussed by Council, but agreed) or non -consent of sale. Item 0, the amount of liability is $5,000 cash bond posted with NBA through the term and renewal with interest payable to Royal Pacific Fisheries Inc. item Q, add, "by Royal Pacific Fisheries Inc., agents, consigns, subcontractors" to the and of the paragraph. Item R, line 5, after the word "utility," add, "if required by City." Add, "by the City" at the end and add the sentence, "Action by the City shall not be arbitrary, capricious or unreasonable." item (inaudible) Councilwoman O'Reilly suggested item H, remove Mr. Dragseth's name. Atty. Rogers replied he will change in the whole thing, as well as the changes agreed before. MOTION: - - -- = Councilwoman Monfor moved, seconded by Councilwoman == O'Reilly, to accept the contract between the City and Royal Pacific Fisheries Inc. with amended changes } discussed this evening and those already made by Atty. :�. Rogers and Royal Pacific Fisheries Inc. attorney. � __.Motion _passed _by unanimous consent. Atty. Rogers said he could have it completed by June 2. - -- - - - :. -- - - - - - Councilwoman- Swarner-noted-the fish -are -not for the -- - - -- - senior citizens, but for the City. C. PUBLIC HEARINGS C-1 Ord. 1260-86 - Amend KMC, Title 23 - Exempt Employees a. Substitute Ord. 1260-88 MOTION: Councilwoman Monfor moved, seconded by Councilwoman O'Reilly, to adopt the substitute ordinance as submitted. MOTION, Withdraw: Councilwoman Monfor, with consent of second, withdrew her motion. KENAI CITY -COUNCIL - JUNE 1, 1988 ` PAGE 8 MOTION % - If ' �, Councilwoman Monfor moved, seconded by Councilwoman i! O'Reilly, to adopt the ordinance. -' MOTION, Amendment: Councilwoman Monfor moved, seconded by Councilwoman O'Reilly, to adopt the substitute ordinance as - submitted that deletes all in caps. TT- ---"�- There was no public comment. -- - - VOTE, Amendments-- __._: Motion passed unanimously by roll call vote. VOTE, Main Motion as Amended% Motion passed unanimously by roll call vote. C-2 Ord. 1261-88 - Increas Rev/Appns.- Senior Day Care :-_:; Donations - $926 - MOTION: : `. Councilwoman O'Reilly moved, seconded by Councilwoman Monfor, to adopt the ordinance. There was no public comment. Motion passed unanimously by roll call vote. .;- - C-3 Ord. 1262-88 - Increas Rev/Appns -Senior Citizen Donations - $3 ► 821 MOTION% Councilwoman Monfor moved, seconded by Councilwoman :. Swarner, to adopt the ordinance. There was no public comment. Motion passed unanimously by roll call vote,, C-4 Ord. 1263-88 - Replacing Tables in Personnel Regs, Title 23 - New Salary Structures and Hourly Rates ON Councilwoman Monfor moved, seconded by Councilwoman O'Reilly, to adopti the ordinance-* - - -- - - - - - - - ---- - -- -- -- - - - - There was no public comment. Councilwoman Monfor noted this is for the 4% increase to the employees. Motion passed unanimously by roll call vote. C-5 Ord. 1264-88 - Adopting Annual Budget - FY 1988-89 MOTION% Councilwoman O'Reilly moved, seconded by Councilwoman Monfor, to adopt the ordinance. There was no public comment. : t . KENAI CITY COUNCIL - JUNE 1, 1988 PACE 9 MOTION, Amendment: Councilwoman Monfor moved, seconded by Councilwoman Swarner, to amend the 1988-89 Annual Budget by increasing personal services accounts in the Boating Facility Fund by $6,908, with a similar reduction in the contingency account. VOTE, Amendment: Motion passed unanimously by roll call vote. Councilwoman Monfor noted there is no one from the public here. Mayor_Willia_me added, it is less than last year and the citizens have gotten a real dollar reduction even though the mill rate remains the same. VOTE, Main Motion as Amended: Motion passed unanimously by roll call vote. C-6 Ord. 1265-88 - Increas Rev/Appns - Runway/Taxiway Overlay - $66,000 MOTIONS Councilwoman O'Reilly moved, seconded by Councilwoman Monfor, to adopt the ordinance. There was no public comment. Councilwoman Monfor asked, what does this have to do with the money we have saved from the airport terminal renovation? Airport Manager Ernst replied, this is AID money and cannot be used for terminal renovation. Mayor Williams said he has been discussing this with Sen. Stevens and will send this to him. One of the things brought up was whether the runway was of sufficient strength to hold aircraft. Sen. Stevens said he would be willing to advance funds as needed. Mayor Williams will suggest it be used to extend the runway. Motion passed unanimously by roll call vote. C-7 Res. 88-41 - Rate of Levy of Property Tax for FY 1988-89 - 2.7 Mills - - - - - MOTION S _councilwoman_ Monfor moved, seconded by Councilwoman Swarner, to adopt the-resolution-0 -- - - There was no public comment. Councilwoman Monfor said the mill rate will be 2.7 mills once again. Councilwoman Swarner added, this includes the fire service. Motion passed by unanimous consent. C-8 Res. 88-42 - Transf of Funds - Parks Dept. Personnel - $8,000 MOTIONS Councilwoman Monfor moved, seconded by Councilwoman O'Reilly, to adopt the resolution. �� J • KENAI CITY COUNCIL JUNE 1, 1988 PAGE 10 There was no public comment. Motion passed by unanimous consent. C-9 Res. 88-43 - Transf of Funds - Inspection/Survey - Coral & Cohoe - $12,320 MOTION: Councilwoman Monfor moved, seconded by Councilwoman Swarner, to adopt the resolution. There was no public comment. City Manager Brighton said this is not the total -funds needed for that job. The total is $33,000, 14% of the cost of the project for inspection, survey and testing. This will be the highest we have paid. Public Works Director Kornelis had said costs were predicated on expected costs of the project. They are lower. He asked Mr. Kornelis to ask Mr. Nelson to pro -rate on the basis of actual cost. He was unable to contact him. Councilwoman Monfor asked, what would happen if we did nothing? Mayor Williams said we can give him this amount, just "bag" item H-6. Public Works Director Kornelis said 10% to 12% is normal. The price is dated May 19, the bids were May 26. The engineers estimate was $321,000, 12% of that is $38,000. He figured 10% of the engineers estimate. Motion passed by unanimous consent. C-10 Res. 88-44 - Award Bid - Construction, Drainage, Water & Sewer - Coral & Cohoe - Zubeck Inc. $253,904.25 MOTION: Councilwoman Monfor moved, seconded by Councilwoman Swarner, to adopt the resolution. There was no public comment. Mayor Williams noted we are about 25% under engineers estimate. Motion passed by unanimous consent. C-11 Res. 88-45 - Award Bid - Curb & Sidewalk Repairs - Valley Concrete - $15,871.95 MOTION: ---- - - -- -- - - ------ -- --- - Councilwoman Monfor moved, seconded by Councilwoman O'Reilly, to adopt the resolution. There was no public comment. Councilwoman Swarner asked, where is Valley Concrete from? Public Works Director Kornelis replied, they have a Nikiski address, they operate all over the Statee it may be out of State. Councilwoman Swarner asked if they have worked for us before. Answer - no. Councilwoman O'Reilly asked if this was general repair. Mr. Kornelis replied, he told them the areas, but he a will review. Councilwoman Monfor said we know nothing about them. Kenai Masonry is local and almost the same. Mr. Kornelis explained Valley Concrete said he bid this to make wages to keep his crew busy till a new Job is ready. We will not pay till it is done right. M 331! �f KENAI CITY COUNCIL JUNE 1, 1988 PAGE 11 Councilwoman Swarner asked if he has seen any of the work he has done. Answer - no. Councilwoman Swarner asked, when is this to be done? Mr. Kornelis replied he did not remember. Councilwoman Swarner said if they decide not to do it, will we have time to get it done? Mr. Kornelis replied yes, it will be less than one week. Councilwoman Swarner asked if they were going to ao by the library. Librarian DeForest said she has a piece of sidewalk out. Mr. Kornelis said he has painted areas red, he will check this. Motion passed by unanimous consent. C-12 Res. 88-46 - Authorizing Participation - Grant Application - Developing Seafood Industrial Park MOTION: Councilwoman O'Reilly moved, seconded by Councilwoman Monfor, to adopt the resolution. There was no public comment. Motion passed by unanimous consent. D. COMMISSIOIT/COMMITTEE REPORTS D-1 council on Aging Councilwoman Swarner said they are selling cook books they have prepared. Program Director Porter said evaluations of the two grant applications are in the packet. (items Info 9 & 10) She is going to Anchorage for review June 2. Councilwoman Swarner noted the cook book was printed in Alaska. D-2 Airport Commission Mayor Williams said he will be filling the empty slots. He will be putting together a military affairs task force. It may also mean a change in the ordinance. He wants to replace the absent seats with retired military officers. He suggested a meeting the morning of June 4 for breakfast. Council is invited. D-3 Economic Development Commission Mayor Williams said the annexation report will be at the June 15 meeting. D-4 Harbor Commission - --Councilwoman Monfor noted -there-is -no-ad hoo-memberfor - the Harbor Comm. D-5 Kenai Bicentennial Commission Councilwoman Monfor said they requested a work session. (item H-8) She would like to wait till after the next Bicentennial meeting. D-6 Library Commission None D-7 Recreation Commission Mayor -Williams said we have 11 people appointed for the People Count program. They will have two for the Rec .-1, i WAA -KENAI CITY COUNCIL JUNE 1, 1988 PAGE 12 Dept. He will be acting on behalf of the Chamber of Commerce and Fine Arts Council, they will be part of our count. D-8 Planning & Zoning None D-9 Misa Comm/Comm a. Beautification Comm. Councilwoman Swarner reported there was a meeting May 31, they reviewed k C i lwoman - . - - - - " the dedication of the Aemorial Par Dune Monfor asked if this is a rededication of the — - - - veterans Memorial. Mayor Williams said this - should be stated in the program. He added, the - : fly -over will not be done. Councilwoman Monfor y asked if there was a plan in case of bad weather. Mayor Williams replied, the refreshments will be served indoors and the speakers will be under the -° gazebo. - - - b. Beautification Comm., the Welcome to Kenai sign. ' Mayor Williams said he was told that the cost of the sign we have now was $5,000, is that correct? Public Works Director Kornelis replied they paid $3,400 for the double sided sign at the dock. This -" - should be less. Councilwoman Monfor said she hoped we did not do anything till the Bicentennial logo is done. Mayor Williams said he put out an RFP. We are still in the vacillating stages of a special session of the legislature. If this comes ' about, he had figured a new sign in this. Councilwoman Swarner explained the concern of the Beautification Comm. is that after this is landscaped, it should be left as is. They do not have to re -do it. Librarian DeForest noted the library sign was $1,800. Public Works Director Kornelis added, the City did the posts and - -- - - ..- installation at the dock. c. Beautification Comm. Councilwoman Swarner reported the banners will be up on the City streets soon. d. Borough Economic Development District. City Manager Brighton reported he attended the meeting. They have not adopted a budget yet. That will be voted on next time. The budget will be $380,000, it will come from State funding, Federal funding "5- and Borough funding. Jim Carter will be the executive, Stan Steadman and Shelly Wright :-----------�` --- - - - (-Borough) -will have positions... They-. are looking - for a place to rent. He suggested it be in Kenai. :._ We-nee4od resolution from them endorsing our a proposal for application for EDA funds or- the - - - -- - • cold storage facility. They Passed a resolution but said they would not approve any more till they had full and total details in front of them. He objected to that, the City is putting up matching money for Federal money. Seward and Homer objected. He did not think that is their job. =; They should look at proposals and indicate if it will be economically advantageous. t`. E. MINUTES E-1 Regular Meeting, May 18, 1988 Councilwoman Swarner noted page 12, I-3e, should read "Kenai Aviation Services Inc" instead of " Kenai - �. Aviation." KENAI CITY COUNCIL -'• JUNE 1, 1988 PAGE 13 4..... «. MOTIONt t Councilwoman Swarner moved, seconded by Councilwoman Monfor, to approve the minutes as amended. Motion passed by unanimous consent. CORRESPONDENCE F-1 Barbara Crane, Tundra Times -Thanks to Mayor Williams F-2 Alaska C&RA - State Revenue Sharing Entitlement Approved by Consent Agenda. J G. OLD BUSINESS - None H. NEW BUSINESS - H-1 Bills to be Paid, Bills to be Ratified .... . _ ._ . MOTION: Councilwoman Monfor moved, seconded by Councilwoman ,. O'Reilly, to approve the bills as submitted. Motion passed by unanimous consent. -,. -- H-2 Requisitions Exceeding 61,000 Mayor Williams noted the $4,700 to Redoubt Plumbing & Heating, included in the packet. .- . t:.. MOTION S Councilwoman Monfor moved, seconded by Councilwoman O'Reilly, to approve the requisitions, adding $4,7 0 to Redoubt Plumbing & Heating. Public Works Director Kornelis explained, this was - --; ;n,;-•,Q;-'.,.; funds appropriated by Federal Revenue Sharing_ to revamp = the fuel system. City Manager Brighton added, it is Federal regulations. Motion passed by unanimous consent. ,. . H-3 Ord. 1266-88 - Increas Rev/Appns - Swires, Lawton - Mayor -Williams --explained-, when -we appropriate- money _ - - ' such as this, we are making the money available for it He asked if we would have use. We may not use all. a proposal for roads at the next meeting. Public Works Director Kornelis replied no, the engineering is almost complete. Next week they plan on putting a firm date for bidding. City Manager Brighton said they will bid -',•': on alternates. once the bids are in, Council can make a selection. Mr. Kornelis added, the basic bid and :r three alternates. i �= MOTION: Councilwoman Monfor moved, seconded by Councilwoman Swarner, to introduce the ordinance. Motion passod unanimously by roll call vote. \Jl k j, rs KENAI CITY COUNCIL JUNE 1, 1988 PAGE 14 H-4 Ord. 1267-88 - Amend KMC, Title 17 - New Date of Application of Penalty and Interest, Delinquent Water & Sewer Bills MOTION: Councilwoman Monfor moved, seconded by Councilwoman Swarner, to introduce the ordinance. Councilwoman Swarner asked, it used to be the 20th? Finance Director Brown explained, we did have the 20th due date. In one place in the Code it says any date, in another it says the 25th. He had an attorney challenge.- -He changed it to the 25th. Now this will be the 20th, the 25th is too late. Mayor Williams said he thought there was a contradiction, and read KMC 1.75.010 (c). He suggested we need to amend to be consistent with this. Mr. Brown replied, that is what he was relying on, but Chapter 17 says water & sewer bills are on the 25th. Councilwoman Monfor asked, how will he notify the people? Mr. Brown replied, it will be on the invoice. Councilwoman Swarner suggested it be put in color. Motion passed unanimously by roll call vote H-5 Games of Chance & Skill - Peninsula Learning Resources Approved by Consent Agenda. H-6 Approval - Inspection, Surveying, Testing - Coral & r Cohoe - Wm. Nelson & Assoc. Mayor Williams said it would seem more appropriate not to exceed $25,000. Councilwoman Monfor asked if we could hold off on this. Public works Director Kornelis said he was going to award the contract shortly, but he will not do till next meeting. He added, in Mr. Nelson's original proposal he said 10% to 12%. Mayor Williams said 10% is better and suggested, see what Mr. Nelson says and bring it back June 15. Council agreed to the suggestion. H-7 Disc - Dena'Ina Pt. Estates, Addition N1 Mayor Williams reviewed the memo from P&Z, dated May - 26. He_explained the Commission is reluctant to deal with this totally, they want- to give it- to -Council. - - - -- -- ---- -- Councilwoman O'Reilly asked, according to Planning Secy -. - - - - -Loper Is note, - if- we- approve the--Commission-action,- - - - - - - — -- -- - --- ----- - -- - rezoning has occurred. Atty. Rogers replied, this matter was in front of Council, the applicant was represented by an engineer and an attorney. Council, by not exercising veto over what has occurred, would allow rezoning to proceed. Council had taken a vote and did not veto the action of P&Z. At that time he called attention to supreme court cases that rezoning is tantamount to condemnation. If Council does this they may not be able to rezone. Council had a tie vote of 3-3. Councilwoman O'Reilly noted this is phase 3. Atty. Rogers said he did not see why it was before Council. Public Works Director Kornelis explained, it was concerning rezoning, this is replatting. Atty. _ Rogers said if Council action is inconsistent with what they did, he did not know what the time line is. There is nobody to discuss for the applicant. Councilwoman O'Reilly noted they have had work sessions and talked w KENAI CITY COUNCIL DUNE 1, 1988 PAGE 15 to the applicant. It seems that every time they have a meeting, the vocabulary has not changed but the emphasis has, Is there anything Council can do now to prevent rezoning from taking place? Mr. Kornelis noted the applicant may not understand the problems. They came for rezoning. Council has set that. The first step is preliminary -plat. Tracts 1 through 5 will become General Commercial on filing of the preliminary plat. It does not become final plat till all improvements are in the preliminary plat, unless there is an installation agreement with Public Works. The applicant has to put in roads before he gets final plat or put up money in escrow. Rezoning takes effect on ' final -plat that sets rezoning. Mayor Williams said at -.- -------------------_----- the May 25 work session there was a deadline for rezoning. They were Residential Suburban before,.thoy will remain that. Council will not upset the rezoning. Council has complied with their wish that the rest be zoned commercial. Now we have to ratify P&Z action if we agree. Atty. Rogers said to not allow them to replat does not allow rezoning. The plat is incidental - to this. Has Council frustrated their understanding - (by detrimental reliance to the other party)? Mayor Williams said Council is concurring with Tracts 6 & 7 residential and the rest commercial. Atty. Rogers added, which would be consistent with rezoning. Councilwoman Monfor said a year ago, Council approved rezoning on recommendation of P&Z with S. McLane speaking for Mr. Roberts. They would take a small area and rezone. To do anything else without having the 7� parties come before Council would test the credibility of Council. Mayor Williams said the original intent was at the time of the sale it was to be all first class residential, an extension of Redoubt Terrace. The feeling was the commercial sector should be in the central area. By the action now, Council is suggesting commercial area can be extended to Spenard Builders Supply, with only a small part residential. When Mr. Roberts came to P&Z, P&Z told Council they felt this would be proper. Now they say they may have erred and they want out. City Manager Brighton noted Mr. Roberts bought the property on condition of the design laid out. Atty. Rogers added, the City did the engineering. - - Mr. Kornelis said the water lines and roads will still be there. They only changed the interior portion. That is guaranteed. Mayor Williams said they only relocated within the tracts he has purchased. But the original intent at the time of purchase was - - - - residential.- ---Atty.- Rogers said --that- -wan..apeaified at the time of purchase. The appraisal was based on -- - --- -- -- - - -----xesidential. - -Mayor -Williams - -noted they could not get ratification with four Council members. Councilwoman -- - - --- Monfor said when she was looking at it last year she did not know it was 25 acres. They still do not know what he plans by commercial. There would be a screen left but she would like to discuss with Mr. Roberts. Mayor Williams asked if the commercial property could be used for pipe storage. Mr. Kornelis replied, it would be heavy industrial. They could store it if it was for commercial purposes. City Manager Brighton suggested a joint meeting with P&Z. Atty. Rogers said Council has 30 days to take action contrary to P&Z. MOTION: Councilwoman Monfor moved, seconded by Councilwoman O'Reilly, to approve the preliminary plat to change the zoning to General Commercial for tracts 1 through 5, _. tracts 6 and 7 remain RS. " -- - - l r7 - KENAI CITY COUNCIL JUNE 1, 1988 PAGE 16 Mayor Williams said if Council votes no, they veto P&Z action, if they vote yes, it goes to the Borough. Councilwoman Monfor said she will vote yes, not because she likes it but she does not feel comfortable till Council sees the people face to face. Mayor Williams asked, what are the ramifications of voting no? Atty. Rogers replied, if Council votes no, he cannot guess the position of the other side. Even though they said it was a risk they would have to take, he would anticipate detrimental reliance out of prior action. He was cautioning Council if they proceed they may not be able to undo their action. They should not vote on the legal ramifications. Councilwoman Swarner said she had a problem with a commercial zone because of the original -intent. Mayor Williams agreed, noting when the property was purchased it was with the understanding it was residential. This is a P&Z problem. City Manager Brighton said if originally this was zoned commercial, there would have been a different price then what he paid for it. It was a better price. Councilwoman O'Reilly said it breaks down to a piece of property. We will never get it back. it is prime, she sees no reason to see it commercial. Mayor Williams said if Council kills it this date, it will give the owner the next course of action. What chance do we have if we go to court if we are sued by the property owner? Do we have a chance? Atty. Rogers replied yes. VOTE: There was one vote cast (Councilwoman Monfor), and a recess was called. Councilwoman Monfor recalled her vote. VOTE (Failed): Motion failed unanimously by roll call vote. NOTICE OF RECONSIDERATION: Councilwoman Monfor gave Notice of Reconsideration for the June 15 meeting. H-8 Disc - Schedule Work Session a. Camper Park - Beaver Creek b. New Building Function - Kenai Bicentennial Gary Foster, Foster Construction. He asked Council to consider a work -session -to -see what --he --has- n -mind. - --He- - - - -- -- -- ---- --------- - - sked them to come out and see the property. Mayor ----Williams----- said --he -had-planned a --work- session --to - -- - -- - - - -- prioritize road development. He asked Administration to prepare a list for the work session. councilwoman Monfor suggested each councilmember go out on their own to look at it. Council agreed to a work session on June 15, 6:00 PM, before the regular Council meeting. H-9 Disc - Russian Orthodox Church Repairs Father Targonsky, Russian Orthodox Church. He requested the Park Service to send a letter to Mayor Williams explaining what is a National Landmark and City participation. There was opposition from the City because of -separation of church and state. Whatever support the City can give is not for the Church but for a National Historic Landmark. There are several examples where the State has supported a church: over i - ' - -KENAI CITY COUNCIL JUNE 1, 1988 4i PAGE 17 $100,000 for St. Nicholas' Chapel in Seldovia and the Episcopal Church in Anvik. Support could come for funds that have been lost from the Federal Govt. They have received National Park funds. The Kenai Churcn is a pilot project for this and contributions will be solicited. The City should support the Church being open to the public for tours. When he made the request before, the former mayor said to charge $1. The salaries at the museum are $5,000, we could do the same. The museum is not a registered historic landmark. The City wants to bring tourists in, it is only fair for the City to appropriate funds for restoration work and from other entities such as fraternal clubs and other entities. This is the only one on the Peninsula. The other is an archeological site, with no admittance. This is not violating the law of separation of church and state. Atty. Rogers requested time to research. He will have it in the June 15 packet. Councilwoman Monfor said we don't have any cost estimate for what we will be giving money for. tin Kenai Bicentennial Comm.) There are grant funds available that the City could apply for. It is on the National Historic Register and is in Old Town. City Manager Brighton said there have been sums expended by the State for this. He asked Fr. Targonsky if he had applied to the State. Fr. Targonsky replied no, he wanted to try the City first. Mayor Williams said Admin. Asst. Gerstlauer and Atty. Rogers will review this. Fr. Targonsky said he has received grant money but that has ended. Councilwoman Monfor noted there are other grants besides the State. I. ADMINISTRATION REPORTS I - 1 Mayor a. Mayor Williams said the Law Library Subcommittee of the Library Commission wants a secretary to attend meetings. it would be an additional $45 per month. Councilwoman Monfor said she has told them they could not. I-2 City Manager None I-3 Attorney Atty. Rogers spoke. a. There are typos on the Cold Storage Facility __-__Contract/Leases,_ They will_.be .corrected. b. The Concorde Bar delinquency is $10,8004-20;--the-- restaurant is $2,612.92. Both as of June 1. The restaurant is five months in arrears, the bar is four months in arrears. He intends to proceed as stated in item 1-3. c. EDA Cold Storage Facility. They are re -doing the contract, it will not be a lease. It will come back to Council. City Manager Brighton explained, EDA will not permit us to build and lease. We have to operate. 1-4 City Clerk None 1-5 Finance Director KENAI CITY COUNCIL ` U JUNE 1, 1988 PAGE 18 „ None z' jyy I-6 Public works Director None li r� I-7 Airport Manager None J. DISCUSSION 66 J-1 Citizens a. Father Targonsky, Russian Orthodox Church. In the - - --„ '-- - ;, lease contract with Ft. Kenay, the City may contribute to restoration of the Church. The City had already contributed $2,000 several years ago. City Manager Brighton asked if the parsonage was ' part of the historic landmark. Fr. Targonsky replied yes, Ft. Kenay land and the cemetery. The boundaries have been set. Councilwoman Monfor - added, hopefully the Bicentennial Comm. will be addressing this. 'rho Church and parsonage will be an integral part of the celebration. J-2 Council a. councilwoman Swarner. Did we hire a dock hand? Public Works Director Kornelis replied no, there d - were 14 applicants. They plan to do shortly with the higher rate. b. Councilwoman Swarner. Did we hire a sewer treatment plant person? Public Works Director Kornelis replied he is reviewing now. c. Councilwoman Swarner. Was there a problem with the sewer treatment plant? The odor was strong recently. Public Works Director Kornelis replied, there was a wind problem. d. Councilwoman Monfor. She suggested calling the „. State to get the streets cleaned up or we will pay the bill and bill them. Soldotna's streets are - -- clean. Public Works Director-Kornelis and Mayor Williams agreed to contact the State. as Councilwoman Monfor. She complimented Mayor ..., a:'.':'. Williams' talk to the Chamber of Commerce regarding the status of the City. She noted the r Bicentennial Comm. was not mentioned. Also, the i e center n is 1 grant money .senior_ cit z n ent money al g nt mo y and - - - - ---_ -----------------.-_--- { is generated back to the City.---- Mayor- Williams `. complimented Finance Director Brown for his :---_ -- : material. --Councilwoman -Swarner--suggested-it- be - done in color. - f. Councilwoman Monfor. The Teen Center yard is filthy. Also the kids are smoking outside. ^. g. Councilwoman Monfor. She talked to Borough Mayor ti Gilman regarding the $85,000. He said they are closing the dump. We need to talk about this. Mayor Williams said he talked to them regarding -: the cost of hauling from Nikiski to Soldotna. They do not think it is a cost factor. $85,000 "., may not be what it will cost to move. Councilwoman Monfor said it is an Administration problem now. City Manager Brighton noted the '--- people in the City pay the same taxes as those outside. Mayor Williams added we have an APUC ..- -- lia3nsee in the City. Councilwoman Monfor said in ----- November, the dump will be closed. We should get our own alternative. City Manager Brighton ki KENAI CITY -COUNCIL JUNE 1, 1988 PAGE 19 replied, he did not think it will come to a head in November unless DEC approves. Councilwoman Monfor said if we don't have a solution, people that have dumpsters will have city garbage. h. Councilwoman O'Reilly said she was looking forward to the Memorial Park dedication. Leif Hansen was a fine boy i. Mayor Williams informed the Council that�oovernor Cowper has re -appointed him to a three-year term for the State Job Training Coordinating Council, SJTCC. K. ADJOURNMENT Meeting adjourned at 1100 PM. d,� Janet Ruotsala City Clerk MOM By couk'a s'_r DATA Car C!x'" RK f KENAI CITY COUNCIL PARTIAL TRANSLATION JUKE 1, 1988 i H. NEW BUSINESS f( H-1 Disc. - Dena'Ina Pt. Estates Addition $1 Mayor Williams reviewed the memo from P&Z, dated May 26. He explained the Commission is reluctant to deal « with this totally, they want to give it to Council. Councilwoman O'Reilly asked, according to Planning Secy Loper's note, if we approve the Commission action, , rezoning has occurred. Atty. Rogers replied, this - - -- - ---- -- matter was in front of Council, the applicant was represented by an engineer and an attorney. Council, by not exercising veto over what has occurred, would allow rezoning to proceed. Council had taken a vote and did not veto the action of P&Z. At that time he called attention to supreme court cases that rezoning is tantamount to condemnation. if Council does this they may not be able to rezone. Council had a tie vote of 3-3. Councilwoman O'Reilly noted this is phase 3. Atty. Rogers said he did not see why it was before Council. Public Works Director Kornelis explained, it was concerning rezoning, this is replatting. Atty. Rogers said if Council action is inconsistent with what they did, he did not know what the time line is. There is nobody to discuss for the applicant. Councilwoman O'Reilly noted they have had work sessions and talked to the applicant. It, seems that every time they have a meeting, the vocabulary has not changed but the emphasis has. Is there anything Council can do now to prevent rezoning from taking place? Mr. Kornelis noted the applicant may not understand the problems. They ; came for rezoning. Council has set that. The first step is preliminary plat. Tracts 1 through 5 will become General Commercial on filing of the preliminary plat. It does not become final plat till all improvements are in the preliminary plat, unless there is an installation agreement with Public Works. The applicant has to put in roads before he gets final plat or put up money in escrow. Rezoning takes effect on final plat that sets rezoning. Mayor Williams said at the May 25 work session there was a deadline for rezoning. They were Residential Suburban before, they will remain that. Council will not upset the rezoning. Council has complied with their wish that the rest be -zoned- commercial. -Now -we --have -to -ratify PSZ -action- if we agree. Atty. Rogers said to not allow them to - ------ -- - ---replat-does not -allow_rezonina.--The _plat_ is- incidental____ to this. Has Council frustrated their understanding (by detrimental reliance to the other party)? Mayor Williams said Council is concurring with Tracts 6 & 7 a mT KENAI CITY COUNCIL JUNE 1, 1988 PAGE 2 residential and the rest commercial. Atty. Rogers added, which would be consistent with rezoning. Councilwoman Monfor said a year ago, Council approved rezoning on recommendation of Pa with S. McLane speaking for Mr. Roberts. They would take a small area and rezone. To do anything else without having the parties come before Council would test the credibility of Council. Mayor Williams said the original intent was at the time of the sale it was to be all first class residential, an extension of Redoubt Terrace. The feeling was the commercial sector should be in the central area. By the action now, Council is suggesting commercial area can be extended to Spenard Builders Supply, with only a small part residential. When Mr. Roberts came to P&Z, P&Z told Council they felt this would be proper. Now they say they, may have erred and they want out. City Manager Brighton noted Mr. Roberts bought the property on condition of the design laid out. Atty. Rogers added, the City did the engineering. Mr. Kornelis said the water lines and roads will still be there. They only changed the interior portion. That is guaranteed. Mayor Williams said they only relocated within the tracts he has purchased. But the original intent at the time of purchase was residential. Atty. Rogers said that was specified at the time of purchase. The appraisal was based on residential. Mayor Williams noted they could not get ratification with four Council members. Councilwoman Monfor said when she was looking at it last year she did not know it was 25 acres. They still do not know what he plans by commercial. There would be a screen left but she would like to discuss with Mr. Roberts. Mayor Williams asked if the commercial property could be used for pipe storage. Mr. Kornelis replied, it would be heavy industrial. They could store it if it was for commercial purposes. City Manager Brighton suggested a joint meeting with P&Z. Atty. Rogers said Council has 30 days to take action contrary to P&Z. MOTION: Councilwoman Monfor moved, -seconded by Councilwoman O'Reilly, to approve the preliminary plat to change the zoning to General Commercial for tracts 1 through 5, tracts 6 and 7 remain R8. Mayor Williams said if Council votes no, they veto P&Z action, if they vote yes, it goes to the Borough. Councilwoman Monfor-said-she-will-vote yea, not because she likes it but she does not feel comfortable till - -Council--sees--the- people face -to face. - ..-Mayor__William_s_ -_ asked, what are the ramifications of voting no? Atty. Rogers replied, if Council votes no, he cannot guess the position of the other side. Even though they said KENAI CITY COUNCIL JUNE 1, 1988 PAGE 3 it was a risk they would have to take, he would anticipate detrimental reliance out of prior action. He was cautioning Council if they proceed they may not be able to undo their action. They should not vote on the legal ramifications. councilwoman Swarner said she had a problem with a commercial zone because of the original intent. Mayor Williams agreed, noting when the property was purchased it was with the understanding it was residential. This is a P&Z problem. City Manager Brighton said if originally this was zoned commercial, there would have been a different price then what he paid for it. it was a better price. Councilwoman O'Reilly said it breakof down to a piece of property. We will never got it back. It is prime, she sees no reason to see it commercial. Mayor Williams said if Council kills it this date, it will give the owner the next course of action. What chance do we have if we go to court if we are sued by the property owner? Do we have a chance? Atty. Rogers replied yes. VOTE: There was one vote cast (Councilwoman Monfor)p and a recess was called. Councilwoman Monfor recalled her vote.. VOTE (Failed): Motion failed unanimously by roll call vote. NOTICE OF RECONSIDERATION: Councilwoman Honfor gave Notice of Reconsideration for the June 15 meeting. Janet Ruotsala City Clerk � �I