Loading...
HomeMy WebLinkAbout1982-07-07 Council Minutesj.. c:. AGENDA KENAI CITY COUNCIL - REGULAR MEETING JULY 7, 1982 - 7:00 PM PLEDGE OF ALLEGIANCE A. ROLL CALL 1. Agenda Approval B. Persons Present Scheduled to be Heard 1. Tim Wisniewski - Beautification Committee 2. Nick Longhitano - Street Problem, woodland Subdivision - C. PUBLIC HEARINGS 1. Ordinance 779-82 - Charter Amendment Regarding Use of Monies for Sale of City Lands 2. Ordinance 783-82 - Increasing Rev/Appns - Library Grant - $4,675 3. Ordinance 785-82 - Amending KMC - Appointment of Acting City Clerk 4. Resolution 82-62 - Designating Acting City Clerk 5. Resolution 82-63 - Transfer of Funds - Senior Citizen Center, Additional Plans & Specs - $2,000 6. Resolution 82-64 - Transfer of Funds - Repair & Maintenance of Russian Orthodox Church Parish House - $2,000 7. Resolution 82-65 - Transfer of Funds - Main St. Loop & Barnacle - Change Order #4 - $1,120 a. Change Order #4 - $1,120 S. Resolution 82-66 - Award of Contract - Water & Sewer Improvement Engineering - TransAlaska Engineering - $125,000 9. Resolution 82-67 - Transfer of Funds - Water & Sewer Improvement Engineering - $1,000 10. Transfer of Liquor License - Gate 54 D. MINUTES 1. Regular Meeting, June 16, 1982 E. CORRESPONDENCE 1. Dollar Rent-A-Car - Counter Space at Airport 2. Alaska Dept. of Natural Resources - To Dow/Shell Consortium - Status Report 3. Alaska Office of the Governor - Regarding SS 180, Title 29 Changes 4. Wien Air Alaska - Suspension of winter Jet Service 5. Thompson Park Residents - Installation of Sewer Lines I F. OLD BUSINESS G. NEW BUSINESS 1. Bills to be Paid, Bills to be Ratified 2. Requisitions Exceeding $1,000 3. Ordinance 786-82 - Amending KMC - Establishing Acting City Manager 4. Ordinance 787-82 - Amending KMC - Exempting Subdivisions Prepared by City and Posting Security other than Surety Bond or Check S. Ordinance 788-82 - Increasing Rev/Appns - Chore i Helper, Film Rental & Supplies for Senior Citizen Center - $5,365 6. Ordinance 789-82 - Amending KMC - Limiting Employment of Councilmembers by the City 7. Ordinance 790-82 - Increasing Rev/Appns - Senior Citizen Project Grant - $86,349 --- a. Public Hearing 8. Discussion - Change Order from McLane & Assoc. - Overtime, Spruce, 1st, Birch, 4th, 2nd, 3rd, Forest Dr, and Gill H. REPORTS 1- City Manager 2. City Attorney 3. Mayor 4. City Clerk _-_ S. Finance Director 6. Planning & Zoning �? 7. Harbor Commission L 8. Recreation Commission I. PERSONS PRESENT NOT SCHEDULED TO BE HEARD - 9 ADJOURNMENT / KENAI CITY COUNCL - REGULAR MEETING, MINUTES JULY 7, 1982 - 7:00 PM KENAI CITY ADMINISTRATION BUILDING MAYOR VINCENT O'REILLY PRESIDING PLEDGE OF ALLEGIANCE A. ROLL CALL Presents Betty Glick, Ron Malston, Ray Measles, Dick Mueller, Tom Wagoner, John Wise, Vincent O'Reilly Absents None AGENDA APPROVAL 1. Mayor O'Reilly asked that item G-7, Ordinance 790-82, be postponed till next meeting (7-21-82) Council approved the change. B. PERSONS PRESENT SCHEDULED TO BE HEARD B-1 Tim Wisniewski - Beautification Committee Mr. Wisniewski noted he was requesting a Commission, not a Committee. A few citizens of the area got to- gether and felt a Commission was necessary and there are some things that are not being taken care of. Purposes of the Commission are: 1. To establish an on -going plan to enhance the beauty of the City. 2. The Commission will bring violators to the City for enforcement and adopt a new Ordinance and encourage local enforcement of local litter laws. 3. Merchants in the City and the Municipal Govt. provide litter barrels. 4. Saturate the area with anti -litter signs. 5. Organize a recycling program and educate our youth. 6. Make available trash liners and litter bags for public use. They are asking the Mayor to appoint a Commission. Councilman Mueller noted the Ordinance would have to be brought before Council. Also, some times anti - litter signs can be more problem than the litter. Councilman Malston said this is a worthwhile effort, an organized plan has an effect on people's attitudes. Councilman Wagoner noted it is not as easy as it seems to work on violations within levels of govern- ment. Mr. Wisniewski conceded all who have tried have run into red tape, but we should start some place. Mayor O'Reilly asked, who empties the barrels placed by the Lions? Public Works Director Kornelis replied, there is a schedule, he will check. Mayor O'Reilly explained to Mr. Wisniewski, ordinarily, these projects start as Committees, then can become Commissions if warranted. Councilwoman Glick noted they will have to go through Planning & Zoning and Jointly recommend to Council. Councilman Wagoner suggested Mayor O'Reilly and Mr. Wisniewski meet together. Mayor O'Reilly asked Atty. Delahay to set up a Resolution. Council agreed to the suggestions. Mr. Wisniewski added, they will not be happy with just cleaning up, they would like a budget. B-2 ;Vick. Longhitano - Street Problem, Woodland Subdivision I c KENAI CITY COUNCIL JULY 7, 1982 Page 2 Mayor O'Reilly noted Mr. Longhitano was not present, the item will be postponed till his arrival. C . PUBLIC, HEARINGS C-1 Ordinance 779-82 - Charter Amendment Regarding Use Of Monies for Sale of City Lands Mayor O'Reilly noted a substitute ordinance had been submitted this date (7-7-82) by Atty. Delahay. Atty. Delahay explained there had been complaints that the Charter amendment was so long that voters would vote it down. He has shortened the item to be voted on, but the complete law will still have to be advert;sed. MOTIONS Councilwoman Glick moved, seconded by Councilman Malston, to adopt the ordinance. MOTION, Amendments Councilwoman Glick moved, seconded by Councilman Wagoner, to amend the ordinance by adopting Substi- tute Ordinance 779-82. MOTION, Amendment to Amendments Councilman Wagoner moved, seconded by Councilwoman Glick, to amend the amended ordinance by adding, Section 2, Paragraph starting "Section 5-11," line 3, after the words "non -trust lands," the words "or any other funds received by the City of Kenai for capital improvements," be added. In addition, on Page 3, Line 2 of the proposition, the words "or any other funds received by the City of Kenai for capital improvements," be added after the words "non -trust lands." In addition, on page 3, line 6 of the proposition, the amount be changed to $500,000. Councilman Wise suggested a new Section 5-12 be created to deal with the amendments. He explained the proceeds of sales is one subject and any other revenues is a different subject. Councilman Wagoner said if we are looking at one type of funds we should look at all types of funds. Councilman Measles said we already have to go the voters for funds over $1 Million. If we receive a grant and the voters vote it down, there is a problem and if they vote it in and don't get the funds there is a problem. Councilman Wagoner said he didn't think the State had any $1 Million stipulation. The Governor had stated anything that comes to him over $1 Million, without the vote of the people, it will be vetoed. City Manager Brighton explained, on the $2 Million airport project, we were able to go ahead without voter approval because it is an addition, but a now project requires a vote. Public Works Director Kornelis added, an upgrade or renovation over $5 Million requires a vote. Councilman Wagoner said that is part of the funding bill that has not been passed. City Manager Brighton said Council now has the prerogative to do what this amendment pro- poses, but it does one thing more. It precludes any Council of using monies for any other project than capital improvement. To project what future 411 i } KENAI CITY COUNCIL JULY 7, 1982 Page 3 Councils can do may be a mistake. It is difficult to project what circumstances any other Council may be have. He added, ;ri.+:h L%C ATM.-indment, i t will affect State Reven> ari.ng, Mi;• - _al `._ and any other funds coming in. Councilwoman Glick explained originally this amount was $500,000. To not create additional hardships we raised it to $750,000. Also, this could be used to finance assessment districts. There are provisions that will be made for setting up assessment districts that people with that problem could go through. People could also go to DEC or EPA for funding which would preclude our using full funds. Also, monies from the sale of airport lands has to go to airport related projects. The income could be distributed -- over a period of years. Atty. Delahay explained the amendment as drafted applies only to monies for sale of non -trust lands. If we got DEC or other monies, it would not apply. He asked, if the Council passes the amendment, he would like to postpone the public I hearing. MOTION, Withdrawal of Amendment to Amendment: Councilman Wagoner, with consent of second, withdrew his amendment to amendment. Councilman Wagoner said he felt we are hamstringing other Councils. Councilman Mueller noted if future -_ - Co»ncils do not act responsibly, the public will call back the Council. Councilman wise explained what we ,- are talking about is proceeds from sale of lands. It u_ is a one-time event. He is fearful of Council using one time funds to operate the City. We have many _ acres that can be sold. If we don't protect them, we will fall into the trap of using it willy-nilly. in last year's budget, we appropriated another $1/2 Million. A significant amount came out of fund balance because it was available. The ordinance does ' Yf tie the hands of the Council, but we have a responsi- bility to do something. This will provide funds for Local Improvement Districts. It can be used to match local shares. Councilman Wagoner said we aren't giving ourselves more power, we already have that power. Also, looking at lands and value coming in, if we took that money and found it necessary to use for operating costs or capital improvement items that had maintenance, he would much rather have a 2 mill decrease for 2 or 3 —Q� years than fund the capital item which is going to give him a 1 or 2 mill increase for the next 20 years. VOTE, Amendment: (' M- Motion passed unanimously by roll call vote. "- There was no public comment on the ordinance. Councilwoman Glick said there are other uses for the s., money, it can be used in lieu of bonding. At one time -, the City could not bond. If we had had additional money that would not have bothered us. It could also be used where assessment districts are not authorized and State funding is not available. And it could provide advance funding when State funding is available. VOTE, Main Motion as Amended: (failed) Yes: Glick, Wise, O'Reilly No: Malston, Measles, Mueller, Wagoner 0 I L KEPJAI CITY COUNCIL DULY 7, 1982 Page 4 B•2 Nick Longhitano Mr. Longhitano arrived at this point. He said he lived in Lot 11 Block 5, Woodland sub- division. He has a lake there. He has put off putting in a driveway for 3 years, waiting for this to be fixed. He has the only driveway with mesh in it, it is a good one. He talked to the City once before. He bought the lot in good faith. When he bought it, Forest was not paved, but was raised. In the Fall and Spring he has people using his phone to get a wrecker to pull them out. Public Works Director Kornelis said on Jan. 21, 1961 and Feb. 4, 1981, this was reviewed. The original, builder in Woodland put in water 6 sewer and driveway cuts. Mr. Longhitano put in a driveway on the side and enlarged it. Mr. Longhitano asked for a small culvert on Redoubt. Mr. Kornelis had said he did not feel it would work. Mr. Longhitano had said he would keep it clear. Water can drain if it is open, but in Winter it freezes. We had a similar problem in Woodland, that owner built a lip to prevent water from going in. Mr. Kornelis was asked to bring in an estimate of repairs. We could slope the street, the cost in 1981 was $4,000 with the City patching machine. He would imagine it would be $10,000 now. Councilman Wagoner noted if we slope to the other side, we would be open to lawsuit from other owners. He added this has been a problem before, the slope drains to the other side of the street. Mr. Longhitano said his house is 16 inches above the street, it slopes to his house. Councilman Mueller asked, will our drainage study address this area and possibly propose a solution? Mr. Kornelis replied, no, this study is to handle area -wide drainage. Mayor O'Reilly asked if the drain has been maintained. Mr. Kornelis replied the property owner was to maintain it, but it cannot be maintained during Break -Up. Mayor O'Reilly suggested Mr. Longhitano, Mr. Kornelis and City Manager Brighton have a meeting and report to Council. Councilman Wagoner asked if the curb cut was authorized by the City. Mr. Kornelis replied he did not know. Mr. Longhitano said the man on the other corner has the same problem. The water backs up to Walnut St. Councilman Wagoner said there are many places that have a lake in the Spring. Mr. Longhitano noted he has lost 1/2 his driveway in the last 2 years. Councilwoman Glick asked if the drain was put in as requested. Mr. Kornelis replied, it was put in in 1980. He added, when he brought the cost estimate for repairs to Council in 1981, no action was taken. Councilman Wagoner said when a person constructs his home, he should note the problems when he builds it. Mr. Longhitano said he built in Summer. All the water runs from Alder, the culverts on Forest are too high. He wants something done before Winter. Councilman Malston asked Mr. Kornelis if there was any way to divert the water. Mr. Longhitano said you can drain into the property across the street. He added, the City can check Grandfather Rights on natural drainage. Councilman Wise said that will not take care of the problem, all of the storm drains in Woodland do not drain properly. City Manager Brighton suggested the Public Works Dept. propose a solution and cost for the next meeting. (7-21-42) Councilman Wagoner said he did not agree with Mr. Brighton. We should look at elevations as they were before paving. There has always been a puddle there in the Spring. Councilwoman Glick said we have addressed this before, we have put in a grate. a KENAI CITY COUNCIL July 7, 1982 Page 5 In past discussions -we have noted the driveway was put in incorrectly. Mr. Longhitano could put in a little bump to preclude the water from going into the driveway. Councilman Wagoner said it should be noted the garage is below street level. No action was taken by Council. C-2 Ordinance 783-82 - Increasing Rev/Appns.- Library Grant - 04,675 MOTIONS Councilman Measles moved, seconded by Councilwoman Glick, to adopt the ordinance. There was no public comment. Motion passed unanimously by roll call vote. C-3 Ordinance 785-82 - Amending K14C - Appointment of Acting City Clerk MOTIONS !y Councilwoman Glick moved, seconded by Councilman Malston, to adopt the ordinance. Councilman Measles said he had a problem with it, - the Deputy City Clerk could be there till the the Councii appoints a new one. Atty. Delahay said -- if this is caused by a vacancy, when the replacement is appointed, there is no more vacancy. Councilman Wagoner noted we have gotten along fine without this _o ordinance, it was unnecessary. MOTION, Amendments Councilman Wagoner moved, seconded by Councilman Malston, to amend the ordinance to read, page 3, #2, add at the end of the paragraph, "Said appoint- ment will carry a salary differential equal to the difference between this temporary City Clerk's salary and that of the City Clerk if this temporary appoint- ment exceeds two weeks (10 days) in length. This differential will be paid retroactive to the day the temporary appointment takes place." Councilman wagoner explained, the reason for the amend- ment 36 we are asking the secretary to step in and perform the duties of this Clerk and it could be for a long time. To give the responsibility without pay is not right. Either appointment (Deputy and Temporary) should have an increase in salary. Atty. Delahay asked to have this postponed till the next meeting. (7-21-92) i; MOTION$ Councilman Measles moved, seconded by Councilman Wagoner, to postpone to the next meeting and clarify Section 1.25. Motion passed by unanimous consent. i C-4 Resolution 82-62 - Designating Acting City Clerk Mayor O'Reilly noted that since the Ordinance re- lating to this has been postponed, this should be j postponed also. i 'i i Y I y --.sw -4 KENAI CITY COUNCIL July 7, 1982 Page 6 Council agreed to postpone action on the Resolution. C-5 Resolution 82-63 - Transfer of Funds - Senior Citizon Center, Additional Plans & Specs - $2,000 MOTIO:Q s Councilman 14alston moved, seconded by Councilman Measles, to adopt the resolution. There was no public comment. VOTEs (Passed) Yess Glick, Malston, Measles, Mueller, wise, O'Reilly Nos Wagoner C-6 Resolution 82-64 - Transfer of Funds - Repair & Maintenance of Russian Orthodox Church Parish House - $2,000 MOTIONS Councilwoman Glick moved, seconded by Councilman Measles, to adopt the resolution. PUBLIC C0124ENTs Father Targonsky, Holy Assumption of the Virgin Mary (Russian) Orthodox Church. He is supporting the resolution. One main objection has been that giving money is violating separation of Church and State. They are asking to help repair an old and historic rectory. Also, the City could help the Church in the Beautification Committee. Whenever there is a large attendance at Ft. Kenay, parking goes over to the rectory and lawn by the Church. Since the City dug the area up, they are indirectly responsible. He would like a fence and the placement of large logs to keep cars out. Also, the City should con- sider an appropriation for tourism to help the Church out. He has been giving tours for the last several years. He would like to have the Church open to the public. They are required to be open to the public 12 days per year because they receive federal funds. The City has 2 people working in the museum, it would be appropriate to give money to keep the doors open all day. This is a registered national historic landmark. Remarks have been made that other funds are available. They have tried to get Native funds, but he is not Native or rentor of the house, so they are disqualified. He didn't know if they could get funds if they declared it a national historic landmark. Councilman Malston asked, what is the money for? Father Targonsky replied, they have had a trailer on the property for several years, now they have a permit to put in a furnace. They hope to have it completed by October. They want heat upstairs, they have a wall heater downstairs. The old furnace would be part of the tour, but it is in his bedroom. The house was built in 1886, is the oldest structure on the Peninsula. Councilman Wise said he views the proposed appropriation as a contract the City has with the Church. The lease was written for Ft. Kenay, it is a 50 year lease. It specifically authorizes the City that it could make contributions to the rectory. It was expected that some monies be contributed in lieu of rental. The language in . I KENAI CITY COUNCIL July 7, 1982 Page 7 the resolution restricts its use. Father Targor noted the City did contribute $10,000 toward rej so the precedent has been set. Councilman fleas] said he understands the reason, but we will have to be ready to make like contributions to every church in Kenai. Councilwoman Glick said this x lution was prepared after failure of the ordinan She views this as different than other churches. Church is on the national register, the rectory but tourists look at the rectory. Regarding the that we would have to donate to other non-profit organizations, we already do. We made a donation of $20,000 to promote tourism. This is one of our attract- ions. Other cities are beginning to see the importance of historic sites. It has been a long time since we have done anything to contribute in any way. Council- man Wagoner noted we funded $20,000 to promote Kenai for people to locate and build in, not tourism. if we fund this, we had better be prepared to fund a lot of other things or be prepared to answer a lot of questions as to why we do not. VOTE: (Passed) YESs Glick, 11alston, wise, O'Reilly NOs Measles, Mueller, Wagoner C-7 Resolution 82-65 - Transfer of Funds - Main St. Loop & Barnacle - Change Order $4 - $1.120 MOTIONS Councilwoman Glick moved, seconded by Councilman Malston, to adopt the resolution. There was no public comment. Motion passed unanimously by roll call vote. C-7a Change Order $4 - $1,120 MOTIONS Councilwoman Glick moved, seconded by Councilman Measles, to approve the change order. Councilman Wins asked if this was confirmation, Mayor O'Reilly replied yes. Councilwoman Glick said she thought the change order was for more money than this. Public Works Director Kornelis said this is not confirmation, the work has not been done. The change order Councilwoman Glick refers to has not come to Council yet. He explained, in putting the storm lines in after the sewer lines, they put in a man hole over a sewer line. They will have to relocate the service line. Motion passed unanimously by roll call vote. C-8 Resolution 82-66 - Award of Contrast - Water & Sewer Improvement Engineering - TransAlaska Engineering - $125,000 MOTIONS Councilwoman Glick moved, seconded by Councilman Wagoner, to adopt the resolution. There was no public comment. Councilman Mueller asked, does this cover all sewer and wager in the City this date? Public Works Director Kornelis replied, this is what is being i 1 0 KENAI CITY COUNCIL July 7, 1982 Page 8 called a valve study. It will take all our as-builts out and field review them. It will show all water & sewer lines in the City. It will also up -date the Master Plan. Councilman Wise asked, is this a mot- to -exceed bid? Mr. Kornelis replied yes. Council- man Wise asked, are they aware of his report that many of the lines are not as stated? Mr. Kornelis replied, he didn't know. Councilman wise asked, will we get adequate data on the depth from the study? Mr. Kornelis replied yes. Councilman. Wise asked, what is the expected deviation? The study is only good within tolerance. He further suggested the vote be taken on Resolution 82-67 before the vote on this item. MOTION, To Table: Councilwoman Glick moved, seconded by Councilman Mueller, to table item C-8, Resolution 82-66. Motion passed unanimously by roll call vote. C-9 Resolution 82-67 - Transfer of Funds - water & Sewer Improvement Engineering - $1,000 - MOTIONs Councilwoman Glick moved, seconded by Councilman Wise, to adopt the resolution. Thcre was no public comment. Motion passed by unanimous consent. C-8 Resolution 82-66 (Tabled) MOTION, Remove from the Tables Councilwoman Glick moved, seconded by Councilman Wagoner, to remove the item from the table. Motion passed by unanimous consent. MOTION, Amendments Councilwoman Glick moved, seconded by Councilman Measles, to amend the resolution to read, the 3rd WHEREAS, line 3, after the word "combined," add "not to exceed." Also, in the paragraph beginning NOW, THEREFORE, line 3, after the word "amount," delete the word "of" and add "not to exceed." Motion passed by unanimous consent. Councilwoman Glick said, regarding the Public Works Committee. She reviewed the proposals but did not call a meeting, because of objections to meetings. She met with Public Works Director Kornelis. She would like to get as much work as possible from local people, but TransAlaska did give the best proposal. Motion passed unanimously by roll call vote. C-10 Transfer of Liquor License - Gate 54 Clerk Whelan said the Borough stated they were current on their taxes. z i i I 4 � 1 r i ;:,, j4i KENAI CITY COUNCIL July 7, 1982 Page 9 .f MOTION: Councilman Mueller moved, seconded by Councilman Wagoner, to send a letter of non --objection to the Alcoholic Beverage Control Board regarding the application by Gate 54. Motion passed by unanimous consent. D. MINUTES D-1 Regular Meeting, June 16, 1982 Clerk Whelan said on page 8, item G-2, the bottom of the page, add "Motion passed by unanimous consent." Clerk Whelan said page 11, item G-10, 8th line up from the bottom, the word "of" should be "or." Clerk Whelan said page 13, item G-12, the description should be "Amendment to Lease - Southcentral Air - installation of Fueling System." Council approve the corrections. E. CORRESPONDENCE E-1 Dollar Rent-A-Car - Counter Space at Airport MOTIONS T' Councilman Mueller moved, seconded by Councilman Wagoner, to direct Airport Manager Swalley to request bids for available spaces on a per square foot basis and the highest bidder getting lot choice. Addition to Motions Councilman Mueller, with consent of second, asked =T� that the Airport Manager establish a minimum bid. .j., Motion passed unanimously by roll call vote. Councilman Wagoner asked that the information be brought to the next meeting. (7-21-82) q E-2 Alaska Dept. of natural Resources - To Dow/Shell Consortium - Status Report --o- No action was taken by Council. E-3 Alaska Office of the Governor - Regarding SB-180, - Title 29 Changes _ Councilwoman Glick said she talked to Rep. Miller, ` there is a possibility Gov. Hammond may let 5B-180 --- become law without his signature. Then the Legis- lature can address the problems at the next session. Gov. Hammond has had his staff look into possible legal questions and this was his decision. i� 5 r MOTION s Councilman Wagoner moved, seconded by Councilman Measles. to have the City send a letter to Gov. .;, Hammond urging a veto and not allow SB-180 to _-..� j pass without his signature. Councilwoman Glick asked that it be stated this is _ in reference to his letter, and it has caused 9 the City great concern. Councilman Wagoner added, Fi i ' G'7 k . KENAI CITY COUNCIL July 7, 1982 Page 10 inaction is inappropriate. Councilman wise added, this would drastically affect assessments in the Borough. Evan though the Legislature may amend, the cost to the Borough and assessing municipalities will still be there. Councilman Measles noted the main problem is it has been amended too many times already. Motion passed unanimously by roll call vote. E-4 Wien Air Alaska - Suspension of winter Jet Service No action was taken by Council. E-5 Thompson Park Residents - Installation of Sewer Lines Councilwoman Glick asked if they were willing to form an assessment district? Councilman Measles suggested Administration contact the people and inform them of the process of starting an assessment district and the expenses involved. It may involve a new sewer treatment plant. Councilman wagoner noted Candlelight and Linwood are still staring at us, the City has no policy. He suggested the City tell them we are work- ing on a policy and will let them know when the policy is set. Councilman Mueller noted this area has been experiencing problems with sewer for some time. He brought it to Council 2 years ago. At that time Public Works Director Kornelis had said it would be more practical to put in a line then a sewer treat- ment plant, but it would require lift stations. It is expensive, but it is needed. There are wells there that are periodically contaminated. City Manager Brighton said about 2 years ago they did a poll in the area, 50% wanted it and 50% did not. Administration felt they were in a 4ilemma and not done anything. He suggested another poll, whether they want it and what want. Councilman Wise suggested a listing of properties and ownership, then send the information to these 2 individuals and point out if they want water, they have to have sewer. He suggested they take the petition around. Councilwoman Glick noted there is a policy, we have an ordinance and a charter amendment allowing assessment districts. Atty. Delahay is working on cleaning this up. Councilman Wagoner asked what type of funding this ordinance addresses? Atty. Delahay replied the ordinance would leave this up to Council. It would depend on the grants available. Councilman Wagoner added if we do this for one, we will have to be ready to do for many. G. NEW BUSINESS G-1 Bills to be Paid, Bills to be Ratified MOTION: Councilman Measles moved, seconded by Councilman Malston, to approve the bills as submitted. Mayor O'Reilly asked, did the Recreation Dept. clean up the airport, and if so, did this get deducted? Airport Manager Swalley replied yes. Councilman Mueller asked, regarding the Doyle's Construction bill, he was out there recently and noted the grass seed did not take. Is there a provision to re -do this? Public works Director Kornelis replied, there is a clause for them to go back and re -seed, but there is not enough tc,p soil. Fie is retaining $10,000 mainly for re -seeding. Councilman wise asked about � el�j�wly►syA.- rSe_-_� .�x�..... r-i KENAI CITY COUNCIL July 7, 1982 Page 11 the street light report. Public Works Director Kornelis replied they still have a little on the Bridge Access Rd. Councilman wise added, the high school also. He asked about the PO on the Wi ldwood light. Mr. Kornelis replied he would check. Motion passed unanimously by roll call vote. G-2 Requisitions Exceeding $1,000 NOTIONS Councilwoman Glick moved, seconded by Councilman Nalston, to approve the requisitions as submitted. Motion passed by unanimous consent. G-3 Ordinance 786-82 - Amending KMC - Establishing Acting City Manager MOTIONS Councilwoman Glick moved, seconded by Councilman Measles, to introduce the ordinance. Councilman Wagoner said he felt the same about this as he did the lot one (Ord. 795-82) It is not necessary. It should be up to the City Manager to run the business of the City. Council sets policy. Councilwoman Glick asked City Manager Brighton if he felt comfortable with this. Mr. Brighton replied this ordinance set out what he hes done all along. He has no strong feelings about this one way or the other. VOTES (Passed) Yess Glick, Malston, Measles, Mueller, O'Reilly No$ Wagoner, wise G-4 Ordinance 787-82 - Amending KMC - Exempting Subdiv- isions Prepared by City and Posting Security other than Surety Bond or Check Councilman Mueller said the 1st 2 WHEREAS clauses need to be modified. Atty. Delahay explained, the -- difference is in the lot WHEREAS the subdivider is supposed to install improvements and doesn't and the -_-_ City is left with the expense. The 2nd is, the City is the subdivider and has the expense to start with. :_ a l MOTIONS Councilman Measles moved, seconded by Councilman Malston, to introduce the ordinance. Motion passed unanimously by roll call vote. G-5 Ordinance 788-82 - Increasing Rev/Appns - Chore Helper, Film Rental & Supplies for Senior Citizen Center - $5,365 MOTIONS Councilman Malston moved, seconded by Councilman Measles, to introduce the ordinance. Motion passed unanimously by roll call vote. G-6 Ordinance 789-82 - Amending KMC - Limiting Employ- ment of Councilmember.s by the City 11 KENAI CITY COUNCIL July 7, 1982 Page 12 MOTION: Councilwoman Glick moved, seconded by Councilman Measles, to intorduce the ordinance. MOTION, Amendments Councilman Wagoner moved, seconded by Councilman Malston, to amend the ordinance to read, Section 1, 1.10,070, line 3, delete the word "for" and add "to make application for employment." klso, Section 1, 1.10.070, line 7, delete "until one year has elapsed following the term for which he was elected or appointed." Councilwoman Glick disagreed, explaining what we are trying to do is make provisions for one year to elapse. A person on Council could make a position and salary and apply. If we as Council say we will still pay ourselves, the money could not be paid till a new Council takes office. Councilman Wagoner said we are trying to be a microcosm of the State. There are pitfalls in this. He agrees that no one should sit on Council and apply, but not one year limit. Councilman Mueller said it is overkill, in his listing contract, he could not list any City pro- perties for sale. VOTE, Amendments (Passed) Yess Malston, Measles, Mueller, Wagoner, Wise Nos Glick, O'Reilly Councilman Wise asked if Atty. Delahay could review and phrase an amendment that is rational and not punitive. VOTE, Main Motion as Amended: (Passed) Yess Glick, Measles, Wagoner, Wise, O'Reilly Not Malston, Mueller G-8 Discussion - Change Order from McLane & Assoc. - Overtime, Spruce, lot, Birch, 4th, 2nd, 3rd, Forest Dr. & Gill Public Works Director Kornelis explained, this is P = the lot year we have gone into contract with sur- veyors. The proposal was based on normal working r hours. The contractor has accelerated working hours to longer days. There is a section in the contract for _ extra work. Mr. McLane says he does not feel he will n_ exceed but wants to request in case. There will be a resolution at the next meeting (7-21-82) for additional funds. MOTION: r" Councilman Measles moved, seconded by Councilman j Wagoner, for authorization of the overtime. Councilwoman Glick asked if the survey is done under the inspector's contract. Mr. Kornelis replied no, this year it is direct contract. Councilwoman Click asked, is there a not -to -exceed in the contract? fir. Kornelis replied yes. Councilwoman Glick noted, this gives them an extra $4,400 to work with? fir. Kornelis replied yes. There is a possibility they may not need these monies. Councilman Mueller said he would rather see them come back to us if funds are needed rather A t �g P 6 e y KENAI CITY COUNCIL July 7, 1982 Page 13 than write blank checks. tor. Kornelis explained their contract says they will not do the work without authori- zation from us. j VOTE: (Passed) Yes: Glick, 11alston, Measles, Wagoner, O'Reilly 1 Nos Mueller, Wise H. REPORTS H-1 City Manager City Manager Brighton spoke. 1. The new insurance broker for the City is Walters 1 and Olson. The day before expiration, the con- sortium of the Municipal League fell apart and 1 some cities were without insurance for a few days. 2. We received a quit claim deed for the cemetary, 11.29 acres. - 3. There will be an appropriating ordinance for $2.6 Million for road work to get engineering done early next Spring. 4. There has been a water leak at the Community Center. - The water line was from the Art Center.. The City cut the line to shut the water off in the building. There is a leak under the concrete slab, it may cost $1,000 for material and a couple of days work to repair. Representatives of the Historical Society are requesting repairs so they can rent the building. Public Works Director Kornelis has said there .are: other problems with the building. y �..;. The representative of the Historical Society had said he wanted repairs for one year, then they T. could use Ft. Kenay when the new Senior Citizen Center is complete. MOTIONS Councilman Measles moved, seconded by Councilman Wagoner, that the City take bids on the building to be torn down and removed from the premises. Councilman Wise asked, what about the Public Health �'- building? City Manager Brighton replied that is owned by the State, it has been sold, and will be removed by July 31. Councilman Wise asked about the report on public buildings. Mr. Brighton replied, it is not finalized. Councilman Wise suggested the Historical Society be given a chance to plead their case. Councilman Wagoner said it should not be used by the Historical society. There are better buildings for them to meet in. Mr. Brighton explained they do not meet there, this is used to generate revenue. Atty. Delahay said we have a lease for $1 per year, has this been entered into this year? Mr. Brighton replied no. Councilman Wagoner asked, what is the insurance on this? Mr. Brighton replied, substantially more than $1 per year. Councilman Measles said, if they plead their case, we still do not have the money to repair. It is not an asset to the City. VOTE: (Passed) Yess Measles, Mueller, Wagoner, O'Reilly No: Glick, Malston, Wise 44 - r KENAI CITY COUNCIL July 7, 1982 Page S. The Parks Dept. has asked for 2 old well houses to be used for storage. We will have to cap off some pipes. Councilman Wise asked if they could ' do that with allocated Pa:ks & Rec funds. Public Works Director Kornelis replied no. Councilman Wagoner said if we do anything with the buildings, they should be combined as one building. i 1 6. There are 2 quonset huts on FAA that are being vandalized. He would like to have them moved also. Councilwoman Glick said the money to move and set up at a new site should be charged to the depts. using 1 them. Recreation Director McGillivray said an estimate was made of $8,100 to run slab, combine the 2 and move them. Councilman Malston suggested we consolidate all equipment and eliminate the quonset huts. What is in them? Clerk Whelan replied, the election material. I Councilman Wagoner said it should not come out of Dept. costs. You budget for improvements, not O&M. MOTIONS Councilman Measles moved, seconded by Councilman Wagoner, to go ahead and move the buildings and let the Cityfigure out how to Manager g q pay for .it. Councilwoman Glick asked if City Manager Brighton could have the inventory of buildings by the next meeting. (7-21-82) Mr. Brighton replied yes. MOTION, Tables Councilman Malston moved, seconded by Councilwoman Glick to table the motion till the next regular meeting at which time we will have an inventory 4• of buildings. VOTES (Passed) '- Yess Glick, Malston, Mueller, Wise, O'Reilly Not Measles, Wagoner . ; 7. Council has received a memo regarding negotiations with Homer Electric, and a copy of Kent Wick's letter to HEA Board (passed out this date). - MOTIONS Councilman Wagoner moved, seconded by Councilwoman Glick, that the City make a counter offers ' 1. HEA will make no claims for relocation work done prior to Jars. 1, 1983. i 2. The City will pay 50% of all relocation costs { of power poles requested by the City after Jan. 1, 1983, other than those replaced for maintenance reasons only. HEA will clear r work with the City Public Works Dept. on main- tenance to avoid conflicts due to preplanned capital improvement projects. i Councilman Malston asked Atty. Delahay, how responsible are we? Atty. Delahay replied, HEA attorney, Rick Baldwin feels that under contract, then is hold harmless clause, the City is obligated as the(hol0 arse_, le the wrong place. Atty. Delahay feels t e City position is good, we should not pay any costs. There is a legal difference of opinion. Councilman Malston asked, what a I KENAI CITY COUNCIL July 7, 1982 Page 15 are the chances if it lands in Court? Atty. Delahay replied, -ur p�oition is not as strong as in the sludge case, but stronger than the Clarion case. He added, we can speak of relocation expense, if they are old poles, they will replace them. This could be addressed in the amendment. Mr. Brighton noted Mr. Wick has said any time they move a pole they will put in a new pole. Councilwoman Glick said they keep referring to our system and our poles. Back when they purchased the system, HEA was running poles through the City. How are they determining which are ours and which are theirs? Mr. Brighton reviewed the position of HEA. They are willing to forego any costs in the past, we pay costs this year, we pay future costs. They hoped we would negotiate the $42,000 it will cost this year. It was his opinion the City would not back up that cost. Mr. Wick will bring this to their Board and bring us ! a counter-offer. They say someone has to pay the costs, and HEA will not. They will be passed on to the consumer. If the City does not pay, HEA will put on a special assessment on customer costs. Councilman Mueller asked, when will they own the system outright? Will the agree- ment terminate at that point? Atty. Delahay replied, they own equitable title now, we hold legal title. They would expect us to pay relocation costs forever. He a suggested an amendment to restrict it just to the KCL system. MOTION: Councilman Mueller moved, seconded by Councilwoman Glick, to amend the motion on the floor to restrict the SO$ payment to the old KCL system and all payment would terminate at full payment of bond indebtedness on the system. i i Councilman Wagoner asked if the City could buy back the electric utility. Atty. Delahay replied he didn't know of any option in the contract unless they do not operate as agreed. They have not done that in the last few months. Councilman Wagoner said he would like to have that researched. sey)State is giving grants all over the State. The-peop`ie n Kenai are helping pay to amortize and help subsidize the rest of the Peninnula. We could provide power cheaper by operating it ourselves. Don't we have an entitlement of natural gas? Atty. Delahay said no, we transferred the right to KUSCO. Councilwoman Glick asked, when does the KUSCO franchise expire? Atty. Delahay replied, 1987, but the gas supply expires in 1986. Councilman Wagoner said we should look intos a. Do we have the option to buy back? b. Ask HEA if they :ant to have us buy back. VOTE, Amendments (Passed) Yess Glick, Malston, Measles, Mueller, Wagoner Nos Wise, O'Reilly VOTE, Main Motion as Amended: (Passed) Yes: Glick, Malston, Measles, Mueller, Wagoner Not Wise, O'Reilly 8. City Manager Brighton said Public Works Director Kornelis has prepared a letter distributed to Council this date regarding utility locations within street right of ways. fir. Kornelis had said it will have to be somewhat flexible. Councilman Wise said relocation for any cause, KENAI CITY COUNCIL July 7, 1992 Page 16 the new facility will comply with the ordinance and be approved by the City Manager. And a civil penalty clause for violations. Atty. Delahay explained, till he knows specifics, he cannot do an ordinance. Council agreed to send the letter. 9. Councilman Wagoner asked City Manager Brighton if he had heard anything from the Quandts? Mr. Brighton replied, the State has given him 30 days to clean up, not transgress on un-leased land, comply with City Code or they will prosecute. 10. Councilman Wagoner noted the Cable TV system award had been made. The City suggested one system due to the lack of progress of the other. out this one has not started yet. Councilman Measles said PUC had not made a decision yet. Councilman Wagoner asked that Administration inquire as to the hold-up. lie didn't think the citizens had been treated fairly. Councilman Wise suggested the Cable TV lines be included in the utility diagrams. 11. Councilwoman Glick asked City Manager Brighton if there had been any trouble with the new appraisals. Mr. Brighton replied they have consumated some and have had some problems. Mr. Yamanoto thought there was a 50% cap on his lease but we could not find one. As a general rule, he felt there has been a lack of conflict. �- - 12. Councilwoman Glick asked City Manager Brighton about the gravel on the sidewalk in Pidalgo Sub- division and other places. They had hoped to use jl sentenced individuals to clean them, but cannot. Is there any way to get rid of this? Public Works d Director Kornelis explained the new sweeping machine cannot, it would sweep into the side of the walk or the street. Councilwoman Glick asked if it could be swept into piles and then swept up. �- Recreation Director McGillivray explained this was bought for back trails basically. Council- ____ man Wagoner asked if the Youth Employment program p could sweep the streets. Councilman Malston N suggested coordinating with the 2nd sweep of the a -_ - City. 13. Councilman Wagoner noted the used car lot has moved from Carr's parking lot across the street. He suggested everything be impounded. Atty. Delahay said they can be impounded, according to Code. MOTIONs Councilman Mueller moved, seconded by Councilman Measles, to direct Administration to attempt to call owners of the vehicles before moving. Councilman Wagoner suggested putting a notice on the vehicle and wait 24 hours, then impound. Motion passed by unanimous consent. f H-2 City Attorney - Atty. Delahay spoke. KENAI CITY COUNCIL July 7, 1992 Page 17 1. There will be a draft ordinance to clarify and simplify procedures on assessments districts. The Finance Director should have some input. Due to the end of the fiscal year, he has not been able to review. 2. Gov. Hammond has signed HB-146. This requires the City to pay interest on retainage on approval of payment orders. After passage, Finance Director Brown and City Manager Brighton wrote letters to the Governor protesting, but it was signed. We pay 10.5% interest from the time payment is approved till it is paid. There will be some complications. The contractor has not earned this money. The roaoon for partial pay is because the contractor cannot do a long job without payment. There are good reasons to object. We should talk to our Legislators. It is effective with contracts after July 1, 1982. The airport and senior citizens center are yvr involved. He suggested we go ahead with contracts as usual and not retain anything. Retainage is good, but can only be held with interest. Councilman Wagoner said if you got money at 12%, 13%, you are not making any money. It is double jeopardy for the contractor and the City. Councilman Measles suggested we do away with retainage and hold back final payment till we get final approval. Public Works Director Kornelis said some times they will put up -front cost enough to cover costs. Atty. Delahay said we should be more careful in approving pay estimate portion. Councilman Wagoner said 10% is low, it is the subcontractor who will get hurt. Atty. Delahay said any portion done by a subcontractor we could get a waiver of the lien. H-3 Mayor Mayor O'Reilly spoke. 1. He asked what had been done about the offer by Jess Hall regarding the lots in Woodland S/D to be used for a park. Administration has obtained appraisals. Councilman Wagoner replied it has been referred to the Recreation Commission. 2. Regarding the $250 per capita from the Legislature. It will mean $1,104,000 to the City. Finance Director Brown cannot apply till the City details what it will do. We will have to review the priority list. Councilman Wagoner said we don't need to re -assess the list, just delete Thompson Park and VIP paving. Councilman Wise suggested it be referred to P&Z. Councilman wagoner said the list was made in meetings with P&Z. Mayor O'Reilly asked that Administration have the priority list, the amount of money received (with additions & deletions) for the next meeting. (7-21-82) 3. Mayor O'Reilly asked Councilwoman Glick and Councilman Mueller to inspect the jail and report to Council. 4. Mayor O'Reilly said he will be out of State `.or the July 21 meeting. H-4 City Clerk None 11-5 Finance Director None R ,w KENAI CITY COUNCIL July 7, 1982 Page 18 H-6 Planning & Zoning Councilwoman Glick said there had been a work session on Section 36 lands. The concensus was to allow P&Z to address their proposal. H-7 Harbor Commission None H-8 Recreation Commission Recreation Director McGillivray spoke. 1. They have not had a meeting. 2. Baseball and Softball are going strong. 2 tournaments have been held. 2 morc are scheduled. We may have the State tournament Mere. 3. Little League is going strong. 4. The playground equipment is being installed. 5. They have put extra topsoil into the areas needed. 6. The fencing has been started. 7. There are about 175 children enrolled in the Summer program. 8. There are some grants available for a fitness trail. He submitted an application, and re- ceived $2,500 to purchase equipment. The equipment will cost $6,000. MOTIONS Councilwoman Glick moved, seconded by Councilman Malston, to authorize Administration to sign the grant and send $500 for the grant application. Motion passed by unanimous consent. I. PERSONS PRESENT NOT SCHEDULED TO BE HEARD 1. Councilman Measles said he will be absent for the July 21 and Aug. 4 meetings. 2. Councilman Wise asked, where are we on ADAP grant funds and the parking lot for the terminal. Airport Manager Swalley said they have teen delayed. 3. Councilwoman Glick said Airport Manager Swalley has been counting aircraft in and out of the air- port, it has been very heavy. Mr. Swalley said 2-1/2 Million pounds of fish have been moved so far. 4. Councilwoman Glick said she met with other Western elected officials in Los Angeles to meet with Pros. Reagen and staff regarding budget, land & water problems of western states and Pros. Reagen's Federalism program. 2 questions Mayor O'Reilly asked her to review were Aid to Dependent Children and the food stamp program. ADC will be handed over to the states. The food stamp program will be retained by the Federal Govt. she will be getting the information. They have been getting I Q KENAI CITY COU14CIL July 7, 1982 Page 19 flat: from the media. They are committed to provide 95 Million meals next year. She asked if they had any feeling towards she All -Alaska pipeline. The representative was not aware of any consideration. She will be sending a letter to address this problem to see if we can get a dialogue going. The Dept. of Interior addressed the water & land problem. Some of the lands have been transferred in Arizona, Utah and other states that have been hold for many years. They also discussed the criticalness of the water supply in the western states. Some water supply projects have been held back because they did not know the criticalness of water. Rep. Joe Hayes of Anchorage and Mike Ribar of the Fairbanks -North Star Borough were there. Councilman Wagoner asked, how does this affect the City of Kenai and how does it affect the Council? ADC and water & land entitlements are not City related. He has a great deal of difficulty sitting on Council when we play big city politics. Who approved the trip and what budget was it approved out of? Mayor O'Reilly replied he approved it and it came out of Legislative budget. Councilman Wagoner asked, what purpose does it serve? Mayor O'Reilly said you cannot determine the gain specifically. We are trying to have a better informed City and this type of contact makes people aware of what we are. It has a cumulative effect. Councilman Wagoner said if we want to put the City on the map, we do not have enough money to do that. We should assess what the City is and what the responsibility of the Council is. It is a total waste of City money. 4. Councilman Wise said Police Chief Ross' wife had major surgery, he suggested we send flowers to her. Council agreed to the suggestion. ADJOURNMENT Meeting adjourned at 12:25 AM. Janet Whelan City Clerk 1� 10 KENAI CITY COUNCIL VERBATIM TRANSLATION July 7, 1982 H. REPORTS H-1 City Manager CITY MANAGER BRIGHTONs You have received from me a memo in connection with negotiation with BEA. In addition to that you received tonight a copy of a letter from Kent Wick that Kent Wick had sent to his board members. After reading both you can see for yourselves approximately where we are in those negotiations and I don't know whether you feel it is a matter that you ought to executive session discuss or whether you're willing to go ahead and discuss it at this point here. MAYOR O'REILLY - Councilman Wagoner COUNCILMAN WAGONER - I'd like to make a motion just to get the thing started, and I'm not taking into account both memos at all. I think we've had a little bit of negotiation. I'd like to make the following motions MOTIOR - I move that the City of Kenai make the following counter offer to BEA - 81, BEA will make no claims for relocation work done prior to 1-1-83. 02, The City of Kenai will pay 50% of all relocation costs of power poles after 1-1-83 other than those which are replaced for maintenance reasons only. And in parenthesis I've got - (any time BEA replaces any poles due to maintenance they will clear this work with the City of Kenai, Kenai's Public Works Department to avoid conflicts due to a pre -planned capital improvement project). i COUNCILWOMAN GLICK - I'll second that motion. I 1 MAYOR O'REILLY - You have the motion before you. Were you able to catch the (inaudible)? Do you have it written down, Tom? COUNCILMAN WAGONER - I have it written down. MAYOR O'REILLY - Okay, discussion on the motion, Council? 1 i Councilman Ralston. COUNCILMAN RALSTON - Will. (inaudible). Should there not be something added in there? It looks to me like you're saying that the City of Kenai will pay 500 of all relocation costs. It could be any relocation costs that BEA decides to do in the City of Kenai. Can you clarify that, maybe, a little bit in there, so that it (inaudible). CITY MANAGER BRIGHTON - .at the request of the City.. COUNCILMAN WAGONER - costs requested on the part of the City of Kenai. (inaudible discussion) MAYOR O'REILLY - Further discussion on the motion? Councilman Ralston first. COUNCILMAN RALSTON - Well, I would like to hear from Mr. Delahay in regards to --- I was not here last week and I missed out on that. But I would like to know legally how responsible we are. I know I've heard you speak of this in the past and I'd like to hear your point of view. S` CITY ATTORNEY DELAHAY - There is a difference of opinion. Mr. Baldwin feels that under our contract, because there's a hold -harmless for any matters or things because of the ownership and operation of this line by the City, that the City is obligated because these poles were put in the wrong place. As I've previously expressed, I feel that the responsibilities of the City as a sovereign to its people is not given up when they sell a proprietary interest, which is a utility interest, and that the City's position is good and they should not have to pay any costs. I had another point I wanted to bring up about the motion. But does this answer your question? COUNCILMAN RALSTON - That answers my --- yes. That answers my question. I see the difference of opinion. What are our chances if it should end up in court? CITY ATTORNEY DELAHAY - I stopped guessing at what a court would do a long time ago. I would say the position is not as strong as the position the Citywas in in the sludge case, but I would say '+ it's stronger than the position of the City was in the Clarion 2 I a ' � I a li case. It's somewhere in between. COUNCILMAN WAGONER e Now about relating it to the rase of the airplane? CITY ATTORNEY DELAHAY - It looks like it'll take just about that long to resolve. MAYOR O'REILLY - You had a question on the motion? CITY ATTORNEY DELAHAY - Yes, I had something to bring up and that is when you you speak of relocation expense, often if a pole is getting old, you know - maybe it has 3, 4, 5 years to go -- instead of relocating a pole, they'll put in a new pole while they're doing it. They'll upgrade the system when they have to move, it, which is a feasible and efficient way to do it. But this could be addressed in the, motion so that the City does not pay any of their costs of upgrading their system. COUNCILMAN WAGONER - I did address that. I said, "which are replaced other than those which are replaced for maintenance reasons." CITY ATTORNEY DELAHAY - Well, but they wouldn't be replaced for maintenance. In other words, if they're improving their line or their pole because it's only got 4 or 5 years to go, they wouldn't do it at that time. They'd let it go till that pole was gone. But when they're moving and going to the expense of putting in a pole, why they'll put in a new one. They're allowed to charge the City for these and there are in some cases poles -- and I'm thinking of one down where the sewer plant was that was, that they themselves had placed, or they took out a pole, and ran the line straight. Then when we are building the sewer plant we couldn't have the line across the top of the plant and we asked them to put a pole right back in where they had previously taken one out and they wanted to charge us for it. In other words, there are certain circumstances where they should have responsibility even if you're going to accept half of the cost of relocations asked for by the City. MAYOR O'REILLY - Okay. Councilwoman Glick first. CITY MANAGER BRIGHTON - I'd like to address that point. 3 4 i MAYOR O'REILLY - Okay, Mr, Brighton, CITY MANAGER BRIGHTON - from REA standpoint, I'm told by Mr. Wick that any time they move a pole they will set a new pole. They will not move the old pole - under no circumstances. MAYOR O'REILLY - Councilwoman Glick. COUNCILWOMAN GLICK - Well, the more we discuss this and get back into this particular aspect, the more you think about it, and the thought has crossed my mind - and I have discussed this momentarily with Mr. Delahay - and that is the fact that, you know we keep referring to this as "our" system and "our" poles, etc., and so forth. And the thought that crossed my mind is that back whenever they purchased that old KCL system, HEA was also running power poles thru the City. For instance, when we built our house in 1973, we were immediately hooked up to HEA, not the old KCL system, but the HEA system, So forever I've paid to HEA. So, I guess the point I'm trying to make is how are they determining which are our poles and which are theirs in this agreement? Do they have an as -built system, because maybe, you know if they came out and had to replace a pole there at my house, are they going to say, "that's your pole"? Because that would not necessarily be so because it's always been BEA's pole. So I guess I'm back into this thing again, you know I just hate to always be being accused of making them go into some expense that they wouldn't otherwise have because it's "our" system. And therefore I think that's something else that we should consider because HEA and KCL both had lines thru the City and I think mainly that old KCL system, and Ron could maybe corroborate this but I think that was mainly in the down town areas and it might have been out as far as walker Lane. I don't remember. But I know as far out where I live it's always been HEA system and that was still at the same tine when KCL was operating. MAYOR O'REILLY - Mr. Brighton, CITY MANAGER BRIGHTON - I've been overly brief about this conversation with BEA, Maybe I better add a couple of things at this point. Their position is, they're willing to forego any of the costs in the past. Their position is that we pay the costs of this construction year and their position is that we pay all n 6 costa at our request to move those utilities. At the and of the conversations, Kent was hoping that our position would be that HEA would forego everything in the past, the City of Kenai would pick UP everything in the future, the only remaining thing left to negotiate would be the $42,000 he says that it's going to cost HEA this year, It was my opinion that the concensus from the Council was, the Council was not willing to pick up 100% of the costs in the future at our request of moving, So therefore i didn't give any on that situation and the motion that has been made is almost identical to what I would have recommended that you do in making a counter offer to HEA, He will then take it to the Board on the 17th, He will :hen get ahold of me after that Board and I am Sure that they wAy have an additional counter proposal. This isn't going to be resolved because we any this or they say something else, But they always come back to this - that someone has to pay those costs, And HEA is not going to pay those costs. Those costs are going to be passed on to the consumer, one way or another, and it is their intent that if the City doesn't pick up all those costs in the future, their intent is to try to get some sort of special assessment for the users inside the City of Kenai to put them into the position that their light bill will reflect the cost of the City's request of them moving their pole, MAYOR O'REILLY - Okay, Councilman Mueller, COUNCILMAN MUELLER - By question was kind of along the line that Betty was just asking, but somewhat different, when are, or when will they own the system outright and would this agreement to split the future costs terminate at that point? CITY ATTORNEY DELAHAY - i don't know the exact date, They would own the system after all the bonds are paid for, in my opinion, they now own equitable title to the system, Legal title was kept in the City because the City was responsible for payment of the bonds, And until those bonds are paid for, we are holding legal title. When they pa. off those bonds, and they are making the annual payments on t em, then they will acquire the system, i would also assure you that under the type of agreement you are making, that wouldn't change a thing, They expect us to be Paying relocation costs forever, I think that this motion could possibly be amended to address the problem that Mrs, Giiek brought up, since they have said that they are relying on this 5 contract with the City and the condition that the City entered into of holding them harmless of the old KCL system, that this be restricted to the KCL system and not to the whole system within the City, I can assure you of this, there may be more renogotiations, but back, Once you're given ,,ay on a point, you can never reinstate it, Everyone at that joint meeting talked of compromise, but it appears to me that what they have come up and asked for is not compromise, it's unconditional surrender, I still believe that if the City is indeed responsible, the City should perhaps pay the 0150,000 if they can prove that they put that much into it over the past, But you're talking about $42,000 this year that you're fighting about, what's it going to be next year and over the next 10 years, and over the next 20 years? It's still my opinion that it's worthwhile going into court over, MAYOR O'REILLY - Councilman Mueller and then we'll (inaudible) MOTION - Councilman Mueller - I would move then to amend the motion that is on the floor to restrict the 50% payment to the old KCL system and that all payments would terminate at the full payment of the bond indebtedness on the system. COUNCILWOMAN GLICK - I'll second that for discussion. MAYOR O'REILLY - I think, Councilman Mueller, that the date 1985 or 1986 strikes me as something where the transfer occurs. Councilman wagoner, COUNCILMAN WAGONER - Nice shot, anyway. Let's discuss this a little further. In the first place HEA system and KCL did overlap not in the down town area but clear out past Thompson Park clear out to the City limits, There is overlap of both systems. My house was on one lighting system, the house next door was with SEA. It's really a screwy situation. Secondly, we're in a situation where, if I'm correct, the City of Kenai can buy back that electrical utility. Do they not have the option of paying back HEA and buying back the old system? CITY ATTORNEY DELARAY - I don't know of any option in the contract, Councilman Wagoner. If they fail to operate the system properly, like they have over the past 3 months, failing to cooperate in moving these lines, we might be able to cancel the G - —._ - - �::.y��+�- Less���^� ._.«,�;,.�_ :•.3-'�"'-�+�.�.:�=.;-r ,.ate.... �._.,�-a�t.�....r�-z=.���: �1 ^��"�'���=_----. contract, if you want to take over the system. But I don't know of any option in the contract that we have to take it back. I don't think it was put in there, COUNCILMAN WAGOPIER - Well, I'd like that researched because the main problem with the City having that utility was not the maintenance of it or the operation of it, it was the source fiom which they were buying their power., which was Consolidated Electric - which burned down, after the generators were removed, it was one of those kind of deals. That was the main problem we had, And the fact that it was the most valuable asset the City had to sell at the time and they needed some money, And I still think it was the poorest thing the City ever did, And I think we should pursue getting that back. The State is giving grants all over the State -- the City of Seward, all over, for power generation facilities, And - hey, folks, let's face it. If you've got a utility, you got a built-in profit. Right now the people in Kenai - if they want to talk about paying - the people in Kenai are paying to help amortize construction costs and hook- up costs that are much higher than the City of Kenai should be paying, all over the Peninsula except for those areas served across Rachemak Bay. we're helping subsidize the rest of the Peninsula. we had a vey nice little system here that was centralized and BEA is spread all over the Peninsula. And if you think we're not paying more now than we would if we owned and operated our own utility, you're wrong. I've looked into that. There are private contractors who would be very willing to operate a utility for the City of this nature. I've looked into that. I think we should pursue that and if we can get our own utility back because I think we can provide power cheaper to the residents of the City of Kenai by taking back that utility and operating it ourselves. I think it should be at least worth exploring. Don't we also have, as far as natural gas, don't we have a percentage - don't we have an entitlement of natural gas? Couldn't we, if we owned our own utility, then generate our own power thru an agreement? CITY ATTORNEY DELABAY - No we don't because we transferred all that right to RUSCO, They have the right to use all the gas that the City has. COUNCILMAN WAGONER - But they could commit a percentage back to the City if they wished. 7 l I ATTORNEY DELAHAY - They could if they wished and they might to provide the power, I don't :now, But your're talking a. another party then, COUNCILMAN WAGONER - Yes, I realize that. MAYOR O'REILLY - Councilwoman Glick, COUNCILWOMAN GLICK - Just along that same line, doesn't the• franchise that KUSCO currently has with the City expire 198! 1986 or somewhere in there? CITY ATTORNEY DELAHAY - The contract we have with KUSCO, I believe expires in 1987. Unfortunately, the gas supply expires in 1986. ! COUNCILWOMAN GLICK - So we would have a negotiating point there, right? COUNCILMAN WAGONER - Right, I just bring it up. I think we , should look into the viability as to #1 what it says in the contract about if we do have an option to take it back, i was under the assumption because I was told once - I didn't read the contract - but I was told - I asked them if there was a clause in r. there and they said there was a reversion clause in there. But apparently there isn't, I think we should research that and then a we should ask BEA. You know here is a way to solve the problem. - Let us buy the utility back. Tell us how much you paid on the bonds, tell us how much you put in improvements, go to the City, l as for a grant, take it back, We can buy our power from Chugach Electric as well as having HEA buy it from them. I mean you know, they don't generate none of their power. So who are we kidding? They got a free ride out of the deal. , i MAYOR O'REILLY - When you have an amendment before us, Clerk read 1 that back to us. i CITY CLERK WHELAN - Amend the motion on the floor to restrict the 500 payment to the XCL system and all payments would terminate on full payment of the bond on the system. CITY MANAGER BRIGHTON - Do you rind if I ask her to read that -i 8 1 j a u d again? CITY CLERK WHELAN - Amend the motion on the floor to restrict 50% payment to the old KCL system and all payments would terminate at full payment on the bond in the system (inaudible), CITY MANAGER BRIGHTON - I think what he means is that the City's 50% contribution would no longer exist after they become full owner of the utility, Isn't that what you were saying? COUNCILMAN MUELLER - Correct, MAYOR O' REILLY - Okay, Ready for the vote on the amendment? Clerk, call the roll, VOTE - Amend - Yess Councilwoman Glick, Councilmen Malston, Measles, Mueller, wagoner, Nos Councilmen Wise, Mayor O'Reilly, CITY ATTORNEY DELARAY - (inaudible) MAYOR O'REILLY - You now have a motion before you as amended. Does everybody understand that the amendment substantially changes the motion? Read the motion, COUNCILMAN WAGONER - Where do you want it stuck in? I think we all understand the amendment, so I'll real the motion. The amendment is just an addition. I move that the City of Kenai make the following counter-offer to BEAs 1, BEA will make no claims for relocation work done prior to 1-1-83, 2, The City of Kenai will pay 50% of all relocation costs of power poles requested on the part of the City of Kenai after 2-2-83 other than those which are replaced for maintenance reasons only, I think probably some understanding is in there what you and the lay ar taik6d aboutf right? 9 CITY MANAGER BRIGHTON - Right. COUNCILMAN WAGONER - All right. Then in parenthesis I put, any time HHA replaces any poles due to maintenance, they will clear this with the City of Kenai Public Works to avoid conflicts due to a yore -planned capital improvement project. In other words, there could be some savings if we foresee a project going on and they're going to relocate a pole or replace one any way they might as will move it 5 feet at that (inaudible) and it shouldn't (inaudible). MAYOR O'REILLY - Okay, that's the original motion with the amendment as passed, COUNCILMAN WAGONER - With Dick's amendment, yes. MAYOR O'REILLY - Yes. Are you ready for the vote on the motion (inaudible). Clerk, call the roil. VOTE - Yes: Councilwoman Glick, Councilmen Malston, Measles, Mueller, Wagoner, No: Councilmen Wise, Mayor O'Reilly, A� G✓ •�vZ-F� ` C, 10