The URL can be used to link to this page

Home My WebLink About1983-09-07 Council MinutesAGENDA KENA1 C11Y COUNCIL - HEGULAH MLEIING SFPTEMBER 7, 1983 - 7s00 PM PLEDGE OF ALLEGIANCE A. ROLL CALL 1. Agenda Approval B. PERSONS PRESENT SCHEDULED TO BE HEARD C. PUBLIC HEARING 1. Ordinance 885-83 - Increasing Rev/Appns - Evergreen, Haller, McKinley Project - Eadie's Land Assessment District - $105,000 a. Substitute Ord. 885-83 b. Haller, Evergreen, McKinley, 3rd, 4th, 27th,32nd- Eadie's Lane - Change Order #2 - Zubeck - $85,491.67 2. Ordinance 886-83 - Amending Kenai Municipal Code - Delete 16.20.040 - Delinquent Special Assessment Payments 3. rubliu Hearing - Proposed Assessment District - Eadie's Lane a. Resolution 83-120 - Continuation of Eadie's Lane Assessment District b. Approval - Eadie's Lane Engineering, Inspection, Surveying - M. Tauriainen - $12,696 4. Resolution 83-121 - Grant from State of Alaska - Street Improvements - $600#000 5. Resolution 83-122 - Declaring Surplus Equipment 6. R&bo lution 83-123 - Award of Contract - Ryans Creek Fitness Trail 7. Change Order #11 - Gym, Racquetball Court - Blazy Const. - $560 a. Resolution 83-124 - Change Order #11 - Racquetball Courts - Blazy Const. 8. Applicatinn for Liquor License - Peninsula Moose Lodge # 1942 0. MINUTES 1. Regular Meeting, August 17, 1983 r•. =s� _1 i E. CORRESPONDENCE 1. Alaska Human Rights Commission - Increase Contracting Opportunities - Minority and Female Owned Businesses in Alaska F. OLD BUSINESS G. NEW BUSINESS 1. Bills to be Paid, Bills to be Ratified 2. Requisitions Exceeding $1,000 3. Ordinance 887-83 - Amending Kenai Municipal Code 7.25 - Establishing Accounting and Budgeting Procedures for Encumbrances H I. 4. Ordinance 888-83 - Increasing Rev/Appns - State Grant Senior Citizens - $8,069 5. Ordinance 889-83 - Increasing Rev/Appns - Airport Terminal Parking - $600,000 6. Ordinance 890-83 - Increasing Rev/Appns - Airport Ramp Overlay 6 Itinerant Parking 7. Approval of Terminal Lease - D&D Enterprises S. Lease Application - Je93 L. Hall - Etolin S/D 9. Discussion - Unsubdivided Airport Lands - Kenai Aviation 10. Discussion - Arbitration Panel for Lease Appraisal - Ron Yamamoto - Gusty S/D 11. Discussion - Games of Chance & Skill - Peninsula Board of Realtors 12. lst 6 2nd Sts. - Change Order #2 - Prosser Const. - $4,300 REPORTS 1. City Manager 2. City Attorney 3. Mayor 4. City Clerk S. Finance Director 6. Planning & Zoning 7. Harbor Commission S. Recreation Commission 9. Library Commission PERSONS PRESENT NOT SCHEDULED TO BE HEARD ADJOURNMENT D jj 1 I KENAI CITY COUNCIL - REGULAR MEETING - MINUTES SEPT. 7, 1983 - 7:00 PM KENAI CITY ADMINISTRATION BUILDING MAYOR RONALD A. MALSTON PRESIDING PLEDGE OF ALLEGIANCE A. ROLL CALL Presents Wise, Malston, Ackerly, Bailie, Glick, Measles Absents Wagoner (arrived late) AGENDA APPROVAL a. Mayor Malston asked that item C-3 (Public Hearing, Eadie's Lane; Resolution 83-120, Continuation of Eadie's Lane Assessment District; and Approval of Engrg., Eadie's Lane) be put in front of item C-1. b. Mayor Malston asked that Resolution 83-125, distributed this date, be added with item C-6, Resolution 83-123 - Ryans Creek Fitness Trail c. Mayor Malston asked that Change Order P1, Boat Ramp - distributed this date - be added as item G-13 Council approved the changes as submitted. C-3 Public Hearing - Proposed Assessment District - Eadie's Lane Assessment District a. Resolution 83-120 - Continuation of Eadie's Lane Assessment District b. Approval - Eadie's Lane Engineering, Inspection, Surveying - M. Tauriainen - $12,696 C-3 There was no public comment. C-3a Resolution 83-120 MOTIONs Councilman Ackerly !noved, seconded by Councilman Measles,to adopt the resolution. There was no public comment. Motion paeeed unanimously by roll call vote. C-3b M. Tauriainen Engineering MOTIONS Councilwoman Glick moved, seconded by Councilman Measles, to approve the proposal. Motion passed by unanimous consent. COUNCILMAN WAGONER ARRIVED AT THIS TIME. (700 PM) C-1 Ordinance 885-83 - Increasing Rev/Appns - Evergreen, Haller, McKinley Project - Eadie's Lane Assessment District -• ! 1`l5,000 a. Substitute Ord. 885-83 b. Heller, Evergreen, McKinley, 3rd, 4th, 27th, 32nd - Eadie's Lane - Change Order #2 - Zubeck - $85,491.67 C-i Ord. 885-83 Finance Director Brown Pxplained the substitute is the difference in the allocation of bond money. They did not have the exact figure at the last meeting. J, F KENAI CITY COUNCIL SEPT. 7, 1983 Pag 2 MOTIONt Councilman Measles moved, seconded by Councilwoman Bailie, to adopt the ordinance as amended. There was no public comment. da�i +e. ti 0+% O v1 V a s$ eQ u►v►a r. ; .a, o k s( io y r0 1� �� C-lb Change Order #2 Public Works Director Kornelis expiained, th3 substitute change order submitted this date does not include top soil, seeding and infiltration structure. MOTION: Councilman Measles moved, seconded by Councilwoman Bailie, to approve the change order in the amount of $81,000. Councilwoman Glick asked if we were going to do the seeding etc. next year, not do it at all, or would the Recreation dept. do it. Mr. Kornelis replied they have not made a decision yet. Councilwoman Glick noted if we came back next year under a new contractor it would cost more money. Mr. Kornelis said the inspector felt it would be better if we went out next year with a new contractor. Councilman Measles asked, if this is done next year, what would it do to the assessment district? Councilwoman Bailie asked, we are not going to do it next year, just water 6 sewer and the property owners will do the rest? Mr. Kornelis replied Yes* PUBLIC COMMENT: Jackie Russell. It is too late to seed this year and there is sloughing of top soil because of the new work. $1500 for the entire project is not a major item. It would be $100 per person assessment. Mr. Kornelis said it could be added next year with the assessment district before it closes. VOTE: Motion passed unanimously by roll call vote. C-2 Ordinance 886-83 - Amending Kenai Municipal Code -Delete 16.20.040 - Delinquent Special Assessment Payments MOTION: Councilman Measles moved, seconded by Councilwoman Glick, to adopt the ordinance. There was no public comment. Motion passed unanimously by roll call vote. C-4 Resolution 83-121 - Grant from State of Alaska - Street Improvements - $600,000 MOTION: Councilwoman Glick moved, seconded by Councilman Measles,to adopt the resolution. There was no public comment. Councilman Wise asked that Rep. Malone be acknowledged, he was helpful in getting funds for this, and is in attendance thla evening. KENAI CITY COUNCIL SEPT. 7, 1983 Page 3 Council agreed to the action. Mot+.on passed by unanimous consent. C-5 Resolution 83-122 - Declaring Surplus Equipment 3' MOTION: Councilman Measles moved, seconded by Councilman Ackerly, to „I adopt the resolution. hThere was no public comment. Motion passed unanimously by roll call vote. C-6 Resolution 83-123 - Award of Contract - Ryans Creek Fitness Trail Public Works Director Kornelis reviewed the contract and explained Public Works recommends going the basic bid and later going to the alternate. Councilman Wise asked if there was a grant from ARCO for $500. Mr. Kornelis replied, that was for equipment. He added, this would eliminate the signs on the trail at this time. He would like the { contractor to come back with a change order. MOTIONS Councilwoman Glick moved, seconded by Councilman Measles, to adopt the resolution. Councilman Ackerly objected to the change and noted the whole purpose of the trail is the signs that tell what to do as they go along. Mr. Kornelis explained there is a bonding problem for the contractor, he will return with a change order. Councilman Ackerly withdrew his objection. MOTION, Amendments Councilwoman Glick moved, seconded by Councilman Measles, to eliminate alternate #1 and approve the basic bid only for $47,273. Councilman Ackerly said the bidder has a $50,000 bond, it is suspect on the city's part to award later. He is still over the bonded amount. Mr. Kornelis explained the bidding specs were drawn up so the contractor had to have a bond for $50,000. The basic bid does not go over $50,000. The contractor cannot get bonding for both. Also, we only have one bidder. There was no public comment. Councilwoman Glick asked for Administration's recommendation. City Manager Brighton said he recommended approval as amended because: a. There is a single bidder. b. He has done good work in the past. Councilman Wise asked if there were funds appropriated. Finance Director Brown replied, there are funds available. Councilman Wise asked if the bond requirement was State or City? Mr. Kornelis replied, the State requires using public funds over $50,000 has to be bonded. The Legislature will be changing this to $100,000. KENAI CITY COUNCIL SEPT. 7, 1983 Page 4 MOTION, Amendments Councilman Wise moved, seconded by Councilwoman Glick, to include alternate #1 and add a WHEREAS clause specifically waiving requirements for a performance bond. Councilman Wagoner noted there may be another contractor that could bid without bonding. VOTE, Amendments Motion passed unanimously by roll call vote. VOTE, Main Notion as Amended (Passed): Yess Wise, Malston, Ackerly, Bailie, Glick, Measles, Not Wagoner C-6a Resolution 83-125 - Transfer of Funds - Ryons Creek Park - $1,200 MOTIONs Councilwoman Glick moved, seconded by Councilman Measles, to adopt the resolution. There was no public comment. Motion passed by unanimous consent. C-7 Change Order #11 - Gym, Racquetball Court - Blazy Const. - $560 a. Resolution 83-124 - Change Order #11 - Racquetball Courts - Blazy Construction C-7 Change Order #11 MOTIONS Councilman Measles movcd, seconded by Councilwoman Bailie, to approve the change order. Public Works Director Kornelis explained, the change order came to Council for a sound barrier and was rejected. It was already installed. The contractor has asked if he could just get his materials. VOTE (Passed): Yess Malston, Ackerly, Bailie, Measles, Wagoner Nos Wise, Glick C-7a Resolution 83-124 MOTIONS Councilman Wagoner moved, vacuirded by Cuuncilman Ackerly, to adopt the resolution. There was no public comment. VOTE (Paus.ed) s Yess Wise, Malston, Ackerly, Bailie, Measles, Wagoner Nos Glick C-8 Application for Liquor License - Peninsula Moose Lodge #1942 Clerk Whelan asked if Council would approve a 30 day extension for additional informatiuz. .a r KENAI CITY COUNCiL SEPT. 79 1983 Page 5 MOTIONS Councilwoman Glick moved, seconded by Councilman Wagoner, to write to the Alcoholic Beverage Control Board requesting a 30 day extension regarding the Peninsula Moose Lodge. Motion passed by unanimous consent. D MINUTES D-1 Regular Meeting, August 17, 1983 Clerk Whelan asked that page 10, paragraph 2, line 13, the name be corrected to Bowpicker Lane. Minutes were approved as corrected. E. CORRESPONDENCE E-1 Alaska Human Rights Commission - Increase Contracting Opportunities - Minority and Female Owned Businesses in Alaska Atty. Rogers noted it may be appropriate to not take any action till a decision is made regarding the Sewer Treatment case. They have made none, but it was listed as a prospective liability in our audit even though it is their problem. Council took no action. F. OLD BUSINESS None G. NEW BUSINESS G-1 Bills to be Paid, B:lis to be Ratified MOTION: Councilwoman Glick moved, seconded by Councilman Measles, to approve the bills, adding the invoice from Malone Surveying for $59090 submitted this date. Motion passed by unanimous consent. G-2 Requisitions Exceeding $1,000 MOTIONS Councilwoman Glick moved, seconded by Councilman Wagoner, to approve the requisitions as submitted. Councilman Wise asked about the Peninsula Fence bill. Airport Manager Swalley and Atty. Rogers explained, a stolen car ran through the fence, the police have made an apprehension, c:�-.` �o�:c.1 i9 -%V fi "1c a o.� a'vw�� c o 11 a c4 i o � "s w ..o i*. c,.- Motion passed by unanimous consent. G-3 Ordinance 887-83 - Amending Kenai Municipal Code 7.25 - Establishing Accounting and Budgeting Procedures for Encumbrances MOTIONS Councilman Wagoner moved, seconded by Councilman Ackerly, to introduce the ordinance. iI I KENAI CITY COUNCIL SEPT. 7, 1983 Page 6 VOTE (Passed)$ Yess Malston, Ackerly, Bailie, Glick, Measles, Wagoner Not Wise G-4 Ordinance 888-83 - Increasing Rev/Appns - State Grant - Senior Citizens - $6,069 MOTIONS Councilwoman Glick moved, seconded by Councilman Wagoner, to introduce the ordinance. Motion passed by unanimous consent. G-S Ordinance 889-83 - Increasing Rev/Appns - Airport Terminal Pgrk ing - $600,000 MOTIONS Councilman Wagoner moved, seconded by Councilwoman Glick, to introduce the ordinance. Motion passed by unanimous consent. G-6 Ordinance 890-83 - Increasing Rev/Appns - Airport Ramp Overlay & Itinerant Parking MOTION: Councilwoman Glick moved, seconded by Councilman Measles, to introduce the ordinance. Motion passed by unanimous consent. G-7 Approval of Terminal Lease - D&D Enterprises MOTIONS Councilwoman Glick moved, seconded by Councilman Wagoner, to approve the lease. Atty. Rogers asked that in the interest of consistency, this be amended to include the principals of D&D and make the duration one year. MOTION, Amendments Councilman Wagoner moved, seconded by Councilwoman Glick, to amend the lease to add the names and a one year term. City Manager Brighton explained it would be located on the north end of the car rentals. The newspapers would be located between the front door and the storm door. Atty. Rogers said a full legal description would be added when received. Councilman Ackerly asked if this was exclusive or would other travel agencies apply? Mr. Brighton replied other agencies may apply. VOTE, Amendment (Passed)s Yeas Wise, Malston, Ackerly, Bailie, Glick, Wagoner Not Measles VOTE, Main teat ion as Amended (Passed): Yeas Wise, Malston, Ackerly, Bailie, Glick, Wagoner No: Measles I 1 I y I r 1 11 1 I 1 ' I I 1 's . KENAI CITY COUNCIL SEPT. 7, 1983 Page 7 Councilman Wise said he did not feel the magazines should be in the foyer. G-8 Lease Application - Jess L. Hall - Etolin S/D City Manager Brighton noted the cable is being buried this date. MOTION: Councilwoman Glick moved, seconded by Councilman Measles, that based on City Manager Brighton's comments, Council approve the lease application. Motion passed by unanimous consent. G-9 Discussion - Unsubdivided Airport Lands - Kenai Aviation City Manager Brighton explained he did not know why this was on the agenda. Land Manager Labohn is on vacation. Atty. Rogers noted this will take some work by the Legal Dept. No action was taken by Council. G-10 Discussion - Arbitration Panel for Lease Approval - Ron Yamamoto - Gusty S/D Mayor Mulaton explained he would appoint one member to the panel, Mr. Yamamoto would appoint one, and those 2 would appoint a 3rd. Mayor Malston requested Councilmen Wise, and added all members of Council will probably be asked to serve. Councilman Wise accepted the appointment. G-11 Discussion - Games of Chance & Skill - Peninsula Board of Realtors M01ION1 Councilman Wagoner moved, seconded by Councilman Measles, to approve the application. Motion passed by unanimous consent. G-12 list h 2nd Ste. - Change Order 02 - Prosser Const. - $4,300 MOTIONS Councilman Measles moved, seconded by Councilwoman Bailie, to approve the change order for $4,300. Motion passed unanimously by roll call vote. G-13 Kenai Boat Ramp - Change Order #1 - Del -Mar Inca - $4,025 MOTION: Councilwoman Glick moved, seconded by Councilman Measles, to approve the change order in the amount of $49025. Councilman Ackerly noted if lie is using this, it should take lose fill and reduce the amount. Public Works Director Kornelis explained, the material on the edge woo poor. If we ever patieirthe $4,000 will be well spent. Administration requested this, not the contractor. Councilman Wagoner noted the City has put a lot of the stuff on private property. Mr. Kornelis said ho would notify the land owners. The contractor thought it was City -owned. V...V% ?cXScud1 %AVMV1" Mowt11 101 mil\ �!J a KENAI CITY COUNCIL' SEPT. 7, 1983 Page g H. REPORTS H-1 City Manager Councilman Wagoner asked, what is the status on limiting of commuter airline services? Airport Manager Swelley replied, it is in process. H-2 City Attorney City Attorney Rogers spoke. a. Regarding the memo in the packet on HEA application for special assessments. PUC has made us intervener to the action. He has not received the order yet. They suspended action by HEA and have asked HEA to respond by Sept. 26. If we participate, because of the protest, we will be assessed costs of the proceedings. He felt the function of the City was to make known the City's feelings. Now we are brought in as party. They want to sit as judges for 2 litigants. Councilwoman Glick asked, if we don't participate, where does that leave us? Atty. Rogers replied, we should inform PUC that we do not wish to be party, but want to be informed and our wishes known and ask PUC to serve as they are charged to. Councilwoman Glick asked if they could arbitrarily say they were not interested and grant to HEA? Atty. Rogers replied we are litigants in the courts, that should demonstrate our interest, but that we do not wish to fight on 2 fronts. MOTIONS Councilman Wagoner moved, seconded by Councilman Ackerly, for Administration to handle this matter as explained. Councilwoman Glick asked that a copy of the letter be sent to Council. Motion passed by unanimous consent. b. Regarding Cable TV. The Anchorage News had part of the story. Inlet Visions is being purchased by Alascom. Some of the information that has not been made available is the amounts paid and inter -relationships. He has the information if Council wishes. The deadline for remarks to PUC is Sept. 8 at 4s00 PM. Council opposed the franchise. The findings in favor of the purchase means it is not local. He is going to use budgeted monies for expertise in this. His recommendation is to go for an equitable franchise agreement with them. It may require a hearing before court. Our chances will be 50-50. Multiviaions figures out about $50,000 a year under a 5% franchise. They said revenues are not in the broadcasting, but are i.; the 2-way communications. What we do now will affect communications for a long time. Councilman Ackerly asked, how would the franchise fee on cable affect Oan's? (Satellite television) Atty. Rogers replied he is using air waves. We would be allowing use of right-of-way. He added, there was State legislation passed that extended de -regulation of cable TV, but there was a motion for reconsideratian and other amendments. KENAI CITY COUNCIL SEPT. 7, 1983 Page 9 MOTIONS Councilman Wagoner moved, seconded by Councilwoman Bailie, to direct Administration to write a letter of objection for the sale of Multivisione on the basis they are no longer local, which was one of the reasons for the award. Atty. Rogers asked t.o be added, other grounds he rosy find in reviewing the file. Council agreed to the request. VOTE (Passed)s Yes; Malston, Ackerly, Bailie, Glick, Measles, Wagoner Nos Wise f Councilwoman Glick asked if Council could receive a copy of the letter to PUC. Atty. Rogers replied yes, but it would be sent before Council could see it due to the Sept. 8 deadline. MOTIONS Councilman Wagoner moved, seconded by Councilman Wise, to spend budgeted monies for consulting fees to retain experts in drafting an agreement proposal with Inlet Visions. Councilman Measles asked if their rates were controlled by PUC. Atty. Rogers replied no, economic de -regulation means they have the blessings of PUC to come in and provide cable service but not regulate charges. Councilman Measles asked, there is nothing to keep them (if we keep a 5: fee) from adding 5% to the users? Atty. Rogers replied yes. Also, on the national level, there is a controversy whether they can include as a ssparate item on the bill. There is a possibility of fy� ture regulatioqq. vv%o�iov% Co.4S�.ck b� "A &*A .00+t, c. Regarding litigation fees. We have writs of garnishment on employees. We will have to go to court on some. Council may hear some complaints on lawsuits on leases filed and assessment liens. d. Councilwoman Glick asked about the status as co-defendant on the Miles Dean case. Is there any further action? Atty. Rogers replied, the City has responded and asked for a change of venue to Kenai. The deposition will be Sept. 14 through 16. H-3 Mayor Mayor Malston spoke. a. He nominated Mary Quesnel to the Library Commission. MOTIONS Councilwoman Glick moved, seconded by Councilman Measles, to accept the nomination of Mary Quesnel for the Library Comm. Motion passed by unanimous consent. b. Mayor Malston noted the nominations to the Mayor's Council on Museums in the packet, and add Clerk Whelan. MOTIONS Councilwoman Glick moved, seconded by Councilwoman Bailie, to concur with the suggested nominations for the Mayor's Council on Museums. 1 i A t KENAI CITY COUNCIL SEPT. 70 1983 Page 10 Notion passed by unanimous consent. c. Mayor Malston asked if anyone had suggestions to serve on commissions and committees, to notify him or Clerk Whelan. Councilman Wagoner suggested Dale Sandshl for Personnel Arbitration Board. d. Librarian OeForest asked if the Council could consider nominating Barbara Jean Mauseth, Homer Librarian for the posit 2 years, to the State Library Board. There is no one else on the Board with small library experience. Council agreed to the nomination, Administration will check on procedures for nomination. e. Clerk Whelan was asked to notify all those nominated and meet with Librarian OeForest regarding the State Library Board nomination. H-4 City Clerk Clerk Whelan spoke. a. In the packet was the list of proposed judges for the Oct. 4, 1983 election, as selected by the Borough. Also, the chairmen's salaries will be $8.00 per hour, the judges' salaries will be $7.50 per hour. MOTIONS Councilman Wise moved, seconded by Councilwoman Glick, to approve the judges and salaries as submitted. Motion passed by unanimous consent, with Mayor Malston abstaining. b, The new punch card machines for the election have arrived and are on display in the Chambers this date. They will be in City Hall for testing out. c. In the packet is the reservation form for Municipal League in November. Clerk Whelan asked that Council notify her if they wish to go and dates they will attend. d. Council packets. MOTIONS Councilman Wise moved, seconded by Councilwoman Bailie, to send complete packets to all candidates. Motion passed by unanimous consent. H-5 Finance Directcc None H-6 Planning 6 Zoning None H-7 Harbor Commission None H-8 Recreation Commission Recreation Director McGillivray said there will be an open house for Lhe gymnasium on Oct. 2. InopecLion will he i J - I '4 KENAI CITY COUNCIL SEPT. 7, 1983 Page 11 Sept. 9. He invited Council to drop by and see it. H-9 Library Commission None I. PERSONS PRESENT SCHEDULED TO BE HEARD s. Linda Swarner. There has been a dirt pile by her house since June 9. She has been calling City Hall and has had many answers. Today they said the area at 5th & Ash will be bulldozed down. The dirt is from the work being done near the Larry's Club area. Administration said it is too late to seed, City Manager Brighton had said it would be leveled and seeded. There has not been an inspector there when the dirt has been bulldozed. What will happen and what can we do to prevent this in the future? Nobody told the residents it was to be done. City Manager Brighton said it will be bulldozed and seeded with a barricade built. Regarding it being too late to seed, that was wrong. It would be a month based on the work to be done. It is not too late to seed at this location. It will be done. Mrs. Swarner suggested it be hauled out. They have put a lot in the gulley. That made it flat, then they dumped more dirt. Kids ride dirt bikes there. It was a fire hazard with fireworks, and will continue to be. She suggested if there is to be a lot of dirt moved, the property owners be notified beforehand. Why weren't they notified? Mr. Brighton replied negligence is one reason, the other is that the City has not notified people when activity is taking place on City property except in the municipal park in Woodland, or water do sewer being done in an area. Councilwoman Glick said she received a call from Mrs. Swarner. She called Mr. Brighton. The neighbors felt they were not getting good response from Administration. She and Mr. Brighton reviewed it, it looks bad. When we go into an area, we should notify the residents. Mr. Kornelis had said there was dirt there before. It concerns her we are dumping dirt in wetlands without a permit. Also, if we are going to create a park next to people, they should have an opportunity to respond. Whether we like it or not, we serve these people, we should speak to them politely. Public Works Director Kornelis said the contractor will knock the pile down and seed next week. Mrs. Swarner said that is not what they were told a month ago. They were told they would use that for top soil. Mr. Brighton explained, that was the original intent, but the material was not needed. Mrs. Swarner noted there was dirt left there by the street cleaner. Mr. Brighton said it has always been dumped there. Councilwoman Bailie asked, why is it dumped by a private neighborhood instead of the dump? Mr. Kornelis explained they will not take some materials. He added, as for wetlands, the type of plant life ascertains wetlands. There are large trees there. They have died because the culvert was dammed up some time ago. He did not think this is wetlands. Councilwoman Bailie said trucks dumping material in a private neighborhood is a nuisance. There is also a possibility of a child getting hurt. Also, if it is seeded, she hopes there will be no dumping there in the future. b. Jackie Russell. She has been working on the Eadie's Lane subdivision assesoment proposal. She wished to thank Council and Administration for their cooperation. KENAI CITY COUNCIL SEPT. 7, 1983 pane .7 c. Elaine Cessnun. The City is working for the realtors, but do not help the people. She has called Administration and he was ugly. He would not clean the streets. They have had a month do a half of dump trucks every day. Mr. Kornelis had said she was calling his men liars. He would not come out and look. ADJOURNMENT Meeting adjourned at 9s40 PM. !/Y It Janet Whelan City Clerk 'u PARTIAL VERBATIM Of SEPTEMBER 7, 1983 as requested by City Attorney Rogern City Attorney', Report a) 1 Mould call to Council's attention the 13th information item Is a memorandum to the Council from myself r"garding the HEA application for special assessments on subscribers for relocation costs. I relate two telephone conversations with Judy White of the APUC and what transpired as a result of the letter that was sent to them subsequent to being read to Council at the last meeting. The other communities did not protest even though one copy was hand delivered to the Soldotna mayor and I believe that other communities were elan contacted in sufficient time to make their views known. As a result of our being the only protest filed the APUC has seen fit to use their powers of what they call Intervention to make us an intervenor or party to that action. I say in here that I will be giving you their order; well I haven't _ - received the order yet. They did not deny but rather suspended action on the request by HEA. They can deny, they can suspend, or thev can grant on an interim refundable basis requests by a utility. The suspension (coughing) a trial date is then set as was done in this instance and I think I indicate in there what the trial date - 1 think it's October 10th. They have ordered „ HEA to respond by September 26 to our allegations or comments that are directed to APUC and also we t►ave the opportunity to either participate as a party in front of the ABC Board or not. If we participate because of our protest and having been made a party without really our eonuent, we will be asoesssed costs by the APUC of the proceeding or trial that they are going to hear. I'm a little bit perturbed by it. I thought that the function of the City in addressing the APUC was to make known the feelings of a representative government on behalf of the citizens of Kenai only to be found, to find that they are now suekinq us in as a party and rather than perform their function in protecting the public or conducting investigations no a board are now wanting to apparently sit in judgment of two litigants before them: one t being an involuntary litigant perhaps that being the City of Kenai. I don't know what the Council's desires are at this time. �- My feeling is that we have done our duty. If Council wants me to proceed well then I will prepare for that as I would for any msjor piece of litigation. It's going to take time for preparation. It's going to take witnesses. It's going to take expense on behalf of the City of Kenai that I don't think that we •a should be burdened with but I don't know at this point what the feelings of the Council are. Mayor Malstont Councilwoman Glicks i t. r, Councilwoman Glick: Well, question then if we don't continue or we don't participate or we don't prepare to defend our objection,, where does that leave us then? Attorney Rogers: It would be my suggestion that if we don't that we inform immediately the APUC that we do not wish to be a party to the action but do wish our desires to be known and we do urge the APUC to fulfill their function as an investigative body and conduct the hearing in the best interest of the public at large which they are charged to protect. Basically for me to compose a letter to that affect and send it up to them and not participate as a party but rather then keep abreast of the situation and hope that they will continue to fulfill their function rather than dictating that we (coughing) Councilwoman Glick; What my concern was if we just did what you have suggested would they perhaps arbitrarily say well we really weren't that interested and then they would allow HEA to have their request granted? Attorney Rogers: Well I think the .fact that we are litigating the same issue in effect in the courts and that can be pointed out in the letter, should certainly demonstrate that we are concerned with it but we perhaps did point out to them that we prefer not to fight it on two fronts you know fighting a real guard action with the APUC while fighting the major offensive battle in our defense of the matter in Superior Court here. I don't think that the letter should just kind of say we are folding our tent. I point out the fact that we are fighting the issue•in the court. We don't feel it necessary that we fight it on two fronts that they are charged with the duty of protecting the public and its incumbent upon them to proceed rather than sucking us into it. Councilwoman Glick: Are you going to use that terminology? Attorney Rogers: If I can get a copy of the tape I think that would get the point across. Councilman Wagoner: I would move that the administration handle this matter as explained. Ask for unanimous consent? Discussions Councilwoman Glick: I would also ask that the Council be given a copy of the letter as we were given a copy of 2 L • n the proposed letter that has already been sent junt so that we _._ can keep our own files up to date on the action. Attorney Rogers: Most certainly. Mayor Malston: unanimous consent has been called for. Any objection' So ordered. /x& Mary n Dore •r II •• 1 a y _ Y 1 oa� i ' 1 I r- , , ,.fs a ; -- PARTIAL VERBATIM OF SEPTEMBER 7, 1983 as requested by Yvonne Hakkinen City Attorney's Report b) Cable television - those of you who saw this morning's paper read part of the story. We are at a point now where the Inlet - visions Corporation, as a subsidiary of Hultivisions, is being purchased by Alascom. I have searched the files at the APUC, both the general docket file regarding the buy out, the file that for some period of time I didn't know existed until I asked certain questions and then found what is called the "company file". And some of the information has not been made available generally by the press has to do with the amounts being paid specific people and some of the inter -relationships between some of the people. I do have that information available and I would urge Council, it's too lengthy to get into here but (turned tape over) until 4 o'clock September 8, 1983 regarding views and reasons in favor of or in opposition to granting the authority of Alascom and the other utility that will take over from Alascom to acquire Nultivisions and therefore (inaudible) Inletvisions. It is my recollection that the Council opposed initially the franchise by the APUC to this group and the findings of former Justice Irwin were that 1) Union labor, I believe was to be used and that was a big plus, and the other, and as I recall the primary reason for granting Inletvisions the franchise was that It was "local". This purchase will mean that they are definitely not local - 93% of the stock is being acquired, there are some minority interests - Jack Rodericks among them who 1 don't believe as being acquired but, you know, there are some (inaudible) interesting, I don't know what Council's desires are so to that and also there is another question (coughing) we are now at a stage where I am going to ask to use budgeted monies. When I asked for consultation monies, one of the items was the cable tv situation. We are at a stage where we are in need of expertise. I have been in contact with both the Washington, O.C. people who represent the State of Alaska in telecommunications negotiations as well as others and I have a recommendation. I also have profiles on the people that I recommend and I think we have a good price break. I'm able to get a group of attorneys to work for $60 an hour and not charge us travel time to come here when they have to come. That's to say the least, quite a price. These people represent something in excess of 22 municipalities relevant to cable telecommunications this is about all they do across the United States. I also promised the fellow a caribou hunting trip to get that price. Anyway I would ask for Council's direction. We have some options, one is we can do nothing insofar as an agreement on the one extreme, the other is that we can sign the three page document that they say they got Anchorage to sign but Anchorage tells me that they have no real agreement with themo or we can attempt to go for the "gusto" so to speak 1 which would be the 5: under the new national legislation that I addressed in previous talks with the Council. Icy recommendation is to go for what I feel would he an equitahlp franr.hiRP egl•ee- ment with them which will, I'm sure, necessitate hearings before the APUC and perhaps the court. It's been pointed out to me it hasn't been done in Alaska it's done outside it has been done. Under our regulatory scheme 1 would characterize our chances as 50/50 using Multivisions/Inletvisions figures which I feel are optimistic applying to that an average subscription rate not a high nor low. I don't recall specifically what I used. It came up in the neighborhood of $50,000 a year under a 5: franchise for openers. The statement I believe was made by Mr. Uchitel, someone on behalf of them at the Chamber meeting which I did not attend but heard second hand that the revenues are not in the broadcast of what we normally think of when we have cable which is available now but the real revenues are to come in the next few years from (coughing) carrying telephone, cable and various other services so what we do now is going to affect the community for a long time, it's going to hopefully be reflected as having funds coming in to do with what we want to insofar as origination broadcasting and such as that through the City so I do need some direction if the Council wants to proceed along those lines but if they prefer not to get embroiled in it at all, of course that's their prerogative. Mayor Malstons Well, one motion that you might be asking for if Council wishes is for you to object to the buy out of Multi- visions/Inletvisions Attorney Rogerss That would be the first if it's Council's desire. Councilman Ackerlys I thought the date Tim, maybe 1 misunder- stood you, but 1 thought the date was already passed? Attorney Rogerss 1 believe it's the Sth - 4 o'clock tomorrow. Councilman Ackerlys Just another sideline question to this in approaching a franchise fee on cable how would this affect Dan with his low wattage Tel-Vu, I mean is that going to be part of this deal too? Attorney Rogerss Ok, he's using the air waves. We would be attempting to impose a franchise fee under our regulatory powers under the Alaska Statutes that allow us to impose reasonable regulations for the use of our right-of-ways. It is my under- standing that the Channel 179 low level broadcast band thing doesn't use our right-of-waye. Basically that's the hat upon which we, or the peg upon we hang our hat. Whether or not we can do it we don't know. As you know, there was legislation passed this last session that extended the economic deregulation of cable tv that passed without hardly any opposition. There was a motion for reconsideration by Representative Malone and some 2 r. offered amendments that did not get anywhere. There was also a prohibition against municipaiities regulating in those areas that they were being exempted from. Fortunately my reading of the statute leads me to the cvivelusion that that did not include a prohibition on the municipalities of regulating for use of the tight -of -ways so I think we have a shot at it. Of course the other side you heard them say already that we don't and they'll fight it because its precedent setting and they fear that other municipals will attempt to do it because it hasn't been done. Mayor Malstons in the State of Alaska Attorney Rogerss in the State of Alaska, right. Mayor Malstons Councilman Wagoners I move that we direct administration to write a letter objecting to the sale of Multivisions and base it on the basis that they are no longer local which was one of the reasons given for awarding the initial award in the first place, Seconds Councilwoman Glick. Mayor Malstons It's been moved and seconded. Further ' discussion. I _ Attorney Rogerss In reviewing the file tomorrow I would ask permission to include the other grounds that I find in the files that we have and could be stated and present to Council also so I can shotgun it so to speak. Mayor Malstons Further discussion. Councilwoman Clicks Again, Council would receive a copy of the letter? Attorney Rogerss Yes, because of the time frame I'm afraid that the letter will be in the hands of the APUC before you see it though. Councilwoman Clicks Right, well this is what I was going to ask, the second part was are you going to hand carry that or make sure It gets up there in time before that 4 o'clock deadline? Attorney Rogerss I'm always looking for an excuse to fly my plane. It will go desk to desk AAI probably with a messenger service picking it up. Mayor Malstons Madame Clerk call the roll please. Councilman Wagoners Ask for unanimous consent. Mayor Malstons Unanimous consent has been called for, any objection? Councilman Wide objects. Madame Clerk call the roll. Wises No; Malstons Yes; Aekerlys Yes; Baileys Yes; Massless Yes; Clicks Yes; Wagoners Yes 3 Attorney Rogerss I would like permissioo to expend the budgeted monies that I set aside that were budgeted for constult ing feet; to retain the services of experts in the assistance of drafting franchise agreements. j Mayor Malotons Council wish to make a motion? Councilman Wagoners So moved; Councilman Wises Second. It's been moved and seconded, Councilman Measles. Councilman Messless Are their rates controlled by APUC? Attorney Rogerss No. The rates that have been represented as those that are going to be charged, 1 do not believe are necessarily binding and they can charge (inaudible) The economic deregulation in effect means that they have the blessing of the APUC, Certificate of Need and Public Convenience to come into this community to provide cable service but are not subject to the APUC as far as what they charge and since the industry tends s ! to be monopolistic because of the capital expenditure required to set up the planning and equipments they in effect have this community and will be able to charge whatever free enterprise dictates that they can charge. Councilman Measleas So there is nothing to keep them if we succeed with the 5% franchise fee from adding 5: to all the residents in the City of Kenai that are using their services and the user would actually be the one to pay the franchise fee. Attorney Rogerss Under the present legislation I would say that that's correct. There is also another way 1 mean that is that under the national legislation which is senate bill 669 I believe, there is presently a controversy over whether or not they can include the franchise fee as a separate enumerated item on the Bill. It is also questionable whether or not the present legislation exempting them from economic regulation by the APUC will last beyond the next legislature. There have been some articles in the gaper saying that that is not an appropriate thing to do, there should be some regulation, so as it presently stands you are correct as the rumblings that I'm reading in the paper and hearing are going to the possibility of some sort of economic regulation coming in (background conversations) 0 legislation and a subsequent session, and especially in view of the activity that 1 discerned in Anchorage at the present moment, those people are also coming to the conclusion that perhaps they can now strike a better deal perhaps then they previously did and those people have been attending seminars in such places as Portland, Wisconsin, also (coughing) as well as others in Portland this last time and found out that we had a certain 'Q 4 .. ,ter i • .. _ -. -- ... _ � _ ...�.. _ � - __ - - _ -_ _ -_ �i� /lr/si/on♦'®/�efri y mutuality of concern so I do anticipate some people trying to push for some regulations. Mayor Malstons further discussion, Council? Madame Clerk mould you call the roll please? Wises yes; Halotons yes; Acklerlys Yes; Baileys Yes; Glicks Yes; Measless Yes; Wagoners Yes --- Nsty nn Bore �f <Ie I � r r 'c' o �J P o, .. i e,u _j f 0 Kenai City Council Sept. 7, 1983 Partial Translation H REPORTS H-2 City Attorney, Attorney Rogers Item b - Regarding Cable TV. The Anchorage News tied part of the story. Inlet Visions is being purchased by Alascom. Some of the Information that has not been made available is the amounts paid and inter -relationships. He has the information if Council wishes. The deadline for remarks to APUC is Sept. 8 at 4s00 PH. Council opposed the franchise. The findings in favor of the grant were the use of union labor and that it was local. This purchase means it is not local. He is going to use budgeted monies for expertise in this. His recommendation is to go for an equitable franchise agreement with them. It may require a hearing before court. Our chances will be 50-50. Multivisions figures out about $50,000 a year under a 5: franchise. They said revenues are not in the broadcasting, but are in the 2-way communications. What we do now will affect communications for a long time. Councilman Ackerly asked, how would the franchise fee on cable affect Dons? (Satellite television) Atty. Rogers replied he is using air waves. We would be allowing use of right-of-way. He added, there woo State legislation passed that extended de -regulation of cable TV, but there woo a motion for reconsideration and other amendments. NOTIONS Councilman Wagoner moved, seconded by Councilwomen Bailie, to direct Administration to write a letter of objection for the sale of Multivisions an the baoio they are no longer local, which was one of the reasons for the award. Atty. Rogers asked that it be added, other grounds he may find in reviewing the file. Council agreed to the request. VOTE (Possed)s Yeas Molston, Ackerly, Bailie, Glick, Measles, Wagoner Not Wise Councilwoman Glick asked if Council could receive a copy of the letter to PUC. Atty. Rogers replied yes, but it would be sent before Council could see it due to the Sept. 8 deadline. MOTION$ Councilman Wagoner moved, seconded by Councilman Wise, to spend budgeted monies for consulting fees to retain experts in drafting an agreement proposal with Inlet Visi^ns. Councilman Measles asked if their rates were controlled by PUC. Atty. Rogers replied no, economic de -regulation manna they have the blessings of PUC to come in and provide cable service but not regulate charges. Councilman Measles asked, there is nothing to keep them (if we keep a 5% fee) from adding 5% to the users? Atty. Rogers replied yes. Aloo, on the notional level, there is a controversy whether they can include as a separate item on the bill. There is possibility of future regulation. Jsnei �he18n City Clerk