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Home My WebLink About1981-06-03 Council MinutesR k 9 t t AGEUDA YEIIAI CITY CODUCIL - REGULAR MEETIIIC MUE 3 . 1991 - 700 PM PLEDGE OF ALLEGIAUCE A. ROLL CALL 1. Agenda Approval 2. Consent P4enda * All items listed with an asterisk. M are considered to be routine and non -controversial by the Council and will be approved by one motion. There will be no separate discurzion of these items unless a Council member or citizen so requests, in which case the item will be removed from the Consent Agenda and cot.oideretd in its normal sequence on the agenda as Bart of the General Orders. B. PUBLIC HEARINGS 1. Ordinance 679-81 - Increasing Rev/Appns - Pay- ments to Health Facilities from State Revenue Sharing - 0584 2. Ordinance 680-91 - Adopting Annual Budget for Pascal Year 1981-02 3. Ordinance 681-01 - Amending Kenai Municipal Code to Increase Pay to Certain Employees 4. Ordinance 683-91 - Amendinq Kenai Municipal Code for Increase Uniform Allowances to Certain Employees 5, Ordinance 684-81 - Amending Kenai Municipal Code Relating to Lease of Land on Airport and Restricted to Aeronautical Related Uses 6. Resolution 81-49 - Setting Percentage Rate for iPaze of City Lands (Reconaideratior,) 7. Resolution 81-61 - Fixing Rate of Levy - Property Tars, Pascal Year 1991-82 S. Resolution 81-62 - Award of Janitorial Bid - Various City Buildings 9, Resolution 81-63 - Transfer of Funds - Pidalgo, Bidarka, Barnacle, Caviar, ftdoubt Street Improvements - $9,370 10. Request for Tranofer of Liquor License - Foodtewn Liquor Store C. PERSONS PRESENT SCHEDULED TO BE HEARD I. Carman Gintoli - Schematics for Airport Terminal Building -tt — �-- Ao D, MIUUTEZ 1. i -ular Meeting, may 20, 198i E. C0RRESPONDENCE F. OLD BUSINESS G. flow BUSINESS *11 Billa to be Paid, Dills to be Ratified *2. Requisitions Eswseeding PSI,000 3. Ordinance 685-81 - Increasing Rev/Appne - Paving Parking Let Behind City Pd. Building - 029,000 4. AFProval of Public Utility Regulations and Rates 5. Ordinance 606--81 - Repealing Ordinance 409-78 - Repealing Kenai Municipal Code - Water & Sewer Bates 6. City Administration Building - Omni North Construction - Pay Est. #10 - 0100,244 *7. Warm Storage Building - Alaska Boiler & Heat Exchange - $12,376.44 *8. Sewage Treatment Plant Expansion - Brown 6 Assoc. J/V - Pay Est. $11 - $421,799.63 9. Sewage Treatment Plant Expansion - Brown & Assoc. J/V - Prior Approval, Change Order - 01,971.08 10, Pidalgo 0/0 - Peninsula Engr, - Change Order #1 - 09,369.50 *11, Gary Davis - Administration Coordinator Contract - 05,716.04 „- 12, Lease Application - Blue Mountain Ventures, Inc. - FED S/D - Exchange of Lots = 13. Discussion item - FBO S/D Lots - Open for Lease 14, Discussion - Amendment to Kenai Municipal LIE&Code - Lease of Airport Lands _ 15, Discussion - Award Contract to Dowling/Rice Assoc, - Gymnasium Design -Build Package Preparation H. REPORTS I. City Manager 2. City Attcrnwy 3. Mayor �- 4. City Clerk -p S. Finance Director 6. Planning & Zoisii►y 7. Harbor Commission - I. PERSONS Pf�ESEt;'i° NOT863HEDULED TO BE HEARD ADJOUM MENT KENAI CITY COUNCIL - REGULAR MEETING, MINUTES JUNE 3, 1981 - 7:00 P14 KENAI CITY ADMINISTRA'."IOU BUILDING MAYOR VINMUT O'REILLY PRESIDING PLEDGE OF ALLEGIANCE A. ROLL CALL. Presents Tom Wagoner, Vincent O'Reilly, Betty Glick, Jess Hall, Ron Malston, Ray Measles, Dick Mueller Absents bone AGENDA APPROVAL Councilman Malston submitted an objection to the consent agenda. Mayor O'Reilly asked that item B-5, Ordinance 684-81 and item B-6, Resolution 81-48 be discussed together under item B-11. Council agreed to the change. S. PUBLIC HEARINGS 8-1 Ordinance 679-81 - Increasing Rev/Appns - Payments to Health Facilities from State Revenue Sharing - $584 MOTION s Councilman Measles moved, seconded by Councilwoman Glick, to approve the ordinance. There was no public comment. Motion passed unanimously by roll call vote. B-2 Ordinance 680-81 - Adopting Annual Budget for Fiscal Year 1981-82 MOTIONS Councilman Mueller roved, seconded by Councilwoman Glick, to adopt the ordinance. There was no public comment. NOTION, Amendments Councilwoman Glick moved, seconded by Councilman Malston, to increase General Fund, Operating Budget by $2,500; and increase by $2,500. .p 2o++r•at bQ,} Councilwoman Glick explained the purpose was to increase the Planning S Zonin3 Commission budget by $2,500 in the transportation category. VOTE, Amendments Motion passed unanimously by roll call vote. VOTE, Main Motions Motion passed, with Councilman Wagoner voting no. KENAI CITY COUNCIL JUNE 3, 1981 Page 2 Mayor O'Reilly complimented City !Manager Brighton and Finance Director Bran. for the preparation of the budget. B-3 Ordinance 681-81 - Amending Kenai Municipal Code to Increase Pay to Certain Employees MOTION s Councilwoman Glick moved, seconded by Councilman Malston, to adopt the ordinance. There was no public comment. Motion passed, with Councilman Wagoner voting no. B-4 Ordinance 683-81 - Amending Kenai Municipal Code for Increase Uniform Allowances to Certain Employees MOTION: Councilman Nalston moved, seconded by Councilwoman Glick, to adopt the ordinance. There was no public comment. Motion passed unanimously by roll call vote. 8-5 Ordinance 684-81 - Amending Kenai Municipal Code Relating to Leave of Land on Airport and Restricted to Aeronautical Related Uses MOTION: Councilman r4alston moved that the Ordinance be post- poned to 9-11. There was no second. There was no public comment. council agreed to the postponement. 8-6 Resolution 81-48 - Setting Percentage Rate for Lease of City Lands (Reconsideration) Council agreed to adding this item to B-11. B-7 Resolution 81-61 - Fixing Rate of Levy - Property Tax, Fiscal Year 1981-82 MOTION: Councilman Malston moved, seconded by Councilwoman Glick, to adopt the resolution. There was no public comment. MOTION, Amendments Councilman Measles moved, seconded by Councilman Mueller, to amend the rate to 6 mills and dedicate the difference to maintaining a lower tax rate for a longer period of time. Councilman Measles explained, several things have happened since this was first brought up. The Legislature has changed its budget, we will have to bring up the rate next year to maintain our. services. Councilman Wagoner said there arc other ''di1r�r i'� ---"..�,�cn�nw�r�l►aansmw.�c+o.��-��..—. ._._ : s.,a�... = -= —�Y.. � _ — - - _ -- = e r1 KENAI CITY COUNCIL JUNE 3, 19R1 Page 3 w::IT -:e vw n i' Ll"J6 `viC have plenty of money in other accounts. Councilman Measles said we could keep the mill rate by depleting the fund balance, but he would irate to see the fund balance depleted. Vice Mayor Glick took the chair. Mayor O'Reilly noted it was the intention of the Legislature that the supplemental appropriation be for tax relief. Council has also committed It- self to a 4.2 mill rate. The problem is that if the fund goes down, the first thing to go is supplemental assistance fund. Councilman wagoner said the orgin of the funds was taxes from the citizens for operation and maintenance. He doesn't see any problem with using them. VOTE, Amendment: Motion failed, with Councilman Measles voting yes. VOTE, Main Motion: Motion passed, with Councilman Measles voting no. B-8 Resolution 81-62 - Award of Janitorial Bid - Various City Buildings MOTION: Councilwoman Glick moved, seconded by Councilman Malston, to adopt the resolution awarding the bid for the City Administration Building to Tim Iliesnewski, the Library to Steamway Janitorial Service, the Police to Tim wiesnewski; and postpone action on the term- inal bid till Airport Manager Swalley and City Manager Brighton interview proposals on the term- inal building to lay out exactly what terms will be; with a resolution for the next meeting. There was no public comment. ' Councilwoman Glick said she deleted the airport terminal because of the additional work required and the renovation will require more work in the Fall. Councilman wagoner asked why the Police bid was awarded to the high bidder. Councilman Malston explained the low bid was so low he did not believe it could be done for that amount. Councilman wagoner r"rlied the low bidder should get it and if he cannot do the work then he should be re ,i laced. p MOTION, Amendment: Councilman wagoner moved, seconded by Councilman - Hall, to substitute Day & Night Janitorial bid for Tim wiesnewski for the Police bid. At the request of Mayor O'Reilly, City Manager Brighton explained Jack Castimore could not afford to start a business up with just one job. Council- woman Glick noted Mr. Cove -you of Sure Clean said that was a monthly bid. City Manager Brighton said Mr. Coveyou had said that on the phone, it was not in his bid. VOTE, Amendment: Motion passed, with Councilmen Wagoner, Hall, Mueller, KENAI CITY COUNCIL JUNE 3, 1981 Page 4 Mayor O'Reilly voting yes; Councilwoman Glick, Council- men Malston, Measles voting no. VOTE, Main Motion: Motion passed unanimously by roll call vote. B-9 Resolution 81-63 - Transfer of Funds - Fidalgo, Bidarka, Barnacle, Caviar, Redoubt Street Improvements - $9,370 G-10 Fidalgo S/D - Peninsula Engr. - Change Order #1 - $9,369.50 Mayor O'Reilly suggested Council consider these two items together. Council agreed to the suggestion. MOTION: Councilman Mueller moved, seconded by Councilman Hall, to adopt Resolution 81-63. Public Works Director Kornelis explained, Change Order #3 was to lower the roadway next to the post office. The contractor was given a ten day exten- sion. Councilman Wagoner said if it was done right in the first place, we would not have to pay for this. Wayne Henderson, Peninsula Engineering, spoke. He distributed an updated status report. He explained the additional monies were for increased surveying relating to grade changes and water services. The ten day Extension is related to the Quality Builders extension. There has been substantial increase in the time needed. City Manager Brighton noted the original estimate was a not -to -exceed figure. Mr. Henderson replied the City changed the time limit. Mayor O'Reilly asked, if we turn this down, does the job coma to a stop? Mr. Henderson replied at this time we are at the budgeted figure. Anything further would require additional money. The City would have to provide supervision if funds were not forthcoming. Councilman Mueller asked, does the contractor have unlimited time this year? Mr. Henderson replied they have an unlimited starting time this year. Councilman Wagoner said it looks like the City has incurred extra expense, not the Engineer. City Manager Brighton said he would recommend the Council not allow this charge and turn it over to the legal department to work out. Mayor O'Reilly asked, does the paving job come to a halt? Public Works Director Kornelis replied, no, the City Engineer and Public Works Director would do the inspection if Mr. Henderson chose not to continue. Councilman Wagoner asked, why can't the City Engineer take on the inspection? Mr. Kornelis replied, it is to the City's advan- tage to have full time supervision. Mr. Henderson said he has cut considerably from the amount actually done. He doesn't feel the additional amount is due to his error. As to continuing the work, he has about 40 man hours that he can continue, beyond that he cannot continue. MOTION, Amendment: Councilman Wagoner moved, seconded by Councilwoman Glick, to amend the resolution to read $13,867. E KENAI CITY COUNCIL JUNE 3, 1981 Page 5 VOTE, Amendment: Motion failed, with Councilman Wagoner voting yes. VOTE, Main Motion: Motion failed, with Mayor O'Reilly, Councilman Hall voting yes, Councilmen Wagoner, Malston, Measles, Mueller, Councilwoman Glick voting no. Mayor O'Reilly said City Manager Brighton and Public Works Director Kornelis will have to figure something out on the job. B-10 Request for Transfer of Liquor License - Foodtown Liquor Store Clerk Whelan said taxes were current with Foodtown Liquor Store. MOTION: Councilwoman Glick moved, seconded by Councilman Malston, to send a letter of non -objection to the Alcoholic Beverage Control Board regarding Foodtown Liquor Store. n vio�►-:ov% 6pgss�d[ f+�•�Ariiw�ow�� {�•� ru�� ca�� Vo}� B-5 Ordinance 684-81 - Amending Kenai Municipal Code Relating to Lease of Land on Airport and Restricted to Aeronautical Related Uses Ron Schmidt, National Bank of Alaska, spoke. He didn't question the release of the 50% cap rate. In the past it was attractive to have the City lease land without a down payment. He is all in favor of disposing of City lands. But he cannot make a decision on making a loan without a 50% cap. If the City does that, they may have property they cannot do anything with. Mayor O'Reilly asked if shifting to a higher figure helped?Mr. Schmidt replied it might, there should be some figure that they can deal with. Mayor O'Reilly said the Council is trying to make it attractive to buy, but there will be some that will like to lease. Also, because of the cap, we are transferring moneys from the general fund and subsidizing the lessees. Council- man Hall noted on privately leased property, they do not have a cap. City Manager Brighton asked, has Mr. Schmidt made loans on leases without the cap? The City has only eight or nine with caps out of over 100 leases. Mr. Schmidt replied he didn't know. Councilman Malston said we can remove the cap at any time. We have just started selling land. At this point, he sees no reason to remove the cap. Councilman Mueller said if we feel it is stifling growth, we can put the cap back on. Council- woman Glick said regarding the subsidizing of leased lands, they make a tax base, the general tax payer is not subsidizing development. Councilman Measles said the problem is, once it is written into the lease, we cannot take it out. Councilman Malston said we are here to get land developed, we should not do anything to discourage development. MOTION: Councilman Mueller moved, seconded by Councilman Measles, to adopt the Ordinance. KENAI CITY COUNCIL JUNE 3, 1981 Page 6 MOTION, To Table: Councilman Malston moved, seconded by Councilwoman Glick, to table the ordinance till the last meeting in November (Nov. 18, 1981). Motion passed, with Mayor O'Reilly, Councilwoman Glick, Councilmen Hall, Malston voting yes; Council- men Wagoner, Measles, Mueller voting no. B-6 Resolution 81-48, Reconsider: MOTION, To Reconsider: Councilman Mueller moved, seconded by Councilman Wagoner, for reconsideration of Resolution 81-48. Motion passed, with Councilman Measles voting no. MOTION, Amendment: Councilman Mueller moved, seconded by Councilman Wagoner, to amend Resolution 81-48 to read 7%. Councilman Measles said the 50% cap will mean more -. will hg .gat nbe the general fund, to airport fund, ffo* - we will not increase payments at all. Councilwoman Glick noted a point of order, the Resolution had not been put up for adoption. MOTION: Councilman Mueller moved, seconded by Councilman Wagoner, to adopt Resolution 81-48. VOTE, Amendment: Motion failed, with Councilman Wagoner, Mueller voting yes; Mayor O'Reilly, Councilwoman Glick, Councilmen Hall, Malston, Measles voting no. VOTE, Main Motion; Motion passed, with Mayor O'Reilly, Councilwoman Glick, Councilmen Hall, Malston, Measles voting Yes, Councilmen Wagoner, Muell-r voting no. C. PERSONS PRESENT SCHEDULED TO BE HEARD C-1 Carmen Gintoli - Schematics for Airport Terminal Building Mr. Gintoli said the proposed expansion will extend the terminal 112 ft., with two more entrances. It is also designed for a future second floor. Council- man Wagoner asked Public Works Director Kornelis if he had an architect that has specialized in airport designs. Mr. Kornelis replied yes, but their fees are very high. Mayor O'Reilly noted Mr. Gintoli had done very good work to get it ready in time for Finance Director Brown to take to Juneau. D. MINUTES D-1 Regular Meeting, May 20, 1981 Councilwoman Glick noted page 11, item H-2, Attorney's Report, #1, line 5. She wondered if Atty. Delahay had intended to say what was in the minutes. Since Atty. Delahay was not in attendance, Clerk Whelan KENAI CITY COUNCIL JUNE 3, 1981 Page 7 was asked to check with him. Clerk Note: Atty. Delahay said this was his inten- tion, but he would use the word "afterward" instead of "after" for clarification. Councilwoman Glick asked that page 10, item H-1, City Manager Report, MOTION under #1, be changed to delete the word "for" in line 2. Councilwoman Glick asked that page 13, paragraph 1, line 32, the word "in" be changed to "with." Councilwoman Glick asked that page 15, paragraph 4, line 9, should there be an "s" on the end of the word "get"? Mayor O'Reilly agreed to add the letter. Councilwoman Glick asked that page 16, item H-6, Planning & Zoning Repo::t, #5, be changed to read, "There was a discussion of subdivision rules, but no action was taken. The Borough Assembly has pro- posed that subdivision of 10 acres of more need not be surveyed, platted and recorded. The Borough Planning & Zoning Committee had revised the sub- division regulations requiring any parcel of 40 acres or less had to be recorded. However, there are and have been exceptions granted to these reg- ulations. There was an amendment proposed to reduce this to 5 acres and I am not sure this passed. How- ever the Ordinance itself passed but will be up for reconsideration at the June 2, 1981 meeting. Council- man Hall said if they should pass --- ". Councilwoman Glick asked that page 16, item H-6, Planning & Zoning, #2, the words "for Blue Mountain Ventures" be added at the end of the sentence. Councilwoman Glick asked that page 18, item H-8, Air- port/Land Committee, #1-b, is that what Councilman Mueller intended to say? Councilman Mueller said yes, but for clarification he would change the sentence to read, "They recommended removing the cap on all leases not restricted to airport uses." Councilwoman Glick said page 20, item I, Persons Present Not Scheduled to be Heard, paragraph 1, line 6, the word "building" be added after the word "Administration." Councilwoman Glick asked that page 20, item I, Persons Present Not Scheduled to be Heard, #2, line 1, the word "engineering" be changed to "construction." Councilman Measles agreed to the change. Councilman Mueller asked that page 18, item H-8, Airport/Land Committee, #1-c, the word "interest" be deleted. Councilman Measles asked that page 20, item I, Persons Present Not Scheduled to be Heard, last paragraph, the last sentence be changed to read, "Councilman Measles added, graveled streets where water & sewer is not already in are included in the project." Council agreed to all the changes as submitted. Councilman Wagoner said he thought there should be a better method than going over the minutes word for W-1 KENAI CITY COUNCIL JUNE 3, 1981 Page 8 word. People can refer to tape for legal questions if they want a verbatim transcript. Councilwoman Glick said there should be some synopsis, especially if we have to go back to anything. She asked Clerk Whelan, how long do we keep the tapes? Clerk Whelan replied, forever, according to the Municipal Clerk's Association recommendation. Councilman Wagoner suggested the minutes be just a synopsis and if Council has any questions they can submit directly to the Clerk. Clerk Whelan asked if actual changes in the wording could be done on tape during the meeting, and grammatical changes be done during recesses. G. NEW BUSINESS G-1 Bills to be Paid, Bills to be Ratified G-8 Sewage Treatment Plant Expansion - Brown & Assoc. J/V - Pay Est. #11 - $421,799.63 MOTION: Councilman Measles moved, seconded by Councilman Mueller, to approve the items under the consent agenda. Motion passed unanimously by roll call vote. G-2 Requisitions Exceeding $1,000 MOTION: Councilman Malston moved, seconded by Councilman Mueller, to approve the requisitions. Councilman Malston asked about the Spruce Const. bill. Public Works Director Kornelis explained the FAA cable had to be relocated, it was the City's expense. Councilwoman Glick asked about the Russ Const. bill. When we approved the court, didn't it include that? Mr. Kornelis said, all but a small portion on the back and the lights. He noted Council had already approved that. Motion passed unanimously by roll call vote. G-3 Ordinance 685-81 - Increasing Rev/Appns - Paving Parking Lot Behind City Ad. Bldg. - $29,000 MOTION: Councilman Measles moved, seconded by Councilman Mueller, to introduce the Ordinance. Motion passed unanimously by roll call vote. G-4 Approval of Public Utility Regulations and Rates MOTION: Councilman Mueller moved, seconded by Councilmar Hall, for deletion of water & sewer hook up fees and inspection fees. 8 �crtas�a, -FO 1;z sr MOTION, Amendment: Councilman Malston moved, seconded by Councilman Measles, to change the inspection fee from $25 to $50 for water & sewer. rm KENAI CITY COUNCIL JUNE 31 1981 Page 9 VOTE, Amendment: Motion passed, with Mayor O'Reilly, Councilwoman Glick, Councilmen Malston, Measles voting yes; Councilmen Wagoner, Hall, Mueller voting no. VOTE, Main Motion: Motion passed, with Councilwoman Glick voting no. G-5 Ordinance 686-81 - Repealing Ordinance 409-78 - Repealing Kenai Municipal Code - Water & Sewer Rates MOTION: Councilman Malston moved, seconded by Councilman Measles, to introduce the Ordinance and declaring it an emergency. Motion passed unanimously by roll call vote. MOTION: Councilman Malston moved, seconded by Councilman Wagoner, to adopt the Ordinance. There was no public comment. MOTION: Councilman Malston moved, seconded by Councilman Wagoner, to bring the Ordinance up for public hearing. VOTE, Public Hearing: Motion passed unanimously by roll call vote. VOTE, Adoption of Ordinance: Motion passed, with Councilwoman Glick voting no. G-6 City Administration Bldg. - OMNI North Construction - Pay Est. #10 - $100,244 MOTION: Councilman Measles moved, seconded by Councilwoman Glick, to approve the bill. Mayor O'Reilly asked Finance Director Brown, is there any problem with the 2% retainage? Mr. Brown replied that is acceptable. Councilman Wagoner asked Public Works Director Kornelis if that was enough to cover any problems. Mr. Kornelis replied yes. Council- man Malston asked if they were making any attempt to correct the small problems. Mr. Kornelis replied yes. Mr. Brown noted our retainage amounts to about 538,000. Motion passed unanimously by roll call vote. G-7 Warm Storage Bldg. - Alaska Boller & Heat Exchange - $12,376.44 Mayor O'Reilly stated he will abstain because of the relationship between Alaska PacificBank, himself and Alaska Boiler. MOTION: Councilman Measles moved, seconded by Councilwoman Glick, to approve the billing. t 4f 1� rm KENAI CITY COUNCIL JUNE 3, 1981 Page 10 Motion passed, with Mayor O'Reilly abstaining. G-9 Sewage Treatment Plant Expansion - Brown & Assoc. J/V - Prior Approval, Change Order - $1,971.08 MOTION: Councilman Mueller moved, seconded by Councilman Hall, to approve the change order. Councilman Mueller asked about the improperly installed floor drain, why are we paying for in- correct installation? Public Works Director gornelis explained it was installed in 1972, incorrectly. Motion passed unanimously by roll call vote. G-10 Fidalgo S/D - Peninsula Engr. - Change Order #1 - $9,36 9.50 Council had defeated Resolution 81-63, this made the billing unnecessary. G-11 Gary Davis - Administrative Coordinator Contract - $5,716.04 Councilman Malston said he thought we were paying him a fixed amount. Are all costs in addition? Finance Director Brown explained his contract calls for a low rate with additional charges rather than a higher inclusive rate. MOTION: Councilman Malston moved, seconded by Councilman Wagoner, to approve the billing. Councilwoman Glick asked, regarding the travel, is this specifically related to the Small Boat Harbor or for the edification of Mr. Davis? Mayor O'Reilly replied thab was in the report from Mr. Davis. Motion passed unanimously by roll call vote. G-12 Lease Application - Blue Mountain Ventures, Inc. - FBO S/D - Exchange of Lots City Manager Brighton said at the Planning & Zoning meeting, they had recommended the Council accept the exchange. Ed Brown, President of Blue Mountain Ventures, spoke. They are proposing for the last 5 lots, they anti- cipate extension of the ramp way. They have present access on lots 7 & 8. MOTION: Councilwoman Glick moved, seconded by Councilman Wagoner, for approval of the lease exchange. Motion passed unanimously by roll call vote. G-13 Discussion Item - FBO S/D Lots - Open for Lease City Manager Brighton noted at the Planning & Zoning Commission meeting, they felt those 3 lots are too h KENAI CITY COUNCIL JUNE 3, 1981 Page 11 valuable to withdraw from a lease situation. They thought there were other areas that were better used for parking. MOTION: Councilman Mueller moved, seconded by Councilwoman Glick, to remove the restriction from lots 1,2 & 3. Public Works Director Kornelis said he was not in favor of this because of future expansion. All over airports are having to go out to buy land for expansion. We would be better to hold on to this. Councilman Malston asked, what would the purpose be for? Wayne Regelin, Planning & Zoning Commission member, spoke. He said it is for fish flying. lie felt terminal expansion should be to the north. It should be reserved for large aircraft. Councilman Wagoner said that is fine if it was used for short term basis. But right now we are blocked south. We should look at a new master plan. Airport Manager Swalley said the current plan will be adequate for 8 to 10 years. The only way the terminal building can go is north. They are look- ing at a runway extension that must go north. There are over 120 acres to the north that shoud he surveyed and set aside for terminal expansion. He noted the City could become the #1 alternate for Anchorage. The overall plan is to make it year-round freight service there, with fish haul in the summer. Council- man Mueller asked, are they looking at a permanent structure? Mr. Swalley replied the proposed hanger will hold a DC-4 or a DC-6. Councilman Malston asked, what does the master plan call for on lots #1,2 & 3? Mr. Swalley replied fixed base operators. He feels it is very poor to mix small and large planes. Council- man Wagoner asked, what about the west side? Mr. Swalley replied that is for float plane operators. Councilman Wagoner said the logical thing is to look at the west side. We should not be looking at moving the terminal. Councilman Measles said he has no trouble with the short term lease, just the long term leases. MOTION, Amendment: Councilman Measles moved, seconded by Councilman Wagoner, to limit the leases to five years. City Manager Brighton said the limitation will not permit any construction. It would only be two month leases for fish haul. The request to Juneau was to extend the pad to the north and the area where is substantial availability for expansion. He noted, regarding Mr. Kornelis' statement, he would like to see airports of our size that have that problem. We should utilize any advantage we have for that location. Mr. Swalley said costs will be prohibitive on that basis. Councilman Measles said if we get the ramp expansion, we will open up additional lots for long term leases. Kenai would not like to be the first to find themselves in the position of having to buy land. r- - - IN'tffl'�► .. _ _. _._ .. .... _.—...:. .' ..r�.rtarwy.-- - - - - ..�e�_r�,wn.,n�,RY�Y�y, ai KENAI CITY COUNCIL JUNE 3, 1981 Page 12 VOTE, Amendment: Motion passed, with Councilmen Wagoner, Hall, Measles, Mayor O'Reilly voting yes; Councilwoman Glick, Councilmen Malston, Mueller voting no. VOTE, Main Motion: Motion passed, with Councilmen Wagoner, Hall, Measles, Mueller, Mayor O'Reilly voting yes; Councilwoman Glick, Councilman Malston voting no. G-14 Discussion - Amendment to Kenai Municipal Code - Lease of Airport Lands City Manager Brighton said he understood this was the recommendation of Atty. Delahay. It is to keep people from buying up land and preventing others from leasing. MOTION: Councilman Malston moved, seconded by Councilwoman Glick, to approve the amendment as proposed. MOTION, Amendment: Councilman Wagoner moved, seconded by Councilman Malston, to delete the word "apparently." VOTE, Amendment: Motion passed unanimously by roll call vote. VOTE, Main Motion: Motion passed unanimously by roll call vote. G-15 Discussion - Award Contract to Dowling/Rice & Assoc. - Gymnasium Design -Build Package Preparation. Recreation Director Mt:Gillivray spoke. He said the Recreation Committee was satisfied with the design -build contract of last year. The idea was to go ahead and get this started so when the money is awarded we can go ahead. Councilman Malston noted with the Rec. Center we got a real bargain, we should go ahead. Mr. McGillivray noted there are some proposed changes: a. Provide more complete schematics for bidder use. b. Require complete schematics from proposers. C. Completion date & penalty clause. Councilman Mueller said maintenance & operation costs on the completed structure should be added. Councilwoman Glick said she is not anti -recreation, but she thinks that, regarding the design -build package, in the past with other structures we were criticized for not using an architect, but with this we went the other route. With the amount allotted for construction, we have exceeded the amount. She would like to see the total amount used to date. She has been told by many people that this was not voted on and many people did not know there was a recreation building being built. It will be over $1 Million. She would like to see the overall picture to date with the proposal. KENAI CITY COUNCIL JUNE 3, 1981 Page 13 Ron Rice, Dowling/Rice & Assoc. spoke. He reviewed the costs to date. He noted the cost- of the building is $#63 per sq. ft. Mayor O'Reilly asked if there were any maintenance & operations projections. Mr. Rice said no. Councilwoman Glick asked if City crews were working there. Mr- Rice replied $8,000 to $10,000 worth of man-hours of City crews. Councilwoman Glick asked if the paving was included. Mr. Rice replied, no, just gravel. Wayne Regelin, Planning & Zoning Commission, spoke. He said the approach bothers him. The recreation budget has increased, we don't know what it will cost us or if people will use it. He would like to wart a year and see what the demand is. There are 3 gyms in town already. We can get by. Council- man Wagoner said the 3 gyms ara getting harder and harder to get in to. We cannot get by. He feels the foremost need in the community is for a gymnasium. There may be questions on the maintenance & operations, but not on the need. Councilwoman Glick replied, maybe there is a need, but where are the figures? We have dealt with figures on the culture facility, but we slough over this. We have concern over parks but that should not be our #1 service. We discussed the small boat harbor extensively. Councilman Malston said the gym was #15 on the capital improvements proposal, and we agreed that would probably be built. The Recreation Commission is asking for authority to get a design -build and to go ahead if the money is allocated. MOTION: Councilman Wagoner moved, seconded by Councilman Malston, to direct the Administration to draw up and enter in to a contract with Dowling/Rice & Assoc. in the amount of $3,450 to do preliminary studies on a City gymnasium design -build as outlined in the letter of May 29, 1981. Finance Director Brown asked that the motion include a direction to appropriate the money, MOTION, Amendment: Councilman Wagoner, with consent of second, added the money would be appropriated from capital improve- ment funds. Motion passed, with Councilmen Wagoner, Malston, Measles, Mayor O'Reilly voting yes; Councilwoman Glick, Councilmen Hall, Mueller voting no. H. REPORTS H-1 City Manager City Manager Brighton spoke. 1. At the last Planning & Zoning meeting, they asked to have. a work session with the Public Works Committee, the Land Committee and the Planning & Zoning Commission regarding the subdivision ordinance of the City. The purpose is to make a determination whether final plats will be finalized before acceptance or rejection of streets. They need guidelines on how we aro going to proceed. KENAI CITY COUNCIL JUNE 3, 1981 Page 14 2. There will be a report at the next meeting on the recommendation to lease in Fidalgo Subdivision. There are no legitimate appli- cations prior. 3. There was a meeting with FAA, Council, Chamber of Commerce and Administration. The results were beneficial. We will be able to negotiate the sale of leased lands without going to public sale. Most of the lessees are under the im- pression they would lose improvements, that is not so. 4. A letter has been sent by Police Chief Ross regarding traffic control. He has requested a State study of the streets mentioned by Alex Shadura. He has not had a reply yet. 5. At the last Board meeting of the Chamber of Commerce, a letter was written by Mrs. John Monfor to the school board supporting an auditorium. 6. The Chamber of Commerce is promoting a Community Pride campaign. There will be a contest. They are involving the down town area now, will try the residential areas if this is successful. 7. There are letters from Admin. Coord. Davis and Public Works Director Kornelis distributed this date (6-3-81) for review. MOTION: Councilman Malston moved, seconded by Councilman Wagoner, to direct Administration to send a similar letter to the School Board regarding the auditorium on behalf of the City. Motion passed, with Councilwoman Glick and Council- man Mueller voting no. Councilwoman Glick asked if the AAI lease was up for renewal. City Manager Brighton replied June 30, 1981. Councilwoman Glick suggested that with increased activity, we might consider common usage of the baggage area. Mr. Brighton replied he and Airport Manager Swalley have discussed this and had thought of a short term lease till the renovation is complete. Airport Manager Swalley spoke. He said the problem is location as to access to the area. AAI has the mail contract and security requires locks to come Up to postal standards. Mayor O'Reilly asked, is the baggage storage area exclusive to AAI? Mr. Swalley replied yes, `Dien is using the chute. Councilwoman Glick said there is a parcel of land --`' by Swires Rd. that has been cleared and a bus put in. f, s What is the activity? City Manager Brighton replied } he and Building Inspector Hackney have checked in to it, the shanty will be removed and they have a build- ing permit for a permanent structure. They will sell i; pottery and concrete items. H-2 City Attorney � I None j KENAI CITY COUNCIL JUNE 3, 1981 Page 15 H-3 Mayor Mayor O'Reilly spoke. 1. There is a vacancy in the Harbor Commission. Mayor O'Reilly recommended Paul Weller. MOTION: Councilman Malston moved, seconded by Councilwoman Glick, for approval of Paul Weller for the Harbor Commission. Motion passed by unanimous consent. Clerk Whelan was asked to contact Mr. Weller. 2. The situation in Juneau is as reported in the memo to Council. Revenue projections have been projected down. Municipal Assistance Fund is most vulnerable. There was a typo error in his original memo, but he didn't think there was any damage done, as the projects are broken down for review. 3. The Mayor's son may be a night watchman at Salamatof,the Mayor will remove himself from any negotiations with Salamatof. Councilman Wagoner asked, why - he is just a summer hire. 4. The Univ. of Alaska, Institute of Social & Economic Research will be having a meeting regarding the proposed Dow/Shell Chemical plant June 15, 1981 at the City Administration Building. There has been considerable concern regarding these meetings and the tilt that will come out of it. It would be unfair if a minority worked itself in to a majority influence. He strongly urged heavy attendance. There will be a survey taken late in the evening. Council- man Wagoner asked that the names of the speakers be listed and where they are from. H-4 City Clerk Clerk Whelan noted the letter from Kenai Peninsula Borough to the Alcoholic Beverage Control Board re- garding Kenai Joe's. Taxes have been paid, and the Borough has withdrawn its objection to renewal of liquor license. She checked with Atty. Delahay and he said a notice from the City was not necessary if the Borough sent one. But if the Council wished to, they could send one also. Councilwoman Glick asked if a letter of objection had been sent to the Board. Clerk Whelan replied yes, on Feb. 6, 1981. MOTION: Councilwoman Glick moved, seconded by Councilman Malston, to send a letter of non -objection to the Alcoholic Beverage Control Board regarding renewal of Kenai Joe's license as taxes are paid. Motion passed unanimously by roll call vote. KENAI CITY COUNCIL JUNE 3, 1981 Page 15 H-5 Finance Director Finance Director Rrow„ spoke. 1. At the last meeting, he was directed to appro- priate $75,000 for Frontage Rd. electric lines out of General Fund Cap. Improve. reserves. It isn't necessary, there is enough money to get the lines done. As to a Municipal Grant for this, we may be eligible for one. Councilman Malston asked, where do we stand on burying the electric lines? Public Works Director Kornelis replied they have contacted HEA, but have not had a reply. He has told them of the time problem. 2. Finance Director Brown said the Borough has cut out two assessors, there will now be three. We will be assessed every 3 or 4 years instead of every 2 years. There are 2 weeks before the budget is adopted, if we wish to take any action. Mayor O'Reilly said we will lose our growth realization if this happens. MOTION: Councilman Mueller moved, seconded by Councilman Hall, to direct Adminstration to send a letter of protest and a note that Council has taken action in protest of this due to the fact it will lengthen the time of assessments and delay an upgrade of values. Councilman Wagoner said he would think the Borough could computer generate property values. He would like to find out the reason for this. Motion passed, with Councilman Wagoner voting no. 3. Finance Director Brown said if the Council will leave their budgets after the meeting, he will make the changes in them. 4. Regarding Resolution 81-63, we will need funds for surveyors. Councilman Measles asked, what will Mr. Henderson do to complete the contract? Public Works Director Kornelis replied, probably nothing. Mr. LaShot and Mr. Kornelis will have to complete the job, Mr. Henderson said he is over now. MOTION, Reconsider, Res. 81-63: Councilwoman Glick moved, seconded by Councilman Wagoner, for reconsideration of Resolution 81-63. Motion passed unanimously by roll call vote. MOTION, Paac!ndment, Res. 81-63: Councilwoman Glick moved, seconded by Councilman Wagoner, to adopt Resolution 81-63, amending the amount listed from $9,370 to $9,000, and changing the description sentence from "---Peninsula Engineer- ing Change Order #1." to "---inspection and survey- ing on the above mentioned job-" KENAI CITY COUNCII, JUNE 3, 1981 Page 17 Councilman Wagoner said the engineer had said he would not need any additional surveying, this was already done by McLane. He objects to this. Motion passed, with Councilman Wagoner voting no. H-6 Planning & Zoning Councilwoman Glick spoke. 1. She did not attend the last meeting.eA�Ic- Ver 1� s 2. She has scheduled a meeting with the4Airport/ Land Committee for June 10, 1981 at 8:00 PM. Public Works Director Kornelis and Engineer LaShot are also asked to attend. H-7 Harbor Commission Admin. Coordinator Davis spoke. 1. The June 2, 1981 meeting was cancelled. It has been rescheduled for June 9, 1981, they will review the sedimentation proposals. There have been questions regarding their contract with CH2M Hill that may come up at the meeting. 2. The Harbor Commission will review the third draft of the resolution from the City for Dept. of Transportation. DOT is not satisfied with the resolution regarding the port facilities grant. He will report back to Council. City Manager Brighton said he received a call from Bob Roper. The Court ruled on June 2, 1981 in Mr. Roper's favor and removed the liens from his property. He asked Mr. Brighton to relay the message that if the City is interested they had better get their act together, because he is going to town and get it started. He also asked if it was for sale. I. PERSONS PRESENT NOT SCHEDULED TO BE HEARD 1. Councilwoman Glick said she spoke to City Manager Brighton informally regarding Community Schools funding. Soldotna is getting funding. We have not had a community schools program, but will have next year. This was in terms of the Parks & Recreation Committee. Recreation Director McGillivray explained the Community Schools is funded through the State. Soldotna is trying to get money for a second person for nine months for Community Schools, three months for Recreation Director. He has looked in to this and we would only get three month's use. ADJOURNMENT Meeting adjourned at 12:30 AM. ,4anet Whelan City Clerk -- -- -- - — -- -- - --- - --�—: -ter--. KENAI CITY COUNCIL JUNE 3, 1981 Verbatim Translation C-1 5 Di grnnsion - Award Contract to Dowling/Rice & Assoc. - Gymnasium Design -Build Package Preparation Ron Rice: Yes, sir, I have some rough figures that Kayo and I have reconstructed. I don't have the actual docu- mentation with me, I'm sorry to say. The figure as far as I know that Councilwoman Glick just quoted here, the $567,000, is our total appropriated funding to the project as of today. Out of that the cost of the original contract with Blazy Green J/V, was $497,000 approximately (I rounded things off to the $1,000 neighborhood to keep them as simple as possible with this raft of figures). We're looking at $497,000 worth of original contract. Now I might at this point also state that we had also received three proposals from contractors to construct this structure. We were under budget constraints as to how much money was available for the structure, the Commission was not comfortable with asking the Council to include a large amount of funding from the City's capital improvement projects toward construction of this building. Therefore, the Recreation Commission recommended that we take the project that was proposed to us that fit within our means. That was the building we have now constructed. In addition to that $497,000 worth of original contract costs, we have $28,000 worth of engin- eering administration costs in terms of inspection on the project. We also have a $2,800 cost which is not included in this $567,000. That was the cost to put together the original design built packet. That $2,800 is a little figure we can add on to that $567,000. After we had reached the point where we were ready to begin contruction, the sense of the Council - if I recall - at that point was that we should go ahead and accept the basic bid along with one of the alternates involving the installation of carpeting on the lower level together with ceramic tile in the bathrooms. That constituted the $497,000. In addition to that there was a change order which we requested of Council to provide some windows in the structure, that originally did not include any windows in the upper level, and also to provide a heat exchanger so that we might recover some of our waste heat once we had heated the area inside the building, it was a shame to exhaust it. The contractor's original proposal did not include that heat exchanger. He did see where that may be a desirable point in the project so he included it as an alternate and the Commission recommended that we take up that alternate. The final portion of that change order #1 was to provide a ramp entry in the front, that is a driving ramp entry in the front instead of having a walk-up stair well with a wheel chair ramp or handicapped ramp attached to that. We thought it would provide a more pleasing building esthetically if that were a drive -up ramp rather than KENAI CITY COUNCIL June 3, 1981 Verbatim Translation Page 2 a walk-up ramp. After we had begun construction, and as I say with the sense of the Council that we should also include racquetball courts in the building, we began trying to work down the number that we had originally received on the racquetball courts. That original number included with the prime contractors' proposal was $59,900. We did put some effort into that. We tried a number of different approaches on that. We finally settled on just asking for proposals from the people that we had already contacted and been dealing with. That resulted in a contract being written with Hollman Courts for the in- stallation of the courts and the floors and the provision of the lighting in the courts. We came back to Council with that resolution requesting that Council approve additional funding in the amount of $6,500 to the original project (cough) $525,000. We had at that point saved some $3,900 over the contractors' original bid to install the racquetball courts and at that point the number that we asked Council for - the additional $6,500 and the approval of hiring Hollman Courts - we did give Council the information that the cost of the court system was not the whole ball of wax. If we hired Hollman to do that, we were also looking at the cost of freighting the courts up here, the cost of installing the lighting systems and the cost of finishing off the last eight feet of ceiling and the upper eight feet of the back wall, which in an ordinary racquetball club situation is a completely open area. That's essentially an open-air area, so the court doesn't come packaged with those portions of the walls covered, because ordinarily they're not there. That represented, if my memory serves me correctly, a $56,000 addition to our original contract. We're talking about building costs here now. At a later date we again approached the Council with a request for funding to install spas, saunas and lockers. The racquetball courts and the spas and saunas were alternates in our original contract bid. They simply didn't fit our budget at that point, so the feeling of the Commission was that we shouldn't recommend something to Council that we couldn't see ourselves how it could be paid for. We later did elect to come back and see if Council was interested and in fact having those facilities installed not withstanding the direction of Council at the very beginning of the project to make sure we had racquetball courts in there by the time we got it all said and done. So we came back and asked for an additional - I believe it was $36,000 - for spas, saunas and lockers. Now as of this point we have not taken any irrevocable steps in terms of actually spending that $36,000. Should Council elect to, they certainly would have the option to remove that $36,000 from this project if they feel that cost is KENA.I CITY COUNCIL ® June 3, 1981 *'7 Verbatim Translation Page 3 getting too high. That leaves us at that point, assum- ing that we leave the $36,000 in, with a total allocated cost of $567,000. Of that $567,000 the architectural and engineering fees on this project complete - not only our firm's time but the contractor's architects' time - involve approximately 14.5% of the total project cost. I'm rather proud of that figure myself, because these costs are ordinarily anywhere in the neighborhood of 18% to as high as 26%. So I think we've done well in terms of keeping a handle on that cost. The cost of the building total, including the spas and saunas is going to be in the neighborhood of $63 per square foot. We can compare building types and we can compare building costs. Nevertheless we did get a facility constructed that I think will be reasonably energy efficient in light of today's energy costs for the price of $63 a square foot. Obviously we have some things that people are dissatisfied with over the way the project happened and j the end result. I think we can address most of those as Mr. McGillivray has already said in terms of our design packet on the second time around. One of the things that has occurred to me is that we should come before Council with prospective drawings of how we ex- pect this building to look, at least from the exterior, together with perhaps plan drawings of the floor spaces so we can see what kind of use areas we are talking about. Getting an idea of what the building looks like from the j outside and giving that to the proposers that we're re- questing actual packages from should enable us to assign a good deal of constraints to the architectural appear- ance of the structure. It has been my understanding that's where a good deal of the complaint has come from that we had a building there that looks somewhat less than a mun- �: icipal sturcture. It is, in fact, a low cost building. It's wood frame, we may not necessarily be constrained to wood frame with the addition of the gymnasium. There are other building types that could occur there and would ! blend in with the existing architecture. But this is something that if the Council elects to gi, with the design -built proposition, we should address before we actually go out for construction. - !I et Whelan, Y Cit Clerk