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HomeMy WebLinkAbout1987-04-01 Council Minutes.{ i 4 0 7yL2 ter, AGENDA 'r YOM "N KSNAI CITY COUNCIL - REGULAR MEETING APRIL 1, 1987 WORK SESSION - 6:00 P.M. - BILL CONYERS, KENAI PENINSULA BOROUGH - LANDFILLS PLEDGE OF ALLEGIANCE A. ROLL CALL B. C. 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. PERSONS PRESENT SCHEDULED TO BE HEARD (10 Minutes) 1. 2. 3. Faye Mulholland - Little League Beaver Creek Property Owner's Association - Update on RV Camper Park/Boat Ramp - Request for Public Hearing. Bud Woodard and Kirby Wright - Woodard Construction - Automated Flight Service Station/HEA Billing on Line Extension. PUBLIC HEARINGS 1. 2. 3. 4. 5. Ordinance No. 1195-87, Amending Ord. 870-83 - Providing for City Incurring Costs of Perfecting Easement - Candlelight Extension. Ordinance No. 1194-87, Amending KMC Section 4.05, Uniform Building Code, Adding Section 4.05.140. Ordinance No. 1196-87, Increasing Estimated Revenues/Appropriations - $20,000 - Lobbyist Hire. a. Contract for Lobbyist Services Ordinance No. 1197-87, Amending City of Kenai Zoning Map - Rezoning Parsons' Homestead No. 2. Resolution No. 87-12, Authorizing Participation in State Day Care Assistance Program. 6. Resolution No. 87-13, Award of Contract - Motorola Communications and Electronics, Inc. - Dispatch Equipment - $79,215. 7. S. Resolution No. 87-14, Transfer for Purchase of Tapes - Recording Equipment for Dispatch - $9,540. Resolution No. 87-15, Opposing the State Transfer of Road Maintenance to Municipalities. D. COMMISSION REPORTS 1. Planning A Zoning 2. Harbor Commission 3. Recreation Commission 4. Library Commission ft K.4, tY 5. Council on Aging 6. Miscellaneous Commission and Committees z� rt E. MINUTES 1. *Regular Meeting, March 18, 1987 z F. CORRESPONDENCE £`' } k ,' IRV r, 1. *3/10/87 Ted Stevens letter regarding National Air r; Guard. f r sf r 2. *David D . Oberg post card regarding Academic Decathlon t r Team. G. OLD BUSINESS H. NEW BUSINESS 1. Bills to be Paid, Bills to be Ratified. 2. Requisitions Exceeding $1,000. 3. *Ordinance 1198-87 - Establishing Two Employee Classifications and Creating Salaries (Boat Facility). a. Discussion - Kenai Boating Facility 4. *Ordinance 1199-87 - Amending KMC 21.25.030(c) and (d) - Airport Commission. fiat ;, <44;+��; �r 5. Discussion - One Stop Liquor }ice 6. Inlet Woods Subdivision - Approval of Change Order #1. 4. y� 7. H.A.S. Project - Approval of Change Order V. p rs 8. Flight Service Station - Approval of Change Order $1.� r cif 9. Discussion -Flight Service Station - HEA Bill for �s= a rs.:A x i Power and Transformer. ... - y . 10. Discussion - Float Plane Basin - Inspection Proposal S� �r from Wm.J. Nelson A Associates, Inc. 11. Discussion - 1986 Lease Rate Renegotiations f trt, <di� Six}�x # J — — J 12. Discussion Rescission of Lease Agreement W.M. and i �r t Jill Burnett. ti N- v 13. Discussion - Union Oil Company - Application for Oil and Gas Well Drilling Permit (Cannery Loop W . e=: $ ai14. Discussion -Friendship Air Alaska -Lease Termination. _ ski cr � 3F 5C' _� r I . ADMINISTRATION REPORTS _ -" �' 1. City Manager " 2. City Attorney 3. Mayor _ >� 4. City Clerk -� 5. Finance Director a 6. Public Works Director 7. Airport Manager Ls. x J. PERSONS PRESENT NOT SCHEDULED TO BE HEARD (Five Minutes) Tti' Ek,rv' •» i - 1'X`'`._ii_ fir: A ,x�','"y ADJOURNMENT yM014 ;i KENAI CITY COUNCIL, REGULAR MEETING, MINUTES APRIL 1, 1987 - 7:00 PM KENAI CITY HALL MAYOR JOHN J. WILLIAMS PRESIDING PLEDGE OF ALLEGIANCE A. ROLL CALL Present: Sally Bailie, John Williams, John Wise, Art McComsey, Chris Monfor Absent: Ray Measles, Tom Ackerly (excused) A-1 Agenda Approval a. Mayor Williams asked that items H-8 and H-9 be discussed with item B-3. (Flight Service Station) b. Mayor Williams asked that item H-12 be discussed with item C-1. (Burnett Easement) C. Mayor Williams noted that item C-6 (Res. 87-13) has the pages reversed on the second part of the Bid Form. d. Mayor Williams asked that a report from the Memorial Park Committee be added as item D-7. e. Mayor Williams asked that item H-15 be added - Lease Agreement with Rent -A -Dent. MOTION: Councilman Wise moved, seconded by Councilwoman Bailie, to approve the agenda as amended. Motion passed by unanimous consent. A-2 Consent Agenda MOTION: Councilman Wise moved, seconded by Councilman McComsey, to approve the Consent Agenda as submitted. Councilwoman Bailie asked that item H-3 (Ord. 1198-87) be deleted from the Consent Agenda. Motion passed by unanimous consent. B. PERSONS PRESENT SCHEDULED TO BE HEARD B-1 Faye Mulholland - Little League Faye Mulholland, President of Little League, Nikiski. She distributed material regarding the proposed Little League fields. She asked that community fields be built. She had met with the Recreation Comm. and talked to Recreation Director McGillivray. He advised her they need facts and volunteers. The Peninsula Oilers have discussed helping, Northern Oil Operators are willing to donate equipment, Kenai Mall Merchants are willing to have a fund-raiser. Little League has been sending letters out asking for donations. The new fields will not be done by Little League kids, adults would be asked to help. She asked for a work session to look at the plans. The ground needs to be broken this year if they are to be used within 2 years. The loss of the Dust Bowl and increased registration make it mandatory. There are over 400 now, an increase of 100. There are 3 minor softball, 2 major, 1 big league, all girls teams. All are on one field. Boys meow KENAI CITY COUNCIL At'RIL 1, 1987 PAGE 2 teams are, 6 T-ball, 7 minor, 5 major, 5 senior teams. The American Legion has older boys, they share the field. The Little League people are raising money for maintenance of the fields at no cost to the City. They need permission to do this. The City has provided money for umpiring, they will share this cost. The property is at the old landfill, there is also land behind Craycroft Chrysler. Councilwoman Bailie said she spoke to someone regarding a camper park behind Craycroft, he thought the 2 could work together. Councilwoman Monfor noted she thought this had been worked out last year. Mrs. Mulholland replied, she was told 2 weeks ago the problem was with the volunteers. The Recreation Comm. felt they could not do the job. Councilwoman Monfor asked if there was money set aside for this. Finance Director Brown replied $25,000 was set aside for a ball field. Recreation Director McGillivray explained he had asked for a work session last Fall to discuss Little League and youth complex. It was never scheduled. The Recreation Comm. had plans drawn up. They looked at the old dump site, 4-5 acres. The plan is for 25 acres. The Recreation Comm. thought the Council should discuss this. The $25,000 was revenue sharing to replace or relocate the old dust bowl. The Comm. felt that for $25,000, they should have concrete volunteers. Council agreed to a work session April 6. Mayor Williams asked Public Works Director Kornelis to look for potential sites. Mrs. Mulholland asked if the Recreation Comm. could attend. Council agreed to the suggestion. B-2 Beaver Creek Property Owners' Assoc. - Update on RV Camper Park/Boat Ramp - Request for Public Hearing John Cook, Beaver Creek Property Owners Assn., Kenai. The residents of Basin View S/D, Angler Acres S/D and Beaver Loop area have met to discuss the parameters and effects of a boat ramp and camper park. They are concerned about future development, there is a need for a boat ramp and an RV park, but this is not the area for it. The have distributed information to 60 people, and are distributing to 30 more. They are requesting a public hearing with coordination of dll government agencies involved with this. Mayor Williams submitted for the record the names of those people who had submitted petitions, and added that Dave McKechnie and Carl Green had contacted him. Mr. Cook added, they went to the Borough and got a list of those affected. He asked if Council was aware of the action by the developers. Answer - yes. Mayor Williams explained these people have requested the City ask the Corps. of Engineers for a public hearing. Mr. Cook said there is an application to the Corps. of Engineers, it is the 1st step. 2 property owners adjacent to the area were notified. He felt this was inappropriate public notice. They have to request a public hearing by April 20. He is asking the City to help with this. He said he would arrange for a large meeting place, if necessary. Council agreed to request the public hearing of Corps. of Engineers. B-3 Bud Woodard, Kirby Wright - Woodard Const. - Automated Flight Service Station/HEA Billing on Line Extension Kirby Wright, Woodard Const., Anchorage. He explained Mr. Woodard was awarded the $1.3 Million contract, it is substantially complete. They have had one change order, it is deductive. The issue involves a billing from REA regarding transformers. It is Mr. Woodard's position that the work the City is contemplating charging for ($19,000) is not with the job. It is not KENAI CITY COUACIL "XIl. 1, Iva 7 PAGE 3 in the standards of the industry to bid for primary electric sources, just secondary and connections to primary. Mr. Woodard did not bid on this, he was not aware of this. The subcontractor would be responsible but did not bid. Public Works Director Kornelis explained this was brought to Council in August. Architect Gintoli wrote a letter to Mr. Woodard stating it was their responsibility to pay for the transformer and hook up. The City had a cost estimate of a not -to -exceed figure from HEA to run electric lines and transformers, in the amount of $22,000. It was brought to Council, stating it would be from Woodard. HEA sent a final bill of $19,000. Since then, Mr. Gintoli has reviewed and changed his mind. The City position was reviewed with the attorney, he felt we could stand on that. Mr. Kornelis has deducted $19,000 from the pay estimate. There are no contingency funds in this project. MOTION: Councilwoman Monfor moved, seconded by Councilwoman Bailie, to appropriate needed funds to pay Woodard Construction. Motion passed by unanimous consent. H-8 Flight Service Station - Approval of Change Order ##1 MOTION: Councilman Wise moved, seconded by Councilwoman Bailie, to approve Change Order ##I. Motion passed by unanimous consent. Councilwoman Bailie noted Council appreciated the work done on the facility and that there were no change orders. C. PUBLIC HEARING C-1 Ord. 1195-87 - Amend. Ord. 870-83 - Providing for City Incurring Costs of Perfecting Easement - Candlelight Extension MOTION, Table: Councilwoman Monfor moved, seconded by Councilman Wise, to table the ordinance for a work session and request a verbatim on all discussions regarding Burnetts and the golf course. Councilwoman Bailie asked that all paperwork relating to the issue be available. Councilwoman Monfor asked that the work session be for this item only, and that the attorneys be there. PUBLIC COMMENT: Atty. Rick Baldwin, Kenai. He is representing Dick Morgan. Mr. Morgan would like to attend the work session, he will fly back from Hawaii to attend. Councilwoman Monfor asked that the work session be scheduled after tax season. VOTE, Table: KENAI CITY COUNCIL , Mt'AtiJ i, i`JO PAGE 4 Motion passed by unanimous consent. H-12 Disc. - Rescission of Lease Agreement - Wm. & Jill Burnett MOTION: Councilman Wise moved, seconded by Councilwoman Bailie, for approval of the recision request. Admin. Asst. Gerstlauer explained, the property was erroneously coded as goverment exempt and has not been taxed since 1984. The Burnetts are aware of this. She asked that recision be contingent on payment of taxes. MOTION, Addition: Councilman Wise, with consent of second, added: Subject to payment of taxes. Motion passed by unanimous consent. C-2 Ord. 1194-87 - Amend. KMC - Uniform Building Code MOTION: Councilwoman Bailie moved, seconded by Councilwoman Monfor, to adopt the ordinance. There was no public comment. Motion passed unanimously by roll call vote. C-3 Ord. 1196-87 - Increas. Rev/Appns - $20,000 - Lobbyist Hire a. Contract for Lobbyist Services MOTION: Councilwoman Bailie moved, seconded by Councilwoman Monfor, to adopt the ordinance. PUBLIC COMMENT: a. Ray Gillespie, Juneau. He submitted a resume on the proposal in response to the ordinance. He is available to answer questions. b. Jackie Oberg, 406 Rogers, Kenai. She has lived in Alaska 20 years, 19 in Kenai. As a student of government and politics, she believes lobbyists are necessary. They are a source of information, they attend meetings, follow the wording of bills, work with the legislature. There are over 200 full time lobbyists, plus part time. We send the City Manager and City Attorney on a short term basis. This is a complement to a full time job. She would like to be considered for the job. She has a degree in communications. She has worked with Rep. O'Connell, Sen. Stevens, Rep. Young. She has taught seminars on lobbying, she has friends and contacts in Juneau. She has seen the difference between full time and short time blitz. The most effective is a full time lobbyist. She has lobbied in Juneau and Washington D.C. She lobbied for the court house in Kenai. She would have no other clients. Councilwoman Bailie said the City has realized the importance of lobbying and the importance of a full ' s;r W.... KENAI CITY COUNCIL APRIL 1, 1987 PAGE 5 time lobbyist for capital dollars, positive legislation and grant proposals. Examples: 1) HB-155, utility relocates. This is important to the City. If it passes, the City will be liable for $1/2 Million. 2) the fish tax bill. If amended so we don't have to share money with the Borough, it could mean $50,000 to $60,000 to the City per year. 3) Kenai River flats boardwalk. N. Johannsen said we need all the clout we can get in Juneau. 4) N1 on the priority list of the Airport Comm. is acquisition of an Air National Guard wing. Comm. member Irwin said we need all the clout we can get in Juneau and Washington D.C. 5) Kenai Res. 87-15 regarding transfer of State roads to municipalities. We could use a lobbyist for this. 6) the work session held this date regarding land fill. The Borough representatives said they need our help to get balers. These items have nothing to do with capital dollars but have tremendous impact on the community. If he is successful with just one, it would double the amount paid. Anchorage has the Senate president, rules chairman., etc. They still have a lobbyist. The North Slope and Seward have lobbyists. No budgets have passed in the legislature. She would be in hopes of increased funds or negating the damaging legislation rather than a higher mill rate. Mayor Williams noted Atty. Rogers and City Manager Brighton are in Juneau lobbying regarding HB-155. Regarding the fish tax, amendments have been made favorable to Kenai, there is no agreement yet. We are just beginning discussion regarding the land fill. VOTE (Failed): Yes: Bailie, McComsey, Monfor No: Williams, Wise C-4 Ord. 1197-87 - Amend. zoning Map - Parsons Homestead #2 MOTION: Councilwoman Bailie moved, seconded by Councilman Wise, to adopt the ordinance. PUBLIC COMMENT: a. Mike McLane, McLane Surveying. He is here to answer any questions. There were no questions. Motion passed unanimously by roll call vote. C-5 Res. 87-12 - Authorizing Participation in State Day Care Assistance Program MOTION: Councilman Wise moved, seconded by Councilwoman Bail to adopt the resolution. There was no public comment. Motion passed by unanimous consent. C-6 Res. 87-13 - Award of Contract - Motorola Comm. & Electronics - Dispatch Equipment - $79,215 MOTION: Councilman Wise moved, seconded by Councilwoman Bail to adopt the resolution. s? KENAI CITY COUNCIL i APRIL 1. 1987 PAGE 6 � t There was no public comment. - ,. -i - Motion passed by unanimous consent a ' Y C-7 Res. 87-14 - Transf. . of Funds - Purchase of Tapes - 'u� Recording Equipment for Dispatch - $9, 540 �s- MOTION: fi rl u w�� < Councilman Wise moved, seconded by Councilwoman Bailie,vIM �i~ to adopt the resolution. r • There was no public comment. - t;�. Motion passed by unanimous consent. _ � - -�•f � .�� r O$ C-8 Res. 87-15 - Opposing State Transfer of Road Maintenance to Municipalities X�h MOTION: Via, Councilman Wise moved, seconded by Councilman McComsey, ,yam r l rir ;1 Y� to adopt the resolution. 444� W, There was no public comment. Motion passed by unanimous consent. D. COMMISSION REPORTS r Sr^tr�1y t' r � r k� D-1 Planning & Zoning }� } 9��"•,t; None a - f " t- _''� D-2 Harbor Commission Chairman Quesnel said there will be a meeting April 2. ti 4; D-3 Recreation Commission Recreation Director McGillivray said there will be a 4r$ meeting April 14. �n D-4 Library Commission Chairman Swarner reported they will promote National `Nil -7 �fLto Library Week. There will be a balloon launch at the library and the schools. National volunteer Week is in x�3r _ April. The volunteers are taken to Chamber lunch, paid t 3 sr` F Z 3; by the Library budget. Councilwoman Monfor asked if the City could pay for the lunches. Finance Director u) s Brown explained, we are doing that with approval of thebud et. ADDED ITEM: s s� Councilwoman Bailie noted we should show our �� appreciation to the volunteers and commission members. :- - -- Clerk Whelan replied this is scheduled for review in April. Mayor Williams said he will have a report aty the April 15 meeting. y*f Librarian DeForest noted last year one of the balloons , � 'K`431 was found at Mt. McKinley and one at Adak. x : '= D-5 Council on Aging �k a Councilwoman Bailie said Program Director Porter i attended a work shop in Juneau. They will be cut 5$ to ..ate i f _ � r• W'.=:. KENAI CITY COUNCIL �nnt♦ t t 64*7 At AiY •/ Irv• PAGE 7 15%. The seniors will have fund raising projects. The 15 passenger van is coming, with a lift on it for Day Care participants. They will have $20,000 from United Fund. They will start collecting donations for coffee. Program Director Porter explained a proposed endowment *'y fund. She had approached the City a few years ago to have senior endowment funds for operating supplies. At 'F that time there was no interest, they are working on it �y'� :-,�� now. Councilwoman Bailie noted the only involvement of the City is the work of the attorney. Mrs. Porter added, there will be accounting work. Councilwoman Bailie said they are constantly receiving from the community, they want to give back. They will have a pancake breakfast on Prom night and a fashion show April 4. D-6 Misc. Comm/Comm a. Airport Commission. Councilwoman Bailie reported they had their first meeting. The are attempting a' rib acquisition of an Air National Guard wing and anticipating construction of the float plane A basin. She asked Airport Manager Ernst to distribute to the Council copies of the folder he prepared for the Commission. Mr. Borg will speak at the April 9 meeting regarding Air National Guard. b. Prison Advisory Board. Councilwoman Monfor said _try she is Council representative. They are working >? on by-laws. She would like input from the public regarding goals for the board. _. C. Memorial Park Committee. Councilwoman Bailie ' explained it was not the intention of the committee to oust the Vets Memorial. They found the site was on State right of way. The T=�z suggestion was made to put them close to each other. The Comm. thought it could be put in {; another area. Architect Gintoli redesigned it, it _= would face Frontage Rd. and would have parking. Locating structures all over the City would be a maintenance problem. They would like to leave " just these 3 structures. If any more are F >r proposed, they would be in another area. A flag pole that is already donated would be added. i;. MOTION: Councilwoman Bailie moved, seconded by Councilwoman Monfor, to accept the final design of Lief Hansen Memorial Park and at acceptance, we have -Administration put documents out for bid and proceed with it. There was no public comment. Councilwoman Bailie added, there will be trees and J walkways there, just no more structures. Councilwoman Monfor stated the trees should be large enough to withstand the winds. ------------ Motion passed by unanimous consent. s E. MINUTES i E-1 Regular Meeting, March 18, 1987 t� 14 Approved by Consent Agenda. _ a .. '. ritiCrf r•'` =-- -:- ` tf KENAI .CITY COUNCIL APRIL 1, 1987 PAGE 8 F. CORRESPONDENCE F-1 Sen. Stevens - National Air Guard t' F-2 David Oberg - Academic Decathlon Team Approved by Consent Agenda. G. OLD BUSINESS None H. NEW BUSINESS H-1 Bills to be Paid, Bills to be Ratified MOTION: Councilman Wise moved, seconded by Councilwoman Bailie, to approve the bills as submitted with the exception of Woodard Construction, delete $36,502.85, substitute $55,739.00. Motion passed by unanimous consent. H-2 Requisitions Exceeding $1,000 MOTION: Councilman Wise moved, seconded by Councilwoman Bailie, to approve the requisitions as submitted. Motion passed by unanimous consent. ' H-3 Ord. 1198-87 - Establishing Two Employee Classifications and Creating Salaries (Boat Facility) a. Discussion - Boating Facility Councilwoman Bailie said she would like to see a job description for this position. The job is new to the City. Councilman Wise added, the ordinance does not identify the positions as temporary/seasonal. There should be limits to the period of hire. Finance Director Brown replied, in the 2nd page of the ordinance - the Code is laid out that way. None of the positions are laid out as permanent, seasonal, etc, Council agreed to have a section added delineating this. ��. Councilwoman Monfor asked, what are the 4 months? Public Works Director Kornelis replied, June, July, August, some before June and some after September. Councilwoman Monfor noted there are silvers in September, there is fishing in lower Cook Inlet. Mr. Kornelis added, he wanted to have him for 6 weeks to learn the job, then be off till fishing started. Councilman Wise suggested making it 5 months for the first year out. There is herring fishing and silvers s, in Sept. Councilwoman Bailie asked what plans are r being made regarding camping? There are rest rooms and showers. Mr. Kornelis replied they have no plans. Mayor Williams explained he has asked for the cost of a >.?.a On temporary camping and parking area and setting a rate ?„ to cover the costs. Mr. Kornelis added there will be a fee for septic dumping. Mayor Williams said they are discussing filling of a considerable area of wetlands f' i-A- for a -amper park. Councilwoman Bailie suggested this should be a decision of Council. Mayor Williams replied he is asking for information. Councilman Wise i KENAI CITY COUNCIL APRIL 1, 1987 PADS 9 said he is concerned about the cannery workers. There will be a conflict between commercial fishermen, tourists and cannery workers. Mayor Williams continued, he asks Public Works to get information on ideas he has, then he brings it to Council. Councilwoman Bailie noted if all of Council went to Administration with ideas, it would take away from the work of the City. Mayor Williams replied he did not want to be stifled from coming up with good ideas. Councilwoman Bailie explained, there are 7 members of the Council on equal ground. If they have ideas that do not have agreement of Council, that is a waste of time for Administration. Mayor Williams closed the discussion. MOTION: Councilman Wise moved, seconded by Councilwoman Bailie, to introduce the ordinance. Motion passed by unanimous consent. H-4 Ord. 1199-87 - Amend. KMC - Airport Commission Approved by Consent Agenda. H-5 Discussion - One Stop Liquor Mayor Williams explained this is on the agenda because Mr. Boyd asked Administration for this. PUBLIC COMMENT: a. Roger Boyd, Kenai. After reading the letter of objection from the City to ABC, it seemed worth his while to address Council. In reply: 1) Posting. It was done by law and was done in good faith. 2) Disruption of neighborhood. It would not be in the best interests of a businessman to be where they do not want him. He has empathy to those who do not want him there. That is the growing pains of the City. 3) Non -construction of facility. Construction is going on. That should take care of the cleared lot. Regarding a buffer. He added a site obscuring fence. 30% of his lot is in uncut trees. Flora and fauna are greater than the required 5%. 4) No revenues. If there is no license, it would be lost to the City till the population doubles, that is the new law. His location would pull from areas outside the City that may not be there otherwise. It would provide 3-1/2 full time jobs, it would add to the tax base. He is going ahead with this. He was involved in the Tangent Building across from City Hall. He asked Council to reconsider their earlier decision. Councilwoman Bailie asked, he did not receive a copy of the letter? Mr. Boyd replied, he received it after the Council meeting. Mayor Williams said it is too late to reconsider. There may be action taken place by other parties. Mr. Boyd said he hoped he would not have to go before ABC. He cannot give up. Councilman Mccomsey said if he has the financing and is ready to go, he has no objection to it. Mayor Williams said Council cannot do anything between now and April 15. Councilwoman Monfor noted Council could send letters individually. 1Cl:l�lwi c:i2 \:VtIpV1L APRIL 1, 1987 PAGE 10 Council took no action. H-6 Inlet Woods Subdivision - Approval of Change Order #1 MOTION: Councilman Wise moved, seconded by Councilwoman Monfor, to approve the Change Order. Councilwoman Bailie asked, why are we paying 15% profit and overhead on this? Public Works Director Kornelis replied, it is general contractor's profit. He added, the State has a new law regarding explosive -proof boxes. A lot of our old boxes are not, our new facilities will have these. Motion passed by unanimous consent. H-7 H.A.S. Project - Approval of Change Order #7 MOTION: Councilwoman Bailie moved, seconded by Councilwoman Monfor, to approve the Change Order. Councilwoman Monfor asked if this is the last change order. Answer - yes. Motion passed by unanimous consent. H-10 Disc. - Float Plane Basin - Inspection Proposal from Wm. Nelson MOTION: Councilwoman Bailie moved, seconded by Councilman McComsey, to direct Administration to negotiate with Mr. Nelson regarding inspection portion of this bid so he would be the one doing inspection of the float plane basin and he would know if he should purchase insurance. Mayor Williams suggested 1st right of refusal offer for Mr. Nelson. Councilman Wise said we are not in a position to offer a contract. We habitually go with the design engineer for inspection. Motion passed by unanimous consent. H-11 Disc. - 1986 Lease Rate Renegotiations Councilwoman Monfor asked if the lease payments we are receiving are on the old lease rates and are they paying? Admin. Asst. Gerstlauer replied, they are paying on the old rates, they are current, they have not signed an agreement. The original appraisal was obtained, then reviewed by MAI, then it went to FAA - there were 3 opinions. Councilman Wise suggested the lessees be provided with a copy of the appraisals, a copy of the Supreme Ct. decision and a statement that they are free to order new appraisals. Admin. Asst. Gerstlauer requested a time frame be stated. Council agreed on 90 days to respond, and that the information be sent return receipt requested. H-13 Disc. - union Oil Co. - Application for Oil & Gas Well Drilling Permit (Cannery Loop #a) JW _2 KENAI CITY COUNCIL APRIL 1, 1987 PAGE 11 Mayor Williams noted he may have a conflict of interest in this matter. He asked to abstain from voting on the issue. PUBLIC COMMENT: Robert Anderson, Union Oil Representative. Union Oil will start production in Cannery Loop this year. Cannery Loop #4 is to be drilled north of the river and east of Bridge Access Rd. The drilling rig has moved there. They will have permits by the middle of the month. It is not designed to be gas. It is exploratory. It is a deep well, deeper than #1 and #3. If it is successful, they will complete it as an oil well, move the well to Cannery Loop #3 and complete that as a gas well. Northeast of #3 (and possibly one more oil well, if oil is found concurrently) they will be back to ask for #1. The equipment will be installed by June 1, in production by late October. 1/2 of the 20 years he has been in Alaska has been with the Cannery units N1, #2, & #3. Union Oil has 60% of the Cannery unit, they had 35% before. It was a challenge to get all to agree and move forward. They hope on 44, if it is not a discovery it will be in 2 gas pools. At the end of the year they will have 4 wells in production. Councilwoman Monfor said she has a concern with drilling muds, such as Miller Loop. She did not want that to happen again. Mr. Anderson replied the muds and cuttings will be in metal containers. They will be working with DEC regarding a site outside of Kenai. Councilman Wise noted the Kenai ordinances authorizing permits have been amended regarding storage. Mr. Anderson replied they have copies of the amended ordinances. The existing pits will be closed when they reach an agreement with DEC as to how. MOTION: Councilman wise moved, seconded by Councilwoman Monfor, for approval of the application for drilling of $4. Motion passed by unanimous consent with Mayor Williams abstaining. H-14 Disc. - Friendship Air Alaska - Lease Termination MOTION: Councilwoman Monfor moved, seconded by Councilwoman Bailie, to cancel the lease with the understanding they would have to pay six month's minimum. Councilwoman Monfor explained, the City went to considerable expense for this, but we own the facility. It is an asset to the airport. Mayor Williams said the City incurred over $30,000 we probably would have incurred along the way. We received one month's rent. A year's payment is 1/3 of the cost incurred. They left to accept a better contract, even with a $30,000 loss. Councilwoman Monfor suggested we may spend more in attorney's costs, so it would not be worth while. Legal Asst. Sutcliffe replied it is a simple procedure. Councilman Wise said a large part of the $30,000 is capital investment, it will remain with the airport. Councilwoman Monfor noted, who is to say they won't be back? This could be a short term thing. Councilman Wise said they spent a lot to get into Kenai. They made a good faith effort and did not get the traffic. "�•";.i��htr_�'�!� fir; ?�';:3 Y VI r- KENAI CITY COUNCIL APRIL 1, 1987 PAGE 12 The facilities will be available for any future business. Motion passed unanimously by roll call vote. H-15 Airport Facilities Lease - Peninsula Classics MOTION: Councilman Wise moved, seconded by Councilwoman Bailie, to approve the lease. Motion passed by unanimous consent. I. ADMINISTRATION REPORTS I-1 City Manager None I-2 City Attorney None I-3 Mayor Mayor Williams spoke. a. He recommended 2 appointments for Beautification Committee: Geraldine Sparks and Dwayne Craig Council approved the recommendations by unanimous consent. b. Regarding the brochure to promote the City. These are to sell the City to those that may want to do business in Kenai. He saw a list of 30 companies with offices in Seattle doing business in Alaska. Councilwoman Bailie said she would like to review the proposals and add the slide show prepared for the winter Olympics. Mayor Williams asked Council to review the proposals before the next meeting. Councilwoman Monfor noted we have done so many things in the City. There are no pictures of the parks, and all the pictures were taken when it was not green. Mayor Williams noted this is a public document, it is not copyrighted. Council agreed to have an ordinance prepared. C. There are 7 people from the City going to the Resource Development Council meeting in Anchorage April 3, 4 & 5. 1-5 Finance Director None I-6 Public Works Director Public Works Director Kornelis noted item H-3a, Harbo Facility. The Harbor Commission will meet April 2, h asked Council and the public to attend if possible. I-7 Airport Manager Airport Manager Ernst spoke. APRIL 1, 1987 PAGE 13 y� a. On July 4 there will be a static air display in ti the City. They will have an F-14 or F-15. F- b. Last Feb. he was contacted by Elmendorf AFB regarding obtaining a T-33 trainer for display. Mayor Williams has made an official request. He a v 3 YGs-- hopes to have it by July 4. � J. PERSONS PRESENT NOT SCHEDULED To BE HEARD � �'.. a. Father Targonsky, Russian Orthodox Church, Kenai. He is representing Eadie's Frontier Club. He is -plat. She speaking in her behalf regarding a re ah is trying to sell her property, it had to be re-platted to sell. Hugh Malone was hired for the job. A letter was sent by Atty. Rogers to the Borough to not take any action till a zoning violation was taken care of. She has never been tnr t notified. Hugh Malone convinced Atty. Rogers they K J were 2 different things. It went to the Borough. Eadie than divided the 5 lots to 4 for final plat. It went back to P&Z to be at the March 24 meeting. sfi's `�`' It was not on the agenda. Eadie and Father r�fr err° Targonsky came to the P&Z meeting and spoke under �r 110. Persons Present Not Scheduled to be Heard. Planning Secy Loper said Atty. Rogers said it should not be on the agenda. Councilman Wise said it should be on the agenda. P&Z recommended approval. Father Targonsky told the Borough it was approved, they said they could not take action £, till they had official notification. They have ._:Y?zf ..,, = not received notification. He called Ms Loper and `s• ' °{ asked if she had notified the Borough. She said no, it was in the hands of the attorney. The City �risws �r ,: : is advisory with re -platting. Eadie is requesting �� the Council direct Administration to immediately notify the Borough of action taken at the last P&Z meeting in writing and orally. The Borough has said they would take oral notification from a City ' ;- official. The Borough will be closed Friday. The second matter was the zoning problem. It should be handled separately. There is nothing in City Code that says you must take care of zoning violations before re -platting. Councilman Wise said the Borough had sent a letter dated March 16 saying the revised plat was reviewed by P&Z at their 2nd meeting. It was sent to Hugh Malone. Upon presentation of the letter, P&Z asked why it was sent to the party and not P&Z. They were told Atty. Rogers said no. It was approved by the Borough and was waiting for approval by P&Z. It was added to the agenda and approved. Legal Asst. Sutcliffe said he would talk to Atty. Rogers and see if there is a problem. Mayor Williams noted both City Manager Brighton and Atty. Rogers are out of town. MOTION: Councilman Wise moved, seconded by Councilwoman Bailie, that Administration be directed to communicate with the Kenai Borough approval of the plat no later than noon, April 2, 1987 regarding Thompson S/D. Motion passed unanimously by roll call vote. Councilwoman Monfor asked what was the zoning violation. Father Targonsky replied, she has trailers KENAI CITY COUNCIL = - F APRIL 1, 1987 3 ' PAGE 14 in a light industrial zone. She will remove them now,, µ, " but it may be the end of the summer. C-3 Ord. 1196-87 it ,�rsk NOTICE OF RECONSIDERATION: r' Councilman Wise gave notice of reconsideration for Ord. 1196-87• ;q ) U 14ayor Williams expressers concern that reconsideration had to be given by the prevailing side, and there were only 2 votes on the negative side. Councilwoman Bailie gave Notice of Reconsideration, on the positive side. from the LRX egal.,;.: -'el« '.:. Mayor Williams requested an opinion Dept. regarding which way the notice of reconsideration-F TRA should be considered. ADJOURNMENT: - --_ '-` _ Meeting adjourned at 11:30 PM. r tJ Janet Whelan City Clerk r N t _g 7 t_.._�-h--,— urn �1 ­3