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HomeMy WebLinkAbout1981-04-01 Council MinutesAGENDA KENAI CITY COUNCIL - REGULAR MEETING APRIL 1, 1981 - 7:00 PM PLEDGE OF ALLEGIANCE A. ROLL CALL AGENDA APPROVAL B. PUBLIC HEARINGS 1. Ordinance 659-81 - Increasing Rev/Appns - CEIP Streets, 1980 - Surveying and Platting Lawton, Walker, Tinker, Rogers, Main St. Loop, Barnacle Way - $4,000 2. Ordinance 660-81 - Increasing Rev/Appns - Installation of water Service Line, Faucets and Drinking Fountains at Ball Fields South of Airport - $3,000 3. Ordinance 662-81 - (Substitute) Increasing Rev/Appns - Water & Sewer, Section 36 - $124,205, Gen'l Fund; $998,410, Capital Project C. PERSONS PRESENT SCHEDULED TO BE HEARD 1. Carmen Gintoli - M&O on Cultural Facility D. MINUTES 1. Regular Meeting, March 18, 1981 E. CORRESPONDENCE 1. Airport Manager Swalley - Ad Hoc Airport and Airport Lands Committee F. OLD BUSINESS G. NEW BUSINESS 1. Bills to be Paid, Bills to be Ratified 2. Requisitions Exceeding $1,000 3. Ordinance 663-81 - Increasing Rev/Appns - Iizstitutivnal Library Service - $2,900 4. Ordinance 664-81 - Increasing Rev/Appns - CEIP Streets, 1980 - Provide Monies fox Engineering of water Lines,.Main St. Loop, Barnacle Way - $2,000; and water & Sewer, Walker Lane - $4,200 5. Ordinance 665-81 - Increasing Rev/Appns - Repair Police Vehicle - $1,800 6. Ordinance 666-81 - Increasing Re%,/Appns - Utility, Janitorial & Operating Supply Costs for City Administration Bldg., Remainder of Fiscal Year - $7,500 I i r +. I _�_,_.- - -- �s�.4�+1��t�,rsa•.�aw4��il..ae�.�...rw-�._.,."..-..._..__._.. - - - - - - - �- r�iA I; . 7. ordinance 667-81 - Increasing Rev/Appns - Repairs to Line Arts Center - $1,000 S. Ordinance 668-81 - Increasing Rev/Appns - Recognition of Donation from ARCO Alaska, Inc. for Recreation Equipment - $500 9. Resolution 81-36 - Setting Interest Rate for Notes on Sale of City Lands 10. Resolution 81-37 - Expressing City Intent to Use Any Funds Received from State Municipal Assistance Supplementary runds for Reduction of Taxes 11, Resolution 81-38 - Transfer of Funds - Condiments and Other Supplies for Recreation Center - $2,500 12. Resolution 81-39 - Transfer of Funds - Safety Alarm for Library Door & Replace Lighting Fixture - $504 11, Resolution 81-40 - Transfer of Funds - Change Orders #1682 - Coastal Inc. Contract - $.1,907 14. Resolution 81-41 - Awarding Sewer Treatment Plant Outfall - Brown Const. - $120,576 15. Resolution 81-42 - N. Kenai Spur Water & Sewer - Doyle Const. Co. - 0977,024.53 16. Trans -Alaska Engineering - Water Sewer, Section 36 - Inspection Services - $4,588.83 17. Dowling -Rice i Assoc. - Recreation Center - $3,284.37 18. Blazy/G&S - J/V - Recreation Center - Per. Pay Est. #6 - $60,294.93 19. Alaska Boiler & Heat Exchange Service, Inc. - Warm Storage Bldg. - Per. Pay Est. $5 - 012,340 20. Coastal Inc. - Airport Electrical, Change Order N1 - $1,806.19 21. Pat Porter - Approval of Senior Citizen Grant Application 22. Discussion Concerning Change Orders on Warm Storage Building 23. Discussion - Kenai spur/Frontage Rd. Extension 24. Discussion - Recreation Center Report 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 Y i I HENAI CITY COUNCIL - REPa iAR NED77 O, MLNUTE.B TiML 1, 1981, 700 PM MU PUBLIC SAIM Y =IDIW MAYOR VIN= G' TcBILLY PRESYuMG P!TEDGE OF ALLP-/'IANM Mayor O'Reilly requested a moment of silence for the recovery of the President and others injured. A. HOM CALL Presents Betty Glick, Jess Hall, Ray Measles, Dick Mueller, Thar Wagoner, Vincent O'Reilly Absents Pon Malaton (exetwo l) AGE= APPROVAL 1. Mayor O'Reilly asked the letter to Glad Realty be discussed under H-REFORTB. 2. Mayor O'Reilly said Administration has asked that items G-4, G-5, G-7 be given their 2M reading this night (4-1-81). 3. Mayor O'Reilly said Administration has asked that the B. Tba*son lease application be considered under item G-25. 4. Mayor O'Reilly requested the letter from Jones & Watkins be added under B-1, City Manager's Report. Council approved the additions and changes to the agenda unAn- imously by voice vote. B. PUBLIC HPAR= B-1 Ordinance 659-81 - Increasing Rev/Appns - CEIP Streets, 1980 - Surveying & Platting Lawton, Walker, Tinker, Rogers, Main St. LOOP, Barnacle Way - $4,000 MXICNs Councilman Measles moved, seconded by Councilwoman Glick, to adopt the ordinance. There was no public comment. Motion passed unanimewly by roll call 'vvW. B-2 Ordinance 660-91 - Increasing Rev/Appns - Installation of Water Service line, Faum*s and Drinking mountains at Bali Fields South of Airport - $3,000 i i I i� I' I •. iQitW CITY CXV-11L ^ AML 1, 1981 Page 2 MOTIONS CauVilm3 n Mueller moved, seconded by Cauncilwvmarn Glick, to adopt the ordinance. There was no public mom ant. bbticn passed unanimously by roll call vote. B-3 Ordinance 662-81 - (substitute) Increasing Rev/ARM - Water i Sauer, Section 36 - $124,205, Gen'1 Funds $998,410, avital Project MO &=S CawYciluan bailer moved, eavondad by Councilman Measles, to adopt the ordinance. There was no public comment. Atty. Delahay noted this was a substitute ordinance. M0=, Amandmmts Councilsnaln Mueller, with content of Second, moved to sub- stitute the substitute ordinance for the original ordinance. Motion passed unanimously by roll call vote. C. PERUM PRRSM SC=UI M TO 20 HLVV C-1 Camm Gintoli - MW on Cultural Facility Ca=m Gintoli explained there had been a lengthy discussion at the work session, Councilmen Measles and Hall mere not there. So he asked to bring it to Council. $166,000 is the worst condition situation. Councilmman Wagoner said he had checked, and insurance would be $41,700 per year. Finance Director Brawn explained the figures ware derived from print policies. Councilman Hall rated when he left in Feb., the figure Bras $5 Million. Fran explai3ed the Cultural Facilities Committee would like to know the feelings of the Council. Couuci1W= an Glick said she thought the main Concern is the cost. She asked, Mr. Gintoli said the recommendation he re- ceived was for 400-750 seats. If we did that, how much would it cut off? W. Gintoli replied, probably $1 billion to $1-1/2 Million. CWwilaan Mueller said he has reviewed this with other capital improvmast proposals. The harkxjr and Cultural Facility, with the current mill rate would be at J 25 mills. He has a hard time supporting this. Mayor ('Reilly I0 AU CITY OWNCIL APRIL 1, 1983, Page 3 suggested a work session April 6, 1981 to develop some altr=ato Ideas. Council agreed to the meeting date. Mr. Gintoli noted the drawings are available in his office, and corrected the report by the Peninsula Clarion that the drawings had been done in New York, Mr. Gintoli had done them. D. 14DX17ES D-1 Vagular Meeting, March 18, 1981. Clerk Whelan said Public Works Director Kornelis had requested page 9, paragraph 1, lines 8 through 11, be changed to read, "---will match $750,000 if it goes over, we would have to make up the difference. He expects it to stay under the $1,500,000, but has applied for $840,000, just in case the bid comes in higher. Councilman Malston asked, where does the $124,000---11. Clerk Whelan said Public Works Director Kornelis had requested page 18, last paragraph, last line, be changed to read, "Frontage Road that WABO M FAA property, most of it---". Councilwoman Glick asked that page 20, item I-1, after the last sentence, the following be added, "Councilwoman Glick acknow- ledged the fact that she was asked W Librarian DeFbrest to let the library people know and also she did apologize. There was no intention on her part or Public Works Director Kornelis to ignore the library in this matter." Councilmen Mueller asked if page 10, item 3, line 5 could be ganged. City Manager Brighton said to add "the City was given the bill for the plaque." Councilman Mueller asked that page 13, line 15, the ward "lease" be changed to "contract." Councilman Mueller said page 14, item H-4, line 1, be corrected to read 11$2800" instead of $25,000. Minutes were approved and changed and corrected. E. CORRESPCNDE= E-1 Airport Manager Swalley - Ad Floc Airport and Airport Lands Committee A work session for the Airport/Real Estate Committee was scheduled for April 13, 1981 to review Airport Manager Swalley's letter. Council suggested additional items for 4 KENAI CITY COUNCIL APRIL 1, 1981 Page 4 discussion: Ganges in airport regulations and a proposal for a short term parking lot. Council agreed to the date and discussion items. F. OID BUSANM None G. NEW Btl4n=S G=1 il. % ra-id, NYEZONs Oouncilwmw Glick moved, seoonded by Councilman Measles, to approve the bills as submitted. Lotion passed unanimously by roll call vote. Cr-2 Requisitions Eweeding $1,000 DDTIOIJs r� Oouncilwmw Glick moved, seconded by Councilman Mueller, to approve the requisitions as submitted. Motion passed unanimously by roll call vote. G-3 Ordinance 663-81 - Increasing Rev/Appns - Institutional Library Service - $2,900 M ONs Councilman Measles moved, seconded by Councilwoman Glick, to introduce the ordinance. Motion passed unanimously by Loll call vote. G-4 Ordinance 664-81 - Increasing Rev/Appns - aw Streets, 1980 - Provide Moms for Kn9inxeri ng of Water Lines, Main St. imp, Bartwele Way - $2,OOO1 and Water & Sewer, Walker Lane - $4,200 Myl'IONs Councilwcman Glick moved, seconded by Councilman Mzeller, to introduce the ordinance. Lotion passed unanimously by roll call vote. a IWLCITY COUNCIL APRIL 1, 1981 n Page 5 MD=, 2nd headings Councilwoman Glick moved, seconded by Councilman Measles, to }rave the 2nd readbw of Ordinance 664-91 tH.is d»t. 1%41 v1) . Motion passed unanimously by roll call vote. MDams Councilwoman Glick moved, seconded by Councilman Measles, to adapt the ordinance. There was no public ont. Motion passed unanimously by roll call vote. G-5 Ordinance 665-81 - Increasing Rav/Agpns - Repair Poliva Vehicle - $1,800 MJ'1=S Ommcilman Measles moved, seconded by Councilwoman Glick, to introduce the ordinance. Motion passed unanimously by roll call vote. M NION, 2nd Readings Council== Glick moved, seconded by Councilman Measles, to have the 2nd reading of Ordinance 665-81 this date (4-1-81). Motion passed unanimously by .roll call rr<< . MOTIONS Councilwoman Glick moved, seconded by Councilman Haller, to adopt the ice. There was no public com ent. Motion passed unanimously by roll call vote. G•6 Ordinance 666-81 - Increasing Rev/Apgns - Utility, Janitorial S Operating Supply Cow* for City Administration Bldg., Remainder Of Fiscal Year - $7,500 MDT=t Councilman Mueller moved, seconded by Councilman Measles, to introduce the ordinance. i-� F - 1 i r IN&U CITY allML �. AML 1, 1991 Page 6 Notion passed unanirncusly by roll call vote. Cr7 Ordinawe 667-81 - Increasing Rev/Appns - Repairs to Pine Arts Cuter - 01,000 M3't=$ Councilman Measles moved, seconded by Wuncilman Mueller, to introduce the ordinance. Motion pasgwA unanimously by roll call vota. MDTIQtt, 2nd Warings Councilman Measles moved, seconded by Oo =iluvm Glick, to have the 2nd reading of Ordimm 667-81 this date (4-1-81). Council= Wagoner asked if the person saho owns the auto has insurance, and if so, chat is being done? Atty. Delahay replied the driver and the owner have w insurance. The possibility of recovery is such that the city is better off claiming insurance. Motion passed unanimously by roll call vote. MOTIONt Councilman Measles immad, seconded by Councilwoman Glick, to adopt the ordinance. There uw no public eomnent. Motion passed unanimously by roll call vote. G-8 Ordinance 668-81 - Increasing Rev/Appns - Recognition of Dona- tion from AMD Alaska, Inc. for Recreaticn Equip. - 0500 b X=S Council-= diseller moved, seconded by Councilman Measles, to introduce the ordinance. Motion passed mmimmly by roll call vote. Mayor O'Reilly said letters had been sent by himself and Recreation Director McGillivray thanking them. G-9 Razolution 81-36 - Setting Interest Rate for Notes on Sale Of city WAS Atty. Delahay ewlain©d that there was no figure put in, and tine Council can solect the nambor. w 1 a J i I y.PlW CITY COUDM APRIL 1, 1981 / Page 7 fty= S Councilwoman Glick moved, seoomded by C..ancilman Mueller, to adopt the resolution. MDtion passed unanismmmisly by roil call vote. Councilman Hall suggested a 9% figure. Councilman troller suggested a 10% figure. Ruby Coyle spoke. She didn't think the City shoulll set a rate lowar than the bm* dow. If that do, t hol are in co petition with the land owners. City Manager Brighton said the principle will go to dedicated funds, the interest can be used for airport JW. Councilman Hall said to Mrs. Coyle, the FAA lands are oammarcial. Mrs. Coyle replied some private land owners have commercial land. The City does not need the money right now, and should hold the land for the future, and not be in competition with private land owners. VOM, Interest Rate on Items G-9s Five votes for 108, one vote for 9%. Interest rate was aRt at 10%. G-10 Pasolution 81-37 - Expressing City Intent to Use Any Funds Received from State Munieiral lrsistance Supplementary Ptuids for Reduction of Taxes MOTION: Councilamxman Glick moved, seconded by Councilman Wagoner, to adopt the resolution. Them was no public comment. Wtion Passed with councilman Females voting iso. 0-11 Resolution 81-38 - Transfer of Funds - Condiments and Other Supplies for Recreotion Center - 02,500 DiOTIONs Councilman Measles moved, scoondod by Councilman Mueller, to adopt tba resolution. There was no public oommont. r � s W= CITY OMML IMM 11 1981 Page 8 Notion passed unanimously by roll call vote. G-12 Resolution 81-39 - Transfer of Funds - Safety Alarm for Library Door & Replace Lighting Fixture - $500 MOTlONs Councilman Measles moved, seconder] by Councilwoman Glick, to approve the resolution. There was no public Comment. Notion passed unsani=usly by roll call vote. G-13 Resolution 81-40 - Transfer of Funds - Change Orders $1 & #2 - Coastal Inc. Contract - $1,887 MOTION: Councilwoman Glick moved, seconded by Councilman Mueller, to approve the resolution. p� There was no public mot. •1 Notion grassed unanimously by roll call vote. G-14 Resolution 81-41 - Awarding sewer Treatment Plant putfall - Brown Const. - $120,576 MMONs Councilman Mueller moved, se= i by Councilman Measles, to approve the resolution. Public Works Director Kornelis requested that the resolution be changed to read that EPA has approved the project. Don Brown of Brown Construction, spoke. He said the bid was submitted Feb. 25, 1981, and was delayed till April 1, 1981. ` The good tides for this work are May 31, June 1, June 30 to - July 4. He has received a telegram from his distributor that it will be 12 to 14 weeks for delivery. There is not enough time to put this in. Tides and the Stateside strike make it impossible. He suggested bidding next year. Public Works Director Kornelis replied the delay was because of -- action by a government agency. Approval was within the time frame. The City is within their contract rights. There are low tides in August, but not as good as July. He re= m xw - awarding the Project, if there is any problem we can go to the KEW CITY CX"JCTL APRIL 1, 1981 Page 9 next bidder. Mr. Brown saiu he sees no reason to not accept the job, but there will be a delay. He is asking for a time extension to finish the job if the City awards it, He noted the plant should go on the line July 1, this would not affect the plant start-up. Motion passed unanimously by roll call vote. G-15 Resolution 81-42 - N. Kenai Spur Water & Sewer - Doyle Const. Co. - $977,024.53 MOTION: Councilwoman Glick moved, seconded by Councilman Measles, to approve the resolution. 7here was no public conment. Motion passed unanimously by roll call vote. G-16 Trans Alaska Engineering - Water & Sewer, Section 36 - Inspec- tion Services - $4,588.93 G-17 Dowling -Rice & Assoc. - Recreation Center - $3,284.37 G-18 Blazy/G&S - J/V - Recreation Center - Per. Pay Est. #6 - $1,886.19 G-20 Coastal Inc. - Airport Electrical, Change Order #1 - $1,686.19 MO' =s Oouncilman Measles moved, seconded by Councilwoman Glick, to approve the bills. Notion passed unanimously by roll call vote. U I G-19 Alaska Boiler & Heat Exchange Service, Inc. - Warm Storage Bldg. - Per. Pay Est. #5 - $12,348 Mayor O'Reilly noted Alaska Pacific Bank is a consultant for this company, but he has nothing to 8o with the account. He z will abstain fwm voting. --;;T Councilman Measles moved, seconded by Councilwoman Glick, to app=ve the bill. Notion passed, with Mayor O'Reilly abstaining. t I XMM CITY CIMICIL APRIL 1, 1981 Page 10 G-21 Pat rorter - Approval of Senior Citizen Grant Application MOTION: Councilman Measles moved, seconded by Councilwoman Glick, to authorize the City Manager to sign the grant. Motion passed unanimously by roll call vote. G-22 Discussion Concerning Change Orders on Warm Storage Bldg. MOTION: Councilman Measles moved, sse=xW by Councilwoman Glick, to approve the billing as sutmitted this date (4-1-81). Motion passed unwi wusly by roll call vote. G-23 Discussion - Kenai Spur/Frontage Rd. Extension M TION: Om=ilwwan Glick moved, seconded by Councilman Measles, to direct the City Administration to proceed to amend the Doyle's contract to include the work as described in the maro. My=, ant: Councilman Measles moved, seconded by Councilwoman Glick, that the Admds:istration also amend the design contract to Wince, Corthell & Bryson. Motion, as amended, passed unanimously by roll call vote. G-24 Discussion - Recreation Center Report Recreation Director McGillivray reported the sauna and whirl- pool bath installation will be discussed at the next Recreation CImmittee meting. They will not be purchasing exercise equip- ment, they do not wish to go into competition with private facilities. Council agreed to this action. Recreation Director McGillivray asked if the $6,000 allocated for exercise equipment could be used for additional equipment for the Center: microwave, vacuum cleaner, washer/dryer and a juke box. Councilman Wagoner notod some of ti m items are of a high -maintenance nature. Also, he would dike to have the i I I L - I i KM CITY COUNaL APRIL 1, 1981 Page 11 City stay out of the juke box business, it is high-mintenance equipment. City HouVw Brighton, said Mr. McGillivray had an itemized list of requested item f,-= the Recreation Committee. MX=s Councilman Measles moved, seconded by Councilman Moller, to approve the reoommeadatiotss of the Recreation CavAttee, Motion passed unanimously by roll call vote. Councilman Moller suggested the Cmdueo pursue a coin op- erated jWw box before purchasing ow. C-25 S. gmp= lease Application City Manager Brighton explained this item was not in the packet because it was not completed by Friday (3-27-81). Planning & IL I I Zoning Commission had approved the concept lease, but wanted a site plan. Mr. "xxqxm submitted this, and planning & I Zoning was contacted by "w. Tim is of the essence, it is a tourist business. Mr. 2mveon has stated he will start within 24 hours after approval. City Manager Brighton noted Mr. 2wapson has made a request to purchase, but m has not released this for sale at this time. Councilwoman Glick moved, se=ided by Councilman Measles, to approve the lease to Mr. 7honwon. Mayor O'Reilly noted Alaska Pacific Bank will not do the fi- nancing, so he will not have to abstain. HOWever, he did speak with mt. Thompson. Motion passed unanimously by roll call vote. H. rewoxs ij H-1 City Manager City Manager Brighton spoke. 1. Regarding the Daubenspeck property houses disposal. Mr. Daubampe* had expressed an interest in using them for two months this st=nr. They will pay 0500 per month per house, for a total of 03,000. Administration had suggested they buy if they were interested, but ft. Daubenspeck was not interested after this year. Councilman Wagoner suggested the City proceed XENU CITY OOLTAML ANAL 1, 1981 Page 12 jointly to lease and get ready to advertise. Lf we wait till Pall, it is too Ute to start proceedings. 2. Mr. Brighton said he is under negotiation to repurchase the How tracts. He has had several meetings with Mr. Roper and he is Confined within the terms of the lease. Mr. tapper has made several proposals, now of which rRr. Brighton feels are acceptable. Mr. Rver then hired a real estate fistm. Their Proposal was submitted this date (4-1-81). Mr. Brighton felt this was also unacceptable. Upm requem frcr. Mayor O'Reilly, Councilman Mueller explained Mr. Roper iz offering to put UP a surety bond or escrow funds to offset the lien if we are to close Prior to the liens being released. Councilman Wagoner moved for the Council to direct the City Manager to acknowledge receipt of the proposal and the Council continue to maintain the previous offer of $250,000 ucered; this offer will remain in effect until June 1, 1981. If not axePted, they will withdraw the offer of leases and permits in question. Notion died for lack of a second. Mayor O'Reilly asked if there was a time limit in the original negotiation. Mr. Brighton replied no. Councilman Hall noted there was a 037 Million cost, and a $1.2 Million maintenance Cost. DId the Council Come to any eoncensus7 Mr. Brighton replied the Council agreed with the engineering firm that a one year study was necessary. Mayor O'Reilly said the Harbor Commission was dLsapgointod in the size of the figures. The Council felt that in any event, a one year study was necessary. If the study Comes out favorable, we make an offer to purchase at $250,000. Based on that, the City Manager was directed to start negotiations. Q=cilman Measles moved, seeded by Oouneilman Mueller, for the City of Kenai to stop any further discussion or negotiations in regards to the present proposals of the Roper leases. vice Mayor Glick toot. the chair. Mayor O'Reilly asked Mr. Brighton, have the negotiations gotten dawn to where he feels the best offer of the City is understood and rejected by Mr. Roper, is there flexibility? Mr. Brighton replied, in his opinion, he thinks theu:e is sane flexibility regarding the offer. There is a great deal of frustration on his part in regards to getting the leases wed. That APRIL 1, 1981 Page 13 ' is Mr. W4)er's problem. Mr. Brighton further stated he: is not 0139)9 ting that to continue negotiatfon- will- ;ett_le it, but he thinks there is snom for further nogotiaLions. M7r=, Amendment: Mayor O'Reilly moved, se=xW by Councilman Wagoner, to offer to continue to negotiate on the t of Councilman Wagoner's suggestion; and to continue until 12:00 Noon, April 15, 1981. Mayor O'Reilly emphasized this is the highest offer we can go. This is State money, we cannot be held up by personal interests. Councilman Hall asked, in light of what's happened, what is the City going to do if they get the property? Mayor O'Reilly said there are a number of factors inmolved: a. We don't know what the results of the study will be. b. if costs of maintenance are too high, alternative uses will be contemplated. ; c. Momentum: The Harbor Com d.ssion has spent two years on the project, that fact has value to it. We have lost a grest deal if we wait a year and try to start then. - Councilman Hall noted we still have other property down there that we can put dry storage on. He felt the City has reached an impasse. Councilman Wagoner said the thing that was a px+ob- lem at the time was operating costs and maintenance costs. Tbere + - were contingciss built in. Councilman Hall asked, can the encorances be reasonably taken care of? Causci7man WagossPx replied, when Mr. Roper leased, it was without entrances. He would like to get it back without enci. rir. Brighton noted there Is $189,000 in liens. Atty. Delahay said regarding the escrow, the City had that possibility in Feb. We did not have in the agrewent that he should have time to clear. Mr. Roper is in court on that now. By the time this goes tlnnough the courts, it might be 1-1/2 years. Fran a legal standpoint, Atty. Delabay said he had no problws. VM, Amendments Motion failed, with Councilwoman Glick, Cm=ilman Wagoner, Mayor O'Reilly voting yes; Councilmen hall, Measles, Mealier voting no. Cotascilwoman Glick asked, it is the intent of the City to cease and desist with negotiations and once Mr. Roper realizes we are in earnest, if he comes in with an offer, does that wean we will not consider it? Councilman Measles replied, any further offer can be considered. Councilman Hall noted any o $,� 4 t.,- brought to the City would have to be considered. Councilman 0 1WTAI CITY COUNM A UL 1, 1981 Page 14 29seller noted any prap=W brought to the City that did not include deletion of liens would not be considered. VOTE, Main Motion: Motion passed mmimously by roll call vote. Mayor O'Reilly resumed the chair. Oouncilumax Gluck asked City Manager Brighton about the Oiler lease. Mr. Brighton replied at the last meeting, Cmmci.lman Measles maA-a motion to restrict any huts or discussions of oiler leases with the exception of the $1 lease. Since that time there has been discussion to retain part of the agreement. if the contract is cancelled, they can keep the structures. Ilse original agreement said $10,000 structures or less could be removed, in the new lease that was removed. Atty. Delahay explained by reducing it to $1 per year, they cardrot rive the structures. Mr. Brighton said their Board feels it is a restraint on them doing any additi=l building. Mayor O'Reilly noted they are a non- profit operation, their charter reads that if they dissolve, all assets revert to the ccumity. glat could they sell that could be used by anybody? Wuncilman Measles said the only reason to drop the rate was to retain the structures in case they leave. Councilman Wagoner asked City Manama Brighton about the Daubenspeck junk pile. Mr. Brighton replied it may have to be surveyed to find out if it is on City property. Administration was directed to check into it. H 2 City AtbOrney Atty. Delahay spoke. 1. Regarding the Salamatof lease. it is in bankruptcy, chapter U. there is money due on the lease. Zhis is a business that is important to the e=xmdes of the City. He reeiuested Council make a decision for Administrative guidance. He reoomnmxW the City waive the penalty and get payment, and avoid oonflict in the bankruptcy court. Mayor O'Reilly said Alaska Pacific Bank has the 1st unrtgage on Salamatof, he will refrain from voting. Atty. Delahay said $12,o00 is their offer to pay. Councilman Mueller mowod, seconded by cmmcilwnman Glick, that the City accept their proposal as specified by Atty. Delahay. IE1A-I CITY CC VIL n APRIL 1, 1991 Page 15 Motion passed unanimously, with Mayor O'Reilly abstaining. 2. Regarding the T&D lease. These aLe listed as assets of Salamatof. The leases have never been assigned to Salamatof. The City received a letter form Mr. Yeasel's attorney stating that they are no longer interested in the land. Salamatof is also no longer interested in the land. Atty. Delahay would Like authorization to cancel the leases at same date, which would save going to court to cancel, providing we do not lose the nosy due, about $9,000. We may be able to re -lease the Ply MNION: Oa=ilman Wagoner moved, seconded by Ocx=i]man Measles, to direct the City Attorney to notify the party of their intent to consent to cancel the leases, effective April 1, 1981, not forgiving any funds due. Motion passed unanimously, with Mayor O'Reilly abstaining. 3. Regarding City lards. He has received a letter from Mr. Strickland (FAA) regarding what they intend to do with City lards. Atty. Delahay said his objection was that all proceeds will be used for airport purposes. The original purpose of writing to them was to be able to sell to the lease -holders without going to public sale. They had some objections. Atty. E)P- hay reviewed these objections. He noted the most Pro- hibitive were taxes and appraisals by FAA. He added if they don't accept any recommendation, we will put than all up for public sale. Councilwoman Glick said, regarding the City lands macro to Council. About the time the Council gets a call, it has been her experience they have tried to work with the Administration, and when they cannot get any satisfaction, they came to Council. This is what happened with Gail Glad. She resents the remark regarding the influence Mrs. Glad has on Council. The tone of voice was because Council members thought that the minute the Ordinance became effective, we could sell the lards. The idea was to get some of the lands on the market. Her understanding was the City Manager knew these were to be released for sale. As to the sales agreement with the City, if Mrs. Glad was aware of the sale, if there was a problem, she should have been made aware of this. She th fight the land would be ready for sale. In the past we have been criticized for holding land, we have worked on this for a number of years. It seems to her, Council- woman Glick continued, that if Administration was aware of the intent of Council, this could have been an on -going process. She noted she furls it hard to realize we had to wait till an n IRLCITY 00=IL APRIL 1, 1981 Page 16 ordinance took effect before we could cork on land sales. Since we are only working with two pieces of land, these items should not have realized that much confusion. She feels .m should -apologize to V rs. Glad iGr b-tltements made. Atty. Delahay said this was a ircation from Counsel to Client. It was not published. The innuendos were resezvations. State law provides the realtor have a signed listing from the owner. The City Manager is given the authority to give exclu- sive listings, if he so chooses. In this case, Mrs. Glad called him regarding sale of City lands. He gave her reasons for not selling. The reason for the remarks was to point out exactly where we are ding. 7he ordinances was started last August, am.1 --npectations that we would have lands on the mar- ket is asking too much. As for offers she brought in, he told her she was premature. As for commission, comparisons to salaries was apropos. The City Manager was acting under my advice. Rb do it orderly will, in the long run,benefit the City. Councilman Mueller said a real estate broker does not have to have a listing. R'hey can present any offer on any property. Atty. Delahay agreed, but in this case we have a party being brought forward without asking the City if this offer is open. The seller does pay o0am ssion. Councilman Mueller replied we cannot collect commission without signing a listing. Councilwoman Glick said she has no problem with being orderly and if we had hordes of people asking for laid, but we are dealing with two parcels of land. She believes the City Manager was aware that offex was coming in. Whether or not the purchaser went through an agent, it is not our concern. Councilmen Measles and Wagoner stated that is our Pity, we have the right to question if we pay a o mraission. Councilman Wagoner said he rated in affirming the last time, we just set a percentage rate, we didn't hear the whole case. He feels we owe Atty. Delahay an apology. He cannot condone a realtor trying to collect 10% when Councilman Mueller says that is the aaxdm = in the State. Councilman Mueller said the problem is the way it was handled. If Administration gave a eoUnter-offer, it could have been handled. Councilman Hall said the dilemma is in the commission. As far as Mrs. Glad's proposal, that was only a proposal. Too much has been made of it. The City Manager at this point does not have enough direction. City Manager Brighton said it was much ado about very little. He agrees we need a standard form on our behalf. that is a matter of time. He has told Mrs. Glad we just need time. He is in agreement that we ought not to pay 10%, this is just an offer, on real estate that is already leased to the City when we can deal directly with the lessee. They are entitled ho something, but not 10%. If a realtor brings a client that is not leasing, they are entitled to 10%. We have sent letters to all lessees that the land will be for sale. The problem can be resolved in about a week. Atty. YMM CITY COUNCIL APRIL 1, 1931 Page 17 Delahay said Councilwoman Glick mentioned there were 2 properties we can deal with. City Manager Brighton haA getting calls ever since the letters were sent. City Manager Brighton said we have at least 10 lessees that have said they are interested. We have told than we will be back when the work is complete. Cbuncilwanan Glick asked, if Mrs. Glad was aware, what is the problem? City Manager Brighton replied, 1) we don't have the forms, and 2) w- did not nave an interest rate. He further stated he had great difficulty with 10% in this situation. We ought to be looking at 4% to 6% fee in this case. Council- man Wagoner said he had a problem with 4%, the City will be paying out of City funds. Why do we need a 3rd party umlved? Cbunc:ilwacnan Glick said regarding the Glad letter, that was just a prrpml. Three things need to be done. in the discussions, were any of these things dome? Atty. Delzliay replied, there are other alternatives, of course. We don't have to do any- thing. It may be longer than a week. City Manager Brighton said we need a form for existing circumstances. Whan we hear f om FAA, we can make changes. FAA negotiations could have no bearing on that. Mayor O'Reilly requested City Manager Brighton to inform Mrs. Glad we will be responding to her letter. H-3 Mayor Mayor O'Reilly spoke. 1. He reviewed the meeting of Mayors and Managers on March 31, 1981. 2. New members rannated to serve on the Mayor's Council an the Aging are: a. Gene Sipperly b. Helen Knight c. Harold Davis MNION: Couneilwoa:an Glick moved, seconded by Councilman Measles, to approve the n--+inees. Motion passed unanimously by roll call vote. 3. Regarding the Dow reception. The President and Senior Vice President were there. The key information is when Dma presents their final report, they will not present the site specific until the Legislature convenes in Jan. 1982. a _ arra tI 9 , MMU C= COUqM APRIL 1, 1981 1010) Page 18 4. Ma;or O'Reilly will meet with Dow Oxmical April 2, 1981. He will pass on the information. 5. He will be in Juneau April 8 & 9, 1981. He would like to see legislatioArregarding our Capital 7provement Pro- posal. He would like to Have City Manager Brighton and Recreation Director McGillivray acoomgx mmy him. Council had no objection. F-4 City Clerk Clerk Whelan spoke. 1. There will be Clerk's seminar in Fairbanks, April 6 to 11, 1981. Costs have been budgeted, if the Council has no objection. Council agreed to the Clerk's attendance. 2. Borough Clerk Brymer called, per request of Councilwoman Glick., there will be a Land Disposal Coand ttee meeting April 2, 1981 at the Public Safety Building in Kenai. 3. Clerk Whelan has submitted a sample Consent Agenda for Council review and discussion at the next Council meeting. H 5 Finance Director Finance Director Brown spoke. 1. There will be a transfer for Winoe, Corthell & Bryson. 2. On Ordinance 664-81, there is no authority for $4,000 for Mike Taurianen on Walker Lan% MOTION: oouncilwotnan Glick moved, seconded by Councilman Measles, to authorize the $4,000. Notion passed unanimously by roll call vote. H-6 Planning & Zoning Councilwoman Glick spoke. 1. There was a discussion regarding the Thonpson lease, this has been discussed at Council. P92M CITY , APRIL 1, 1981 Page 19 2. A preliminary plat for Gusty Subdivision was discussed. 3. Reviewed Iat 7, CHAP, it is available for sale. Counci.laan Wagoner asked if the Kenai Air proposal to develop some land was discussed. Om=ilwmmn Glick said it was approved by Planning & Zoning. Airport Manager Swalley noted it was in the hands of surveyors at this time. H-7 Harbor 00amission Ootusci.lman Wagoner said there had not been a meeting. They were working on a budget for pursuing a second C24 grant. .I. PERSON PRESOU Wr SCHEMM ZO BE WWD 1. Librarian DePorest spoke. She wished to thank Councilwoman Glick and Public Works Director Komnelis regarding the parking problem, and their explanation of the City position. The Board has appointed two manbers to work with the Public Works Oommittes and will solve the problem. i 2. Ruby Coyle spoke. Regarding the Roper, motion, and the decision to have no more negotiations. We should notify him that his lease mmW should be paid immediately. Finance Director Brawn replied he has been sent a bill.. AWOUROM Meeting ,addiommed at 11: 35 PM. /V/-zi K- �3 Janet %helan City Clerk