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Home My WebLink About1985-10-02 Council Minutes'• l A. s. C. D. AGENDA KENAI CITY COUNCIL - REGULAR MEETING OCTOBER 2, 1985, 7 00 PM PLEDGE OF ALLEGIANCE 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. PERSONS PRESENT SCHEDULED TO BE HEARD (Time Limit - 10 minutes per person) I. Bob Nath, Pizza Hut 2. Atty. Ted Carson, Joe Langston - Taxi ordinance 3. Carolyn Osborne - Capital Improvement Projects 4. Dean Otteson Lilac St. Paving 5, Ed Call - Fence, Cook Inlet View Drive, Lilac St. 6. Mr. or Mrs. Grimes - Paving Lilac, Cook Inlet View Dr. 7, Bobbie Wiggins - Kenai Coop Pre -School Moving to Ft. Kenay S. Dan Moore - Water A Sewer, Randy Lane 9. Duke Deering - Self -Help Program for Peninsula 10. Walt Church, Eddie Turner - Extension of Time, Bowling Alley PUBLIC HEARINGS 1. Ord. 6088-85 - Incress. Rev/Appns - State Grants, Library - $20,000 2. Ord. 1089-65 - Amending Zoning Map - Inlet View 3. Rea. 85-72 - Commending Kenai Vietnam Vote - Veto Memorial in Kenai (Reconsideration & Amendment) 4. Res. 85-86 - Repealing Res. 85-69 and Accepting State Grant for Road Improvements - $2 300 000 5. Res. 85-94 - Expressing Oissatiofaction with Kenai Borough Handling of Waste Materials (Tabled to Oct. 2) a. Res. 85-95 - Expressing Concern with Kenai Borough Handling of Waste Materials 6. Res. 85-96 - Urging State, Federal Govt. and Cook Inlet Region Inc. Not to Pursue Higher Royalty Gas Payments MINUTES 1. *Regular Meeting, Sept. 4, 1985 t ''1 �. CORRESPONDENCE 1. Alaska DEC - Disposal of Drilling Mud 2. *City/Borough of Juneau - Mayor not Seeking Fie -election f r� 3. The Alliance - Informational Letter - 4. Kenai Borough Assembly Pros. Dimmick - State Priority List F. OLD BUSINESS 1. Airport Terminal Lease Insurance G. NEW BUSINESS 1. Bills to be Paid, Bills to be Ratified 2. Requisitions Exceeding $1,000 3. *Ord. 1090-85 - Amending KMC - Allowing Clerk to Certify Assessment Rolls without Recording 4. Change Order #1 - Zubeck Inc. - Sprucewood Glenn S/D LID - $49300 -.- 5. Change Order #1 - Landmark Commercial Contractors - Library Addtn. - $39280 6. Change Order 02 - Zubeck Inc. - M.A.P. Project - ($55,319.60) 7. Change Order #2 - Construction Unlimited - E. Aliak, N. Highbush, S. Highbush, Bumblebee, Swires - $17,046.42 S. Lease - Alaska Rent-A-Car (Avis) 9. Discussion - Assessment District - Govt. Lots 45-46 10. 1935-86 - Capital Improvement Projects 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 ,i 9. Library Commission 1. PERSONS PRESENT NOT SCHEDULED TO BE HEARD a o (Time Limit - 5 minutes per person) ADJOURNMENT r., e. ' B KENAI CITY COUNCIL, REGULAR MEETING, MINUTES OCTOBER 2, 1985, 7s00 PM KENAI CITY HALL VICE MAYOR RAY MEASLES PRESIDING PLEDGE OF ALLEGIANCE A. RAIL CALL Presents Chris Monfor, John Wise, Tom Ackerly, Sally Bailie, Jess Hall, Ray Measles Absents Tom Wagoner (excused) A-1 Agenda Approval a. Vice Mayor Measles asked that item B-9 be deleted. b. Vice Mayor Measles asked that item C-5b (Res. 85-94), part of Public Works Director Kornelis' memo distributed this date, be added. c. Vice Mayor Measles asked that Application for Games of Chance & Skill (Hockey Ason.), distributed this date, be added as item G-11 as a Consent Agenda item. d. Vice Mayor Measles asked that Change Order 03 (Airport Apron Project), distributed in Public Works Director Kornelis' memo, be added as item G-12. e. Vice Mayor Measles asked that Marathon Rd. Change Order, distributed in Public Works Director Kornelis' memo, be added as item G-13. Council approved the agenda as amended. A-2 Consent Agenda MOTIONS Councilman Wise moved, seconded by Councilwoman Bailie., to approve the Consent Agenda as amended. Motion passed by unanimous consent. B. PERSONS PRESENT SCHEDULED TO BE HEARD B-1 Bob Nath, Pizza Hut Bob Nath, 116 N. Kobuck, Soldotna. He introduced Mr. Karani and Mr. Voss, representatives of Pizza Hut. He has contacted all the owners of the property he selected, none wished to sell. The City has no property available in that area. He is proposing a one acre zone change. Mr. Lacy, DOT, said if they could get 200 ft. from the intersection they would look with favor on highway access. This is the only space available in the area. They will have local hire. He is requesting a one acre zone change to allow purchase and to build the business. Mr. Karani, franchise dealer for Pizza Hut. Pizza Hut is the largest in the country and the world. There are 500 in the U.S, 5 in Alaska. Mr. Nath stated this has not gone to P&Z. Council referred the item to P&Z. B-2 Atty. Ted Carson, Joe Langston - Taxi Ordinance Ted Carson, 1420 Chinook, Kenai. He appeared earlier before Council regarding the Taxi Ord., requesting a work session. None has been arranged. The effective date of the ordinance was delayed to Oct. 15. The next Council meeting is Oct. 16. He asked for 1) a delayed effective date till after Oct. 16, and 2) a work session. This is to discuss problems, including finances. Mrs. Langston was here, Mr. Langston was out of town. Atty. Rogers said the ordinance KENAI CITY COUNCIL OCTOBER 2, 1985 Page 2 passed June 19, the effective date was Aug. 15. At the Aug. 7 meeting Atty. Carson asked for reconsideration of the ordinance. The effective date was changed to Oct. 2. Councilman Wise noted Atty. Carson was not in attendance when Atty. Rogers made his comments, and suggested both sides should have been in attendance to air the issue. Atty. Rogers explained the presentation was passed to Council by memo. No action was taken by Council. 9-3 Carolyn Osborne - Capital Improvement Projects Carolyn Osborne, Cook Inlet View Or., Kenai. The road as listed on the Capital Improvements list should be left on the list. Assessment districts are necessary, but Cook Inlet View Dr. was put on the list without assessments. It was 04 on the list in 1984. Engineers have gone over this. The streets have been there for 25 years. There are 77 residents on 2 streets. They counted 170 people there, plus more that were not at home. Spruce may be hard to do without assessments, that can wait. But Cook Inlet View Dr. and Lilac are deplorable. The last 3 times the grader went down, it was raining hard and it did not last. There is a lot of town and tourist traffic there for view, parking, to see the set net sites, Mt. Redoubt, the islands, photography, drift boats, beluga whales. Part of Section 36 was set aside for parks, if the City put this with Section 35, with a cul de sac at the and of the road, it could be a park. If this is taken off the Capital Improvement List, it will stay as unpaved streets. 9-4 Dean Otteson - Lilac St. Paving Dean Otteeon, 1500 Chinook, Kenai. He owns a duplex on Lilac. He supports paving without 50% assessment. He has owned the property for 6 years, has rented it for 5 years. It is the stepchild street of the City. It should be upgraded. It went from 021 to 04 on the Capital Improvement List. If it was upgraded, the homes would be fixed up and, it would be good for the City. B-5 Ed Call - fence, Cook Inlet View Dr., Lilac Mr. Call did not wish to discuss the fence. They have been trying for years to get Lilac upgraded. It keeps moving down the list. The roads that have been paved refer to how many people they serve. Lilac serves 78 families. B-6 Mr. or Mrs. Grimes - Paving Lilac, Cook Inlet View Dr. Ken Grimes, 241 Katmai, Soldotna. He is not a City voter, but is a property owner on Cook Inlet View Dr. and a tax payer. The number of families and number of people should be considered. The City should also consider maintenance costs. The City is throwing good money after bad. Paving would improve the area, cut down the dust, people could keep up their yards. The cost is not that big. It would serve many people per dollar. Councilman Wise noted the allocation of the $2.3 Million State funds has not been decided yet. Councilwoman Monfor urged the residents to come to the work sessions to discuss this item. B-7 Bobbie Wiggins - Kenai Coop Pro -School 14oving to Ft. Kenay Bobbie Wiggins, 528 Ash, Kenai. She is on the Board of Directors of the Preschool. She noted there were 16 members of the Coop attending this meeting. 80% of the members are KENAI CITY COUNCIL OCTOBER 21 1985 Page 3 Kenai residents. There has been a substantial increeae in rent at the current location. Their sole income is tuition. The Coop would benefit from tho move, but so would the City. It would bring in rent to an empty building, it would be cleaned 4 times a year. They will work it out if others wish to use the facilities. Councilwoman Monfor said her biggest concern was the outbuildings in back. Mrs. Wiggins replied, they would run rope in the area to keep them away. They are only outside 15 min. a day. Councilmen Wise asked about the insurance. There should be a hold -harmless agreement. Vice Mayor Measles noted this could be with the negotiations. MOTIONS Councilman Wise moved, seconded by Councilwoman Monfor, for approval (of the Coop Pre-school move) subject to Administration resolving terms of the lease. Motion passed by unanimous consent. 8-8 Don Moore - Water & Sewer, Randy Lane Becky Moore, 1509 Rand) Lane, Kenai. Her husband was out of town. Randy Lane is at the south end of Highbush. The south end is receiving water & sewer, they would like it brought to Randy Lane. The road was built in 1983 with water & sewer considered. They had a right-of-way. It will now be 150 ft. away when it stops. The contractor said he would be willing to bring it down with Council approval. Councilwoman Monfor asked if there was money to do it and how much would it cost? Councilman Ackerly asked why it was not done in the first place. Public Works Director Kornelis explained, there is only 1/2 dedication, about 30 ft. It was not included with the Highbush work because it was not full width dedicated right of way. Mrs. Moore asked, why wasn't the full 60 ft. taken when she bought the home? City Manager Brighton explained, the City did not build the road, it was built by a private developer. In order for the City to accept and maintain the street, it will have to be built to specs. Mr. Kornelis noted Mr. Moore had tried to do some up -grading, but it still did not meet specs. In order for them to qualify, they would have to donate an additional 30 ft. right of way and it would have to be engineered. It could not be done this year. But there is a line being stubbed out for a future road if it is dedicated. B-10 Walt Church, Eddie Turner - Extension of Time, Bowling Alley John Wood, Attorney for Walt Church. When Mr. Church asked to be put on the agenda, it was to request a time extension. A foreclosure has been started. He has receipt of payment 3 days prior to the letter of 20 day notice being made.There is a $19,000 lien on the property, some of it is due. But several local merchants are involved. If Mr. Church pays the contractor, the funds will go to the IRS, others will not get paid. They are not valid liens. M:. Church has to protect his position on the premises. They have demanded Magnum Const. pay the other merchants. If Council requires payment, Magnum will be paid but the others will not. Regarding the facade, it is agreed Mr. Church & Mr. Paxton did not live up to their agreement, it was an oversight on their part. They are not trying to get away from this. They are asking for an extension to Aug. 1986. The Stop Order took many funds. The bond will remain in full force. The building will be there for many years, it will be a better quality building. 9 leaks appeared during the last rain storm. There will be disputes on this. They are asking to 1) not be forced to remove the Magnum lien, and 2) extend the time for the facade. Atty. Rogers noted F 'IJ KENAI CITY COUNCIL OCTOBER 2, 1985 Page 4 1) the payments are not current, some are in excess of 30 days. 2) Regarding the $19,000 lien, there in additional. It is in excess of $100,000 with punitive damages. 3) His concern is not other than the City. He intends to proceed in court unless directed otherwise. The amounts escrowed for the facade are for a specific purpose. An extension was granted to take them into the construction season. A second one was granted into Winter, now there is another request. Mr. Wood said they have 9 month's payments. If there is a delinquency it would be interest or carrying charges. He has only heard of one amendment. Atty. Rogers said the lease payments made would be a defense in court. Regarding the lease amendment, the building as built was not as represented, the amendment was to allow a steel structure. Councilwoman Bailie said when they asked for an extension to Dec. 31, Mr. Paxton said that would be more then enough time to finish. Councilwoman Monfor noted it has been more than a year now. Atty. Wood asked for public notice requesting this matter be referred to arbitration pursuant to the lease, that 30 days notice be granted pursuant to the lease, which has not been done, so that this matter may be resolved in a fashion anticipated by the lease rather than through the mechanism being used here. Atty. Rogers said he would not acquiesce to the accusation of his lack of notice. Eddie Turner, Peninsula Savings & Loan. According to the lease (there is an SBA loan he is trying to clusef, they would have 30 days notice by certified mail, as security interest. They have not received anything. The only time he knows anything is when he reads it in the paper. If there is a default he should be able to execute a lease and take it over. If there is going to be any default notice, he should be aware of it. The City is aware of security interest. How can he protect their investment if they are not notified? C. PUBLIC HEARINGS C-1 Ord. 1088-85 - Incress. Rev/Appns - State Grants, Library - $20,000 MOTION: Councilwoman Monfor moved, seconded by Councilman Ackerly, to adopt the ordinance. There was no public comment. Notion passed unanimously by roll call vote. C-2 Ord. 1089-85 - Amending Zoning Map - Inlet View MOTIONS Councilman Ackerly moved, seconded by Councilwoman Monfor, to adopt the ordinance. There was no public comment. Councilman Hall requested abstaining, he will derive a benefit from the o,:tion. Motion passed unanimously by roll call vote, with Councilman Hall abstaining. C -3 Res. 85•-72 - Commending Kenai Vietnam Vets - Vats Memorial in Kenai (Reconsideration & Amendment) ■ �u«./.-. ter.:�,;,-• KENAI CITY COUNCIL OCTOBER 29 1985 Page 5 NOTION, Reconsiderations Councilman Wise moved, seconded by Councilman Ackerly, for reconsideration of Res. 85-72. Notion passed by unanimous consent. MOTION, Amendments Councilman Wise moved, seconded by Councilwoman Bailie, to adopt amended Roe. 85-72 as submitted. There was no public comment. Notion passed unanimously by roll call vote. C-4 Res. 85-86 - Repealing Res. 85-69 and Accepting State Grant for Road Improvements - $2,3O0,OOO MOTIONS Councilman Ackerly moved, seconded by Councilman Wise, to adopt the resolution. There was no public comment. Motion passed by unanimous consent. C-5 Res. 85-94 - Expressing Dissatisfaction with Kenai Borough Dandling of Waste Materials (Tabled to Oct. 2) a. Res. 85-95 - Expressing Concern with Kenai Borough Handling of Waste Materials C-5 - MOTIONs Councilwoman Bailie moved, seconded by Councilwoman Monfor, to adopt Res. 85-94. MOTION, Withdraws Councilwoman Bailie moved, with consent of second, to withdraw her motion. C5e - MOTIONs Councilwoman Bailie moved, seconded by Councilwoman Monfor, to adopt Res. 85-95. There was no public comment. C-5b - Public Works Director Kornelis explained, Borough Solid Waste Engineer Bombard was at the meeting (per memo distributed this date). He called the City this date and said he would be tightening regulations. There will have to be 48 hours notice before dumping in the landfill. The City has to put lime on, it is $35O per month. We do not have a proper dump site. Vice Mayor Measles asked if the 12 Ph requirement is in writing. Answer, no. He added, 150 lbs. per day is dumped. Vice Mayor Measles suggested the City inquire into that. Federal law states 12 and over is hazardous material. Administration should check with DEC and EPA. a y I KENAI CITY COUNCIL OCTOBER 2, 1985 Page 6 VOTE (Failed)s Yess Monfor, Hall, Measles Nos Wise, Ackerly, Bailie Tie vote fails. C-5a - MOTION, Reconsiderations Councilman Wise moved, seconded by Councilwoman Bailie, for reconsideration of Res. 85-95. Motion passed unanimously by roll call vote. VOTE, Res. 85-95 (Failed)% --- Yes$ Measles Nos Monfor, Wise, Ackerly, Bailie, Hall 0 C-5$ MOTION, Remove from Tables Councilman Wise moved, seconded by Councilwoman Bailie, to remove Res. 85-94 from the table. Motion passed unanimously by roll call vote. MOTIONS Councilman Wise moved, seconded by Councilwoman Monfor, to adopt Res. 65-94. There was no public comment. Councilwoman Bailie asked if the Borough Administration was aware of the difficulties the City has at the landfill. City Manager Brighton replied, he thought the Assembly was aware. He felt the Borough Administration were being negative to the landfill and septic waste with concensus of the Assembly. The City is the only one dumping waste in the landfill. 2-3 years ago the City asked to close the landfill when the Borough comes up for renewal. Councilman Wise said it should be clearly understood the City did not ooject to 5 yr, renewal, just that we would oppose renewal and nave them adequate lead time to get another facility. They have 4 yre, notice. VOTE (Peseed)s Yess Monfor, Wise, Ackerly, Bailie Nos Hall, Measles C-6 Res. 85-96 - Urging State, Federal Govt. and Cook Inlet Region Inc. Not to Pursue Higher Royalty Gas Payments Councilman Wise asked that this be passed by. 1) There are negotiations going on over the back payment issue that we should not get into. 2) This only affects Kenai gas fields. Councilwoman Bailie said if negotiations are going on and are successful, this would be moot. Kenai needs to take a stand. If anything should happen and (Unicol) closes their doors, it would have a tremendous impact on the community. A resolution itss been passed by the Borough. MOTIONS Councilwoman Bailie moved, seconded by Councilman Ackerly, to adopt the resolution. Councilwoman Monfor said she understood the negotiations may be settled this week. If we pass thi3, we will say to (Unicol) that they will pay, not put in escrow. i i 1 I I - .e KENAI CITY COUNCIL OCTOBER 2, 1985 Page 7 MOTION, Tables Councilman Wise moved, seconded by Councilmen Hall, to table the resolution. Councilwoman Monfor asked to abstain, her husband is Vice Pres. of Cook Inlet Regional Assn. VOTE, Table (Passed)s Yess Wise, Hall, Measles Not Ackerly, Bailie Councilwoman Monfor abstained. D. MINUTES D-1 Regular Meeting, Sept. 18, 1985 Approved by Consent Agenda. E. CORRESPONDENCE E-1 Alaska DEC - Disposal of Drilliny Mud Council took no action. E-2 City/Borough of Juneau - Mayor not Seeking Re-election Approved by Consent Agenda, E-3 The Alliance - Informational Letter Council took no action. E-4 KPB Assembly Pres. Dimmick - State Priority List Council took no action. F. OLD BUSINESS f-1 Airport Terminal Lease Insurance Atty. Rogers reported he sent copies of this memo to airlines having leases. PUBLIC COMMENTS a. Dave Baumeister, President ERA. Fie attended the Aug. 7 Council meeting regarding the lease for terminal space that requires they pay for harm caused through fault not their own. They thought this had boon wiped out. ERA is willing to take responsibility for their owr: mistakes, but not for mistakes of others. Insurance carriers are getting reluctant to cover this. In the Anchorage terminal lease, the Attorney General's office has a $2 Million lawsuit Against the airport for a rape in the parking lot. When an airport grader operator ran into an Alaska Airlines 727, Alaska Air was to take full responsibility. This poses substantial liability to the lessee. ERA asks that each party share their own risk. It can be most cost-effective, each party would control their own losses. Examples ERA flew to Kenai and landed in Kenai. SeaAir is not a leasee, flew to Kenai and landed in Kenai. If snow removal equipment hit both airplanes, under this agreement ERA would pay for cost of repair. SeaAir, se a casual, could sue and win against the City. b. Rick Beldwin,Atty., representing SouthCentral Air. He introduced Vern Lofsted, president of SouthCentral. This is a serious matter as far as the carriers are �FJ KENAI CITY COUNCIL OCTOBER 2, 1965 -- Page concerned, The theory is, if premiums go up, they can { charge more. It is not that simple. Any business has claims history and ice interested in minimizing, they do not want to assume new rinks. That has not been addressed. Also, this is not fair. The lease is drafted 100: in favor of the City. From the airlines standpoint, it is not fair for the City to ask people, as a price for utilizing space, to ensure for anything the City or a 3rd party would do. Government must deal ' o with the citizens in good faith. By virtue of taking ` paid out funds, people must be allowed to use the airport in reasonable terms. He advised his client not j to sign till all remedies have been exhausted. They I try to anticipate areas where there may be expenses or ! - claims. But they have no claim over what the City might � do, To ask lessees to be responsible is unconcionable. 1 _ Atty. Rogers replied, this is Council policy. He is to protect the City. The difference between Anchorage and Kenai is, we are not in the same predicament with bond - rating. Councilman Ackerly asked, if we increase insurance coverage how much will it cost the City? Vice Mayor Meaoles said there would be increased liability. Atty. Rogers added, defense costs and more litigation. Insurance defense costs are substantial. i Finance director Brown replied, it is $32,000 for $25 } 9 Million coverage. If we went to $50 Million, it, would r be 1/2 again. But we would have to defend claims. Atty, Rogers noted there is also concern over inability to obtain coverage. Councilman Ackerly noted in other states they limit the risk claim. W�• i I ' Council took no action. ' G. NEW BUSINESS r G-1 Bills to be Paid, Bills to be Ratified n, MOTIONs Councilman Wise moved, seconded by Councilman Hall, to the bills approve as submitted. } Motion passed by unanimous consent. i 1 ' } G-2 Requisitions Exceeding $1,000 MOTION: - - -=- j Councilman Wise moved, seconded by Councilwomen Monfor, to approve the requisitions. Motion passed by unanimous consent. G-3 Ord. 1090-85 - Amending KMC - Allowing Clerk to Certify 1 Assessment Rolls Without Recording n. Approved by Consent Agenda. f,. G-4 Change Order #1 - Zubock Inc. - Sprucewood Glenn S/D LIO - $4,300 MOTIONS ^' Councilwoman Sailie moved, seconded by Councilwoman Monfor, to approve the change order. i Councilman Wise noted the bid was let A months ago. Why did we not get at the time of oward or shortly thereafter? j - '� Public Worku Director Kornelin explained, the lot item, the KENAI CITY COUNCIL OCTOBER 2, 1985 Page 9 City did not know about it till the work was done. The contractor bid at the some price for rondo and parking lots but feels the parking lot was more detailed and ohould be additional. Public Works in not convinced that is the proper way to handle. The contractor should have looked at it and realized the additional cost. The 2nd item was on the plans but was not on the bid schedule. The contractor did the work and should be paid for it. It was not brought to the attention of Public Works till recently. Public Works was made aware of the situation during construction but the change order was not brought in. Councilman Ackerly noted the initial date was Aug. 15, it was signed Sept. 19. Mr. Kornelis replied, it was received in Sept. Councilman Hall noted the cost will be added to the LID, the property owners will pay for it. Mr. Kornelio explained, he does not agree with the 1st item. They have a preconstruction meeting and are told if there is a change order it has to be approved by Council. If there in not enough time, at least Administration must Approve it. They did not come to the City with the let item, but did with the 2nd item. PUBLIC COMMENTS Sam McLane, representing McLane & Assoc. He designed and had the inspection contract. Thin is located out Tern and adjacent to Arby's. The parking lots were the last thing done on the project. They did not want to see cheap work. They agreed with the contractor that the work required was not as clear as it should be and should have boon a separoto bid for the parking lots. The sewer clean -outs are a standard item. They anticipated more items for the change order and did not run this one. They did not feel it was a major item. MOTION, Amendments Councilwoman Bailie moved to amend the motion by deleting the portion of #1 of the change order and reducing the amount by $20800, Motion died for lack of a aocond. VOTE (Passed)s Yeas Monfor, Wise, Ackerly, Hall, Measles Nos Bailie G-S Change Order 01 - Landmark Commercial Contractors - Library Addtn. - $3,280 MOTIONS Councilwoman Monfor moved, accondod by Councilman Wice, to approve the change order. Public Works Director Kornelio explained, thin was not part of the existing contract but it is in brad shape. He asked for a construction estimate, this is juot the worst part. It may be a little high, but not too for off. The 2nd item, curbs 6 gutters wore to bo inotallod, but now Choy want to remove the asphalt. He suggested doloting lit and having the City crews do thin. Item p1 hao not been done. The root of the parking lot in straight aopholt. MOTION, Amendments Councilman Ackerly moved, necosided by Councilman Wise, to amend the change ardor, dolotinq #29 with tho undoratanding City crown will tako care of the matter. x� 4 .� 0 KENAI CITY COUNCIL OCTOBER 29 1985 Wage 10 VOTE, Amendments Motion passed by unanimous consent. Vice Mayor Measles asked , if the entire parking lot is not in good shape, will we have to do more next year and eventually replace the whole lot? Mr. Kornelis replied, he did not think so. VOTE, Main Motion as Amendeds Notion passed by unanimous consent. G-6 Change Order #2 - Zubeck Inc. - N.A.P. Project - ( $55, 319.60 ) MOTIONs Councilwoman Monfor moved, seconded by Councilman Ackerly, to approve the change order. Public Works Director Kornelis explained, when they awarded the project, the lift station was required at the and of Candlelight ($50,000 cost). Deleting the lift station and lines would be a credit. This is sit LID. Ray Rogers is a City employee, he asked Council to add his street at the end of Candlelight to the M.A.P. project. At the bid opening we discovered it would be cheaper to put in a septic lift station and absorption bed. Notion passed by unanimous consent. G-7 Change Order #2 - Construction Unlimited - E. Aliak, N. Highbuoh, S. Highbush, Bumblebee, Swires - $17#046.42 MOTIONs Councilman Ackerly moved, seconded by Councilman Hall, to approve the change order. Notion passed by unanimous consent. G-B Lease - Alaska Rent-A-Car (Avis) Atty. Rogers noted they were informed the City could not maintain confidentiality, as requested. Hertz sent the City a 10-K form, Council accepted. Avis sent a balance sheet. MOTIONS Councilman Ackerly moved, seconded by Councilwoman Bailie, to approve the lease to Alaska Rent-A-Car, aka Avis. Notion passed unanimously by roll call vote. G-9 Discussion - Assessment District - Govt. Lots 45-46 MOTIONS Councilman Ackerly moved, seconded by Councilwoman 8nilie, to approve the assessment petition on Govt. Lots 45 6 46. Councilman Ac►cerly said Administration has recommended rejecting because it is based on poor financial planning. Councilman Nall nuggeated they look at 100% LID instead of 20%, Finance Director Brown said he would correspond with the people regarding 100% LID. Motion failed unanimously by roll call vote. b � A�. I x• i �i KENAI CITY COUNCIL OCTOBER 2, 1985 Page 11 G-10 1985-86 - Capital Improvement Projects Council agreed to a work session for discussion of this item for Oct. 29, 700 PM. G-11 Games of Chance do Skill - Peninsula Hockey Aeon. Approved by Consent Agenda. G-12 Change Order 03 - Kodiak Contractors - Main Apron Ext. 6 Willos St. Ext. - $99780.63 Public Works Director Kornelis explained, they have a request to pave the area on each end of the stub taxiway to allow more city lots to be developed. They will gravel to grade. The paving machine has been moved out of the area, we will have to pay for asphalt in that area. $60 per ton was the original price. Public Works noted they had an option to increase 25%. $33 per ton is a good price. The City will have to pay to bring back the machine. They will stockpile the gravel and use it later. City Manager Brighton noted we have a substantial amount of money left in the project. Unless we can talk the State into using it on other projects, we will have to send it back. MOTIONS Councilman Ackerly moved, seconded by Councilwoman Bailie, to approve change order 03. Councilman Ackerly asked, what is the warranty period? Mr. Kornelis replied one year. Motion passed unanimously by roll call vote. G-13 Future Change Order, Marathon Rd. Public Works Director Kornelis explained, some of the work has been done, all will have to be done before the Oct. 16 meeting. Council agreed to go ahead. H. REPORTS H-1 City Manager City Manager Brighton spoke. s. On Oct. 11, the DOT will have a meeting in Seward to prioritize the Central Kenai Peninsula transportation projects. Public Works Director Kornelis and Mr. Brighton will attend. He urged Mayor Wagoner and Council to attend. It was stated the Borough voted unanimously that their 01 project is Sterling Highway from Sterling to Soldotna. The Governor was told this date by an assembly member and Soldotna manager that it was the Borough's #1 project. Kenai's 01 project is 4-lane between Kenai and Soldotna. This will finalize the projects list. b. Senior Citizen Coordinator Porter and Mr. Brighton went to Palmer to see the senior home and meet with the Pioneer Board. They have agreed to provide us with any services they can. A survey done by the State recommended Kenai have the next pioneer home, in conjunction with Kodiak. Kodiak wants their own. f mnffinc= KENAI CITY COUNCIL OCTOBER 29 1985 Page 12 co He referred to info item #22 regarding architect and engineer insurance. Lowering the liability amounts would not affect the premium. Info item #11 also notea Fairbanks North Star Bore reduced their liability limits lower than Kenai. d. Regarding insurance for airline commuters. It was suggested that by relieving the insurers it may have a bearing on the City's insurance. When we bought our insurance there was no consideration given to coverage of the lessees. Finance Director Brown noted that was true on architects, but he did not think that applied to the airport. He referred to Info item 022. Councilman Wise noted Walters & Olson have asked for an executive session to discuss this. so School Supt. Pomeroy spoke to Mr. Brighton this datep that the bonds have passed. He asked what the City intended to do about the Swires Rd. water & sewer. The Borough has said they do not have the power to build roads, water & sewer. He asked for a work session to discuss this. Councilman Ackerly suggested a 100% LID. Councilman Wise noted the Borough wants 65 acres in that area. If they would divest surplus lands by auction it might be worthwhile to do, but not on governrwent lands that are s;on-taxable and will not be developed. f. He asked for a work session to discuss a concerns The City is in a controversial situation with the Borough and unwilling to negotiate. It hoe continued to deteriorate. Also, with the FAA, relations continue to erode. We are beginning to govern from an adversarial position, not from mutual benefit. We have spent much time and money to induce business and jobs into the community. Now we are saying everybody that does not tow the line, we will punch them in the nose. As long as we pursue that it will not got better. In some instances there is no workable solution. But he feels we are approaching almost every situation in this manner. Examples the airline situation. There should be a workable solution to this. We are not the only game in town, Also, FAA. To got any appraisal it will cost us $1500 and 3 months to get. We have to got 3 appraisals, then go to a reviewer. We need to look for areas to mutually agree to move forward, not just to the benefit of the City. Councilwoman Bailie said regarding FAA and the Borough, you can only sit back and take it for so long and then you are being irresponsible for what you think is right. Regarding the airlines situation, she understands what they are saying but government has to be responsible to its o citizens. The attorney and insurance company recommended one course of action. She would hope something could be worked out. ERA and SouthCentral are an asset to the City. But to ignore professionals, she would not be doing her job as Councliperson. We did not come to the airlines with a bell bat. She would hope they would understand our situation as we understand theirs. She did not want to leave Kenai liable. Councilman Wise said, regarding FAA. Are the 2 appraisals on purchase or on every piece of land? Administrative Anst. Gerstlauer replied, one appraisal and one review on each lot, whether leased or sold. It has to be an appraisal and review. Councilman Wise said there needs to be further neyotiations. Regarding airport insurance, the issue is not only relevant to air carriers in the terminal now, but to all airport looses. Atty. Rogers replied he would have to review the leases. Councilman Wise added, the Borough has changed their financial support on legal fiduciary. They have not sent the sales tax money. They are doing this to other cities also. Councilman Ackerly noted l KF_NAI CITY COUNCIL OCTOBER 2, 1985 _- II Page 13 the FAA gets more aggressive as we get more aggressive. They were offended when Son. Murkowski got involved. We just have to live with this. It is the same with the Borough. They would have an incinerator in the City. If they dumped oil in the dump, what else have they done? Vice Mayor Measles noted 6 years ago we had no cooperation from FAA. We could not sell or lease land. Over the last S years there has been a change in their j attitude. Maybe we have become too aggressive recently and they are reverting back to their old j. habits. If the City is completely right, he has no problem. Councilwoman Monfor 4aid regarding the Borough. It is easy for us as Council, we are not working with them on a day to day basis. Administration acts on direction of Council. She suggested Mr. Brighton sit down with the Borough with a list of complaints and deal with them instead of butting heads. Vice Mayor Measles said regarding airport insurance. We need to look into it further. There is a middle ground that will not increase liability or premiums and will help airlines and other lessees. The big concern is their being held liable for :=- something that is not their concern. If they elect to cancel their leases they are no longer liable. They ri could sell tickets on their planes, taxi into the runway and have no liability. The City would have all t,1 , liability. H-2 City Attorney i Atty. Rogers spoke. �+ a. At this time there is a question as to the status without signed leases to the airport, do we have �= indemnification? We had with the leases that ran out, but do not have now. He will attempt to get the leases signed unless he has other direction. b. Info item "1, abatement of dangerous buildings. There is further information regarding installation agreement ' off Forest by Sears Elementary by Grant McLure. On installation agreement we take deed of trust till we .� accept roads. Some of these are going on. We will .c bring to Council if you desire. Info item #21 is similar. (. c, info item 028, replatting request, Aleyesks S/D. This will be at their expense. tie did not know the �= purpose. d. Info item #29. Prosser Const. ve City of Kenai. The City withheld $12,000 for retainage on let & 2nd " streets work. They sued, we won. They have offered L � $69000, we would pay. He has a counter claim of -_.-, $929000. He asked if Council wished him to proceed — 1 with denial of claims. f� Council agreed with his decision. H-3 Mayor J �l None H-4 City Clerk -� None H-S Finance Director ;I Finance Director Brown referred to the H-S memos in the packet, and asked that they be discussed at the work session. I/ q I _ - 1 J i KENAI CITY COUNCIL OCTOBER 2, 1985 Page 14 H-6 Planning & Zoning None H-7 Harbor Commission None H-8 Recreation Commission Councilman Ackerly reported, they discussed acquisition of the dust bowl and a recreation project by the sanitary land fill. Councilwoman Bailie Teported on the Beautification Committee, in conjunction with the Recreation Commission. 1) They are having trouble with attendance and would like 10 members so they would have enough for a quorum. 2) The triangle piece of land by the airport, with a proposed gazebo. They would like to locate utilities and take advantage of the top soil being moved in the City. There will be a 14 ft. build up in the middle. Public Works Director Kornelis said that is being done. There are major problems with the utilities. He will bring a report. Councilman Ackerly asked, if we expand and improve Airport Way, will that be investigated? Answer, yes. H-9 Library Library Commission Chairman Swerner reported Gov. Sheffield toured the Library this date. They have no leaks at this time. 11 I. PERSONS PRESENT NOT SCHEDULED TO BE HEARD a. Rick Baldwin, Attorney. Representing SouthCentral Air. Regarding the indemnity position in the lease. He has discussed this with ERA and SouthCentral. They intend to take a firm stand and not sign their leases. The reason is, after discussion with their brokers, there is a question if they can write the insurance. They may not be able to cover other liability. If they are evicted they will resist. They would hope it would not get to that. There still exists a middle ground where all are liable for their own mistakes. They would be happy to meet wit►i Council in work session. It is important that they all understand the information available to all parties. There is a letter around that is not available to his clients. Info item 022 from Walters do Olson, Insurance. He requested a copy of the letter. Atty. Rogers noted Finance Director Brown has given a copy to Atty. Baldwin. b. John Williams, Kenai. Regarding paving of Candlelight. He was told by Mayor Wagoner they would not get paving without splitting costs. Traffic will shift drastically in the future in that area and they do not feel they should pay 50%. They will not be 50% of the traffic.. Most will be the golf course. He is again asking for some other form of paying than 50%. c. Roy Silvernsil (?), 2901 Cook Inlet View Dr., Kenai.He supports paving of Cook Inlet View Dr.. It is sorely needed. The pot holes are there all the time. He thought he had a wide driveway in front of his apartment, he found out it is part of Illiamna. Drainage is atrocious. d. Ozzie Osborne, Kenai. He congratulated Ray Measles and Tom Ackerly on their election victory. Regarding the membership in the Beautification Committee, if they cannot make the meetings, they should be replaced. h � � i ,LEs-�*- 4aiLwr.r1+ r{yc�-.r-.c:J��- ��—__ —�— _ _,..._......_-_.. �..��._......�._ . _ r.,. _.....:.ii-:L:....:.z.Ji�9k�+Y7�cs�......�....�L1i11_�L_F""'•`� _""i` "'�=�a� „ KENAI CITY COUNCIL OCTOBER 2, 1985 Page 15 e. Councilwoman Bailie noted Info item 0109 Day Care Assistance program. Kenai is budgeted for $579000, that is upsetting. City Manager Brighton explained, this is not based on number of people but number of day care facilities. We have less than Soldotne or outside the City. They are trying to get it increased. f. Councilwoman Bailie asked about the Highbush project. A resident is concerned if the dirt will be cut down before freeze-up. Public Works Director Kornelis explained, the contractor has another contractor taking it out. It will be out by next week. Councilwoman Bailie asked if the water do sewer stub outs on Aliak will have to be moved. Mr. Kornelis replied, ho will locate and see: how deep they are. g. Councilman Wiae asked if Mr. Lowry has a building permit (on Spur Plaza) and what is it? Public Works Director Kornelis replied, he has a building permit but it does not say what it is. City Manager Brighton noted, it is 30,000 sq. ft., a landscape plan was approved. h. Councilman Wise noted the Chamber of Commerce guest this date was Paula Easley, Resource Development Council. Kenai is a member. They are trying to get a single economic development project. He did not remember being asked. There is no overall conversation with the central peninsula as to what our economic growth should be. What: did we submit? City Manager Brighton explained those requests are sent to the Borough. He did not know what the Borough had submitted. Councilman Wise noted the February meeting with Resource Development Council. Seward, Homer and Seldovie had programs, Kenai/Soldotna did not. AOJOURNMENTs Meeting adjourned at 1105 PM. Janet Whelan i City Clerk