HomeMy WebLinkAbout1988-07-06 Council MinutesAGENDA
KENAI CITY COUNCIL - REGULAR MEETING
July 6, 1988 - 7:00 PM
A. CALL
TO ORDER
1.
Pledge of Allegiance
2.
Roll Call
3.
Agenda Approval
-
_
4.
Consent Agenda
'
*All items listed with an asterisk t*) are
-
considered to be routine and non -controversial by
......_,.:.
the Council d ill be approved by one motion-
w an
---------------------
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
t7
J.
Consent Agenda and considered in its normal
sequence on the agenda as part of the General
orders.
- -----
SCHEDULED PUBLIC COMMENT (10 Min.)
C. PUBLIC HEARINGS
ordinance 1268-88 - Increasing Rev/Appns - Cold
,..
2.
Storage Facility - $950,000
Ordinance 1269-88 - Rescind Ord. 1213-87 (Dena'Ina
Pt. Estates)
`-
-=
3.
Resolution 88-47 - Authorl.zing Participation in
Grant Application for Seafood Industrial Park/Cold
Storage Facility
4.
Resolution 88-52 - Initiate Special Assessment
-
- — -"-
proposal «Road Paving - Swires
'ice
5.
Resolution 88-53 - Initiate Special Assessment
Proposal - Road Paving - VIP Drive, Lora Dr.,
Watergate Way, Ketch Ave., Pirate Lane, Muir Ave.
6.
Resolution 88-54 - Initiate Special Assessment
Proposal - Road Paving - E. Aliak, Highbush
7.
Resolution 88-55 - Initiate Special Assessment
_
Proposal - Road Paving - Candlelight Dr., Linwood
Lane, Kaknu Way, Kiana Lane, Baker St., Lawton Dr.
8.
Resolution 88-56 -Transfer of Funds - Schematic
..;,,
Designs - Expansion of Senior Citizen Center -
'
$4,650
==°;-
D. COMMISSION/COMMITTEE REPORTS
•.
- .•
:.,
1�
Council on Aging
.....
�, , 1. -x, ...
2.
Airport Commission
3,
-Economic Development- Commission - ---- - -
'
4.
Harbor Commission
_
5.
Kenai Bicentennial Commission
't
:
6.
Library Commission
7.
Recreation Commission
S.
Planning &,Zoning Commission
9.
Misc, Comm/Comm
E.
MINUTES
1.
*Regular Meeting, June 15, 1988
F.
CORRESPONDENCE
1.
Clarence Ladd - Closure of senior Center Work Shop
2.
*NLC - Statement on Federal -Local Relations.
3.
*Governor Cowper - P-3 Orion and Alaska National
Guard Proposal
4.
*Sen. Abood - Thanks to Mayor
0,
OLD
BUSINESS
1.
Runway Lounge & Concorde Restaurant
H.
NEW
BUSINESS
1.
Sills to be Paid, sills to be Ratified
2.
Requisitions Exceeding $1,000
3.
*Ordinance 1270-88 - Increasing Rev/Appns -
Purchase Pickup Truck - $25,000
4.
*Ordinance 1271-88 - increasing Rev/Appns -
Emergency Shelter Grant to Women's Resource &
Crisis Center - $4,000
5.
Discussion - Waste Disposal Site - Ron Hansen
6.
Discussion - Inlet Woods LID Assessment Notices
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
t.
KENAI CITY COUNCIL - REGULAR MEETING - MINUTES
JULY 6, 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
Present: Marj O'Reilly, Linda Swarner, John Williams,
Sally Bailie, Art McComsey, Ray Measles,
Chris Monfor (arrived late and left early,
excused)
.,.
Absent: None
-. - - - - - -----„ - - --
A-3 Agenda Approval
a. Mayor Williams noted item C-1 (Ord. 1268-88) has additional
A.
information under items Info 17 and D-3.
b. Mayor Williams noted item D-3 distributed in the
packet regarding R/V parks - there will be a speaker.
C. Mayor Williams asked that letter from NLC regarding CED
Steering Committee, in the packet, be listed on the agenda as
item F-5.
d. Mayor Williams noted item H-3 (Ord. 1270-68),-distributed this
date.
"
Is. Mayor Williams noted item H-4 (Ord. 1271-88), distributed this
date.
f. Mayor Williams noted item H-6, last page, distributed this
date.
COUNCILWOMAN MONFOR ARRIVED: 7:05 PM.
MOTION:
Councilwoman Monfor moved, seconded by Councilwoman Bailie, to
approve the agenda as amended.
}
Motion passed by unanimous consent.
A-4 Consent Agenda
MOTION:
Councilwoman Monfor moved, seconded by Councilman McComsey, to
approve the Consent Agenda as submitted.
Motion passed by unanimous consent.
B. SCHEDULED PUBLIC COMMENT
None
�f4
KENAI CITY -COUNCIL- Minutes _
July 6, 1988
Page 2
C. PUBLIC HEARINGS
C-1 Ord. 1268-68 - Increas Rev/Appns - Cold Storage Facility - $950,UUu
MOTION:
Councilman McComsey moved, seconded by Councilwoman Bailie, to
adopt the ordinance.
PUBLIC COMMENT:
a. Ron Malston, Chamber of Commerce, Kenai. The Chamber supports
the ordinance and Res. 88-47. They have a resolution in
support of the cold storage facility and bonded warehouse.
Councilwoman Swarner said Council had asked for the fair
market rate. City Manager Brighton replied, he did not have
the cost of leasing cold storage space in Anch. Councilwoman
O'Reilly noted the minutes of the Econ. Devel. Comm. meeting
are not in the packet, are they available? Mayor Williams
replied no, item D-3 shows the action taken at the meeting.
Councilman Measles said some of the additional information is
vague. The facility may not need to be bonded. Do we know
that for sure? Do we have additional information we asked for
at Econ. Devel. Comm. meeting? City Manager Brighton said we
have been informed by EDA that a bonded facility would take it
out of the grant available status. There is no cold storage
warehouse in Alaska. Admin. Asst. Gerstlauer said she talked
to Mr. Richert (EDA) on July 5. The pre -application has not
been submitted to Region for approval. When & if he gets
notice from the City he will submit it to Seattle. If we
submit the final in one week, we may it get this year. Any
longer time, we will not get it this year. Councilman Measles -
said he did not feel they got the information they asked for,
they are being pressured to approve this week. If we have to
go with a non -bonded facility for requirements, will this do
the same job? We do not have an idea of operating costs to
the City. Mayor Williams said the application to EDA requires
that the primary lessee be identified at the time of
application. We have that application here.
b. Gary Ervin, Seafoods from Alaska. Regarding the bonding
issue. They have been in touch with the underwriter -in
Seattle who has inspected the facility. It is secure, has
sprinklers, has fire controls, and can be insured at the
facility. From an underwriting standpoint, we can qualify.
From an operating standpoint, we will back the operators of
the facility. it is in his letter of July 3. Councilman
Measles said EDA requires a public facility, how will that
work?-- Mr. -Ervin replied, -the City --will -work -it- as _a .public.___. -
facility, but he will pay operating costs. He will be liable
-for-additional operating- _cQstts, He-isconfident this facility
is needed and will be successful. Councilwoman O'Reilly
asked, if there is another lessee, is the City liable? Atty.
' ;KENAI CITY COUNCIL- Minutes
July 6,
1988 -
-� -- - -
- -- - -- --
Page 3
Rogers replied yes, there will probably be riders and
additional costs. Mr. Ervin said this can be taken care of by
Seafoods from Alaska. Councilwoman Bailie referred to the
second part of Mr. Ervin's letter, equal value in shares to
0. Have we ever given thought to giving revenue bonds
$950,00 g 9 g 9
��-it
to that amount, using Seafoods from Alaska to secure those
bonds and using revenue to pay off the bonds? Mayor Williams
'
replied, when we first started this, he suggested this. We
just did not pursue it. We have had discussions regarding
- -
obtaining funds from the State for match. He has discussed
this with legislators. It is the same as Homer has done.
City Manager Brighton said the Federal govt. has had a law
regarding revenue bonds. They are no longer entitled to low
interest rates. Finance Director Brown added, the rules have
changed regarding the number of users. A percent has to be
used by the general public or it will not be tax exempt and
have higher interest rates. Councilwoman Bailie said she
would hope we could recapture those dollars from the State,
-
but it has happened in the past - we have not gotten funds.
If we were to issue bonds, we would not be taking from the
general fund. Mayor Williams said we will look at that.
Atty. Rogers explained the proposal is a pledge of stock. He
has not looked at the financial solvency of the company.
There is a question of terminology. There is fluctuation of
market to consider. it is not something that cannot be worked
out. If the City got into a situation like that, they would
want to have the stock escrowed or take possession of it. Mr.
"
Ervin said this is not a problem. Councilwoman Swarner said
she is not comfortable with this. Councilwoman O'Reilly said
she feels pressured with the time line. The questions raised
at the Economic Devel. Comm. meeting have not been answered.
Have we done any kind of financial analysis of Seafoods from
Alaska? Atty. Rogers replied he is not sure that this would
be appropriate in view of the fact that this will not be a
sole source contract for Seafoods from Alaska. The terms of
the lease have been circulated to Council. To avoid sole
source contract on a public facility, we may request people to
bid on a lease with terms as agreed to with Seafoods from
Alaska as minimum. Another way would be analogous to other
City rentals. Seafoods from Alaska would have some sort of
right of lease. He favored the first alternative. We have
not looked at other companies we have leased to. Mr. Ervin
noted they are a public company, you can look at the reports
in the papers. Councilwoman Monfor said at the last meeting
she had a question regarding local processors doing it. They
----•-.-""-
never answered her. She still does not feel her questions
have been answered. If we do this, we will be taking a step
in helping the community and putting another venture on the
dock. Councilwoman Bailie said many communities will be
joining together to get a cold storage facility such as this
to keep fish in Alaska and not go to Washington.- users would
have to come to Alaska. Councilman Measles said the questions
- - -- - - — - --
-have-not -seen answered.-- We- were -told- if -we apply and decide -- --
-- - -
against it we would be in trouble wJth EDA. where are we in
-
L
-
1p
e
KENAI CITY COUNCIL- Minutes
July 6, 1988
Page 4
dealing with landholders in acquisition of additional land?
City Manager Brighton replied they did not respond. council-
man Measles asked, if we do not acquire the land, is the
project killed? City Manager Brighton replied no, we are now
setting fees on Boat Launch Rd. It is not wetlands. The
second choice is the land fill site. We do not have 31 acres
additional. Councilman Measles asked, what does that do
regarding growth of the fish complex? City Manager Brighton
replied, he would hope the City would continue to acquire
additional land. Councilman Measles risked, if we do not get
land, what would that do to the proposal? The land will go
sky-high Councilwoman Swarner asked, what is the status of
the Corps of Engineers permit? Public Works Director Kornelie
replied, last week they said we would have a permit this week.
He called them this date, they have not returned his call.
This is the original permit for parking and staging area. It
will have to be modified. The first choice would not require
a permit. Councilman Measles said the Commission recommends
they do not go ahead, have we heard from them?
C. Jim Carter, Economic Development Comm. There was a 5-1 vote
to proceed with the cold storage, that has not changed. The
meeting the other night was to further discuss the matter.
Mayor Williams added the letter from Seafoods from Alaska was
not available at the EDC meeting.
VOTE (Passed):
Yes: Williams, Bailie, McComsey, Measles, Monfor
No: O'Reilly, Swarner
ADDED ITEM:
Mayor Williams said the City was asked by the Borough to host a
meeting of processors on 7-8-88. Eight representatives from
Japanese companies are looking at fisheries products from the Kenai
area to include in American Food Week in Japan. They hope to have
28 Million people.
C-2 Ord. 1269-88 - Rescind Ord. 1223-87 (Dena'Ina Pt.
Estates)
MOTION:
Councilman Measles moved, seconded by Councilwoman O'Reilly, to
adopt the ordnance.
There was no public comment.
Motion passed unanimously by roll call vote.
C-3 Res. 88-47 - Authorizing Participation in Grant Application for
__-_ Seafood_Industr_ial Park1Cold Storage Facility _
MOTION:
L
t,
A
KENAI CITY COUNCIL- Minutes
-July 6, 1988
Page 5
Councilwoman swarner moved, seconded by Councilman McComsey, to
adopt the resolution.
There was no public comment.
Motion passed by unanimous consent.
COUNCILWOMAN MONFOR LEFT: 7:55 PM.
C-4, 5, 6, 7 (Discussion):
Mayor Williams asked Council to defer action on the resolutions
till the report from City Manager Brighton (memo after items C-4,
5, 6 & 7) is discussed.
Council agreed to the request.
City Manager Brighton explained, they have identified 4 projects.
Finance Director Brown has assessment roles prepared.
Administration supports the project except that Swires (C-4) should
be paving, drainage and sidewalks just to the school. The total
would be $307,000 then.. He recommended the City do all 4 at no
assessments for reasons stated on page 3 of his memo. Councilwoman
Swarner noted, they do not own the property listed in their name on
the VIP assessment role. Councilwoman Bailie asked, does that
deplete all the road money? City Manager Brighton replied yes, but
if we get the same kind of favorable bids we have been getting,
there may be funds left. Our last bidc word 20% less than
engineer's estimate. Councilman McComsey asked, is the $70,000
from the State in here? Mr. Brighton replied no, the Governor has
nil arrs*oved that yet, he has till July 9. Councilwoman Swarner
asked, does that mean there would be no money for.street lights?
Mr. Brighton replied the street lights have not been appropriated
from these funds. Councilwoman Swarner said we talked about street
lights in Woodland. Will there be sufficient funds for that? Mr.
Brighton replied, probably not. Councilman Measles noted the
release of Old Town appropriation. Does that mean we are not going
ahead with the Old Town plans? Mr. Brighton replied we are looking
at immediate projects but we can come back at a later date to get
$2.5 Million from capital funds. Mayor Williams noted the
recommendation of Kenai Bicentennial Comm. was to release the
funds. Councilman Measles referred to the statement that
assessments will not pave roads. $1.5 Million to do the roads.
There is $2 Million road money. You can pave more roads with that
money. Mr. Brighton said to get this money we will have to
appropriate up -front; we would collect $614,000, but it would take
12 years. Councilwoman Bailie said she has called Anchorage,
Soldotna and Homer. Anchorage people said there is no municipality
in the country that does not assess. It has been done for 25
years. Anchorage uses part State road moneys in residential areas,
- _ -no no tax dollars: -The -pa'y-back scale is anything -under $1,500- as o - -
be paid back in 5 years. Over $4,000 is 20 years to pay. Soldotna
- - - - - -
- - - -has a-$4 Miilionfiond issue. -All residents -have- an option -to -_-
up -grade. 25% assessments, 10 years, 9-1/2% assessments. All goes
■
KENAI CITY COUNCIL- Minutes -
- -----
July 6, 1988
/f
Page 6
n
into new road projects. Homer has sales tax for reconstruction and
paving. The home owner has the option, for roads now in or paper
platted. Reconstruction is $20 per lineal ft., strip paving is $11
per lineal ft. Sales tax dollars cover anything over this. They
-
have limited it to 20 districts. We are exhausting all of our
funds. The City will have to have some kind of equality. There is
a resolution on the books setting up assessment districts. This
pertains to all but Swires. In every other school in the Borough,
the Borough has paved with Borough funds. The City has received no
'
Borough. She cannot go with the City paying for
money from the
this. Councilman McComsey asked, what will it cost to administer?
Finance Director Brown replied he did not know. The programs are
set up. The accounting will not be an extra cost to the City, just
time. if we have a foreclosure, there will be costs, probably
,
minimal. Atty. Rogers added, the legal costs would be minimal.
- - - - ---- — -,- --
Mayor Williams asked if there were any assessment foreclosures at
this time. Atty. Rogers replied, Inlet Woods is in the packet, the t.
numbers have changed. Councilwoman Swarner asked if there is
interest charged with assessments. Mr. Brown replied, Council sets
that rate.
"
C-4 Res. 88-52 - Initiate Special Assessment Proposal -
Road Paving - Swires
MOTION:
Councilman Measles moved, seconded by Councilman McComsey, to adopt
the resolution.
PUBLIC COMMENT:
a. Brad Zubeck, 414 Swirea, Kenai. The Borough should pay for
the road. We are the only residents on the east side of
swires and own all the property on the east side. There was a
grandfather clause in the title for 50 ft. of right of way.
Improvements were made, 33 ft. were donated by taking for the
school. Over 2,000 ft. of right of way total. Mountain View
School is the only school in the State on State maintained
road. Sky View and Mountain View were in a 1985 bond issue.
There is $3 Million left in the fund. The Borough is
responsible to pave. Only school people use the road. With
50% assessments, it would be $34,000+ for them. This is a
large amount. The school has changed their life style. They
hoped to have animals. They have had to stop because of the
crowds in the area.
b. Betty Glick, Kenai Borough Assembly. She has received a
letter asking that the Borough pay for the road to the school.
Nikiski is 2/10 mi. road, Sky View is 1/10 mi. road, Mountain
_ -
View is 2/10 mi. road. She has prepared a letter to present
to -the--Assembly. It will -not be -discussed- till- Ju y 9.-
was not Borough money to pave, it was the cost of
- - - - - -construction.- -Councilwoman-Bailie -said.-the-main_poin_t is that
we do not benefit from any Borough road money. All the people
in the City are tax payers to the Borough. Councilwoman
Sly
jMA1 CITY C0UNCIL- Minutes
1 ;
July 6, 1988
- -- -
- -
Page 7
-
O'Reilly said all of these districts were paved with school
e*
t
construction funds. Why not Mountain View? Borough Assembly
Member Glick replied, the 2 in Soldotna were done by Soldotna.
}
Homer was many years ago. Mayor Williams asked, how much
money is remaining in the school fund? Mrs. Glick replied,
be for saward Elementary. City
$3.5 Million. It is to used
...
Manager Brighton referred to the bond money. They were school
specific. They cannot use without an additional vote of the
'
public.
MOTION, Table:
Councilman Measles moved, seconded by Councilwoman O'Reilly, to
^f.
•_
table to the July ZO meeting.-
:^;_ :',, ai''
L
Public Works Director Kornelis said we have a bid opening July 14,
-
---- -
it can be postponed. It will put the paving into the school year.
Councilwoman O'Reilly asked, how far into the school year? Mayor
�
. ......_. '
Williams said Swires is the i!1 priority. He suggested we go ahead
'
with paving and go back to the Borough. $700,000 must be
appropriated by Oct. 1989.
_
.
�.,
VOTE (Passed):
��-
Yes: O'Reilly, Swarner, Bailie, Measles
_
k
No: Williams, McComsey
AWk
Councilwoman Bailie suggested City Manager Brighton and Mayor
Williams attend the July 19 meeting to present the City position.
-
jo
C-5 Res. 88-53 - Initiate Special Assessment Proposal - Road Paving -
}}
VIP Drive, Lora Dr., Watergate Way, Ketch Ava., Pirate Lane, Muir
Ave
j
MOTION:
Councilman Measles moved, seconded by Councilwoman Bailie, to adopt
-
the resolution.
There was no public comment.
'.
Mayor Williams said he made a personal visit to people in the area
to inform them.
_
I:.
VOTE (Passed):
-'
Yes: O'Reilly, Swarner, Bailie, Measles
'
No: Williams, McComsey
C-6 Res. 88-54 -Initiate Special Assessment Proposal -Road Paving -
'
E. Aliak, Highbush
_`_
...
MOTION:
f'
Lj
1H
KENAI CITY COUNCIL- Minutes
-July 6, 1988 -
Page 8
Councilwoman Bailie moved, seconded by Councilwoman O'Reilly, to
adopt the resolution.
PUBLIC COMMENT:
a. Darby Howell, Highbush, Kenai. He wants the City Manager's
proposal with no assessments.
b. Betty Glick, 1601 E. Aliak, Kenai: When we had much money
from the State, she was on Council and argued we should have
assessments. Now it is different. We should be doing
assessments. Assessment provisions have been on the books.
Precedence has been set. Eagle Rock is the only area that has
been asseseed. They have been paved because of dust. We did
not have traffic when we moved to Aliak. She has to water the
street now because of the dust. She has had more throat and
nose problems in recent years. Mountain View school opened,
there is much traffic. It is a danger to children. There are
safety and health hazards. Regarding equity. What about the
residences that have been paved at no cost? We should go back
and assess them. We would not mind paying assessments, but
precedence has been set. Regarding street lights. We should
start billing the City for the light we provide. The health
and safety hazards are through no fault of our own.
C. Rita Draheim, Highbush, Kenai. She agreed with Mrs. Glick.
They are concerned about safety. Many people do not stop at
the stop sign. She would like the City Manager's proposal
accepted.
d. Glenn Gifford (?). He has 5 rentals in the area. This
assessment will put him out of business. He agrees with the
City Manager and Mrs. Glick.
e. Joe Foglia, 1511 E. Aliak, Kenai. He agreed with Mrs. Glick.
Parents do not stop there, they go on to school. That creates
more dust. They did not ask for the school or the golf
course.
f. Mark Hall, 310 Highbush, Kenai. He agreed with City Manager
Brighton and Mrs. Glick.
MOTION, Amendment:
Councilwoman O'Reilly moved to amend the motion to 0% from 50%.
There was no second.
MOTION, Withdraw Amendment:
Councilwoman O'Reilly withdrew her amendment.
Councilwoman Bailie said she would rather not pay anything than pay
assessments. She referred to the statement, "A11 residential areas
have been paved without assessments." Redoubt, Howson, Woodland,
behind the high --school -were paid -for by the residents.- We ve..._
passed 50% for VIP, that is across the bridge. They will never see
-water--&-sewer-.- --They-got -street -lights _last_yvar_,_ Many- of you ____ __
received water & sewer and did not pay for it. She was charged
-K.ENAI CITY COUNCIL- Minutes
July 6, 1988
Page 9 -
when elected to act as fairly as possible. We cannot deplete all
of our funds in these protects and not give to our kids. What are
we saying to our kids?
VOTE (Failed):
Yes: Swarner, Bailie, Measles
No: O'Reilly, Williams, McComsey
Tie vote fails.
C-7 Res. 88-55 Xnitiate Special Assessment Proposal - Road Paving -
Candlelight a., Linwood Lane, Kaknu Way, Kiana Lane, Baker St.,
Lawton Dr. !
it
MOTION:
Councilwoman O'Reilly moved, seconded by Councilman McComsey, to
adopt the resolution.
Mayor Williams said Councilman McComsey does not have a conflict
with this item.
PUBLIC COMMENT:
a. Joe Kizer, 405 Linwood, Kenai. He did not remember anyone
07 asking him if he wanted Linwood paved. Was anyone asked? He
did not want it paved. Councilwoman Bailie said she agreed
with him. If you had an assessment district, you do not have
an option. If we pay 100%, we decide.
b. Dale Needer (?), 116 Candlelight, Kenai. He built
Candlelight. He saved the City a lot of money. He would like
to see the road paved because of the dust.
C. Jill Burnett, Candlelight & Kiana, Kenai. We all agree that
there is a need for Candlelight, Kiana, Aliak paving. We have
a different situation than Redoubt and Mommeen. We are not a
formed subdivision. We are a collection of private homes.
They were built by developers. We are living with a situation
that was given to us - a golf course, a church and a school.
If you can get Borough funds for Swires, okay. What if you do
not get from the Borough? Do you pay for it? (The Zubecks)
are -facing the largest assessment, but there are other large
assessments. Where do you draw the line? Burdensome is
irrelevant. There is much maintenance on those roads now.
There will be some savings. All of those roads have been
affected by actions of a civic nature. Council are represent-
atives, not an independent board. You need to bear in mind
the feelings of the people who live there.
d. Frank Getty, 108 Candlelight, Kenai. He was charged more than
some people with less acreage. When Mr. Aaes and Mr.
Craycroft said their businesses were getting dirty, Council
got paving for them in three ---weeks.-- y? Doos - o-a
�J difference who the person is? He agreed with City Manager
-- -- —
-- -Brighton:-- There -shouid-not-be -assessments.- He- id -not as - - ---- -- -
KENAI CITY COUNCIL- Minutes
July 6 1988 -
Page 10
E
for the golf course. The City created a monster, they should
be responsible. He does not want his road paved, but you
should pave those affected by the golf course.
e. Richard Purcell (?), Linwood & Kiana, Kenai. He is the
minister of the church. The street is very dusty. He agreed
ss
with City Manager Brighton and Mrs. (click. The City has the
`
money, it should be used for that. They did not ask for the
.
golf course. The church does not have the money to pay for
the assessments. Why are they being assessed and others are
-
not?
f. Sharon Williams, 306 Candlelight, Kenai. In 1983 the road was
up -graded. She has had allergies since that date. Now with
the golf course traffic, 200-300 Bare per day go through
•
there. There are small children there. Will Council take
action after an accident? What is the cost of bringing a
,.
grader up and down the street? What was the cost of bringing
water & sewer to the golf course?
-
g. John Jackson, 213 Linwood, Kenai. He went into his land with
a Jeep when he moved there. He appreciates progress. There
were few people there. Over the last 25 years there has been
";..
a double standard. We have assessed some and not others.
City Manager Brighton submitted a proposal that was fair and
. -
equitable. It has been said that Council does not listen to
everybody.
-
h. Wilford Mattfield, Linwood, Kenai. He took time to go down
:" r., �.•:
Linwood and speak to each person, asking if they wanted to
have their street paved. Over 80% are not earning enough to
pay for this. After the pit was opened, we got much duet. He
spray -painted his house, it was to last a long time, it will
."�
not. Many younger people have started to buy homes, they will
have to leave. Linwood, Lawton, Aliak should not have to pay
extra.
' -
i. Dalton Peters, Candlelight, Kenai. With the golf course,
Jill
church and school, the dust is bad. He has planted his yard 2
--"
times, it cannot grow. He asked for no assessments.
"
J. Gordon Meeks (?), 301 Candlelight, Kenai. The street was good
;;.a.
till the golf course was built. This should be done. We
should finish projects we have started. Council people are
not listening. The money is here, it is not out of their
pocket.
k. Tony Dyer (?), Linwood & Colonial, Kenai. They have other
- - -
traffic from the golf course, etc. It is not fair that they
pay for what they did not buy. His assessments are high
-- - _ - - -
because of the land area, that is not fair. How much will
they pay for in percentage? They have no street lights.
1. Tom Messer, 860 sand Dollar Dr., Kenai. He has rentals on
Candlelight and VIP. VIP will go back to the bank. He cannot
"
afford it. Candlelight will not make him any money. He can
live with whatever happens. On K-Beach side they will not see
what Kenai has regarding improvements. We should start being
equitable. Council should be consistent.
,, - - - -Councilwoman Bailie asked, -how -do you propose fiandiing uture-- -
f, paving in the City when this is gone? City Manager Brighton
it
CJ
1
�• _..
,
,I:
-- -_--- _-- ----__-__
--KEDiAI CITY COUNCit<- Minutes
July 6, 1988
page 11
replied, if the City has no capital improvement moneys for road
work, it would be obvious at that point that we would have special
assessments. Till that time comes, as long as we have road money
as the city started by starting down
.,. ,..:,.
available, we should proceed
town and moving out, once down town is done, roads should be
chosen and paved by those with the most traffic. Councilwoman
Bailie said he is saying next year there might not be money
,,.
available. Then we will not be able to give 50%, we will have to
charge l00%. City Manager Brighton explained, it is not his
intention to argue with Council. They are his employer, they can
accept or reject. Councilwoman Bailie said we are sitting as
Council, we are ahargod with not just working for today, but to
- - -
look down the road. She would hope the public would charge us to
"
be fair and have consistency tonight. VIP will have 50%, the rest
-- - - -- --
will have none. She would hope -City Manager Brighton is not just
' `L,-;
thinking of today, but 10-15 years from now. Councilwoman O'Reilly
-,=• --=_, -
referred to fairness. She voted in favor of VIP assessments. She
has no problem with assessments. She has a problem with other
entities that entered into these people's life style.
VOTE (Failed):
Yes: Swarner, Bailie, Measles
No: O'Reilly, Williams, McComsey
Tie vote fails.
'It'
C-5 Res. SS-53 - Reconsideration:
MOTION, Reconsideration:
Councilman Measles moved, seconded by Councilwoman O'Reilly, to
reconsider Res. 88-53, based on this action.
Councilman Measles said it appears that the present direction of
Council is to spend money while it is available. We should have a
'.'
resolution to nullify all existing assessment districts, spend the
money and not worry about it. At that point we can raise taxes to
raise money.
VOTE, Reconsideration (Passed):
Yes: O'Reilly, Williams, Bailie, McComsey, Measles
No: Swarner
VOTE, Res. 88-53 (Failed):
Yes: Swarner, Bailie,
No: O'Reilly, Williams, Mccomsey, Measles
Mayor Williams said the next procedure is requests for bi
Council will review bids and set appropriations. Public Works
l
Director Kornelis said he will have an appropriat ng or .
introduced the meeting before the awards come to Council. The
KENAI CITY COUNCIL- Minutes
July 6, 1988
Page 12
awards will come the same time as Council approves the
appropriations.
MOTION:
Councilman McComsey moved, seconded by Councilwoman O'Reilly, to
have Administration prepare an appropriating ordinance regarding
item C-a, C-5, C-6 & C-7.
Mayor Williams said Swlres Rd. will wait till the 7-19 Assembly
meeting to determine further action. City Manager Brighton said we
will have an appropriating ordinance on packet day. Then Council
can handle, depending on the Borough. Public Works Director
Kornelis said an appropriating ordinance has been introduced.
VOTE (Passed):
yes: O'Reilly, Swarner, Williams, McComsey, Measles
No: Bailie
C-8 Res. 88-56 - Transf of Funds - Schematic Designs -
Expansion of Senior Citizen Center - $4,650
MOTION:
Councilwoman O'Reilly moved, seconded by Councilman McComsey, to
approve the resolution.
Thera was no public comment.
Motion passed by unanimous consent.
D. COMMISSION/COMMITTEE REPORTS
D-1 Council on Aging
Councilwoman Swarner explained they are asking for $2,000 from
Council in anticipation of selling the equipment in the work shop.
It would return to the general fund when received. She referred to
the letter from Program Director Porter. Clerk Ruotsala explained,
that was distributed to Council only. City Manager Brighton said
it was our intent that the building inspector and maintenance man
would retain those that there was need for and the remainder would
be sold.
MOTIONt
Councilwoman Swarner moved, seconded by Councilwoman Bailie, to
�},,... appropriate $2,000 to make minor changes to the room now being used
as --work- shop.- . - - - _
Mayor NVU-jams referred _to -_ item _ F-1 (letter from Clarence Ladd).
City Manager Brighton said Council on Aging felt that since there
was such lack of use of equipment and room and much greater need
4
it r
KENAI CITY COUNCIL- Minutes
July 6, 1988
Page 13
for expansion of the Center to accommodate other purposes, they
voted to close the shop and dedicate the area for additional space
for the community. There was a controversy. There was a poll
conducted. The majority voted to close the shop. At that point,
there was concern regarding liability of the shop because safety
factors had been removed from the equipment. At that point, he
closed the shop. mayor Williams said he is concerned regarding the
candidneca of the letter. What is left for the men? Councilwoman
Bailie replied, bingo and single women. Mayor Williams explained,
doctors say not too much TV and we are putting in TV.
Program Director Porter explained, there is a newsletter each
month. All activities are non-sexist - swimming, pinochle, etc.
Men do not do crafts. The men in the work shop were extremely
handicapped. There was no supervision. it would only be 1-2 days
per week if we did open it. The rules were not followed. It was a
decision of the majority to close. We have a lot of men partic-
ipating in our senior center if there were no activities there,
they would not be there. one man used the sewing machine. Most
men will not, but it is available. At this age, coordination,
eight and hearing are not as good. Mayor Williams said he is not
questioning the closing of the work shop, just - what is left?
Mrs. Porter replied, pinochle, pool, swimming, aerobics. City
Manager Brighton noted the Council voted to close the work shop
June 18. Mrs. Porter added, we had male volunteers -to move the
electric units. Mayor Williams asked if it was supervised. Mrs.
Porter said they have a carpenter putting windows in, they are
volunteers.
Motion passed by unanimous consent.
ADDED ITEM:
Councilwoman Bailie noted the United Way allotments, the Senior
Center received the highest marks of any agency. She suggested a
letter of commendation be put in Mrs. Porter's file.
D-2 Airport Commission
Councilwoman O'Reilly reported on the meeting of June 18th, there
was no quorum. The next meeting is July 14th, minutes are in the
packet. "I'd like to commend Janet Loper with discretion with the
way she handled Item #2.
D-3 Economic Development Commission
:.. Barry Thomson: In the packet, a group of drawings were provided
;,.., which concern the concept of an RV park. Commissioner Penny Dyer
and myself were commissioned to prepare a report. Presently there
are no full service RV hookups within the economic reach of
downtown Kenai. A resolution from the Chamber of Commerce
= _ indicates that -within the -last-approximately two, weeke - there -have-
z- been 74 requests for RV facilitates of which 75% of those were
r - -requests for --full service -hookups. There -is l eva opment--
:.' behind Fred Braun's shopping facility which will take approximately
�y
Ai
k.
{
# t
,
KSNAI CITY COUNCIL- Minutes - - - - -
July 6, 1988 j
Page 14 {
15 hookups. The City of Kenai and the Chamber of Commerce has been
waiting for several years for a commercial interest to come into
+'
the City to fill this void, until right this moment, there has been
no one to come in to take up the gauntlet and provide these „1
services. ��•
Our research indicates that one of the prime reasons for this, in
working with Kamp Grounds of America (KOA) is that generally within -
Alaska RV parks with reasonable facilities are generally
�;
uneconomical. The reason for this is the cost of the land, cost of
'
facilities, very short seasons for economic return. On this basis,
it was considered by the Economic Development Commission that there
may be a possibility that the City of Kenai could itself, develop -
an RV facility, a full service RV facility and having the option of a
running it themselves or to lease it out on an annual/semi annual - - - - --:---
'4
basis. There needs to be a proper facility developed rather than
3
to do it in a haphazard fashion, we need full service facilities -
which include water, power, and sewage and/or dump station.
The reason for this is the group that we are trying to target is
the person who is typically driving an RV at this day and time.
They are generally middle aged, semi retired to completely retired,
jE ....
they are fairly self-sufficient, they do have dit.cretionary funds
to spend, they also are driving a vehicle which roots
approximately, in many cases, the same price as .a reasonably sized
house in Alaska. With the sophistication and the cost of their
;...
equipment, it is felt by many of these people teat we talk to, that
they didn't want to have to go without facilities when they travel.
They like the comforts of home to do that. This indicates that
c_
they want water, electricity, sewer, dump stations, also a possible
area where groups can gather in terms of some sort of meeting area,
be it a pavilion or even just a gathering area. Generally, the
- '
type of people we are attempting to target spend, on an average,
;..:'.. _.._
$60 per day per head in discretionary funds. This is excluding
:-.
the cost of running the RV in terms of fuel and maintenance
facilities. I don't pretend to have, at the moment, the numbers of
how much revenue that would bring in to the economic area of Kenai.
Doing some very quick arithmetic, if we developed approximately a
50 space RV camp, assuming it was full every night for three months
with a minimum of two people per space, you can see that there is
i;
quite an economic impact in the area. Unfortunat3ely I did not do
that arithmetic.
.,:,. •r..::;.........:::'.;':
once we considered .the facts, we then looked around for potential
areas that could be developed. one of the advantages the City of
;�..
Kenai would have in developing an RV park for themselves is, if it
.-
was done on City land, the cost of the property could be
t} -
effectively nullified. If the City decided to do some of the
'
development themselves, the cost of development could be minimized.
Therefore there -is a much better -chance- that an economic return can - - - --- - - --,- - --:
'
.
` .:.
be regained by the by the City operating or leasing it out to an
-- = --- —�= , - -
-- operator. --- -- -- - ---- --
v
Imo:
----- --�
KENAI CITY COUNCIL- Minutes - -
July
6, 1988
Page
15
Some of the things that are required; it needs to be within walking
distance of facilities such as restaurants, shops, and services
,.
available. Looking through Kenai and your package, the first map
IV,that
is referred to is Map #1 showing the border of airport lands.
;.r
Just to the south of that there is a small dot labeled "B". Just
to the right of that along Beaver Loop Rd -there is an race n.� >.ked
"A" and then to the left of the airport lands there are two other
lands marked "B" and "C".
Area "A" off Beaver Loop Rd indicates the potential development to
be made by Foster Brothers. We can see that this is 3.6 miles from
downtown Kenai, which are measured to be at the traffic lights of
-
willow and Spur. Areas "B" and "C" are basically the Centennial
- -
Park and the potential discussion with using the little league area
-`-"- - -- -
off Spruce Street for potential -development which is possibly no
longer available. Area "D" is a section of land that is owned by
the City of Kenai, better known as the Daubenspeck property. We
looked at several alternatives and of course several people had
various plac3s that they would like to have an RV park developed,
" `....
but the decision was made that perhaps the Daubenspeck property may
be the best place to go and we offer this for your consideration.
We also offered an area showing drawings of the Daubenspeck
--
property with relation to the rest of the City of Kenai. Basically
.�,.... -
it is between the Bridge Access Rd and the FAA facility next the
Senior Citizens coming in, essentially towards Arby's corner there.
This area is, a8 I said, .3 miles from downtow:: City of Kenai, one
-
--R'.
of the critical things with the RV people that we've spoke to was
-
that they like to move their equipment in during the afternoon,
'
late afternoon, they like to be able to arrange for their hookups
r,
and then leave it there until the next day. They were not very
4.
enthralled with the prospect of having to uproot everything to
drive somewhere to get an evening meal.
,;,..
1
All these lands are available and i have them on the last two pages
- --
`.
which also show the services available, electricity service
available, gas. Electricity is available in three places on that
r
:,.
Daubenspeck property, one is not too feasible, down in the lower
- -
right hand corner, there is three phase power available on... from
the FAA facility and also ... at the rear of the property which is
occupied by Gallery 25. Cost to produce or to move the power in to
the Daubenspeck property would be approximately $15,000. Likewise,
gas is available. And gas, is presently, going down to the Senior
Citizens Center, it would be brought along the south of C Street to
the property. Costs to bring the gas in there would be
approximately $7 to $8,000.
City Manager Brighton: what would the purpose of gas be? Barry
Thomson: I don't know, I'm following all facilities, if we have an
office -in there -then maybe -we ldneed gas.. I-Im -just -covering -all the ..._
.. - ------------_-------.----------_._-__--
1
bases. Ray Measles: perhaps for showers, laundry facilities,
0.
--- - -- - - - -- ---
- - - - -
- - -( inaudible -voices) -
` KENAI CITY -COUNCIL- Minutee
July 6, 1988
Page 16
Barry Thomson: Use of the Daubenspeck property, we would propose
to be on an interim basis, we do not want a permanent facility
there that cannot be removed at all because we feel that this land
is not being used by the City at all at the moment, however,
sometime in the future we may want to build something there ;:ether
than an RV park. I have talked to electricity people and the
general out ... also the gas people, that generally under the
impression that it would be very simple to put in underground
utilities by means of trenching. Facilities, if we were to use
concrete pads, they could be just backfilled, the concrete could be
put on it. I would propose, as where I grew up in Australia, in a
resort town, all the facilities were portable;- showers, and even
the offices of the campgrounds in the area were built to a standard
size, -approximately 10 by 10 modules. Any failures they would be
lifted up, removed and replaced. And there would be no repair on
site. Also, at the end of the season, everything including the
offices were removed and taken back to the city council yards where
they would be stored over the winter and vandalism was essentially
nill. Any of these facilities that are put in can be removed quite
easily because they would be mostly underground facilities and
concrete slabs that could be essentially uprooted with a ripper
plate in a short period of time, for any further facilities. So on
that basis, I submit this for your consideration and any
recommendation you: may have to the Economic Development Commission
(inaudible).
Councilwoman Bailie: I appreciate this report Barry. I would like
two things; number one I was wondering if we could set a work
session with the Economic Wevelopment Commission, possibly with
the Chamber of Commerce and with the Council and discuss tourism.
The need is definitely here, I would hope that we could do it
within the near future and get on it and hopefully, and maybe we
could have something going for next year. Secondly I would like to
see this Council put their whole hearted support the Foster
project, give them as much of an ok as we can, in talking with Mr.
Foster he felt in order to have his facility ready for next year
its important that he get started on it by the middle of this
month. And I think we all recognize the need for this facility and
certainly the need for private enterprise to get involved.
City Manager Brighton: Mr. Chairman, you have, in the packet that
the Clerk passed out, a letter to City Manager from Mr. Foster. He
is submitting a petition to the P&Z for an amendment to his
reclamation project at the gravel pit site to initiate the RV park.
I would suggest, pardon? Councilwoman Bailie: (inaudible) City
Manager Brighton: yes, they have, the P&Z have already adopted a
land reclamation project for it and he is submitting an amendment
to that permit using the RV park and that is a permissible use for
reclamation and I would suggest that if the Council is serious in
wanting to pursue that that they -would -pass -a-motion--directed-- to-
-- --------------
Planning & Zoning expressing their support for the amendment to
--that reclamation -project. -
MOTION:
U
r
_ - KnNAI CITY _COUNCIL- Minutes
July 6, 1988
Page 17
Councilwoman Bailie: I so move. Seconded by Councilman McComsey
Mayor Williams: all right its been moved and seconded please repeat
the motion.
City Manager Brighton: that the City Council is supportive of the
petition submitted by the Fosters for an amendment to their
reclamation plan on the Foster/Cone pit off Beaver Loop reference
981/4, Section ?, T5N, R11W, SM, presently under reclamation.
Mayor Williams: Is there any other consideration or discussion by
Council, Councilman Measles first. Councilman Measles: I believe
Dana, is there not some concern at Planning & S..ning,- the gravel
pit is operated under a conditional use permit or a special use
permit ...
City Manager Brighton: yes, conditional use permit.
Councilman Measles: an RV park would also have to be operated under
a conditional use permit?
City Manager Brighton: no ....
Administrative Assistant Gerstlauer: no, not if its part of the
reclamation.
City Manager Brighton: An RV park is a permissible use in that
zone.
Councilman Measles: Under the current zoning.
City Manager Brighton: Yes.
Councilman Measles: 'Cause at the other night's meeting there was
some concern that you would have two conditional uses operating
simultaneously on the property ....
Administrative Assistant Gerstlauer: But they would not be
operating the gravel pit when they ... under the reclamation.
City Manger Brighton: Right. They're substituting ....
Several voices at once - inaudible
City Manager Brighton: Raymond, they're ...
Councilman Measles: ....not, not .... phase one of the RV park
will be in operation before they quit using the gravel pit and that
was a concern of the Planning Commission at the last meeting.
City Manager Brighton: What they're asking is, is a substitute of
the reclamation portion of the conditional use permit. So that two
would not be in operation at the same point, that -the -RV park -
would -be a substitute for the one that had already been ok'd.
L.�
i8y88l.
�i
i
KENAI CITY COUNCIL --Minutes
July 6, 1988
+ Page 18
{ Administrative Assistant Gerstlauer: They don't need a conditional
j use permit to operate a RV park. They need the conditional use
�{' # permit ... .
City Manager Brighton: ... for reclamation.-
_ Administrative Assistant Gerstlauer: ... the RV park is part of
their reclamation. An RV park is a permissible use.
` inaudible voices
Councilman Measles: if an RV park is a permissible use in that _ -
zone then why do they even have to come to P&z to get permission to
-- — put one in.
- Change of tape, some conversation lost.
City Attorney Rogers: ...is in fact a permissible use. It would
be a nonconforming use under this proposed amendment. It would be
- •• _ a substitute nonconforming use as is presently. I think that was rr.'
18 months reclamation permit .. inaudible .. I would have to go
A beak .. inaudible .. and establish in my recollection ....
Councilman Measles: if an RV park was a permissible use they would
not have to come to P&z to get permission to put it in.
3-
City Attorney Rogers: Right, and I think that what the amendment
'` will do is continue to permit a nonconforming use in a Rural .. ah
suburban Residential area. But it will be a different
nonconforming use. And that's my recollection but I haven't
- - reeearche:: it... inaudible.
Councilman McComsey: There's not a commercial use in that area
"..- ;:•<'._ now? There's a boat works down there, a fella making boats in a
warehouse. That's right beside it. That's not commercial?
City Attorney Rogers: I don't know anything about that, these
other facilities. we've got, all over the city we've got little
home industries if I can use the term loosely.
- -' City Manager Brighton: I don't want to confuse this subject any
more than it already is. The area is being used as a gravel pit in
order to do that, they had to get a special use permit for that
purpose. In addition, in getting this special, use permit they had
to provide a land reclamation program that was acceptable to P&z to
get the special use permit. What they're saying now is, that they
want to substitute the RV park for the land reclamation portion of
..,
?` the gravel pit. That basically what that situation is? And I'm
not going to get into an argument with the attorney over land use
in that area,-
-- --- ;. - -- - -- - - - - -City Attorney itogerss- I`m not -arguing- Bill, -you know- what -you -re -- - -
suggesting would be permissible (inaudible) and I just wanted to
get on the record what I believe the situation is as far as zoning
r
is i ,
KENAI CITY -COUNCIL- Minutes
July 6, 1988
Page 1a
is concerned. That's not to say that it would not be permissible I
lI
feel it would. (rest of statement inaudible)
•..-
., -h.
Mayor Williams: yes, Councilwoman O'Reilly.
�-
i'
Councilwoman O'Reilly: The motion that we are 1 :onsidering
could you repeat that please.
4`':1
'-"' h::: •.
City Manager Brighton: The motion, without repeating it word for
S%
word is essentially that the Council is supportive of their request
_
""`,`'";'`E''.
to substitute the RV park for their present land reulemation on the
•--
;'.,
pit which permitted their special use permit for the pit in the
-
-- -- ..�
first place.
n -
.
°- --.- -: --- --�
Councilwoman O'Reilly: Has Planning & Zoning considered this?
a
Administrative Assistant Gerstlauer: Not yet. They will be
meeting again on the 13th. (portions of the statement were
'
,...'_;
inaudible).
City Attorney Rogers: To give guidance to them from the Council.
T:
It is Council's desire ... inaudible.
Councilwoman O'Reilly: If we approve this motion are we saying
-
that there should be an RV park in that area.
Councilwoman Bailie: Yes
^�
City Manager Brighton: I think you are.
Mayor Williams: Councilwoman Swarner.
Councilwoman Swarner: Well if they, Planning S Zoning that has not
discussed this particular issue, I mean at this ... this discussion
„j
right now, they have not addressed that is that correct?
..
City Manager Brighton: I can't testify to that.
.
<.'._ _..........
.....: _.'..__`:.
Councilwoman Swarner: I don't think we should be telling Planning
& Zoning what to do. I mean I think Planning 6 Zoning should
a
c themselves then give us their recommendation, I
discuss it among the
don't think we should be directing them ... what ... what ... you
know.
':._
"' ' `'''"''"
Administrative Assistant Gerstlauer: No. I don't believe this
-
" $
will come back to Council.
Councilman Measles: No, this is the last shot.
-t'.
'•,''
_Administrative .As-sistat►t Gerstlauer=._.Conditional _use_ permits do
'
not come beak to Council. They won't, you won't have an
..,
opportunity -to vote your opinion on it after P&2 takes action.
.. _.. -
-.- .k woo., •
14,
_
- V;
,
KENAI CITY COUNCIL- Minutes
"July 6, 1988
Page 20
Councilwomen Bailie: Are you saying then that anyone who comes
before Planning & Zoning they get a negative response to them does
not have the right to appeal to Council -
City Manager Brighton: yes, they do have the right.
Councilwoman Bailie: Then I think that you know, I really feel
that number one, we say that we are here for progress, ws want to
improve the economy of the area, we have testified to that in our
first resolution tonight, wanting to spend the money, we've got a
private enterprise that wants to put in a first class facility in
our area and I would hope that this Council would keep these things
in mind and lets do all in our power to try and help these
individuals achieve what they're setting out to do. They're doing
a good job. I mean for any of us who've been down there I was very
impressed by it. They've got a good track record, they're
individuals who've gone to high school here, they've been living
here for a long time, its a first class facility, lets hope that
this is just the first of many. And I would hope that this Council
would do anything in their power whether its trying to influence
Planning & Zoning in the way that we feel, I think that under these
circumstances, I would hope that Council will vote for it.
Councilwoman Swarner: So then do I understand that it does not
come back before us for approval like the zoning.
Councilman Measles: No. Only if their decision is appealed.
City Manager Brighton: Yes.
Mayor Williams: All right, we have a question before us to support
the concept of the Foster Brothers reclamation program,
Many voices - inaudible
.
VOTE:
O'Reilly - no
Swarner - yes
Williams - Yes
Bailie - yes
McComsey - yes
Measles - yes - cause they're not asking the City to help pay for
it. -
Councilwoman Bailie: that's right.
City Manager Brighton: Mr. Chairman, one more moment on that
subject, this does not nullify their request for a work session
with Economic Development ....
Councilwoman Bailie: ... you bet it 0e8n
- - - --- - - --penny Dyer: May-1-make (inaudible) --what; we -are -proposing-here- -is-
indulging in competition, with the Foster project.
MA
A
1.
114
KENAI CITY COUNCIL- Minutes
July 6, 1988
Page 21 -
Councilwoman Bailie: right
Penny Dyer: We are looking at a different kind of traveller. We're
looking at the older couple that does not want to fish, go down to
the river and that type of thing, we want the one that comes into
the town, into the city and (inaudible) here. I fully support the
Foster concept, I think the rest of the Commission does also, its
just that we feel that there is a need for an RV park in downtown
Kenai. The City, have you looked to see how many RV's were in town
this last weekend you'd understand.
mayor Williams: Council, we have a request for a work session with
LAMM
Economic Development and the Council to discuss the very broad
issue of tourism. That discussion has been suggested through the
Chamber of Commerce. Depending upon how soon you want to have
that, can I have a date for the next Economic Development
Commission meeting. The date finally settled upon was Wednesday,
July 13th at 7:00 P.M. in the Homer Electric conference room.
Councilwoman Bailie: Before we leave this, I would like to see
this us look at Cunningham Park. I think that, if in fact, this
camper facility is successful, he's not going to be running a dock
area out into the creek so most of the people would be depending
upon the guides in the area or Cunningham Park would become a very
popular facility. It is right now but it is lacking greatly as a
facility and I would like Council to look at enlarging the parking
area and improving the docking or ramp area.
City Manager Brighton: Along those same lines, the public Works
Director has been having some conversations with Pat Doyle who owns
the property directly across the street in which there is a gravel
pit. We are talking in terms of see if he would propose a price
for that property that would be reasonable. one in the city no
longer has a source of gravel. it would provide the city with a
source of gravel and, secondly it would provide the city with a
relatively large area for parking that would permit them to park on
that side of the road while using the Cunningham Park without
putting any vehicles in that park which would make it available for
larger numbers of people. And, after some discussion with him, the
possibly of a decent boat ramp into the river there so that they
can put their boat in, pull their vehicles across the road, park
them so they would be out of the way so there is some movement on
that situation.
D-4 Harbor Commission
Leon Quesnel, Chairman: Our normal date for meeting would have
been last meeting, however, Mr. coughenhower addressed the chamber
of commerce Board of Directors last week regarding the fish study.
Mr. Coughenhower hopes to have a report back to the Harbor
Commission by the end of August. Chairman Quesnel asked if there
was a - replaceme . nt for Mr. , Ackerly who was the ad hoc memberre
Councilwoman Sally Bailie agreed.
-- -__--- - -- -_ - ..-:- -
r"A1 CITY -_COUNCIL- Minutes _
July 6, 1988
Page 22
D-S Bicentennial Commission
Mayor Williams informed the Council that both Ad Hoc members were
= # :
absent.
Councilwoman,D'Reilly: In reading the minutes of their June 20th
L.:
meeting, I noticed that items number 3 & 4 there were no minutes
.-- " --
from the previous meeting and no agenda, is that unusual. Mayor
Williams stated that there appeared to be a jam with the contract
secretarial staff. There is a new service.
Mayor Williams: There has been no action taken on the letter to
•
von Gilman from the Soldotna Historical Society, however I fully
intend to follow up on that.
'.
Parke & Rec Director McGillivray: On the Bicentennial there's an
item on the requisitions over $1,000 that -should be explained
because it falls under Bicentennial. These are the numbers for the
dates 1791 - 1991. 1 did contact Anchorage and found their source
for their "Welcome to Anchorage" sign. Brewington Signs is the
source. They are anodized, aluminum, plated and can also be
purchased in colors. I went ahead and had a purchase order made up
because they do have to be ordered, so if Council wanted to move
ahead it would be ready. $1,866 is estimated. Mayor Williams
.:�
explained that the idea was originally for white rock, however it
wes cost prohibitive. This issue will come again later in the
meeting.
D-7 Library Commission
:-
Librarian DeForest informed the Council that Friday is the last day
to turn in the reading lists. There are over 100 young people
participating. Friday will be the .first day of circulating to the
_,!� T:-•
public. We have done some in-house circulating and it worked well,
we will be happy to have any of you to case over and view it.
0-8 Parke & Recreation Commission
- -
Director McGillivray informed the Council that the Commission made
-:'„•.
two attempts to meet this month, however, there was no quorum for
- =" ,.- 11 '. •.-.--`,=", -: '-
either one. The next meeting will be in August.
The summer rec program is proceeding well. After the article came
,....:.:_,".'
out in the paper about the program, enrollment went up by 20 to 30
:.
youngsters. The youngsters were in the parade this July 4th, along
with some of our workers working in the booths.
:: ... .....:..:
Work outdoors is continuing, flowers and grass cutting is in full
..
swing. There is work going on at the Memorial Park and at the
softball- -fields. -Work- will continue -on that -for- at least the -next --
-
couple weeks.
•
D-6 Planning & Zoning
L
9;w
KENAI CITY COUNCIL- Minutes
July-6, 1988
Page 23
Councilman Measles: The minutes are available for you. One
comment on all these commissions and committees, in looking at the
minutes of all these meetings, I'm seeing an awful lot of no
quorums present for the meetings, but in most cases there was a
hired secretary there that we're paying. In other cases there are
city employees that are taking comp time to come down to no avail.
City Clerk Ruotaala: We have noted that there have been a lot of
meetings that were not a quorum- We are attempting right now to
write a letter to all commissions and committees explaining that if
they are not going to attend to please let us know that day so we
can cancel because we do have to pay that secretary and the city
employees do have to show up.
Councilman Measles: it's not only that, but the inconvenience to
the other committees and commissions that do show up. In one case
there was one that did show up.
D-9 Misc- Comm/Comm
Councilwoman Swarner on Beautification: The minutes of the meeting
that was held yesterday here and discussion was held on the
"Welcome to Kenai" sign. There was some concern about where the
second sign was being proposed. Mayor Williams asked if
Councilwoman Swarner was referring to the moving of the present
sign to K-Beach Rd. The intent was to move the present sign to
Just this side of the turnout after you've made your turn just
before you cross the bridge. Councilwoman Swarner stated that the
concern was that it needed to be on K-beach where people would see
it before they turn, or on that hill at the Y. Mayor Williams
stated that the Committee needs to get around to that portion and
take a look at a site and get a recommendation back.
Councilwoman Swarner: There was also some concern about the
proposals given out about the lettering and the three drawings
presented. What the Committee finally agreed on was this design.
Do we know if these designs are available to use. Mayor Williams
stated that it may have to defer to the attorney, if in fact we pay
a remuneration by way of a prize for the winning design, and the
fact that she submitted several designs, does that mean the City
has the right to them. That question will have to be answered
later. In that discussion, the lady that prepared the winning
design prepared several, many of which the Bicentennial Commission
really liked. Councilwoman Swarner read the notation from the memo
from Janet Loper explaining that No. Odd indicated that she would
be happy to meet with the Council or Committee in order that the
designs meet all intended uses.
Councilwoman Swarner informed the Council that the Committee also
discussed visibility of the sign, colors and size and so on. Mayor
- Williams stated that the -whale issuehsd a lot of questions and -
should be held.
L
KENAI CITY COUNCIL- Minutes
July 6, 1988
Page 24
Councilwoman Swarner: There's concern about the banners that are
on the Spur, some of them are crunched together and sliding.
Public Works Director Kornelis stated that his department was not
involved in that, it would be beautification or Air Tek who .
actually hung the banners. Directed to City Manager - describe the
problem and we will remedy it. .Councilwoman Swarner described the
problem. Councilwoman Bailie; we need to come up with a new
bracket. Councilwoman Swarner: Can we come up with a prize for
the city employee that designs something that eliminates the
problem? City Manager Brighton: We can do anything that this
Council wants to do. We will try to remedy the problem.
Mayor Williams: I'll stop at item F-3, a letter from the Governor
regarding the P-s Orions. We had a P-3 Orion at the Air Show over
the July 4th program which was from Adak. Also.relativ-w_to the _
project, I've had two return correspondence from Commander of the
U.S. Navy, CINCPAC and a subordinate. Their comments are slowly
rolling through the beaurocratic maze. We will now move to G-1.
G OLD BUSINESS
G-1 Runway Lounge & Concord Restaurant
Mayor Williams noted the memo in the packet from Finance Director
Brown regarding the Airport Terminal Renovation. AT the last
meeting we said that we wanted to take an overall look at the cost
of the renovation, try to make a decision as to wait or go ahead
with RFPs for an operator for the restaurant and several other
questions.
Finance Director Brown: This was written at the request of Council
because of an extension to a leaae, is that correct. Mayor
Williams: It was to decide on an RFP for a long period of time, a
year to 18 months on the restaurant. It was thought if we went out
to RFP on the longer period of time, we had better not do any
construction.
Councilwoman Bailie: I am interested in hearing what happened to
the Runway Lounge and Concord. As of the last meeting we were held
in suspense, we were sure that maybe the next day it was going to
be closed down. City Attorney Rogers: We came to a partial
satisfactory, $13,700. Of that sum, after some negotiation it came
down to $10,000. We took a confession of judgement in the amount
of $3,774. We agreed not to execute, that in consideration of the
$10,000 paid and a promise to pay the additional $3700 under the
confession of judgement within a period of 30 days that we would
allow them to remain in possession while attempting to satisfy the
remaining $3700 in arrears. Assuming those checks cleared we were
going to check again today and I will assume they did. We
anticipate -that-- on- July- -3Oth_.of. this -year we.will_ then-_receVe the
remain $3700. The confession also says they will be current on any
- ------other _(inaudible So that problem, with the -month. the exception of the
$3700 has been resolved until the end of-- ur ear was
that we would end up going through the summer months with these
L
A
h �' .
KENAI CITY COUNCIL- Minutes
July 6, 19$$
Page 25
arrearages during peak season and going into the winter season with
substantial arrearages which happened in 1982 when I came on board
and the arreargges at that time were in excess of $30,000. As soon
as I filed eviction they filed bankruptcy which stayed my eviction
so we got up to $50,000 before the bankruptcy got through. At this
point, they remain in possession and will remain until we make
other arrangements.
Mayor Williams: The question before the Council, obviously they
are on a month to month tenancy and will continue until such time
as we terminate that tenancy is that correct and we can terminate
that tenancy by notice.
Airport Manager Ernst: I wanted to inform the Council that the FAA
has given us notice that -the remainder of their contingency - their
maintenance people will be moving out of the terminal, which is the
south end, downstairs, by the end of August.
Mayor Williams noted the tenants which have left the terminal, the
only tenant left would be the lounge. It would be an ideal time to
go ahead with the renovations if, in fact, you want to go ahead and
spend money with it. Airport Manager Ernst: Again, that was an
engineers estimate, we could get a better. price, I don't know.
Councilwoman O'Reilly: The airport lands fund of $3.3 million, are
we in danger of forfeiting any of that? Answer from Airport
Manager Ernst, no, that is a separate account. That is similar to
the fund balance for the City.
Councilwoman O'Reilly: I think we had this discussion sometime a
few months ago. To me the basic problem is the original estimate
which was a very informal one was kind of 'way off the mark. That
happens sometimes and it causes it to slide up a bid to get the
whole project out. If we put out a request for bit, I mean I have
no foggy idea what the bid is going to be, I don't know if any of
us do. Is it a terrible thing to get bids in and reject them all.
Airport Manager Ernst: I think that was the point, we wouldn't be
dealing fairly or honestly with the bidders that would go to the
time or trouble of doing that. I think if you are going to go to
bid you're going to have to award it. I don't know if you're going
to get it any cheaper, if those dollars are going to compute to
some type of return...
Mayor Williams: We're stuck in a situation here, there is no real
need to remodel the terminal on the basis of passenger movement and
service to the general public at this time. However, we are faced
with vacancies, in the upstairs, the tower, in the maintenance
area, we are faced with a condition of month to month contract with
_.._ .-the-restaurant and.bar. operator. It presents an opportune time to
remodel if we chose to do so. The question then becomes to whether
the remodel will enhance the terminal for future.
L
fr
LE
KENAI CITY COUNCIL- Minutes
July 6, 1988
Page 26
Councilman Measles: I don't think ink we'll have a better time to go
ahead with this thing. We don't have that many tenants down there
and the odds of finding tenants to that end of the terminal and
until something is done down there, pretty slim. The other thing
that concerns me is, if we put this off too long, we could do this
right now while the rest of the airport looks shiny and new and it I
won't look like a patch job. If we wait a few years then we look
like we have an airport with a half new and a half old. We should j
go ahead and do it then we can get into long term leases, RFP's,
everything.
Mayor Williams: What we would continue to do then would be to
continue the month to month arrangement with the present operators"""
of the restaurant until the construction begins. Airport Manager y
Ernst: I guess I would tend -to agree with Councilman Measles that, _ _-._- __..____
by doing the renovation you probably would get a more responsible
lessee of the restaurant and bar depending on whether you do it
separately. I have gotten several people who are interested in a
gift shop arrangement so I think there are people out there who are
interested. It may not be a viable situation but it certainly
would be an opportune time, if it is going to be vacated most of
the time anyway, then having a lessee who is less than viable in
their payments.
Mayor Williams asked if anything had been considered for the area
vacated by Penny's travel? Answer from Airport Manager Ernst, it
is tough to discuss anything because that area is so small. There
is no storage for stock. But again you would have to go out for
RFP so you are looking at the end of the season.
Mayor Williams: Do we have Council direction to have
administration go out for bid for three months.
MOTION:
Councilman Measles moved to have administration go out for bid,
seconded by Councilwoman Bailie.
Councilman McComsey: About the upstairs, it seems like its going
to be an awful lot of costs, is that really needed. I agree we
should do the airport, but I'm concerned about the return. Mayor
Williams described the plan. Councilman McComsey: But isn't there
supposed to be an elevator up there and something about exits. It
just seems like that is such a small area and there is such a small
return from the bar to spend that kind of money.
Councilwoman O'Reilly: I thought there was a revised plan
eliminating that outside walkway. Mayor Williams: I think he said
he had to keep some kind of exit from the top, eliminating some
others. Total savings in modification would be about $130,000.
The best thing -to do perhaps -would be to go mt._for_--
alternate. one alternate might be to have the other architect have
-a -look-at-it,--he may have_ setae cost -saving ideas.__ Lets go ahead
and have Kluge take a look at it.
,Y
-__-- -- _-__-- -_--- -a ' KENAI CITY COUNCIL- - Ni 11tes
'July 6, 1988
J Page 27
El('. _.. r; VOTE:
Councilwoman Bailie asked for unanimous consent. Motion passed.
H. NEW BUSIMS
H-1 Bills to be Paid, Bills to be Ratified
MOTION:
Councilman Measles moved for approval, seconded by Councilwoman
Bailie, requested unanimous consent
Councilman McComsey: Objection. What is garnishment. City
Manager Brighton: Those are employee garnishments. City Attorney
. Rogers: They are judgements against employees, the City then has
— --- — - - to -pay direct to the execution. City Manager Brighton: It comes
out of their paycheck. Councilman McComsey: Ok, that's no cost to
-- -- the City? Answer no.
VOTE:
Motion passed by unanimous consent.
H-2 Requisitions Exceeding $1,000
Councilwoman Swarner: I'd like the Beautification Committee to
take a look at the sign numbers to get their comments. Mayor
Williams: You are amending the requisitions over $1,000 by removing
the sign item. Councilwoman Swarner asked Parke & Roo Director
-L_ McGillivray for a delivery time for the sign, answer, Anchorage has
them in stock.
•. MOTION AMENDMENT:
Councilwoman Swarner moved to amend the requisitions over $1,000 by
removing the sign item, seconded by Councilman McComsey.
VOTE:
Motion passed unanimously
y: Mayor Williams asked about the h1gh plumbing bill, answer from
:.._-..: Librarian Deforest, they had to increase the line size.
Administrative Assistant Gerstlauer explained a purchase order
submitted to Alaska Title for Old -Towne renovation -should this be
ordered if roads are taken out? Mayor Williams suggested continuing
the litigation report, anticipating the bids we have been getting
the money is there. The only question is how long the report is
good for. City Attorney Rogers: We usually get them for a
specific purpose. As time drags on we can get an update.
MOTION:
i
Councilman-McComsey.mQved._to approve requisitions over $1,000 as
amended, seconded by Councilwoman Swarner.
-VOTES
Motion passed by unanimous consent
- - - - - -----fit --- ----_.
.-----'-'
�•�.
�
�i
i ,KENAI CITY COUNCIL- Minutes
'July 6, 1988
Page 28
H-5 Discussion - Waste Disposal Site - Ron Hansen
No action - Mr. Hansen not in attendance.
H-6 Discussion - Inlet Woods LID Assessment Notices
Mayor Williams: Involving the 88 lots, how would we be sure the 88
Iota do not have something other than what we know about. City
Attorney Rogers: We do get LID reports and number two, we try to
get package price. That assessment roll is the latest available
you're going to get from the City. Finance Director Brown: MSM
Partnership own 139 lots. All the assessments you have on the
lots, only 33 are owned by other individuals who are paying. Mayor
Williams: -We have 139 instead of 86 lots. Finance Director Brown:
Right. The reason mainly is because on the original assessment
roll, a lot of them at that time were owned by Inlet Woods
Development who turned them all back to MSM Partnership. Mayor
Williams: This was one of my primary concerns over individual LID
reports because we don't know what has happened in the interim.
City Attorney Rogers: Dana did get a ballpark figure.
Administrative Assistant Gerstlauer: it's probably roughly $2,000.
City Attorney Rogers: Because you've got common ownership its
easier for them to do. Mayor Williams: Would we receive title
insurance? City Attorney Rogers: yes, this is just litigation
report, a title report would be separate. There may be
considerable cost for title insurance. City Attorney Rogers: I
would have to consider for some time whether I would recommend that
or not, would it be in the City's interest. Councilman McComsey:
Would it be in the city's best interest to get title insurance.
City Attorney Rogers: We have the litigation report, without title
insurance you take some risk, but if you want to trade that off for
the cost of title insurance, what you're looking at is that span of
time betwoon the advancing to partnership and the present and that
window and what was filed. WE should be able to rely on recorded
record. The recorded record should be revealed as much by a
litigation report as it would by -title insurance. You're getting
the same thing in a litigation report except it doesn't insure.
Mayor Williams: How do we protect ourselves against further cost.
City Attorney Rogers: We can certainly get a price for title
insurance as well. Administrative Assistant Gerstlauer: I will
check but its usually about 1% of the total value.
Mayor Williams: Your discussion of the total assessments due,
$210,000, is that correct or does that apply to the 86 lots or 139.
Finance Director Brown: The figure is right for 139 lots or
$1,512.43 on each lot, $2.10,227.77 total. McLanes came up with the
same figures I did.
City Attorney Rogers: A further item for your consideration, in
the event -that _ litigation was brought to individual owners, the
question raised would be the total amount of -bonds, -but -that's -not--- - - -
due, the installment is due each year. so, arguably you're saying
they've defaulted so we're gong to accelerate. The defense to that
r �
• KINAI CITY COUNCIL Minutes
' July 6, 1988
Page 29
is you're'ionly entitled to each installment when it comes due, then
the question is, do you sue on individual installments or do you
wait to the and of the 20 year term for the whole thing. I think
that it would be ludicrous for a court to hold that he had to wait
to the end of the term, you're entitled as they become due which
brings -up a multiplicity perhaps of Council to sue or separate
suits each year. Mayor Williams: It is $210,000 times twenty
years? Answer yes.
City Attorney Rogers: I have not attempted to substantiate the
figures at this point. I need direction from Council and I have a
conflict that I have and its not with McLane, but George Bradford
whom I have a partnership with in Hawaii. He is out of the
partnership but has signed individually on the note.
Mayor Williams: Have we paid bond due July i? Answer from Finance
Director Brown: Bond principle is once a year and interest is twice
a year and we have been making payments right along. The Debt
Service Fund is part of the $650,000 in the hole at this time.
Mayor Williams: Although it is late, I would like to make a
comment about the Diary Queen situation. We are getting ready to
go out for kFP on the Dairy Queen that indicates that the present
appraised value of that property is considerably less than the
amount the City has invested in the property which indicates that
the City is going to be in ownership for some time. I don't know
how this will affect us on this property here, at what point we
could consider breaking even. I would request Council not act on
this tonight, but allow the attorney to straighten out his conflict
and let us know if we have to have some outside counseling. City
Attorney Rogers: I can't resolve the conflict, there is no doubt I
have the conflict. Mayor Williams: it will require outside
counsel then.
Councilman Measles: I don't think the City will ever recover,
because when you sell those lots this Council has decided we're not
going to assess for streets, water and sewer improvements, you are
never going to sell those lots and recover that. Mayor Williams:
That issue was covered when the Council entered into the LID
agreement with this contractor. Councilman Measles: If we take
these lots back though, we're going to sell them on an individual
lot basis or attempt to move the whole package to another
contractor. If you Bell it on an individual lot basis, and I go -
buy one and you say we're putting in free water and sewer and
streets to everybody else in town, you'll have a hard time
collecting assessments on those lots.
Mayor Williams: I read it a little bit different because the real
estate-_traneaction, stands- on it own. This situation was create_ d
some time back by developer who had good intentions. However,
Council now finds itself in a unique position. Surely the market
value of these lots ohovId- return -to aboutequal-to-at--least -the --- - - --- — -- -
assessment. If the City does not have any investment in the
property besides the assessment, they should be able to recover
k
-KENAI CITY COUNCIL- Minutes - L - -- -- -=- ---
'July 6, 1988
Page 30 ;
their money. These lots were selling for $22,000 each when the
market was there. The last time I checked if you had just paid the
assessments you could have them. But if we do decide to sell them
we surely could sell them for at least the assessment and that's
all we need to recover. Because of the market you may not sell
them for five years.
Councilman McComsey: if we do decide to sue and we sue for the -
year that means we can't take possession for twenty years, if we go
ahead and take these back we can go ahead and start selling them as
soon as we get them? City Attorney Rogers: Tentatively yes.
Councilman Mccomsey: But if we sue year by year we can't do
anything until the twenty years is up is that true? City Attorney
Rogers: Technically I think you may be in a position after each .'
judgement that you got annually to execute on lots for some value,
but if they have no value and they're not selling you cannot
recover. Then you hopefully would find other assets of the -
individual owner.
Mayor Williams: if we take the 130 lots in total back we will be
back in the land business. City Attorney Rogers: You might want
to explore whether or not you do have the improvements and
expenditures as represented and the litigation report may show
that. You will probably need to get an appraiser involved.
Councilman McComsey: Would it behoove us then to go ahead and get
this report started. City Attorney Rogers: I would advise you to
listen to your retained counsel.
Mayor Williams: I would like to put this item off until the next
meeting when we have retained council before us. City Attorney
Rogers: Can I have direction from Council on who to retain as
counselor. Mayor Williams suggested Dale Dolifka. By direction,
our City Attorney can contact him, present the facts to him and let
him be here at the next meeting. we need to move rather slowly
because we're not talking about the loss of $200,000, we're talking
about the loss of $2.5 million. We need to make sure the moves we
make are right.
City Attorney Rogers: I want to assure the Council that what I am
doing is declaring a conflict which is mandatory. I don't have the -
choice of determining whether or not I have a conflict, in a
situation like this where I have a business relationship in another
state with one of the former partners, the ethics are very clear.
Mayor Williams: Do you anticipate outside Counsel suggesting any
kind of executive session on this matter? City Attorney Rogers:
yes.
Finance Director Brown: The whole issue of whether or not you can
sue should be- reviewdd, the, -other -side of us taking -the land back -- - - - - --- - - ------ --
voluntarily, I don't feel like that is an issue that we have to
- --- give -serious consideration -to -until --here-is-such a --time -we ----- -
honestly believe, as a group, that that's marketable property.
What are we going to do with it when we get it back. That's not
1
KENAI CITY COUNCIL- Minutes
- ' inly 6, 1988
Page 31
going to pay the bonds off. I'm posing a question so that you
understand that I am not suggesting that We accept their offer to
tis{ke the property back at this time. I don't eee where it benefits
the City. Because I don't know how we'd market them. If they
couldn't give them away for just taking over the assessments, I do
not believe we can sell them on a contract. If we took the land
back the assessment issue would be null and void really, we'd be
trying the sell the property and collect on a note for
approximately the same amount as those assessments.
Mayo: Williams: Let me pose this to you, if we pay the $210,000
and just let it ride the way it is, if they sell the lots later,
the_$210,000 prorated becomes a lien against any sales that they
make, is that right? Answer yes. So if we sell them for less than
$12,000 each, then what? Finance Director Brown: If they sell
them for zero the assessments are still owing and that's what they
were trying to do apparently.
Councilwoman Swarner: Are they current on their property tax?
Finance Director Browns I have not checked. Councilwoman Swarner:
I would like that addressed too. Councilman McComsey: The longer
we let this ride the more chance we take of them putting a lien on
the property too. City Attorney Rogers: Your assessment liens
have priority. Councilman McComsey: I understand that but ...
City Attorney Rogers: Oh you mean other liens. Councilwoman
Swarner: Right. City Attorney Rogers: That's a possibility,
there are all kinds of things, if we took it back and held a
liquidation type sale or an executed sale and where are the prices
going to be, likely less than the assessment on them. Then what.
There are any number of scenarios.
Mayor Williams: Is it Council's wish to set this aside? Answer
yes.
I ADMINISTRATION REPORTS
I-1 Mayor
Mayor Williams: I would like to request Council's approval of
three new members of the Airport Commission, they have been
seriously lacking for some time now. I have been dragging my feet
for a while trying to decide on who to put on there. The first
name I would offer is Brian Shackleton. Mr. Shackleton is a chief
pilot for Kenai Air, the Southcentral crew. Mr. Shackleton has
been in the Kenai area for eleven years, his predecessor was also a
representative of Kenai Air.
The second name is Tom Kircher. Mr. Kircher has had six years of
experience working -out -of -Adak and -is employed as a -weather - -
observer at the tower and appears to know a great deal about the
-- - -- --- - -P-3 Orion operation. —
The third name is Bob Summers, formerly of the Veteran's Center.
Mr. Summers has a military background.
}
■
If • '1»i
i
KWAI CITY COUNCIL- Minuted ; -- - --- -
'July 6, 1988 f
Page 32
Councilman McComsey: Were there any other applicants? Mayor
Williams: yes. Councilwoman Bailie: Were any of them female?
Answer, there was one, Glorianna Harrison. Councilwoman Bailie:
Have any of the travel agencies been approached at all'? Answer no.
The primary reason for those I am lining up now is that I have been
giving a lot of thought to asking for a military affairs task
force. But then I may be confusing the issue by creating more
committees. My feeling was that if I could line up a group
strongly associated with the military in conjunction with airport.
Councilwoman Bailie: The only problem with that is I think
sometimes if we're looking at special interest we can bring in
experts from the outside to advise the committee but I don't think
we should aver lose eight of the fact that the main responsibility
of that airport is the transfer of people in and out and certainly
our travel agencies have an awful lot to do with the success of
that airport. I would like to see someone of that background serve
on that commission.
Mayor Williams: There is one item I want to discuss with you now.
Mr. Brighton and I had talked about sometime in the future the
airport runway is going to have to lengthen. In some of my
discussions with Senator Stevens, he has indicated that if we pay
for the overlay he would get money appropriated through Congress
for this project. It looks liko we are going to have to acquire
land north of the airport in order to do that. That land presently
is owned by the State of Alaska. In discussions with
Administration my suggestion was, the State of Alaska very rarely
contributes to the operation and maintenance of this airport.
Perhaps we could prevail upon them to assign that land to the City
of Kenai for airport operation purposes at no cost. Councilwoman
O'Reilly: are we still trading lands with them? Mayor Williams:
That's a definite no. Councilman McComsey: Wouldn't we give that
to a legislator? Mayor Williams: I am not sure how to approach
it. City Manager Brighton: The first step would be to write to
the Commissioner of the Dept. of Natural Resources and take their
response and go from there. Obviously we may have to induct
legislators in order to get something done as you well know, over
the past two or three days from your own experience.
Mayor Williams: I l,ring this to council's attention because it is
additional work that's going to have to be done by administration
and probably is not something that comes together easily. Shall we
pursue it. Councilman McComsey:- It won't hurt anything, a couple
letters to at least start it. Mayor Williams: Any objections?
Hearing none we will proceed.
1-2 City Manager
City Manager Brighton: We -do -anticipate, from -the -courts,
legal ownership of the Diary Queen prior to next Council meeting?
Yes- -There is-a-proposed--RM as far- as-the-Dair-y-Queen-is_ -- -- ------ - -- - — - -
concerned and I would hope that you can direct administration to go
ahead with that RFP. The minimums are 6% of the appraised value.
L
-- -
- -
•KENAI CITY COUNCIL- Minutes -
(�
.July 6, 1988
"
Page 33 `
At the same time, all of the personal property within that facility
f"
will be assumed by the lessee to maintain, repair, and keep
upgraded so that there is no expense to City. I anticipate +y "
;.
-the
there will be at least two or three proposers. However, if you
t"
would rather wait until the court has ultimately turned it over to "
us, that's fine. I only anticipate getting this on the productive
side of the scenario sooner.
City Attorney Rogers: As indicated in your written copy, there is
"
an option to purchase upon successful completion of 4 to 5 years of
-
lease. In this particular market we didn't want to sell it. We
-:
-
anticipate that in four years the market would improve and the sale - - -- -- ,
price would be more than it is now. I wanted to point out that
_ _ --
----:•__ _--
this is more than a lease, it is a lease with an option. There is
a six month window following the 4 to 5 years in which the lessee
:,..;
can purchase.
City Manager Brighton: what are the wishes of Council.
Councilwoman O'Reilly: I think we should go ahead. Councilman
..
.._-,
Measles: I would sa y go ahead too. I see no reason for waiting. ,
-._;..
City Manager Brighton: Let me just say this, the Council directs
g j Y s
f-
-
us, if prior to the next meeting, the court turns it over to us we
can immediately go out for RFP'e. Does that make sense? The
Council agreed. _
W
City Manager Brighton: On the basis of that, the Finance Director
has passed out a memo to you indicating that the State of Alaska is
requesting payment on two DQ notes and we need Council approval to
go ahead and pay off $152,044. The money has been appropriated for
that has it not? Finance Director: Yes and if you'll remember the
n
original amount was some $200,000 and a couple months ago we paid
$52,000 to stop the state from foreclosing. Now if we are going to
take possession, we need to pay this off. Mayor Williams: I think
originally Council wanted to pay off part of it and wanted these
brought back to us when they came due and here they are.
,t.
.i
MOTION:
'
Councilwoman O'Reilly moved that we pay the outstanding Dairy Queen °.
debt to the State of Alaska in the amount of $152,044.72, seconded
by Councilman McComsey.
3k -
Councilwoman Bailie asked for unanimous consent -
Motion passed
._...:;
City Attorney Rogers: You will note in that paragraph that
..... :`'
appraisal is going to be determined by certified Mal appraiser, -
chosen solely at the discretion of the City. City Manager
Mayor Williams discussed gas sales with the Council. After
—watching this -progress -now -for -the last -three-years- I- would--say-the - - - - --------- -- ---- --- - ---
'.
r�
safe bet would be to look at it as a major project for the next
.:
_ ..
decade.
i
p
`1
�•
i
tT
;f
1,
1
KENAI CITY COUNCIL- Minutes -
July 6, 1988
Page 34
b. City Manager Brighton: Ron Rainey for Homer Electric has
approached him on the basis that the City of Kenai is treating them
unfairly on the relocation situation. Mr. Rainey brings up a
couple of incidents such as the old Kenai system which was laid -
wrong and now we're forcing them to lay them right. I informed him
that I was not at liberty to make any concessions in that situation
and that the best I could do is relay his message to the Council
with the intent that the Council would make a decision on whether
or not they would be willing to sit down and have some discussion
with Board members of Homer Electric about this situation.
c. City Manager Brighton: Ashley Reed, if you intend to hire a
lobbyist we need to work on a contract for him and I would suggest
that we have him come down for the next Council meeting for him to
talk to with whatever questions you have and at that point
determine whether or not you're going to give him an additional
contract for next year. Is there any objection to him coming to
the next Council meeting?
city Attorney Rogers: I talked with Ashley Reed before he left and
he was hoping that Council would give authority to you to negotiate
a contract within some parameters prior to the next meeting if
Council wants him to serve next year. Then he -wants to sit down
with you, hopefully before in a work session setting to get your
priorities. My suggestion would be to authorize Bill to negotiate
a new contract. He very much wants to be reimbursed for expenses,
esp. if he's going to go back to DC to do some lobbying.
City Manager Brighton: Is he talking to you about reimbursable
expenses in Juneau? Yes.
Mayor Williams: Council is going to have to sit down and think
about priorities. I mentioned to Council on numerous occasions
that what we need to do is develop this five year plan, involving
federal dollars, fishing dollars, and tourist dollars. We need to
come to agreement on what amount of strength we need to apply to
these issues.
Councilwoman Swarners I have a problem of negotiating with Ashley
Reed before we get a final report from last year's session. I
realize that not all the bills have been taken care of but I would
like to see one thing completed before we start something else._
Mayor Williams: The last bill will be signed at the end of the
week. Councilwoman O'Reilly: when does his current contract
expire? Answer, June 30th.
MOTION:
Councilwoman Bailie moved to have administration renegotiate a
contract with -Ashler Reed and hope that we -can meet -with.. him. -then.
with direction in regards our five year plan, seconded by
- - - - - - - Councilman-McComsey. - - - -- - -- --
L
1' ,
KENAI CITY COUNCIL- Minutes
- , auly 6, 1988 -
Page 35
Councilwoman Bailie: I think when we decided initially to hire a
lobbyiyst I think we would be foolhardy to think we could do all
this on our own. I think that esp. Ashley Reed who has oareat
expertise in the economic development field could probably help us
in those areas also.
Councilman Mccomasy: I think that it should be negotiated before
we have a meeting with him so that we have a place to start.
Mayor Williams: I think what the Council needs to come to grips
with is the value of that contract and the question of reimbursable
expenses, the expenses to Washington DC, but not the expenses
related to Juneau. Councilman Measles: That was written into the
contract we had last year? Answer no. !'ity Manager Brighton: In
our budget we appropriated $24,000 for lobbyist person. If
negotiations exceed that there would have to be an additional
appropriation to cover anything over that. Councilman Measles: We
got less than half what we wanted out of Juneau.
City Manager Brighton: We're all disappni.nted with the outcome in
Juneau was in the last session, but if I personally were going to
hire a lobbyist, he would be the one I hire. He does have the
connections and he does have reason to be able to influence a great
number of those folks. For what we pay him we probably pay him
less than any of his other clients. If you want us to negotiate we
have to know the parameters, does that mean that if we call him and
expect him to go to Washington DC that's going to be covered under
that contract and if he's asking for expenses in Juneau in addition
to the $24,000 should that be in the contract.
Councilman Measles: I think the contract should just say for
lobbying efforts in Juneau. Anything that we may ask him to do in
Washington should be totally separate from the contract. City
Manager Brighton: On an as is or as come basis. I think he
wouldn't object to that.
Councilwoman Bailie: We didn't get a lot of money from Juneau last
year but I don't think we should lose sight of the fact of what his
influence has meant to the City of Kenai when it came to the
utility locate bill. I would urge that we renegotiate the
contract. Ask for unanimous consent.
Councilwoman Swarner: I object. I would like to get a written
report before the next meeting.
VOTE:
Motion passed unanimously by roll call vote.
City Manager Brighton: Betty Glick and Kristin Lambert are members
of the Alaska Municipal League Board. I have spoken to Rich
Underkofler to ask them to make a pitch to have the - n - -
Kenai/Soldotna in 1989. The Council needs to approve making a
- --- - -- request, --and knowing- that --Juneau -is -also- making the -request. - If- - ---
we're not successful at that we could ask for the 1990 AML. There
.a
U
L
c _
I
t,
r -KENAI CITY COUNCIL Minutes
"July 6, 1988
Page 36
appears to be enough moms between the two cities to accommodate
the convention. I am told Soldotna has 212 rooms including
breakfast, Kenai has 190. But there would be some expectations
from Kenai and Soldotna sort of some staffing for the convention,
transportation either provided by the hotels or other sources from
the Sports Center. Remember that there will be other meetings
also, attorneys, finance directors, clerks, and managers. Its the
Wednesday through Saturday that need the transportation. if the
Council desires I will talk to Rich to get these people to make the
proposal. The Board meets in August.
Councilwoman O'Reilly: Are we still slated for Fairbanks this
fall, answer yes. Councilwoman Bailie: I would urge us to go for
it. Who knows, by -then Kenai may have a facility that could handle
500 people. City Manager Brighton: If they make a proposal they
have to be specific on site. Councilwoman Swarner: I think its a
good idea too. However, the Soldotna seniors are meeting at the
Sports Arena is there room. Councilman Measles: I think if
Soldotna wants it they will find a place for them. Councilwoman
Bailie: How about Kenai Elementary. There is a gymnasium, it
would be perfect. Meals could be served there, it would hold 500
people easily. Mayor Williams: I would disagreed, I don't think
that gym would hold that many. Councilwoman Bailie: I would offer
this for consideration, use the Sports Arena for the banquet
facility but use the actual convention in Kenai. Mayor Williams:
Lets -look into this further. Councilman Measles: I don't think
there is any way that by 1989 there is any way that Kenai or
Soldotna can handle that convention alone. I have serious doubts
that it can be handled together. I think what John is saying is
you and Rich get together and look at all the pros and cons and
then come back and let the Council know.
1-2 City Attorney
a. City Attorney Rogers: The Boundary.Committee is meeting
regarding the annexation on July llth.
b. Relevant to HEA's request to the City, it would be more
appropriate for them to ask the court to rule on the pleadings that
are before it.
City Manager Brighton: I was not trying to get onto the attorneys
- - j1 -- turf here, who i think has advised you -appropriately, but I had the
=z.` request made and I passed it on to Council and I got no other
response back, I can now make a telephone call and indicate that
that information has been transmitted to the Council and I got no
feedback. I feel that if there is any way we can avoid a big
' hassle with Homer Electric on some of these fines which they may
really_ get upsQt about. this .thing if we get into some of this
L roadwork.
-- - -- - City Attorney Rogers; we -had an agreement -with HEA and the --start -- - - — - - of these proceedings was the agreement we had at that time is that
M
� KWAI CITY COUNCIL- Minutes
—. •July 6, 1988
Page 37
I-4 City Clerk
I-4 Clerk
Clerk Ruotsala spoke.
a. ;, There are 3 telephone polls to ratify:
1. Approve purchase order to install storage/office on top
of existing van on City Dock. 6-yes, 1-no, 1-not
available.
2. City furnish no more than $1,000 for fuel for
fly -in guests for 7-4 Air Show. 5-yes, 2-not available.
3. Approve purchase orders for parts to repair the 12-G
grader; -tenting of underground fuel storage tanks at
public safety building. 6- yes, 1-no.
b. The Comm/Comm secretary bids were opened June 30. Service
Ltd. is recommended by Administration.
MOTION: I
--- - �_
Councilwoman Bailie moved, seconded by Councilman McComeey, to
-
r
- -
approve the Service Ltd. bid for Comm/Comm sect'.
Motion passed unanimously by unanimous consent.
+, 1.
C. Absentee voting services will not be available in the Borough
There
offices or the Kenai City offices, due to budget cuts.
will still be an official for all districts in the City
Council chambers for the 2 weeks before the elections, for 3
hours per day. Also in the packet is a copy of the election
service agreement between the Clerk and the State. (Item I-4)
j_
d. The Katmai liquor license application was approved by ABC.
(item I-4)
I
1-5 Finance Director
None
I-6 Public Works Director
r
None
'' -`-:-
- - -- -- -
I-7 Airport Manager
None
J. DISCUSSION
1. Citizens
- °AV
a. Clarence Ladd: I speak for 90 senior citizens and 60 business
- - - _
- - - - people -regarding the work- shop -in the center.--All-I -hear- is- what- a - — -
council of five women say I wrote to Bill Brighton and got no
t
tom..
In
v
-
J
• j KENAI CITY COUNCIL- Minutes - - - - - - - -- ---_ -
-July
e 38 1988
Pag; ....
an4wer. Some Council on Aging people have been therefiveto six
years. Maybe it should befiooked into and get some men on it. Men
do not show up at meetings. Councilwoman Bailie: There are men on
Council. Clarence Ladd: Pat Porter is doing a lot of good over.
there and so is her assistant, but they do not do everything good.
We need privacy in her office.
Mayor Williams: I have six applications for Council on Aging, five are women.
t Michelle Martin
b. Polly Crawford: I will be going n eoldotna. l
will be coming here. Mayor Williams expressed appreciation for the
long hours you have spent here. You have done a good job. I
attend Borough Assembly in Fairbanks. They met in bar with .
reporter in tow. -. - - = -- ---
J-2 Council
a. Councilwoman O'Reilly: Request all of Council available go to
July 19th Borough Assembly meeting.
b. Mayor Williams: Issue regarding $100,000 to haul trash to
Soldotna with 30,000 lbs of sand. City Manager Brighton and Mayor
Williams will be attending a work shop.
MOTION:
Councilman Measles moved we should rescind Eagle Rock assessment
district and return the moneys, seconded by Councilwoman Bailie.
Councilman Measles: if we do for one we should do for all. Mayor
Williams: I have no objection.
Public Works Director: We were doing street improvements on gravel
road. A couple of people wanted to pave. We brought to Council,
they agreed. I wrote people. The majority said no. Eagle Rock
people said yes. Over 51% responded.
Mayor Williams: Bring back facts at July 20th meeting. Out of
general fund road improvement fund?
Councilman Measles: Get resolution to rescind assessment district
and ordinance appropriating
VOTE:
Motion passed unanimously by roll call vote.
C. Councilwoman Swarner: Two girls going to Japan, meet at
1II:00 A.M.,..July 7, 1988:
NT------= �.. -- - -- -- - -- -- --- --- - ----- - -- - -- - -- - -
-- K. ADJOURNME � i AVE?® D"T t"r'"?''d.'".
The meeting adjourned at 1:05 A.M. t