Loading...
HomeMy WebLinkAbout1988-06-15 Council Minutes_ ' 41. nnp l) �l �I AGENDA KEND.I CITY COUNCIL - REGULAR MEETING JUNE 15, 1988 - 7:00 PM WORK SESSION: 6:00 PM A. CALL TO ORDER 1. Pledge of Allegiance 2. Roll Call a. Selection of Councilmember 3. Agenda Approval r 4. Consent Agenda *All items listed with an asterisk M are considered to be 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. SCHEDULED PUBLIC COMMENT (10 Min.) C. PUBLIC HEARINGS 1. Ordinance 1266-88 - Increasing Rev/Appns - Swires & Lawton - $832,000 2. Ordinance 1267-88 - Amending Kenai Municipal Code, Title 17 - New Date of Application of Penalty & Interest, Delinquent Water & Sewer Bills 3. Resolution 88-47 - Authorizing Participation in Grant Application - Developing Seafood Industrial Park 4. Resolution 88-48 - Award Engineering Contract - Design and Inspection, Airport Taxiway & Overlay - Wince, Corthell, Bryson - $20,475 5. Resolution 88-49 - Award Airport Terminal Vending =- Machine Concession - Tyler Vending Machine Concession - Tyler Distributing Co. 6. Resolution 88-50 - Award of Seal Coating, Streets - Harleys Trucking D. COMMISSION/COMMITTEE REPORTS 1. Council on Aging 2._ Commission 3. _Airport Economic Development Commission 4. Harbor Commission - - -- ----- - 5 - -Kenai Bicentennial --Commission- - - - - - 6. Library Commission 7. Recreation Commission 8. Planning & Zoning Commission 9. Misc. Comm/Comm E. MINUTES 1. *Regular Meeting, June 1, 1988 F. CORRESPONDENCE 1. *Alaska Dept. of Military & Veterans Affairs, General Schaeffer - Mayor's Trip to McGhee -Tyson 2. *Alaska Community & Regional Affairs - Final Payment - Municipal Assistance - $680,868 G. OLD BUSINESS ;, ti s. ' J r - - A' ice',•. - tL- is 1. Approval - Inspection, Survey, Testing - Coral & Cohoe - Wm- Nelson & Assoc. 2. Discussion - Dena'Ina Pt. Estates Addition N1 H. NEW BUSINESS � 1. Bills to be Paid, Bills to be Ratified 2. Requisitions Exceeding $1,000 3. Ordinance 1268-88 - increasing Rev/Appns - Cold Storage Facility - $950,000 a. Public Hearing, Ordinance 1268-88 4. Discussion - Airport Terminal Bar & Restaurant Leases 5. Discussion - Land Exchange Agreement, City & State 6. Approval - Inspection - Swires & Lawton - Wince, - - -- - - - ----- - Corthell, Bryson I. ADMINISTRATION REPORTS 1. Mayor 2. City Manager _:_ _- -_ ._ 3. Attorney 4. City Clerk _- 5. Finance Director - 6. Public Works Director 7- Airport Manager J. DISCUSSION 1. Citizens 2. Council K. ADJOURNMENT C KENAI CITY COUNCIL - REGULAR MEETING - MINUTES JUNE 15, 1988 - 7:00 PM KENAI CITY HALL MAYOR JOHN J. WILLIA14S PRESIDING A.--- CALL TO ORDER A-1 Pledge of Allegiance A-2 Roll Call Present: Chris Monfor, Marj O'Reilly, Linda Swarner, John Williams, Art MaComsey Absent: Ray Measles (arrived late) A-2a Selection of Councilmember Councilwoman Monfor said there has been no response. She asked Council to consider Sally Bailie. She has expressed an interest. Councilwoman O'Reilly added, she is also well qualified. Councilwoman Swarner said she felt uncomfortable naming a councilmember without Councilman Measles present. Also, Ron Malston was suggested and said he would serve. Ron Malston stated, he would defer to Sally Bailie. MOTION: Councilwoman Monfor moved, seconded by Councilwoman O'Reilly, to appoint Sally Bailie to fill the remainder to Tom Ackerly's term. Sally Bailie noted there would be four females. She would like to consider them as four people interested in the City. Her political aspirations do not go beyond the City. Councilman MaComsey asked if she would run this Fall. Mrs. Bailie replied, she is not sure. She added, one consideration is - she does not have a job outside the home, that can be an asset. VOTE: Motion passed unanimously by roll call vote. SEATING OF NEW COUNCILMEMBER: Mayor Williams swore in Councilwoman Bailie. A-3 Agenda Approval a. Mayor Williams asked that item C-1 (Ord. 1266-88) -- -- - -- -- - be-postponed-to-July--20- meeting. ----- - - - b. Mayor Williams asked that Res. 88-51, distributed this date, be added under item G-2 (Dena'Ina Pt.). c. Mayor Williams asked that the two PO's distributed this date (Wards Landscaping - $2,800, Alaska Boiler & Heat Exchgo - $30000) be added under item H-2. d. Mayor Williams asked that item H-6 (Swires & Lawton inspection) be postponed to July 20. e. Mayor Williams asked that Change Order distributed this date (Doyle Conmtruation, Float Plane Basin - $89,440) be added as item H-6. f. Mayor Williams asked that Ord. 1269-88 distributed this date (Rescinding Ord. 1213-87, Denai'Ina Pt.), be added as item H-7. g. Mayor Williams said page 3 of Info #14 was distributed this date. t . V KENAI CITY COUNCIL JUNE 15, 1988 PAGE 2 MOTION t CounaiLaan MaComsey moved, seconded by Councilwoman Bailie, to approve then agenda as amended. 3 Motion passed by unanimous consent. A-4 Consent Agenda - Council approved the Consent Agenda as submitted. H. SCHEDULED PUBLIC 03NMENT None - -- -. ------ - --- -- . ; C. PUBLIC HEARINGS C-1 Ord. 1267-88 - Amend KMC Title 17 - New Date of Application of Penalty & Interest, Delinquent Water & 4 sewer Sills MOTION: Councilwoman Monfor moved, seconded by Councilwoman s Swarner, is adopt the ordinance. = There was no public comment. " Motion passed unanimously by roll call vote. - C-2 Res. 88-47 - Authorizing Participation in Grant Application - Developing Seafood industrial Park MOTION: ` ' Councilwoman Monfor moved, seconded by Councilman Mccomsey, to adopt the resolution. PUBLIC COMMENTt a. Jay Cherrier, Owner/Operator - Dragnet Fisheries. He is opposed to the grant application. Competition with free enterprise is wrong, especially in a small area. Recently the State granted processors a tax credit. 3% tax on all f, ^, processors goes to the State. Now there is a 50% tax credit. They are using the funds to expand their facility to 1992. $200,000 they have to -match. - -Whey-have- expanded by adding -a compressor, - - -- - „_ ice plant expansion, cold plant expansion. For r e t t ------- - - - - - -- -them to -spend this -money and --for- _Staff_ __-° pu __-- a cold storage facility in is foolish. some other --� plants are doing the same thing. They made a , { pledge to be open year round to expand to bottom : fish. They have 23 acres fee simple site. Last. year and this year are good years, then it will go down to 2 Million harvest. He did not know what the City would do with it. The existing _ facilities will use their own. Councilwoman Monfor said one of the reasons for going to the State is because the City could be bonded for fish that are held. Private processors could not be ,. T bonded to hold somebody else's fish. Mr. Cherrier said he thought he could be bonded. They hold in Seattle. Most packers carry their own insurance. _ He did not know if bonding is a big issue. City Manager Brighton said he did not think Council has looked at it as competition. it will be available _- "- - -" rier to anyone that wants to lease space. Mr. Cher r;; i KENAI CITY COUNCIL - -;-:t JUNE 15, 1988 PAGE 3 ` said there is only so much space on the river, he f did not know why the City wants to do it. Mr - r.. Brighton asked, if they rent space in Seattle, can n :. they handle what they have? Mr. Cherrier replied, n ;, they are expanding now to take care of this. If all the plants would submit their plans, the City would see what was being planned. Councilwoman s Swarner asked, with expansion of the plant, will they continue to rent in Seattle? Mr. Cherrier if have to. They hope to _. replied, only they double their facility next year. Councilman - - McComsey asked if he would have space to rent to other people. Mr. Cherrier replied, if they have , -� -= 7--- -'- space available they will. -Councilwoman Monfor - asked if there was a time deadline. Mr. Brighton explained, this res. will authorize him to participate in the grant application. Ord. i, 1268-88 will appropriate the match to EDA. We have to have that set aside prior to finalizing their $1 Million. Councilwoman Monfor asked, when T is the deadline? Mr. Brighton replied, as soon as possible. Mayor Williams noted we have been - - " working with this for almost a year now. We have :., had it to Econ. Deve1- Comm., they have '_--. recommended do -pass with a long term lease. Do we ,. have that? Atty. Rogers replied no, he has _ n - - =- drafted a document. Having an anchor is not a : precondition for the grant. EDA is insistent we t . own and operate the facility. It has changed from the original. Mayor Williams said we have = ": discussed with those that are interested in leasing. We have become members of the Economic " Development District at the Kenai Borough. We have applied for $1 Million to the federal Govt., - .' our match will less than 1/2. Atty. Rogers added, we are not donating, it will be a paying ' - proposition to recoup the City's money. A - -- percentage of the profit will be based on what it takes to pay expenses. Councilwoman Monfor noted we will have a profit making venture, fish is not always profitable. Mayor Williams said this will be the cornerstone to economic development Year round. Councilwoman Monfor said up to now she did - «:�...-:::. 4 not anticipate the City would be owner/manager of the facility. We will have competition with *; private industry. Seafoods From Alaska was going 't_��_.:..:- : to run it. Mayor Williams said this has been in ,_•,:.,.-:':', ..::`. front of us for months. Councilwoman Monfor replied,- not -with- the --City- -as._ owner/operator. - - - - - - ------------- ------------- u Seafoods from Alaska was going to run it. Mayor <. _.__ _ __ _ ___ ____-_ _ _-_Williams replied,, --just the --share they will use. Councilwoman No said the FederalGovto was l going to give it us to lease to Seafoods From Alaska. Now we are owner/operator. Councilwoman O'Reilly asked, how recently have we found out we are going to operate? Mayor Williams replied, the question of operation can be construed in different ways. The physical operation vs bookkeeping and maintenance are different. Leases : can be prepared excluding you from operation. Councilwoman O'Reilly asked, does Seafoods from ' Alaska know about this? Answer -yes. {' 1 Councilwoman O'Reilly said she has not seen the lease agreement. in reading it, she did not know we would be owner, not operator. Atty. Rogers said the lease agreement has been drafted and re -drafted. The original was Seafoods from Alaska J would be operator. The re -draft was a result of A y'.. .. ..' ... : EDA's reluctance to proceed as outlined. It was i I 1 - KENAI CITY COUNCIL - _ JJUNE 115. 1988PAGE _ 4 fairly recent, within the last three weeks the EDA ". representative came down. He did not know if the �+ re -draft was disseminated to Council. Councilwoman Monfor said she did not have a problem with the industrial park. She questioned it because of the number of processors at the mouth of the river. She believed we would build and they would operate. She wandered why other - - processors did not do it. Atty. Rogers said we are still in the pre -application proceedings. We '''' are trying to get a document that will enable us -- = - - to get match money. Councilwoman Bailie asked, -' are the processors in the area asked as to plans regarding this cold --storage process? Mayor Williams replied, the Economic Development Comm. :.. . ..: did a thorough job of reviewing the cold storage facilities. One of the processors site on the �# commission and had in -put. Mr. Brighton noted, he voted against it. Mayor Williams said, they voted 6-1. The ice processing facility was voted against. They felt with the added capacity the `_.-_--_--.-- ::' -. - processors planned to develop, there would be sufficient ice. We were assured by the processors ' if we dropped that there would be sufficient ice for everyone, but the cold storage was different. `- Councilwoman Bailie asked, are we putting all our eggs in one basket with Seafoods from Alaska? Are J' there others? Mayor Williams said when we first It'- ~ began to develop the facility, -there was concern if it would be used or if anyone would pay for it.:+ Now we have two stations leasing for $92,000, ' covering all costs of the City. We feel once the . facility is in place and utilities are done, others will come forward. He feels this is the �. .., same, once it is in place, it will grow. ' Regarding bottom fish, it is developing rapidly. it was a major impact on Alaska fisheries with the 200 mile limit. Mr. Cherrier asked, how much competition do you want to bring to the City? He has been here 11 years and has had three good == years. b. Mike McCune, General Manager, Dragnet Fisheries. one of the major goals of companies is developing bottom fisheries. it is a difficult fisheries to break into. Logistics, limited shelf life, high - - competition from other cities. They have opened their plant two months earlier than in the past. This City does not lack facilities to store but support . f acillties. An industrial _park would e a valuable asset, we should not do the cold storage ' first. Regarding the ice, there were 50 van loads _ _ _ _ _ _ sent this spring to Seward and -Homer- without -the - -- — - — -- -- - ----- --= tf,fi, new ice maker on line yet. We should develop the - fishery, then look at cold storage. Mr. Brighton asked, what would be the advantage of an industrial park with support facilities? Mr. :.. McCune replied, he has two people working full -.. . ...... ..... . .... . :..:.'' time running parts. They get 20% from the Peninsula, 30% from Anchorage. The rest is from the States. Mr. Brighton said he thought Council was interested in this because they want to x.: enhance the fisheries, not to whiplash what is _. 4 here. Support industries are the kind of thing they are interested in hearing about. That is the - �., economic base of the community. They did not think at any time that they were going into ::._ " competition with existing processors. They -. -` thought they were making additional space available to help industry. Mr. McCune replied, - -- L_ KENAI CITY COUNCIL JUNE 1.0 1988 PAGE 5' they do not need space. Mr. Brighton asked, did he think the same thing exists for Columbia Ward, Kenai Packers and the rest? Mr. McCune replied he could not speak for them. He added, it will attract other operators that will use it for the summer and leave. Mayor Williams said it was the intent of Council not to develop a summer freezer but to offer for enhancement of processors for year round operations. The company that permitted this came with a whole new idea. They have to back -haul from Seattle to keep open year round. - Mr. McCune asked, what are we going to feed this plant with, just salmon? Mayor Williams replied, it could be anything you want. Mr. McCune - suggested let's see if we can get the bottom fish here first. it is a logistics problem to get it here. Councilwoman Bailie asked, would he be willing to work with the City to develop an industrial park with contacts, etc.? Mr. McCune replied yes, they have a net mending business on his property. They would prefer it on City property. Mayor Williams said the cold storage warehouse was merely the 2nd phase of the industrial park. The first was the dock facility. The overall development of the industrial park hinges on 1) getting started upwarehouse, cold storage, etc. 2) financing. This would be a lease of less than t.50 on the dollar by being involved with EDA. Since this has started there have been very few negative comments. Councilwoman swarner asked, what other businesses does he need besides parts? Mr. McCune replied, electric, hydraulics, props, food service, painters, carpenters. They try to stress local enterprises. councilwoman O'Reilly asked, was there vacant cold storage space available last year? Mr. McCune replied, his was empty and closed. He thought most were. if there was a guarantee of space, they would jump on it, no one did. Councilman McComsey asked, what about summer, with 5-6 million lbs. of fish? Mr. McCune replied, at this time they do not have room in the summer. Councilman McComsey said this is not competition, they will bring in and sell. They are bringing in and making another product. c. Clyde sterling, General Manager, Kenai Packers. Kenai Packers was founded in 1949 in Kenai. He was an FDA inspector before this, has been with almost all the processors in the state. He wrote a letter-- toF Council in -February, -in their case- --_- they have spent considerable money this year for - - - - - - --additional -cold storage -and ice- house.---They.-may _-- not need it next year. The City should not be involved in private industry. Regarding using other species of fish, they processed 40 million lbs. of Pollack last year in Kodiak. He can speak regarding this. One of the problems with cold processing in winter is, it is expensive. You cannot sit on it, sales people want to inspect before buying. They would go to Seattle rather than coming here. He owned an ice plant and storage in Kodiak. You cannot make it in Alaska. They had many processors on both sides of them. Regarding use of the dock. Where is the fish being processed? He thought it was going to Anchorage. We are on the crest of a wave with large runs. it will not happen in years to come. We have gotten many different kinds of fish. What did the dock cost? Did it pay for itself? Mayor Williams said it is tough to look at development of a single project. It is not fair to say fish over the dock will not benefit the City. Had the dock facility no-� begn here it would have been a different situation.' it is here and is a viable part of the City. Councilwoman Bailie asked, how did he feel about the industrial park? Mr. Sterling replied, after spending much money for a generator, he has seen'service industry decline. it is hard to carry large inventory of items. it seems to be getting worse instead of better. They have a parts room themselves. There is an opportunity there for something. Councilwoman Bailie asked if the City had talked to Homer regarding the -return on their investment. Mayor Williams replied, Homer was negative. d. will Bushnell, CPA, Dragnet Fisheries, resident of j Wasilla. He has been active in economic development. He did not think this is economically viable. They have looked at it as private industry and felt it was not viable. They have 90,000 sq. ft. They can expand free for 1 Million lb. without an addition. They have a new ice machine. A 20 ton machine did not keep up last year. Dragnet had 70-100 people employed when the others were down. They do halibut and other secondary fish. Storage space would be useless. Other permanent fisheries would not use it. it will be temporary only. Regarding the deadline on application, is there a calendar date? Admin. Asst. Gerstlauer replied, August. Councilwoman Monfor said she would vote in favor because of the industrial park. she never thought the City would be operating it. Atty. Rogers said, regarding City operation. He had reservations regarding a private entity operating a public facility. EDA had the same concern. His problem was a subsidy to one operator that would be able to make space available. it would be a discretionary thing. if the facility were to proceed, that is a way it would have to proceed. Councilwoman O'Reilly asked, if we approve, what are we committing ourselves for? City Manager Brighton replied, to him to make application to the State. Councilwoman O'Reilly asked, if it is approved and the other is not, are we tied into it? Mr. Brighton replied, this will be tied to the other one. Mayor Williams said the percentage of all this money will be used to develop infrastructure. More reliable estimates, power, _roads. Councilwoman Bailie asked, is there any wary to separate for -industrial park - without the cold storage? Answer - no. Councilwoman Swarner -asked; -to -there- any problem -if - we - decide we--do- not want the grant? Mr. Brighton replied no, Council can stop at any time. He would like to stop or keep going now. Councilwoman Monfor said we have not. signed a lease. If the prospective lessee says they do not want to, where does that leave us? Atty. Rogers replied, that would be true with all prospective lessees. Councilwoman Monfor said we are talking about one. Councilwoman Swarner asked, does that include water & sewer to the Seafoods from Alaska? Public Works Director Kornelis replied no, just the building, not the park. Councilwoman Swarner said she would like to see the Economic Devel. Comm. work more closely with the processors. Mayor Williams suggested continue monitoring by the Economic Develop. Comm. regarding this and updating Council at regular intervals. Councilwoman Bailie said she would like the City to pursue the industrial park but she would vote against w::: . KENAI CITY COUNCIL JUNE 15, 1988 PAGE 7 the cold storage facility. Councilwoman O'Reilly said she would like to see the most current lease. Atty. Rogers replied yes. Councilwoman O'Reilly asked, whet ,.. percentage of.the total area is Seafoods from Alaska" going to lease? Atty. Rogers replied he did not know. Councilwoman O'Reilly asked,, what is the break-even point for the City? Atty. Rogers replied he has not concerned himself with the economics. Councilwoman - Monfor asked, why can't we ask for a grant without the cold storage? Mayor Williams explained, it is for a cold storage facility. City Manager Brighton said $1,050,000 is -from Fedl. EDA. The state has Economic -.,- Development (programs) for the same type of grant. we are asking the -State to participate _ to $100, 000. $900,000 would be our share. Councilwoman Monfor asked, $2 Million for building without water & sewer? Public Works Director Kornelis explained, for site work, roads, loading vans, freezers. Councilwoman swarner asked, what are the chances of getting the t grants? City Manager Brighton replied, the State EDA Director has bent over backwards getting this together. - -- - ---=-- He feels confident we will get it. Mayor Williams noted our track record is three applications, one received. 9:20 PM - COUNCILMAN MEASLES ARRIVED. MOTION, Tables Councilwoman O'Reilly moved, seconded by Councilwoman Monfor, to table action till the July 6 meeting. Admin. Asst. Gerstlauer said this resolution is for the State. it will not matter if we postpone till July 6 She has not been advised of a deadline. EDA has to have by August for this year. Councilman McComsey asked, how long does it take to put this together? Mr. Brighton replied, lots of time. Mayor Williams noted, much has been done. We are down to the money part. Councilwoman O'Reilly said she would like to see the economics of this. Mayor Williams asked Council if -� they want the Economic Develop. Comm. to review again. Councilwoman Monfor replied, we have missed the 4� expansion of the process. VOTE, Table (Passed): - Yes: Monfor, O'Reilly, swarner, Measles, Bailie - -Not - Williams,- McComsey . __ .__ _ C-3 . Res! 8a-48-_-__Award_ Engineering Contract - Design & Inspection, Airport Taxiway & Overlay ---Wince - -- - Corthell, Bryson - $200475 MOTION: Councilwoman Monfor moved, seconded by Councilman Measles, to adopt the resolution. L. There was no public comment. Motion passed by unanimous consent. C-4 Res. 88-49 - Award Airport Terminal Vending Concession - Tyler Vending Machine MOTION: Councilwoman O'Reilly moved, seconded by Councilman _, P. 1 .. KENAI CITY COUNCIL JUNE 15, 1988 PAGE 8 McComsey, to adopt the resolution. There was no public comment. Motion passed by unanimous consent, C-5 Res. 88-60 - Award of Seal Coating, Streets - Harley's Trucking MOTION: Councilman McComsey moved, seconded by Councilwoman Swarner, to adopt the resolution. There was no public comment. Finance Director Brown explained, this is coming out of General Fund budget. $103,000 is the balance of the fund. Because of the timing of this, we cannot exceed that. Public Works Director Kornelis added, it is part of a 5-year program. Mayor Williams noted any funds not used by July 1 will be used for 1988-89. MOTION, Amendments Councilwoman Monfor moved, seconded by Councilwoman Bailie, to amend the resolution by deleting Old Town. ($32,200) Public Works Director Kornelis said he was directed by Council to add this. He explained, roads have a 20 year life. Most were built in 1968. Mommsen was 1964, Wildwood cannot be seal -coated. The seal -coating may last 5 years. VOTE, Amendments Motion passed unanimously by roll call vote. City Manager Brighton said this is a dirty, oily procteroewillget child who walks iCalls- every car that gets oil on it MOTION, Amendments Councilwoman Monfor moved, seconded by Councilwoman Bailie, to delete Redoubt. ($15,515) _ VOTE, --Amendment (passed):. Yes: Monfor, O'Reilly, Swarner, Williams, Measles, - — - - - -- - -- ------ ---- -- - -- - -- -- --- - - - - - - Nos McComsey Public Works Director Kornelis explained, they do not have a schedule yet. They will enter into a contract this week. Mayor Williams asked that there be broad total publicity cost, with samendm amendments would . Finance tbe $94,5or Broported the 50. VOTE, Main Motion as Amended: Motion passed unanimously by roll call vote. D. COMMISSION/COMMITTEE REPORTS D-1 Council on Aging KENAI CITY COUNCIL JUNE 15, 1988 PAGE 9 Betty Warren, Vice President, Council on Aging. A 16 year visitor to the Senior Center died recently, Helen Knight. She and some others were brought to the Senior Center from Soldotna. The senior citizens want to thank Council for this service. They are getting a new parking area. They are exploding in older persons. Over 17% increase last year, 17% already this year. There was no place to sit this date for lunch. They have to plan'on expansion. Mr. Kluge can do the plans for $4,650. She hoped Council could provide this. They plan to go to Juneau for money to expand. It should be $300,000+ to expand the dining room and lounge. Councilwoman Bailie noted her mother was with her for 8 months, they were very good to her at the Center. Some people have no one other than the Center. we should recognize the vast number of seniors they serve. Mrs. Warren said they served 3 tour groups in one week. They served 70 this date, not counting deliveries. Public Works Director Kornelis reported $8,500-$10,000 to pave the parking lot. Councilwoman Bailie asked if the expansion would affect the parking lot. Answer - no. MOTION: Councilwoman Swarner moved, seconded by Councilwoman O'Reilly, to appropriate funds for schematics for Mr. Kluge for expansion of the Senior Center for $4,650. Motion passed by unanimous consent. D-2 Airport Commission None D-3 Economic Development Commission City Manager Brighton distributed the minutes of the last meeting and the Wildwood Annexation draft. Mayor Williams asked Council to review. The study comes back with a do -not -pass because of economic considerations at this time period. City Manager Brighton said a lot of thLngs that caused them to decide negatively can be subject to negotiation and can be resolved. D-4 Harbor Commission Chairman Quesnel reported there was no quorum for the June-13 meeting, ..They_d_iscussed- the -Kenai River viewing area. Mayor Williams asked Admire. Asst. aerstlauer to find out where the grant was at this time. Chairman Queene1-said -the Chamber- of -Commerce- -is - also involved and has promised labor and materials. Public Works Director Kornelis added we have some materials now. Mayor Williams noted Walt Craycroft was to obtain some lumber, Mr. Brighton will check. Chairman Quesnel reported the floating dock is in order. They will have it this date. Public Works Director Kornelis added it is on the river side of our dock. Chairman Quesnel said the Cunningham Launch ramp is affected by high water. There are humps. He asked that the City remove the mats and level out the humps. D-5 Kenai Bicentennial Commission L KENAI CITY COUNCIL „ JUNE 15, 1988 - PAGE 10 r. z, Councilwoman Monfor reported there was no quorum for the June 6 meeting. They have requested a work session The for the logo design are with Council. entries ,due next week. The winner will be announced July 4. Mayor . Williams requested a work session to review the designs June 21 at noon. Council agreed to the request. ) ,+ = D-6 Library Commission- =;'` Councilwoman Monfor reported the new projector is in. -`. D-7 Recreation Commission Recreation Director McGillivray reported there -will be - ? softball for men and women this week and, 15 women's teams and 15-20 men's teams. The Arco -Jesse Owens games will be June 25, they will be in Anchorage after July 4. The summer recreation program started this week. There - - --- were 74 the first day, now there are over 100. Last year they had over 200. They are running at the Rea t; Center. The plantings should be done this week. The Kenai sign at the airport and the Welcome to Kenai sign being done. The gazebo was sealed this date. Two are berms at the Memorial Park will be removed, two have > been lowered. They will have plantings. The area between the gazebo and the Uptown will be cleared and planted. They are planting the new softball field. Mayor Williams noted the gravel around the gazebo may become a problem. He suggested pulling it out and putting in cement or grass. Mayor Williams asked about the spray from the fountain. Mr. McGillivray �.:t. explained, people throw rocks at it, the nozzles have to be adjusted. ' .t D 8 Planning & Zoning Commission None D-6 (contd) Councilwoman Monfor added, the su mer reading program is going. Councilwoman Swarner and - .. ,.:..., Councilwoman O'Reilly are readers. ' r; D-9 Misc Comm/Comm Beautification. Mayor Williams said placing ;,.... "-17-91-1991'= i %_."white".rock _at the_ airport _park is too --- - - - -- --- -- __"-- expensive. Recreation Director McGillivray explained t,,,.. & Rec 1s_ asked. the Anchorage Parks director for __1wa - s - - - - their contact. Mayor Williamsuggested --- ---- -- -- — - ,...:,.._.,., .. donebe done in cement. E. MINUTES E-1 Regular Meeting, June 1, 1988 Approved by Consent Agenda. !. F. CORRESPONDENCE w,:, F-1 AK. Dept. of Military & Veterans *.ffairs, Genl 1;:.. .... Schaeffer Mayor's Trip to McGhee -Tyson F-2 AK. Community & Regional Affairs - Final Payment - Municipal Assistance - $680,868 Approved by Consent Agenda. r-- KENAI CITY COUNCIL JUNE 15, 1988 PAGE 11 G. OLD BUSINESS G-1 Approval - Inspection, Survey, Testing — Coral & Cohoe - Wm. Nelson a Assoc. MOTION: i - - - - (`{ - - - - -- - ----- - - -.-- may--' Councilman Measles moved, seconded by Councilman McComsey, to approve the cost. Motion passed by unanimous consent. G-2 Disc. - Denalina Pt. Estates Addtn. N1 Mayor Williams explained, the reason reconsideration was given was Council would be here in full and Council would have a better understanding. 1) There was a vacation of all rights of way. 2) There was a new plat submitted. 3) The City approved rezoning from RS to GC conditioned on filing a new plat. 4) The City decided to oppose the new plat. if the Borough under the present rezoning ordinance approves the plat, rezoning will go through. Council has a resolution requesting this be disapproved, to be sent to the Borough. After we disapprove, it will require an ordinance rescinding Ord. 1213-87, dated July 3, 1987. Atty. Rogers explained he did not presuppose what Council would do. These documents presuppose on his part that the desires of some Councilmembers will be the majority. if this passes, the Borough will have something in writing to proceed with. If no action is done, they will proceed with the preliminary plat. The Borough is holding off till they get a clear picture of what Council desires. There was a concern about the magnitude of the property or the range the property could be put to. At the time of presentation by S. McLane and the attorney, they acknowledged they may be assuming a risk that Council may take action other than what they were asking for. He cautioned Council there may be some vested rights or detrimental reliance. Mayor Williams said one of Council desires was to get a better picture of what the developer had in mind. He -spoke to him this date. He hoped to have it changed so he could start a large development in a large building. Atty. Rogers said it would be inappropriate for Council to take action based on general representations of proposals or to make a decision to restrict use. Once it is rezoned, it is r_ogoned within that statute. Council should consider all possible uses within that des gn. PUBLIC COMMENT: a. Stan McLane, McLane & Assoc, representing Royce Roberts. Mr. Roberts has no particular plans at this time. He feels there is a surplus of residential lots. Atty. Rogers said the preliminary plat, if zoned commercial, would be good for one year during which time considerable work has to be done. He asked, what is the dollar amount? Mr. McLane replied he did not know. Atty. Rogers said if the plat were not developed, rezoning would still be commercial. Mayor Williams said the potential development costs are in excess of $1 Million for one year. if he does not develop, the plat is not valid, but the zoning is. Is this the area with two zones? Atty. Rogers replied yes, that is in the Borough memo. Mayor' Williams said we have a plat that will allow the developer to do maximum research for a major M d Sir „ KENAI CITY COUNCIL JUNE 15, 1988 - PAGE 12 client for a major facility. He has one year to do it. If it is vacated, we have to see what we "� - will do with the rezone. Atty. Rogers said during '" . • :f the one year period, there will be claims of reliance as commercial. There may be difficulty to rezone residential. Reaent.aourt cases - =--".-- ' constitute taking. People have recovered under - that scenario. Mayor Williams asked if we could enter into an agreement that if development is not taken place in one year he could not sue. Atty. Rogers replied yes, but you will than litigate �- both the agreement and issue. -- ----- __T-- MOTION, Reconsideration: - - - - -- .----- - :�� Councilwoman Monfor moved, seconded by Councilwoman _ __ •. _: " O'Reilly, to reconsider the approval of the preliminary plat to change zoning to Ca, tracts 1-5, Dena'ina Pt, S/D. T Motion passed unanimously by roll call vote. --.- --"-.- - Councilwoman O'Reilly said she was opposed to rezoning because 1) The land was purchased by the'developer as :- A residential property, 2) He has not shown any specific { plan of use for the property that would require " - rezoning to commercial, 3) It goes against the Comprehensive Plan. 4) That is prime residential property and is non-renewable. Mayor Williams said he ' is in favor. 1) He feels it does not encompass a vast ,. .. . •. . amount of property, 2) Times change, economics bring - .�,. •i - different plans of action. 3) There may be a glimmer - of chance of use by a large business. �.""..} VOTE, Approval of Preliminary Plat (Failed): Yess Williams No: Monfor, O'Reilly, Swarner, McComsey, Measles, " • Bailie RES. 88-51 - Requesting Kenai Borough Disapprove the Dena'ina Pt. Estates Addtn. M1 Proposed Plat NOTION: Councilwoman O'Reilly moved, seconded by Councilwoman Swarner, to adopt the resolution. - —:--- ----M - There was -no- public -comment... _ " - --J ---'- -- - -VOTE Passe -- — -- - ---- - - - - -- --- - --- - - ---- ----- ---- -- = ' yes: Monfor, O'Reilly, Swarner, McComsey, Measles, Bailie NO: Williams ADDED ITEM - Item H-1, Ord. 1269-88: �1 MOTION: Councilwoman Bailie moved, seconded by Councilman " ! Measles, to add Ord. 1269-88, (Rescinding Ord. 1213-87) distributed this date, as item H-1. Motion passed by unanimous consent. , MOTION: KENAI CITY COUNCIL - JUNE 15, 1988 PAGE 13 Councilwoman O'Reilly moved, seconded by Councilman Measles, to introduce Ord. 1269-86. Mayor Williams noted the effective date of the ordinance will be amended to read Aug. 6, 1988. VOTE (Passed): Yes: Monfor, O'Reilly, Swarner, McComsey, Measles, Bailie No: Williams H. NEW BUSINESS H-2 Sills to be Paid, Bills to be Ratified MOTION: Councilman Measles moved, seconded by Councilman McComsey, to approve the bills as submitted. Motion passed by unanimous consent. H-3 Requisitions Exceeding $10000 MOTION: Councilman Measles moved, seconded by Councilwoman Bailie, to approve the requisitions, including $2,800 to Wards Landscaping and $3,000 to Alaska Boiler & Heat Exchge, distributed this date. Motion passed by unanimous consent. H-4 Ord. 1268-88 - Increas Rev/Appns - Cold Storage Facility - $950,000 a. Public Hearing - Ord. 1268-88 MOTION, Table: Councilwoman Swarner moved, seconded by Councilwoman Monfor, to table the ordinance to July 6 meeting. MOTION, Withdraw: Councilwoman Swarner, with consent of second, withdrew her motion to table. MOTION: Councilwoman Swarner moved, seconded by Councilman - - Measles,- to- introduce -the--ordinance. - - - - - - - - - --- - -- - - . Motion passed unanimously by roll call vote. H-5 Disc. - Airport Terminal Bar & Restaurant Leases Airport Manager Ernst explained, 18 months was the figure from Administration that would allow someone to bid and have reasonable time to operate. Mayor Williams asked, are we going to do the terminal renovation? If we do not, we can lease. If we renovate, we will not do this. We had decided to wait till Fall and decide. At the July 6 meeting there will be vacant space. We can work on an RFP. City Manager Brighton said if they vacate, the bar will be closed in July and August. Atty. Rogers noted in Sept. 1982 a tenant had $35,000 owing. By the time we got him out, he filed bankruptcy. The City was owed $50,000. Mayor I r,� F KENAI CITY COUNCIL JUNE 15, 1988 PAGE 14 I' Williams asked, does Council want to continue with Forcible Entry & Detainer? Councilman Measles asked, last Coun#l? has anything been paid since this was at Finance Director Brown replied, the last payment was in April. it was not current. They are 4 months delinquent on the bar. The last payment on the restaurant was in March. They are 5 months delinquent there. Mayor Williams asked, has there been any response to the 30 day notice to quit the premises? Atty. Rogers replied yes, a telephone conversation with Legal Asst. Sutcliffe asking for partial payment. He said they would welcome any payment. They did not represent that they would forestall any action. There was -no payment made. Mayor Williams -asked, -how long - - - - -- ---- -- -- does a Forcible Entry & Detainer take? Atty. Rogers replied, we should be able to have a hearing next week and be in possession the following week. Mayor Williams asked, when we file a Forcible Entry & Detainer, we still have a line of recourse against them for $10,000? Atty. Rogers replied, it is a separate action. The first is possession, then pursue the debt. Councilman Measles said his concern is the possibility of being closed at the busiest season. Even if you found someone, how long would it take for a liquor license? Atty. Rogers replied, it is a convenience license, it would just be a transfer. Councilwoman - O'Reilly asked, when did they make that last inquiry? - Atty. Rogers replied, after 30 day notice. Mayor Williams suggested we could start renovation now. it would be $800,000, not from airport overlay funds. Mr. Ernst said we would have to get money from airport lands to terminal funds. Council agreed to discuss at the July 6 meeting and give to the Airport Comm. for their June 18 meeting. Councilwoman O'Reilly asked if there was any way we could have an extra vending machine during this time. Answer - yes. Mayor Williams asked for a financial report on costs, where the money will come from and balance that will be left. Also an estimate of drawings. Councilman McComsey asked, if they take - bankruptcy, will it be the same as before? Atty. Rogers replied yes, it could take months. City Manager Brighton asked, it he proceeds to dispossess, should we could go out with RFP or renovation? Atty. Rogers said he will propose RFP, should we advertise, should it be an 18 month period? Mayor Williams replied, we will - forestall -renovation for 18- months, - - - - — - -- -Council- agreed- to- go- out- for _separate proposal -for the _ -- - - restaurant and bar, also to proceed with Forcible Entry & Detainer. Mayor Williams added, with the -• understanding that we try to work with them. H-6 Disc. - Land Exchange Agreement, City & state City Manager Brighton said he will check to see how - much land is involved. Mayor Williams noted we do not have a matching proposal to trade. H-7 Change Order #2 - Float Plane Facility - Doyle Construction Co. - $89,440 t` Bill Nelson, Wm. Nelson & Assoc. He apologized for not Si+ having the change order in the packet. He has been the contractor, but did not get the working with response in time. The change order is additional expansion of the work in response to a request from the j e - y- - KENAI CITY COUNCIL JUKE 15, 1988 l 1# PAGE 15 Airport Commission for tie downs in the project, if feasible. The justification is, the City received 15 . applications for tie down areas and it is not completed n yet. He recommended doing this. They will develop the. area on the east side 6f the water taxi way. The tie downs will be slips with parking bumpers. It will open ; =; as first class completed space instead of bare bones facility. it will draw in commercial ventures. Councilman Measles asked about rates. Airport Manager Ernst replied, $420 in commercial, $360 in non-commercial. It would take 7 years to recapture the - - - - - -s cost. Councilman Measles asked if the rates were N-.. established before this was discussed. Answer -yes. °.' Councilman Measles noted it was a bare bones facility. _- Mr. Ernst explained, they had 15 planned, the only difference is 35 now. MOTION: Councilman Measles moved, seconded by Councilman McComsey, to approve the $89,440. ' VOTE (Passed): Yes: O'Reilly, Williams, McComsey, Measles, Bailie " No: Monfor, Swarner I. ADMINISTRATION REPORTS i-1 Mayor Mayor Williams spoke. a. The Lt. Governor will be here July 4. He will have a no -host brunch July 3. Elected officials - - and Chamber of Commerce directors will be invited. .,. b. He has discussed with Administration the request for 160 acres of State land off the and of the runway for future airport development. There are 12 in the summer youth employment program working for the City. - '=,- -_ - - I-2 City Manager None I-3 Attorney None- _ _ . - --- - - - . _ ... - - -- .. - - _ - ' ----------------- -- ---- ---- .;. 1-4 City Clerk - -- - -- - -- - f4 — ---- - - Clerk Ruotsala spoke. a. The Kenai Borough has withdrawn protest for renewal of liquor license for The Rig. (item 1-4) b. The Council pins were distributed this date. -5 Finance Director None I-6 Public Works Director None 1-7 Airport manager � - LL; Norte S Y b� C ,.• • KENAI CITY COUNCIL-- JUNE 15, 1988 PAGE 16 J. DISCUSSION J-1 Citizens a. Clarence Ladd. He thanked Council for the gavel in the parking lot and the cutting in Old Town. He asked that the parking lot be black topped. He distributed a letter. Mayor Williams asked Clerk Ruotsala to distribute the letter in the July 6 packet. J-2 Council a. Councilwoman Monfor invited all to the July-4 City celebration. b. Councilwoman Swarner noted the PO for the flowers (item I-2) and minutes of the June 14 Beautification Comm. were distributed. c. Councilwoman Swarner noted the dirt in the City parking lot has grass growing in it. Public Works Director Kornelis replied it has been swept. d. Councilwoman Swarner asked if the City has looked into having community service labor or Wildwood inmates for cleaning the right of way on the roads. Rec. Director McGillivray replied the Chamber of Commerce is working with them. e. Councilwoman O'Reilly expressed deep thanks for all who planned the Memorial Park dedication. The best was the tapes of military music. f. Councilwoman Bailie said it has been suggested that parking be put by the Memorial Park. Public Works Director Kornelis had suggested Frontage Rd. could be used with diagonal lines painted. g. Councilwoman Swarner said when she drove down to the Poster Brothers on Angler Dr. there was no sign on the incoming road. she suggested a yellow warning sign for the intersection. Public Works Director Kornelis said they don't usually have signs for that type of intersection. h. Councilman McComsey said the Foster Brothers would like Council to come down and look at their ideas for a camper park. Mayor Williams explained Council had agreed they would all come down on their own. i. Mayor Williams welcomed Police Chief Ross back. J. Mayor Williams said he and Councilwoman Bailie will be meeting with Administration 6-16 to discuss City concerns. k. Councilman Measles said he will be out of State - - - for the July -6 meeting. APPROVED BY LJ47NCL 7- 6 8P DKID / 01Y.. c c s� L r� . KENAI CITY COUNCIL - REGULAR MEETING JUNE 15, 1988 - 700 PH KENAI CITY HALL MAYOR JOHN J. WILLIAMS PRESIDING PARTIAL TRANSLATION 0. OLD BUSINESS 0-1 Approval Inspection, Survey, Testing Coral & Cohoe Wm. Nelson & Assoc NOTION: ------------- Councilman Measles moved, seconded -by Councilman mccomsey, to approve the inspection, survey and testing by Wm. Nelson. Notion passed by unanimous consent. Alt Janet Ruotsala City ity Clark