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HomeMy WebLinkAbout1983-08-03 Council MinutesAGENDA KENAI CITY COUNCIL - REGULAR MEETING AUGUST 3, 1983 - 7:00 PM PLEDGE OF ALLEGIANCE A. ROLL CALL 1. Agenda Approval B. PERSONS PRESENT SCHEDULED TO BE HEARD 1. Jack Estes - Assignment of lease-WOMETCO 2. Charles Ross - Off Road Vehicles 3. Sandra Bilderback - Extending Water & Sewer - LACK Project C. PUBLIC HEARINGS 1. Ordinance 863-83 - Amending Kenai Municipal Code - Recommend Utility Locations in City Right -of -Way 2. Proposed Assessment District - Eadie's Lane a. Manager's Report b. Preliminary Assessment Roll c. Resolution 83-113 3. Resolution 83-114 - Transfer $2,160 for Paying City and Borough Taxes on Lot 3, Block 1, Spur Sub. 01 - to Enable City to Resubdivide D. MINUTES 1. Minutes of Regular Council Meeting of July 20, 1983. 2. Partial Verbatim of July 6, 1983 Meeting. E. CORRESPONDENCE 1. Letter from Marla Adkins dated June 26, 1983 2. Letter from Marla Adkins dated July 15, 1983 F. OLD BUSINESS G. NEV BUSINESS 1. Bills to be Paid, Bills to be Ratified 2. Requisitions Exceeding $1,000 3. Ordinance 874-83 - Amending Kenai Municipal Code, Repealing & Re-enacting KMC 12.25, and Repealing do Re-enacting KMC 21.05.050 - Abandoned Vehicles. 4. Ordinance 879-83 - Amending the 1976 Kenai Municipal Airport Regulations, as Found in the Kenai Municipal Code. 5. Ordinance 881-83 - Amending KMC 6 to Permit Punch Card Voting G. Ordinance 882-83 - Increasing rev/appns $135,000 to Construct Camping Facilities Near Marathon Road 7. Ordinance 883-83 - Regulating the Use of Off -Road Vehicles 8. Ordinance 884-83 - Amending KMC 18.35.010 - Overnight Camping 9. Discussion - McBride Right-of-way Vacation - Gov. Lot 7, Sec. 31, T6N, R11W, S.M. 10. Discussion - Lease Application - Pace Corporation - Lot 2, Part 3, Aleyeska Subdivision 11. Discussion - Lease Application - Jess L. Hall, Lot 6, Blk 1, Etolin Sub., 2nd Addn. 12. Change Order #1 with Spruce Construction Co. for LACK Project $25,486 a. Resolution 83-115 - Transfer $25,486 for Change Order #1 with Spruce Construction Co. - LACK Project. 71 ,g { - rt dt H• RE. p 0 R T 1. City Manager 2. City Attorney 3. Mayor 4. City Clerk 5. Finance Director j 6. Planning h Zoning 7. Harbor Commission S. Recreation Commission I. PERSONS PRESENT NOT SCHEDULED TO BE HEARD ADJOURNMENT { •v f 111111 I �1 KENAI CITY COUNCIL - REGULAR MEETING - MINUTES AUGUST 3, 1983 - 7:00 PM KENAI CITY ADMINISTRATION BUILDING MAYOR RONALD A. MALSTON PRESIDING PLEDGE OF ALLEGIANCE A. ROLL CALL Present: Tom Wagoner, John Wise, Ron Malston, Tom Ackerly, I Sally Bailie, Betty Glick Absent: Ray Measles (arrived 8:40 PM) A-1 Agenda Approval i a. Mayor Malston asked that item G-7, Ord. 882-83 be _ - discussed with item B-2, as they both refer to off road vehicles. b. Mayor Malston asked that item C-1 be deleted, the w• - utility companies did not receive the material till -, this date and have not reviewed it. C. Mayor Malston asked that item C-3 be deleted, the _ _ problem has been worked out. d. Mayor Malston Rsked that item G-13 be added, Mike - _=__ Taurisinen - Additional Engineering Design Services - - Itinerant Parking Ramp Overlay - $3,250. This was requested at the last meeting. e. Councilman Wise asked for reconsideration of the HEA land sale proposal passed at the last meeting, to be listed as item F-1. i ;•�. Council approved the changes as requested. B PERSONS PRESENT SCHEDULED TO BE HEARD B-1 Jack Estes - Assignment of Lease Wometco Mr. Estes said he had been leasing the buildings for 10 years. Wometco-Lathrop will do nothing to improve the buildings. He has spent a great deal of money to make them presentable. He bought the buildings from Wometco-Lathrop. He had made 3 payments on the buildings, it h as been recorded. City Manager Brighton had written to the controller of Wometco-Lathrop regarding the previous cancellation of the lease. It is not correct. He leased 2 lots from the City, the appraisal was $48,000. 3 years r, later he decided to buy, and gave them $500. After that the x appraisal was $112,000. He told them they could have the ' lots back. The City tried to sue. He hired an attorney and it was settled for $1,000. The City was paid off. It is c not fair or fight. He has no place to put the buildings. 3 Wometco-Lathrop is paid in full. Councilwoman Glick asked Mr. Estes, he had a lease based on 5 year determination and paid for 3 years, then decided to buy. Then the evaluation more than doubled and the lease rates went up accordingly? Mr. Estes replied yes. Councilwoman Glick asked Mr. Brighton why the lease rates were raised. Mr. Brighton replied, we would not raise them if it were not appropriate. Mr. Brighton added, the letter to Wometco-Lathrop was not correct, we did not cancel for non-payment. We would not raise the lease rates in the middle of a 5 year interim, the lease says we cannot. After a short recess, Finance Director Brown reviewed the lease. Oct. 1977 is the same annual rate as 1981, 1977 through 1981 did not change. In July 1982 we asked for an increase. Councilman Wagoner asked if we were talking about a different piece of property. Finance Director Brown said KENAI CITY COUNCIL AUGUST 3, 1983 rage 2 he has the termination agreement. Mr. Brighton reviewed it; Dec.8,1982, it was agreed that Mr. Estes would pay $1,000 and 1982 taxes, the City and Mr. Estes agree the lease is terminated and has no further force and effect. MOTION, Reconsideration: Ma A Councile►ert44-se moved seconded by Councilwoman Glick, for reconsideration of the action of the previous meeting regarding Mr. Estes. Motion passed unanimously by roll call vote. MOTION: Councilman Wagoner moved, seconded by Councilwoman Glick, to approve the assignment as requested. Councilman Wise noted the original motion was to concur with Administration, not to approve the lease. MOTION, Withdrawal: ! Councilman Wagoner moved, with consent of second, to withdraw the motion. VOTE, Original Motion (Failed): Motion failed unanimously by roll call vote. MOTION: F. Councilman Wagoner moved, seconded by Councilwoman Glick, to approve the assignment. Motion passed by unanimous consent. Mr. Estes asked that a letter be sent to Wometco-Lathrop, with a copy to Mr. Estes stating the matter was reviewed by Council and everything is okay. He also asked if he could pay quarterly. Administration agreed to the requests. B-2 Charles Ross - Off Road Vehicles Mr. Ross reviewed the material in the packet. The ordinance j has been adopted by the committee. They worked with Police --;�� Chief Ross and had public hearings. It is enforceable. -- They did not address age, because of possible law suits. They proposed a 10 MPH speed limit, stop at street corners. t There is a need to playing • ? protect kidsas well as vehicles. � The Recreation Commission and Beautification Committee sent letters of approval. Councilwoman Bailie asked if there was `I a need for an age specified. Mr. Ross replied it cannot be 1 over age 18. Councilman Ackerly suggested it be sent to the schools. Mr. Ross replied Chief Ross had planned an } educational program for this Fall. Mayor Malston expressed g the thanks of the Council to Mr. Ross and his committee for their hard work. G-7 Ordinance 883-83 - Regulating the Use of Off -Road Vehicles MOTION: Councilman Wagoner moved, seconded by Councilman Ackerly, to introduce the ordinance. Councilman Wise asked if item 13.04.020 al could be reviewed on right-of-ways Motion passed by unanimous consent. !u a I KENAI CITY COUNCIL AUGUST 3; 1983 Page 3 B-3 Sandra Bilderback - Extending Water & Sewer - LACK Project Mrs. Bilderback explained the people on 25th St. were concerned that they were not included in the water & sewer. Mayor Malston noted to Council that Mrs. Bilderback had brought in a petition this date with 5 additional signatures on it. Mrs. Bilderback continued - there are 10 families in the area, 2 have decided against water & sewer. Councilman Wagoner asked Mrs. Bilderback if the people realized they would be charged for the assessment anyway? Mrs. Bilderback replied yes, they did not think they would get it. They are concerned about fire protection, there are 10 dwellings, 6 mobile homes. There will be no fire hydrants. Public Works Director Kornelis said we are looking at approximately $200,000, the engineers thought it would require a lift station. Mrs. Bilderback said they have quite a bit of trouble with they sewer system. If they did not get both, they would like to put in a petition for sewers. Councilman Wagoner asked, how many lineal !'set of line would be installed? Mr. Kornelis replied,about 2,000. Councilman Wagoner said discussion was premature till we find out if we have the right-of-way. Mrs. Bilderback said she checked with the Borough, the right-of-way in Mulholland is 30 ft., from there on it is 50 ft. The Borough requires you to match what people have given, so they gave 30 ft. They are concerned that they are re -zoned. They have the disadvantages but none of the advantages. They thought they were included in water & sewer. There are no families on Lawton where it was pushed through. It would complete a circuit on Fiddler, the same as Lawton. Councilman Wagoner asked if there were funds available. Mr. Kornelis replied, there is $2,500 with the change order tonight. Councilman Wagoner said if this should have been part of the project and we have a contractor there, now is the time to do it. We should check on alternates and money available for the next meeting. Mayor Malston asked for Administration recommendation. Mr. Kornelis replied, they have had quite a few requests in this and the HEM project. Each one could be expanded to no end. We do not have sufficient funds in the contract. We could expend more funds or go with an assessment district. He added, regarding the re -zoning. He talked with Building Inspector Hackney. It was changed from Rural Residential to Suburban Residential. Suburban Residential, they could not bring in trailers, just improve the existing structures. Suburban Residential, they can build to 6-plexes, Rural Residential is 4-plexes. There is a 5 ft. setback in Suburban Res., 15 ft. in Rural Res. He noted the contractor would not add at the unit bid price because his bid price was low. City Manager Brighton said on both of these projects there has to be a beginning and end on basis of the money available. We cannot build all the water & sewer the City needs at one time. He would recommend against this. He would recommend the people create an assessment district. Councilman Wagoner asked, how long would it take to do the engineering? Mr. Kornelis replied, probably a month. Mrs. Bilderback said Mr. Kornelis had explained an assessment district to her, they would have to have 100%. 2 will not participate. Beyond them is a swamp, they are stuck in a corner of re -zoning. They do not want to be forgotten. They are restricted to 40,000 sq. ft., the City is strapped for Farm Home lots. The Bilderbacks have 3 acres they cannot do anything with. Councilman Wise suggested reducing the scope of the project, then a lift station would not be needed. Mrs. Bilderback noted there are a lot of lots set up for mobile homes that cannot be used. Mayor Malston suggested Adminstration review the bring back to Council. Mr. Brighton said he would notify Mrs. Bilderback when it was reviewed. tQ■ KENAI CITY COUNCIL AUGUST 3, 1983 - Page 4 C PUBLIC HEARINGS C-2 Proposed Assessment District - Eadie's Lane a. Manager's Report b. Preliminary Assessment Roll C. Resolution 83-113 MOTION: Councilman Wagoner moved, seconded by Councilman Ackerly, to adopt the resolution. PUBLIC COMMENT: Jackie Russell, Property World. She brought in the petition - Is this the contractor who could not adhere to the unit _ price? City Manager Brighton replied no. �. Councilman Wagoner said this is premature. The City has not - even gone to the voters to sell the bonds. Atty. Rogers - said at this point the resolution just sets a hearing date. Finance Director Brown noted in the letter $80,000 would be used for water & sewer, $25,000 from general fund. This - would not be for the bond sale. Councilman Ackerly asked,. if we go ahead, could we reimburse these funds? Mr. Brown replied, it would not be necessary, it would be re -paid. Mr. Kornelis said there is no assurance that the project would be done at unit prices listed. All water & sewer must be done by Oct. 15. This would be after that. Councilman Wagoner said when we promoted LID's it was clear that the taxpayers would have the final say on LID's in the form of bonds. To take other funds is circumventing Council intent. That was promoted as the controlling factor. Councilman Wise said bonding is unnecessary. The City can make money by loaning to an assessment district. LACK, HEM, 1st & 2nd Sts. were not approved. They were Capital Improvement Districts with public hearings. This is money -making and increases the value of the land. Mrs. Russell said Zubeck told her the cost would remain the some if less than 25% add -on. Mr. Kornelis replied, this is for satisfactory completion. This is over -excavation and is a new area. VOTE: Motion passed unanimously by roll call vote. D MINUTES D-1 Minutes of Regular Council Meeting - July 20, 1983 Mayor Maiston suggested that since Council did not received the minutes till tonight, approval be postponed to the Aug. 17 meeting. Council agreed to the suggestion. D-2 Partial Verbatim - July 6, 1983 Mayor Malaton explained this does not need approval. E. CORRESPONDENCE -1 Letter from Marla Adkins - June 26, 1983 E-2 Letter from Marla Adkins - July 15, 1983 Council took no action on these items. COUNCILMAN MEASLES ARRIVED AT THIS TIME (8:40 PM) i I u uyyj, KENAI CITY COUNCIL AUGUST 3, 1983 Page 5 F OLD BUSINESS F-1 Negotiations with HEA for Relocation of their Ridgeway Office MOTION, Reconsideration: Councilman Wise moved, seconded by Councilwoman Glick, for reconsideration of action taken at the last neeting, the offer of 10 acres for sale to HEA. VOTE_ (Passed): Yes: Measles, Wagoner, Wise, Ackerly, Bailie, Glick No: Malston Councilman Wise explained, he apologized for his motion. It is in contravention of the Code. It is improper and inappropriate. The motion authorizes certain negotiations, the Code has specific practices for land sale operations. Council cannot overturn the Code. Atty. Rogers replied this comes under 22.05.025, he did not see any problem with the Code. He will be working with 'Administration and make them aware of any problems. VOTE (Passed): Yes: Measles, Wagoner, Malston, Ackerly, Bailie, Glick No: Wise G NEW BUSINESS G-1 Bills to be Paid, Bills to be Ratified MOTION: Councilman Measles moved, seconded by Councilman Wagoner, to approve the bills as submitted, with deletion of the Kenai Peninsula Borough bill for $2,158.51 Motion passed by unanimous consent. G-2 Requisitions Exceeding $1,000 MOTION: Councilwoman Glick moved, seconded by Councilman Wagoner, to approve the requisitions. Councilwoman Glick asked if we were going to pay Dr. Hansen in one lump sum. Finance Director Brown replied it will be repaid according to the contract, the old one is monthly payments. Councilwoman Bailie asked about the rental from Red Carpet Realty. Finance Director Brown replied there are 2 units rented for dead files, library books, etc. Motion passed by unanimous consent. G-3 Ordinance 874-83 - Amending KMC, Repealing and Re -Enacting KMC 12.25, KMC 21.05.050 Abandoned Vehicles MOTION: Councilman Ackerly moved, seconded by Councilman Wagoner, to introduce the ordinance. Motion passed by unanimous consent. W KENAI CITY COUNCIL AUGUST 3, 1983 Page 6 G-4 Ordinance 879-83 - Amending the 1976 Kenai Municipal Airport Regulations, as Found in the Kenai Municipal Code MOTION: Councilwoman Glick moved, seconded by Councilman Wagoner, to introduce the ordinance. Motion passed by unanimous consent. G-5 Ordinance 881-83 - Amending KMC 6 to Permit Punch Card Voting. MOTION: Councilman Wagoner moved, seconded by Councilman Measles, to introduce the ordinance. Motion passed by unanimous consent. G-6 Ordinance 882-83 - Increasing Rev/Appns - Construct Camping Facilities Near Marathon Rd. - $135,000 MOTION: Councilwoman Glick moved, seconded by Councilman Measles, to introduce the ordinance. City Manager Brighton explained back-up on this was passed out this date to do this in-house. Contractor's price is $135,000; in-house is $89,000. MOTION, Amendment: Councilman Measles moved, seconded by Councilwoman Glick, to amend the ordinance to change $135,000 to $89,000 and indicate the work to be done in-house. Councilman Wagoner said he is opposed to funds being expended for this purpose. Councilwoman Bailie said a few meetings ago, Council discussed money available to parks and recreation for grant money. We withheld construction; money for this. Finance Director Brown needed instructions to apply for a variance to include this area. The amount was $50,000. VOTE, Amendment (Passed): Yes: Measles, Wagoner, Malston, Ackerly, Bailie, Glick No: Wise. VOTE, Main Motion as Amended (Passed): Yes: Measles, Malston, Ackerly, Glick, No: Wagoner, Wise, Bailie MOTION: Councilwoman Bailie moved, seconded by Councilman Wagoner, to direct Finance Director Brown to ask for a grant amendment for moneys that are left in Parks do Recreation grant at this time, to be used for this project. Recreation Director McGillivray said he would hope this would be pertaining to one grant, we have more than one. He would ask that it not be depleted entirely. Motion passed by unanimous consent. t KENAI CITY COUNCIL AUGUST 3, 1983 Page 7 G-•8 Ordinance 884-83 - Amending KMC 18.35.010 - Overnight Camping MOTION: Councilwoman Glick moved, seconded by Councilman Ackerly, to 4 introduce the ordinance. Motion passed by unanimous consent. G-9 Discussion - McBride Right -of -Way Vacation - Gov. Lot. 7, Sec. 31, T6N, R11W, S.M. { MOTION: 'I Councilwoman Glick moved, seconded by Councilman Measles, to approve the right-of-way vacation of the McBride property. Land Manager Labahn explained the reason this is before i Council is because the State requires Council address any j vacation. It has been to City and Borough P&Z. City P&Z i voted approval subject to certain conditions, the Borough confirmed this. In absence of action, it would be approved. I " Motion passed by unanimous consent. G-10 Discussion - Lease Application - Pace Corporation - Lot 2, Part 3, Alyeska S/D ,. MOTIONS Councilwoman Glick moved, seconded by Councilman Ackerly, for approval of the lease application. Atty. Rogers asked if the motion included incorporating the necessity of completing by July 1, 1985? MOTION, Addition: Councilwoman Glick moved, with consent of second, that this be subject to P&Z recommendation. Councilwoman Bailie asked, what would be wrong with an extra year? It is late for these people to start. Mr. Labahn replied the petitioner is aware and has no objection. P&Z recommended 2 years from execution of lease. Motion passed by unanimous consent. G-11 Discussion - Lease Application - Jess L. Hall - Lot 6, Blk. 1, Etolin S/D, 2nd Addtn. i MOTIONS Councilwoman Glick moved, seconded by Councilman Wagoner, to approve the lease application of Jess Hall. Atty. Rogers said he questions what will become of the FAA line that crosses the property. How will it bu moved, where, and will it create a problem? City Manager Brighton replied, he has scheduled a meeting with FAA Aug. 18 and will discuss this and other questions. We can probably move the line to the border of the lot. It is an overhead line, it traverses 3 or 4 lots. Mr. Lahahn said when P&Z dealt with this, they did not some to terms with completion. Mr. Hall said 1984. He didn't think there was any problem with a 2 year completion date. KENAI CITY COUNCIL AUGUST 3, 1983 Page 8 MOTION, Additions Councilwoman Glick moved, with consent of 2nd to add a 2 year construction period to the agreement. Jess Hall Jr. spoke. The FAA has an easement through there, they cannot do construction till that is done. He would like a 2 year period. Councilman Wise asked if he was willing to pay rent if he cannot build. Mr. Hall replied no, till they take possession they do not have anything. He would like to start as soon as possible. Councilman Wise asked if he intended to execute the lease before it is removed. Mr. Hall replied no. Mr. Labahn said he has 6 months from date of application before re -application is needed. City Manager Brightor: asked, if FAA has violated our Code and they are responsible agent, can we extend? MOTION, Amendments Councilman Wise moved, seconded by Councilwoman Glick, that the effective date of the lease be no esalisr than removal of eSbement . MOTION, Tables Councilwoman Glick moved, seconded by Councilman Measles, to table till Sept. 1, give City Manager Brighton a chance to talk with FAA and will have more information. Mr. Ball said he agreed with the proposal. VOTE, Table ( Passed) s i Yess Measles, Wise, Malston, Ackerly, Bailie, Glick Nos Wagoner --f''- G-12 Change Order #1 - Spruce Const. - LACK Project - $25,486 a. Resolution 83-115 - Transfer of Funds - Change Order 01 Spruce Const. - LACK Project - $25,486 Public Works Director Kornelis explained this is a change order for a water line on 25th between Kaknu and Kiana. The sewer line is part of the original project. It is higher because of the high water table. It would tie in line with r� service to additional lots, we would not have freezing. It was not requested by the residents, it is not a necessity. -- Councilwoman Glick asked is this the actual right-of-way. Mr. Kornelis replied yes. Councilman Ackerly said the i design engineer came up with this after the fact and was substantially higher price than before. He is not against this, but when we hire design engineers we never got back at - _ them when it goes higher. He will not help Spruce get out of this. Mr. Kornelis explained, Spruce does not care one „ way or the other. They feel they will lose money on this project because of the high water table. The 25% additional without renegotiations is in the contract. They received more material than they ordered, we will. never get a better ' price. Councilman Wagoner asked, what is the contingency? Finance Director Brawn, replied, $52,000. Councilwoman Glick asked, when we designed this, we had sewer? Mr. Kornelis ;- replied yes, the engineers did not make an error. Mayor Malston asked, will it open up additional land for r development? Mr. Kornelis replied, yes, with water. Councilwoman Bailie asked if Administration felt comfortable with $25,000 contingency. Mr. Kornelis replied, the project is going well, this Is the first change order. Councilwoman Glick noted, we have a contract for sewer, we have to do the excavating for the line. If we go in later for water, based on the high water table, we will lose a lot ,; ,z •,. of road. ip U. i N KENAI CITY COUNCIL AUGUS 3, 1983 Page 9 MOTIONS Councilwoman Glick moved, seconded by Councilman Wagoner, to approve change order #1. VOTE ( Passed) s Yess Measles, Wagoner, Wise, Malston, Bailie, Glick Nos Ackerly G-12s Resolution 83-115 MOTION: Councilwoman Glick moved, seconded by Councilman Wagoner, to adopt the resolution. There was no public comment. VOTE (Passed): Yess Measles, Wagoner, Wise, Malston, Bailie, Glick Nos • Ackerly G-13 Approval - Additional Engineering Design Services - Mike Tsurisinen - Itinerant Parking Ramp Overlay - $39250 Councilman Wagoner asked how important is it to take action tonight? He thought we agreed not to take items on the meeting right. Mayor Malston explained, this was requested ` at the last meeting. MOTIONS Councilwoman Glick moved, seconded by Councilwoman Bailie, to approve Administration recommendation to accept the s _ proposal. Public Works Director Kornelis noted their cost is high. There is a problem with the time frame. He wanted to get as much of the parking and overlay done this year. At the last meeting the change of fuel pits was brought up. Mr. Taurisinen's reply is in the material passed out this date. Mr. Kornelis did not know about the additional soils charge. There was a small section next tc the terminal that had to be done. Administration decided FAA, the City and the State would be better to do it together than to wait for the ramp extension. City Manager Brighton added, if it is not done in conjunction with the project, it will cost more. Council wanted this because the fuel facilities were too close to the terminal. His recommendation was to go ahead with it. Airport Manager Swalley said if we do not incorporate this into the job, we will have to cut brand new overlay asphalt. The idea is to pave as early as possible in the Spring. Councilwoman Glick asked if they did soils work already. Mr. Kornelis replied yes, but not in this area. They found a pocket of bad soil. Mr. Swalley added, about 50 ft. by over 200 ft., under the existing asphalt. The 50 ft. is between the edge of the present paving to the fence line from the terminal building to the far gate. Councilmaa Wise asked why we were discussing it at this late date, it was not important at the time. Mr. Kornelis replied, it is not an FAA requirement, it is done for the convenience of the aircraft and requested by Council. Mr. Swalley noted the increase in cQiamuter traffic Is all but blocking the present fuel pits. Mr. Kornelis said it will not be done thin year. They will bid Sept. 6 & 7 to come to Council. FAA will not let us advertise till they have their final review. Councilman Measles asked, what will happen to the present ;, KENAI CITY COUNCIL AUGUST 3, 1983 Page 10 fuel pits? Mr. Swalley replied, we are extending for 2 additional pits. The existing ones in front will remaii extend the existing line to add to the pits, 250' north the terminal unless FAA changes it. The 1st is 10019 tl 2nd is 150' more. VOTE (Passed): Yess Measles, Wagoner, Wise, Malston, Bailie, Glick Nos Ackerly H REPORTS H-1 City Manager City Manager Brighton spoke. of Regarding the negotiated lease with Bob Bielefeld. Council received material this date with a summary. Land Manager Labahn said Council agreed to negotiate a lease of 30 ft., plus 50% cap provision for one re -negotiated period and the lessee would hook up with water do sewer when available. Mr. Bielefeld is on airport property, he is entitled to 5 renegotiaticn periods with a cap. Administration has recommended a modified approach. $22,680 figure is fair market value with 50% cap through the 1st renegotiation period. The reason Administration is recommending that is, although Mr. Bielefeld is making improvements, if you base cap on renegotiations it will be a larger burden on the general fund. Only the shortfall of 50% will be re -negotiated. In lieu of the fact the 50% cap will be for 5 years, we would like to write in the lease that it be based on fair market value with 50: cap starting with the 11th year. Councilman Ackerly asked if Mr. Bielefeld had seen this. Mr. Brighton replied no. MOTION: Councilman Wagoner moved, seconded by Councilman Ackerly, to approve Administration's recommended lease rates. Motion passed unanimously by roll call vote. b. Councilwoman Glick asked, regarding the letter in the j packet from HEA. Are we going to protest the surcharge by HEA on residents? That is a cooperative, not City, I but it is the whole Peninsula. Whatever costs they incur should be distributed evenly. Atty. Rogers replied they have petitioned APUC. We will ask to be heard at any hearing and ask to be kept informed. e Mu:IGNs Councilwoman Glick moved, seconded by Councilwoman Bailie, to direct Administration send a letter of objection to the proposed discriminatory surcharge as proposed by HEA i regarding relocation costs for upgrading the system in the City. Councilman Wise asked, what is the basis? Mr. Brighton replied, to recoup HEA coats from 1980 through the present period for relocation costs. Councilman Wise asked if it was appropriate for a citizen to raise the issue. Is it depreciated cost, does it include cost of upgrading? It should be raised by Council and individuals. We should provide assistance to citizens of the City. .4 KENAI CITY COUNCIL AUGUST 3, leas Page 11 VOTES Motion passed unanimously by roll call vote H-2 City Attorney Atty. Rogers spoke. of The items deleted from the agenda regarding the bowling alley have been resolved. b. Regarding the tax lien. on Serendipity. we no longer owe anything. He suggests we not have liens on City property. c, He will be in court tomorrow regarding CIE. d. Regarding HEA, an expanded suit has been filed to recover relocation costs as well as responsibility for relocation. as The prescriptive easement matter was reviewed. We do not find prescriptive easements, Mrs. Burnett has asked it be set over. H-3 Mayor Mayor Malston said at the last few meetings he has arcked for recommendations for commissions and committees. We were going to set up a Museum Committee. He has lost 2 prospective members. H-4 City Clerk Clerk Whelan said petitions are available for Council and Mayor seats for the October 4 election. H-5 Finance Director None H-6 Planning & Zoning None H-7 Harbor Commission None H-8 Recreation Commission None I, PERSONS PRESENT NOT SCHEDULED TO BE HEARD a. Smokeeter MOTIONS Councilman Wise moved, seconded by Councilwoman Bailie, that Administration be directed to upgrade the circuit for the coffeopot and smokeeter. Motion passed by unanimous consent. b. Councilwoman Glick wished to thank Karen McGahan for her compliment to the City on the beautiful way it looks. The City should be commended. It is a pleasure to drive through the City e. Councilwoman Glick said the Borough approved rezoning in Gusty S/D and reclassification of Kenai land use map. The Borough is trying to get block grant funds so the comprehensive plans can be updated. I KENAI CITY COUNCIL AUGUST 3, 1983 Page 12 d. Councilwoman Glick said regarding the Soldotna problem. Kenai has been criticized for develo{ core area of the City. In addition to developing streets we have provided access points to alleviate traffic through down town. She was proud to be part of the Council that looked at the problem and solved it. It took her 55 minutes to go from her house to Sterling. The traffic is terrific. She is glad at the way the City has approached the street problem. e. Councilwoman Glick noted the letter in the packet from Craig Frees regarding the new airport. She has heard others say that also. In spite of problems, the results have been terrific. f. Councilman Wise asked if we had the status on Beaver Loop -Spur that the State was supposed to do, on re -engineering the intersection. Public Works Director Kornelis replied, Local Service Roads & Trails committee had a meeting last week. DOT said it is in engineering now. There will be no construction till next year. Councilman Wise suggested we point out to them the impact in June and July. It cannot be done during that period. Timing is critical. ADJOURNMENT: Meeting adjourned at IWO PM. q,6net Whe"len�� City Clerk APPROVED Sy -17- 4 ?ny am M M i' Partial Translation, Minutes August 3, 1983, Regular Council Meeting G-12 Change Crder #1 with Spruce Construction Co. for LACK Project - $25,486 a. Resolution 83-115 Transfer $25,486 for Change Order 01 - Spruce Const. - LACK Project Public Works Director Kornelis explained this is a change order for a water line on 25th between Kaknu and Kiana. The sewer lisle is part of the original project. This is higher because of the high water table. It would tie in line with service to additional lots, we would not have freezing. It was not requested by residents, it is not a necessity. Councilwoman Glick asked if this the actual right of way. Mr. Kornelis replied yes. Councilman Ackerly said the design engineer came up with this after the fact and was; substantially higher price than before. He is not against this but when we hire design engineers we never get back at them when it goes higher. He will not help Spruce get out of this. Mr. Kornelis explained, Spruce does not care one way or the other. They feel they will lose money on this project because of the high water table. The 25% additional without renegotiation is in the contract.They received more material than they ordered, we will never get a better price. Councilman Wagoner asked, what is the contingency? Finance Director Brown replied, $52,00U. Councilwoman Glick asked, when we designed this, we had sewer? Mr. Kornelis replied yoss, the engineers did not make an error. Mayor Malston asked, will it open up additional land for development? Mr. Kornelis replied, yes, with -'" water. Councilwoman Bailie asked if Administration felt comfortable with $25,0oo contingency. Mr. Kornelis replied, 4, the project is going well, this is the first change order. -- Councilwoman Glick noted, we have a contract for sewer, we have to do the excavating for the line. If we go in later �I for water, based on the high water table, we will lose a lot !i of road. -; MOTION: ! Councilwoman Glick moved, seconded by Councilman Wagoner, to approve change order #1. VOTE ( Passed) s t Yes: Measles, Wagoner, Wise, Malston, Bailie, Glick Not Ackerly - G-12a Reent_ution 83-115 MOTION: Councilwoman Glick moved, seconded by Councilman Wagoner, to adopt the resolution There was no public comment. VOTE (Passed) Yes: Measles, Wagoner, Wise, Malston, Bailie, Glick No: Acko?rlyy� IJanet Whelan City Clerk