HomeMy WebLinkAbout1987-01-21 Council Minutesr�
AGENDA
KENAI CITY COUNCIL - REGULAR MEETING
JANUARY 21, 1987 - 7:00 PM
PLEDGE OF ALLEGIANCE
A. ROLL CALL
B.
C.
D.
1.
2.
Agenda Approval
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.
BERSONS PRESENT SCHEDULED TO BE HEARD (10 Min.)
1. Bob Schafer - Friendship Air - Insurance Minimum
Problems
PUBLIC HEARINGS
1. Ordinance 1133-86 - Amending Kenai Municipal Code -
New Townsite Historic Zone
2. Ordinance 1183-87 - Finding City -Owned Lands Not
Required for Public Purpose - Section 36
3. Ordinance 1184-87 - Amending Kenai Municipal Code -
Provide $500,000 Limit, Insurance Requirement
COMMISSION REPORTS
1. Planning & Zoning
2. Harbor Commission
3. Recreation Commission
4. Library Commission
E. MINUTES
1. *Regular Meeting, Jan. 7, 1987
F. CORRESPONDENCE
1.
2.
3.
L
*Sen. Stevens - Cook Inlet Terminus for
Yukon -Pacific Natural Gas
*E. Beistline, Mine Consultant - ANWR Oil & Gas
Development
City of Kodiak - Arizona Firm with Alaska Seafood
Co. Name
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4. *Gov. Cowper - Cook Inlet Terminus for
Yukon -Pacific Natural Gas
G. OLD BUSINESS
H. NEW BUSINESS
1. Bills to be Paid, Bills to be Ratified
2. Requisitions Exceeding $1,000
3. *Ordinance 1186-87 - Increasing Rev/Appns -
Physical Exam for New Employee, Senior Center -
$50
4. *Ordinance 1187-87 - Increasing Rev/Appns - State
Grant and Donations, Library - $3,383
5. *Ordinance 1188-87 - Amending Kenai Municipal
Code - Zoning Code - Encroachment Permits
6.
7.
8.
9.
10.
11.
*Ordinance 1189-87 - Amending Kenai Municipal
Code - Landscape/Site Plan
*Games of Chance &Skill - Elks Lodge #2425
*Games of Chance & Skill - AARP
j
Acceptance of Corporate Signatories to Lease - ERA
3S
Disc. - Golf Course Lease
Disc. - Kenai Borough Resource Development
Commission - Appointment of City Representative
`-r`•'`"°" erg
I. ADMINISTRATION REPORTS
1.
City Manager
2.
Attorney
3.
Mayor
4.
City Clerk
5.
Finance Director
6.
Public Works Director
7.
Airport Manager
J. PERSONS PRESENT NOT SCHEDULED TO BE HEARD (5 Min.)
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KENAI CITY COUNCIL, REGULAR MEETING, MINUTES
JANUARY 21, 1987, 7:00 PM
KENAI CITY HALL
MAYOR JOHN J. WILLIA14S PRESIDING
PLEDGE OF ALLEGIANCE
A. ROLL CALL
Present: John Williams, Tom Ackerly, Sally Bailie, Art
McComsey, Ray Measles, John Wise
Absent: Chris Monfor (excused)
A-1 Agenda Approval
a. Mayor Williams asked that item B-1 (John Sims,
Usibelli Coal) be added.
b. Mayor Williams asked that Bob Schafer, Friendship
Air, be changed from B-1 to B-2.
C. Mayor Williams asked that item B-3 (Gary Martin,
Marco Vending) be added.
d. Mayor Williams asked that item H-9 (ERA) be
changed to item B-4.
e. Mayor Williams noted he will be requesting tabling
of item C-1 (Ord. 1133-86)
f. Mayor Williams asked that item C-4 be added (Res.
87-5 distributed this date).
g. Mayor Williams noted 2 hand-outs distributed this
date for item H-10 (Golf Course Lease)
h. Mayor Williams noted he will be discussing the
Kenai Borough Caucus under Mayor's Report (I-3).
MOTION:
Councilman Ackerly moved, seconded by Councilman Wise,
to approve the agenda as amended.
Motion passed by unanimous consent.
A-2 Consent Agenda
MOTION:
Councilman Ackerly moved, seconded by Councilman Wise,
to approve the Consent Agenda as submitted.
Motion passed by unanimous consent.
B. PERSONS PRESENT SCHEDULED TO BE HEARD
B-1 John Sims, Usibelli Coal - Power Generation
Mr. Sims explained he had spoken at the Kenai Peninsula
Caucus Jan. 17. They view the Bradley Lake project as
not good. Mr. Sims reviewed a letter he had sent to
the Legislature. He explained, he is president of the
Alaska Coal Assn., consisting of Usibelli, Diamond,
Mobile, Rocky Mountain Energy and others. The Railbelt
Energy fund has 8282 Million, if the upgrade
is done, it will cost $200 Million. $82 Million would
not be sufficient to complete Bradley Lake. If Bradley
Lake is the economic star, it should have further
analysis. without State subsidy, is it feasible?
Would the rates attract customers? It is propped up by
massive State subsidy we cannot afford at this time.
This type of State involvement is detrimental to the
coal industry. The coal industry has a vital role to
serve in this State far into the future to energize the
State. Coal is an abundant resource to export to the
Pacific Rim countries. They have exported from Seward.
This year 100,000 to 150, 000 metric tons to Taiwan. They have had
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KENAI CITY COUNCIL
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Page 2
serious inquiries from Japan. These things are
happening in a depressed market. They have Alaska
resources and Alaska entrepreneurs serving the overseas
market. Yet there seems to be strong adverse
projections against coal in the State. We relate with
exporting but not to energize our own State. Part of
the blame is Alaska Power Authority, they lean on hydro
electric development. He is pursuing the concept that
if we participate in overseas markets we have to have a
strong commitment to coal. All the rival countries
have a strong domestic commitment. Alaska has 40% of
the entire nation's resource. A lot is in the Brooks
Range, a lot on the railroad. Alaska has 2/10 of 1% of
the nation's total produced. The coal industry does
not welcome State subsidy. The feel they can proceed
with state of the art at Healy which can and would
supply power at competitive rates through the rail
belt. Another exciting prospect is using Alaska coal
up -graded product. Alaska coal has a low heat quality,
the new technology involves drying and produces a
stable product. We end up with a dryer product and
extremely low sulfur content. It will have a premium
price. They would use that power plant for power and
use the steam in the coal processing facility. The
horizons for Alaska coal are unbounded if we use that.
This will take a minimum of 8 years to achieve. There
will be opportunities in the 1990's for 150-200
megawatts as legitimate increments in the rail belt if
they develop Diamond and Beluga. The cost of that with
state of the art technology and environmental
restrictions is $1,500 per installed kilowatt, or $225
Million. That is three times the available power
output of Bradley Lake. Bradley Lake is dependent on
State grant and subsidy. This would be a consortium of
the private sector. Councilman Wise noted Usibelli has
quality coal that is developable, they have the edge
over Beluga and Mat -Su. Mr. Sims replied, Usibelli's
long term tenure in the international market is more
tenuous should they be brought on line. They would
have a transportation problem, Beluga would not.
Usibelli's advantage is their property and equipment is
amortized, the capacity is in place. They can purchase
850,000 metric tons per year with present equipment.
He noted, coal mining is cost driven, not market
driven. The cost to produce is important. Councilman
McComsey asked how many people in Healy compared to
Bradley Lake? Mr. Sims replied Bradley Lake is an
attractive, short-lived construction bubble, after
which there is not much people -involvement. With coal
there would be about 80 permanent year round jobs for
the power plant. There would be more in the operating
staff. Healy was cited as having the highest per
capita income in the State on income tax returns. They
can deliver coal to the Railbelt at competitive prices.
Councilwoman Bailie asked if this was discussed at the
Bradley Lake hearings. Mr. Sims replied, this was not
discussed during the spending boom. He has responded
to many letters regarding Susitna. The Power Authority
was told they had not analyzed alternatives. He told
them of the adverse reactions to coal but has not had a
reply. He arranged a meeting with the Power Authority,
but was stood up. Councilman Ackerly asked about the
deliverable cost. Mr. Sims replied Bradley Lake will
depend on a subsidy. Without a subsidy the cost will
be intolerable. Councilman Ackerly said he would like
assurances that this would go ahead if Bradley Lake did
not go. Mr. Sims replied, if Bradley Lake did not go,
it would be a consortium within the private sector.
Regarding a market, Alaska Power Authority projects
KENAI CITY COUNCIL
Tar��tigry 2.1. 1987
Page 3
1.6% annual growth through the year 2000. They will
need 750 megawatts of new power generation within the
railbelt. He questions that, for the past 20 years the
demand has been 9%-10%. He estimates 1.4% growth over
the next 25 years. Australia is an example. In 1972
they exported 200,000 metric tons of coal, in 1986 the
figure was 48 Million metric tons. More than 50% was
to Japan. The Pacific Rim countries want diverse
sources. We are politically stable and have easy
transportation. Even withoct the new technology, the
attraction of coal is still there. The tests were done
in Montana, the next step is to secure matching funds
from ,70E for commercial tests. Mayor Williams asked
that Mr. Sims keep the City informed.
B-2 Bob Schafer - Friendship Air - Insurance Minimum
Problems
Mr. Schafer explained he is requesting relaxation for
30 days of the current insurance requirements to allow
them into the Kenai airport. They have a turbo -power
AC-3. They have $400,000 per seat, $8 Million cap.
The City requires $1 Million per seat. He introduced
Ken Sandy of Corroon & Black Insurance. He added, it
is not their intent to circumvent, they are willing to
meet these requirements. They have a time delay, but
hope to have it fixed within 30 days. Mr. Sandy
explained the London insurance market. It is not one
entity, there are over 200 syndicates in Lloyds. With
them are 100-150 private companies. Friendship Air
policy goes from May to May, it has to be cancelled.
The London broker has been working 2-1/2 weeks now.
There are 42 players in it now, they expect 50 when
they are done. The broker has to deal with each
underwriter. It will cost Friendship Air $30,000.
Atty. Rogers explained, the City may not be the final
determining factor. ERA and SouthCentral have met the
requirements. We would not be treating all carriers
the same. Also, the City has found the required
insurance to be the correct amount. Assuming the City
granted the concession, if there is a catastrophe,
there could be less than deemed sufficient.
Councilwoman Bailie noted the memo from Airport Manager
Ernst. Anchorage has the same as Kenai. Even if Kenai
relaxed their requirements, would they have a problem
in Anchorage? Mr. Schafer replied, they don't have the
same requirements in Anchorage. They reduced the
insurance on aircraft going to Kenai. Juneau, Kenai
and two others have this requirement. Airport Manager
Ernst explained, Anchorage has two different systems,
different amounts with different weights. It is still
$1 Million per seat with $10 Million cap.
Jack Birmingham, ERA Alaska. There are two issues. 1)
Proper protection for the City if the City had the only
"deep pocket." 2) Attempt to find proper balance that
would protect the passengers. $1 Million per seat was
accepted. Atty. Rogers asked if ERA policy was written
year to year. Mr. Birmingham replied, in most
instances they have a higher amount. Atty. Rogers
asked if he would be willing to lessen theirs if these
people were accommodated. Mr. Birmingham replied no,
they could not and would not.
Vern Lofstedt, SouthCentral Air. He noted the City of
Soldotna's experience with accidents. The City has
spent $300,000 in attorney fees defending the case. He
is involved because of "deep pockets." He suggested
Kenai contact their insurance agent regarding lowering
V
KENAI CITY COUNCIL
V Q..MY�i• ')1 100
Page 4
the rater. It will affect the rates. An accident that
took place three years ago with no serious injuries
recently had a $1.2 Million settlement.
Mayor Williams said Council would welcome Friendship
Air into the local market. But is is Council duty to
serve equally, , This cannot be tampered with to
accommodate certain people. There is a concern for
catastrophe during that period. He did not think it
was possible at this time to offer any change or
satisfaction to accommodate.
Council agreed with the statement.
B-3 Gary Martin - Marco Vending - Pepsi in Airport
At the time he submitted the letter requesting this, he
was unable to be here (Dec. 17, 1987). He asked for
reconsideration of the Council decision. They have
machines ready to put in with a bill devaluing device.
There is plenty of room for the machine. They can
generate money for the City leasing floor space.
Councilman Ackerly explained he told Mr. Martin to come
to Council to explain his request. Airport Manager
Ernst explained at the time the request was brought to
Council an individual wanted a concession stand in the
airport. Council did not want any further competition
in the airport. He recommended waiting for remodeling,
Council had agreed. He sent a letter to Mr. Martin at
the same time. Councilman Ackerly said he has concern
regarding limiting competition and looking at this as a
closed entity. There is room to accommodate but you
limit income. Councilman Measles said when we did the
renovation on the terminal we set up guidelines. At
that time it was Council feeling we would limit to one
of each type. We solicited RFP's and one was selected.
If one leaves, there would be room under the guidelines
to solicit RFP's. Otherwise we end up with a mess in
the terminal.
Council agreed to follow the Dec. 17, 1987 decision and
not allow additional machines.
B-4 Acceptance of Corporate Signatories to Lease - ERA
Atty. Rogers explained Council has previously deemed a
10K form appropriate. These people are asking for
relief of the requirement of -corporate signatures.
MOTION:
Councilman Wise moved, seconded by Councilwoman Bailie,
to approve the request.
Motion passed by unanimous consent.
C. PUBLIC HEARINGS
C-1 Ord. 1133-86 - Amending KMC - New Townsite Historic
Zone
Mayor Williams explained he has found mechanical errors
in the ordinance. He also suggested basic general
boundary information in the ordinance.
MOTION, Table:
Councilman Ackerly moved, seconded by Councilman Wise,
to table the ordinance.
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KENAI CITY COUNCIL
January 21, 1967
Page 5
VOTE, Table:
Motion passed by unanimous consent.
C-2 Ord. 1183-87 - Finding City -Owned Lands not Required
for Public Purpose - Section 36
MOTION:
Councilman Measles moved, seconded by Councilwoman
Bailie, to adopt the ordinance.
MOTION, Amendment:
Councilman wise moved, seconded by Councilwoman Bailie,
to amend the ordinance to add section 3: Sale should
include the right of first refusal a preference of Dave
Brown as per KMC 22.05.040 (6) M .
Atty. Rogers asked if Council recalled his discussion
regarding this at the Jan. 7 meeting.
There was no public comment.
VOTE, Amendment (Passed):
Yes: Williams, Bailie, McComsey, Measles, Wise
No: Ackerly
VOTE, Main Motion as Amended:
Motion passed unanimously by roll call vote.
C-3 Ord. 1184-87 - Amending KMC - Provide $500,000 Limit,
Insurance Requirement
MOTION:
Councilman Measles moved, seconded by Councilwoman
Bailie, to adopt the ordinance.
There was no public comment.
r� Motion passed unanimously by roll call vote.
C-4 Res. 87-5 - Supporting Kenai Peninsula Community
College
Mayor Williams explained community colleges through out
the State are going through re -structuring of the
entire system. There is a tremendous amount of
controversy regarding autonomous use.
MOTION:
Councilman Measles moved, seconded by Councilwoman
Bailie, to adopt the resolution.
There was no public comment.
MOTION, Amendment:
Councilman Measles moved, seconded by Councilman wise
to amend the resolution to read: the NOW THEREFORE
paragraph, line 2, after the words "that the", add
"University of." Line 3, after the words "community
college to", add "and."
KENAI CITY COUNCIL
1Q07
Page 6
Councilwoman Bailie asked if communities are allowed to
retain, and if they will have to support. Also, has
Soldotna been asked to support this? Mayor Williams
replied, the cost will be by the State, not the
Borough. Soldotna has been asked. some community
colleges feel they are not structured the same as
others and should not be treated the same. KPCC is one
of the most efficient in the State and the largest -
next to Anchorage. Councilwoman Bailie suggested we
should bring out the positive points of the college.
MOTION, Addition:
Councilman Measles, with consent of second, added to
the NOW THEREFORE paragraph: line 3, delete the words
"each community" and add "Kenai Peninsula Community -
Line 4 & 5, delete the words "a community college."
VOTE, Amendment:
Motion passed unanimously by roll call vote.
MOTION, Amendment:
Councilman Ackerly moved, seconded by Councilwoman
Bailie, to add another "WHEREAS" as appropriate
covering economic factors, student enrollment and
uniqueness.
VOTE, Amendment:
Motion passed by unanimous consent.
VOTE, Main Motion as Amended:
Motion passed unanimously by roll call vote.
Councilman Wise asked that copies be sent to the
Legislative delegation.
D. COMMISSION REPORTS
D-1 Planning & Zoning
None
D-2 Harbor Commission
Councilman Ackerly noted the next meeting will be Feb.
5.
D-3 Recreation Commission
None
D-4 Library Cm -mission
None
E. MINUTES
Approved by Consent Agenda.
F. CORRESPONDENCE
F-1 Sen. Stevens - Cook Inlet Terminus for Yukon -Pacific
Natural Gas
F-2 E. Beistline, Mine Consultant - ANWR oil & Gas
Development
KWAI CITY COUNCIL
jAntinry 21. 1987
Page 7
Approved by Consent Agenda.
F-3 City of Kodiak - Arizona Firm with Alaska Seafood Co.
Name
Mayor Williams explained, Kodiak is asking Kenai to
send a resolution. Councilwoman Bailie asked if Truth
in Advertising laws apply. Councilman Measles replied,
this applies if they say it is an Alaskan product. The
name can be anything.
Council agreed to have Administration prepare a
resolution.
F-4 Gov. Cowper - Cook Inlet Terminus for Yukon -Pacific
Natural Gas
Approved by Consent Agenda.
0. OLD BUSINESS
None
H. NEW BUSINESS
H-1 Bills to be Paid, Bills to be Ratified
MOTION:
M
Councilman Measles moved, seconded by Councilwoman
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Bailie, to approve the bills as submitted.
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Motion passed by unanimous consent.
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H-Z Requisitions Exceeding $1,000
MOTION:
r3
Councilman Measles moved, seconded by Councilwoman
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Bailie, to approve the requisitions as submitted.
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Motion passed by unanimous consent.
H-3 Ord. 1186-87 - Increas. Rev/Appns - Physical Exam for
New Employee - Senior Center
Mayor Williams suggested the City could prevail on
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local physicians for free exams if they are employed by
the Senior Center. Councilman Measles asked why it is
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necessary to have an ordinance for $50. Accountant
Parnell explained, it is an increase in the budget, it
is grant from the State.
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This ordinance was approved by Consent Agenda
H-4
Ord. 1187-87 - Increas. Rev/Appns -State Grant &
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Donations, Library - $3,383
H-5
Ord. 1188-87 - Amend. KMC - Zoning Code - Encroachment
Permits
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H-6
Ord. 1189-87 - Amend. KMC - Landscape/Site Plan
H-7
Games of Chance & Skill - Elks Lodge #2425
F6
H-8
dames of Chance & Skill - AARP
Approved by Consent Agenda.
H-10
Disc. - Golf Course Lease
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Mayor Williams explained, neither Morgans nor Burnetts
-_ `_`•
are represented. He suggested Council forego action
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KENAI CITY COUNCIL
.Tan»aary 21 ; 1 q87
Page 8
till both have digested the material. Councilwoman
Bailie said she was concerned with the memos
distributed this date. she thought Council made
decisions. If there is heat, they take it. She has a
problem with Public Works opposing granting this. We
granted the right-of-way in 1983, reiterated it in Jan.
7. That was the method we wanted to pursue. Regarding
Atty. Rogers' memo, page 3. She thought we had a prior
commitment to granting of easement and we wanted to
take this route. Atty. Rogers replied, Council
directed Administration to find access, this or other.
City Manager Brighton agreed, explaining Administration
was to bring back alternates. That is the reason for
the Public Works memo. He asked if Council wanted
Administration to survey, plat and record the easement.
Atty. Rogers referred to a 1983 memo from Land Manager
Labahn. Councilman Measles asked if the lots on Lawton
are platted. Answer - no. Public Works Director
Kornelis added, the paper work is done, he did not know
if the Borough portion is done. They planned to retain
all the lots for the golf course. Councilman Measles
noted the spaces look like an intended right-of-way for
Lawton. Mayor Williams reviewed the minutes of Jan. 7.
This was brought back because of Mr. Morgan's memo.
Public Works Director Kornelis has documents outlining
the 3 road alternates. Atty. Rogers has prepared
documents indicating his right to not even offer to
lease. If the City chooses not to lease till
Candlelight is extended, Mr. Morgan has the right to
refuse or reject at that time. The main question is,
does the City want to pay for this and does the City
wish to pay for building alternate ##1 or #2.
Councilman Wise noted there is a 3rd option,
negotiating with Mr. Morgan of extending Linwood down
the sand pit to Burnett's property. It would be less
cost and distance. We have dual commitments: 1) to
Morgans for the golf course (they have invested a great
deal of money. This would be more economically
viable), and 2) to Burnetts that was swept under the
crack. Had Mr. Morgan known of the easement, the
course could have been designed around it. Now we are
obliged to honor both requirements and should look at
all alternatives. Councilman Measles said some where
back in the last 3 years, at some point Council did
tell Mrs. Burnett they would have use of that easement
with stipulation the building of the road would be at
their cost. At one point in the discussion with Mr.
Morgan, he was made aware of the possible easement.
Mayor Williams noted the memos from Land Manager
Labahn. Atty. Rogers added, Aug. 24, 1983, Land
Manager Labahn sent a memo to City Manager Brighton and
Atty. Rogers discussing Ord. 870-83. He noted 2
methods of implementing and recommended Burnetts incur
the cost of survey. The City shall not assume cost, an
estimated $3,000. This matter was made known to Mr.
Morgan. Council had a work session regarding the golf
course. It may not be on record. The language in the
lease says property is as -is, subject to easements of
record and indemnification clause. The lease was a
joint document. After the RFP, Mr. Morgan was not
satisfied with the document. He was the only bidder.
Atty. Rogers was instructed to re -draft with Mr.
Morgan, his attorney and himself. The rights of Mr.
Morgan consist of the right of 1st refusal. He would
be taking the property as it exists when he signed.
There was some misinformation that the property was
already under lease, that is not the case. Mayor
Williams said Council has to answer which alternate
method. If we use Candlelight Dr., we can ask the
KENAI CITY COUNCIL
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.TanitAry 21. 1987
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Page 9
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lessee to accept the land with Candlelight through and
design around Candlelight as best he can. It will be
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substantial less cost to the City than alternates #1,
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# 2 and # 3 (from Councilman Wise) . City Manager
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Brighton said, regarding alternate #3, the day after
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the Jan. 7 Council meeting, Mr. Morgan cams into Mr.
Brighton's office. From his standpoint there was no
leniency as far as Candlelight was concerned. it had
to go. Before the discussion was over, he said if
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there could be some exchange of land so he could
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redesign the golf course and utilize Burnett s
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property. Mr. Brighton suggested he contact his
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architect to prepare. Burnetts own - fee simple - the
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land he is talking about. we own the land it would go
through that has to be used for parks. Mayor Williams
suggested it could be exchanged. Mr. Brighton replied
it could be done. The simple and most logical way
without liability is to perfect easement on
Candlelight. Councilman Ackerly said he would not vote
to appropriate money to build a road. We can offer
them as we did in 1983, a way to get to their property.
Mayor Williams said Atty. Rogers has said the Burnett
property does not have much value compared to other
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lands. The City has chosen to reserve 21 lots on
Candlelight and 16 on Lawton. We might be able to
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trade these for the Burnett property. He suggested
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shelving action on this till we can get all people here
for a work session. Councilwoman Bailie suggested Mr.
Morgan is interested in getting started this Spring.
She suggested a representative for Mr. Morgan come to
the work session. Mayor Williams noted it may be worth
-`-:.
the plane ticket for Mr. Morgan to come. City Manager
Brighton noted lots 1 through 13 and 2 through 6 on the
left. They are not available till the City makes a
trade with Dept. of Interior for like amount of equal
real estate. Lots 1 through 16 and lots 7 & 8 on the
right can be traded. Councilman Ackerly suggested the
City appraise and trade off. Mr. Brighton noted it has
`"` - ��=_'`'•>`
not been broached to the Burnetts. Mayor Williams
noted the value of the lots is $60,000. Atty. Rogers
noted we will need an appraisal. He added there is
also an impetus for development then. Councilman wise
said Linwood Extended has a road to Candlelight
Extended. It was used when sand was excavated. It
exists, it could serve as access. Mayor Williams asked
that a meeting be arranged as soon as possible, and
request Mr. Morgan come in early for the meeting.
Councilman Ackerly asked that both memos be sent to
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Burnetts and Morgans.
H-11 Disc. - Kenai Borough Resource Development Commission -
;i;-
Appointment of City Representative
Mayor Williams noted the Resource Development
Commission has been operating illegally because of the
Sunset Laws. It has been resurrected. Les Vierra has
represented the City. Councilman Ackerly noted we have
never had a report. Mayor Williams stated if Mr.
Vierra is City representative he will report.
Councilwoman Bailie suggested Vince O'Reilly. Mayor
Williams said he will review and report back to
Council.
I. ADMINISTRATION REPORTS
I-1 City Manager
City Manager Brighton spoke.
KENAI CITY COUNCIL
J.:nuary 21, 1987
Page 10
a. He distributed copies of the brochure regarding
off -road vehicles. Jan. 24 the Kenai Police Dept.
will participate in a Community Schools program in
Nikiski regarding this. The brochures will go out
in February or March.
b. Regarding the -memo to Gov. Cowper distributed this
date (item I-3). This refers to Bradley Lake. He
did not sign page 3 because Council did not take
any action. Most people are connected with HEA,
MEA, Mat -Su Power, Anchorage Mayor, etc. Homer,
Kenai, Soldotna did not sign. The meeting was
also to discuss rail belt cuts. Anchorage Mayor
Knowles called this the "Fairness Test" for
grants. If the State cuts 20%, we should be
willing to take 20% cut in municipal assistance,
revenue sharing, school bond indebtedness, school
funding. Everyone in the room subscribed.
Soldotna Mayor Farnsworth said she would not sign
because the Borough Caucus has made school bond
funding their #1 priority. She persisted, saying
we want 80% of school bond indebtedness even if
you eliminate revenue sharing and municipal
assistance. The subject is scheduled for the Jan.
31 meeting at the Borough. One mill in the city
is $300,000, in the Borough it is $3 Million. If
they cut a percentage we have to raise levies
higher than the Borough does. What was proposed
is fair, everybody is cut 20%. But to cut us 40%
and schools 10% is tragic for the taxpayers.
Seward and Homer agree. He will presenting these
views at the Jan. 31 meeting. It is their
problem, they created it. Why ask us to solve it
for them? Councilwoman Bailie noted there was
supposed to be unanimous vote to approve. Mr.
Brighton replied the By -Laws say that.
Councilwoman Bailie said it should be brought back
to the Councils before passing. Councilman
McComsey said it is an 11 member board, all have
to agree. He added they are going to ask for $.20
per capita dues, $25 from the chambers. They want
1-1/2 year's dues. Councilwoman Bailie asked,
what is the money for? Councilman McComsey
replied, postage and supplies.
I-2 Attorney
None
I-3 Mayor
Mayor Williams spoke.
a.
b.
C.
d.
f.4tiisi:P� _ n � Y
The dues for the Kenai Peninsula Borough Caucus
will be approximately $1,800. He asked if Couni
wanted to pay this.
Harbor Commission appointments: Joe Nord and Wa;
Keppell-Page. Councilwoman Bailie asked if any
women have applied. Answer - no.
Council approved the appointments by unanimous
decision.
The Airport Commission ordinance will be
introduced at the Feb. 5 meeting.
Regarding the Bradley Lake presentation this da,
He has experience in coal fired plants and have
visited all those in the State. Coal fired
generators are all over the U.S. and are
KENAI CITY COUNCIL
January 21, 1987
Page 11
economical. Bradley Lake facility cannot reach
the magnitude of product anticipated. Can we
afford it or do we need it? 15% increase in rates
for a new turbine that sits idle. It will cost
$92 Million to abandon Bradley Lake project.
Councilman McCoamsey noted they have $43.6 Million
in it now. He thought that was inflated.
Councilman Measles explained, that is to buy off
contracts. Mayor Williams the question is do we
go for $90 Killion and get out, or let coal go on
their own.
e0 water problems across the City are showing dirt in
the water. is this seasonal? Public Works
Director Kornelis said this is the first he has
heard of it. He has heard complaints regarding
the smell. The City tests every Monday for
sanitation. Mayor Williams asked what it would
take to test for turbidity. Mr. Kornelis replied
it could be done at the well house.
f. Having voted for the off -road vehicle ordinance,
Mayor Williams said he did not have a feeling for
the ordinance. It eliminates in entirety the use
of off -road vehicles in the City. Before snow
machines had an opportunity to ride at the side of
the road, now they cannot. Snow machines have to
be put on a trailer, taken to a designated spot
and then used. The City is a vast land area. on
Candlelight he is in the hinterlands. The land is
good for snow machines. He suggested allowing
snow machines in RR areas and places not densely
populated. He will present an amendment to the
ordinance regarding this. Police Chief Ross
explained, the ordinance does not ban the use of
off -road vehicles in Kenai. It does state they
cannot be used in rights of way that are improved.
Any area seeded, landscaped, improved with
sidewalks is barred. The original ordinance was
to ban all use. He met with the Beautification
Committee, this ordinance is a compromise. They
are in effect banned from down town area. Mayor
Williams said we are dealing with types of
off -road vehicles. Snow machines do not have as
great an effect when we have snow. The primary
effect is noise. Chief Ross said it does not
matter what kind of vehicle, it destroys terrain.
The old ordinance allowed use in rights of way.
We only designate where you cannot use them.
a.(contd) Regarding Kenai Borough Caucus dues.
Councilman Measles said if we are not going with
the Caucus the other 10 may make decisions that
affect us. Councilman Wise asked if they are
asking for money up front. Answer - yes.
Councilman Wise suggested payment in 6 month
increments. Councilman Ackerly suggested we ask
them the reason for the amount. Councilman
McComsey said the administrative costs and
communication cost have been paid by the Borough
and Soldotna. They want to share the expenses.
They are working on a budget. Mayor Williams
suggested the City pay 6 month's dues pending a
budget proposal.
Council agreed to the suggestion.
9.
Councilwoman Bailie asked if more people could be
appointed to the Beautification Committee. There
were only 3 at the last meeting. A student has
been appointed, and the meeting time has been
changed to 1:30. Mayor Williams replied 2
KENAI CITY COUNCIL
January 21, 1987
Papa 12
alternates could be appointed, we are limited to
by Code.
I-4 City Clerk
Clerk Whelan spoke.
a. She noted the Clerk's Advanced Training report
the packet.
b. She will be on vacation Feb. 2 through Feb. 13.
I-5 Finance Director
None
I-6 Public Works Director
Public Works Director Kornelis spoke.
a. The Capital Improvement Brochures for 87-88 were
distributed this date.
b. Regarding State maintenance & operation of street
lights (Info 7). Some cities are not paying for
street light maintenance. The State will maintain
lights on State maintained roads. Mayor Williams
asked if we are allowed to hang Christmas lights.
Mr. Kornelis replied yes, they are hooked up to
power, we will put them up.
c. He noted Info 8 regarding animal control report.
724 animals were destroyed last year.
d. Regarding the boat facility (Info 17). He will be
working with the Harbor Commission.
a.(contd) Councilman Ackerly asked that the CIP
brochures be sent to the Legislative delegation,
Chamber of Commerce, City of Soldotna, City of
Homer, Kenai Borough. Council agreed.
e. Councilman Measles asked why some of the Christmas
lights were still up. Mr. Kornelis replied they
stopped putting them up because they were using
the bucket. They cannot reach 2 of the lights
with the new equipment. They will be done Jan.
22.
f. Councilman Measles noted there is a missing stop
sign at Cedar & Pine. Mr. Kornelis said it will
be taken care of.
g. Mayor Williams noted there is graffiti at the dug
out on S. Spruce. He asked if it could be painted
before Jan. 25.
I-7 Airport Manager
Airport Manager Ernst spoke.
a.
b.
He invited Council to look at the phone
advertising in the terminal, it looks good. The
counters are completed to the south. They will
open bids for the conveyor belts Jan. 29. Dollar
Rent-A-Car has vacated. The teller machine has
been vacated. He is contacting other banks to take
it over.
He will have the pre-app for the float plane basin
next week. Mayor Williams asked about the land
condemnation. Mr. Ernst replied we have not
received the deed from the courts yet. By next
week we will have the documentation to include
with the pre-app.
J. PERSONS PRESENT NOT SCHEDULED TO BE HEARD
sm
KENAI CITY COUNCIL
January 21. 1987
Page 13
a. Councilman Ackerly. He had read that Lake Hood is
trying to expand 400 slots for a float plane basin
and high speed runway for large planes. They are
doing a noise abatement study.
b. Councilman Ackerly. We may want to consider
creating a free trade zone around the airport, for
things from foreign countries, to avoid taxes.
c. Councilman Ackerly. We have not responded to Jack
Walsh, Anchorage Mayoral candidate, regarding his
proposal to make Anchorage the fish processing
capital of Alaska and the world.
d. Councilman Ackerly. What about the geese watching
facility?
e. Councilman Ackerly. He has passed some material
from Colorado to Mayor Williams regarding energy
consulting with some interesting ideas.
f. Councilman Ackerly. Some time ago he distributed
some material regarding coal generation. He will
distribute it again.
g. Councilman McComsey. Regarding the Kenai
Peninsula Borough Caucus. They want a directive
regarding Frontier Training Center (Info 19). The
State has cut $90,000 from the budget. They asked
if we would support a resolution to the Governor
to get it back. Also, are we going to support
Bradley Lake or say nothing? Mayor Williams
asked, what were their comments regarding the gas
pipeline? Councilman McComsey replied it will be
discussed at the Jan. 31 meeting. Councilwoman
Bailie said she thought Bradley Lake was the top
priority. Has school funding ever been discussed)
Councilman McComsey replied no. He noted the
training center is a worthwhile project. City
Manager Brighton noted Council has had resolutions
at every meeting recently to support continued
funding from the State. He wondered if there
would be resolutions in support of revenue sharing
and municipal assistance. They will have to cut
something. Councilman McComsey explained, the
reason this would be worth funding is, this is
only a small portion of what they get. They keep
handicapped students from going to the Valdez
Center. It costs $50,000 to send a person to
Valdez, $10,000 at the Frontier Training Center.
They train in laundry and other work places.
a.(contd) Councilman Wise suggested the Economic
Development Committee look into the free trade
zone idea.
h. 'City Manager Brighton noted a group has gone to
Washington D.C. regarding a port of entry. What
happened? Mayor Williams replied, there was no
response.
a.(contd) Mayor Williams suggested the free trade zone
idea be investigated by the Airport Commission
after it is formed.
c.(contd) Mayor Williams. Regarding Anchorage as a
fish processing center. We could have a large
storage area here. The nearest place is Seattle.
We could warehouse here and freight to Pacific
countries. He will ask the Harbor Commission and
Economic Development Committee to review this. We
cannot get bonding for industrial development, we
will have to investigate other areas of funding.
ADJOURNMM t
Meeting adjourned at 11:05 PM.
(/ Janet Whelan
City Clerk
AppROH® 6Y COUt�1
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