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HomeMy WebLinkAbout1985-02-06 Council Minutesy AGENDA KENAI CITY COUNCIL - REGULAR MEETING FEBRUARY 6, 1985, 600 PM BOARD OF ADJUS'iMENTs 600 PM Appeal by E.R. Lowry - P&Z Decision Denying Variance Permit, Sprucewood Glen S/D PLEDGE OF ALLEGIANCE A. ROLL CALL 1. Agenda Approval 2. 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. B. PERSONS PRESENT SCHEDULED TO BE HEARD 1. Walter Them, Cooperative Extension Ag Agent - Beneficial Use of Sludge C. PUBLIC HEARINGS 1. Ordinance 1007-85 - Increasing Rev/Appns - Central Filing System - $219694 2. Ordinance 1006-85 - Amending Zoning Map - Richka Creek S/D 3. Ordinance 1009-85 - Amending Zoning Code - Establishing Zoning District RR-1, RS-19 RS-2 4. Resolution 85-08 - Awarding Contract - Copier/Duplicator - IBM 5. Resolution 85-14 - Recommending Guidelines - Kenai River Comprehenaive Management Plan 6. Resolution 85-15 - Awarding Engineering Design - Marathon Rd. Relocation - Dowling, Rice 7. Resolution 85-16 - Requesting Funds from State for Women's Shelter 8. Resolution 85-17 - Awarding Engineering Design - Robin, Kensitze, Eagle Rock, Sandpiper, Tern, S. Strawberry - Dowling,Rice 9. Resolution 85-18 - Awarding Engineering Design - Cook Inlet View Dr., Lilac - Wince, Corthell 10. Resolution 85-19 - Awarding Engineering Design - S. Spruce - Wince, Corthell 11. Resolution 85-20 - Juliaasen, Basin View, Ames, Barabara - Wince,Corthell 12. *Renewal of Liquor License - Kenai Joe's 13. xRenewal of Liquor License - American Legion 14. *Renewal of Liquor License - Peninsula Oilers Oaken Keg #58 15. *Renewal of Liquor Licenso - Kenai Merit Inn 16. Ronewal of Liquor License - Rainbow Bar & Grill Little Ski Mo 17. *Renewal of Liquor License - Pinea Club D. MINUTCS •Regular Meeting, Jan. 16, 1985 E. CORRESPONDENCE r S F, _ a - -, • ti 1. *14. Uimmick, President, Kenai Borough Assembly - 0. Waste Incineration Project h. Sales Tax Ordinance 2. *Kenai Chamber of Commerce - Annual Report 3. *P. Shealy, City Manager, Homer - Borough Sales Tax Ordinance 4. *P. Nault -• Speed Limit, Spur Highway F. OLD BUSINESS G. NEW BUSINESS 1. Bills to be Paid, Bills to be Ratified 2. Requisitions Exceeding $1,000 3. *Ordinance 1010-85 - Finding City -Owned Lands Not Required for Public Purpose - Evergreen 4. *Ordinance 1011-85 - Finding City -Owned Lands Not Required for Public Purpose - Richka Creek 5. Lease Amendment & Assignment - Pratt to Zehrung - Aleyeska S/D 6. Vacation of Utility Easement - Davidson S/D 7. Vacation - Kenai Original Townsite 8. Lease Application - Larry's Flying - FOG S/D 9. Lease Application - J. Howard - CIIAP 10. Vehicle Parking - O'Connell, Swer.ner - Municipal Reserve S/D 11, Tikigaq Const. - Police Dept. Addtn.,Change Order #2- $1610 12. Discussion - Ord. 997-84 - Amending KMC 5.35 - Contamination During Oil & Gas Drilling 13. Discussion - Council on Aging By -Laws 14. *Games of Chance & Skill - American Legion 15. *Games of Chance & Skill - American Lagion Aux. 16. *Games of Chance & Skill - Kenai Emblem Cluh H. REPORTS 1. City Manager 2. City Attorney 3. Mayor 4. City Clerk 5. Finance Director 6. Planning & Zoning 7. Harbor Commission S. Recreation Commission 9. Library Commission I. PERSONS PRESENT NOT SCHEDULED TO BE HEARD ADJOURNMENT KENAI CITY COUNCIL, REGULAR MEETING, MINUTES FEBRUARY 6, 1985, 600 PM KENAI CITY ADMINISTRATION BUILDING MAYOR TOM WAGONER PRESIDING BOARD OF ADJUSTMENT - 600 PH TESTIMONY: 1. Ed Lowry. Mr. Lowry was sworn in by Clerk Whelan. COUNCILMAN ACKERLY ARRIVED: 605 PM. Mr. Lowry noted the 3 rules covering variances in the Code. a) Exceptional physical circumstances applicable to the property. The lot depth is 110 ft., they want to put up a 72 X 82 ft. building. In order to fit the Federal Guidelines, they would have to be next to the Y i rear line. There would be a jog in the traffic pattern of the Mall site and it would eliminate 16 i parking spaces. 2 applicants have applied for i variances in the past 3 years. Encroachments were 25 ft. and 75 ft. into the building set -back. He is looking at 18 ft. (Mr. Lowry distributed material) He added, these people could have built behind the set- back but did not. They were both granted variance without paying attention to that. h) Unnecessary hardship. The size of the 6ollding would have to be decreased or parking spaces would be lost. c) No material damage to vicinity. He owns the property for 400 ft. on either aide and does not feel it would be detrimental. He measured by Dan's TV (Frontage Rd.) for off-street parking or a 4-lane highway. There is 136 ft. from center of highway, he has 131 ft. On the opposite side there is 130 ft. set -back for an additional 4-lane. There are footings about 7 ft. in the ground. They are legal as for as the building permit issued. Had they intended to do this without permission they would not have come to P&Z tat. Administration reviewed and made recommendations on r; the 2 approved sitee, this was not done with his. P&Z denied and ©did the physical characteristics wore not met, without explaining why. In the peat 3 years there have been 8 buildings built on the aide of the road, 6 encroachments into Federal aid eat -back. 2 were granted variances, 4 did not apply. No action was taken by the city. He felt P&Z has set a precedent by approving 2 and the City has out a precedent by not being aware of the others. Fie has come to the City and - done it properly. 2. Land Manager Labahn. Mr. Labahn was sworn in by Clerk -' Whelan. He reviewed the material in the packet. Councilman Aekerly noted it may be some time before ; the right-of-way will be used. If it is granted, who will buy it back? Mr. Labahn replied, the State. — - Councilman Ackerly noted, the use of the building would be an important criteria. There are a lot of places whore people park and walk to a restaurant., Giving up 16 parking spaces would not be good. Mr. Labahn replied, the Code allows reduced number of parking spaces with mixed development. There will be other things with the restaurant. He did not think it would adversely affect development. Mr. Lowry said, regarding encroachment - this building would be on his property. The right-of-way is not on his property. - If the State needed property they would have to buy NO' i irregardleao of that. 150 ft. was not established by tho State or Federal Govt., it was ostablished by the ` City ea q guideline.Redueinti "paces reducota the size of thin building of; other ono: near. Councilman Wise i' noted the Fedl. Dept. of iiiLoriur hau a "PLO" for a 150 ft. right-of-way. Councilman Ackerly asked if q there would be other requout" for variance" on the A KENAI CITY COUNCIL, MINUTES FEBRUARY 6, 1985 Page 2 strip. Mr. Lowry replied, there may be one more. He added, regarding Dept. of Interior PI.O, he got a title insurance report regarding this. The only public land order is PLO 159, that only refers to "all other highways." That has a 50 ft. set -back. Mayor Wagoner stated Council ties 30 days to render a decision. Legal Asst. Collation noted if the decision is made this date, there would be final conclusions that would have to made at the some time. MOTIONS Councilman Ackerly moved, seconded by Councilman Wise, that Council render a decision at the next Council meeting ( Feb. 20, 1985) . Motion passed by unanimous consent. Mayor Wagoner asked, what is the construction time? Mr. Lowry replied they are waiting for a decision, it would not be a problem. Meeting adjourned at 7s00 PM. REGULAR COUNCIL MEETING, 7sOO PM. PLEDGE OF ALLEGIANCE A. ROLL CALL Presents Ray Measles, Chris Monfort John Wise, Tom Wagoner, Tom AekeriyI Sally Bailie Absents Jess Hall (excueed) A-1 Agenda Approval a. Mayor Wagoner asked that the bill from McLane & Assoc.- Misc. Streets - be added with item G-19 Bills to be Paid. b. Mayor Wagoner naked that item G-9 be deleted. This application has been withdrawn. Council approved the agenda by unanimous consent. A-2 Consent Agenda MOTION: Councilman Measles moved, seconded by Councilwoman Monfort to approve the Consent Agenda as submitted. Councilwoman Bailie requested item E-4, Letter Regarding Speed Limit on Spur, be deleted from the Consent Agoinda. Motion passed by unanimous consent. B. PERSONS PRESENT SCHEDULED TO BE HEARD B-1 Walter Them, Cooperative Extension Ag Agent - Beneficial Use of Sludge Mr. Them distributed information and samples of processed sludge. He explained, the City is burying 10 to 20 yards in the dump. It is being used beneficially in many areas. 1/4 of the municipal sludge produced is used for farm land. Kenai does not have analysis of their sludge, this is Soldotna's. Heavy metals and poisonous substances are very small amounts. These analyses are taken quarterly, they will vary in the seasons. There otiould be a full year average. He met with DEC representatives here and Anchorage, they were interested. tie is asking for City L KENAI CITY COUNCIL, MINUTES FEBRUARY 6, 1985 PAge 3 approval. He will contact the farmers, they will pick it up. Mayor Sioguner suggested drying and sacking it in winter for eventual disposal. He noted the City has to pay for liming because the Borough allows scavenging in the dump. Mr. Them suggested giving it to the Farmers and they can dry it. Most of the farmers do not have large dump trucks, could the City deliver to the farmers? Mayor Wagoner replied yes. Councilman Measles asked if DEC approval was based on here or general approval. Mr. Them replied, pretty much general. Cities of this size seem to be mostly the same. Councilman Measles suggested getting a series of analyses on the city sludge. EPA and DEC should be aware of this. The State has not assumed hazardous waste responsibility. Mr. Them noted he does not know the cost of this. Mayor Wagoner said he would like a hold -harmless agreement with participants. Mr. Them said he would meet with Administration and work out the particulars. Analysis should be done once a month for a year. Councilwoman Bailie noted the tests may cost up to $1200 per month. Council agreed to proceed with discussions. i C. PUBLIC HEARINGS C-1 Ordinance 1007-85 - Increasing Rev/Appno - Central Filing System - $21#694 MOTIONs Councilman Ackerly moved, seconded by Councilwoman Bailie, - to adopt the ordinance. There was no public comment. Motion passed unanimously by roll call vote. C-2 Ordinance 1008-85 - Amending Zoning Map - Richka Creek S/D f MOTION: !i Councilman Measles movedt seconded b Councilwoman Bailie ` to adopt the ordinance. y 1 PUBLIC COMMENT: a. Tom Boedecker, 405 Cindy Lane, Kenai. This is immediately north of his home. It would allow 6-plexes. There is no restriction on subdivisions, there could be many units on one lot. It would be inappropriate to rezone to allow that density. He spoke to P&Z, they made a recommendation to restrict to single or duplex. There is an ordinance for tonight, but the property could still be subdivided. He asked Council to postpone till the ordinance is passed. MOTION, Postponements IJ Councilwoman Monfor moved, seconded by Councilman Wise, to { postpone till March 6, 1985 meeting. VOTE (Passed)t Yess Measles, Monfor, Wise, Wagoner Not Ackerly, Bailie C-3 Ordinance 1009-85 - Amending Zoning Code - Eatablishing Zoning District RR-1, RS-1, RS-2 KENAI CITY COUNCIL, MINUTE. FEBRUARY 6, 1985 Page 4 MOTION: Councilman Ackerly moved, seconded by Councilman Wise, to adopt the ordinance. PUBLIC COMMENTS s. Ruby Coyle, Kenai. She asked for a copy of the petition for public review. City Manager Brighton replied they are available, but are not in Chambers. Mrs. Coyle asked if the changes were proposed by people or Council. Mayor Wagoner replied, PAZ. Councilman Wise said this can be done by 1) petition of affected property owners or 2) action by PAZ or Council. Mrs. Coyle said she is opposed to anyone eloe rezoning her ' homestead. She said the City had this done in the 40199 there is no reason to change. Mr. Green, a professional planner from the U of A, prepared a report and said a mix is better. With condos and apartments, the goads cannot take care of the traffic. The schools are affected also. Councilwoman Bailie said this agrees ' with Mrs. Coyle's statements. With this, if they want single family or duplexes, people can petition. They cannot do that now. Mrs. Coyle noted the ordinance does not say property owners have to request, it should specify. City Manager Brighton noted PAZ had 2 public hearings on this. Land Manager Labahn explained, this ordinance provides options for property owners in 2 zones to elect to have more restrictive development. Mayor Wagoner suggested if he had property surrounded by large tracts, he could be zoned out of his place by a simple majority or Council decision. Mr. Labahn replied, it could happen. It does not change the zoning map, it just places new zones on the books. Under the present zoning code and the new code, it would allow PAZ or Council to review. Mrs. Coyle j noted also that greenhouses were not allowed, but farming is. b. JoAnn Buzzell, Candlelight Dr., Kenai. There was a petition for an assessment district submittod at the same time as this petition. It only covers a small area. Councilman Wise said the issue raised by the petition is — -� water 6 sewer. By putting in water 6 sewer they could have small lots. The people were looking for ability to protect themselves from overzealous developers and losing the quality of life. This ordinance does not establish zoning, just the ability to have zoning. Council will not rubber stamp a petition. Mayor Wagoner noted 90: of the property owners could petition and own 10% of the property. When you put in water 6 sewer, the zoning is changed. Councilman Wise said, in most cases. Mayor Wagoner requested Councilman Wise to address the chair. Councilman Wise said Mayor Wagoner debated from the chair, he cannot wield the gavel and debate. Mayor Wagoner ruled Councilman Wise out of order. Councilman Wise challenged the decision of the chair. VOTE, Challenges Yens Measles, Wine, Bailie Not Monfor, Wagoner, Bailie i, I' Challenge failed, a tie vote fails. Councilwoman Bailie said the ritizenu should bu assured that if they so deuire they can zone themaelven for singly family dwellings. 6-plexes would devalue property. Mra. Coyle Iv KENAI CITY COUNCIL, 14INUTES FFRRUARY 6, 1905 Page 5 said in all RR areas, you can only build 4-plex without coming to Council. PhZ rezoned everything with water h sewer to SR. VOTE (Passed): Yens Measles, Monfor, Wise, Bailie Not Wagoner, Ackerly C-4 Resolution 85-08 - Awarding Contract - Copier/Duplicator - IBM MOTIONs Councilwoman Monfor moved, seconded by Councilman Measles, to adopt the resolution. There was no public comment. Motion passed by unanimous Consent. C-5 Resolution 85-14 - Recommending Guidelines - Kenai River Comprehensive Management Plan NOTIONs Councilwoman Monfor moved, seconded by Councilman Measles, to adopt the resolution. MOTION, Amendments Councilwoman Monfor moved, seconded by Councilwoman Bailie, to amend the motion to include the Kenai River from west of the bridge south to the mouth of the river in the study area. City Manager Brighton noted from the bridge to the mouth is primarily industrial. Councilwoman Monfor replied the group is only advisory, it will have to come back to the City. The Board just wants to study the area. VOTE, Amendment (Poesed)s Yess Monfor, Wise, Wagoner, Bailie Not Measles, Ackerly PUBLIC COMMENT: a« Ruby Coyle, Kenai. When the Senate had hearings on SB-14, she testified that she did not want from the bridge included because it was industrial. The farther away you keep the Perks Dept. the better it is. b. Waldo Coyle, Kenai. From what he has seen of the Parka Dept., we are inviting disaster. Don't let them say they will not take eminent domain, it is in the Constitution. If the precedent is set, no river or stream in Alaska would be safe. Councilwoman Monfor said it is stated in the Act that the State will not use eminent domain. c. Leo Oberta, Kenai. Mr. Oberts distributed material. He suggested the Div, of Parka put chemical toilets on the river rather than attending meetings. He agreed with the Coyle's regarding working with government agencies. They tend to increase personnel with more regulations. Keep them away from the industrial area. They would have the authority to override the City and the Borough. The Board is advisory only. We have the a 1' KENAI CITY COUNCIL, MINUTES FEBRUARY 6, 1985 Pago G Corps. of Engineers, Wetlands, National Marine Fisheries, DEC, Fish & Wildlife, U.S. Forest °,ervice, Coast Guard, Fish & Game to work with. d. Loretta Breeden, Kenai. She is on the Board, but her statements are hers, not the Board's. She is in favor of the resolution. It is a matter of good faith for the rest of the residents along the river. She is glad to see the City considering the rest of the river and resource protection. Not one of the speeches tonight were regarding resource, they were all development related. If we do not have the resource, it would have i no value to commercial and sports fishermen. The river estuary is most important part of the river. Eminent domain is out now, we will be forced with Coastal Zone Management. This will not affect the canneries. We are merely asking for a tool to work with City planning to see how best to manage the land. Below the bridge to the west is the area left out. The other side is wetlands. The City has designated a large portion of the area for wildlife. She cannot see the oil companies or canneries being affected unless they do i something wrong. b. Waldo Coyle (contd). The problem on the river is boats, enforcement and too many sports fishermen. There is no enforcement on the river. All violations are covered by Fish & Wildlife, they have been derelict in their duties. They have allowed sports fishermen to fish on the spawning grounds. The Park Service wants to develop every spare piece of land so they can get more people down here to go fishing. It c-ild be fished out in 10 years. c. Leo Oberts (contd). The river should be managed for salmon. All others depend on this. When erosion starts, the spawning areas are destroyed. ! a a. Ruby Coyle (contd). In 1974 Cook Inlet was declared distressed fishery. In 1975 they issued limited fishery. The State hose allowed guides (another commercial industry) to go in to an area already distressed. No one has the power to limit guides. d. Loretta Breeden (contd). She suggested considering an amendment that the area in special management area should be there because for the 1st time there was a procession of boats going down that far. Law 5 enforcement will stop at the bridge. The City may have to have a harbor patrol. Mayor Wagoner said an amendment has to be done by the Legislature. Councilman Wise suggested an umbrella agency to coordinate all agencies involved. VOTE, Main. Motion as Amended (Failed): Yes: Monfor, Wise Not Measles, Wagoner, Ackerly, Bailie C-6 Resolution 85-15 - Awarding Engineering Design - Marathon Rd. Relocation - Dowling, Rice ►� MOTION: r Councilman Wise moved, seconded by Councilman Ackerly, to ! adopt the resolution. Iv0"V ,4 R s KENAI CITY COUNCIL, MINUTES FEBRUARY 6, 1985 Page 7 MOTION, Tables Councilman Ackerly moved, seconded by Councilwoman Bailie, to table Res. 85-15, 85-17, 85-18, 85-19, 85-20 to Feb. 14, 1985 at 6sO0 PM. MOTION, Withdraw Tabling Motions Councilman Ackerly moved, with consent of second, to withdraw his tabling motion. Councilman Wise suggested adjournment to a committee of the whole. Mayor Wagoner declared the suggestion out of order, as there was no motion to table on the floor. MOTION, Tables Councilman Measles moved, seconded by Councilwoman Bailie, to table action till a work session. VOTE, Table (Passed)s Yess Measles, Monfort Wagoner, Ackerly, Bailie No: Wise C-7 Resolution 85-16 - Requesting Funds from State for Women's Shelter MOTIONS Councilwoman Bailie moved, seconded by Councilman Measles, to adopt the resolution. PUBLIC COMMENT: a. Patty Morris, Board Member of Women's Resource & Crisis Center. From July 1983 to June 1984 there were 228 cases, from July 1984 to Dec. 1984 there were 192 cases. Their case load has doubled. On July 1 they will be adding child abuse cases. The project will celebrate its 2nd birthday in May. They are 1/2 way home. Mayor Wagoner noted he received a letter from the director implying they needed $50,000, now they are saying $100,000. Ms. Morris explained, if they could continue on community help, they would need $45,000. If they build outright, it would cost $100#000. Mayor Wagoner suggested the labor could be donated if the materials were purchased. Councilman Ackerly asked if they had contacted the Legislative delegation. Ms. Morris replied, they have shown great interest, they are waiting for this resolution. Councilman Ackerly noted there will be limited moneys this year. Maybe it would be better for Peninsula cities to make a contribution rather than approaching the State. It may jeopardize other projects. He asked if they had asked other Peninsula cities for support. Ms. Morris replied yes. Councilwoman Bailie said the grant money is threatened if they do not complete. She noted the Anchorage facility was 100% funded by the State. Ms. Morris noted we are one of four in the U.S. funded by the community. Councilwoman Monfor noted this is not just a city crisis center, it serves the entire Peninsula. Councilman Wise said passing this resolution does not bar us from giving money. Mrs. Morris explained the fund raising activities have not quit. Mayor Wagoner said he and City Mansger Brighton were in Juneau, i.he Legislators are looking at ways to cut the budget. Ike is concerned that if the City goes down as the sole requestor, the Legislature could throw out other requests we have. We have donated 3 acres, KENAI CITY COUNCIL, MINUTES FEBRUARY 6, 1985 Page 8 no one else has helped. Councilwoman Bailie said there is nothing on the priority list that can top this. The effort has been made in the community. We are almost at the point of exhaustion. If it takes away from other projects, she is still in favor of it. b. Father Targonsky, Russian Orthodox Church. We have worked very hard to have a center. We have exhausted our people. It is only proper that the State should help. This is for human beings and is more important. VOTE (Passed): Yess Measles, Monfor, Wise, Ackerly, Bailie Nos Wagoner C-6 Resolution 85-15 C-8 Resolution 85-17 - Awarding Engineering Design - Robin, Kenaitze, Eagle Rock, Sandpiper, Tern, S. Strawberry - Dowling, Rice C-9 Resolution 85-18 - Awarding Engineering Design - Cook Inlet View Or., Lilac - Wince, Corthell C-10 Resolution 85-19 - Awarding Engineering Design - S. Spruce Wince, Corthell C-11 Resolution 85-20 - Awarding Engineering Design - Juliussen, Basin View, Ames, Barabars - Wince, Corthell MOTION, Tables Councilman Measles moved, seconded by Councilman Ackerly, to have a work session and ask to schedule at the earliest time convenient to those here tonight. VOTE, Table (Passed): Yeas Measles, Monfor, Wagoner, Ackerly, Bailie Nos Wise C-12 Renewal of Liquor License - Kens Joe's C-13 Renewal of Liquor License - American Legion C-14 Renewal of Liquor License - Peninsula Oilers Oaken Keg #58 C-15 Renewal of Liquor License - Kenai Merit Inn C-17 Renewal of Liquor License - Pines Club Approved by Consent Agenda. C-16 Renewal of Liquor License - Rainbow Bar 6 Grill Little Ski Mo Clerk Whelan reported the Rainbow Bar 6 Grill is current, but she is requesting a postponement for Little Ski Mo. Councilman Wise requested dividing the question. MOTION, Rainbow Bar 6 Grills Councilman Wise moved, seconded by Councilman Ackerly, to send a letter of non -objection to ABC regarding the Rainbow Bar do Grill. Motion passed by unanimous consent.. MOTION, Little Ski Mos Councilman Wise moved, seconded by Councilman Ackerly, to send a letter on non -objection to ABC subject to clearance of Borough objection. r 1 KENAI CITY COUNCIL, MINUTES t FEBRUARY 6, 1985 Page 9 Motion passed by unanimous consent. D. MINUTES D-1 Regular Meeting, Jan. 16, 1985 Approved by Consent Agenda. E. CORRESPONDENCE E-1 M. Dimmick, Pros., KPB - a. Waste Incineration Project b. Sales Tax Ordinance E-2 Kenai Chamber of Commerce - Annual Report E-3 P. Shealy, City Manager, Homer - Borough Sales Tax Ordinance Approved by Consent Agenda. <„. E-4 P. Nault - Speed Limit, Spur Highway Public Works Director Kornelis explained Police Chief Ross has spoken to the State numerous times. He has written f letters, their last response was that they would have a speed study. Chief Ross reported he has spoken to them, they will move 35 MPH back to the high school. Councilman Wise suggested going se far as Tinker. Councilman Ackerly ` said he was in favor of 35 MPH past the Jr. High. Mayor Wagoner requested Administration look into the problem and report back to Council. t Council agreed to the request. F. OLD BUSINESS None r; G. NEW BUSINESS °.s.� G-1 Bills to be Paid, Bills to be Ratified MOTIONS Councilman Ackerly moved, seconded by Councilwoman Bailie, to approve with addition of the McLane bill. Motion passed by unanimous consent. G-2 Requisitions Exceeding $1,000 --- i MOTIONS Councilman Measles moved, seconded by Councilwoman Monfor, _ to approve the requisitions as submitted. : Motion passed by unanimous consent. G-3 Ord. 1010-85 - Finding City -Owned Lands not Required for -f Public Purpose - Evergreen �} G-4 Ord. 1011-85 - Finding City -Owned Lands not Required for '1;0,!; Public Purpose - Richka Creek .r t` 6pp a Rd by Consent Agenda. I� G -5 Lease Amendment do Assignment - Pratt to Zehrung - Aleyeska f S/D 7 KENAI CITY COUNCIL, MINUTES FESEUARY 6, 1985 Page 10 MOTIONS Councilwoman Monfor moved, seconded by Councilwoman Bailie, to approve the lease amendment. MOTION, Amendments Councilman Wise moved, oeconded by Councilman Measles, to amend the motion to delete the words "and future" from recommendation #2, line 2. VOTE, Amendments Notion passed by unanimous consent. VOTE, Main Motion as Amendeds Motion passed by unanimous consent. G-6 Vacation of Utility Easement - Davidson S/D MOTIONS Councilman Ackerly moved, seconded by Councilman Measles,to approve the vacation request. Motion peoued by unanimous consent. G-7 Vacation - Kenai Original lowncite MOTIONS Councilman Wise moved, seconded by Councilman Ackerly, to send a letter of non -objection to the Borough regarding the vacation request. Motion passed by unanimous consent. G-8 Lease Application - Larry's Flying - FSO S/D MOTIONS Councilman Ackerly moved, seconded by Councilman Measles, to spprove the lease application. MOTION, Additions Councilman Ackerly moved, with consent of sscond, to add the 6 conditions. In reply to questions, Land Manager Labahn explained, there is no ramp in front, the ramp extension is 1200 ft., the appraisal was ordered. FBO is limited to 50% increase. He will provide gravel access. Motion passed by unanimous consent. G-10 Vehicle Parking - O'Connell, Swarner - Municipal Reaervo S/D MOTIONS Councilman Wise moved, seconded by Councilman Ackerly, to approve the lease application. Land Manager Labahn explained, thera wau a problem with paved parking area bocauae of underground storm drain. They will leave gravel till the liner; are relocated. • KENAI CITY COUNCIL, MINUTES FEBRUARY 6, 1985 Page 11 MOTION, Amendments Councilman Wise moved, seconded by Councilwoman Monfor, to stipulate that if the applicant paves and the City has to dig up, replacement is the responsibility of lessee. Mr. Swarner agreed to the stipulation. VOTE, Amendments Motion passed by unanimous consent. VOTE, Main Motion as Amendeds Motion passed by unanimous consent. G-11 Tikigaq Const. - Police Dept. Addtn., Change Order #2 - $1 ,610 MOTIONS Councilman Ackerly moved, seconded by Councilman Measles, to approve the change order. Councilman Ackerly noted they say it is their fault crud "a pay for iL. Why? Mayor Wagoner noted it says it was a misunderstanding with the building official. Who is it7 Public Works Director Kornelis replied, Building Inspector Hackney. Police Chief Ross explained, there was confusion between the architect and Mr. Hackney as to the urinal facility. The plumbing is in, but not the fixture. Mr. Hackney caught the error. Mayor Wagoner noted 8 hours is much time. City Manager Brighton explained, he is assuming responsibility he may not have to. If we are going to change the drawings, we should do in writing. VOTE (Failed)s Yeas Measles, Wise, Bailie No: Monfor, Wagoner, Ackerly Councilman Wise asked for a reconsideration so the work can continue. Mayor Wagoner suggested Administration come back with a resolution. G-12 Discussion - Ord. 997-84 - Amending KMC 5.35 - Contamination During Oil h Gas Drilling Councilman Wine explained this did not get a 2nd when it was introduced. He asked for discussion tonight. When the City adopted the Code on oil A gas, Sect. A was the only one adopted. At the request of Union Oil, subparagraph B woo added. When we amended the ordinance we permitted earth pits to be used. The City Manager can permit them. He is not a hydraulic engineer nor is any member of his staff. It is an unfair burden on the City Manager. He would approve after DEC approval. If they stop drilling, within 60 days of drilling they have to get rid of the mud. This was a requirement of paragraph A. This is no problem with steel pits, but with earthen pits, we do not say it has to be removed. If there is another well drilled in the area, we need assurances that we are not going to have further shandonment of wells. City Manager Brighton said under Borough Code they are responsible for solid waste disposal. Councilman Wibe replied, there is a presumption in drilling a well, there will be some substance. We are asking them to use earthen pits. The City Manager should not be required to get a professional opinion. The original ord. required the whole thing be drilled out. Wj tire just saying if it goes into a reserve pit, somebody with competence tells us r KENAI CITY COUNCIL, MINUTES FEBRUARY 6, 1985 Page 12 it is sound. And that once they quit, it is removed. Mayor Wagoner said this may be infringing or trying to get this back. Councilman Wise said our zoning ordinance does not permit any disposal of solid waste. They are doing it with a DEC permit that will not be re -issued. PUBLIC COMMENT: s. Atty. Tom Boedeeker, Kenai Peninsula Borough. The Borough took over operating of the facility system, they do not have authority over regulations on disposal or on private property. Councilman Measles noted there about 5 layers of regulations regarding this. This would only add another. Councilman Wise explained, we should protect the City Manager. Councilman Ackerly said he is not satisfied DEC is doing their job. Mayor Wagoner said they asked for an extension of temporary disposal to leave in the pit a longer time. There are other drilling muds in the city that are left there. They were supposed to pump solids, where do they put non-pumpable wastes? Councilman Measles replied, at the Sterling dump. City Manager Brighton suggested item "a", line 1, delete the word "normally." Council agreed to delete item "b" and have it up for introduction at the Feb. 209 1985 meeting. G-13 Discussion - Council on Aging By -Laws Councilwoman Bailie said these have been approved by the Council on Aging. Mayor Wagoner will appoint the members at the Feb. 20, 1985 meeting. G-14 Games of Chance & Skill - American Legion G-15 Games of Chance & Skill - American Legion Aux. G-16 Games of Chance & Skill - Kenai Emblem Club Approved by Consent Agenda. H. REPORTS H-1 City Manager City Manager Brighton spoke. a. He distributed a report from the Resource Development Commission, progress report for 1980 to 1984. b. He distributed a report from Building Inspector Hackney, 13 year report on building permits. C. He distributed a report from Rec. Director McGillivray. They will need $21,000 for salaries prior to the end of the fiscal year. He has asked Mr. McGillivray to find ways to lower the costs. Finance Director Brown explained, if the Rec. Center continues at the present schedule, they will have to shut down. Mayor Wagoner suggested the girls at the desk supervise the racquetball courts and the gym. Mr. McGillivray explained they are supervising from 6:00 to 10:00 during open gym. The person at the desk does the cleaning, etc. Mayor Wagoner said he would like a review of income from last year and this year, with the plan of making it self-supporting. Councilman Ackerly asked why this shortfall occurred. Mr. McGillivray explained, they left out the hours for gym supervision and leave time for employees when they made up the budget. They have looked at times they could close down the gym. City Manager Brighton said he would bring a proposal to Council Feb. 20, 1985. KENAI CITY COUNCIL, MINUTLS FEBRUARY 6, 1985 Page 13 d. He distributed Airport Manager Ernst's memo regarding apron extension, update of master plan and float plane basin. They consider the float plane basin as a 1986 project, not 1985. We may have to tap airport land funds for the project. e. He distributed Police Chief Ross' memo regarding 911 system. It has been funded by a State grant, and is expiring. The Borough will fund, but municipalities must give up their power to the Borough. It would come from the general fund, not a special assessment. He will introduce this at the Feb. 20, 1985 meeting. f. He has had an offer to purchase the remainder of Section 36. We will need a new appraisal. He requests partial release and has put $500 down. Councilman Wise said we should re -advertise based on the fact no dates were provided. This has eliminated a number of people from making a proposal. Legal Assistant Callahan said it has to be started over, it is a different clause. Mayor Wagner asked, how many people came in and said they did not bid because of the restriction and how many have come in to purchase? Finance Director Brown said he had one, City Manager Brighton replied, none. Land Manager Labahn said Mr. Lowry said he dropped out because of lack of partial release. City Manager Brighton reviewed the Code and stated the City Manager can negotiate a sale. Councilman Wise noted a deed of release is not a term. PUBLIC COMMENTS 1. Dave Brown. This has been well advertised. People interested are well aware of the options. It has been out since October and no one has come to Mr. Brighton. Councilman Measles noted, if we leave in the no -release clause we will not sell the property, or we will sell to big money outside. Councilman Wise noted he will have to pay Davis -Bacon wages, it is a City project Mr. Callahan explained, the question is if a sale will be under section "e" or negotiated by Mr. Brighton. If it is negotiated there is latitude. There is a problem in changing the release clause if it was not part of the original offer. Mayor Wagoner replied, the bidding process is over, this is a new ball game. This proposal starts now. Mr. Callahan said, then we are not under section "a." We must go for a new appraisal and negotiate. Councilman Wise noted he would have right of 1st refusal. Mr. Callahan noted he is not a member of the Alaska Bar, any advice he gives is subject to approval of Atty. Rogers. Mr. Brown did not submit a bid originally. His bid was later and conditional on different terms than the original bid. We have a new offer. City Manager Brighton reviewed - Administration pursue like any other piece of real estate, advertise after value is established, if there are other bidders Mr. Brown has the right to match. He noted it will take 60 days. Councilman Measles asked what would happen to those who bought without the partial release and want to have it now? Mr. Callahan replied, that sale was done under terms offered. there is a big difference with release provision and without release provision. Councilman Measles asked if we would go out to bid again with all 3 tracts. Mr. Brown said he was making one offer on 3 tracts. Mayor Wagoner said that is his choice, his offer will set the bids. City Manager Brighton explained the City is not trying to hold onto the lands, but they do not want to be subject to a lawsuit. Mr. Callahan explained the City's concerns is the responsibility of the lands to the citizens. Mr. Brown noted he may not be able to match the offer and the City may be left with the land. KENAI CITY COUNCIL, MINUTES FEBRUARY 6, 1985 Page 14 g. Land Manager Labahn's memo (Info 010) regarding oil do gas lease sale. They are Salamatof and the cemetery. Land Manager Labahn explained the City has surface rights, the State has subsurface rights. There will be no subsurface drilling. As for the cemetery, it would be allowed, but there would be objections, the City has 3rd party interest. MOTIONS Councilman Wise moved, seconded by Councilman Ackerly, to send a letter of non -objection. Motion passed by unanimous consent. H-2 City Attorney None H-3 Mayor Mayor Wagoner spoke. a. He nominated the following for Old Town Study Committees Bob Cowan, Chairman Peggy Arness Leslie Asher Fred Braun Roger Meeks Father Targonsky Tom Tomrdle He also proposed sunset status and disband at the end of the study and reconvene if necessary. MOTIONS Councilman Wise moved, seconded by Councilman Ackerly, to approve the nominations and policies. Motion passed by unanimous consent. b. He nominated Cherry Carson for replacement on the Library Commission. MOTIONS Councilman Wise moved, seconded by Councilman Ackerly, to approve the nomination. VOTE (Passed): Yess Measles, Wise, Wagoner, Ackerly, Bailie No: Monfor c. Regarding the Juneau trip. They are looking at curtailing Federal Revenue Sharing. Son. Stevens said it will die in 1986. Pros. Reagan will cut earlier if he can. Also, Federal Library support. Librarian DeForeet said we do not get anything from them. City Manac_ar Brighton said there will be $700 Million to $800 Million for Capital Improvement Projects. If Bradley Lake and Suaitns are dropped, they will spend as much as last year. Mayor Wagoner paid there is a deficit now. There will be further reductions in the Governor's budget. The shortfall is $300 Million. KENAI CITY COUNCIL, MINUTES FEBRUARY 6, 1985 Page 15 d. Regarding the landscape architect from Anchorage. They will not loan one. He will report to the landscape committee. H-4 City Clerk Clerk Whelan spoke. a. She read the telephone poll (item H-4) into the records spend $400 for ad in the KCHS auditorium dedication. Council voted 7 yes votes. b. She reminded the Council of the Resource Development Program Feb. 9. c. She reminded Council of the work session Feb. 14. d. Jr. Miss Career Day was this date, the candidates visited the Clerk's office. H-5 Finance Director None H-6 Planning do Zoning None H-7 Harbor Commission None H-8 Recreation Commission None H-9 Library Commission None I. PERSONS PRESENT SCHEDULED TO BE HEARD 1. Councilwoman Bailie. Regarding the cemetery. A survey was done. The City should actively take over administration. There is no charge for graves. They need a plat of the area. They can add 300-500 more. She suggested putting it in Public Works or Recreation budget. She requested the item be added to the Feb. 14 work session. 2. Councilman Ackerly noted the Strawberry Road sign is spelled wrong. 3. Councilman Ackerly said there have a number of requests for sand on the icy roads. Public Works Director Kornelis reported the sander will be here in 2-3 weeks. They are working 2 shifts. 4. Councilman Ackerly reminded Council of the KCHS auditorium dedication Feb. 8. 5. Councilwoman Bailie reminded Council of the Wildwood dedication Feb. 9. 6. Councilwoman Monfor noted the Mt. Redoubt sign on the bluff is falling down. Also, the bluff area looks very bad. 1. Councilwoman Monfor asked that the 4-lane road be encouraged. s KENAI CITY COUNCIL, MINUTES FEBRUARY 6, 1985 Page 16 8. Dave Brown. He requested Council postpone advertising of the tracts (Section 36) till after Feb. 20 Council meeting to allow him to revise. Council agreed to discuss the item Feb. 20 meeting. 9. Senior Citizen Coordinator Porter asked if Council would pass the By -Laws. MOTIONS Councilman Wise moved, seconded by Councilman Ackerly, to approve the By -Laws. Motion passed by unanimous consent. 10. Public Works Director Kornelis noted the change order (item G-11) did not pass. Should he stop him from working? Mayor Wagoner replied the work is done, according to the invoice. Mr. Kornelis explained, one heater has been removed. MOTION, Reconsiderations Councilman Ackerly moved, seconded by Councilwoman Monfort to reconsider the change order. Motion passed by unanimous consent. MOTION, Amendments Councilman Ackerly moved, seconded by Councilwomaa Monfort to amend the motion, that we go ahead and execute the change order and bill the architect for the screw -up. VOTE, Amendments Motion passed by unanimous consent. VOTE, Main Motion as Amendeds Motion passed by unanimous consent. ADJOURNMENT: Meeting adjourned at 12:30 AM. /zv Janet Whelan C i t y Clerk AM`R©VED BY COUNCIL DATE CITY tX s . t. s 'KENAI CITY COUNCIL FEB. b, i985 Partial Translation C-5 Resolution 85-14 - Recommending Guidelines - Kenai River Comprehensive Management Plan MOTION$ Councilwoman Monfor moved, seconded by Councilman Measles, to adopt the resolution. MOTION, Amendments Councilwoman Monfor moved, seconded by Councilwoman Bailie, to amend the motion to include the Kenai River from west of the bridge south to the mouth of the river in the study area. City Manager Brighton noted from the bridge to the mouth is primarily industrial. Councilwoman Monfor replied the group - is only advisory, it will have to come back to the City. The Board just wants to study the area. VOTE, Amendment (Passed)s Yess Monfor, Wise, Wagoner, Bailie Nos Measles, Ackerly PUBLIC COMMENTS a. Ruby Coyle, Kenai. When the Senate had hearings on SB-14, she testified that she did not want from the bridge included because it was industrial. The fariher away you keep the Parks Dept. the better it is. b. Waldo Coyle, Kenai. From what he has seen of the Parks Dept., we are inviting disaster. Don't let them say they will not take eminent domain, it is in the i Constitution. If the precedent is set, no river or stream in Alaska would be safe. Councilwoman Monfor said it is stated in the Act that the State will not use eminent domain. c. Leo Oberts, Kenai. Mr. Oberts distributed material. He suggested the Div. of Parks put chemical toilets on the river rather than attending meetings. He agreed with the Coyle's regarding working with government agencies. They tend to increase personnel with more 'regulations. Keep them away from the industrial area. They would have the authority to override the City and i the Borough. The Board is advisory only. We have the -- Corps. of Engineers, Wetlands, National Marine Fisheries, DEC, Fish do Wildlife, U.S. Forest Service, -- Coast Guard, Fish h Game to work with. d. Loretta Breeden, Kenai. She is on the Board, but her statements are hers, not the Board's. She is in favor El • RENA'.. CITY COUNCI'. Feb. 6, 1985 CWM of the resolution. It is a matter of good faith for the rest of the residents along the river. She is glad to see the City considering the rest of the river and resource protection. Not one of the speeches tonight were regarding resource, they were all development related. If we do not have the resource, it would have no value to commercial and sports fishermen. The river estuary is most important part of the river. Eminent domain is out now, we will be forced with Coastal Zone Management. This will not affect the canneries. We are merely asking for a tool to work with City planning to see how best to manage the land. Below the bridge to the west is the area left out. The other side is wetlands. The City has designated a large portion of the area for wildlife. She cannot see the oil companies or canneries being affected unleao they do something wrong. b. Waldo Coyle (contd). The problem on the river is boats, enforcement and too many sports fishermen. There is no enforcement on the river. All violations are covered by Fish h Wildlife, they have been derelict in their duties. They have allowed sports fishermen to fish on the spawning grounds. The Park Service wants to.develop every spare piece of land so they can get more people down here to go fishing. It could be fished out in 10 years. c. Leo Oberts (contd). The river should be managed for salmon. All others depend on this. When erosion starts, the spawning areas are destroyed. of Ruby Coyle (contd). In 1974 Cook Inlet was declared distressed fishery. In 1975 they issued limited fishery. The State has allowed guides (another commercial industry) to go in to an area already distressed. No one has the power to limit guides. d. Loretta Breeden (contd). She suggested considering an amendment that the area in special management area should be there because for the lot time there was a procession of boats going down that far. Law enforcement will stop at the bridge. The City may have to have a harbor patrol. Mayor Wagoner said an amendment has to be done by the Legislature. Councilman Wise suggested an umbrella agency to coordinate all agencies involved. VOTE, Main Motion so Amendeds Yess Monfor, Wise No: Measles, Wagoner, Ackorly, Bailie Janet Whelan City Clerk I PARTIAL VERBATIM February 6, 1985 MANAGER'S REPORT CITY MANAGER BRIGHTONs Last and by no means least you will find an offer to purchase the remainder of .Section 36 on the bluff side of the Spur Highway. Now I told the gentleman who made the offer that if the appraisal was still within the six month period, that if there was a basic determination that there ,, appeared to be no other interest and since no one else bid on these properties, that we could probably negotiate the sale. However, that six month period has expired and we will have to get a new appraioal. First of all he has made a legitimate offer to the City for which he is either expecting acceptance or rejection. I think under the codes we have to reject it out of hand because we have a code to go by in order to sell this real estate and one of them is a six months, an appraisal that is no older than six months. Secondly, it is the Finance Department's request that we alter what (inaudible) advertisement was instead of paying on an annual basis that we sell it on collecting rent on a monthly basis as opposed to an annual basis and thirdly... MAYOR WAGONER$ That would change my ordinance wouldn't it? That ordinance is in effect now, that was changed a month and a half, two months ago. CITY MANAGER BRIGHTO's What I would hope that the Council would do is obviously from the Administration's standpoint we have to reject the offer because we can't comply with it but not lot it die there but direct the Administration to pursue with whatever stipulations you want us to pursue the potential sale of this u real estate to this particular proposer. He is here this evening and he apparently does need some information from the Council that will give him direction in his pursuit of this particular project. Jeff, I'm sure I've left something out that we discussed. _ LAND MANAGER JEFF LABAHNs One thing we didn't talk about is the partial rslssse CITY MANAGER BRIGHTONs Oh the partial release, his proposal requests the ability for partial releases on the real estate should he be the purchaser. We have suggested to him that he put his $500 down, which he has done, we will tomorrow order the t appraisal with any other guidance that the Council can give the Administration insofar as this particular situation is concerned. 1 0, ' MAYOR WAGONER: Pleauure of the Council? It looks like all of our efforts may culminate in success this year. It's only been seven of elyhL years. I for one are glad to see an offer like this tendered. Rest of the Council? 0 R COUNCILMAN JOHN WISES Regretably I think that the proposal the way published was so horribly deficient that it discouraged bids and I think that we should readvertise based on the fact that, well I have, let's say no deeds of release were provided, that's a major problem, that ter. Brown is requesting for here and I just feel that that major concern in my mind is really eliminated a number of people making proposals. They want to wait and I have no doubt that some of them did not bid deliberately because the terms and conditions they wanted to wait until the whole thing was oaten and then it blew up with the Lowry proposal and then we finally, we never were notified that Section 0 was actually consummated. The Council wasn't notified. I understand it has occurred without minimum bid but I think there were bidders discouraged because they read the specs. LEGAL ASSISTANT NATHAN CALLAHANs Well I think there's a little confusion here as I understand whet Bill's saying that it is going to be initiated from the start again. The land sale that has been completed doesn't have the partial release clause in it SOMEONEs That's true LEGAL ASSISTANT NATHAN CALLAHANs You're right, this is a different clause and that's one of the reasons this isn't just going to be negotiated as opposed to taking it so... COUNCILMAN JOHN WISES I got the impression that you're going to get a new appraisal and negotiate with Brown for sale of all three lots, tracts. CITY MANAGER BRIGHTONs Well I guess what we're saying is Council needs to give us direction on which route to pursue. I think it's open perhaps to pursue that route, however, if the Council feels that it ought to be advertised with those additional specifications, then that's what we will do. CITY MANAGER BRIGHTONs Well my feelinq if I may continue is, is that I felt that the original proposal was so unrealistic it deterred appropriate investors from making an interest and I'd like to see it readvertised with more appropriate bid conditions. MAYOR WAGONER: I just ask the Administration one thing, how many people have come in to City Hall and said the reason they didn't bid or weren't interested in bidding was the restrictions placed by the City and how many other people have come in and offered proposals to purchase this such as Mr. Brown has? CITY MANAGER BRIGt;TON: None to my knowledge. a 2 LAND MANAGER JEFF LABAHNs To answer your first question on Tract 0 there were two bidders as you were aware of. Mr. Lowry made it fairly clear that apparently the primary reason that he dropped out of contention was a lack of partial release clauses. Above and beyond that I can't really speak for why people did not bid, you know, perhaps Councilman Wise in correct at least to some extent that some people were discouraged because that provision wasn't in there. Hui anyway, th"re's really only one party that we know of that actually withdrew from contention basically of r the lack of partial release clauses. As far asp other people who are interested, there have been a couple of people who have called me from time to time basically to find out what was going on and at that time Tract 0 was still sort of hanging fire between Lowry and Mr. Roberto and its really only been in the last couple of weeks but that's been resolved so really only now is the fact before the Council as far as ok we've gat to pick up the pieces, where do we want to go and escentiaily this proposal Is what's pushing the Council forward at this time to prepare the property for sale again, FINANCE DIRECTOR CHARLEi BROWN: (inaudible because Council was talking in the background and he is hard to hear) ...one person did come in ...well the first one or two were for sale. He knows that there were no partial releases (inaudible) CITY MANAGER BRIGHTONs Let me read you a section of the code that I feel indicates that, and obviously I'm not going to do anything if the Council doeon't think I ought to, but it appears to me that under the code that City Manager could negotiate this sale. "If no offers are submitted meeting the minimum acceptable offer or appraised valuation, the City Manager may negotiate for sale of said tract or tracts of land with a modification of proposed terms or for less than the appraised valuation provided that no such negotiated sale for less than appraised value shall be bis..linq upon the City unlesu the terms and price therein are approved by the reoolution of the City Council." COUNCILMAN JOHN WISE, The comment "terms", I don't think deeds Of releases are a term. Normally the reference to a term is of cost and mode of payment. 1 would say changing the basic concept of sale on partial releases, to no partial releases is a major condition of sale it's not a change of terms which, I as I say I expect to relate to frequency of payment, amount of payment, the rate of interest, uo forth and so on. I really have a hard time buying that Hill. MAYOR TOM WAGONER: Well we're badgering around Mr. Brown's proposal. Maybe Mr. Brown would like to be heard. DAVID BROWNS I would likes to make one comment on readvertising - and I think that thif3 land has been well advertiou d for the last year and people that are interested in developing the property Jl 1 3 are well aware of the options that they have and I think that anybody has come forward acid made•, the City an offer, which they would have the right to do becauno thin package went out in October for sealed bids and I believe these Tracts A, B & C they were closed sometime in November and since that time no one has come to the City Manager to make an offer. I would like to ask the City Council to look at this offer and not to postpone it by going out for readvertising of it I think that it could jeopardize this offer that's before you now in that the longer it is lingering on out there that I may not be able to make this same offer a month from now. I am willing to answer any questions that you might have on this. MAYOR TOM WAGONERS questions of Mr. Brown? Pleasure of the Council. Councilman Ackerly. COUNCILMAN ACKERLYs I really have no problem with selling the property, I'm all for it and I pushed for it very vigorously. I would, of course, I think we ought to have a reappraisal on it because it has passed or lapsed in terms of our ordinance. OAVIO BROWNS I would like to make one comment on that if I could. The Code does allow the City Council to approve by " resolution any offer even thouqh it is less than the appraised value and I think that you have to consider what the appraised value 13 being that an appraisal is just a determination of what the fair market value in and that since thane tracts did go out for bid just back in October at this minimum bid and that nobody was interested in it, that would make the assumption that it might be already above the fair market values (inaudible). interested in bidding on those three traetn or that they have even come forth to place an offer to the City. MAYOR TOM WAGONER: Councilman Ackerly. COUNCILMAN ACKERLY: I've argued for a long time on the relation to appraisals and the value of the property more vigorously than probably anybody in this entire City because I'm a lessee and without a doubt I feel that I have paid more than my share for a long time due to an unfair appraisal but I have very little recourse because it's a tight -knit group. You can take it for whatever it's worth. Secondly, I would probably, I want a now appraisal and that's what I'm going to push for because we're going to live and die by the same sword that I have to live and die with, I guess. And second, I would have to probably to be in favor o► no reloase clauses because we have effectively told another bidder that we couldn't do that and I agree on what you say on appraisals I have difficulties with them. H!YOR TOM WAGONER: Councilman Measles. E I aZ,-,v.. - COUNCILMAN MEASLES: I have a comment. on the no release clause thing. If that clause stays in we insist on keeping that in and trying to sell this property, we're either not going to e411 the property or it's going to be sold to some bid outside developer you're going to completely eliminate any possibility of a small developer locally from doing anything with that land. 1 think it will sit there until some big California outfit comes in and buys it unless somebody's buying it strictly for speculation, they're going to sit there and hold it for ten years and dump the whole thing. It won't be developed under that, with that clause in it. MAYOR TOM WAGONER: The objectionable thing to the lack of release clause was the unfairness of bidders at the time and since that process has gone through I don't have any problem putting the release clause in either, but according to our attorney it would be kind of a unfair legal transaction we would make by allowing a successful bidder to get the release clauses at the time without completing the whole cycle. Councilman Wise. COUNCILMAN WISE: Two things that bother me, one is your payment schedule, you're not amortizing over 20 years, you're paying 1/20th of the principal note 85% plus interest every year so it means that your first payment would be 1/20th of the note plus interest on the wht.le thing. MAYOR TOM WAGONER: Excuse me thio is this man's business not the Council's though. COUNCILMAN WISE: It may be but he's making a proposal I just wanted to make sure that I'm reading it correctly the way that he has proposed it. Second is that by terms and conditions of the engineering design regardless of who you had do the construction (inaudible) go out and hire probably finance their own construction and still (inaudible) becouse that's the way the specs are written for the project. They are written for a City project. MAYOR TOM WAGONERS Councilwoman Bailie. COUNCILWOMAN BAILIE: Yes Mr. Mayor, as far as I'm concerned I think the bidding process is complete. We've already gone that route and it's over with. I think according to what Mr. Brighton stated a few moments ago that we right now have the option of where the City Manager can, I feel that the release clause was a term of the bidding process of the sale I consider it a term of the sale. Right now that could be changed if the fact, and I for one are for allowing the City Manager to step in and deal with Mr. Brown with regards to Tracts A, 8 h C and include the partial release clause or exclude it. MAYOR TOM WAGONER: 1 would to a point but ao much as I hate to do it, I have to totally agree with Councilman Wise. There is a tremendous difference I think in legally in terms and conditions S 0 and I think that re!z—ase would probably be found to be a condition of term. I think terms in our ordinance do mean financial not the conditinnn of the gale and if wp stssrt interpreting; things that loosely, but I don't think that's a problem Councilwoman Bailie, 1 don't think that's a problem we can still sell it by resolution Council has that authority and within that resolution we can agree to the release as a part of the body of that resolution, I believe, can we not? LEGAL ASSISTANT CALLANANs This gets curiouser and curiouser. The initial question I'm going to have to have answered is whether this sale is going to be done under Subsection a that you're taking about or whether it's going to be initiated again from the beginning. If it's going to be negotiated by the City Manager, and I think there is some latitude there as to whether or not this situation fits in, I'm not saying it's automatically excluded. I'm just saying there is a problem possibly with changing a term as material as a release clause which as I understand it was not a part of the original bid offer. That is a very material term and there may have been people who didn't bid because that wasn't one of the conditions that would be involved. MAYOR TOM WAGONERS Excuse me wait a minute. The bidding process is over. That is money out the window, that's time well spent. We're in a new ballgame. That bidding process, the only property that was acted on was the one tract. The whole process is over. There have been no bids received on the other three. This is a proposal that as far as I'm concerned starts now and is new. LEGAL ASSISTANT CALLAHAN: That's point A that I wanted to get to. In that case, we're not under Subsection e. We just start all over again, get an appraisal on the conditions that he's looking for. MAYOR TOM WAGONER: That's what I say Council wants to do. Councilman Ackerly. COUNCILMAN ACKERLYs I don't but you can go ahead. John? COUNCILMAN WISES I wasn't listening. MAYOR TOM WAGONERs Chris? COUNCILWOMAN MONFORs Yes. MAYOR TOM WAGONERS Raymond? COUNCILMAN MEASLES: Council. SOMEBODY: Tom? 0 I don't approve unless it comes back to the 6 s , MAYOR T014 WAGONERs I say yesh qo, You got a coneurr.unce John didn't say. COUNCILMAN WISES I didn't hear the question. MAYOR TOM WAGONERS We're not under Section a any longer, we're going for the new appraisal LEGAL ASSISTANT CALLAHAN: Well the question that I had that 1 thought we reached was whether we were going to he renegotiating or negotiating this sale under Subsection a of the ordinance and I'm not sure what the number is, or whether this was going to be a new offer to purchase the land. He submitted his $500, we already have that. All we need is another appraisal and all of the conditions that you want would be conditions that would be considered under that new offer. That would not be a problem an I don't mean to give you that idea if I have. COUNCILMAN WISES A now offer would go to bid and he'd have the right of first refusal. MAYOR TOM WAGONERS One or the usher. FINANCE DIRECTOR BROWNs If thin to treated an an offer and not as a negotiated sale under the terms (inaudible) it has to go to bid because all now offers, offer simply initiates the sale proceeding, we have the appraisal and it goes to bid, so if 1 read the attorney right there's an inclusion in that. COUNCILWOMAN BAILIEs It can bn a negotiated sale, does that have to go to bid? It can't be a negotiated sale? LEGAL ASSISTANT CALLAHANs A negotiated sale does not have to go to bid if it's a negotiated sale under Subsection e. What we're talking about is whether or not we're coming within the terms of that section. And another thing I should put on the record at this point that is going to complicate it even further is that I'm not a member of the Bar in Alaska and I work for the City Attorney so any advice that I give you on this issue is given with the caveat that it's subject to modification by your City Attorney. CITY MANAGER BRIGHTONs Financo Director before we sign this check let's tree if he passes the Bar. LEGAL ASSISTANT CALLAHAN: But as I understand it, you Mr. Brown, you did not submit a bid when this land was put up for bid. DAVID BROWNs That's correct. LEGAL ASSISTANT CALLAHAN: And when you did submit a bid it was after the bids were cloned and you submitted a bid that met the fair market value appraisal. 7 DAVID BROWN: That's correct. LEGAL ASSISTANT CALLAHAN: And your bid was conditioned on different terms then what were offered in the initial bid. DAVID BROWNS Yes. LEGAL ASSISTANT CALLAHANs So I think we have a new offer is what I'm getting to. i CITY MANAGER BRIGHTONs If in fact, it is a new offer and as the, Finance Director has said, then he has initiated the process we will go to bid and he will have the right of first refusal. In other words, if somebody bids over him he has the right to answer. Is that what the Council's telling us? I COUNCILMAN MEASLESs What happened to the negotiated sale? MAYOR TOM WAGONERS That's what we covered first when I questioned the difference between terms and conditions and whoa the legal definition of terms versus conditions are. LEGAL ASSISTANT CALLAHANs Well as i DAVID BROWNS As I read it the City Manager has three options to him one is by negotiated sale, one is by outcry auction to the highest responsible bidder, or by competitive sealed bids. I CITY MANAGER BRIGHTON: Those options are available only under certain circumstances I first of all must arrive at the fact that I'm convinced there is no other interest in the real estate, that's number one. And after that has been accomplished with some justification, then a negotiated sale is permissible. LEGAL ASSISTANT CALLAHANs The other side of the coin to be fair to Mr. Brown is what he is saying is correct that anybody else could have approached the City Manager and made the same offer that you did for negotiation so I guano what I'm saying basically is that I have deep reservations about the chcnge of the term but that this could conceivably fit under the negotiation section subsection e. If there are other people out there who would have bid on this land had that release clause, been the term of the bid, conceivably that could have a bone of contention with the City. j CITY MANAGER BRIGHTONs Mr. Chairman I would recommend to Council ' I that we pursue this as though it were a sale on any other piece of real estate, he has put his $500 down for the appraisal that - we advertised the real estate after we know what the fair market -. value of the real pgtatN 13, that if there are other bidders whu bid above him he has the right to meet those bids and take the real estate. 8 I MAYOR TOM WAGONF_Rs Councilman Measles. COUNCILMAN MEASLESs How long is all this going to take? - SOMEONEs Two years. CITY MANAGER BRIGHTONs Ok., to begin with two weeks for the appraisal, LAND MANAGER JEFF LABAHNs Six weeks for advertising it. r CITY MANAGER BRIGHTON: So we're looking at two months to open bids. COUNCILMAN MEASLESs Now you see why it's taken us eight years to try and get rid of a piece of land. COUNCILWOMAN MONFOR: Why does it take six weeks to advertise? CITY MANAGER BRIGHTON: A 30 day requirement. MAYOR TOM WAGONER: Well if it's 30 days it should only take h weeks to process. Councilwoman Bailie. COUNCILWOMAN BAILIE: Are there any lands within the City right now that can be bought? Can somebody just come up and make an offer and buy? _._ MAYOR TOM WAGONERs Yes there are to a point, those that are under leoee, but,they still had to have an appraisal, but I don't believe we had to wait two weeks for appraisal and then wait another period of time for advertising. I think that ad could be written contingont upon meeting the minimum appraised value of the property. There's nothing wrong with that. CITY MANAGER BRIGHTON; We can't write the ad without knowing what the appraisal is. MAYOR TOM WAGONERS All you had to coy in the ad is minimum acceptable bid will be the appraised value at thR time bids are opening. You're going to have that established by the appraisal. I don't think there's anything illegal about that or anything to change about it, it's right there you're running through an appraisal and it doesn't matter whether the appraisal is done two weeks before the bids are open or four weeks before the bids are open. You're still advertising for the sale of that property. LEGAL ASSISTANT CALLAHANs If I can ask just one last request ' here I think this has gotten down to a point where you need to — -- definitely know for your City Attorney just what exactly that subsection means and if this can possibly be delayed for ,just a week to get his definite opinion on whether Mr. Brown qualifies 9 48 tinder that anti avoid this whole necond offer would it be possible to do that? We may save a lot of headache and we may save an unnecessary bidding process. MAYOR TOM WAGONERS Or we may delay for another two weeks before Council meets again. COUNCILMAN WISE: I think there's a point, the attorney makes a recommendation based on his knowledge of law. The Attorney is not a judge, doesn't make law, he only interprets and gives his pronunciation. The Council makes the law. You make your recommendation, the Council will say whether they accept that recommendation or not. I think the attitude of the Council at this moment as I read it is to obtain an appraisal and readvertise se expeditiously as possible (inaudible) two weeks for an appraisal, six weeks for the advertisement. LEGAL ASSISTANT CALLAHANs In any event you're going to have to have sit appraisal, right? CITY MANAGER BRIGHTONs We'll order that in the morning. MAYOR TOM WAGONERS I'm not sure what Councilman Wise says, he's speaking for more then himself when he made his statement. What is the pleasure of the Counr,il at this time? I know six weeks sounds like a long time but like Raymond says, now we know why it's taken six years or eight years and now maybe we can get some final determination one way or the other. One thing I want to think about, I want to get rid of this land as bad as anybody, Mr. Brown. I think the land belongs in the hands of the people that are going to do something with it and develop it, ok? But at the same time I also feel that we owe it to the citizens of the City of Kenai if in six weeks we can obtain a higher price than you are offering right now in following our ordinances, that's why the ordinances are set up to assure to a point that we do this. I think we owe that to the City taxpayers as (inaudible) That's my attitude, I say go with a new sale. Mr. Brighton? CITY MANAGER BRIGHTON: To justify that recommendation to go with the new sale, you have heard tonight that the City has been put on notice that the reason that they did not, although they bid and did not purchase one of the parcels was because he could not get partial releases. In addition to that an individual has been in to the Finance Director's office and said if partial releases would have been available I wuuld have bid. Now we've been put on notice that other people would have bid had that particular section been in there. If we go ahead and do a sale knowing that with partial releases without notifying the people who said they were interested in those circumstances. we may be in dire jeopardy. 10 a • -- M, MAYOR TOM WAGONER: Novi the only other thing to that is Mr. Brown is asking for the entire remainder of the parcels and most of those people were looking at a portion of it. I have know way of knowing, but that's a pretty safe bet. I would be in favor of the appraisal and go for the new sale. Councilman Measles? COUNCILMAN MEASLES: Legal question of our non -attorney. If we advertise these three tracts with the release clause change, what happens to the guy that bought Tract B and still has that clause in it if he comes back and wants it taken out of his sale agreement and then what happens if we do that and the original buyer of that tract comes back and you refused to take it out for me I had was forced to give it up because of that and you took it out for the next lower bidder, and I wanted Tract B not A, H or C. CITY MANAGER BRIGHTONs That's a law school final question LEGAL ASSISTANT CALLAHANs Councilman, the short answer to your question is that sale was done under• the terms that were offered. That sale is all over with and the person who bought it was willing to buy it under those conditions and its over with now. So the terms of that sale don't really relate to the terms of this offer now, but the problem you are bringing up though is just the important problem that I'm trying to make. There is a big difference between offering some land for sale without that release provision in it and offering that land for sale with that release provision in the conditions. I'm not so concerned about the person who ended up buying the tract as I am about the people who would have bid had that condition been in there and didn't because it wasn't. So the short anower is it's a different sale, it's over with, those terms don't really matter on these other three tracts. Does that help at all? `i CITY MANAGER BRIGHTONs It really didn't answer his question because the guy who purchased that property would have the right to come in at any time whether we changed the sales or not and request that the Council changed the conditions under which he bought. LEGAL ASSISTANT CALLAHAN: Exactly. Anybody could have come in and made the same offer that Mr. Brown has made. FINANCE DIRECTOR BROWN: We've discussed that possibility and I think the City Manager and the Land Manager and 1 are in agreement that we should not change the release clause of that sale to Mr. (?). fie is stuck with that terms. COUNCILMAN WISES For twenty years. FINANCE DIRECTOR BROWN: For exactly the reason you brought up. 11 iR COUNCILMAN MEASLES: If we're going out to bid on this again, will it be bid as a total all three, tracts as one sale which is: what the offer has been made on? LEGAL ASSISTANT CALLAHAN: I believe the offer was on three separate tracts at three different prices was it not, or was it just one total sum for all of it? DAVID BROWN: It's three separate offers. LEGAL ASSISTANT CALLAHAN: So we still have three separate tracts. COUNCILMAN MEASLES: Three separate offers, or one offer on three tracts? DAVID BROWNS It's actually one offer on 'three tracts. The prices are stated separately. That was just for a matter of clarity to show that each one was being offered at what I considered the fair market value or the last appraised value. MAYOR TOM WAGONER: I say what we're talking about is kind of immaterial. It's up to Mr. Brown to make the request for sale in whatever size he wants. If he wants to include it as all inclusive in one bid, then he can do that. LEGAL ASSISTANT CALLAHAN: He's making the offer, we're starting over, he's making a new offer. COUNCILMAN MEASLES: His offer set the way the bidding will go. LEGAL ASSISTANT CALLAHAN: Right, and you just said it's one offer for all three tracts. DAVID BROWNS Yes. MAYOR TOM WAGONER: The consensus is that the offer will he made to be appraised bid and Mr. Brown will, whatever his offer, be able to meet or have the right to meet the highest bid as long as he is a participant of the bidding process. I mean you can't make the offer for property and then not bid and then come in and start all over again. DAVID BROWNS I think you lost me there. MAYOR TOM WAGONER: In other words you initiate the bid, you still had to be a bidder to match the highest offer bid for the property. In other words, you can't initiate the process and then sit back and not even turn in a bid and then still claim a right to match the highest bid. COUNCILWOMAN BAILIE.: Isn't he already though, turned in a bid, by initiating the offer? 12 0 MAYOR TOM WAG04ER: He'n initiating a request to have the property put up and appraised and listed for sale. He has -not made an offer, this is a new ballgame. If he wishes to do that that'll be up to him, but as all he's doing is putting his $500 down, asking for a reappraisal, and asking for it to be put up for bid. CITY MANAGER BRIGHTON: A legitimate technical offer cannot be made until we know what the appraised value is and it has to be at least the appraised value from his standpoint. COUNCILMAN MEASLES: I think we've complicated our land sale:. MAYOR TOM WAGONER: I don't think it's complicated at all. COUNCILMAN MEASLESt If it wasn't so complicated, we would have sold it a long time ago, Tom. What is the purpose of negotiated land sale in the ordinance? MAYOR TOM WAGONER: I guess we aren't in consensus because we weren't talking about a negotiated land sale. COUNCILMAN MEASLES: Hey, we talked it and we've got away from it, and we talked around it, and over it, and under it. MAYOR TOM WAGONERS The last thing we discussed and it seemed like we had a consensus of the Council that Mr. Brown give us $500 we were going to have a new appraisal done on the property of whatever he requested to have appraised and put up for sale and it is going to go out for advertisement to bid. The only thing that I told Mr. Brown that he should be aware that he has to be a bidding participant, not just requesting the land be put up for sale, to have the right to match the highest offer for the property and that's the way it wor'<s. LEGAL ASSISTANT CALLAHANs In other words, if you submit the fair market value you offer and somebody puts in an offer higher than that, you have the option of matching that higher offer and you would still get the purchase, ok. If nobody else bids, you get the land at fair market value. COUNCILMAN WISE: at your offer LEGAL ASSISTANT CALLAHANs At appraisal, right. COUNCILMAN WISEt At least appraisal, it could be below. COUNCILMAN MEASLESt It can't be below the appraised value. COUNCILMAN WISE: No, which is at least appraised 13 MAYOR TOM WAGONER: You were thinking once again on negotiated sale, under the appraised value.. On the sale of the property it has to be a minimum of the aNptaiaeci value,, that's the minirlum acceptable bid by ordinance. DAVID BROWNS But Council has the right to accept an offer that's less than the appraised value. MAYOR TOM WAGONERS Not in that case CITY MANAGER BRIGHTONs If there are no bids MAYOR TOM WAGONERS If there are no bids at appraised value, then the City Manager can negotiate after the bidding time has passed then the City Manager can negotiate at that time but not until DAVID BROWN: But isn't that where the City is at right now, that you couldn't put it out for bid, there is no bids. MAYOR TOM WAGONERS That's not where we're at. The problem is this if we allow a negotiation of the sale in the first place, Jeff, it's past the six month appraisal. Therefore, if we allow the City Manager to negotiate a sale under the old appraisal, the terms and conditions of the advertised sale still, according to what we heard earlier, have to apply to the negotiated sale as far as the release and to get away from that we go out to new bid. LEGAL ASSISTANT CALLAHANs There's a difference between saying if we'll change the terms to 15% down rather than 20: down as opposed to would you give me a release clause. There's just a significant difference between those two concepts and we've already been told that there, wore people that wanted to bid on this land had there been a release clause in the bid offer. I ' guess we could go around the bush another six times but that's the sum and substance of it. DAVID BROWNS So as I understand it you're saying that the modification of the proposed terms then that statement doesn't apply to the conveyance of a deed? �( (TAPE CHANGE) y MAYOR TOM WAGONERS We have not allowed that for other people who expressed that they would have had an interest or did have an interest and would have bid had that release not been in there at the time DAVID BROWNS But you have allowed other people because they have - i just as much of a right to walk into the City Manager's office as I have had over the last November, December, January, the last t. three months. 14 = bNET] MAYOR TOM WAGONER: For your information one person bid on one piece and because we would not allow a change in that, he released his right to purchase that and another person did. DAVID BROWNS But that was on tract B. MAYOR TOM WAGONERS I don't know what the attorney said last time DAVID BROWNS But he had the opportunity to come in and place an offer on Tracts A, B A C also such as I did and I think any citizen in Kenai, or for that matter, anyone had that some opportunity to come in. I think it has been well advertised and to ask for another postponement, the two week appraisal, and then the six weeks in advertising, that it's just putting a longer delay on it and I'm not sure that in 8 weeks time that you're going to generate any more interest than you have in the 3 months that there were no bids on them, from the time that there were no bids on A, B & C. People that make, that are interested in this property knew as well as I did that the City was open to an offer that wasn't exactly how they spelled it out in their bid and they've had this opportunity for three months now to come forward and haven't heard of any such an offer. CITY MANAGER BRIGHTON: We refused that kind of an offer ' LEGAL ASSISTANT CALLAHAN: Mr. Lowry basically made that kind of an offer CITY MANAGER BRIGHTONs Yes, he made that offer and we refused - I it. DAVID BROWNS But was that on Tracts A, B & C? MAYOR TOM WAGONERS Relation to the some or portion thereof of the some sale and some of the same property DAVID BROWNS But that's because the City had another bidder that was willing to pay fair market value for the original conditions and terms of that bid could you not accept Mr. Lowry's offer. �I MAYOR TOM WAGONERS But you've also oat right here and heard Mr. ' Brown say there wan a person that come in and expressed to him before you did whether its a verbal offer or written offer, expressed the fact that he would have bid on the property had -� that, or had the release been included in part of the sale so to me that says there were other people even prior to you coming to us who were interested in that property had the releases been allowed at the time of sale no I don't think you are the first person that would have made an offer had we allowed that to take place and I 15 DAVID BROWN: But I didn't know that you would allow it, I corning to you with an offer an though that person that cam the City could have made an offer. MAYOR TOM WAGONER: I understand that. Councilwoman Baili COUNCILWOMAN BAILIEs Well I hate to be a dead horse and in that's what I am but I think basically we said he is the f person. Grant it, we could hold onto this forever, I gues you did come and and did make an offer and everyone else h that same opportunity to do that very thing. I guess I re have a problem. We do have certain lands for sale within City. It seems to me it should be like other land sales. to a real estate agent if you're interested in a certain p You come in and you say you want it and should have that o to purchase and maybe that's just MAYOR TOM WAGONER: Except our ordinances don't allow that COUNCIL14AN ACKERL.Ys I've suggested that in the past CITY MANAGER BRIGHTONs I take from Administration's stand we don't want to hold on to the land. Our only caution is we don't do something that is going to subject us to a substantial lawsuit in the courts on the basis that we did thing for one person and something else for somebody also not treat them all the same. I think that's our real cone MAYOR TOM WAGONERS I think the poosibility is this that M Brown is willing to make a proposal that includes all the remainder of Section 36 but west of the highway. I don't know whether you're going to have any competition on that in the first place or not it probably is very likely that you're still going to get that for the appraised value and the value could be less or it could be higher, I don't know but that to me seems like the cleanest way to do it. Then there's no question in my mind as to whether we've made the one last stride as far as our responsibility to get the beat price available. Everybody'a had another shot at it. The confusion's gone out of it, I hope and we proceed with the sale and there wouldn't even be any negotiations, you'd have the right to bid the minimum appraised value whatever it wan and that would be the contract upon the terms that the City advertises it which could have the release clause in them on the new bid process. That would really clean a lot of things up. i LEGAL ASSISTANT CALLAHANs Mr. Brown I just want to be sure that you realize the concerns here only have to do with procedures and disposal of lands that belong to the citizens as opposed to just j a private transaction. There are different requirements that - pertain to those two different land onle transa,ctiono and because of the fact that there are other people who may have been 16 -44 �1j`yii�r�i`�rarCti'rsitsa+�=. - �=..o.,:.--..-�4......_.._ ---'--�.�. 'sarc�w - ' -- - -- i�r� - "`-_�-•..+}+r�.s?trys�- "'— - - - �:ak—'Sr i interested under the conditions that you're talking about it's owing to have to be treated as a nc4 land sale accurdifiq to the Council. MAYOR TOM WAGONER: Well not yet, which some people feel, some don't. Jumping ahead of the horse I guess. Is there a consensus? Is there a concurrence then that that's the way we proceed or not? I think it's the cleanest way and I think it cleans up a lot of things for tor. Brown too that in the future that could entangle you legally. So if that's the wish of the Council, we'll so direct Administration. You can meet with Mr. Brown 8 o'clock tomorrow morning. Is there anything further then? DAVID BROWN: Just for clarification then you are going to go out for an appraisal which will take approx. two weeks and then you will have to advertise it for six weeks? MAYOR TOM WAGONERS Yeah. And this depends LAND MANAGER JEFF LABAHN: And you will be notified directly of that because you are the initiator of the sale: MAYOR TOM WAGONER: But Jeff you need to meet with him and I clarify. He's initiated the sale but if he initiates the way it's in here, he's going to get three separate, the possibility i of three separate bids perhaps unless that's clarified. That's what I'm saying. LAND MANAGER JEFF LABAHN: It was clarified in my own mind. MAYOR TOM WAGONER: But he has to make the request and I think that request should be made as clear as possible so everybody is understanding of what he's requesting. Anything further? DAVID BROWNS I guess I just don't understand it going to take two weeks for an appraisal and then you're talking six weeks for advertising and then you're going to have to evaluate the bids and I think that this last bid went out in October of 184 and I think it was passed by the City Council in May of '84 and just now are you actually concluding the sale and my only concern is that my offer at this time is genuine but that should it be delayed through all these conditions that I may not be able to make that same offer in the future and if the City may be left with this land for the next few ybars. MAYOR TOM WAGONER: I think we understand that and 1 think you're beginning to understand how cumbersome it is for the City to do busineca with a private enterprise but I think I can speak for the Council say within six weeks from the time that that thing's advertised we expect if you are successful bidder and otill want 17 R i ar I 4 us to proceed with the sale, that you will have the opportunity the day you have your bid opening to proceed with this transaction at that date. DAVID BROWNS Should you be getting any advertisement this, you wouldn't have to wait until the appraisal gets back to begin the advertisement then? LAND MANAGER JEFF LABAHNs Yes, otherwise if we're going to advertise for disposing of a piece of property it's sort of like saying we have something to sell but we don't know what we're asking. COUNCILMAN WISE: There's some changes in specifications that have got to be made. There's more problems then just a deed of release. MAYOR TOM WAGONERS Anything else? I would advise you to get with Jeff and set up a time tomorrow you can meet with him. END OF VERBATIM. PERSONS PRESENT NOT SCHEDULED TO BE HEARD DAVID BROWNS I have one more request that the City Council postpone the advertisement of those tracts until after the next Council meeting and to allow me to revise my offer with the possibility of leaving in that there would be no partial releases. COUNCILMAN ACKERLYs It's still going to require an appraisal. MAYOR TOM WAGONERs We won't take any action before the next Council meeting anyway, just put you on as a discussion item right? Put him under Persons Present Scheduled to be Heard because it's going to take two weeks from now to get a proposal that's when our next Council meeting is so we can just correct Administration not to advertise until after that meeting sate. END OF VERBATIM f xxz fz e z" �, - " 4 W, — r 18