Loading...
HomeMy WebLinkAbout1984-04-18 Council Minutesg i I' 7 I i i S i5 a I i AGENDA KENAI CITY COUNCIL - REGULAR MEETING APRIL 18, 1984 - 7:00 PM WORK SESSION: 6:30 PM 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 ►ember 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. S. PERSONS PRESENT SCHEDULED TO BE HEARD 1. Lem Putnam - Howard, Garner & Smith - Landscape Plan on Lease 2. Walter Them, Cooperative Service Ag Agent - Plant Test Site 3, Carmen Gintoli, Architect - Schematics of Police and Library Addition 4. Sam McLane, McLane Surveying - Status Report, Section 36 C. PUBLIC HEARINGS 1. Ordinance 923-84 - Increasing Rev/Appns - State Library Grant - $1,500 2. Ordinance 925-84 - Establishing Zoning Code 3. Resolution 84-36 - Transfer of Funds - Borough Senior Citizen Grant - $2,000 4. Resolution 84-37 - Transfer of Funds - Utility Increases, Airport - $4,500 5. Resolution 84-38 - Termination of Regency Pointe S/D Assessment Dist. 6. Resolution 84-39 - Transfer of Funds - Street Light Repair - $2,000 r M n , D. MINUTES 1. *Regular Meeting, April 4, 1984 2. *Special Meeting, April 11, 1984 E. CORRESPONDENCE F. OLD BUSINESS 1. Proposed Sale of KUSCO - Request for Modification, Reconsideration or Rescission 2. Section 36 - Subdivision and Street Names G. NEW BUSINESS 1. *Bills to be Paid, Bills to be Ratified 2. *Requisitions Exceeding $1,000 3. *Ordinance 926-84 - Increasing Rev/Appns - Library Donations - $2,500 4. *Ordinance 927-84 - Finding City -Owned Lands Not Needed for Public Use - Section 36 5. *Ordinance 928-84 - Funds for Find Arts Center Roof Repair 6. Discussion - Peninsula Home Health Care 7. Discussion - Union Oil Lease a. Mineral Rights b. Cannery Loop Ratification of Amendment to Unit Agreement 8. Discussion - Airport Bar Use 9. Discussion - Partee Lease 10. Contract Increase - Main Apron Extension Engineering - Float Plane Basin - S2,900 11. *Games of Chance do Skill - Twin Cities Womens Softball Association 12. *Application for Restaurant Designation Permit - Uptown Hotel 13. Community Center Committee Resolution for Building Community Center H. REPORTS 1. City Manager 2. City Attorney 3. Mayor 4. City Clerk 5. Finance Director 6. Planning & Zoning 7. Harbor Commission 8. Recreation Commission 9, Library Commission I. PERSONS PRESENT NOT SCHEDULED TO BE HEARD ADJOURNMENT KENAI CITY COUNCIL, REGULAR MEETING, MINUTES APRIL 18, 1984, 7S00 PM KENAI CITY AOMINISTRAIIUN BUILDING MAYOR TOM WAGONER PRESIDING PLEDGE Of ALLEGIANCE A. ROLL CALL Presents Hall, Monfor, Wise, Wagoner, Ackerly, Bailie Absents Measles (excused) A-1 Agenda Approval Mayor Wagoner asked that item G-8, Airport Bar Use, be deleted. Agenda was approved as amended. A-2 Consent Agenda MOTION$ Councilwoman Bailie moved, seconded by Councilman Ackerly, to approve the Consent Agenda as submitted. MOTION, Amendments Councilman Wise moved to delete items G-2 and G-4 from the Consent Agenda. 2nd and vote are not required for deletions from Consent Agenda. Motion passed unanimously by roll call vote. B. PERSONS PRESENT SCHEDULED TO BE HEARD 0-1 Lem Putnam - Howard, Garner & Smith - Landscape Plan on Lease Land Manager Labahn explained Mr. Putnam was not present. This item was postponed from the lest Council meeting. A landscape plan was submitted to P&Z and approved. Mr. Putnam had said the 3 commercial tracts would not be touched till development took place. Councilman Ackerly asked about onfnccement. Would there be an escrow account? Mr. Labahn said it could be part of the lease. Mayor Wagoner asked if it was discussed at P&Z. Mr. Labahn replied no, but Mr. Putnam had said he would comply with any reasonable requont. Councilman Wise noted all the City can control at this time is City leased lands. Councilman Ackerly suggested a work session with P&Z on this item. MOTION$ Councilman Ackerly moved, seconded by Councilwoman Bailie, for approval. of the lease landnespe plan as part of the lease. Motion passed unanimously by roll call vote. MOTION$ Councilman Wise moved, seconded by Councilwoman Monfort for approval of the lease. Motion paoued by unanimous conoent. B-2 Walter Them, Cooperative Service Ag Agent - Plant Tent. Site Mr. Them explained the Cooperative Service provides information to people regarding farm or home. lie asked the Council to consider a plant teat. Hite in coopot-,-.:rin with rd KENAI CITY COUNCIL APRIL 18, 1984 Page 2 the Div. of Agctculture. They were asking for 1-2 acres of City property, fenced, available water, open to the public,. The area they selected was Main St. Loop on 1st. They would start next month, the fence is to keep dogs and unauthorsied people out. They would plant in early June, they would need 7-10 years to establish. They would work with a variety of grass, trees, flowers in these environs to make available to the citizens of Kenai. There were 2 plots in that area that would be acceptable. He showed slides of the site in the Kodiak area. Recreation director McGillivray, in reply to a query, said it would not, interfere with the baseball diamonds. Airport Manager Swelley, in reply to a query, said the trees would be on the edge of the clear zone. Mr. Them added, the trees would be a maximum of 100 ft., it would be 8-10 years to grow that, tall. Mayor Wagoner suggested PU review and make a recommendation. Mr. Them noted it should increase the land value. Council agreed to the suggestion. 8-3 Carmen sintoli, Architect - Schematics of Police and Library Addition Mr. Gintoli introduced Bob Wolfe of his staff. The plane have been approved by P&Z and the Library Commission. The library. Additional parking wag added, they will need 6 additional spaces. It will be 5,164 sq. ft. It will need an arctic foyer, 107 eq. ft., as an added alternate. Re -roofing and re -insulating the building is also an added alternate. The roof would be rigid fiberglass, similar to the current roof. They will almost double the stack space, expand the typing and listening area. The estimate last year was $110 eq, ft., it is now $115. There will be a concrete walk in front with handicapped accees. Cost would be $604,710, pluo 10% contingency, for a total $6659071. The budget is $7009000+, so theca to $34,000 for furniture. The foyer is $139000, the roof is about $5,000 - total of $30,000 for added alternates. The police. There will be covered parking for Fire & Police. There will be a landscape plan, a new entry, reception area. There will be radio equipment, library, squad, *.raining, arms reloading rooms. Only one cell, the rest for storage. Police Chi-r Ross explained, the one cell io temporary holding cell. Ail will go to Wildwood. There is a safe place for evidence. There will be no interruption in work. Mr. Gintoli explained the costs are higher than the library because of plumbing and parking.Costs-$641,050, contingency-$61,000 for a total of $705,155. 10% architects fees. MOTIONS Councilman Wise moved, seconded by Councilwoman Sailte, to approve both projects as proposed. ' Motion passed by unanimous consent. 8-4 Sam McLane, McLane Surveying - Status Report, Section 36 Mr. McLane reviewed the progreos. There will be 114 acres .s for residential. The field survey is 75% complete, they need Council action ons r k a. Final subdivision name b. Street namo€s ( about. 11 ) c. Approvnl of st reef, easement +i and sel. back I r KENAI CITY COUNCIL APRIL 18, 1984 Page 3 MOTION$ Councilman Ackerly moved, seconded by Councilwoman Monfort to approve the 30 ft. street easement and 100 ft. setback from the bluff. Motion passed unanimously by roll call vote. A00t0 ITEMS B-5 Connie Keevil, Tree Removal Miss Keevil reviewed her letter submitted to Council this date regarding removal of trees during conbtruction. Council took no action. C. PUBLIC HEARINGS C-1 Ordinance 923-84 - Increasing Rev/Appns - State Library Grant - $1,500 MOTIONs Councilman Ackerly moved, seconded by Councilwoman Bailie, adopt the ordinance. There was no public comment. !lotion passed unanimously by roll call vote. C-2 Ordinance 925-84 - Establishing Zoning Code MOTIONS Councilman Ackerly moved, seconded by Councilwoman Monfort, to adopt the ordinance. There was no public comment. Land Manager Labahn explained, if Council approves on this date, it will be effective July 1. Borough P&Z will review April 23, if they approve it will be passed to the Borough Assembly. Councilman Wise asked if PRUD was adopted by the Borough. Mr. Labahn replied he did not know. MOTION, Amendments Councilman Wise moved to amend the motion to delete the 2 items not acted on by the Borough. Motion died for lack of a second. VOTE (Passed)$ Yeas lull, Monfort Wagoner, Ackerly, Bailie Nos Wise C-3 Resolution 84-36 - Transfer of Funds - Borough Senior Citizen Grant - $2,000 MOTION$ Councilman Ackerly moved, seconded by Councilwoman Monfort to adopt the resolution. Senior Citizen Coordinator Porter explained the buffer for the floor was because some of the floor work so done by volunteers at the Center. V 9 _ KENAI CITY COUNCIL APRIL 18, 1984 Page 4 Motion passed by unanimous consent. C-4 Resolution 84-37 - Transfer of funds - Utility Increases, Airport - $4,500 MOTIONS Councilman Ackerly moved, seconded by Councilwoman Bailie, to adopt the resolution. There was no public comment. Motion passed by unanimous consent. C-5 Resolution 84-38 - Termination of Regency Pointe S/0 Assessment District MOTIONS Councilman Ackerly moved, seconded by Councilwoman Bailie, to adopt the resolution. There was no public comment. Motion passed by unanimous consent. C-6 Resolution 84-39 - Transfer of funds - Street Light Repair - $2,000 MOTIONS Councilman Ackerly moved, seconded by Councilwoman Monfor, to adopt the resolution. There was no public comment. Motion passed by unanimous consent. D. MINUTES Minutes were approved under Consent Agenda. E. CORRESPONDENCE None F. OLD BUSINESS F-1 Proposed Sale of KUSCO - Request for Modification, Reconsideration or Rescission MOTIONS Councilwoman Bailie moved, seconded by Councilman Hall, to reconsider the votes on the motion relating to the sale of KUSCO to Enstar and on the amendment to give the City's consent to the sale. Mayor Wagoner explained there was a question on the validity of reconsideration. KMC 1.15.060-G relates to this question. The motion and amendment would be on the floor if reconsideration passes. He added, after the April 18 meeting he contacted some Administration staff and Atty. Rogers. He spoke to a representative of APUC, asking what the status of the City as intervener would be if the motion passed. APUC said the City could not be an intervener if they approved the sale. He did not think the City waa acting in a responsible manner unless they pursued this to the fullest extent possible. Councilman Wise said a motion to reconsider is beyond the scope of the Council, it. k a " r KENAI CITY COUNCIL APRIL 18, 1984 Page S has passed out of the City per Section 13 of the agreement. He asked the sections on company obligation to the City on sale of the company and City obligation regarding consent be part of the record. The notice was given Feb. 15, 1984, the 60 days has expired. Mayor Wagoner introduced Atty. Cussk, representing the City in the absence of Atty. Rogers. Atty. Cusak explained the 60 day limit applies only to exercising of the option. Regaroinq City consent, there is no time limit. Regarding the passing out of City control, that prov!sion is common in many legislative bodies. Once a resolution has passed out of one House or the Governor, they have no control. that is not the situation here. Councilman Ackerly asked if Enstar could continue to purchase with a neutral motion. Mayor Wagoner replied Enstar cannot finalize purchase till consent of APUC. Atty, Cussk added, the City can consent after approval (SICs by APUC) if they wish, Mayor Wagoner said Atty. Rogers will have to write APUC and request through petition the City be allowed as intervener. Enstar could start proceedings with APUC. Councilman Wise said a neutral motion is in violation of the contract. If we have reason to deny, we should state. A neutral motion is withholding unreasonably. Mayor Wagoner explained Atty. Rogers and Atty. Cussk have said it is within our rights. Councilman Wise said he had a note from Atty. Baldwin, (representing KUSCO and/or Enstar) Mayor Wagoner ruled Councilman Wise out of order. Councilman Wise appealed the ruling of the chair. VOTE, Support of Mayor's Ruling (Failed)s Yeas Wagoner, Ackerly, Bailie Nos Hall, Monfor, Wise Motion fails on a tie vote. Councilman Wise read the note from Atty. Baldwin, stating Enstar position is, it will not go forward without the unqualified support of the City. VOTE, Reconsideration (Passed): Yess Hall, Monfor, Wagoner, Ackerly, Bailie Nos Wise PUBLIC HEARINGS a. Ron Dolchok. He is against KUSCU selling to Enstar. He would like it to stay in the City. City Manager Brighton had said it is not iii the best interest of the City to stand in the way of private enterprise. We have not heard any more from For North Oil & Gas. By selling, we are standing in the way of private enterprise. b. Dick Barnes, Vice President, Enstar. He introduced Dale Teel, President, Enstar. Regarding the City status as intervener, Enstar would not object to the City appearing an intervener. It would he a surprise if APUC refused intervener stature to the City. They have bent over backwards in the past. If the City does not participate an intervener, Enstar would agree to provide any documents. 1_ast week the City consented to the transfer. Enotor is ready to qo forward with proceedings. Without convent, En»tar tins no transfer proposal to bring to APUC. the Frsnchioe requires consent or denial. HR requented the City let last. week's action stand no they can continue forward in e businoua-like manner. Councilman Wise read the letter i KENAI CITY COUNCIL APRIL 18, 1984 Page 6 { dated April 12, 1984, from Enstar to KUSCO. Enst.nr agrees to drop the waiver of option requitement and is prepared to file for transfer of KUSZ O's Certificate of Public Convenience and Necessity. Mr. Barnes explained, what would happen in 1987 was not a condition of closing the transaction. The letter amends the agreement regarding closing on Enstar's behalf. It was accepted by KUSCO. Councilman Ackerly confirmed, Enstar will no longer pursue purchase at this time if the City does not pass the motion of April 11 for Enstar to proceed. Mr. Barnes replied, they will not go before APUC without the deal and they don't feel they have a deal without consent. They offered 3 options, the proposal to APUC requires consent of the City. It does not diminish the City position with APUC. Mayor Wagoner noted the City consultant did as thorough a job as he could but did not have enough time. Regarding intervener status, that is sometimes an open process, but information is proprietary and does not have to be a public document; it may not be available to the City. Councilman Ackerly suggested maybe the City has better clout with the gas companies and could get a better contract. Mr. Barnes noted for the 16 years KUSCO has been operating, Enstar has charged less than KUSCO. Councilwoman Bailie noted Mr. Barnes had said he would write a letter stating if the City could prove they could give lower rates, Enstar would go for it. Did he write the letter? Mr. Barnes replied he had said he would do so if it was needed. Mayor Wagoner noted there is nothing in the contract addressing transfer of certification or Enstar going to APUC. APUC was not in existence when the contract wan written. APUC says there is a cloud over validity of the franchise. Mr. Barnes replied they are following KUSCO document format. It is important that: 1. The City follow the agreement already made 2. The City is forced to think abomt the real reason for denial. Mayor Wagoner noted the City would look foolish if they had additional information after the approval was given, and asked to have the sale changed. Mr. Barnes noted we need to get on with this, the construction season is upon us, Mr. Thomas is leaving and he is the keystone of the operation. Atty. Cusak asked Mr. Barnes if it was his opinion the agreement required the City to agree to transfer prior to transfer? Mr. Barnes replied, APUC was not in existence at the time of the agreement. If they did not exist, the City would still have to make a decision. Atty. Cusak added, in a reasonable time. The fact is, APUC is in existence, the sale is still contingent on APUC. Mr. Barnes said it can't take place without consent of the City. Atty. Cusak added, and APUC. It does not say it has to be before the APUC proceedings. If Enstar allows the City to intervene, is APUC bound by Enstar consent? Mr. Barnes replied, no. City Manager Brighton acid when the Council passed the first motion, they had 3 options. One option has passed. The result of tonight is (a) Enstar will buy or (b) KUSCO will be forced to perform. tie could see problems with forcing a company to provide service for 3 years when they have an opportunity to sell. Atty. Rick Baldwin. APUC does have procedures for keeping proprietary information away from competition and sometimes from litigants. Mr. Barnes reiterated he would provide the City with everything in his file. KENAI CITY COUNCIL APRIL 18, 1984 Page 7 c. Dale Teel, President, Enstar. Mr. Barnes has his full support. He reiterated, without consent of the City, they had no deal with KUSCO and they will not go to the APUC. d. Oscar Thomas, Vice President, KUSCO. He distributed copies of the letter dated April 12, 1984 from Enstar to KUSCO. The only problem in the City is the issue of disclosure when APUC starts procedures. From KUSCO the City will get a firm guarantee with full disclosure on all information provided from APUC. He introduced James Covington, President of KUSCO. e. James Covington, President, KUSCO. They have always operated with the full cooperation of the City. Relationships have been good for 17 years. In 1967 they spent $570,000 putting in the system, in 1968 they spent $1/2 Million, following a verbal commitment to Council. They spent $500,000 in a loop around Beaver Loop Rd., they could not get a reasonable return. They said they would not increase rates for 5 years, and followed this to the letter. Last week the City had a commitment to KUSCO, it is thoroughly spelled out in the franchise agreement. The City has no choice, they either purchase or allow KUSCO to sell. They have in writing a firmed -up commitment to Enstar and an agreed -on price. If they cannot go forward with this, they are damaged to quite a degree. For 17 years they have lived up to the spirit of the agreement, he finds it difficult to understand why the City is thinking of not living up to their end of the contract. Section 13 say, "without prior consent of Council." KUSCO has to have consent or they are not living up to the contract. "The City cannot withhold consent." If the City withdraws, there must be a reason. One reason may be that the City could get a better deal. He has been in contact with Harry Keegan, Pres. of Union Oil, Oil 6 Gas - Western Region. He had said there is no way KUSCO can come up with a contract that Enstar has. The best bet for KUSCO is to let them sell. The City will have a better rate. If the City withdraws consent, he cannot sell the company. Without consent, he is entailing severe financial difficulties. f. Rick Baldwin, KUSCO Atty. The only question is, does the City have a reason to withhold. tie can see a real problem if they withhold. The Code says if the ordinance does not relate, the City refers to Roberts Rules of Order. If you relinquish a known right, you cannot take it back. The statement was made if the City goes to APUC without consent, their credibility will be questioned if they find out new information. Enstar has given the City full information. Regardinq breach of contract and the City being entitled to a reasonable time. What is reasonable is what allows the contract to go through. Enstar is not bound by what APUC may say on the telephone. They make their own decision. They have the right to require KUSCO to perform or back off. What the City is faced with is, Mr. Covington said they have provided good service they have been denied the right to sell for $1.5 Million and a premium of $350,000. Enstar has said it would not challenge the agreement if this does not go through. He is not sure KUSCO can give the same guarantee. He would urge Council not to create a situation if they don't have to where their credibility is at stake, that would result in net benefit to the City. 1987 is still open, let this deal go through. The City still has the right to purchase the system, possibly for a lot. less. Mr. I KENAI CITY CObNCIL APRIL 18, 1904 Page 8 Covington will not have the option to buy in 1987. g. finance Director Brown. He would ask the Council to reaffirm the action of the last meeting. There is nothing to change his mind on the action of that time. h. Ruby Coyle, Kenai. She remembers Mr. Teel trying to get the City to give them gas. The City did not feel they should pay for the pipeline to Anchorage. The City is still sitting on it. She is sure the City can buy gas. The problem is the price of gas in 1987. She thought it would not be as much as the cost to the City of building the pipeline. Everybody will pay the same price. If the City made the wrong decision last week, they should reconsider and go to APUC. If we sell to Enstar, we will be losing jobs for people of KUSCO. i. John Williams, Kenai. Over the years he has seen the Council getting boxed in. This is the best. They had a chance to buy the company or exercise the right for private enterprise to buy. The time is not too early to see into the future. The City has a lot of gas. There was nothing to prevent the City from using this gas, buying KUSCO and going into the utility business. They would not have to worry about price of gas. They j have given away a fortune in gee in the last 17 years, they have never gctten the benefit. The City has 3 _ years to make the choice again, they have no choice now. The Council has let this slip by,by waiting too . long. J. Jim White, Far North Oil & Gas. Once the City has waived, it is done. Are they sure they have not waived 3 years from now? They need language to clear this up. What is the system being bought for? We had ;2.4 Million, now it is $1.5 Million. The City has a lot of options. As to being intimidated, that is irrelevant. KUSCO is bound by their contract. If Mr. Covington wants to sell the system to Enstar, he can. If Enstar agrees with option after 3 years, that is their business. Council cannot get involved with emotions. We have not seen the new rates. There is reason to `4 assume they will be higher, we will pay for them. Mr. Barnes did not say when the City would get the letter. Does the City know what it will say? What will the -- price of gas be in 1987 with Enstar supplying the gas? What will it be 3 weeks after Enstar purchases the system? We do not know. Indications are it will be higher. He takes exception if Council would be intimidated because of attitude taken on action Council did or did not take. Atty. Baldwin replied to Mr. White's statement regarding the waiver being irrelevant. That is correct. Regarding the cost figures, $,1.7 Million was cash figure. With the assumption of liability and purchase of a building, it would be $2.4 Million. This is based on Dec. 1983 balance sheet, the price would be on an April 1984 audit. Mr. White replied, the situation 3 years from now, it it goes to litigation, any pronouncement by ! Atty. Baldwin would be irrelevant. All that counts is what is documented. The City should get in writing t that they hold the right 3 years from now. Councilman Wise said the motion he made was to comply with the contract. It is unreasonable to weasel around the contract language in hopes we can do something. We have assurances from KUSCO and Enstar that they have no objection to intervener. Withho'ding e nsent is in vialation of contract.. This is a crisis runponao. We have a letter from Oscar ihomss dated Aug. 1982, the City did not do anything. KENAI CITY COUNCIL APRIL 18, 1984 Page 9 Jim White raised the issue Feb. 1982 of supplying gas to the City. Mr. Covington has attempted to find gas. The City has had an opportunity to place leverage on Union Oil, and has not. When the offer was made, we got in gear. We still do not know what it would cost the City to buy KUSCO. His i'igures are $240,000 per year to buy. It does not resolve what will we do in 1987. He is not interested in selling to Enstar or anybody. Because of the contract we cannot refuse. The amendment provides every possible safeguard. He has to support the motion to preclude legal action. A lateral amendment should be made to find additional supply of gas. Councilwoman Bailie noted we spent a good deal of money on the Arthur Young report. We had 3 options, they recommended to go ahead and pursue. The City could formally notify KUSCO, Enstar & APUC that City would intend to exercise franchise right in 1907 and intends to intervene in the franchise process. We asked KUSCO for 60 day extension so the City could negotiate for possible good gas prices. Once you give rights away, you cannot, get them back. She urged Council to allow the City to remain neutral. Councilman Hall noted at the April 11 meeting we were discussing 1987, not the 3 year interim period. Not who will run the system, but if we will have the right to buy the system in 1987. What is our position if we consent to purchase? Will they view that in 1987 that this was our position or are we allowing them to 9inish the contract and then decide whether to buy? Mayor wagoner said APUC referred him to State statutes. Their staff will not make a determination. VOTE, Amendment (Failed)s Yess Monfor, Wise, Ackerly Nos Hall, Wagoner, Bailie -- City Manager Brighton said our choices are limited to two - to consent to sell or not consent to sell. Council should concern themselves to the consequences. fie does not want to be threatened. Council has been told that if consent is not granted there will be no sale. It has also been alluded to that the seller will suffer substantial financial loss if o.. the sale is not completed. He does not like to see us in court. If there is a better way, he would recommend it. He '= '- has not changed ais position, it would be the beat interest of the community to grant consent to the sale. If Enstar runs this till 1987 we have a 3 year period to have _T discussions and make a determination, if they can acquire a reaeonable gas source. The City is in leas financial jeopardy if the consent than if they do not. Councilwoman _ Bailie noted E.Zstor and KUSCO have stood before Council in good faith, but they should realize Council position. They have suggested if we approve the sale we may not be allowed to be intervener. We have said we have no problem with °- Enstar taking KUSCO for 3 years, but we want to keep our options open in 1987. The City is also acting in good faith. They are asking Council to bow down because they are good guys, we are asking the some thing. If we give up the option to be interveners, no matter how good their intentions, once we give up we cannot got it back. Mayor Wagoner said if the motion passed, that does not say the City has to wait till Enstar and KUSCO go to APUC to give - consent. They can give consent at any future meeting. { ( Atty. Rogers would be able to petition APUC and have acceptance so intervener. KUSCO and Enstar can say they will give us information avid help ua, but they cannot guarantee. ■ 0 KENAI CITY COUNCIL APRIL 18, 1984 Page 10 MOTION, Amendments Councilman Hall moved, seconded by Councilman Ackerly, to give consent to the sale between KUSCO and Enstar, contingent on APUC granting intervener status to the City and the City retain franchise right to acquire the system in 1987. Atty. Baldwin said this was agreeable with Enstar and KUSCO. They will proceed to bring to APUC. VOTE, Amendments Motion passed unanimously by roll call vote. VOTE, Main Motion as Amendeds Motion passed unanimously by roll call vote. F-2 Section 36 - Subdivision and Street Names Councilwoman Monfor suggested Kenai Cliffs S/D or Kenai Bluff S/D. Also considered was Dena'ins Bluff, Dena'ins Acres S/D or Dena'ins Pt. She explained, Dena'.*na is the language of the Indian settlers. There is a dLotionary of the language. Also suggested was old ghost towns of the area. MOTIONt Councilman Wise moved, seconded by Councilwoman Bailie, to call Section 36 Dena'ine Pt. S/D. MOTION, Amendments Councilman Wise moved, seconded by Councilwoman Bailie, to amend the motion to Oena'ina Pt. Estates. VOTE, Amendments Notion passed by unanimous consent. VOTE, Main Motion as Amendeds Motion passed by unanimous consent. Council agreed to have Administration assign street names. G. NEW BUSINESS G-2 Requisitions Exceeding $1,000 Carman Gintoli payment - $2,000 - Schematics for Community Center Councilwoman Bailie explained, at the last Community Center Committee meeting, they decided they wanted a conglomeration of all the buildings they had seen. Mr. Gintoli offered to draw up schematics at no cost. They felt it was fair that they pay him. We are not obligii,.; the City or Mr. Gintoli at the time of bidding. Mayor Wagoner said it would be $2,125,000. There is no revenue projection. MOTIONt Councilman Wise moved, seconded by Councilwoman Failie, to approve the payment. Motion passed by unanimous consent. n KENAI CITY COUNCIL APRIL 18, 1984 Page 11 G-4 Ordinance 927-84 - Finding City -Owned Lands Not Needed for Public Use - Section 36 MOTION: Councilman Wise moved, seconded by Councilwoman Bailie, to introduce the ordinance. Councilman Wise said to sell City lands we have to provide notice. The intent is to say some lands are for sale and some are dedicated for public purpose. He asked that research be done. City Manager Brighton replied that after research you wili find it must be found not for public purpose. Motion passed by unanimous consent. G-6 Discussion - Peninsula Home Health Care Mayor Wagoner said he is opposed to social service or welfare programs paid by the City, this is neither. We could support this program. We could out aside $149000 and pay out on reimbursable basis. It would be for residents within the City. Councilwoman Bailie said she would liken to see them work with the hospital. Council agreed to discuss it at the April 24 budget session and to ask Mr. Mundell to attend. G-7 Discussion - Union Oil Lease a. Mineral Rights b. Cannery Loop Ratification of Amendment to Unit Agreement Kevin Tabler, District Land Man for Union Oil, spoke. ►le and Atty. Rogers asked this be on the agenda, the City owns some minerals they may not be aware of. There were 3 parcels of 1.13 acres, the other is less than an acre. He cannot make an offer, it would be the same as the existing 12.5%. Mayor Wagoner noted the Daubenspek property is 16:. Mr. Tabler explained, their contract is 12.5%. Daubenspek had additional considerations. Councilman Wise said if we continue the lease arrangement, the property should be included in the overall agreement. Mayor Wagoner said paragraph 11 provides for participation area 90 days prior to taking out of the ground. As it stands now, it would be on effective date of completion of well. Councilman Wise asked about the termination date on the agreement. Mr. Tablor replied, all loaoea in the unit are treated as one. It will be extended as long as there is a supply. It can be perpetuated by virtue of the product. Councilman Wise said he is reluctant to move till we know there is gas there. City Manager Brighton asked Mr. Tabler, what would be the consequences if we did riot sign the agreement. Mr. Tabler replied, they have an adequate number of people to amend, it does not make any difference. They are trying to make contact with all royalty interest owners, it may be moot but it shows good •intentions. G-9 Discussion - Partee Lease Mayor Wagoner confirmed that Mr. Lowry and Mr. Parteo had reviewed the item. He noted P6Z had 4 itemo to address. #4 was landscaping. The agreement said some trees would he left. Mr. Lowry explained the Uptown Motel is not in his control, but he did not landscape pending further development. There will be 4 trees on the local area. There will be 5 trees and shrubs by the door. They could not do it last year. Landscaping on the new site will bo done in a timely fashion thin year. Their act inns aro no KENAI CITY COUNCIL APRIL 18, 1984 Page 12 presented to P&Z and according to the lease. He displayod a sketch of the finished area. They anticipate developing 1560000 sq. ft., it will be larger than anticipated. Mayor Wagoner explained, discussion this date was to not use the building permit but occupancy permit to aoi;ure the landscaping was done. Mr.. Lowry said there was no problem with that. Councilman Aekerly said he thought the street right-of-way woo to be left alone. Mr. Lowry said there are three 38 ft. entrances to the project. The 20 ft. area outside the property, mast of the trees would fall inside of the way. They left those that would not be an eyesore. There are about 30 ft. of trees left in the Walker Lane Buffer, it is 130 ft. Mayor Wagoner said the occupancy permit could be waived on certain conditions of thy escrow. Councilman Aekerly asked Mr. Lowry if he and Mr. Partee were partners, Mr. Lowry replied yes. Councilwoman Batlie naid she was surprised they took trees by the townhouoos. Did they not consider a buffer there? Mr. Lowry replied there will be a fence to separate. There are provisiono in the Code to prevent foot traffic. There were no trees on that property. His plena are to bring in smaller trees, there are about 27 there now. He would have a professional landscape plen for review. Mayor Wagoner asked that Administration work with Mr. Lowry when the landscape plan comes in. He also asked that Administration work with P&Z to get control over lease and sale property and private ownership regarding landscaping. Councilwoman Monfor said she has had more calls regarding this item than she has had about the KUSCO sale. It shows the people care. We should check the current law to see how it could be made to work. Mr. Lowry noted the bike trail needed some work. Mayor Wagoner noted in the Anchorage airport area they keep buying non-native trees and they die. PUBLIC COMMENTS s. Connie Keevil. She has lived in California where judicious landscaping does not take place. She in not appeased by Mr. Lowry. In the oketch, a lot of the green is in the back of the picture, off the lot. It does not actually exist. You are looking at 15 trees in front that do not exist. She asked before if the lease had been violated, she has had no rdply. Mayor Wagoner said this woo not Mr. Lowry's loone, but Mr. Partee's. Land Manager Labahn said Mr. Partee in lease A, this lease was executed. His memo said there wao a violation of the lease. Me. Keev it said the trees - cannot be brought back. She does not want to sea thin happen again. It in up to Council to put teeth in P67. Mr. Lowry suggested the people that are so adamant present themselves to P&Z. Councilwoman Bailie said we have been concerned with KU5CO gas. We have an option in 1987 for gas, but not, with trees. We are trying to - - protect Mr. Lowry's investment. Mr. Lowry said he would present a detailed landscape plan to PdZ in 3 weeks. MOTIONS Councilman Aekerly moved, neconded by Councilwoman Monfort that Mr. Partoe and Mr. Lowry, dba Peninsula Development, 7 submit a complete landscapo plan by May 16, 1984 to includes a. Overall design b. Type of replacemetst shrubbery r.. Providing fur escrow account if noauon rumen too 1ato. l Motion passed unonimouoly by roll call vote. KENAI CITY COUNCIL APRIL 189 1984 Page 13 G-10 Contract Increase - Main Apron Extension Engineering - Float Plane Basin - $2,900 " Public Works Director Kornelis explained the report from the Airport Committee recommended survey and soils testa for the float plane basin. The main apron was Mr. Tauriainenle project, he asked him to add this. Councilman Wise asked if this would be the site ter. Tauriainen proposed or one developed by Wince, Corthell 6 Bryson? Mayor Wagoner replied the Wince, Corthell h Bryson drawings were submitted to Council. Councilman Wise asked, where are we on the adjacent land? City Manager Brighton replied, we have a price established, but will meet next week. It to about two times the appraisal price. Councilman Wise asked if we have moved on the wetlands permits. Mr. Kornelis replied no, a permit is not needed to dig, just deposit. Councilman Wise asked about a ramp wetlands deposit. Mayor Wagoner said we do not have the funds from the State I Swalle ex lained the wetlands Yet Airport Manager Y explained, permits were approved in 1979. It has been resubmitted. Councilman Wise asked if j we have the spoils site. Mayor Wagoner said since we have not started the project, there is none defined. Mr. Kornelis eaid they have been looking, if Council wishes they +� can stop by the office and review. MOTION$ COUAcilwoman Bailie moved, seconded by Councilman Aekerly, to approve the contract increase for apron extension for float plane basin. Motion passed unanimously by roll call vote. COUNCILWOMAN MONFOR LEFT AT THIS TIME (12s00 Midnight) G-13 Community Center Committee Resolution for Building Community Center Mayor Wagoner suggested P&Z look at this first and have the lands set aside. Councilwoman Bailie explained they are looking at 12 acres at the bluff to be zoned to enhance development of the Senior Center and Community Center. MOTIONS Councilman Ackerly moved, seconded by Councilwoman Bailie, that the item be sent to P&Z for recommendation and perusal. Motion passed by unanimous consent. Mayor Wagoner commended the Committee on their work. H. REPORTS H-1 City Manager City Manager Brighton noted the memo regarding special assessments on the Rutherford tract. MOTIONs r^_ f� Councilman Wagoner moved, seconded by Councilwoman Bailie, ` to accept the offer of $11,995.40 presently owed to the City by Rutherford, principle leas interest and penalties. Motion psoned by unanimous consent. H-2 Attorney None i 4 . 4 I i i I i HE KENAI CITY COUNCIL APRIL 18, 1984 Page 14 H-3 Mayor Mayor Wagoner noted the invitations he received for the visit of the President and Pope in Fairbanks. He will not be able to attend. H-4 City Clerk Clerk Whelan noted the Resource Development Luncheon April 20, :984 in Anchorage. H-S Finance Director Finance Director Brown noted the Public Hearing for Eadie's Way Subdivision assessment district will be May 16. H-6 Planning 6 Zoning None H-7 Harbor Commission None H-8 Recreation Commission None H-9 Library Commission Librarian DeForest said the Commission accepted Architect Gintoli's plans at their last meeting. There will be a tea for library volunteers April 27, 1984. The State Library wants the City to apply for Federal funds. Public Works Director Kornelis is working on the application. It will be about $163,000. I. PERSONS PRESENT NOT SCHEDULED TO BE HEARD a. Mayor Wagoner noted next week (4-23 to 4-27) will be Kenai Community Library Volunteer Week and Secretary's Week. b. Clerk Whelan reminded the Council and Administration that April 24 will be a budget work session. ADJOURNMENT: Meeting adjourned at 12:17 AM. APPR01O 8Y Janot Whelan' City Clerk—�`?"�y 4 �„'''� �! tr'tT!► C�QK r 1 I i i