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HomeMy WebLinkAbout1986-12-17 Council Minutes- AGENDA r KENAI CITY COUNCIL - REGULAR MEETING DECEMBER 17. 1986 PLEDGE OF ALLEGIANCE A. ROLL CALL B. C. 1. Agenda Approval 2. Consent Agenda *All items listed with an asterisk (*) are ,o•�- 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.) Y PUBLIC HEARINGS 1. Ordinance 1171-86 - Amending Kenai Municipal Code - Off -Road Vehicles , a. Substitute Ordinance 1171-86 2. Ordinance 1177-86 - increasing Rev/Appns - Senior Citizen Van - $20,000 J.: 3. Ordinance 1178-86 - Amending Kenai Municipal Code - Providing for Purchasing and Contracting with City Employees and officers .° . . 4. Resolution 86-111 - :+warding Contract - Display;:u': Kiosk in Airport Terminal - Kenai Peninsula Foto S. Ad Resolution 86-113 - Limiting Duration of Council l - 6. Meetings Resolution 86-114 - Transfer of Funds - Cable and 7. Printer - Public Works Computer - $1,347 Resolution 86-115 - Transfer of Funds - Economic - r Development Committee - $1,450 :=G S. Resolution 86-116 - Transfer of Funds - overtime, 9. Street Dept. - 87 , 090- Resolution 86-117 - Transfer of Funds - Overtime, _ City Shop - $2,260 -.----------- : 10. Resolution 86-118 - Transfer of Funds - Hire Temporary Employee - Public Works - $16#000 11. Resolution 86-119 - Transfer of Funds - Cellular a' Telephone System, Ambulance - $3 , 500 12. Resolution 86-120 - Urge Congress to open ANWR.-.=`` Coastal Plan to Oil & Gas Development 13. Resolution 86-121 - Transfer of Funds - Completion `. of Ticket Counters• Airport Terminal - $36,500 14. Renewal of Liquor License - Casino Bar & Liquor License D. REPORTS i. City Manager 2. City Attorney- 3. Mayor 4. City Clerk S. Finance Director 6. Planning & Zoning 7. Harbor Commission 8. Recreation Commission' 9. Library Commission _... _ _ _. _ „_ "_ _ 8. MINUTES 1. *Regular Meeting, Dec. 3, 1986 a .. F. CORRESPONDENCE - 1. *Academy of State & Local Legal Center - Letter of - ha Appreciation G. OLD BUSINESS H. NEW BUSINESS 1. Bills to be Paid, Bills to be Ratified s_ 2. Requisitions Exceeding $1,000 3. *Ordinance 1179-86 - Amending Kenai Municipal Code - Delete Word "Advisory" from Planning 4. Zoning Section *Ordinance 1180-86 - Amending Kenai Municipal o`=; Code - Supplemental Assessments for Special _ S. Assessment Districts *Ordinance 1181-86 - Amending Kenai Municipal _.. Code - Adopt National Fire Code and Uniform Fire - 6. Code *Ordinance 1182-86 - Amending Kenai municipal Code - Location of Polling Places 7. Discussion - Request for Purchase of Tract F, Dena' ina Pt. Estates - Dave Brown S. Discussion - 1987-80 Capital Improvement List - - 9. Discussion - Request for Concession Stand, Airport Terminal - Charles Woodcock 10. Lease -Airport Terminal - Friendship Air Alaska 11. Assignment of Lease - Metropolitan Mortgage (Katmai) to Lynn Jones) 12. Discussion - New Street Lights 13. Discussion - Kula Rentals - Extra Compensation 14. *names of Chance & Skill - KCHS , QD i. PERSONS PRESENT NOT SCHEDULED TO HE HEARD (5 Min.) a. Council Comments; ADJOURNMENT _ 1 { r t1 _ .�• •,.. - ,mil- :., .I'�� '"..+-w•e,-E"-^y^-+"^_'^^. .^^ _".+`�:ev.nR.'o��_, - _.tg-..r-�....-....__. .--....-�--�esxr�—p._.^'--•:-�� - _ - .- .��.. _ •�,::;;Fif . (♦ • . f: KENAI CITY COUNCIL - MINUTES - REGULAR MEETING a..- DECEMBER 17, 1906, 7500 PM KENAI CITY HALL MAYOR JOHN WILLIAMS PRRSIDING i PLEDGE OF ALLEGIANCE A. ROLL CALL i Present: Chris Monfor, John Wise, John Williams, Tomes :.: Ackerly, Sally Bailie, Art MCComsey, Ray - -D. - Measles ` `4 Absent: None A-1 Agenda Approval - -- - M l•, - a. Mayor Williams asked that Dan Roberts, Lease, Baron Pk. S/D, be added as item B-1._a b. Mayor Williams asked that Res. 86-122 - in the 1 - packet - (Supporting Cook Inlet as Terminus of Yukon -Pacific Natural Gas Pipeline) be added as item C-15. He explained, the meeting regarding this item was late 12-12-86, and the resolution �= was not prepared till after packet was complete. Co Mayor Williams noted Roe. Comm. minutes were distributed this date (item D-8). -" d. Mayor Williams noted the letter from the Library : ' Comm. distributed this date (item D-9). e. Mayor Williams asked that the PO distributed this date for $10755 (Merit inn), costa for Christmas party, be added under item H-2 (Requisitions Exceeding $1,000). f. Mayor Williams noted item H-8 (C.I.P. listing), he will be scheduling a work session for this. g. Mayor Williams noted additional material for item �V H-11 (Assignment of Lease - L. Jones) distributed this date. h. Mayor Williams noted item H-13 (Kula Rentals) has = ; an additional page distributed this date. Council approved the agenda as amended. A-2 Consent Agenda - MOTIONS Councilwoman Bailie moved, seconded by Councilwoman Monfor, to approve the Consent Agenda as submitted. Councilman Wise asked that item H-4 (Ord. 1180-86) be deleted from the Consent Agenda. °E= Notion passed by unanimous consent. e �4 J R ` u ct 5' y._. .. - All . c3Jw.3.:-4: "•-'^nil-!�.-. , � . - .. - - , s Kenai City Council Dec. 17, 1986 Page 2 B. PERSONS PRESENT SCHEDULED TO BE HEARD-- B-1 Dan Roberts - Lease - Baron Pk. S/D Dan Roberts, Kenai. He reviewed the memo distributed ' this date from Admin. Asst. Gerstlauer. He explained, he is going for a commercial loan from the bank. They ;requested it be subdivided as tar as the lease is concerned, based on pro rat& sq. footage, as explained by Atty. Rogers in his memo. ,M Councilman Wise moved, seconded by Councilwoman Monfor, to approve the request. Atty. Rogers explained, pro rate is the amount of money relevant to the original leasing. There will be new leases but the date will remain the same. Notion passed by unanimous consent. C. PUBLIC HEARINGS72 C-1 Ord. 1171-86 - Amending KNC - off -Road Vehicles a. Subst. Ord. 1171-86 NOTIONS Councilman Ackerly moved, seconded by Councilwoman a, `=• Bailie, to adopt the ordinance. _ MOTION, Amendment: ., Councilman Wise moved, seconded by Councilwoman Bailie, to amend the ordinance to substitute Ord. 1171-86. The was o There a n public comment. Notion passed unanimously by roil call vote. Councilman Ackerly requested this be advertised extensively. C-2 Ord. 1177-86 - Increas Rev/Appns - Senior Citizen Van - MOTIONS - Councilman Measles moved, seconded by Councilman Ackerly, to adopt the ordinance. There was no public comment. Kenai City Council Dec. 17, 1986 t .. Page 3 Councilman Wise noted this is connected to Nikiski. 71 Motion passed unanimously by roll call vote. - C-3 Ord. 1178-86 - Amend KMC - Providing for Purchase & Contracting with City Employees & Officers NOTION: Councilman Ackerly moved, seconded by Councilwoman Bailie, to adopt the ordinance. : PUBLIC COMMENTS - a. Lynn Jones, Kenai. He asked for an explanation. - �- Mayor Williams explained, Council has suggested this be prepared. The Charter provides for .. `- purchases of not more than $500, but there has y`^' never been an ordinance. This is a housekeeping ordinance. �" 2 Councilman McComsey noted he did not believe he was the one who requested this. Councilman Wise noted he had- -, Councilman McComsey noted he did4306worth of 17. business with the City last year, 00 this year. He $�4 requested abstaining from the vote. VOTE (Passed): .. Yes: Monfort Wise, Williams, Ackerly, Bailie No: Measles " Councilman McComsey abstained. .` C-4 Res. 86-111 - Award Contract - Display Kiosk in Airport -r- - - Terminal - Kenai Peninsula Soto Ad MOTION s 0 Councilwoman Bailie moved, seconded by Councilwoman Monfort to adopt the resolution. o '. There was no public comment. =- Councilwoman Bailie noted Mr. Zimmerman had said he �....`:.° would have a design in decor with the airport. Mr. - ----- ------ -='_ �: Zimmerman spoke. He will change the white panels to oak. Mayor Williams asked if there were other requests. Airport Manager Ernst replied, the Council directed an RFP be prepared in June. It was advertised. This was the only one returned. Motion passed by unanimous consent. C-5 Res. 86-113 - Limiting Duration of Council Meetings �Y :Lal �M Kenai City Council Dec. 17. 1986 Page 4 MOTION: Councilman Ackerly moved, seconded by Councilwoman Bailie, to adopt the resolution. There was no public comment. Councilwoman Monfor explained she asked for this because Council members have other businesses. It is inconvenient to come back but she does not function well after a certain amount of time. She would rather come back another day. This has not happened many times. Councilman Measles noted Council has the capability of ending meetings any time they desire by motion of a single councilman. He would have a problem if they could finish within 15 min of midni ht g Councilwoman Bailie said it could be used asa political ploy at times. Councilman Wise noted it is not binding by resolution. Mayor Williams said a motion to adjourn is non -debatable. All members can be excused at any time. VOTE (Failed): Yes: Monfor, Wise, Ackerly No: Williams, Bailie, Mccomsey, Measles C-6 Res. 86-114 - Transf. of Funds - Cable & Printer - Public Works Computer - $1,347 MOTION: Councilwoman Bailie moved, seconded by Councilwoman Monfor, to adopt the resolution. PUBLIC COMME M: a. Dave Jochman, 1603 Toyon, Kenai. The Legal Dept. =A and Public Works Dept. are purchasing computers for $3,500 each. He represents Xerox and other small business men. He came to Administration Dec. 16 and was told the decision was already made. These will be brought out of Anchorage. _ y The price is $3,591. His product is $2,025 for n GSA, $2,475 for State and local Funds. There is a...:_ significant savings. His machine is the same. -a - -.- ------ - =� Xerox is a large franchise, but he is local. He has 4 people locally. Mayor Williams has said the economy is slow and we are trying to get business here, but we are going to Anchorage for these. Atty. Rogers noted the memo distributed this date from Legal Asst. Sutcliffe. Mayor Williams asked-�° that this be discussed under item H-2, purchase of the computers. Council agreed to the request. • .... ., Q ... ..�_- it .. _'";'�i. • - bra • _ . , , CI _. _ Q. Kenai City Council Dec. 17. 1986 Page 5 Motion passed by unanimous consent. C-7 Res. 86-115 - Transf. of Funds - Economic Devel. Committee - $1,450 MOTION: Councilman Measles moved, seconded by Councilwoman Monfor, to adopt the resolution. There was no public comment. Mayor Williams explained, when this was discussed, he indicated he would like a minimal budget for meetings. There may be trips to Anchorage for the chairman, office supplies and phone charges. Motion passed by unanimous consent. C-8 Res. 86-116 - Transf. of Funds - Overtime, Street Dept. $7,090 MOTIONt Councilman Ackerly moved, seconded by Councilwoman Nonfor, to adopt the resolution. There was no public comment. Councilwoman Bailie asked if this is for snow plowing. Public Works Director Kornelis replied yes, they have not had much overtime because of little snow. The flooding and the big snow were on a week end. They have had much sanding. They will get some money back from the flooding. It will not go back to the general fund. Councilwoman Bailie asked if they could reschedule the work so they had night shifts. Mr. Kornelis replied, they do if the storm lasts a long time. With 5 people it is important they are all on. Councilman Ackerly asked if this will be charged to the airport. Finance Director Brown replied, it is. NCO Kornelis added, there was a budget for overtime, but it is getting close. Motion passed unanimously by roll call vote. C-9 Res. 86-117 - Transf. of Funds - Overtime, City Shop - $2,260 MOTION: Councilwoman Nonfor moved, seconded by Councilman Measles, to adopt the resolution. y "nal City Council Doc. 17. 1986 Page 6 There was no public comment. Motion passed by unanimous consent. C-10 Res. 86-118 - Transf. of Funds - Hire Temporary Employee - Public Works - $16,000 MOTION: Councilwoman Monfor moved, seconded by Councilman Measles, to adopt the resolution. There was no public comment. Motion passed by unanimous consent. Councilman Wise said we do not break even with hiring a temporary employee. The work will not get done, time will be spent on other things. It should be contracted out. Public Works Director Kornelis explained, last summer he hired an engineering technician with drafting experience, he had his own tools. He would probably be the one the City would use. It is cheaper to do it within the City, wages would be lower. He will be available Jan. 1. Mayor Williams noted they had a person in mind. This is not a job going out to the free market. The individual has been ear marked. Now the money is being ear marked for it. Councilwoman Monfor said we could be wide open this way. Why can't we contract with him? Mr. Kornelis replied he would need a business license. Finance Director Brown added, this was discussed. He would have to assume liability. if he is an employee, the City is liable. Mr. Kornelis said this person works for an engineering firm. All drafting for the boat facility was done by him. He will be a temporary range S. City Manager Brighton said we hired this person last summer. He is exemplary. Councilwoman Monfor said, as long as he is temporary. Councilman Ackerly asked if the drawings require an engineer's stamp. Mr. Kornelis replied no, this is a draftsman position. VOTE (Passed): Yost Monfor, Williams, Ackerly, Bailie, McComsey, Measles No: Wise C-11 Res. 66-119 - Transf. of Funds - Cellular Telephone system, Ambulance - $3,500 MOTIONS • f1 .. Kenai City Council Dec. 17, 1986 Page 7 U Councilwoman Monfor moved, seconded by Councilwoman Bailie, to adopt the resolution. There was no public comment. Motion passed by unanimous consent. C-12 Res. 86-120 - Urge Congress to Open ANWR Coastal Plan " f to Oil & Gas Development .. ....... I. _ ... MOTIONt Councilwoman Bailie moved, seconded by Councilman Ackerly, to adopt the resolution.:` There was no public comment. Motion passed by unanimous consent. C-13 Res. 86-121 - Transf. of Funds - Completion of Ticket Counters, Airport Terminal - $36,500 MOTION: v Councilman Ackerly moved, seconded by Councilwoman Monfor, to adopt the resolution. There was no public comment. Councilman Ackerly asked the City normally does the ' improvements. Airport Manager Ernst replied, at one L time BRA had entered into an agreement to do this, but SeaAir left and BRA did not complete it. The City has built all the others in the terminal. The City agreed to deduct from the rent with M. It would become ours when they left. Councilman Ackerly asked if the City could include in leases any partial compensation from anyone if they leave? Mr. Ernst replied it is capital improvements and is the City's. There would be no need. it is funded from Airport Terminal contingency. ,•mot Motion passed by unanimous consent. C-14 Renewal of Liquor License - Casino Bar & Liquor Clerk Whelan said all taxes are current. MOTION: - -- --'- -,--- --- t Councilman Ackerly moved, seconded by Councilwoman 'f Bailie to send a letter of non -objection to ABC regarding the Casino Bar. =, There was no public comment. �.—••--..�.—.ter.. ----K- -- ._.._. �— O St ;" • Kenai City C°ouncil Dec. 17, 1986 Page 8 Motion passed by unanimous consent. C-15 Res. 86-122 - supporting Cook inlet as Terminus of Yukon -Pacific Natural Gas Pipeline MOTIONt Councilman Wise moved, seconded by Councilwoman Bailie, to adopt the resolution. Councilman Wise reported, he and Councilman McComsey met 12-12-86 with Corps. of Engineers, DEC and Kenai Borough representatives. They were concerned that some time ago Nikiski was the prime choice but the right-of-way application was for Anderson Bay. Mead Treadwell (Yukon Pacific) said it would take an act of Congress, we should go to Anderson Bay. Mayor Williams said he had contacted Frank Turpin (Alaska Railroad), he said he would send counsel down for the meeting. He met at a work shop with Alaska Railroad and representatives from Nikiski. Questions were asked regarding value added, etc. At the hearings there were representatives from BLM, Corps of Engineers, Federal energy regulatory organizations, Governor's representatives, Yukon Pacific representatives. Councilman wise, Councilman Mccomsey and Vince O'Reilly attended the public hearing. Mr. O'Reilly testified. He asked that they consider value added and the long term benefit. The 2 major problem areas are 1) they have to certify the gas is not needed domestically, and 2) it will not affect the price structure of gas. Going through Glennallen will provide limited gas for domestic purposes. To go down Denali would take an act of Congress. It could fade away the economic window of opportunity of the project. They would lose 2 years. We should not give up automatically, this asset is 12% owned by the people of Alaska. The pipeline is a long term benefit. Councilman McComsey said with the LNG plant there would be 100 people employed. With value added it would be over 1000 people. Federal and State representatives were impressed by what we said and will talk about this at their meeting. Mayor Williams said the financial implications are of tremendous magnitude. $30 Sillion to build, $3 Billion additional if they go through Mt. McKinley. But at $33 Billion we are talking about up to $190 Billion. The people's share would be $24 Billion to the state. We can convince them it is better to go through McKinley to the rail belt. MOTION, Amendment$ Councilman Wise moved, seconded by Councilman McComsey, to amend the resolution that copies be sent to Kenai �.�..Rn+^a+•a�� M .w��w.e Kenai City Council Dec. 17, 1986 Page 9 :f Borough, City of soldotna, City of Homer, City of Seward, our local legislators, Mat -Su Borough, City of Ronan&, our Federal legislators, Alaska Railroad, DLMt `\ in addition to those listed. Mayor Williams noted this should be received by Dec. 23. c -. PUBLIC COMMENT: Leo Oberts, Kenai. He congratulated those attending the meeting. This would be an economic benefit to the e d area, state and Federal government. --_ Councilwoman Bailie suggested we ask the mayors of the a; communities to endorse this also. City Manager - -r- -- . -- ._.- Brighton suggested attaching Mr. O'Reilly's testimony to the resolution. Councilman Macomsey noted the resolution was given to the mayors at the 12-13 meeting. Councilman Ackerly asked what the phrase "have little or no adverse social impact" in the last WHEREAS meant. Mayor Williams explained, this would c•` have a tremendous social impact on Valdes, but we have the infrastructure in the local area. Councilman Wise =a noted during construction they would not have to build camp towns. They could also be supplied by railroad. VOTE, Amendment: "- Motion passed by unanimous consent. VOTE, Main Notion as Amended: Notion passed by unanimous consent. D. REPORTS D-1 City Manager =- City Manager Brighton spoke.4._ a. Council will be meeting with the local legislators - Dec. 29. He suggested a work session before the y meeting to review the Capital Improvement list. The Borough assembly wants the list by Dec. 30. b. He attended the Natl. League of Cities meetings the lot week in Dec. He is a member of the Small - Cities Committee. They discussed senior citizen housing. It should come to a complete halt in the future. Almost every municipality is increasing :- local taxes because of a decrease in Federal funds. Congress has eliminated Federal Revenue Sharing. •A ^y Kenai City Council Dec. 17, 1986 Page 10.; . . 4 c. Soldotna City Manager Underkofler has asked Kenai to endorse upgrading of the Sterling Highway as , the N1 Capital Improvement project for the Peninsula. If the Peninsula does not adopt a project, Mat -Su or Anchorage will pick up all the money. Anchorage had $100 Million as a 90-10 �• match. s. D-2 Attorney . •t Atty. Rogers spoke. r a. He distributed a report from the Governor's b. WnFl6 eD01eft agreement for the pipeline will be similar to the agreement distributed this date (union Oil, City of Kenai). •4-^; - c. Regarding the float plane land purchase. If we make a deposit 12-18-860 we are going to preclude the other side getting attorney fees. We need - $17,000 to file. $137,000 is their figure for 80 acres. Should the City desire 160 acres, the appraised value is $239,000. It is below the c asking price. We can file without the additional but if the court awards the amount in excess, we .'. will pay additional. If it goes through the litigation process, we can assume the award will be the amount deposited in court. Councilman Ackerly noted the 2nd & 4th paragraph regarding o . the $18,000 damage. Is that repetitious? Atty. :. Rogers replied $17,000 would represent rule 82. We will get some of this back. He needs authority for the $17,000. This gives us a cushion. =-- ----' :L Councilman Wise asked if $119,000 was the original Way appraisal. Atty. Rogers replied the local c appraisal was less. Airport Manager Ernst explained, $120,000 was the original. b MOTION: Councilman Wise moved, seconded by Councilwoman Bailie, for concurrence with the attorney's report, the additional f17,000 be made available. - =- Councilman Wise asked, under the AN program, will they =_ take the amended data? Airport Manager Ernst replied, the pre-app has not been filed. Councilman Wise asked if they will fund 93.7%. Mr. Ernst replied your - anything over that the FAA will look at and see if they agree. Councilman Wise asked if 20 days would give us title? If we do not have title, we cannot pursue. Mr. Ernst said once we file we have the land whether we pursue or not. _ Mi or I" , Kenai. City Council Dec. 17, 1986 Page i l MOTION, Amendment: Councilman wise moved, seconded by Councilman Measles, to write a check (we have $54,000 in the fund) up tothe amount left in the budget, if the attorney needs more, he can come back. NOTION, Amendment, Withdraw: _ Councilman Wise, with consent of second, withdrew his amendment to motion. MOTION, Amendments - = Councilman Wise moved, seconded by Councilman Measles, to expend all funds previously appropriated to the _a extent needed to file. -- - --- VOTE, Amendment ( Passed) : Yes: Wise, Williams, Ackerly, Bailie, McComsey, Measles Not Monfor Mayor Williams said he wants to see a report from the engineer to determine the cost estimate. if we choose not to proceed, we will be in possession of another _ r _: parcel of city land we may not be able to use. Bill - Nelson, engineer, spoke. He explained he is planning to turn in the preliminary the end of the week (12-19-86) with a preliminary cost estimate. This 6 gives a rough estimate. $1-1/2 Million to $1.7 Million for the scope. it will cover construction of the ° -- runway, clean-up taxi channel to 4-1 slope, -- construction of access road from lot St. along airport line to south end of taxi channel, construct limited : access taxi way. Added alternate is extension of access road to parallel proposed lease lots. This is �: F ..•°:::.: :'°_ not essential to the project. One by-product is a - stock -pile of construction quality sand fill (approximately 100 yds.) It will be stock -piled on q •{;: airport property. Mayor tilliame asked, how does this =° affect FAA insistence on visual sightin ? Mr. Nelson repliedr this includes excavation of soils obstructing the site. They must see 5 ft. above water surface from the tower. It would be 4-1/2 ft. above water surface. His cost estimate includes that. Mayor Williams asked _ _4=• how much money is in the airport -fund now? Finance ---- — ". Director Brown replied it generates $240,000 per year. Mayor Williams asked if we had enough in all accounts LLn'.r-r to cover this. 'Mr. Brown replied, there is $2 Million unappropriated. Mr. Ernst explained, there is 01.6 =;.s Million ASP funds, $300,000 to $500,000 left over from state grants. Mayor Williams noted that would give us _y u 4 . 1 ' " 4. .. ,. .0 •- - - - .. - . p' ' .. .. _.'vet v.i.i Kauai City Council Dec. 17, 1986 Page 12 $2.2 Million balance. He added, necessary funding for remodeling, airport runway repair, and funds from the Federal govt. are depleted. There is a good possibility this program may not be continued. Councilman Wise said AIP money comes from ticket taxes car marked for this. City Manager Brighton noted, the Feds also have a super highway fund that they have put a freeze on for 18 months. VOTE, Main Motion as Amended (Passed): Yes: Wise, Ackerly, Bailie, MCComseyt Measles No: Monfort Will d. Councilman Ackerly asked if the cable TV people are required to submit an annual report. Atty. Rogers replied, the cities' ability to regulate rates and content are being struck down. Councilman Ackerly noted 2 problems, 1) there may be cable on one side and not on the other. 2) There are Cables on trees, etc. that were not buried. Atty. Rogers suggested referring calls to the Public Utilities Comae. It has the protection of PUC as a necessary service, but is not regulated. Regarding use of the right-of-ways they are part of the regulations. He noted the Governor is talking about eliminating 2 of the 5 Puc commissioners. D-3 Mayor Mayor Williams spoke. a. He welcomed his brother Robert to the meeting. b. He thanked Vice Mayor Measles for standing in for him at the Dec. 3 meeting. He attended a League of American Cities meeting in San Antonio. He had other business with the National League of Governors in Washington D.C. A resolution was passed to limit the number of nuclear submarines to 18 instead of 20. The remaining $4 Billion difference could be used for drug rehabilitation. 18 can annihilate the world. He represented Gov. Cowper in Washington. Most of the participation was regarding economic development. He visited the Congressional delegation staff, the delegates were not there. He discussed: 1) moving the aaatenna farm. The State received $600 Million from the Federal govt., the Peninsula is 10% of the population and only received $2 Million - none in Kenai. 2) Back scatter radar (military construction). The decision has been delayed till March. 3) A Federal prison in Alaska. Rep. Young has initiated this. We will have to compete with r7 fJ \ti • Kenai City Council Dec. 17, 1986 Page 13 valdes and Seward. He asked Councilman wise to compile data and show the need. c. He suggested preparing a lot class brochure of the r City. it could be discussed at the next budget \\ time. d. He noted Info item #28 (pipeline right-of-way, { Union oil). It appears the deadline is Feb. 9, ¢ 1907. The franchise ending date is Aug. 9, 1987. Council needs to reconsider acquisition of �. utilities. Enstar has not acted in good faith - it has moved from the city, fired local employees, t'' .•;* used up spare parts. They are stationed in Texas. He is not proposing anything that would benefit himself. He proposes the City purchase the _`: utility - run it or contract out. We want some say in how the system is running. There are S --- ----. ' companies that can supply gas. it could be less than the Enstar offer. it could be an accounting transfer through Union oil. Revenue could be generated for recreation programs. We are a municipality and are not regulated by PVC and could regulate ourselves. We have expertise in Kenai to accomplish this. lot we should take control, then franchise but not too long as to lose control. it must be decided prior to Feb. 90 1987. Barring any decision now, the least we can do is send a letter of objection to the rate of ' the increase. Enstar is premature in requesting ° this, the City has 2 months to act. He asked that a letter of objection be sent and a work session be scheduled for this. Atty. Rogers referred to the memo. He has addressed the dates before. if . Council objects to the rate increase it is not z1` inappropriate. For the city to object on other - grounds, he did not know. Mayor Williams said it has been said by people in charge that they will litigate if we try to take it. He expressed - concern that they would enter into a contract they - did not live up to. Councilman Wise asked, when does the Union oil contract expire? Reply - Aug. 90 1967. Councilman Wise said he would object to a rate increase. It is 9.35 per 1000 ou. ft. The justification from Enstar was low overhead. Our cost was $.30. RUSCO operation was 81.50, Enstar gas cost was $1.85. Why should we provide $.30 gas to paying operating cost 6 times what other rate carriers are paying? ,. MOTIONS Councilman Wise moved, seconded by Councilwoman Monfor, to object that through the period of time gas is being provided at a rate of $.33, the rest of Enstar are _- paying $1.85. .., _ ..-••--.-^--•^c-c^•'^.—. .. ._ `r .----'^---- _— _., o .�%,o '3""?ate., TAW " , I T � s Kenai City Council Dec. 17, 1986 Page 14 Mayor Williams said Enstar is taking advantage of the situation by jumping ahead and getting cheap gas and paying premium price. it would be a Feb. 1, 1987 increase. Feb. 1 to Aug. 9 would allow Enstar cheap gas while we paid high price. Motion passed by unanimous consent. Councilman Wise said if for some reason it is not feasible for the City to buy KUSCO, our contract of $.33 relates to the Enstar contract of $2.15 blended rate. We got gas at a high overhead cost to come up competitive with Enstar. We were paying $.30 gas, 81.65 operating. Enstar was $1.35, based on cost of gas. We cannot pull cost of operations down to Enstar level. Mayor Williams said there are possibilities of obtaining gas at lower rates than Enstar. The City did not receive a "Sweetheart" deal from Union Oil. $.34 was the going rate in the gas fields. 2 years after the agreement, there were gas sales at $.16. With a transfer account system we can swap with other people that own reserves without drilling any more wells. He suggested a work session before Feb. 1, 1987, getting RFP's from people that may be able to buy and operate. He is not considering Far North oil & ease It would behoove Enstar to stretch out any increase. Energy costs are dropping. Councilman Ackerly said he would like to see hard fast numbers. We will not buy back at the cost we paid. There is no guarantee anyone will come up with the money to buy us out if we buy it. is the gas really there? There are many hidden things. Councilwoman Bailie said getting anyone to run the facility is a concern. She would want to know for sure we had a long term price of reasonable gas. Mayor Williams said he challenged the business community - if there are operators that can do better and cheaper than Enstar, come forward and he will bring to Council. D-4 Clerk Clerk Whelan noted the elections report for 1986 in the packet. D-5 Finance Director Finance Director Brown noted the letter in the packet to Mr. Graham regarding Aliak/McCollum assessment district. The matter has been resolved. D-6 Planning & Zoning Councilman wise noted the letter from Kelly Bookey (info item #5). It was discussed by PSZ. The ordinance provides for lighted signer with moving Final City Council Dec. 17. 1986 Pop 15 ' ' characters. City Manager Brighton noted he has responded to the letter with a copy of the minutes and a copy of the article in the Clarion. Mayor Williams noted P&Z did a good job regarding the salvage. a ADDED ITBMt He noted he will be having a meeting with Clerk Whelan _.•_ j 12-29 regarding Comm/Comm appointments and concerns. He asked that the public have applications to the City - before that time. -. D-7 Harbor Commission ' " =- None D-8 Recreation Commission -- - -= Recreation Director McGillivray noted the minutes of the 12-9 meeting are distributed this date. :03 D-9 Library Commission Chairman Swarner spoke. a. The Library will have their open house Dec. 18.` She thanked Council for their $100 donation. b. 3 members up for renewal want to be re -appointed. c. Mayor Williams said he appreciated the letter from the Commission regarding the secretary. E. MINUTES E-1 Regular Meeting, Dec. 3, 1986 Approved by Consent Agenda. F. CORRESPONDENCE -__- -- --_- . -_ -- F-1 Academy of State & Local Legal Center - Letter of Appreciation Approved by Consent Agenda. G. OLD BUSINESS �o. None H. NEW BUSINESS H-1 Bills to be Paid, Bills to be Ratified MOTION t , - :: _�F• _ _ - ! - - .. , _ - - .... :_ � ',� V o \i" •.. - . ,, ii.. ..... V. `. ...__ .tit ! p . - 1 Kenai City Council o h Dec. 17, ;086 Page 16 Councilman Ackerly moved, seconded by Councilwoman Bailie, to approve the bills as submitted.. •... Motion passed by unanimous consent. B-2 Requisitions Exceeding $1,000 f MOTION: Councilman Ackerly moved, seconded by Councilwoman Monfort to approve the requisitions with the addition of $1,755 as submitted this date for the Christmas party Motion passed by unanimous consent. MOTION: - -: -- --- ---- Councilman Wise moved, seconded by Councilwoman Monfort to divide the requisitions by voting separately on Compaq Computer items. Motion passed by unanimous consent. MOTION: Councilman Wise moved, seconded by Councilwoman Bailie, 2 to approve the requisitions as amended.=- Motion passed by unanimous consent. : MOTION: = Councilwoman Bailie moved, seconded by Councilman -= Measles, to approve the Compaq Computer items as submitted. Councilman Wise noted the letter from Legal Asst. Sutcliffe submitted this date. He said the Xerox representative did not have a chance to discuss his product with staff. MOTION, Table: Councilman Wise moved to table action till the Dec. 17 meeting. These was no second to the motion. - --- Atty. Rogers said we have purchases to $6,500 without bid. Mr. sutcliffe's memo shows 6 month's study and = much review. They made a value judgement. VOTB, Table Failed): Yes: Wise, Williams -a'. a? Kenai City Council Dec. 17, 1986 Page 17 1 .. No: Monfor, Ackerly, Bailie, McCcrosey, Measles Councilwoman Monfor said this was an Administrative task. -- VOTE:. '- Notion passed unanimously by roll call vote. c H-3 Ord. 1179-86 - Amend. KMC - Delete word "Advisory" from Planning & Zoning Section - Approved by Consent Agenda. - H-4 Ord. 1180-86 - Amend. KMC - Supplemental Assessments for Special Assessment Districts NOTION: o Councilman Ackerly moved, seconded by Councilwoman Bailie, to introduce the ordinance. Councilman Wise objected, saying the City can come up with a supplement any time they want to. if we find we have given extra to anyone, we have to re -assess. We should say the maximum people will be assessed when we — --- publish. if it is over we should absorb it. If we do -' not audit, we ought not to assess. If it is closed and audited and certified, Finance should not touch it. City Manager Brighton explained, this is a method in case all of those have not been figured in the lot ., plan. A supplement will be prepared as the original was. It is still up to Council. Finance Director �.. Brown noted it says the City Manager a= prepare the role, he does not have to. If a person has a claim in the meantime we are adding to assessment costs till we finalise. He could not put it in the Code, it may be a something they are not aware of. There has to be some N: - way if there is a possible claim if it is time to close ; out. Somebody has to make the decision. If there is no method to re -assess, the City will absorb it. It always comes back to Council. VOTE: n"— w Motion passed unanimously by roll call vote. _ _ _ _ ___ " � __"•_� H-5 Ord. 1181-86 - Amend. KMC - Adopt Natl. Fire Code & Uniform Fire Code H-6 Ord. 1182-86 - Amend. KMC - Location of Polling Places ' Approved by Consent Agenda..44 o=r" . ,gyp ":u• .A• r ay : ".Sy4ii" Kenai City Council Dec. 17, 1986 #rage. 18 Diso. - Request for Purchase of Tract F, Dena'ina at. Lstates - Dave Brown H-1 tdpTlONs conded by Councilwoman Councilwoman Monfor moved, se Bailie, that Administration nistration draft an ordinance for release of reviewocouncilman AckerlY aCoouunncilwotman Bailie said shent on RGCe e review on Jan. 13. but we do Act not object to Rea, sion inrevithis city that we are a park in every sponsible for. There reis an area set aside for Parks re the other end. She suggested the �number and or location of parks be discussed. di McGillivray said Reo. Comm• discussed this when Section 36 was planned. 3 areas were set aside. The Comm It is felt the area farthest �yorwas Williamssasked if -the Rea. larger than this one. Cam. had tiakecitobaak tothis them1ebutMtheycwere vray said he could interested in the other one. Motion passed by unanimous consent. H-8 Disc. - 1987-86 Capital Improvement List Councilwoman Mfnte As enlis& Ssheide Objected tie would like it higher o an Sterling Hwy improvements being lot isthe City Manager list, she wanted Spur widening t Brighton said he explained to soldotna City Manager He Underkofler that we fhave nm,,fiarea hastmadegitiso Lion now. Development Underkofler said he would approach sterling if Mr. rt Kenai on widening Spur. He suggested would lose( support he length to Frenchie's• we have deaths in of the that area. He talked to One Regardless Ofiators Out regarding Federal funding.in Juneau. Legislature said he would favor moving Juneau. Councilmanand up #3 6 #4 in the area -wide list MMoonforesuggested pioneer home down. Councilwoman , ing #4(ScuWise said the lRegional to Spur & Forest. councilman Transportation comm. developed a It would be a 3 �r administrations in the Borough. project. There was no objection to the listing of Sterling over Spur. Public Works Director Korneilut explained there have been meetings since theeg�.ate 20 priorities were taken st the state. is Prioritwas done planners changethsit Mayor Wiilihams suggested in light with the new system. A Kenai City Council r' Dec. 17, 1986 Page 19 of diminished funds we should lower our scope. There { will not be 1/3, 1/3, 1/3 any more. He added, we will see 1000 oars a day at Walker & Spur. There are 300 people per day at HSA paying their bill. Mr. Kornelis added, Willow & Spur has the highest daily count on the Peninsula and has had for some time. This was a State traffic study. MOTION: } Councilwoman Monfor moved, seconded by Councilman Ackerly, to accept the list as is, but move N2 (Pioneer ,.. Home - area -wide list) to N4, N3 (Traffic Signal, Airport Way & Spur area wide list) to #20 N4 (Traffic Signal, Spur & Main - area -wide list) to 43. T> City Manager Brighton said it would be a mistake to move the pioneer home. Sen. Fischer has said if there is an alternative to the major expense, he may get the money for congregate housing. Y¢. ' MOTION, Addition: Councilwoman Monfor changed N2 (Pioneer Home area -wide list) back to $2, M4 (Wildwood, Spur to State Prison - City list) should have one asterisk, N7 (Candlelight & Linwood Area - city list) should have no ,:�-- asterisks, (Traffic Signal, Spur & Main - area list) should be 0. j Motion passed by unanimous consent. ;...y„ Mayor Williams suggested the brochures should be printed, but not the book that was done in previous years. Council agreed to the suggestion. H-9 Disc. - Request for Concession Stand, Airport Terminal, Charles Woodcock Councilman Ackerly said he concurred with Administration and suggested no action be taken, send 4'a the letter that not now - maybe later. Council agreed to the suggestion. J H-10 Lease - Airport Terminal - Friendship Air Alaska_:...s Airport Manager Ernst explained Mr. Schaffer was unable to attend the meeting. He noted he has received 58 applications for 6 jobs. MOTIONS Councilman Ackerly moved, seconded by Councilwoman r Monfor, to approve the lease to Friendship Air. . 1 - - ti` I� Kenai City Council Dec. 17, 1986 Page 20 Motion passed by unanimous consent. H-11 Assign. of Lease - Metropolitan Mortgage (Katmai) to Lynn Jones ' MOTIONS Councilman Ackerly moved, seconded by Councilwoman >° Bailie, to accept the assignment contingent on a new lease as stated in the memo. ' S I Mayor Williams referred to the note of Dec. 15, • distributed this date, from Mr. Jones regarding 9 insurance. City Manager Brighton noted his restaurant insurance is $300,000, the past lease -holder at the Katmai was $300,000. Admin. Asst. Gerstlauer said it is 81 Million in the Code. - - -- -' Lynn Jones, Kenai. His insurance company is trying to get this but is having a hard time. He needs to close on this by Dec. 31 because of depreciation factors. it will be 3 times as much as 81/2 Million if he can get it. Mayor Williams asked if there was a way of. changing the Code. Answer - no. Councilman Ackerly - said he thought we have changed others. Mrs. o� Gerstlauer replied, on terminal leases, not land. Atty. Rogers explained, we can change the Code, but not in this time frame. Councilman Measles asked what is " the old renewal date? Answer - the year 2000. Councilman Measles suggested assigning it as is, contingent on a re -write after the lot of the year. r3 Mr. Jones agreed to this. Councilman Measles suggested we could then change the Code. - MOTION, Withdraw: Councilman Ackerly, with consent of second, withdrew -~ his motion. MOTION: Councilman Measles moved, seconded by Councilwoman`s.. Bailie, to approve the assignment of lease with one stipulation that a new lease be re -written in 1987. - .V.c4. City Manager Brighton asked Mr. Jones if there would be 77, ---- - -- : -. - -__ a problem with the lenders. Mr. Jones replied he didnot think so. - — - -=-- - Notion passed unanimously by roil call vote. H-12 Disc. - New Street Lights Public works Director Kornelis said he spoke to HLA .\, Kenai City Council Dec. 17, 1986 1 ' Page 21 this date. The lights would be $70,000. That is within the budget. To do 65 would be $100,000 - over budget. Maintenance costs for 40 would be 613.53 per month, times 40, plus a $15 service cost - $6,674 per year. Attachment A was approved by Council- He has requested Attachment C. He has reviewed with the bus drivers. Mayor Williams said he has had a request for one on Poplar & Walnut. Mr. Kornelis explained it is g_ 61,900 per light, we could add this or drop one. MOTION: } Councilman Ackerly moved, seconded by Councilwoman L`=� Bailie, to prepare a PO to accept the recommendations n of the Public Works Dept., Attachment C as priority N1. Mayor Williams asked Finance Director Brown, how is the money situation going? Mr. Brown replied, this is general fund money. He could have a report for the Jan. 7 meeting. City Manager Brighton noted it is not a rosy picture. Councilwoman Monfor suggested holding action till the report. Councilman Wise asked, when could the lights be put in? Mr. Kornelis replied, they could start in Jan. on the ones with overhead power. NOTION, Withdraw: L' Councilman Ackerly, with consent of second, withdrew; his motion. -Q Councilman Measles noted 22 have poles. Mr. Kornelis said he would have a PO for the Jan. 7 meeting. r , MOTION: ---- Councilwoman Monfor moved, seconded by Councilman Wise, ' to issue a PO Dec. 18 for the lot 22 lights with poles, to be operational by Jan. 31. -. -- - Notion passed by unanimous consent. H-13 Disc. - Kula Rentals Extra Compensation �- MOTIONS a. Councilman Ackerly moved, seconded by Councilwoman Bailie, for approval of $1,500 request from Kula Rentals. Mayor Williams reviewed the material explaining Mr. Wright feels there was verbal authority to do additional work by Engineer LaShot. He negotiated for 60 ft. and 60 ft. was not estimated but was measured by City personnel. As -built plans were wrong and it was Vil , - .. 4 4 4 Kenai City Council f ' _ Dec. 17, 1986 Page 22 I not 60 ft. Engineer LaShot said no one from the city authorized the additional payment. The City furnished additional materials. Mr. Wright made measurements. He was informed of bonding, he did not show up for the meeting. Our insurance agent would not put up -front money. - VOTE (Passed): i, yes: Wise, Williams, Bailie, Measles ;• No: Monfor, Aokerly, McCcrosey " 1. PERSONS PRESENT NOT SCHEDULED TO BE HEARD •.' ... - a. Councilwoman Bailie. She noted Info item $4 (Boating Facility)• there seems to be concerns. Public works Director Kornelis said it is not development. going well. He has deleted well They have a problem with the sub contractor. if we do not settle, they will be back to Council to ask for compensation. Councilman Aokerly asked if o 20 gallons per minute is enough. Mr. Kornelis t� . ...... .:. y replied, it should be 180 gallons per minute. ; b. Mayor Williams. The Economic Development Comm. " met Dec. 2. He asked Mr. Thomson to sit in on the meeting. Council agreed to appoint Barry Thomson. o c. Mayor Williams. Info item N15, regarding a Bicentennial Constitution Committee. It will - self-destruct approximately May 1987. The program as laid out will benefit the csommunity. Teachers have suggested identifying boards be made to travel through out the schools. He did not think _ there would be much coat. He asked for concurrence of Council. He also asked to +, _ substitute Polly Crawford with Debbie Williams.: �r Council approved of the committee and the appointments. d. Councilman Aokerly noted a candidate for mayor in Anchorage has said he would make Anchorage the 01 fish processor in the State. He suggested the Economic Development Committee review this, that should be making an effort in this direction. we e. Councilman Aokerly noted Anchorage Times has suggested a "Goose Classic" for the Kenai River flats. He suggested we review this. f. Dave Brown, 116 Wooded Glen Ct., Kenai. Regarding ° the purchase of Tract F, Dena'ina Pt. If he makes an offer on the property, the City normally signs an earnest money agreement. That protects them from someone doming in and being beat out by _ Y a, fi gib:. :' •, - :, . _ . e .., Kenai City Council Dec. 17, 1986 Page 23 { another offer. The initial applicant has the right to match the bid. He would argue that it is only co mon and fair business practice to have , this in the Code. There is some question if he is the initial applicant. He is asking Administration be directed to include this in the. ordinance. With his offer he submitted a good faith deposit. Atty. Rogers replied Council directed the land be made available for sale. The Code provides for preference for initiating bid. }©. It cannot be done till it is allowed for sale. Mr. Brown's money was returned. Mr. Brown said he is the initial applicant, not the initial bidder. Atty. Rogers replied we have dealt with this ` before in Section 36. We will initiate for sale ' as we have other parcels of land. Preference may still exist. Till there is an ordinance and it is for sale, we cannot offer land for sale. Mr. Brown said if you look at Section 36, tracts A, H -- a C, the ordinance that put them up for sale, he put up a bid. Mayor Williams replied he became the initiating bidder after the land was up for sale. Councilwoman Bailie noted this land would =r not be up for sale if it were not for Mr. Brown. There should be some preference. Council has the right to say if they want to sell land or not. If they instigate, they should have preference. Mayor Williams said there is no•� ordinance that allows us to sell this. Councilman Wise said 10 -.-_ years ago a commission was created to discuss primarily airport lands. The provision applied to airport lands should apply to this. We have given people 1st right before. Mr. Brown requested the land be put up for sale and put up $500 for subdividing and/or appraisal. if it goes up for sale at sealed bid, he can meet the highest bid. We cannot accept at his price. Atty. Rogers agreed, Mr. Brown does not have preference on land not available for sale. The City could re -write the Code. Mr. Brown noted the Chrysler property showed inconsistency. It is unreasonable to think anyone will pay more than appraised value. Atty. Rogers stated his objection to the statement. �V= Councilwoman Monfor noted Ord. 927-84 regarding Section 36 states "City -owned land shall not be - - --- -- - - --��' available for sale." Mr. Brown asked that the City do the same as they did for Chrysler. City Manager Brighton explained, purchasing and leasing are different. They asked for a lease. =� g. Leo Oberts, Kenai. He objects to competing cities:a° taking away our thunder (regarding fish } processing). Bottom fishing has been given to American fishermen. There will be a scramble for 6 facilities. There is a need for a deep water dock n P : J . . n ` .. .. .. .. u - c - ✓ . • '-ice .. �r. u Kenai City Council Dec. 17, 1986 ! Page 24 such as ilikieki area. It is up to Kenai to do - this. The Borough and the State will not do it. " There is no reason why we cannot put warehouses there to be available for all bottom fishermen. Mayor Williams said he would bring this to the a Harbor Commission. h. Father Targonsky, Kenai. The Borough passed a resolution to ask the Governor to look into the decision of Fish & Game (regarding the limited ;. fishing for set net sites) He suggested a resolution from the City saying Kenai supports the Borough resolution. This is a fish and oil town. " . }- Mayor Williams asked that this be put on the Jan. 7 agenda. i. Councilman McComsey. He met with the Borough Caucus 12-13-86. They put Bradley Lake project as their N1 priority. It has been partially funded. L Jan. 17 they will have several members of the _ project at their meeting, they will discuss;: .'=j`•- ".. lobbying the Governor for money to continue. j. City Manager Brighton suggested the work session -- could be changed to Jan. S, if Council members - could not attend on Dec. 29. Council took no action. ADJOURNMENT: Meeting adjourned at 12:20 AN. ^=r. Janet Whelan City Clerk - E.Cd i J,ti l J bif �'4RIC�:Il�A" a art CLI L DATE