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HomeMy WebLinkAbout1988-10-19 Council MinutesAGENDA KENAI CITY COUNCIL - REGULAR MEETING OCTOBER 19, 1988 - 7:00 PM A. CALL . TO ORDER q v 1. Pledge of Allegiance ,. 2. Roll Call -..:. - 3. Certification of Election a. Swearing in of New Councilmembers ' b. Election of Vice Mayor 4. Agenda Approval 5. Consent Agenda *All items listed with an asterisk ( * ) are considered to be routine and non -controversial by the Council and will be approved by one motion. There will be no separate discussion of these items unless a Council member so requests, in -'- - -- - - which case the item will be removed from the ' Consent Agenda and considered in its normal sequence on the agenda as part of the General Orders. tl 1 1 .. it V B. 1 SCHEDULED PUBLIC COMMENT (10 Min.) ' - 1. Bill Kluge, Architect - Senior Center Building Expansion .: 2. Jim Doyle - Additional Lease Space Adjacent to Present Space - Gusty S/D $6 ' ,;.... C. PUBLIC HEARINGS Ordinance 1289-88 - Increasing Rev/Appns - Kenai ' Flats Wildlife Viewing Area - $180,000 :.; a. Substitute Ord. 1289-88 - 2. Ordinance 1290-88 - Amending Kenai Municipal Code, Title 21 - Applicants to Lease or Purchase City -Owned Lands Pay Costs of Surveying and Appraisal 3. Ordinance 1291-88 -Increasing Rev/Appns -Airport Terminal Renovation - $771,667 4. Ordinance 1292-88 - Increasing Rev/Appns -Boating - ' 'h Facility, Overtime and Operating Supplies - 4.t. 5. $41,000 Ordinance 1293-88 - Amending Kenai Municipal Code, Title 1 - Deputy or Temporary Clerk Receive ' Clerk I s -Pay . After -.10 _ Days_ Absence. _of-_ Clerk- :.....-....... 6. Ordinance 1294-88 - Amending Kenai Municipal Code, Ij ' - - --- - Title- 23 - Hourly- Rate- for Part Time Employees n - - Job Training - Senior Citizens- --- ---- - - - -- — --- - - 7. Ordinance 1296-88 - increasing Rev/Appns - Float Plane Basin - Development of FBO Lots - $87,438.48 a, ram, D. COMMISSION/COMMITTEE REPORTS 1. Council on Aging 2. Airport Commission - 3. Economic Development Commission 4. Harbor Commission 5. Library Commission -_ 6. Recreation Commission 7. Prancing & Zoning Commission . 8. Misc. Comm/Comm MINUTES .• 1. *Regular Meeting, Oct. 5, 1988 F. CORRESPONDENCE -' 1. *Alaska C&RA - Value of Taxable Real & Personal -------'-----r---::L . 2. Property in Kenai *Alaska Municipal League -Conference Location _ 3. *Rep. Navarre - Fish Tax ._ .. 4. Kenai Borough Caucus - Congregate Housing 5. *Son. Kerttula - Fish Tax 6. *Soldotna Chamber of Commerce - State Tourism Marketing Council Appointment ";.._... _ 0. OLD BUSINESS H. NEW BUSINESS .' 1. Bills to be Paid, Bills to be Ratified „.:.:'.., 2. Requisitions Exceeding $1,000 3. *Ordinance 1297-88 - Increasing Rev/Appns -Repair - of Police Vehicle - $3,800 4. *Ordinance 1298-86 - Amending Kenai Municipal . Code, Title 7 - Purchases without Competitive Bidding - Increase to $10,000 >:..... 5. Discussion - Application for Tidelands Lease - Royal Pacific Fisheries =Y` 6. Discussion - Application for Tidelands Lease - -- Larry -Powers _ _.._.._ 7. Discussion - Banner Across Spur .', . S. *dames of Chance & Skill - 9. Kenai Chamber of Commerce Assignment of Lease - Fishermans Packing to Inlet - Fisheries 10. Assignment of Lease -Peninsula Classics to Jackson & Koerber Airport Terminal- -; " •t . -. - - - - - - - - - t: ---ADM3iViSTRATION REPORTS --- ,t I - Mayor - 2. City Manager 3. Attorney tom' KENAI CITY COUNCIL -REGULAR MEETING OCTOBER 19, 1988 - 7:00 P.M. k KENAI CITY HALL " MAYOR JOHN J. WILLIAMS PRESIDING ' A. CALL TO ORDER- 1. Pledge of Allegiance 2. Roll Call Present: Mayor Williams, McComsey, Measles, Monfor, O'Reilly, r ` -. -- --.- Swarner Also Presents Smalley Absent: Bailie - 3. Certification of Election '' -- ---� - MOTION: Councilman Measles moved to certify the election, seconded by _ Councilwoman Swarner :, �. VOTE:- Motion passed by Unanimous Consent a. Swearing in of New Council members Incumbent Ray Measles and Hal Smalley were sworn in. e A proclamation was read acknowledging the work and years of . service of Sally Bailie. b. Election of Vice Mayor " MOTION: Councilwoman Monfor nominated Councilman Ray Measles, seconded by Councilwoman Swarner - - " VOTE: Motion passed by Unanimous Consent ',- 4. Agenda Approval Add: B-3 - Assignment of Lease for Booth & Zerhung to TENT Alaska ` C-3 - Two documents (1291-88 & Kluge material) to be separated Now entitled C-3 and C-3a ''- D-3 EDC minutes and memorandum D-4 Harbor, -minutes - - - - - -- -- - - - ---- - - -- -- — =''' D-5 Library minutes D-6 Memofrom_ParksE-Recreation ., H-5 & H-6 ' 1i ; :: 1 KENAI CITY COUNCIL MINUTES OCTOBER 19, 1988 PAGE 2 MOTION:` Councilwoman O'Reilly moved for approval of the amended agenda, seconded by Councilman Measles VOTE: Motion passed by Unanimous Consent 5. Consent Agenda MOTION: Councilman Measles moved approval of the Consent Agenda, seconded by Councilman McComsey VOTE: - Notion passed by Unanimous Consent B. SCHEDULED PUBLIC COMMENT (10 Minutes) 1. Bill Kluge, Architect - Senior Center Building Expansion Mr. Kluge passed out copies of drawings to the Council. Mr. Kluge: What this addition entails is; an addition to the dining room, provisions for dressing rooms for exercising and possibly a theater, storage facilities, and expanding the lounge. The plan includes expanding the solarium, providing storage for tables and chairs, and storage for the kitchen. The additional kitchen space allows for refrigerator and freezer. The plan is to keep the same elevation and roof line and use existing windows and doors to cut costs. The proposed addition extends beyond the present property line. The seniors intend to purchase additional property from the City. I recommend they extend the property line down to the creek. if they had this project then a volunteer project could be to build a board walk down to the beach. The estimate for the project is $450,000. Councilwoman Monfor: The expansion is wonderful but I would like to know what happened to the basement because I had understood that it would be cheaper. Mr. Kluge: We drew four different plans and originally I recommended against having a basement, basically because it is a seniors' building. They would have to have a younger person carry materials stored in the basement to the upper levels. In discussions with the building inspector is was decided that in excavating the basement, they would be sloughing the ground beneath the existing foundation. The area of the basement exceeding limits of the code for egress thus creating the need for two stairways. Th© end result -is -the cost of -the asemen and --- stairways and square footage would be about the same by doing it as _ - - -- - -- - ---this plan calls- or: - ---- -- -- - - -- - - --- - — ---- - City Manager: The land is in a green belt and it will have to be KENAI CITY COUNCIL - MINUTEB OCTOBER 19, 1988 PAGE 3 rezoned. What we did when we added the parking is perhaps creating an encroaching beyond what we paid for. Councilwomen Monfor: Can we buy the land and if so can we buy it at fair market value? Answer yes. Does that add to the $450,000. Mr. Kluge: Those lines are included. City Manager Brighton: Are we utilizing real estate for which we pay no lease or rent which we should be paying. The encroachment beyond the survey line is additional real estate plus a rezoning to the green belt. The drawing shows that it is a line which falls off. Mr. Kluge: Each line is one foot increments so at this distance, the property falls off 81. I would assume the value of this land is not great. - Councilwoman Monfor: Should we be going into this immediately, i.e. get the land, the rezoning, etc. City Manager Brighton: The Council needs to make a determination of whether or not they are going to pursue this, then administration can get everything together and present it to you. MOTION: Councilwoman Monfor moved for tentative approval of this proposal, administration to pursue the rezoning and additional cost for real estate, seconded by Councilwoman Swarner VOTE: Motion passed by Unanimous Consent 2. Jim Doyle - Additional Lease Space Adjacent to Present Space - Gusty S/D N6 Jim Doyle: I applied for this piece of property between Coral Street and Spruce Avenue, Gusty S/D 0. The activity has increased in this area, this will be the third application for additional property. it will strictly be a parking area for the trailers similar to the other two lots. We want to be closer to First Street with the exception of a 20' border of trees the Council has indicated a desire for. City Manager Brighton: Mr. Doyle is asking for a lease on Tract C, D, and the blank area which abuts First Street plus a 20' buffered tree zone between the lot and First Street. He has a lease on Gusty S/D N3 Tract A and Block 3 which is -across Coral Street. In addition, there may be some confusion because administration had anticipated his request would have been for Tracts C and B, we did not realize that he was asking for the blank space also. Councilwoman O'Reilly: We already approved C and D? Answer yes. MOTION: - - - -Councilwoman Monfor-moved-t"ave administration -go-ahead--and- order---- - - — - ----- survey and appraisal, including the 20' buffer zone, seconded by Councilwoman O'Reilly L r- KENAI CITY COUNCIL - MINUTES OCTOBER 19, 1988 PAGE 4 Mayor Williams: Do any of the Council feol that this should go. before Planning & Zoning for a review of that area relative to the changing of the surveyed lines. Councilwoman Monfor: I don't think so, especially since the buffer zone has been made a part of the lease. Mr. Doyle: If we can I would like to have the ground prepared prior to freeze up. VOTE: Motion passed by Unanimous Consent 3. Assignment of Lease - Booth/Zerhrung to TENT Alaska City Attorney Rogers: The one question for the Council would be, in this instance, is that the assignment is to a corporate entity and I have in all cases in the last six years, require individual sureties to sign individually on that document, or as you'll see later, a separate guarantee document, guaranteeing the debts of the corporation. The reason for that having been some unfortunate situations some years back that left the City holding the bag so to speak on various leases. However, under certain circumstances in the past, upon a demonstration by an applicant of financial solvency or worth of a particular corporation, the Council has waived that requirement. Mayor Williams: You will notice that the property in question is the old Windmill Restaurant location. Mrs. Crabaugh presented materials to the Council. Public Comment a. Steve Booth, 1049 Keystone Drive, Soldotna: I am one of the assignors to the lease. This has gone on for quite some time. We had been led to believe that it would handled in a different manner, this has been since mid September. All contacts has been verbal. Later on we found out that a letter of intent of assignment was required and a copy of the assignment. That was hand carried to the City on 10/5 and felt it was ample time for your packet. Just by a fluke yesterday, we found out that we weren't=going to be allowed to have it in the packet and we appreciate you letting us give it to you. I feel it's very important that the paperwork in this transaction, the paperwork has been held up because of this and actually we're anxious to move on. People are planning to increase their assets on the adjoining piece of property. _They- ore- _plsnning_an.expansion_of the local theater, I'm not sure what their position is at the moment, I can't speak for TENT -Alaska: but they are substantial. I think it would be in the city's best interest -to allow this to -move on. -Looking back -I find leases dating back to 176, and at that time there was no requirement for individuals to sign. -. ■ I . KENAI CITY COUNCIL - PINUTES OCTOBER 19, 1988 PAGE 5 City Attorney Rogers: Relative to conversations between the City of Kenai and people representing this entity, I would ask that Kim 3 Howard address the Council because I think she was the individual that spoke with someone on the other side making them aware of the requirements. , Administrative Assistant Howard: Mr. Booth did bring in his assignment of lease on 10/5 and I gave it to the city attorney's secretary and I received it back and the attorney did not approve of the lease assignment because it did not have an individual -- --- signatory on it. I informed Mr. Booth and was waiting for a response either with an assignment of lease with individual signatory or something that indicated that they wanted to do otherwise. City Manager Brighton: The assignee are the people who are - purchasing the real estate that is presently under the theater and they are the ones that are trying to assign the additional lot for the purpose of adding theaters to the existing structure. Councilwoman Monfor: Why can't they buy this if they already own the other property. City Attorney Rogers: My policy is I require ` individual signatory. If you're convinced of the financial worth or solvency of corporate entity as a result of them providing you ;_ . ,' . ` _ �• some information, that is your prerogative. it 0.1 Mayor Williams: Could this property be purchased rather than leased. City Manager Brighton: Technically the lessee of that J property at the present time, doesn't have the right to sell it. Councilwoman Monfor: Couldn't they turn the lease back to the City and the City sell it? City Manager Brighton: I don't know what the private transactions are. Councilwoman Monfor: Is that a "._ possibility? City Attorney Rogers: It could result in driving the price up since it would off set the bid if we turned it back. City Manager Brighton: They are only wanting to assign the lease, not necessarily to purchase at this point and I think the property is going to be used for parking space. To build additional theaters they are going to need additional parking space. Councilwoman Monfor: Does that mean the building that is there now is going to be taken down. City Manager Brighton: I'm sure it will be. - -- -.-. Councilwoman Monfor: I really understand where the attorney'19 :;. coming from and it has definitely saved us a number of times to have individual signatures. I just don't think that I would have a problem not having that in this situation. Councilwoman 8warners I disagree, I- think we -do need individual-- --------- ---- " -" "— e� signatures. ILL MOTION: Councilwoman Swarner moved that we follow the attorney's advise i i r KENAI CITY COUNCIL - MINUTES OCTOBER 19, 1988 PAGE 6 There was no second. Councilwoman O'Reilly: Has there been some resistance to individual signature. Answer no. City Attorney Rogers: It hasn't been specifically stated to me that there is other than that it was alluded to in a telephone call I had yesterday with Mr. Zerhung. Whether or not that was communicated to the Administrative Assistant I don't know. I have indicated that there is another way and that is a separate guarantee document that guarantees the debts of the corporation similar to Fisherman's -Packing. b. Roberta Crabaugh: We represent Orca Theaters. We have lived in the area since 1961 and I would like to read this letter. The letter, in short, presented objections to the transfer of leased lands based on the number of screens in what was termed an "over screened" area and felt that it would not be in the best interest of the community or the movie industry citing a formula which equates the number of screens a given population within a community can support. The distributors of product do not allow theaters within a 10 mile proximity to show the same movies and by adding more screens making a total of seven screens would not bring more product and would result in poorer service. City Attorney Rogers: I don't think that much of what was presented by Mrs. Crabaugh should be considered by Council as to the transfer of the lease. However, the information she provides further substantiates perhaps the need for individual signatories. We have never used the projected success of a given enterprise as criteria for purposes of transferring a lease. Mayor Williams: It would appear that there is credence to Councilwoman Swarner's desire for individual signatory to the lease. MOTION RESTATED: Councilwoman Swarner moved that the attorney proceed as is customary for getting individual signatures for leases, seconded by Councilman Smalley. Councilman Smalley: Is there any major difference between your guarantee document and the individual signatures. City Attorney Rogers: The major difference is when you have a very infirm corporate entity that has just come out of bankruptcy as is the case in the other instance. You're in fact mixing personal _. assets and corporate assets in order to "pierce the corporate veil". That's why the guarantee"dodument is used-sc the - individual - name isn't on the lease document. You're guaranteeing all the ---- --- ------------- - debts under -the lease.- TheF effect for -the city- -is -basically-t --- - --- - - -- - - same. ` I City Manager Brighton: Under a lease situation, other than the lot, what collateral do you need to collect on the lease. If you L._ KENAI CITY COUNCIL MINUTES OCTOBER 19, 1988 PAGE 7 assign this lease to another entity, you're only assigning the lease to the real estate, they don't owe us anything except to meet the obligation of the lease which is a monthly payment. City Attorney Rogers: Those monthly payments in some instances have accrued to the extent of $50,000 before we were able to got our property back out of the bankruptcy court. City Manager Brighton: Does that mean that if the present lessee were to go into bankruptcy we're protected from that situation? J Answer no. But we have more protection and more collateral then the corporate entity. often times there are two reasons for a corporation; one is the limited tax, and protection from liability should the corporation fail. Councilman McComsey: What you're saying is that if we lease land to a corporation and they took out bankruptcy then we can't do anything until the bankruptcy is settled. City Attorney Rogers: Yes, that is what has happened in the past. We have a severe problem with getting a timely release of the property that is in the possession of the bankruptcy court. In arguing the other side, and feels the city doesn't have any additional collateral I disagree. (portions of statement were inuadible) City Manager Brighton: As I understand what I'm told tonight is that we have no more protection for that lease under the existing circumstances than we have if it were assigned to the assignee who's intent is to help the economic situation by adding additional tax base and sales tax, perhaps even additional jobs and if we refuse without those signators we're right where we would be if we permitted the assignment because they don't have single signatore on the present lease. Mayor Williams: While the information is merely heresy and conjecture at this point, the implication that possibly Mr. Thomas P. Moyer is not going to really be liable to the situation if he sells out to another company anyway. , ta KENAI CITY COUNCIL - MINUTES OCTOBER 19, 1988 PAGE 8 C. PUBLIC HEARINGS 1. Ordinance 1289-88 - Increasing Rev/Appns - Kenai Flats Wildlife Viewing Area - $180,000 a Substitute Ordinance 1289-88 MOTION: t Councilman Measles moved to adopt Ordinance 1289-88, seconded by } Councilman McComsey MOTION AMENDMENT: Councilman Measles moved to amend by replacing it with substitute Ordinance 1289-88, seconded by Councilman Smalley Councilwoman Monfor: I feel we need to discuss Finance Director Brown's memo. I have a problem with this. I think it's a lot of money and if we don't have some kind of documentation and the memo is specific as to how this should be handled. Mayor Williams: The issue of the donated labor was discussed at length. PW Director Kornelis spoke of details of labor. Mr. Craycroft will be donating the shop space to do the prefabrication and can use the time clock facilities if they chose. PW Director Kornelis: I have a set of forms that workers can use for equipment time, labor time, etc. which needs to be well documented. We will be using the Davis-Becon.wage scale. We plan not to use cash funds until we have donated labor. We plan on using $20,000 of city labor and equipment which will be city crews and some railroad ties that are left over. Councilwoman O'Reilly: The city labor and equipment usage will equally be well documented. Answer yes. Finance Director Brown: We can use between 20-25% benofits and add that on to their actual rates of pay. We can't use a manual rate on Davis -Bacon on all employees. Councilman Smalley: Would all these precautions keep an auditor happy? Answer yes. The purpose of this was to lay out the ground work so that it will pass an auditor. Councilwoman O'Reilly: When do we expect this project to commence once we get the state funds. PW Director Kornelis: I have gone ahead and sent in the revised grant which then goes to Washington DC and we don't have an estimate on time for that, however, our plan is to start early spring or summer. Anything done prior to the grant will not be covered. Councilman NcComsey: - -Ts_. it. not true that_ some of -this -work_ is going to have to be done in the winter while the ground is frozen. Answer: _We_ere_hoping_ not. The Council reviewed the drawing. L L ■ KENAI CITY COUNCIL - MINUTES OCTOBER 19, 1988 PAGE 9 Mayor Williams: If things worked out quickly and we were able to get a go ahead late this fall, could we go ahead in a more expedient manner and move across the frozen ground and do it. PW Director Kornelis: Yes. I don't anticipate approval from the federal government too fast. Mayor Williams: I ask this because people at the state level have been pushing to move this project ahead. VOTE AMENDMENT: Motion passes unanimously by roll call vote VOTE MAIN MOTIONS Motion passes unanimously by roll call vote Additional It-em Mayor Williamss We have had an ongoing problem with recreational lands that were traded to the City some years ago, specifically, the lands adjacent to the armory. The City Manager and I discussed the fact that more correspondence from the state has been received on the subject. What is the possibility of taking our share of Birch Island and some surrounding ground for the trade, especially considering that the State Division of Parks & Outdoor Recreation to continue development of this viewing system and it is of no value to us. City Manager Brighton: We are going to have to do something with the Department of Natural Resources on the basis that in 1967 the City said that they would exchange like land of like value for what is now the Municipal Park and the City of Kenai has not followed through with that exchange. I would suggest that what the Mayor is suggesting is our best first shot. Further, the Department of Natural Resources is looking at locking that land away on the basis of the geese, ducks, and wildlife. Councilman McComsey: Do we have 80 acres on that side of the river? City Manager Brighton: Without the documents I cannot tell you. Councilman Smalley: Birch Island is probably about 10 itself. City Manager Brighton: We only have about a third. Mayor Williams: The state has an intention of developing some acreage further up into parks and recreation area later on. There may be some method we can work on then. I'm suggesting this as an interim method to say to the state, begin from here. The last letter we got was rather insistent. City Manager Brighton: We have to do something, short of giving them back the real estate and perhaps they may be the best ones to run that operation anyway. Councilman McComsey: Could we ask that you.get more information {' — _ --------- __- -- that we -can review. at�he-work -mosion.-- A M09-yes.-------- ------ - ------ --- r- UNAI CITY COUNCIL - MINUTES OCTOBER 19, 1988 PAGE 10 �� 2. Ordinance 1290-88 - Amending KMC, Title 21 - Applicants to j, Lease or Purchase City Owned Lands Pay Costs of Surveying and Appraisal -- _ ti _ ! MOTION: " Councilwoman Monfor moved for adoption of Ordinance 1290-88, seconded by Councilwoman Swarner Mayor Williams called for comments from the public, there were none. Councilman McComsey: Does this mean that on every piece of land that we will lease that the potential lessor is going to pay not - --"- -.-`-- ---;":7f only for the surveying but the appraisal also, answer yes. City Attorney Rogers: The other dealt with tidelands, this is all ' city lands. n-y ::,•' Councilman McComsey: Do you think this will stop a lot of interested individuals. I know that most companies that come in _:.,. are working on a small budget and this is about $7,000 to begin. City Attorney Rogers: I don't know how many parcels there are left that are going to require a survey. This will necessitate people sit down and sharpen their pencils before acquiring lands. On the other side, remember that the percentage down and the terms that _ --' the City gives are quite favorable. In some circumstances, it has been pretty substantial to survey a parcel of land just to make it available to the person. Under previous codes it was a nominal - - amount down to initiate the process and then they backed out. Mayor Williams: There are some costs associated with the appraisals ,. of city lands that run pretty high. Is it our intentions to apply this to all city lands including airport industrial lease lands. r,. What was the cost of that last survey that we looked at? Administrative Assistant Howard: It was lower than what you're saying, it was $700 and the FAA requires an MAI review the -, appraisal and that's an additional $400. - - Mayor Williams: I had thought that when the trucking company had that appraised it was a pretty good figure. Somewhere in the - -- - ----- - neighborhood of $1200 to get one of our industrial -lots appraised. it is not required that those lots get surveyed every time they're leased is it? Answer no. I think the only lands that need surveying at this time are the tidelands. Anyone who builds a building on a leased lot naturally has to have an as built drawn. City Attorney -Rogers: You had the Doyle lease tonight. Under this he would be required to pay for that survey if it's not closed before this ordinance -becomes effective: - =-=--->- = -- - -- -- - -- — - - - - - - -- -- - - — -- -- - - - - VOTES McComsey - no Measles - yes Monfor - yes .f ti KENAI CITY COUNCIL - MINUTES j �- -----------—;--_--'=-�:,; OCTOB::R 19, 1986 PAGE 11 O'Reilly - yes Swarner - yes Williams - yes Smalley - yes 3. Ordinance 1291-88 - Increasing Rev/Appns - Airport Terminal : %1 Renovation - $771,667 MOTION: i Councilman Measles moved for adoption of Ordinance 1291-88, seconded by Councilman McComsey Mayor Williams called for public comments, there were none. Councilwoman Monfor: I'm not going to vote for this ordinance. I think it's too much money and the time isn't right to spend that money. We're getting a lot for the money, it's just that I don't - feel comfortable putting the money out at this time. Councilman Smalley: When these figures first came out it was my understanding that they were less, why have they gone up. City - Manager Brighton: First, the figures were substantially more. Mayor Williams explained the project to the new Councilman. We are on our second engineering firm and the designs that were brought back to us did include a substantial reduction from the original cost. However, they included a $50,000 redesign fee. The Council has discussed this over the last several months and the Council finally concluded that the fact that we had the money available to us in the airport funds, the fact that our bicentennial is coming up, the fact that the times are right for getting the best - buildings for our money now, that i♦ was the desire of the Council to move with the entire project. By shutting down now we can dispense with a lot of problems with leases that are waiting with the restaurant and bar and the whole project should be completed by next tourist season. Councilwoman O'Reilly: I'm going to support this ordinance. I think it's an improvement that we've talked about for a period of time, it's needed, the money is there in airport funds, and it is a good time for building, and perhaps it will come in for considerably loss than this figure. Councilman McComsey: Those are my thoughts. This figure is not set and we're hoping that it will come in lower than this. VOTE: McComsey - yes Measles_- yea _--------- --- ---- -- ---- Monfor - no----- O'Reilly - yes -------------- --Swarner _ yes - - - --- - - - -- - -- - - Williams - yes Smalley - yes _ KENAI CITY COUNCIL - MINUTES ` OCTOBER 19, 1988 „ PAGE 12 3. Ordinance 1291-88 - Increasing Rev/Appns - Airport Terminal --- Renovation - $771,667 a. Proposal from Mr. Kluge The drawings were reviewed by the Council. pounail Receasad Bill Kluge: What we have before you is a proposal for the contract v: administrative services on the project and the services included revising the original documents, outlined on page two. We had to prepare an addendum to go with these documents for the restaurant and bar. It was also requested to include a roofing alternate. Because of the amounts of areas on the existing southern end of the airport being modified there will be quite a few holes and -- - = --- ----- penetrations in that southern end. The first renovation in 1981 there is a distinct break between the old and new addition and I recommend that that roof area be included. It would be more economical to do that at the same time. There are three phases of our work; the first portion would be any work done on the drawings. The second phase is the bidding phase. The third phase is the actual contract administration. This also - includes the inspections and we recommend three, one at the rough in stage, one at teservi service stage and one at the es ix month constructionfinal period stage. We are basing these Councilman McComsey: you said the price was set up on a six month construction, if it goes over six months would there be additional charges. Mr. Kluge: That's hard to say. After six months you would be into liquidated damages. Any additional services required of me after that time would be covered under the liquidated damages. Councilman McComsey: Not through the city but through the contractor? Mr. Kluge: That's what I would assume. PW Director Kornelis: The inspection contract sets the price at a not to exceed amount. The amount of hours that a person spends on that contract are based on the amount of construction time we put in the contract document. if the construction goes beyond that time, unless there are change orders or a prior agreement there are liquidated damages that are assessed against the contractor. If those liquidated damages are not spelled out to be used for that purposes, well we need to be sure it is in the contract.- We are one of the few municipalities that are noted to do a special section on damages, in fact we had $85,000 taken from the dock job. However, this is a not to exceed figure and in order for him to get any more money he has to get a written agreement with the city and - - he brings it to the Council. He will. keep track of his time in the field and will be billing us for -his time times -the .rates.- _.ere -- — set in this proposal and we will pay him at those quotes that he has -put in there. There -is -apossibility-than he still-, will no go over. — -KENAI CITY COUNCIL - MINUTES OCTOBER 19, 1988 ja PAGE 13 Mayor Williams: In your reimbursable you indicated a not to exceed sum of $4250 and on the back page under fee schedules it i.' calls for reimbursable on consultants costa, mechanical inspections, etc. are you comfortable that your costs will not exceed $4250. Mr. Kluge: I allowed eight hours for the engineers ' and they are located in Anchorage and it could be an eight hour • day, however, this will cover a possibility. included in that is the 10% handling fee. PW Director Kornelis: We write the contract for the total not to exceed amount and allow the architect to go over and under on individual accounts as long as the total not to exceed amount is not exceeded. - -- - _'_ -.— - - • MOTION: - - Councilman Measles moved to approve the proposal submitted by Kluge and Assoc. for inspection services to the airport terminal project for $46,667, seconded by Councilman Mccomsey VOTE: Motion passed by Unanimous Consent 4. Ordinance 1292-88 - Increasing Rev/Appne - Boating Facility, overtime and Operating Supoliee - $41.000 MOTION: Councilwoman Monfor moved to adopt Ordinance 1292-88, seconded by Councilman Measles Mayor Williams called for public comments, there were none. _.. ._.. _ -• VOTE: Motion passed unanimously by roll call vote S. ordinance 1293-88 - Amending Kenai Municipal Code, Title 1 - �, Deputy or Temporary Clerk Receive Clerk's Pay After 10 Days Absence of Clerk -_- I MOTION: [. Councilwoman Monfor moved for adoption of Ordinanc9 1293-88, seconded by Councilwoman Swarner Mayor Williams called for public comments, there were none. VOTE: [ Motion passed unanimously by roll call vote j 6. Ordinance 1294-88 - Amending KMC, Title 23 - Hourly Rate for Part Time A2loyees in Job Training -Senior Citizens MOTION: Councilwoman VI -Re -Illy -waved for adoption of Ordinance- 1294- - _ - - - ---- I seconded by Councilwoman Monfor KENAI CITY COUNCIL MINUTES - OCTOBER 19, 1988 PAGE 14 Mayor Williams called for public comments, there were none. -. VOTE: se unanimous) b roll call vote Motion passed y Y 7. Ordinance 1296-88 - Increasing Rev/Appne - Float Plane Basin - - Development of FBO Lots - 187,438.48 MOTION: Councilwoman Monfor moved for adoption of Ordinance 1296-88, seconded by Councilman Smalley Mayor Williams called for public comments, there were none. VOTE: Motion passed by roll call vote McComsey - yes Measles - yes Monfor - yes O'Reilly - yes - -- -. swarner - no Williams - yes Smalley - yes D. COMMISSION/COMMITTEE REPORTS 1. Council on Aging Councilwoman Swarner reported that tickets are available for the fashion show on 12/10. I represented the City for a volunteer breakfast last week. There were were about 30 volunteers and their spouses. i 2. Airport Commission Councilwoman O'Reilly was not at the last work session. Airport Manager Ernst reported on the joint Airport/EDC meeting. There was not a quorum from either commission present. However, they did discuss projects at the airport with the commissions and Mayor. Mayor Williams: I think it was a good chance for EDC to review the airport and the roll of the facility and the Airport Commission was able to learn what the EDC had on it's agenda for the future. 3. Economic Development Commission Mayor Williams reported on the joint meeting with the Airport Commission and the last meeting. There was a presentation from the EDD group and their relationship with the City and services -they — have available for us. The EDD group is now located at the Willow [in L KENAI CITY COUNCIL - MINUTES OCTOBER 19, 1988 - PAGE 15 Street Mall in, Kenai. Also reviewed in depth the detachment issue, several people from the Nikishka area attended. The minutes are available. A motion by Barry Thomson stated that the study be submitted to the Council and if more direction were needed, the Council should specify and a time frame established. The vote was 4 to l in favor with considerable discussion. It could best be summarized on page 5 paragraph 3. Mayor Williams asked for direction from the Council. Councilwoman Monfor: Why do we have to do anything? -Answer we- - don't. Councilwoman Monfor: I certainly think that's appropriate at this time. Mayor Williams referred to the memo from Chairman Vince O'Reilly which included a draft letter to the Kenai Natives Association and asks for Council approval prior to mailing it. MOTION: Councilwoman Monfor moved to direct Chairman Vince O'Reilly to send the letter, seconded by Councilman McComsey VOTE: Motion passed by Unanimous Consent 4. Harbor Commission Mayor Williams: Minutes are in your packet. I met with the Harbor Commission at their last meeting. There were some tidelands lease agreements that will be coming up. The response from the Corps on dredging of the river was that they did not feel it was necessary at this time. 5. Library Commission The minutes are available in the packet. No report. 6. Recreation Commission Minutes are available in the packet. A memo was -included which clarified the motions regarding the release of lands. Councilwoman Swarner: Question on minutes. Clerk will respond under her report. 7. Planning & Zoning Commission Councilman .Smalley: _ The minutes .are --not attachod,..however I can -- - -- -- - -- --- report that we had a work seasion and began work on the RV ordinance and we set another work session on December 14th. They will be reviewing the draft proposal from the EDC regar ng RV parks. Not necessarily that we will be doing something site KENAI CITY COUNCIL - MINUTES OCTOBER 19, 1988 PAGE 16 specific but rather that we can use it to help draft that ordinance. The second item is the bad and breakfast issue and we are going to have a work session November 4th with the current bed breakfast operators within the city and by that time they would have received a copy of the current code in Soldotna as a starting point. 4' 8. Misc. CommissionslCommittees None E. MINUTES 1. *Regular Meeting, Oct. 5, 1988 J F. CORRESPONDENCE 1. *Alaska C&RA Value of Taxable Real & Personal Property in Kenai 2. *Alaska Municipal League - Conference Location 3. *Rep. Navarre - Fish Tax 4. Kenai Borough Caucus Congregate Housing Mayor Williams referred to the resolution prepared for the Caucus at our request for inclusion and adoption at their next meeting. Mayor Williams asked for comments. Councilwoman O'Reilly asked for the date of the next meeting, answer, sometime prior to AML meeting which is the week of 11/15. S. *Senator. Kerttula - Fish Tax 6. *Soldotna Chamber of Commerce - State Tourism Marketing Council Appointment G. OLD BUSINESS None H. NEW BUSINESS 1. Bills to be Paid, Bills to -be Ratified MOTION: Councilwoman O'Reilly moved to pay the bills, seconded by Councilwoman Swarner VOTE: Motion passed by Unanimous Consent 2. Requisitions Exceeding-$1,000 A 7-7-4-- - - - - -- MOTION: Councilman Measles moved for approval, seconded by Councilwoman Monfor IT 4 -.-..-_ ___-_.___S„ KENAI CITY COUNCIL - MINUTES OCTOBER 19, 1988 PAGE 17 y Councilwoman Swarner: Is this the latest police car and will we be reimbursed? Answer no. VOTE: Motion passed by Unanimous Consent { A 4, .. 3. *Ordinance 1297-88 - Increasing Rev/Appns - Repair of Police Vehicle - $3,800 Consent Agenda item 4. *Ordinance 1298-88 - Amending Kenai Municipal Code, Title 7 - --� Purchases without Competitive Bidding ---Increase to $10,000 # Consent Agenda item 0 5. Discussion - Application for Tidelands Lease - Royal Pacific Fisheries_ MOTION: Councilwoman Monfor moved to approve the lease, seconded by Councilman McComsey Councilman Smalley: The desired length of lease is 30 years? Administrative Assistant Howard: These items both went to the Planning Commission and the Harbor Commission as a public hearing and were approved, however, the Harbor Commission recommended an escape clause because if there was a significant change in the river channel and the dock became an obstruction the lease could be terminated or the dock adjusted. on Mr. Powers' lease, he has not yet presented the City with a drawing stamped by an engineer and once he has done that our engineer will look at it and if approved, the Harbor Commission recommended that the condition be that if the river changed the dock would only go to the minus five foot tide level and no further. Mayor Williams: There was a considerable amount of discussion at = the Harbor Commission level regarding the length of the lease. I think everyone is in agreement that if the river channel adjusts itself drastically we're talking about taking out the Salamatof city docks as well and if that occurs I'm sure the Corps of Engineers will become deeply interested. Councilwoman Monfor: Mr. Dragseth is shaking his head no, I would like to know what it was. Marvin Dragseth: It was for moving the dock. You already gave me --- - -- - -a-permit-to_build- that -dock _right_where -it's Alt _and -prior_ to_1983 when the Corps issued the permit, we're not discussing where or how that dock's going to be built, you already gave me that. What we're discussing here is the cost of the lease. Because your code KENAI CITY COUNCIL - MINUTES OCTOBER 19, 1988 PAGE 18 says that water lease goes to the uplands lease. So there's no � discussion on whether that dock has to be pulled or not, that dock is in there for life. PW Director Kornelis: The Corps gave you that permit. Marvin Drageeth: The City too because the Corps couldn't give me a permit without every government agency in this world. PW Director Kornelis: Oh yes you do. Marvin Drageeth: Prior to 1983, the [", Corps issued me that permit in 1983 and they could not issue it without the City approval. At that time you didn't have to have the Borough approval, you don't now. PW Director Kornelis: We receive Corps -of -Engineers -permits and -- - ---T.---. they don't require our approval. They give us the notification of the permit someone is applying for and we have a right to object to it but we do not .... Marvin Drageeth: if you don't object, you approve. PW Director Kornelis: Not necessarily. Marvin Dragseth: Oh yes. PW Director Kornelis: We may not say anything, in fact it may have gone by us without any notification. Marvin Dragseth: Oh but it was advertised, there were fourteen agencies that have to approve, that. i t I d t d the } Councilwoman Monfor: My question is what shoo , un era an lease application, but what about this part that says, Royal j Pacific approved a 30 year lease with an escape clause. Mayor Williams: No, under the Royal Pacific request, it should say that the Harbor Commission approved the 30 year lease with an escape clause. Councilwoman Monfor: So Royal Pacific has not agreed to that and Mr. Powers has not agreed to his either. Larry Powers: Not for anything less than 55 years if I can do that. Marvin Dragseth: I have a 55 year lease on the uplands and the water lease should agree with that. Councilwoman Monfor: In the last 35 years, how much has that river changed? Mayor Williams: Let me bring back to the Council's attention, the conversation by the Harbor Commission. They were concerned that if the channel changed that the dock itself may obstruct the traffic. There were others who felt that if the channel changed to the point that the traffic were obstructed because of the dock, most certainly the down river dock, Salamatof would be in much more jeopardy because of the action. If it ever occurred, there definitely be something done by the Corps or some agency. I don't believe we have a concern myself, that channel shifts continuously. Councilman Smalley: I go back to my question, to approve a lease --- ---- --- --does -it- -not-- have- to-have-a--time-frame--am -it and what is -it. _Mayor Williams: We are not approving the lease only the lease application. A (ENAI CITY COUNCIL - MINUTES XTOBER 19, 1988 PAGE 19 City Attorney Rogers: I would need instructions from the Council relative to the duration of the lease. MOTION AMENDMENT: Councilwoman Monfor moved to amend the lease to include 55 years, ,With Consent of Second City Attorney Rogers: I don't think I have any information on the costs. Administrative Assistant Howard: We did appraisal of both parcels which came in at $20,000 and we charged 6% of that or $1200 per year with $60 tax. Councilwoman Monfor: Let me state my motion over, let me make it really clean. Mayor Williams: The motion is withdrawn with consent of second and we shall proceed. MOTION RESTATED: Councilwoman Monfor moved that we approve the lease request filling the desired length of lease for 55 years and that the cost will be $1200 per year plus tax at 6% of appraised value, seconded by Councilman Mccomsey Mayor Williams: Mr. Dragseth you are aware that policy is five year reappraisal adjustments. Councilman Smalley: is there anyone here that was at the Harbor Commission meeting. Can you speak to why they selected a 30 year lease instead of 55. Mayor Williams: One of the members of the commission is a retired Coast Guard gentleman and he is of course concerned about water ways and shifting channels. His concern is that the channel would shift towards the bank thus putting the dock in the channel obstructing traffic. Mr. Dragseth, with his engineer tried to present a case that that channel continually shifts and has not yet become an obstruction. I tend to agree and if that channel shifts sufficiently allowing that dock as an obstruction, then the Salamatof dock obstructing as well. I might also state that Mr. Nottingham from Nottingham and Peratrovich is with us if there are any questions. I went down to the river and visually inspected the operation and it looks like it will be first class. -- ----- VOTE: - Motion passed by Unanimous Consent a 6 Discussion - Application for Tidelands Leasa - Larry Powers MOTION: Councilwoman Monfor moved for approval of lease application under the same terms ae the -previous lease, 55 years,--6V-of -the appraisal r P price, reappraised every five years, seconded by Councilman -- -- --. - - - -- - - --Mccomsey L j iE KENAI CITY COUNCIL - 14INUTEs - OCTOBER 19, 1988 PAGE 20 Larry Powers: I have my Corps of Engineers permit right here and it has the drawing in it. It has passed through all. the channels the same as Mr. Dragseth's. The drawing is by Ron Rice, however, It doesn't have a seal on it. Perhaps; you can approve my lease here tonight. City Attorney Rogers: I think they're moving toward that, I'm just indicating for the record that there are some things that have to be done before we can proceed. What you have may very well be sufficient, we'll let the engineer do that, but he can do that tomorrow. Mayor Williams: This lease application will be contingent upon the administration approving the drawings and everything. VOTE: Motion passed by Unanimous Consent 7. Discussion - Banner Across spur Councilwoman Swarner: I envisioned a permanent place to hang banners such as between two utility poles, however, the utility poles are not directly across from each other on the Spur Highway. Councilwoman Monfor: We have the bicentennial coming up and I know that the high school has mentioned it for times like homecoming. There could be a number of times when we could use such a set up. Whatever it would be it would always be temporary. Mayor Williams: What we are suggesting to administration is that we seek out the cost of installing a pole or two poles for the purpose of supporting banners periodically. Councilwoman Swarner: I don't foresee needing any lighting, only the two poles. Councilman Smalley: With a pulley system. PW Director Kornelis: Do you have a location? Councilwoman Swarner: Can you come back with some information perhaps if it would be cheaper in one place than another. PW Director Kornelis: I would assume it would be the same anywhere as long as there were no problems. Councilwoman Monfor: It would have to be somewhere where there would be lights because if we had it in the darkest spot it would probably be gone. Councilman McComsey: I don't believe they are going to let you hook anything up to their street lights are they? PW Director Kornelis: I doubt it. Councilwoman Monfor: That's why we're talking about our own. But they could be close to it. Councilman Mccomsey: You're also going to have to get the state permission to - put something- in --their right-of-way.. Councilwomen -Monfor: .. If _they_ let us put our banners on the poles, why can't we do banners across __-_the-road?___PW Director Kornelis:_ _Because you're_ crossing their roadway. gc,. KENAI CITY COUNCIL - MINUTES - -- - ---- -- ' OCTOBER 19, 1988 PAGE 21 S. *Games of Chance & Skill - Kenai Chamber of Commerce Consent Agenda item .,"• p' 9. Assignment of Lease - Fisherman's Packing to Inlet Fisheries ' Councilwoman Monfor: After reading the first page, on the third paragraph, does that meet your concerns? -- ,•,.::: ;:. . ` °" ..t,: ;l City Attorney Rogers: I was concerned. My suggestion was that if _.. they were concerned about piercing the corporate veil, in lieu of ; signing the document, if we had a collateral agreement that says it unconditionally guarantees the assignment of lease I world ., .. recommend approval. This is just an alternative. their concern " .••-1 "".; r ' - - -' here is that they are taking something-Lhat is just -coming out of bankruptcy and they're afraia that people will be looking at the individual first, not the corporation. MOTION: Councilwoman Monfor moved for approval of this assignment of lease, seconded by Councilman Smalley :... _ .... .. VOTE: Motion passed by Unanimous Consent P 10. Assignment of Lease - Peninsula Classics to Jackson & Koerber Airport Terminal — _Terminal — - " Mayor Williams: Since the memo of October 14th indicated that Mr. Rogers did not have an opportunity to review the document is there anything to add. City Attorney Rogers: In talking with Mr. Jackson the assignment will result in more local control of the operation. Mr. Jackson '•• '' agreed. We have no objection. MOTION: ` Councilwoman Monfor moved to approve this assignment of lease, seconded by Councilwoman Swarner :_. _.......,.... VOTE: - Motion passed by Unanimous Consent _ .._.' ...............°::.':°�. I. ADMINISTRATION REPORTS :. 1 Mayor .. _,..„_..::.:.. Mayor Williams asked to take care of some appointments to commissions. a. For Planning Commission, Mr. Carl Glick and Mr. Duane Bannock. -Seeing -no-objection, -the-members are -seated.- __ _ _ - - - - - , lip- _-i°----- ------_-.- - - ._ _- - --- ' i. ..0 -- :------ --------: KENAI CITY COUNCIL - MINUTES OCTOBER 19, 1988 PAGE 22 b. For the Airport Commission - there may be some restructuring `{ of the Commission. I would like to presFmt Jan Bobek. O Councilwoman Monfor: I believe she lives outside the city. This AT seat will hold...r,. c. The Harbor Commission is attempting to work out a :. r. representative for the Kenai River Management board. :. d. Need an ad hoc member for Planning Commission - Councilman , Smalley 4' ��.:,,.. / •.t , 1, ; For Beautification Committee - Councilwoman Swarner it For Council on Aging - Councilwoman Swarner • � ,. '. ,', s,, For Harbor Commission -Councilman Measles- - -- — - -----_ —'� a.- Schedule work session -for CIP - 10/27 at 6:00 P.M. Requested : Clerk to order light dinner. f. Councilman Smalley asked if action would be taken on the student representative for Library Commission, Councilwoman Monfor: She lives outside the city. Mayor Williams: I have spoken with Mr. Phalen and suggested he appear before the Library Commission. Librarian DeForest: You should have received an amended application from Mr. Phalen stating that her address was within the city. Councilwoman Swarner: Her earlier application had a North i Kenai phone number listed as her home phone. Mayor Williams: The amended application lists a Kenai address and phone number. Councilwoman Monfor: The Library Commission indicated they do not wish to pursue it. We can discuss it at the next meeting. Mayor Williams: Mr. Phalen indicated that this student was interested in - pursuing a career in library work. Councilwoman Monfor suggested the student could volunteer at the library itself. g. Mayor Williams reported on a meeting with the Economic Recovery project in Anchorage. There is a draft statement that has been sent down and it should be in the packet. h. On the Fire Training Ground situation, the RFP's are to be back on 11/14, I have been asked to attend the meeting with the Board of i Regor_ts when they are reviewed. There will be a site survey group here soon. 1. -I have drafted a letter to UPS. In the last issue of the Wall Street Journal it reported that they are broadening their markets from Asia to Europe. They are concerned that their open facility in Seattle are not sufficiently suited to handle the traffic from Europe to Asia. There has been some consideration to a facility " r0milar to that ,F Federal Express. I have prepared a complete documentation report similar to that given to the Navy people. .- With_-Counall's permission- I .shall forward that to UPS for - - --- -- -_-- - --- - consideration of Kenai. I know that Anchorage and F'airbaeke have had some discussion with them on this subject. There was no - - - - - - .:1 - - objection from Council. ,,ash, _ - ....� •. • a' 77 r., KENAI CITY COUNCIL - MINUTES OCTOBER 19, 1988 PAGE 23 L 2. City Manaaer a. In the last packet there was an info item from the Department of Conservation dealing with the superfund law pertaining to the local emergency response plan asking you to participate. They also suggested that you consider having the Borough designated as such a district as opposed to the City. I would like you to direct me to at least to indicate to the Borough Mayor that the Council would like to see the Borough so designated. Is it the intention of the Council that I should indicate to the Borough Mayor that this ought to be their responsibility? Answer from Council yes. b. Charlie Parker was in with an HEA petition. They are holding a public hearing for a rate increase for Homer Electric in Anchorage. His petition requests that they hold -one in the Soldotna/Kenai area where a majority of their customers are. That petition is upstairs, if there is no objection I will put it on the bulletin board at the bottom of the stairs. c. I have become concerned about the Flight Service Station and have talked to -Dick Mathews about the transfer of people. He has indicated to me that there are seven new families in the area. Councilwoman Monfor: In Kenai? I don't know for sure. The real problem is with the technical equipment that they need and as soon as that is in place, it is their expectation that three to four families per quarter will be moving into the community. He volunteered another situation, airways maintenance will have five new employees within the Kenai area within the next twelve months that will be working from the City of Kenai. The hassle we went through about contracting for the weather data for the Flight Service Station has generated two more people in the Kenai area to cover the night time situation from the tower at a payroll cost of about $70,000. So not up to the schedule we were promised, they are aware and are doing the best they can. d. I will be out of town next week attending the City Manager's Convention in North Carolina. 3. Attorne a. There is a communication from Vic Krumm, who is the attorney for the Burnetts and I am obligated to bring this to your attention in view of the fact that he has offered to resolve the potential complaint of the Jones' who he says he also represents. It is my advise and suggestion that you not enter into negotiations along _the lines that he is suggesting, that I pursue the litigation. We have drafted an answer to the complaint that -he filed and we will be filing that. You have a copy of the complaint and if you have -any-questions,--get--in-touch with me.--- If it is your- desire -to-do — - - anything other than what I'm suggesting then we need to go into ar L t . . KENAI CITY COUNCIL - MINUTES �G OCTOBER 19, 1988 ". PAGE 24 executive session. If not, his offer to compromise lapses on 10/31. I do not see how you can deal with the .7ones claim without jeopardizing the Burnett claim. If there is no other direction from Council I will proceed with the litigation. Hearing no other instruction I will assume that is what Council desires. b. Regarding the Chulin matter, it is still dead. It has been dismissed until the federal question is resolved. Today we gave .A''.: authority to finance to refund the money to Malston and Braun because the title has cleared. I assume if and when the federal question, relative to Mr. Chulin is resolved and the personal _ - - `.;•�.` '_ representative is found, that case may be refiled. -- c. As a result of the presentation made at the last Council ?• ;'�� r�-, meeting regarding beautification and building permits, there is a memo on the state of the law that I finished today and passed out. ' 4. City Clerk a. I need the AML reservations by Friday. `' b. Commission/committee minutes - they were all in draft form, they were not edited at all. The secretary was directed to have +` r the minutes ready for this packet and she did a great job in -"'�= �• preparing draft copies. They will be corrected before being submitted to the various groups. It does not usually happen that three groups all want their minutes in the packet on such short notice. .".•` c. We are still having problems with commission/committee members not showing up for meetings. If you are an ad hoc member please remind them. We have sent out letters twice asking that they let us know ahead of time. We still have to pay the secretary if there is no quorum. It is happening often enough that it is creating a large sized problem. ! S. Finance Director None 6. Public Works Director - -; - — - - None 7. Airport Manager f}:� . ,,: ,• - ' - ... None 0 J.._ .. DISCUSSION - - ,4 1. Citizens a. Fr. Targonsky and the Council discussed the plowing of a right-of-way within private property, i.e. property belonging to the Russian Church at great length. - .4W '.n -i - -- -- -- -- - - „,. Y -. .: ,' i 1' ,..... ,. ... 0 . ; } .►:; - ' :.— --- �- --- - F } MINUTES KENAI CITY COUNCIL - OCTOAER 19, 1988 - - - - PAGE 25 Mayor Williams: Thank you for bringing this to our attention. The public works director will take care of his end of the problem and we'll have direction from administration. 2. Council Councilwoman Swarner: Last year we didn't get together as a group before Municipal League policy sessions and I believe it is important that we do. This will be added to the work session for 10/27. Councilman Comsey: What is the status of the Borough sand issue and are we about to receive a permit from the Corps to start putting that together. PW Director Kornelist We have the permit. We're working on the drawings now and don't anticipate action until spring. Councilman McComsey: They are going to let us put together the bid? Answer yes. b. Councilwoman Monfor: The City of Kodiak in conjunction with the Chamber of Commerce had a booth at the Roston Exposition. They had a lot of people there. They are a fishing community but so is the City of Kenai and down the road we may want to look into that. There were processors from Denmark.and Iceland which they did not have in Seattle. Councilman Smalley: Minneapolis and St. Paul area also has a large fishing industry. Councilwoman Monfor: We have so many processing plants here and we're building our cold storage plant and we want people to see that the market is here and not all in Seattle. c. Councilman Measles: Regarding the leaking roof at the airport, is it getting worse and what are -we doing about it. The other day while in the terminal I noticed at the baggage claim end that there were several pails sitting there that had several inches of water. Airport Manager Ernst: That happens when the wind blows, the rain is blown under the flashing at the top portion of the terminal building. As I understand that it will be taken care of when the renovation of the south end is done. The rest of the roofing that needs taking care of is a line item maintenance cost to be funded in next year's budget request. I don't foresee a big problem once the snow starts. Councilman Measles: Will you have that problem when the snow starts melting and pools on the roof. Airport Manager Ernst: That is only on windy, rainy days. Councilman Measles: I am concerned about someone tripping over a garbage pail full of water while they have both hands full of luggage and they're backing up. d. Councilman Smalley: I was pleased to serve with the Planning Commission and I am glad to be serving on the Council and I understand that -it gets a little more exciting than our meetings-. - I _ _ ......... .... KENAI CITY COUNCIL - MINUTES OCTOBER 19, 1988 PAGE 26 a. Mayor Williams: The word is out that Bechtel Corp. has been hired to do the design work on a $30 million fish plant operation in Anchorage. This has something that has been in the mill for quite a while. We may be able to work our project in along the while. f. Mayor Williams: I had a 4ibcussion with Waldo Coyle relative to the 31 acres of land and he has agreed that next week he is going to have the land reappraised so that we can make purchase arrangements. K. ADJOURNMENT There being no further business, the meeting was adjourned at 1005 P.M. 73 IV "UMICIC C'9 C 'Y CLE4 •-- KENAI CITY COUNCIL - MINUTES OCTOBER 19, 1988 PAGE 24 executive session. If not, his offer to compromise lapses on 10/31. I do not see how you can deal with the Jones claim without jeopardizing the Burnett claim. If there is no other direction from Council I will proceed with the litigation. Hearing no other instruction I will assume that is what Council desires. b. Regarding the Chulin matter, it is still dead. It has been dismissed until the federal question is resolved. Today we gave authority to finance to refund the money to Malston and Braun because the title has cleared. I assume if and when the federal question, relative to Mr. Chulin is resolved and the personal representative is found, that case may be refiled. c. As a result of the presentation made at the last Council meeting regarding beautification and building permits, there is a - memo on the state of the law that I finished today and passed out. 4. City Clerk a. I need the AML reservations by Friday. b. Commission/committee minutes - they were all in draft form, they were not edited at all. The secretary was directed to have the minutes ready for this packet and she did a great job in preparing draft copies. They will be corrected before being submitted to the various groups. It does not usually happen that three groups all want their minutes in the packet on such short notice. c. We are still having problems with commission/committee members not showing up for meetings. If you are an ad hoc member please remind them. We have sent out letters twice asking that they let us know ahead of time. We still have to pay the secretary if there is no quorum. It is happening often enough that it is creating a large sized problem. S. Finance Director None 6. Public Works Director None 7. Airnort_Manaaer None J. DISCUSSION 1. Citizens a. Fr. Targonsky: I bring this up because it is urgent. Before the next Council meeting we may have a snow fall perhaps several %j KENAI CITY COUNCIL -MINUTES- OCTOBER 19, 1988 PAGE 25 - feet deep and I need to have some statements confirmed whether true or false. I have learned from the restoration chairman of my church, Mr. Swede Foes who quotes that the City Manager has informed him that the City no longer will plow the private road on ' church property and I want to if that is true. City Manager , Brighton: I do not know who that person is. Fr. Targonsky: Then I would like to ask if there are any plans by the City not to plow the private road on the church property this year. They have plowed and graded it every year. City Manager Brighton: To my knowledge there has never been any statement, intent, or discussion about not plowing that -road. PW--- Director Kornelis: Now that you've brought it up, it is private , property. We did bring a grader.down on private property and do go down that road. City Manager Brighton: I'm only saying that there hasn't been any discussion but since you do bring it up that it is private property, perhaps we should take another look at it. Fr. Targonsky: I would like to know what will happen if the snow falls before your next meeting. WIll you have some advise from the City Attorney that you will not• plejw? That only has something to - - - - do with your insurance policy it -has nothing to do with the City the City can set any policy it wants. ik y KENAI CITY COUNCIL - MINUTES OCTOBER 19, 1988 PAGE 26 - - f; n City Attorney Rogers: I thank Fr. Targonsky for bringing it to the Council and my attention. I will look into the liability problems , because now that you've brought it to my attention it's something that can't ignore and I most certainly will addrese�the issue. I do fo7 !esee some problems. Fr. Targonsky: If that insurance company will not cover you because of that maybe a different company will. Yo do have a liability to the taxpayers for police and fire prot.ction, now if - the road is not plowed and the snow goes several feet high and ""'..... _ covers the fire hydrant, how will the fire department find it. City Attorney Rogers: We may be able to accommodate you by a contract of indemnity. I will look into that as well. Mayor Williams. May I direct a question to Chief Ivanoff, relative to the fire plug on private property, how do we access it. Chief ♦.'. Ivanoff answer that he was not -aware that it was on private property. City Attorney Rogers: In that case perhaps shouldn't be - accessing it, it may be a trespassing matter. Fr. Targoneky: - That's a utility problem, you have a utility easement. Councilwoman Monfor: Now that Fr. Targonsky has come before us and brought us this question, it brings up a lot of questions, all summer long I've had people calling me up asking why the roads in front of Fort Kenay which we use as a day care program, the roads are in atrocious shape, why, because it's private property. If that's the case how are we operating our services on that road r: getting people in and out of it and secondly with a fire hydrant isn't that some sort of a right-of-way. PW Director Kornelis: To start off with, we have a utility easement, and that does give us the right to go in and use the fire hydrant. As far as the road goes, we fought that and always have. We did know it was private property and I have not talked to our foreman or anybody about not plowing it, but I've often wondered about the liability there. We are on private property and if we hurt someone or something there is a problem. Mayor Williams: Now that Councilwoman Monfor has brought up the subject of the Forget -Me -Not folks, what is our liability regarding the senior program. Senior Director: We have the museum there too. City Attorney Rogers: I am going to be checking on that. PW Director Kornelis: There is a possibility that perhaps the church could grant us an easement or right-of-way through there, dedicated as a public right-of-way, then it could be used by the public and of course be maintained by the City. Fr. Targonsky: The church doesn't want to go to any expense whatsoever and dedicating a right-of-way would limit the possibility of what the church can do with it's own private property: -Councilwoman-i+tonfor: --You-are going to be --restrict !f - - �-- we're not going to do your roads. We won't be able to get in or - - — - - out -and what -about-- tho people -that- live --in there, -they won't be able to get in and out either. IN KENAI CITY COUNCIL - MINUTES OCTOBER 19, 1988 PAGE 27 Fr. Targonsky: They will have to fend for themselves or come back to you. You have been doing it and I can't see a change in policy. Councilwoman Monfor: Is it written in stone that the church would not be willing to work with the City. Should it be the City having to do it all and we can't come to some sort of compromise or agreement. Fr. Targonsky: The City already has lost two months in its lease of Fort Kenay for 55 years receiving no payments whatsoever, to be forgiven a $6,000 debt for assessments over twenty years ago. That was an equitable contract, it was signed but it was inequitable and the church doesn't want to cost it money. If you want to negotiate, we can negotiate quite a bit where it would be fair to everyone involved. Mayor Williams: Did you say the City hadn't paid the church their lease money in how long? Fr. Targonsky: The lease says there is no payment, the lease is on forgiving a $6,000 assessment, the church had no money to pay back over twenty years ago. So to forgive that debt the lease is rent free. City Manager Brighton: Were there buildings on the leased property at that time? Fr. Targonsky: I wasn't here back in 1967 when it was sign. Mayor Williams: Thank you for bringing this to our attention. The public works director will take care of his end of the problem and we'll have direction from administration. 2. Council Councilwoman Swarner: Last year we didn't get together as a group before Municipal League policy sessions -end I believe it is important that we do. This will be added to the work session for 10/27. Councilman McComsey: What is the status of the Borough sand issue and are we about to receive a permit from the Corps to start putting that together.. PW Director Kornelis: We have the permit. We're working on the drawings now and don't anticipate action until spring. Councilman McComsey: They are going to let us put together the bid? Answer yes. b. Councilwoman Monfor: The City of Kodiak in conjunction with the Chamber of Commerce had a booth at the Boston Exposition. They had a lot of people there. They are a fishing community but so is the City of Kenai and down the road we may want to look into that. There were processors from Denmark and Iceland which they did not have in Seattle. Councilman Smalley: Minneapolis and St. Paul area also has a large fishing industry. Councilwoman Monfor: We have so many processing plants here'and we're building -our -co ---------- - storage plant and we want people to see that the market is here and -- - not all in Seattle - - -- - - - - — - - - — - L