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Home My WebLink About1987-07-15 Council MinutesAGENDA KENAI CITY COUNCIL JULY 15, 1987 - 7:00 PM PLEDGE OF ALLEGIANCE A. ROLL CALL B. C. D. 1. 2. Roll Call 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 Min.) PUBLIC HEARINGS 1. 2. 3. 4. Ordinance 1221-87 - Increasing Rev/Appns - Leif Hansen Memorial Park Donation - $25,380 Ordinance 1222-87 - Increasing Rev/Appns - Float Plane Basin - $2,189,239 Ordinance 1223-87 - Amending Kenai Municipal Code Title 1 - Economic Development Commission Resolution 87-49 - Awarding Contract - Kenai Float Basin a. Award Inspection Contract to Wm. Nelson, Engineering r COMMISSION REPORTS 1. Planning & Zoning 2. Harbor Commission 3. Recreation Commission 4. Library Commission 5. Council on Aging 6. Airport Commission 7. Misc. Comm/Comm E. MINUTES 1. *Regular Meeting, July 1, 1987 F. CORRESPONDENCE 1. *Sen. Murkowski - Air National Guard Base 2. *Sen. Stevens - Air National Guard Base a.n{I 1777 3. 4. 5. r- *Major Genl. Schaeffer, AK Dept. Military & Veterans Affairs - Air National Guard Base *Deputy Comm. Borg, AK Dept. Military & Veterans Affairs - Air National Guard Base *Comm. Hoffman, AK Dept. Community & Regional Affairs - FY 187 State Revenue Sharing G. OLD BUSINESS H. I. J. NEW BUSINESS 1. Bills to be Paid, Bills to be Ratified 2. Requisitions Exceeding $1,000 3. Disc. - Grant Writing Proposal 4. Approval - Lease Application - R. Jackson - CIIAP S. Disc. - Columbia Ward - Application for AK Fisheries Business Tax Credit 6. Disc. - AK -Korea Business Council - Trade Show - Korea - Nov. 28 to Dec. 5 7. Approval - Comm/Comm Secretary Contract - FY 88 S. Approval - Rescission, Lease Agreement - Beluga Development - CIIAP ADMINISTRATION REPORTS 1. City Manager 2. Attorney 3. Mayor 4. City Clerk 5. Finance Director 6. Public Works Director 7. Airport Manager PERSONS PRESENT NOT SCHEDULED TO BE HEARD (5 Min.) ADJOURNMENT LE M KENAI CITY COUNCIL - REGULAR MEETING - MINUTES JULY 15, 1987 - 7:00 PM KENAI CITY HALL VICE MAYOR RAY MEASLES PRESIDING PLEDGE OF ALLEGIANCE A. ROLL CALL Present: Chris Monfor, Sally Bailie, Art McComsey, Ron Malston. Ray Measles Absent: John Williams, Tom Ackerly (excused) A-1 Agenda Approval a. Vice Mayor Measles asked that item C-4, (substitute Res. 87-49) distributed this date, be added to the packet. b. vice Mayor Measles noted material for item H-7, (Comm/Comm Secy) was distributed this date. c. Vice Mayor Measles asked that item H-9 (Monte Carlo Request, Special Olympics) be added to the agenda. d. Vice Mayor Measles asked that item H-10 (Change Order, Oteco Inc. - JABBA Project) be added to the agenda. e. Vice Mayor Measles asked that item B-1 (Senior Citizens Presentation) be added to the agenda. Council approved the agenda as amended. A-2 Consent Agenda MOTION: r Councilwoman Monfor moved, seconded by Councilwoman Bailie, to approve the Consent Agenda as submitted. f� Motion passed by unanimous consent. 3 y. B. PERSONS PRESENT SCHEDULED TO BE HEARD F -AF, B-1 Senior Citizens Presentation Betty Warren, representing the Council on Aging. She presented a check to the City of Kenai for a matching amount for the Senior Citizen van. She said they appreciate the support they have received from the City since 1971. The funds were raised by the Senior Citizens in many ways. The check is for $9,113.25. She presented the check to Councilwoman Bailie, Council Ad Hoc member to the Council on Aging. She noted there were 4 members of the Council on Aging in attendance. C. PUBLIC HEARINGS ---�- o---�::�a�uer.�a,�r-.,�`,zrs =sx� �'i.^^�,-"a.«s�==..-b.•-. - -.. 4 -<;J z Yt KENAI CITY COUNCIL TtTT.V 1 %. 1987 UN Page 2 C-1 Ord. 1221-87 - Increas. Rev/Appns - Leif Hansen Memorial Park Donation - $25,380 MOTIONS Councilwoman Bailie moved, seconded by Councilwoman Monfor, to adopt the ordinance. There was no public comment. Motion passed unanimously by roll call vote. Public Works Director Kornelis explained, the contractor has been ill, he will be starting next week. Councilwoman Bailie said the Beautification Committee is looking at a continuous service for landscaping of the Memorial Park. Wards Landscaping has provided drawings. They proposed the base to be $150-$200, depending on the size. The trees would be 2" in diameter, 8 ft. to 10 ft. tall. Some mould be clumped. Wards was the only one that met the criteria. The committee got some advice from the Anchorage Parks Dept. They contacted every landscape representative in the area. There are plaques available for $100. The memorials would not cost more than $350. Councilman Malston asked if the trees were guaranteed. Councilwoman Bailie replied, for at least one year. The Recreation Dept. cannot provide service. She noted the Legal Dept. did not feel comfortable with this. Atty. Rogers explained, he is not aware of the total expenditures on this. If it is professional services, there is no problem. If not, even though there has been work, we may have to go out to bid. He cannot advise Council without checking the Code. He noted this does not have to be decided this date. Councilwoman Bailie said the trees will not be planted right away, but people have contacted us that they want to participate. The Senior Citizens have volunteered to help handle arrangements with the families. Atty. Rogers explained, it is not an expenditure of public funds, this concerns him. Councilwoman Bailie laid it may fill up in one year or 10 years. Atty. Rogers explained a private individual must pay private funds to a private individual for a public service. Councilwoman Bailie said they will pay the City. Atty. Rogers explained, the City will act as intermediary. Councilwoman Bailie replied, they will be using a public facility. Atty. Rogers said he will have a report at the Aug. 5 meeting. City Manager Brighton asked, when will the park be ready for trees? Public Works Director Kornelis replied, the contractor has 60 days. He is having a hard time getting the designated materials. City Manager Brighton asked Councilwoman r— KENAI CITY COUNCIL JULY i5, i98 Page 3 Bailie if that created a problem. Councilwoman Bailie replied no, they are looking at a cut-off date of Aug. 16, but last year they were planting lawns in Oct. Public Works Director Kornelis said the bid requirement number is $6,500. If is is under this, we do not require a bid. Regarding professional services, we have had landscaping and trees in contracts before. C-2 Ord. 1222-87 - Ircreas. Rev/Appns - Float Plane Basin - $2,189,239 MOTIONt Councilwoman Bailie moved, seconded by Councilman McComsey, to adopt the ordinance. PUBLIC COMMENT: a. Charles Ross, 505 Pine, Kenai. He asked, what is the cost of the completed project? Public Works Director Kornelis replied, the basic bid is $712,353, the alternate (road into the float plane basin) is $57,668, the 2nd alternate (road into future lease holders) is $77,254. Mr. Ross asked if there would be floats in the lake. Answer - no. Mr. Ross asked, what will the annual operating cost be? Mr. Kornelis replied, there has been a report. He anticipates it will be very low. Mr. Ross asked, has the City made a survey regarding the numbers that will use it. Answer - yes. Mr. Ross asked, how does the City anticipate recovering the cost? He stated, his did not feel the City can recoup their cost and he did not want planes going over his house. Airport Manager Ernst replied, it will not be cost-effective. He explained, we received these moneys from the Federal government through enplanements. The stipulation is that we have 3 years to use the funds at the airport to improve services to the public. Cost-effectiveness does not enter into it. Mr. Ross noted Kenai is like Wisconsin - land of 10,000 lakes. There are alternatives to the float plane basin. We could use the funds for other airport uses. Mr. Ernst noted the City has had 2 public hearings regarding this. Mr. Ross said there are other uses for the money. He is worried the City will have something that is not economically feasible. Councilwoman Monfor expressed her concerns: a) When we expend this money, it will take out all the FAA allocation. b) Our dealings with FAA have never been great. She sees them deteriorating now. c) The Council has been most vocal regarding schools, now we � .. _ _ter �.�, •y UNAI CITY COUNCIL ' _F..YtJ Gy1 .JULi 15, 1`i107�, :- r Page 4 - are building a float plane basin that will not be cost = effective. d) No one has taken the time tc explain to her why we need this. Councilwoman Bailie said we are not going to be spending $2 Million, but $800,000+. We need to remind ourselves of a few years ago. The airport looked like a millstone for Kenai, it is now our greatest asset. In 1949 there were 10,000 people '3i-"° in Anchorage, now they have the largest float plane •:. basin in the world. This may not pay for itself for 5 ,��:•-Y:x: years, but it will in time. This is one way to diversify our income. Tourism is the 2nd largest industry in the State, we should tap into this. It has been very popular in other parts of the State. Councilwoman Monfor said regarding Lake Flood and Lake Spenard (float plane lakes in Anchorage), the only -sir--n difference between them and Kenai is this is muc;=2;.,=, smaller and planes coming in there are not landing over large subdivisions. Councilman Measles disagreed. _ VOTE ( Passed) : Yes: Bailie, McComsey, Malston, Measles No: Monfor Councilwoman Bailie asked if this includes landscaping. Public Works Director Kornelis replied yes, FAA requires us to do some seeding. Engineer Wm. Nelson added, about 70 acres. Councilwoman Bailie asked if he thought this was a feasible amount. Answer -yes. '- Councilwoman Monfor noted the difference in the bid amount, will the rest go back to ADAP fund? City z Manager Brighton replied, it is their intent to use State funds up front and the remainder ($300,000+) will go to ADAP. C-3 Ord. 1223-87 - Amend. KMC Title 1 - Economic y. Development Commission MOTION: Councilwoman Bailie moved, seconded by Councilwoman Monfor, to adopt the ordinance. - `- MOTION, Amendment: Councilwoman Bailie moved, seconded by Councilman Mccomsey, to amend the ordinance by adding changes - requested by Council at the July 1 meeting and incorporated into the Ordinance as distributed in the - - - - packet. VOTE, Amendment: -°"--__ Motion passed by unanimous consent. ram+-. .' -... - ___.•.c-.avJ.�r�y�y��r - .. - '�• d � .. _, z` 9 - 4 f. - ::zw .._ .__ 31. ___ --.:mot �VJ^•=��'��L,y.�;�'J i�LlY`►i Y111 YVV! �lY JULY 15, 087 Page 5 Councilwoman Bailie asked if the Council on Aging will be incorporated into the Code. Clerk Whelan replied, this has been requested by Council and will be done. There was no public cement. Councilwoman Bailie noted at the Development Council meeting in Anchorage, it was suggested a representative of education be included. Vice Mayor Measles noted that could be professional services or government. ADDED ITEM: Councilwoman Bailie suggested we need to give the comet/comet the right to elect their own chairman. That is not being done at this time. Atty. Rogers replied, Roberts Rules of Order presides. Vice Mayor Measles noted there have been appointments made on new commissions, but not on the old commissions. Councilman Malston suggested the election of the chairman should be in the Code. Atty. Rogers said he would review for Council. VOTE, Main Motion as Amended: Motion passed unanimously by roll call vote. ._ C-4 Res. 87-49 - Award. Contract - Kenai Float Basin }f ':a=u a. Award Inspection Contract - Wm. Nelson, Engr. -a MOTION: Councilwoman Bailie moved, seconded by Councilman McComsey, to adopt the resolution. There was no public cement. '--3-�»}�..'• Public Works Director Kornelis reviewed the substitute resolution. He explained the bid opening was this `5 P" ti•t._ date, there are some math errors in the bids, but the .�'f ';_ totals are correct. They can be corrected `r<<r administratively. Council directed Administration to x, correct these errors. VOTE (Passed): Yes: Bailie, McComsey, Malston, Measles No: Monfor C-4a Award Contract MOTION: Councilwoman Bailie moved, seconded by Councilman 3 XEMU CITY COUNCIL JUI.Y 15, 1987 Page b McComsey, to award the Kenai Municipal Airport - 1987 Float Plane Facility Improvements Inspection Contract to Wm. J. Nelson & Assoc. for the not -to -exceed contract amount of $168,400. There was no public comment. VOTE (Passed): yes: Bailie, McComsey, Malston, Measles No: Nonf or D. COMMISSION REPORTS D-1 Planning & Zoning None D-2 Harbor Commission Public Works Director Kornelis reported they have hired a dock manager. D-3 Recreation Commission r None x. D-4 Library Commission Librarian DeForest reported Mayor Williams has received wry' -tl. a plaque from the USS McKee. It will be on display in f1 the library for the summer. 3) They have had 94 people in the summer reading program. She asked if she could attend a library conference in Tacoma in August. MOTION: 1` Councilwoman Monfor moved, seconded by Councilwoman Bailie, to approve the request. Motion passed by unanimous consent. D-5 Council on Aging Councilwoman Bailie reported there was a meeting 7-13-87. The Seniors took one of 1st place awards in the 7-4-87 parade. rt D-6 Airport Commission L l- -71"t : . r-- KENAI CITY COUNCIL JULY 15. 1987 Page 7 Councilman Malston reported the last meeting was cancelled by the Mayor and a new chairman appointed by the Mayor. Vice Mayor Measles said the Mayor cannot appoint the chairman without approval of Council. Councilman Malston said the new appointee is a member of the Commission. Vice Mayor Measles noted he had a problem with the Mayor cancelling a meeting. Councilman Malston said he and Councilwoman Bailie were not notified. City Manager Brighton added the new chairman was not notified either. Vice Mayor Measles suggested the ground rules should be reviewed. D-2 (contd): Councilwoman Monfor asked, who is the new harbormaster? Public Works Director Kornelis replied, Wayne (Swede) Friden. He is from Kasilof. E. MINUTES Approved by Consent Agenda. F. CORRESPONDENCE F-1 Sen. Murkowski - Air National Guard Base F-2 Sen. Stevens - Air National Guard Base F-3 Major Genl Schaeffer, AK Dept. Military & Veterans Affairs - Air National Guard Base F-4 Deputy Comm. Borg, AK Dept. Military & Veterans Affairs Air National Guard Base F-5 Comm. Hoffman, AK Dept. Community & Regional Affairs - FY 187 State Revenue Sharing Approved by Consent Agenda. G. OLD BUSINESS None H. NEW BUSINESS H-1 Bills to be Paid, Bills to be Ratified MOTION: Councilwoman Monfor moved, seconded by Councilwoman Bailie, to approve the bills as submitted. Motion passed by unanimous consent. H-2 Requisitions Exceeding $1,000 MOTION: ..s Rl.IY!►1 b11I WYIUbiL JULY 15, 1987 Page 8 Councilwoman Monfor moved, seconded by Councilwoman Bailie, to approve the requisitions as submitted. Motion passed by unanimous consent. H-3 Disc. - Grant Writing Proposal City Manager Brighton explained, one of the problems is that the concept as originally proposed is not acceptable. Paying them as they get grants at no cost to the City cannot be done. We will have to appropriate the money on a grant -by -grant basis. It would have to come from general fund. Councilman Malston suggested these proposals be acknowledged and have a work session. He asked, if someone in the City is getting grants now, would they be getting a percentage also? City Manager Brighton explained, he understood this proposal would be grants from large private companies and would not transgress on what the City has done in the past. PUBLIC COMMM: Jack Brown, Birchwood, Nikiski. It would be cheaper for the City to look at an hourly basis. His figure is $50 per hour. It could be performance -based (number of hours available with a bonus if grant received). He has not been denied a grant in 8 years. Money is tough now; but in spite of the down -turn there is money available. Block grants for water & sewer will be going for economic development, the City could try for the float plane basin. Tourism, capital improvement projects, recreation centers, new facilities, service grants are available. There is a lot of competition. It takes 80 to 150 hours to write a grant application. Kenai is a 1st class city, they can request many types of grants. It is important to: a) look at the grant writer's ability. b) look at his legislative contacts. c) look at his ability to have a good working relationship with State employees. Councilwoman Bailie asked, a) does the City have to tell him what to request or does he do this? b) is it geared to a certain time of year or are they all through the year? Mr. Brown replied, you get on State and Federal mailing lists. You also have to read the newspapers. A grant writer should work directly with the City Manager and should have a detailed contract. Councilwoman Monfor said Kenai has a lobbyist, would it be worthwhile for him to work with the grant writer? Answer - yes. Councilwoman Bailie suggested Council meet with the lobbyist in Sept. City Manager Brighton replied Council should have their priority list 1st. Council agreed to have a work session 9-9-87 at 7:00 i z2 L - ir-• Sri? KENAI CITY COUNCIL JULY 1S, 1987 Page 9 w �'- Pm. H-4 Approval - Lease Application - R. Jackson - CIIAP�� _ r �NOTION: MOTION s .r r Councilman Malston moved, seconded by Councilwoman AA I rs� `s P " /L - Bailie, to approve the request. Councilman McComsey noted P&Z had approved the request. v } Motion passed by unanimous consent. 1 ' kit -Columbia ward - Appl for AK Fisheries Business H-5 Disc. - Tax Credit did _ - City Manager Brighton explained Council not have to -w'act on this right now. The City has not received a rYy' copy of the application, but we cannot do anything till a �.- the State approves. Salamatof made an application to w_ the State, it was approved. Council had rejected it #, 3 H because it was not timely. This is the same thing. i 4, This is why Council has asked for a change in fish tax c laws. It can deplete the amount the City gets and have 3,'/'no bearing on the amount the Borough gets. F� h Councilwoman Bailie asked if we had made the State aware of this fact. Mr. Brighton replied some legislators and DOR have been made aware. A bill will x ` be pre -filed before the next legislative session. He ��..t:. has talked to Homer & Seward city managers, they will support this. Kenai legislators asked him to talk to the Borough Assembly members and iron it out 1st.. Councilwoman Bailie suggested we share with the Borough till this is ironed out. Mr. Brighton replied he did not think they would agree to this. Councilwoman Bailie suggested we try to work this out with the State tK Atty. Genl. office. Mr. Brighton explained the idea behind the original bill was good. it was designed to T � add additional tax base to an area by enouraging up -dating of the plants. Part of the flsh tax would _. come back to them. But the problem is, the Kenai ; Borough is unique. Councilman McComsey asked, have these permits been approved by the State? Answer - -'�xyes. Mr. Brighton expressed concerns: a) We have s f; spent money to improve the economic climate. We are not responsible for this law. If we reject this, we x may undo a lot of that. b) With a 2nd class borough ` °rs and a 1st class city within, there is an unfair situation the legislature is not aware of. -� Councilwoman Bailie said Council has the option to _ .. refuse payment. Can we approve partial payment? Atty. V.� . Rogers replied, that would be disapproving it. He did ; r9 not think we had that option. Councilman Malston asked if this was aone-time deal. Mr. Brighton replied they .. ;., )T k 2 r"� L •zz �. r '3J LM a t� a Mik .. F�. ��• iy��S C '- '� _ _tit KENAI CITY COUNCIL RMY 1S, 1997 Page 10 can come back every time they have a major project. He explained, fish tax collected by our processors in Kenai is split 50% by the State, 25% Borough, 25% City. Finance Director Brown explained, they apply to the State for credit, the State approves. If the City wants to, they can get the City portion. If the City takes no action, they are not getting anything. Mr. Brighton noted if we do not get the law changed, Salamatof will be back. Vice Mayor Measles asked, if we approve this, will it weaken our position? Mr. Brighton replied he did not think it will have any bearing. We are asking that the State get 50% and we get 50% inside the City; outside the City, the State gets 50%, the Borough gets 50%. Councilman Malston said we should send a letter to Columbia Ward explaining why we are not taking action. Council agreed to the suggestion and took no further action. H-6 Disc. - AK -Korea Business Council - Trade Show, Korea - Nov. 28 to Dec. 5 Councilwoman Monfor said she did not think there was anything we can do that the State cannot do. Council took no action. H-7 Approval - Comm/Comm Secretary Contract - FY 88 Councilwoman Monfor said we should take into consideration that we now have Airport Commission, Economic Development Commission, Harbor Commission and new Bicentennial Commission. It is money well spent. It has taken a load off Administration. She has appreciated completed minutes in the packet. There is a lot of work involved. Councilwoman Bailie said because of the city's volunteers we have saved money. We have tried other things like tape recorders, the minutes were late. She feels she knows what is going on when she reviews the minutes. It does exceed the budget, but does Council feel it was effective? MOTION: Councilwoman Bailie moved, seconded by Councilwoman Monfor, to accept Peninsula Postal bid. Councilman Malston said he has been on commissions without a secretary, you lose continuity. Clerk Whelan explained, the bids came in much higher than budgeted, this would be $23 to $40 per hour. City Manager Brighton said the person who had the bid last year did an excellent job. He suggested we negotiate. L C!1 KENAI CITY COUNCIL JULY 15, 1987 Page 11 Councilwoman Bailie asked, what does this do to the bidding process? If it comes in high, can we go out for negotiation? This is a professional. We pay $100 to $150 to other professionals. Councilman McComsey asked if we could reject and go out to bid again. Councilwoman Monfor noted the $750 bid does not include benefits. MOTION, Withdraw: Councilwoman Bailie, with consent of second, withdrew her motion. Councilwoman Monfor suggested putting a not -to -exceed amount in the bid. Vice Mayor Measles suggested also a not -to -exceed amount for hours. Councilman Malston suggested going out to bid with an hourly rate. Clerk Whelan replied she had proposed it this way and it was changed. Finance Director Brown explained, the Legal Dept. felt it would make the applicant an employee. Vice Mayor Measles said we do not want another employee, but we do not want to pay more than the other employees. Councilman Malston asked, don't we have any other employees that are hourly? Atty. Rogers replied, the problem is with secretaries, are they professional? Training, experience, supervision, etc. - the courts and workmans' compensation call them employees whenever possible to allow them to collect benefits. He had no problem with rejecting and re -bidding. He added, the original contract said "under the supervision of the Clerk." He thought that sounded like an employee so he took it out. Councilman Malston asked if the bidders realized this is a 30 hour month. Clerk Whelan replied it was in the bid specs. Councilwoman Bailie said if we re -bid we should be more realistic about the hours. Council agreed by unanimous consent to go out for re -bid. H-8 Approval - Rescission, Lease Agreement - Beluga Development - CIIAP Councilwoman Monfor asked, how far are they behind? Finance Director Brown replied, they have not paid the amounts of the increase. They have been good in the past. Atty. Rogers said if we enter into mutual rescission, he suggested a motion to rescind subject to negotiation as outlined in his memo dated July 10. He noted the other attorney is willing to negotiate as of this date. MOTION: L L p { zq e - KENAI CITY COUNCIL JULY 15, 1987 Page 12 Councilwoman Monfor moved, seconded by Councilwoman Bailie, to have a mutual rescission with Beluga Development and have negotiations per Atty. Rogers memo of July 10, 1987. Motion passed by unanimous consent. H-9 Monte Carlo Request - Special Olympics Councilwoman Monfor asked if this is a real person. Clerk Whelan replied she has talked to him on the phone. Councilman Malston suggested approval upon Atty. Rogers checking out the legitimacy. Atty. Rogers replied he cannot pass on legitimacy. He can run it through the Police Dept. Vice Mayor Measles said he has talked to Mr. Birch. Councilwoman Bailie suggested we ask for references. Councilman McComsey noted they did not come to the meeting. Councilwoman Bailie said time is of the essence, there is a problem with raising the money now. Atty. Rogers explained, in the past Council has never looked into the past of these requests. There is a body of law that takes care of this. For Council to get into subjectivity is a matter Council has not done in the past. Councilwoman Bailie noted, what if he took off with the money? There is a concern because money has been mis-used here. Atty. Rogers advised Council to act on the information they have. The burden is on Mr. Birch. He added, he would be uncomfortable in carrying out Council direction to pursue more facts. They should come to Council. Councilman Malston said normally we are familiar with the ones that come through and they are approved. They are asking for something, we do not know them. He felt an obligation to approve to help the kids, but he felt uncomfortable not knowing anything about this. He asked, where is the application? Clerk Whelan replied, - =}_ su ested a s:w;sip it is in Juneau. Councilwoman Monfor gg Clerk Whelan telephone poll if we can get information. replied, that can only be done if it is financial, we could have an opinion poll. Finance Director Brown said Airport Manager Ernst knows Mr. Birch. Atty. Po g -_; Rogers said there is nothing before Council. =":` Council took no action. H-10 Change Order, OTECO Inc. - JABBA Project Councilwoman Bailie asked, why didn't the engineer put in the design if it is needed? Public Works Director Kornelis explained, he reviewed the drawings and found a problem. He tried to get OceanTech to put a ditch in, there was a small ditch there. The Corps. of Engineers required they fill it in. This was the only way to get drainage. He did the best he could with the ^r L 4 KMAI CITY COLIKIL JULY 15, 1987 Page 13 drainage, a new property owner came to him and asked for a ditch. He contacted the property owners, now they are in favor of it. DEC requires a siltation barrier. Councilwoman Bailie asked, what would happen if the new property owner had not convinced then? Mr. Rornelis replied, the area around the road would have been flooded. There was no solution at that time. 1-Y %,4UT Councilman Malston moved, seconded by Councilwoman Monfor, to approve the request. Motion passed by unanimous consent. I. ADMINISTRATION REPORTS I-1 City Manager Councilwoman Bailie asked City Manager Brighton if he had contacted FAA regarding the new facility. Mr. Brighton replied, he will be hearing from an FAA representative 7-16. Over the phone he had indicated the small communities involved are complaining to their senators. They are "stonewalling" it. Mr. Brighton felt FAA would go ahead with the project. He told FAA there would be substantial objection if they move in without paying $40,000. The City is not spending $1.5 Million on a facility for them to move out of a facility and move in free. He told Mr. Brighton he understood, he will get the transfers in. Councilwoman Bailie said we did our part in good faith. They said by 1990 they would be moved, now they are saying 1992. Mr. Brighton said they will move some people immediately upon moving into the facility. It may be 1992 before they complete it. Councilwoman Bailie said there is a good chance it may never be completed with the forces involved. The airlines assoc. is lobbying against it. Sen. Stevens is against it. She suggested we discuss put in an addition to the contract that they live up to the agreement. Councilman Malston said we should correspond with our representatives regarding this. Councilwoman Bailie said we should have this in writing. There is nothing in the contract but they committed themselves in discussion. Sen. Stevens has said he cannot support unless he is assured 100% there will not be a problem. We cannot assure that. Alma C k d if there is a time when this Counc n Mc omsey as e is a contract and we can evict them if they do not bring people in. If not, we should not let them move in. Atty. Rogers explained, over the course of - --- meetings and revisions of contracts, there is almost unfettered discretion for FAA. There is some ground for a good faith contract for the City but it is not a ti . 7 i rr 61 r-- KENAI CITY COUNCIL DULY 15, 1987 Page 14 strong contract for the City. Councilman Malston said they are not living up to their end of the bargain. Mr. Brighton explained, there is nothing to live up to till Sept. They were supposed to bring 70 to 80 families in. Councilman Malston said they have a $2-1/2 Million building for $1 per year for 20 years and option for the next 20 years. They said they wanted to move in by 1987, now they are not going to. Do we have room for negotiation? Mr. Brighton replied, we do not know what they will do. Councilman Malston said at this point Mr. Brighton is in contact with FAA, we should let him negotiate. Councilwoman Bailie suggested an amendment that occupying of the building will begin in 1987 and all people will be moved in by 1990. At that time if they do not fulfill their agreement, rent will be levied retroactive to the 1st date of occupancy. Mr. Brighton noted by translating this message they will know we are serious about this. I-2 Attorney None I-3 Mayor None I-4 City Clerk Clerk Whelan spoke. a. b. C. The AML reception in conjunction with Soldotna is scheduled for 7-17-87. She asked for a count of Council members attending. There is a balance of 13 days on the Freedom Almanac production on KCSY. The Chamber has prowouldsed payttheaother 1/2. ThemCitynsharesif Kenai would be $75. Council agreed to participate. She asked for leave time from 7-31 to 8-10. Council agreed to the request. I-5 Finance Director None I-6 Public Works Director a. Councilwoman Bailie asked about the status of the Triangle Park. Public Works Director Kornelis a VY.NAI CITY COLINCII, JULY 15, 1987 Page 15 L `U r" replied he is trying to see if we can do it ourselves. Councilwoman Bailie asked it we can do it this year. Mr. Kornelis replied, he is not sure we can do it in-house. It will be more expensive to contract, it will be labor intensive. Councilwoman Bailie noted there was money for Airport Way seeding that could be used. We could go out for bid, if the bid comes back too high, we can do it in-house. We have to shoot the contours and place the timbers. The material is here. Mr. Kornelis replied we have the railroad ties, but not the gravel, sand or re -bar. b. Councilman McComsey asked about the status of oiling the streets. City Manager Brighton replied it is a dust suppressant. The City will be doing more. Mr. Kornelis added, he is continuing the program, we do not know if we will do the same roads. They add 50% water to it, rain will not hurt it. Councilman McComsey noted his street is dusty already. Mr. Kornelis explained, it will keep dust down, but not surpress it. C. Councilwoman Monfor suggested Council should start thinking of 1988-89 Capital Improvement List instead of waiting till the last minute. We should have a work session in Sept. She asked to have the 1987-88 CIP list in the packet for the 8-5-87 meeting. 1-7 Airport Manager None J. PERSONS PRESENT NOT SCHEDULED TO BE HEARD a. Joe Nord, Allied Processing, Kenai. He has a lease at the City dock. He is asking for a variance on off-loading tenders. $.03 per lb. is good for drifters, but it is not enough for tenders. He would like it to be 1-1/2 cents. The tenders come in the day after the fishing period. there is a possibility of $15,000 if he can do this. He has talked to Larry Powers (lessee at City dock). He has made overtures to the tenders. They can go to Salamatof for less, Arness dock is cheaper but is out of the way. We can give better service than Salamatof, but cannot do it at $.03. Councilman McComsey asked if $15,000 was for one time. Mr. Nord replied, for the season. He added, it will not be a hindrance for the drifters, it is a different time. Councilman McComsey asked, what do the fishing boats bring in? Mr. Nord replied, about 5,000 to 10,000 lb. in the peaks. Councilman McComsey noted it would be money we would not be getting otherwise. L L r r KESAI CITY COUNCIL JULY 15, 1987 Page 16 Councilwoman Monfor said since this is the 1st of the season, we should be flexible and see what works. She suggested we work with the lessees, she would hate to think they would not come back next year. City Manager Brighton said the City has a negotiated contract. if we reduce one individual cost by 50%, we will have to reduce others. Atty. Rogers said during the bid process a proposal was made by Mr. Nord and accepted by the City. It was incorporated into a contract. At this time there is a request for the City to take less than bargained for. If Council can find a public benefit, they can approve. Councilwoman Bailie asked if we had discussed the idea of tenders off-loading in the original contract. Mr. Nord replied no, just boats. Mr. Kornelis said, the contract says $.03 per lb. for all fish. Councilwoman Bailie said you can get a better price with a large amount. Mr. Nord said a tender can bring in 130,000 lb. Councilwoman Bailie asked, how does this work at other docks? Mr. Nord replied, 2-1/4 cents at Salamatof. They furnish labor, crane and put it in the truck. This is for tenders. He added, this will generate extra revenue for the City. Councilman McComsey suggested we try it for a season. Councilwoman Monfor noted Mr. Nord is an experienced processor. He should have realized this. But because it is the 1st year, she is more willing. Some processors feel we are in competition, they feel it is private vs public. If we get 1-1/2 cents it should be for all. The run will be here in a few days, we cannot wait. vice Mayor Measles said he was concerned if this will broaden the private vs public gap. Will this create additional problems? Mr. Nord said he talked to Salamatof, they felt it was okay. They charge 2-1/4 cents. They braille them out. Mr. Kcrnelis noted some of the problems are with the fishermen. They are afraid of the barge out there. They do not like to sell fish at one place and buy fish at another. Once the facility is complete it will help. The tenders are bigger than the boats, they could not get in with the barge there. It is gone now. The contractor pays a lump sum at the beginning, they do not pay at $.03 till they reach that sum. Councilwoman Bailie said we have a facility we have to recoup costs, but we do not want to be in competition with private enterprise. Mr. Kornelis said we are in competition with the processors on the river. This is for processors that do not have access to the water. MOTION: i KENAI CITY COLXCIL JULY 15, 1987 Page 17 Councilman McComsey moved, seconded by Councilwoman .i.z...n. Bailie, to have both lessees pay 1-1/2 cents tiler lb. 4A�A for tenders only, on off -hours. rY w Mr. Nord added, priority to drifters. Atty. Rogers 2'w'* said it would be effective immediately, but it will take time to modify the contract. t+� L• t.�r�i' t . - r Motion passed unanimously by roll call vote. z,rY.iM: b. Councilwoman Monfor asked that the discussion P1.ki.g3�aF regarding the Mayor appointing comet/Comm chairmen ' ry, be discussed with Mayor Williams. Vice Mayor hi -light the _s� TZ Measles asked Clerk Whelan to portion of the minutes for the Mayor. fry C. Councilwoman Bailie noted the proposed , Nikiski/Sterling cut-off will be beneficial to f Kenai. It would allow campers to take an alternate route. They bypass now and go to Homer. City Manager Brighton asked if it has been determined where it will be. Vice Mayor Measles tom,`F} replied it is a rough idea only. It will be just a narrow dirt road, possibly on the Swanson River V-W.�� Rd. Councilwoman Bailie said we should encourage ��- �x more than a narrow road, it will bring tourism into the City. Campers like things out of the ordinary: whales, mountains, moose, refineries. 1 p ri' She recently saw a sign that said, "Reap the Peninsula Green, Bless the Tourist." d. Councilwoman Monfor noted all the roads need work. Even the back roads in Washington State are better than this main road. ADJOURNMENT: Meeting adjourned at 11:07 PM. )/J— - V Janet Whelan City Clerk __-+-^z.�Suma�tsw.---_.... .. _ ..,...,.wro.�*.ia-d • _. a.«� �.�.:»+—. rt