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HomeMy WebLinkAbout1982-03-03 Council Minutesn M AMENDED AGENDA KENAI CITY COUNCIL - REGULAR MEETINU!! MARCH 3, 1982 - 7:00 PM PLEDGE OF ALLEGIANCE A. ROLL CALL 1. Agenda Approval B. PERSONS PRESENT SCHEDULED TO BE HEARD C. PUBLIC HEARINGS 1. Resolution 82-23 - Awarding Contract for Drainage Study - Quadra Engineering D. MINUTES 1. Regular Meeting, Feb. 17, 1982 2. Verbatim Translation, Jan. 20, 1982 E. CORRESPONDENCE 1. Kenai Utility, to Kenai Peninsula Borougi, - Utility Location Problems in Public Rights of way 2. Marla Adkins, Cordova - Latouche Island F. OLD BUSINESS 1. Carmen Gintoli - Library Renovation 2. Purchase of Coyle's Property 3. Lease of Stoehner Property 4. Proposals from Appraisers for Redetermination of Airport Lands G. NEW BUSINESS 1. Bills to be Paid, Bills to be Ratified 2. Requisitions Exceeding $1,000 3. Ordinance 757-82 - Increasing Rev/Appns - Prep. of Plans & Specs - Parking Lots, Airport Terminal - $30,500 4. Ordinance 758-82 - Increasing Rev/Appns - Preliminary Engrg. & Prep. - Float Plane Basin - $5,300 S. Ordinance 759-82 - Increasing Rev/Appns - Drainage Study - $87,338 6. Settlement Offer - Rate Renegotiation on Leases to Southcentral Air, Inc. & Dave Diamond 7. Proposal for Kenai Boat Ramp H. REPORTS 1. City Manager 2. City Attorney 3. Mayor 4. City Clerk 5. Finance Director 6. Planning & Zoning 7. Harbor Commission I. PERSONS PRESENT NOT SCHEDULED TO BE HEARD ADJOURNMENT AC WDA KENAI CITY COUNCIL - REGULAR MEETING MARCH 3, 1982 - 7:00 PM PLECGE OF ALLEGIANCE A. ROLL CALL 1. Agenda Approval B. PERSONS PRESENT SCHEDULED TO BE HEARD 1. Kenai Mall Merchants - Mall .Parking Lot C. PUBLIC HEARINGS 1. Resolution 82-23 - Awarding Contract for Drainage Study - Quadra Engineering D. MINUTES 1. Regular Meeting, Feb. 17, 1982 2. Verbatim Translation, Jan. 20, 1982 E. CORRESPONDENCE 1. Kenai Utility, to Kenai Peninsula Borough - Utility Location Problems in Public Rights of way 2. Marla Adkins, Cordova - Latouche Island F. OLD BUSINESS 1. Carmen Giuiuli - Library Renovation 2. Purchase of Coyle's Property 3. Lease of Stoehner Property G. NEW BUSINESS 1. Bills to be Paid, Bills to be Ratified 2. Requisitions Exceeding $1,000 3. Ordinance 757-82 - Increasing Rev/Appns - Prep. of Plans & Specs - Parking Lots, Airport Terminal - $30,500 4. Ordinance 758-82 - Increasing Rev/Appns - Preliminary Engrg. & Prep. - Float Plane Basin - $5,300 S. Ordinance 759-82 - Increasing Rev/Appns - Drainage Study - $87,338 6. Settlement Offer - Rate Renegotiation on Leases to Southcentral Air, Inc. & Dave Diamond 7. Proposal for Kenai Boat Ramp H. REPORTS 1. City Manager 2. City Attorney 3. Mayor 4. City Clerk 5. Finance Director 6. Planning & Zoning 7. Harbor Commission I. PERSONS PRESENT NOT SCHEDULED TO BE HEARD ADJOURNMENT KENAI CITY COUNCIL, REGULAR MEETING, MINUTES MARCH 3, 1982, 7:00 PM KENAI CITY ADMINISTRATION BUILDING E MAYOR VINCENT O'REILLY PRESIDING PLEDGE, OF ALLEGIANCE A. ROLL CALL Present: Tom Wagoner, John Wise, Vincent O'Reilly, Betty Glick, Ron Malston, Ray Measles Absent: Dick Mueller (absent) A-1 Agenda Approval I i 1. Mayor O'Reilly noted the material for items F-3 and F-4 have been distributed this date. (3-3-82) 2. Mayor O'Reilly asked that $4,550 to Jerry Hines & Assoc. for 7 employees to attend the Dale Carnegie course be added with item G-1, Bills 1K to be raid, Bills to be Ratified B. PERSONS PRESENT SCHEDULED TO BE HEARD None C. PUBLIC HEARINGS C-1 Resolution 82-23 - Awarding Contract for Drainage Study - Quadra Engineering Finance Director Brown explained the appropriating ordinance is item G-5. .•ais means the hearing comes up before the appropriating ordinance. He requested this item be delayed till after item G-5. j Council agreed to the request. D. MINUTES D-1 Regular Meeting, Feb. 17, 1982 I� Clerk Whelan said Atty. Delahay had reviewed the minutes with her and asked that page 1, item B-1, line 5, the words "clam processing and" be added at the beginning of the sentence, as this is what was being discussed with the repair shop. Clerk Whelan asked that page 11, VOTE listed in the middle of the page, line 3, the last word should be "no" Instead of "yes." Clerk Whelan said that page 13, paragraph 1, line nine, the abbreviation "MEI" should be "MAI." Council agreed to the changes and corrections. D-2 Verbatim Translation, Jan. 20, 1982 No action was taken. E. CORRESPONDENCE E-1 Kenai Utility, to Kenai Peninsula Borough - Utility Location ProbleAss in Public Rights of Way No action was taken. E-2 Marla Adkins, Cordova - Latouche island No action was taken. F. OLD BUSINESS Y' 3 — C.�..-1ti Q 1.fA-11� t. { cti n �w <, k+`e ,. 1/1 ►/1 (1A/ (/J} -C o J t •G VFW t ,I a KENAI CITY COUNCIL MARCH 3, 1982 Page 2 F-1 Carmen Gintoli - Library Renovation Mr. Gintoli said he met with the Library Committee and City Manager Brighton and discussed the changes. He has reduced the project by 2000 aq. ft. and moved the boiler room. The sq. footage has been reduced from 9,180 to 7,194. The cost is about $979,000. The Library Board has concurred with the changes. The contingency costs are not in there, Council can assume 10%. Councilman wagoner said they were talking about deleting the stack area and not doubling the size of the library. This doubles the size. He also thought they would have trouble with $110 sq. ft. He asked Mr. Gintoli when he would start. Mr. Gintoli replied it would depend on when the specs come through. The earliest would be this Fall. It is an advantage that it is under $1 Million. There are 3 local con- tractors that can bid it. Councilwoman Glick explained as an add -on it does not have to go to a vote of the people. The limit is $1 Million for new construction, $5 Million for add-ons. MOTIONS Councilwoman Glick moved, seconded by Councilman Measles, to approve the schematics as submitted for the Library renovation and this is in concurrence with the Library Board. Motion passed, with Councilman Malston voting no. F-2 Purchase of Coyle's Property Mayor O'Reilly noted the Harbor Commission and Planning & zoning Commission had recommended purchase for $184,275. MOTION s Councilman wagoner moved, seconded by Councilman Malston, to direct the City Manager to make an offer of $184,275 that is being discussed. Councilman wagoner said he was at the Harbor Commission meeting when this was discussed. It was their opinion this was the appraisal value when the City had the property appraised. Mayor O'Reilly asked if there was sufficient funding. Councilman wagoner replied he didn't know. He thought there was $150,000 for purchase of the property, $100#000 was used for Mr. Roper's property. Finance Director Brown noted there would be some investigation by Administration to see if this would lie within the bounds of a small boat harbor. Councilman Malston said he wondered if this is the time. We don't know if we will build a harbor, the sedimentation study is not complete, and we are trying to get out of the land business. Vice Mayor Glick took the chair. Mayor O'Reilly said he agreed with Councilman Malston. We are taking a step into the unknown, we do not know a. The sedimentation study b. What type of harbor But he is of the conviction that there will be a good reason for a harbor facility. It would be to the advantage of the City to have the acres under pro- prietary control now. I KENAI CITY COU14CIL MARCH 3, 1982 Page 3 Mayor O'Reilly took the chair. Councilman Wagoner said he has mixed emotions because of the drainage study, but he made the motion to start a dialog with the Coyles. Councilwoman Glick said at the last work session City Manager Brighton had said he would recommend against the purchase till 3 items were settleds a. The sedimentation study was complete. b. Feasibility of a harbor. c. Would the City be willing to take over the f operations and maintenance. i VOTE., Motion failed, with Councilman Wagoner, Mayor O'Reilly voting yes; Councilmen wise, Malston, Measles, council- woman Glick voting no. F-3 Lease of Stoehner Property John Stoehner spoke. He was not addressing Lot 1, Block 3. He assumed that was a dead issue. He wished to discuss subdividing and plotting the property across the street between Arctic Aviation and B&C Supply, and is asking the City to have the property platted and surveyed. Councilwoman Glick noted P&Z gave conceptual approval to that area, but it does have to be surveyed and platted. MOTIONS Councilwoman Glick moved, seconded by Councilman Measles, to direct Administration to proceed with surveying and platting of the area in question without further description. Mayor O'Reilly asked Mr. Stoehner, the question of odors has been raised. Mr. Stoehner replied there "-- will be no odors around the plant and effluents will --_ be disposed of in the sanitary land fill a minimum of once a days at the height of the season, 2 times a day in bags when disposed of. They are completely enclosed. Mayor O'Reilly asked, if this does not fit into the zoning class of light industrial, would ";. he consider gong to the port area. Mr. Stoehner replied no, because of the cost of obtaining the �- location. Councilwoman Glick said it should be pointed out if we go through the surveying process, it will �{ not meet their time frame. It will have to be approved by the City & Borough Planning & Zoning. They are looking at 2 or 3 months. Mr. Stoehner replied this will not be a problem if they have concensus of Council and can proceed with certification and licensing. Mayor O'Reilly asked if they had any complaints from neighbors at their present operation. Mr. Stoehner replied no. Planning & Zoning Commission Chairman Bryson said at the time of the last P&Z meeting, the lots the Stoehners have under lease were approved subject to approval by FAA and the lots across the street were approved as concept lease application. The primary item addressed was the lease itself. Zoning was not addressed. Looking at zoning, if the operation creates f smells, it would not conform to zoning. There is no 1 heavy industrial in that area. He would like to see ,." 1 it back at P&Z for any the additional problems discussed. KENAI CITY COUNCIL MARCH 3, 1982 Page 4 VOTES Motion passed unanimously by roll call vote. MOTION: Councilman Measles moved, seconded by Councilman Wagoner, to have another meeting with FAA, City Administration and the Stoehners on Lot 1, Block 3. Motion passed, with Councilman Wise voting no. F-4 Proposals from Appraisers for Redetermination of Airport Lands MOTIONS Councilwoman Glick moved, seconded by Councilman Measles, to award the appraisal of the 20 properties to Frykholm Appraisals for $1200 as outlined in his letter. Motion passed unanimously by roll call vote. G. NEW BUSINESS 0-1 Bills to be Paid, Bills to be Ratified MOTIONS Councilman Wagoner moved, seconded by Councilwoman Glick, to pay the bills with the addition of Jerry Hines bill for $4,550 for the Dale Carnegie course. Councilwoman Glick asked if the Dale Carnegie bill could be considered separately. Council agreed to the action. Motion passed unanimously by roll call vote. 0-1 Jerry Hines, Dale Carnegie: course, $4,550 MOTION: Councilwoman Glick moved, seconded by Councilman Measles, to approve the bill as submitted. Motion passed, with Councilmen Wise, Malston, Measles, Mayor O'Reilly voting yes: Councilman Wagoner, Councilwoman Glick voting no. C-2 Requisitions Exceeding $1,000 MOTIONs Councilman Measles moved, seconded by Councilwoman Glick, to approve the requisitions. Motion passed unanimously by roil call vote. G-3 Ordinance 757-82 - Increasing Rev/Appno - Prep. of Plans 6 Specs - Parking Lots, Airport Terminal - 030,500 7 V_ 1 KENAI CITY COUNCIL MARCH 3, 1902 Page 5 Councilwoman Glick said this an item of discussion at the Airport Committee meeting. The Committee decided not to go with this appropriation at this time. She added Public Works Director Kornalis reported on the parking lot to the south of the terminal and the amount of available funds and that we may have to appropriate additional monies. Council took no action on this item. G-4 Ordinance 758-82 - Increasing Rev/Appns - Preliminary Engrg. & Prep. - ploat Plane Basin - $5,300 MOTIONS Councilman Wagoner moved, seconded by Councilman Malston, to introduce the ordinance. Councilman Measles said this was also discussed at the Airport Committee meeting and the same decision was made as the last ordinance. Councilwoman Glick added there was trouble finding cost of this item. This is prioritized at $4. Motion passed, with Councilmen wagoner, wise, Malston, Mayor O'Reilly voting yess Councilwoman Glick, Councilman Measles voting no. G-5 Ordinance 759-82 - Increasing Rev/Appns - Drainage Study - $87,338 MOTIONs Councilman Measles moved, seconded by Councilwoman Glick, to introduce the ordinance. Motion passed unanimously by roll call vote. MOTION, 2nd Readings Councilwoman Glick moved, seconded by Councilman Malston, to have the 2nd reading of the ordinance this date. (3-3-82) Councilman Wagoner asked what was the urgency. Engineer LaShot replied they have the proposals and all they are waiting for is award of the contract. There had been some urgency expressed. Councilwoman Glick said it was discussed at Public Works Committee meeting. They would like to award the contract and tbay have the funds available. Councilman Wagoner said he didn't believe in the process of committee meetings. When these things come up, they should be brought to the attention of all the Council. He also £olt he should have had a priority list from Airport Manager Swalley in the packet. He objected to the 2nd hearing. Mayor O'Reilly noted there must be unanimous consent for a second hearing. Council- man Measles asked Engineer LaShot if there was a time limit on the proposals. Mr. LaShot replied none was stated, he would talk to the engineers involved, C-1 Resolution 82-23 - Awarding Contract for Drainage Study - Quadra Engineering KENAI CITY COUNCIL MARCH 3, 1982 Page 6 Mayor O'Reilly said that since the 2nd reading was postponed to the next Council meeting, this would also have to be postponed. G-6 Settlement Offer - Rate Renegotiation on Leases to Southcentral Air; Inc. & Dave Diamond Atty. Delahay reviewed his memo in the packet and the letter from Atty. Baldwin. His recommendation was that Council not accept the offer but make a counter-offer. The cap would then be in the lease. His objection to the other lease is it is not pre- sently being used for airport related uses. MOTIONS Councilman Measles moved, seconded by Councilwoman Glick, that the City make a counter-offer regarding this lease to amend the lease on Lot 3, Block 1, to be effective retroactive to July 1, 1981, change the terms of the lease to 55 years, change the description to include Lot 1, Block 2, change the entire body of the lease to one currently being used, and include the 150% cap in the lease terms; and regarding Lot 4, Block 5, use the present City appraisal with 506 cap rate added to the lease. MOTION, Amendments Councilman Measles moved, with consent of second, to add,"not add 150% cap provision to the new lease that would be used for that lot." Motion passed, with Councilman Wise voting no. G-7 Proposal for Kenai Boat Ramp Councilwoman Glick asked that this item be postponed till City Manager Brighton was in attendance. She had some questionss a. Regarding item A, we do have a survey plat that would establish property corners. She questioned if we would have to spend money to establish this. b. She would question spending public monies on private property. Co City Manager Brighton discussed going to Petersburg regarding their camp and she thought Petersburg had problems with showers, etc. and their procedures being used. Councilman Wagoner said he thought the showers were for the fishermen, not the cannery workers. Council agreed to postpone the item till the March 17, 1982 meeting. H. REPORTS H-1 City Manager None H-2 City Attorney Atty. Delahay spoke. r_ ' KENAI CITY COUNCIL MARCH 3, 1982 Page 7 1. Regarding the dewatered sludge to the Scwer Treatment Plant. He believes it is the res- ponsibility of the Borough to dispose of those wastes. Under State law, the Borough has pro- vided for disposal outside of cities. The City has turned over the powers to the Borough. Under Borough ordinance, the Borough should accept solid waste for disposal in the sanitary land fill, Public Works Director Kornelis has said the solids are like coffee grounds and could be used for fertilizer. Unless the Borough consents to accept the sludge, the City has a good case in court action, Mayor O'Reilly asked, was the Borough receptive to this? Atty. Delahay replied no, he spoke to the Borough Attorney and he said they thought we should take the septic tank dumpings from outside the City. The plant was designed only to accept wastes from inside the City, it was proposed to be ' designed for acceptance by the Borough and was declined. Within a few weeks we are going to have to dispose of those wastes we are collecting. Engineer LaShot said he had been told this date (3-3-82) by DEC to stop dumping now. Meyer O'Reilly asked if the response from the Borough had been in writing. Atty. Delahay replied it was verbal. Councilman wise said, sue. Councilwoman Glick asked, if we go at Atty. Delahay's advise, could we not just go out and start dumping? Atty. Delahay replied, this is a special dump and would require special handling. it could be possible but a better course would be to get a preliminary injunction. MOTION s - „- Councilman Wagoner moved, seconded by Cowicilwoman Glick, to sue and ask for a preliminary injunction against them stopping us from disposing of sludge in the sanitary land fill. Motion passed unaninously by roll call vote. 2. Atty. Delahay has discussed with Clerk Whelan the problems with long motions and amendments made by Council. Even when a motion or amend- ment fails, it needs proper wording for the minutes. He requested Council put them in writing and give a copy to the Clerk. If it :.- is not written out, a Councilperson could ask for a recess to write it out before making the motion. ' H-3 Mayor Mayor O'Reilly spoke. 1. On March 8, 1982 there will be a meeting at the Borough regarding the present service districts, newly formed districts and those to be formed. This will be regarding mRdical and fire. Does the Council have a position on this? Councilman Wagoner said he didn't think there was any action necessary at this time. 'l Council agreed to take no action. KENAI CITY COUNCIL MARCH 3, 1982 Page 8 2. Several Ad Hoc committees have been formed and he asked Council to start having meetings or diaband and start in anotnex foLm. 3. There will be a Coastal Policy Council meeting in Juneau Merch 25, 1982. Mayor O'Reilly will be attending and will try to do some City business at the same time. He referred to the memo to Council and the discussion with Rep. O'Connell. He noted if anyone else would like to go to Juneau, it would help. H-4 City Clerk None H-5 Finance Director None H-6 Planning z Zoning None H-7 Harbor Commission Councilman Wagoner said they had a. meeting with the - Tama representative. There will be a recommendation submitted in the near future from the Harbor Commission regarding the sedimentation study. I. PERSONS PRESENT NOT SCHEDULED TO BE HEARD - 1. Councilwoman Glick said at the Public Works 4 i Committee meeting, they discussed the possibility ! of forming assessment districts for water and sewer, particularly Candlelight Dr. They suggested a petition be made up. ` i v MOTIONs Councilwoman Glick moved, seconded by Councilman ; Measles, to recommend that a petition be drawn up for presentation to the property owners of Candle- light Drive with the following informations r i Engineering of water and sewer is currently being —= completed for this area after several requests by property owners to install the water and sewer. -= It is the intent of the Kenai City Council to install the water and sewer at the estimated cost of $300,000. --` It is the intent of Council to establish an assess- ment district for this area. The cost of the assess- ments not to exceed 20% of estimated cost. - Motion passed, with Councilman Wagoner voting no. Finance Director Brown noted there may be enough in bonds, would Council wish to use capital improvement money? Councilwoman Glick replied the general dis- cussion was that there were funds available we could k-- 4( loan to water and sewer. We did not wish to go to bond monies at this time. 2. Jackie Russell, Property World spoke. she P Y � P asked if the no vote was the final decision on T KENAI CITY COUNCIL MARCH 3, 1982 Page 9 the sale of the Coyle property, and are the Coyles free to go to the private sector? Atty. Delahay replied, without a counter offer, the Coyles are still bound by the 30 day offer. 3. Councilman Measles said he would like to add under REPORTS on the agenda, the Recreation Commission. Council agreed to the request. ADJOURNMENTS Meeting adjourned at 800 PM. - Y J net Whelan, C ty clerk i3 'g o, i F; I i 1.� - 1 {lye 1c Jo j I 11 J CI� 7 q r l n el KENAI CITY COUNCIL Regular Heeeting, 3-3-82 Verbatim Translation G-6 Settlement Offer - !fate Renegotiation on Leases to SouthCentral Air, Inc. and Dave Diamond Attorney Delahay - I believe my memo and Attorney Baldwin's i letter that were in the packet (inaudible) this situation fairly clear. I know it indicates my recommendation that the Council + not accept the offer of settlement and that Council make a counter-offer insofar as settlement of the lease of Lot 31 Block 1, is concerned and combining it, with Lot 1, Block 2, but that they not accept the addition of the cap provision to the lease to Mr. Diamond on Lot 4, Block 5 and that they adhere to the figures -- the late figures -- produced by the appraiser for that property, Mayor O'Reilly - That's the last property -- the last (inaudible) Attorney Delahay - Yes, that's the one is fronting on Willow Street. The two that are fronting on the airport proper and the runway. I think Mr, Baldwin's letter is correct, that they could operate as one lease, It would save having thew come up in two successive years for renegotiation. They could be handled much better. They would also give a chance for the lessee to extend the lease on Lot 3, Block 1, which is due to expire in 1985 and on which SouthCentral has put considerable expense in building and I'm sure that the Council is convinced that SouthCentral has a very good operation at this airport and it's helpful to the City, At the same time it would give the City the increase in rate of -- under the 1500 that the Council has approved for all airport related properties on the airport -- all properties used for airport related purposes -- on the airport. It would put that clause into the leases which would mean that the City would be bound during the term of the leases to that in case the City changes its mind about extending that cap rate where leases did not contain the rate, My objection to the other lease is based on the fact that, while it is on the airport as indicated, it is f not presently being used for airport related purposes. Mayor O'Reilly - All right, does Council want to try again to put 1 that in the form of a motion? I think essentially what we're saying would be a motion embracing the four items that are included in page 3 of the memorandum from the City Attorney and including his recommendation that -- i can get the lot number -- what's the lot number, on the lower? Attorney Delahay - Lot 4, Block 5 Mayor O'Reilly - . . . and that Lot 4, Block 5 not be included in those terms and that the appraisal as established by the City be used. Attorney Delahay - That's with the cap rate that was offered at the time, because that was before the Council changed its policy to extend the cap only to airport related uses on (inaudible) but not to put that in the lease. Mayor O'Reilly - Okay. Essentially, what he's saying, Councilman Measles, is, as specified in those four terns on Page 3 covering two lots that on the one lot that's on Willow Street, use the appraisal as arrived at by the City but not to have a 150% cap on it. If someone cares to make that in a formal motion, we can get it in front of us. Councilman Measles? Councilman Measles - I would move that the City make a counter-offer regarding this lease to amend the lease on Lot 3, Block 1, to be effective retroactive to July 11 19811 change the terms of the lease to 55 years, change the description to include Lot 1, Block 21 change the entire body of the lease to the form currently being usedf include the 1500 cap in the lease terms. And in regards to Lot 4, Block 5, to use the City appraisal -- present City appraisal -- with the 50$ cap rate added to the lease. Councilwoman Glick - Second. Attorney Delahay - It is added to -- used in arriving at that rate. It was when the offer was made. But not add the 1500 to the lease. Mayor O'Reilly - Not add the 150% cap -- Attorney Delahay - cap 2 :fl Mayor O'Reilly - Provision to the new leace that would be used for that lot. Councilman measles (inaudible) Provision is not already in that lease? Attorney Delahay - That's right, it's not in there at the terasent time. Because it is not being used for airport related purposes, I don't believe it should be (inaudible) Councilman measles - Okay. Mayor O'Reilly - All right. (Inaudible - two men spoke at once) Mayor O'Reilly - Councilman Measles, Councilman Measles - Take out the 150% cap. Mayor ©'Reilly - All right. Your motion is to recommend to Administration that this be the counter-offer to the parties involved? Councilman Measles - Yes. Mayor O'Reilly - All right. Discussion on the motion, Council. Clerk please call the roll. Motion passed, with Councilman Wise voting no. =� Janet Whelan, City Clerk - March 9, 1982 p f i i i f 3