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HomeMy WebLinkAbout1983-07-20 Council Minutes..' -. ..�..-r - AGENDA KENAI CITY COUNCIL — J'UL i 20, 1933 — 7 ; OU FM PLEDGE OF ALLEGIANCE A. ROLL CALL 1. Agenda Approval it B. PERSONS PRESENT SCHEDULED TO BE HEARD 1. Mike Tauriainen, M. Tauriainen do Assoc. - Airport Ramp and Itinerant Parking 2. PDA - Airport Vehicle Parking C. PUBLIC HEARINGS r 1. Ordinance 875-83 - Amending Kenai Municipal Code - Incorporating Alaska Statutes, Title 28 Regarding Motor Vehicles 2. Ordinance 876-83 - Increasing Rev/Appns - Grants from Kenai Peninsula and City of Soldotne for Senior Citizen Center - $59,495 3. Ordinance 877-83 - Increasin Rev/Appns - Chore Helper for Senior Citizen Center - 12,901 4. Ordinance 878-83 - Amending Kenai Municipal Code - Creating Advisory Museum Commission 5. Ordinance 880-83 -Amending Kenai Municipal Code - Provide for 100% Access LID's to Implement Charter Change 6. Resolution 83-110 - Transfer of Funds - Hire Bond Counsel for Sale of GO Bonds - $8,000 7. Resolution. 83-111 - Requesting Municipal Assistance from State }f 8. LACK Project - Amending Wince,Corthell, Bryson Inspection to Include Design 6 Inspection - 25th Ave. h• Water - $1,700 9. Change Order 01 - LACK Project - Spruce Const., 25th ;I Ave. Water Main - $17,443 a. Resolution 83-112 - Transfer of Funds - LACK a=y; Project - Change Order #1, Spruce Conat - $17,443 t D. MINUTES 1. Regular Meeting. July 6, 1983 E. CORRESPONDENCE F. OLD BUSINESS G. NEW BUSINESS 1. Bills to be Paid, Bills to be Ratified 2. Requisitions Exceeding $1,000 3. Change Order. #1 - 2nd Ave Water & Sewer, Roads - Doyle Const. - ($2,550) 4. Change Order #1 - 1st & 2nd Sta. - Prosser - $2,000 5. Assignment of Lease - Wometco Lathrop to Jack Estes 6. Discussion - ERA - Counter & Office Space Improvements 7. Discussion - Thompson Park - Amending Wince, Corthell, Bryson Engineering Design to Include Water & Sewer Study 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. PERSONS PRESENT NCT SCHEDULED TO BE HEARD ADJOURNMENT i KENAI CITY COUNCIL, REGULAR MEETING, MINUTES 7ULY 20, 1983, 7:00 PM KENAI CITY ADMINISTRATION BUILDING MAYOR RONALD MALSTON PRESIDING PLEDGE OF ALLEGIANCE A. ROLL CALL Present: Betty Glick, Ray Measles, John Wise, Ron Malston, Tom Ackerly, Sally Bailie Absents None Councilman Wagoner arrived 7:15 PM. AGENDA APPROVAL a. Mayor Malston asked that item C-9 and C-9a be deleted. b. Mayor Malston explained that deletion of item C-9 would eliminate item C-8 from Public Hearings, but suggested it remain as is. C. Mayor Malston noted item G-3 was distributed this date, and asked that Ord. 879-83 be discarded, it was put in the packet in error. Council approved the agenda as amended. B. PERSONS PRESENT SCHEDULED TO BE HEARD B-1 Mike Taurisinen, M. Tauriainen & Assoc. - Airport Ramp and Itinerant Parking Mr. Tauriainen reviewed the project and explained they have added to the project. They are interfacing with Professional Design Associates. They are overlaying all the area, one area is very bad. They will expand the itinerant parking area, add fencing and tie -downs. It will be overlaid with 2" of asphalt, the bad area will have to be excavated. They will receive bids for award Sept. 5 and award Sept. 7. They will begin construction mid -Sept. They will do the distressed area before Winter, the rest in the Spring. They will gravel in the itinerant parking area now, pave in the Spring. Councilman Wise asked if there was any discussion regarding the fuel pits. Mr. Tauriainen replied, it was discussed with Airport Manager Swalley. They are about 100 ft. from the terminal. Councilwoman Glick asked if this was too close. Mr. Swalley replied there is room to operate. He is working on getting data to extend the pipeline. One of the primary users has donated $4,500 for a pad. (AIA) Councilwoman Glick asked if we will incorporated moving further north into the project. Mr. Swalley replied, if we can. Delivery time on the pits is 4 months. B-2 PDA - Airport Vehicle Parking Gary Silvers spoke. They are in the final design - paving, draining, new lighting, access to the new lots, vehicle and pedestrian access to the Mike Tauriainen project. There are 3 basic areas involved. COUNCILMAN WAGONER ARRIVED, 7:15 PM. Mr. Silvers continued. Regarding the sidewalk, there is a chain link fence around. There is sidewalk on Willow and new sidewalk on the other side. He asked if Council preferred asphalt or concrete on the remainder. Concrete is 2 times the cost of asphalt. He suggested asphalt. Councilwoman Bailie asked, what is the idea of sidewalk all around? Mr. Silvers replied, there is a great deal of pedestrian traffic from there that should not cross the parking area. Councilman Wise asked how they would operate snow removal. Mr. Silvers replied, there are 4 types of control: E . KENAI CITY COUNCIL JULY 20, 1983 Page 2 a. curb & gutter in center b. extruded curb on top of road C. rolled curb d. paint stripe with separations of stalls Snow removal is sensitive and costly. It will have an i impact on maintenance costs. He suggested painting stripes. j It will wear off, but it is better and less expensive. Regarding fencing on the outside, a barrier should be put there to protect pedestrians and keep from random use of the lot. The existing fence is not doing the job. He felt there should be something around the fence. He had 3 suggestions: a. pull it out & re -set, this is expensive b. replace with I beam driven post , ce replace with 8x8 wood driven posts Regarding signs in the parking lot. The signs may impact the visual area. He suggested inside signs with publicity and distribution by the rental agencies. Regarding scheduling of project, they should be able to have final plans by the end of the month. He asked if Council wished to advertise this Fall for beginning this Fall or construction next Spring. If they stay close to Mike Tauriainen's job, they may get better bids. His will probably go over to next year. They did not have a final estimate, but it will be about $300,000 to $350,000 without internal gutters. The questions for Council are: i a. concrete or asphalt sidewalks b. paint stripe internal co type of post around lots d. pursue advertising this Fall f Councilman Ackerly suggested paving this year, at least the center part. During Winter, if there is no center barrier, j people will park all over. He added he would prefer asphalt t .,f sidewalks. Mr. Silvers said regarding drainage. There are several problems. They will have to drain to one side, if they put a ground level barrier, it may alter the drain situation. In Winter they could put external posts of a different color to line up on. It would be on one side so they would all look the same. Public Works Director Kornelis said in the long term parking they need barriers to - -� designate the portion of the month parked. If they don't they cannot tow the cars away. Councilman Ackerly said he - j thought there was to be some excavating, would $350,000 be enough? Mr. Silvers replied, yes. All they had to do was - c! dig out and pack back. There would be a minimum of waste. Mayor Malston asked where the rental cars would be. Mr. Silvers replied, in the 3rd lot, it would be going out even with the rest. He added, on the north lot there is a drainage Swale, they will seed and plant as a green belt. i MOTION: Councilman Ackerly moved, seconded by Councilman Wagoner, to ^; proceed post haste with airport vehicle parking with asphalt paving, with substantial decorative fencing around the ..�+• area. VOTE (Passed): Yes: Glick, Measles, Wagoner, Wise, Ackerly, Bailie No: Malston Public Works Director Kornelis explained, the ramp overlay project is funded by FAA. The schedule is to get that first, this one week after. We would have to holy Mike KENAI CITY COUNCIL JULY 20, 1983 Page 3 Tauriainen back till the engineering is done. They would not pave the ramp overlay this year, just the distressed part.He hoped the successful contractor would be willing to bring in paving equipment this year. The electric plug -ins are the new area now. We could pave right up to Sept. if the weather is good. Mr. Silvers noted Ord. 875 regarding vehicles could have an effect on the time frame. C PUBLIC HEARINGS C-1 Ordinance 875-83 - Amending Kenai Municipal Code - Incorporating Alaska Statutes, Title 28 Regarding Motor Vehicles MOTION: - Councilman Measles moved, seconded by Councilman Wagoner, to adopt the ordinance. There was no public comment. Motion passed unanimously by roll call vote. C-2 Ordinance 876-83 - Increasing Rev/Appns - Grants from Kenai Peninsula and City of Soldotna for Senior Citizen Center - $59, 495 MOTION: Councilwoman Glick moved, seconded by Councilman Measles, to adopt the ordinance. There was no public comment. Motion passed unanimously by roll call vote. C-3 Ordinance 877-83 - Increasing Rev/Appns - Chore Helper for Senior Citizen Center - $2,901 MOTION: Councilwoman Glick moved, seconded by Councilman Wagoner, to adopt the ordinance. There was no public comment. Motion passed unanimously by roll call vote. C-4 Ordinance 878-83 - Amending Kenai Municipal Code -Creating Advisory Museum Commission MOTION: Councilman Measles moved, seconded by Councilwoman Glick, to adopt the ordinance. There was no public comment. Councilman Measles asked if this could be a committee rather than a commission. Councilwoman Glick suggested a Mayor's Council similar to the Mayor's Council on Aging. Senior Citizen Coordinator Porter said the museum needs direction. Councilwoman Glick suggested Mayor Maleton come to the Aug. 1, 1983 meeting with 5-7 people as a Mayor's Council. Council agreed to the suggestion. jJ ,. KENAI CITY COUNCIL JULY 20, 1983 Page 4 VOTE (Failed): Yeas Malston, Ackerly Not Glick, Measles, Wagoner, Wise, Bailie C-5 Ordinance 880-83 - Amending Kenai Municipal Code -Provide for 100% Access LID's to Implement Charter Change MOTION: Councilmen Wagoner moved, seconded by Councilman Measles, to adopt the ordinance. There was no public comment. Atty. Rogers said he had recommended against this at the July 6, 1983 meeting. He noted Finance Director Brown had also addressed this. Presently Administration can shorten the time as short as proposed here. If the Finance Director is away and it cannot be done in time, it will be opening Lhe City to exposure in violation of the Code. Councilman Wise explained the reason he introduced this is the reauestor could have a reasonable time frame they could relate to. VOTE (Failed)s Yeas Glick, Wise Not Measles, Wagoner, Malston, Ackerly, Bailie C-6 Resolution 83-110 - Transfer of Funds - Hire Bond Counsel for Sale of GO Bonds - $89000 ' N MOTIONS Councilman Wagoner moved, seconded by Councilman Ackerly, to adopt the resolution. ' There was no public comment. Councilman Wise said he did not support a general bond ` issue. Council indicated there would be no liability to the h general public. If we go to bond election, it will fail. h There are other ways of meeting needs. Councilwoman Glick said if we go with general bond sale, we would sell bonds, - —:� pay costs of bonds and have them available till someone came in for an LID. Then we would put up -front money. Atty. j Rogers said there would be authorization: of bonds, not necessarily sale. City Manager Brighton said if we sold $2 -� Million 2% must be committed within a a year period or you are faulted 2%. 1/4 must be with a time frame. The reason is so you do not invest at a higher percent. VOTE (Passed): Yes% Glick, Measles, Wagoner, Malston, Ackerly, Bailie Nos Wise C-7 Resolution 83-111 - Requesting Municipal Assistance from ' F. State MOTIONS Councilman Measles moved, seconded by Councilman Wagoner, to adopt the resolution. There was no public comment. Motion passed by unanimous consent. KENAI CITY COUNCIL DULY 20, 1983 Page 5 C-8 LACK Project - Amending Wince, L orthell, Bryson Inspection to Include Design do Inspection - 25th Ave. Water - $1,700 MOTION$ Councilwoman Glick moved, seconded by Councilman Measles, to approve the amended contract in the amount of $1,700 Motion passed by unanimous consent. D. MINUTES D-1 Regular Meeting, July 6, 1983 a. Clerk Whelan asked that page 4, paragraph 1, line 2, delete the words "this does not involve." Line 3, delete the comma and the word "they." Line 3, after the word "different" add "and more difficult to obtain." b. Clerk Whelan asked that page 19, last paragraph, line 4, the word "break" be changed to "breach." Minutes were approved as changed and corrected. E CORRESPONDENCE None F. OLD BUSINESS None G. NEW BUSINESS G-1 Bills to be Paid, Bills to be Ratified MOTIONS Councilwoman Glick moved, seconded by Councilman Measles, to approve the bills as submitted. Motion passed by unanimous consent. G-2 Requisitions Exceeding $1,000 MOTIONs Councilwoman Glick moved, seconded by Councilman Measles, to approve the requisitions as submitted. Councilman Wagoner asked about the $6,400 for coveralls and towels. Public Works Director Kornelis replied this is the same as previous years. It is primarily for coveralls. Motion passed by unanimous consent. G-3 Change Order 01 - 2nd Ave. Water & Sewer, Roads - Doyle Const. - ($2,550) MOTION s Councilman Measles moved, seconded by Councilman Wagoner, to approve the change order. Motion passed by unanimous consent. G-4 Change Order #1 - lot & 2nd Sts. - Prosser - $2,000 a KENAI CITY COUNCIL JULY 20, 1983 ff Page 6 II MOTIONS Councilman Measles moved, seconded by Councilman Wagoner, to approve the change order. Notion passed unanimously by roll call vote. G-i Assignment of Lease - Wometco Lathrop to Jack Estes MOTION: Councilman Wagoner moved, seconded by Councilwoman Bailie, to accept Administration's recommendation and notify ' Wometco Lathrop of the decision. Councilman Wise said he understood the memo from Administration, but felt comment was valid. Mr. Estes was trying to develop, the City was not growing at the time. The man is seriously ill, he cannot sell the husiness without selling leasehold interest. He need to sell the ' business to go Outside for a kidney transplant. City Manager Brighton explained his recommendation was based on the fact that Wometco Lathrop has assigned the lease. He told them they had to have Council consent to assign. Jackie Russell, Property World, spoke. The property is for sale. The only thing Mr. Estes owns is the building, inventory and good will. The lease was re-evaluated this year and went up. Mr. Brighton explained Mr. Estes' _—' attorney come to the City to negotiate out of the lease. Mr. Brighton took it to Council. He wanted to pay $1,000 of the $4,000. Council agreed on that payment with ;. cancellation of the lease. Atty. Rogers said the negotiations were to terminate the lease, but the debt still exists. VOTE ( Passed) s Yost Measles, Wagoner, Ackerly, Bailie Nos Gliug, Wise, Malston G-6 Discussion - ERA - Counter & Office Space Improvements Dave Baumeister ERA spoke. ERA': p position is not to ask the City to fund, just for amortization of improvements over a term. ERA would pay for improvements on the ticket counter and share walls and common baggage belt. The City has unused space he is being asked to lease at the a4me rate -__ as those that are improved. Councilman Ackerly asked, what -' is the lease payment? Airport Manager Swalley replied, about $9,000 per year. Councilwoman Bailie noted at the last meeting, ERA had said they could operate without a conveyor belt. Mr. Baumeister replied they could if necessary. Councilman Measles suggested negotiating 1/2 the cost. Mr. Baumeister noted this puts more cost burden on ERA than the leaseholder on the other side. Councilman Wagoner noted a request had been made to Administration to come back with ` regulations allowing the City to regulate who will come into the airport. Councilman Measles reviewed his proposal further. City put the conveyor belt in, put the partition in to divide, ERA finish their side. The 6th carrier would benefit from the conveyor belt and center partition, but would still have to put in the counter space. Public Works Director Kornelis said he had a change order from Halverson in the amount of $60,000. Mr. Baumeister said his cost is $19,000. a - KENAI CITY COUNCIL JULY 20, 1983 Page 7 MOTION: Councilman Wagoner moved, seconded by Councilman Ackerly, to direct Administration to sit down with Dave Baumeister and work out an acceptable solution and come back with recommendations to put him in the same level of doing business with the City as all other air carriers. Councilman Measles asked Mr. Baumeister, if we amortize to a maximum of $25,000 over a 5 year period and he went over, he would not come back to Council? Mr. Baumeister agreed. MOTION, Withdrawals Councilman Wagoner, with consent of second, withdrew his motion. MOTION: Councilman Measles moved, seconded by Councilwoman Glick, that the City agree with the proposal with ERA on their lease space that the space will be completed exactly as other ticket counters and the City would amortize expenses of construction over 5 year period, not to exceed $25,000. City Manager Brighton suggested a stipulation of 5 years on one year renewal leases. Councilman Measles agreed, if they pull out, they lose out on the cost. Airport Manager Swalley said it would be $7,348 per year, including 15%. VOTE (Passed)s Yess Glick, Measles, Wagoner, Wise, Ackerly, Bailie Nos Holston G-7 Discussion - Thompson Park - Amending Wince, Corthell, Bryson Engineering Design to Include water do Sewer Study Councilman Wagoner said Council was to be provided cost of water & sewer for Thompson Park, but have been provided with estimate of cost to provide couL. Councilman Ackerly asked for a ball -park figure. Public Works Director Kornelis replied, a rough estimate of interceptor to run a sewer line from Swires to Thompson Park, $1,100,000. The interceptor to run inside Thompson Park is an additional $2,065,000, for a total of $30165,000. That includes lift stations. Engineering and contingency are not included. That would bring it to about $4 Million. Councilwoman Glick said the possibility of an small alternate community system was discussed. Is there a cost on that? Phil Bryson - Wince, Corthell & Bryson - spoke. There were 2 diecussiones one wee evoluatiun of sewer problems, addressing alternatives and engineering. The other was estimates of what it would take for interceptor. Public Works Director Kornelis said there is the question if DEC would allow. If they allowed it, it would be 2 years before it would be approved. If we go a package plan, we need another permit. It would require another person on staff. MOTION: Councilman Wagoner moved, seconded by Councilman Ackerly, to direct Administration to proceed with the road project in Thompson Park as per previous letter to engineering firm of Wince, Corthell & Bryson. VOTE (Passed): Yeas Measles, Wagoner, Ackerly, Bailie Nos Glick, Wise, Malstan N i= K€NAI CITY COUNCIL JULY 20, 1983 pang R ADDED IT£Ms Mayor Holston noted at the last meeting Council had 2 alternates regarding the Thompson Park road project that were not acted ons a. Paved roadway at $780#000 b. Interim paving at $666,000 Public Works Director Kornelis explained, if there is no intent of paving the road in the next 5 years, we can go with the less substantial base. MOTIONS Councilman Wagoner moved, seconded by Councilman Ackerly, to direct the engineers to proceed with alternate 02. VOTE (Possed)s Yess Measles, Wagoner, Malston, Ackerly, Bailie Nos Glick, Wise H. REPORTS H-1 City Manager City Manager Brighton spoke. s. Regarding salvaging of the fire truck that was let out for bid in Jan. The letter from Public Works Director Kornelis in the packet explains for $19000+ we would have an additional sanding }ruck, to buy one would be $30,000. He recommended accepting the proposal. MOTIONS Councilman Ackerly moved, seconded by Councilwoman Bailie, to convert the crash truck to a City sander for $1,000. Mayor Holston noted it was discussed the truck could be used for watering the green areas. If it was converted to a sander, could it be used for that? Public Works Director Kornelis replied no, the tank would be taken off. City Manager Brighton added, we have an old fire truck we can use for that purpose. It is not used for fires. The Parks people are doing the work. VOTE (Passes): Yess Glick, Measles, Wagoner, Wise, Ackerly, Bailie Not Holston b. The July 6 packet had a counter -proposal From Bob Bielefeld. P6Z and Council hove okayed it. The appraisal is 4.5 0 ft. He has submitted a counter proposal of 30 ft. He would construct roeds from the end of Willow to the leased site. He would provide his own access to taxi ways at City specs. He will continue to develop to the far north of his property. He intends to build a hanger, but was not specific beyond that. MOTIONS Councilmen Wise moved, seconded by Councilwoman Glick, to accept the proposal, except 50% for the first period of negotiations. KENAI CITY COUNCIL JULY 20, 1983 Page 9 Mr. Brighton said he will provide his own septage and us system. He will have a gravel road. He recommended a counter proposal of 3.50 instead of 30. He has to put it roadway to the site, about 400-500 ft. Councilman Hess] asked, how such is he leasing? Councilman Wise replied, about 5-1/2 acres. NOTION, Amendments Councilwoman Glick moved, seconded by Councilman Ackerly, that Mr. Bielefeld hook up to water do sewer when available. VOTE, Amendments Motion passed unanimously by roll call vote. MOTION, Amendments Councilman Measles moved, seconded by Councilman Wagoner, to change the price to 3.50 as recommended by City Manager Brighton. Councilman Wise suggested a 10 year limit at the low rate. It would permit his to amortize over a reasonable length of time. The extra 1/20 is not that important, getting the property open is a greater advantage to the City. VOTE, Amendment (failed)s Yeas Messles, Wagoner, Holston Nos Glick, Wise, Ackerly, Bailie VOTE, Main Notion as Amended (Passed)s Yost Glick, Measles, Wise, Molston, Ackerly, Bailie Nos Wagoner City Manager Brighton confirmed, 30 ft., one time cap, hook up water & sewer. Council agreed. e. Regarding the agreement with HEA on relocation of power lines. We need to respond to their proposal, ; that the lot time the City requested moving for N," roadway, they would be responsible; they would not be responsible the 2nd time. MOTIONs Councilman Wise moved, seconded by Councilwoman Glick, to -- support the proposed agreement. Councilwoman Glick noted Public Works Director Kornelie had said there have been times we have asked them to move more than once. Does that happen often? Mr. Kornelie replied, once or twice during a project. Atty. Rogers noted HEA may relocate their offices in Kenai. This is not relevant to ' this issue. This is not any part of the proposal. The _ present agreement is an interim measure for relocating after o' the lot relocate. It has been the City position in courts that at all times relocation is the responsibility of { utilities. That is Common Law. The proposed agreement says they can come back for lot relocation if they win the litigation. Their attorney agrees. Litigation will determine this. He is not aware that HEA has not said they would relocate without this agreement. They will relocate, s } there is not need for an agreement for work in progress. Also, the financial burden will remain with HEA unless the courts any 3therwise. The City may not have the right to expend funds that Common Law say otherwioo. We are getting what we need now without an agreement. Mr. Brighton said he i 3 ., _- - KENAI CITY COUNCIL JULY 20, 1983 Page 1n . ali6 .. has no documentatina, just conversation with Mr. ybtt; There is a possibility HEA might renege on relocation on the basis we should make it part of the project. Though they agreed to relocate on the basis of us being in court, it might be in their best interest to stop relocating till the court decision is made. Atty. Rogers said the courts would be receptive to injunctive relief on the road project. Councilman Mesoles said there is no reason for a 2nd relocation very often. COUNCILMAN WAGONER LEFT AT THIS TIME (10s20 PM) VOTE (Failed): - Yes$ Wise I Nos Glic'pk, Mvasles, Malston, Ackerly, Bailie d. Regarding negotiations with HEA on moving of their Ridgeway office headquarters. There is a 10 acre site in the north side of Airport Way adjacent to the leased 1 lot of Glacier State Telephone and across the street. It is FAA real estate. He scheduled a meeting with FAA and Land Manager Labahn for this and 5 other matters. He proposes trading a like dollar amount for that 10 acre site so the City would not be out any expense. The trade would be on a portion of Section 36 on the north side of the road, none is under discussion at this point. The prevailing factor would be the cost, appraisals would be needed on both. The purpose would be to get them located in this area. Councilman Ackerly said as a leaseholder he is not sure how strong -- - his objection is when they get free property and he has to pay. By giving them property, he is not sure there are that many benefits. People who work there will not move into the City. We should charge them something, Councilman Wise said we have provision in the Code to subsidize purchase for development. The location has many attributes, they will relocate because of access, not because of the lease. They need us more than we need them. we could reallign Marathon at the some time, it could be airport cost. ^` Jackie Russell, Property World, spoke. The problem with FAA property exchange for Section 36 land is she would not like FAA authority in that area. HEA is — - non-profit and would not pay taxes. MOTION$ Councilman Wise moved, seconded by Councilman Ackerly, for -- the sale of 10 acres (at fair market value less discount) of FAA land be made available with concurrence of FAA for release, discount to be determined by negotiation. Atty. Rogers said there is power to negotiate a sale in the Code. We are subsidizing HEA'and suing them to maintain their office to serve the public. Councilwoman Glick asked Mr. Brighton if he had pointed out to HEA that they are in breach of contract by not maintaining an office. Mr. Brighton replied, no but he was sure they are aware of it. Councilman Wise said part of the negotiations should be, what are they yoing to do with it - move the Homer office, have a substantial office? If they do something ` ` substantial, thay would bring other activity into the area. He suggested the City Manager negotiate and come back to Council. M, KENAI CITY COUNCIL JULY 200 1983 Page 11 MOTION, Amendments Councilman Measles moved, seconded by Councilman Wise, to limit the discount, in negotiations to 10:. Councilwoman Glick asked Atty. Rogers, if we do anything other that offer them land at fair market value, does that jeopardize our law suit? Atty. Rogers replied, he did not think so. VOTE, Amendment (Passed)$ Yess Glick, Measles, Wise, Ackerly, Bailie Not Malston Mr. Brighton noted there is nothing to say HEA will locate in an appropriate geographical area, their headquarters are In Homer, it is not in a geographical advantageous area. If it were located here, it would generate substantial economic activity for Kenai. Even if no one in the office relocates, there would be people working there that would shop in Kenai. The City does not compete with Soldotna, Homer or Seward on industrial complexes on the Peninsula. There are only a few things we can offer. HEA plans to increase 5-15 people in the future. They will relocate their entire facility from Ridgeway. If he negotiates on basis of 10% discount, the City will pay 10: discount, there will be no cash cost to the citizens. We are committed way beyond this in the proposal to the flight service station. Councilman Measles said regarding giving land away. This is something that is not in competition with any business in the community. Councilwoman Glick asked, is the area on Airport May free and clear of restrictions on construction? Has it been released for sale? If we swap land, will those conditions carry to the land we will srsp? Mr. Brighton replied the only restriction would be that it could not sell for less than appraised value. The City would have to get a release from FAA to sell. Councilwoman Glick asked Mr. Brighton if this was discussed with FAA. Mr. Brighton replied no, he has noi, heard from FAA. He will most with them in 2 weeks. VOTE, Main Motion as Amended (Passed): Yes$ Glick, Measles, Wise, Ackerly, Bailie Not Malston at City Manager Brighton noted awards received by individuals of the City. Ken Siirilla was awarded Sewer Treatment Operator of the Year, the sewer treatment plant was awarded the Sewer Treatment Plant of the Year. Mayor Malston and Airpc:t Manager Swalt_ey received awards of appreciation from CAP. Finance Oirecior Bro►n has received is Certificate of Excellence in Accounting. Building Inspector Hackney has received Certified Building Inspector from the International Assn. This made him feel good about the caliber of employees in the City. f. Councilwoman Glick coked, regarding the Candlelight/Linwood construction, have people been informed they can hook up (at their expense) or are we just stubbing out? Public Works Director Kornalls replied we have not made any notifications. It is up to the individual to contract out. H-2 City Attorney G � r KENAI CITY COUNCIL JULY 209 1983 prbyp _ _ _ lni Atty. Rogers spoke. Go There is more litigation on leased lands for non-payment of losses. b. The restrictive easement question is proceeding. He will report at the Aug. 3 meeting. c. Land Manager Labahn is reviewing the HEA power line question. d. There is expanding litigation on the HEA pole relocate controversy. of Regarding litigation on Miles Dean vs the City, Mr. Roper, Mr. Peterkin and the City are involved. The City is a nominal defendant. f. Regarding vehicle impoundment, Atty. Rogers and Police Chief Rose have met, they will have a report for the Aug. 3 meeting. g. Regarding the Cable TV meeting. It was fruitful, other cities are exploring franchise fees. There may be a State-wide group formed. A letter from Ted Berne is in the packet. h. Regarding Councilman Messlee, request to look into vacation of land dedicated to culto-al facilities. He hoe a letter from the State, there will be no problem. L. CIE has not paid, he will be filing forcible entry and detainer. H-3 Mayor Mayor Holston asked Council for any people for commissions. He asked that names be submitted to him or Clerk Whelan for form completion. H-4 City Clerk Clerk Whelan said petitions will be available for Council seats in the Oct. 4, 1983 regular election from Aug. 4, 1983 to Sept. 2, 1983. H-i Finance Director None H-6 Planning 4 Zoning None H-7 Harbor Commission None H-8 Recreation Commission Recreation Director McGillivray spoke. of He has had a request to go to the Jesse Owens games in Los Angeles Aug. 10 to Aug. 14. MOTIONS Councilman Wise moved, seconded by Councilwoman Bailie, to approve the request of Mr. McGillivray. z, f KENAI CITY COUNCIL 2L'L Y 20, 1983 0aye 13 Motion passed by unanimous consent. b. Per Councilman Wise's request, there is gravel at the soft ball field, they should be able to get out easier. I. PERSONS PRESENT NOT SCHEDULED TO BE HEARD a, Father Targonsky, Russian Orthodox Church. There is a sign on the bluff stating the Russian Church was founded in 1864. It should be 1846. Mayor Malston explained that is a Chamber of Commerce sign, he suggested father Targonsky contact them. b. Public Works Director Kornelis. Based on direction of Council, he will put an ad in the paper regarding Section 36, the bluff will be divided into 4 areas. Council agreed. c. Jackie Russell, Property World. Regarding the LID assessment districts for Eadie's Lane. She is available to answer any questions. Atty. Rogers said it is under the old rules, not the 100% rate. Mrs. Russell said if there are DEC funds they would like them used, if not, she will get amended requests. Atty. Rogers replied, there are no DEC funds. Mrs. Russell noted it figures out to $89000 a lot. d. Councilwoman Glick wished Clerk Whelan a good time on her vacation. ADJOURNMENT: Meeting adjourneed� at 11 s 10 PM. 7G��Yl�ii �'L' Janet Whelan City Clerk F J PARTIAL VERBATIM ERA July 20, Council Meeting Councilman Measles: I would move that the City agree on the proposal with ERA helicopters on their lease space, that the space will be completed exactly as the other ticket counter areas in the airport and that the City would advertise the expense of this construction over a period of 5 years or amount not to exceed $25,000. Councilwoman Glick: Second City Manager: Mr. Chairman, I would like to stipulate that that 5 years be on 1 year renewable leases. Councilman Measles: That's the way the leases are drawn up. City Manager: Yes, it is, but you're motion might interpreted that we're giving a 5 year lease. City Attorney: Or that there's a presumption of renewal. Councilman Measles: Or like I said if for some reason they pull out at the end of the first year, that's the end of the amortization time, ERA lost the balance. Man: That's right Mayor Malston: Did anyone come up with the amount of the lease? City Manager: It's about $5,000. Airport Manager: I've got a correction on that. It comes out to $7,348.(inaudible on how many cents) per year. Mayor Malston: Does that include the 15%, Jim? Airport Manager: Yes, it does. (Inaudible) Mayor Malston: (Inaudible) Madame Clerk, would you call the roll please? Betty Glick: Yes Ray Measles: Yes Tom Wagoner: Yes John Wise:. Yes Mayor Malston: No Tom Ackerly: Yes Sally Bailia: Yes End of Verbatim I .. I .�