Loading...
HomeMy WebLinkAbout1981-07-15 Council Minutess AGENDA KENAI CITY COUNCIL --REGULAR :MEETING JULY 15, 1981--7:00 P.M. PLEDGE OF ALLEGIANCE A. ROLL CALL 1. Agenda Approval 2. Consent Agenda *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 discussion, of these items unless a Council member or citizen so requests, in which case the item will be removed from the Consent Agenda and considered in its normal sequence on the agenda as part of the General Orders. B. PUBLIC HEARINGS 1. Ord. 690-81 - Increasing rev/appns - Administrative Support for Harbor Commission- $18,000 (reconsideration) 2. Ord. 694-81-Increasing rev/appns -Senior Citizen Project - $38,947 3. Ord. 695-81 - Amending KMC 7.15.040(b) and (f) to Provide for Local Preference in Bidding 4. Reso. 81-71 - Transfer $18,000 - water & Sewer, Sec. 36 Capital Project Fund Budget for Additional Services as Requested by Trans -Alaska Engineering 5. Reso. 81-72 - Transfer $1,000 - Airport Electrical Improvements Capital Project Fund - Change Order #2 - Coastal, Inc. C. PERSONS PRESENT SCHEDULED TO BE HEARD 1. Yvonne Hakkinen, Kenai Cable Television D. MINUTES None E. CORRESPONDENCE None i I AGENDA, ?/15/81 - Page 2 F. OLD BUSINESS 1. Sea -Air memo from Wm. J. Brighton G. NEW BUSINESS *1. Bills to be Paid, Bills to be Ratified *2. Requisitions Exceeding $1,000 3. Lease - Alaska Rent A Car, Inc., d/b/a Avis Rent A Car - Airport Terminal Counter Space *4. Tam Construction, Inc. - $248,342.52 - Kenai Interceptor *5. Doyle Construction Co. - $73,410.66 - Periodic Estimate #4 - North Kenai Spur Water & Sanitary Sewer 6. Trans -Alaska Engineering - $18,000 - Discussion of increase in inspection, Sec. 36 (See Reso. 81-71) *7. Alaska Boiler and Heat Exchanger Service, Inc. - $17,852.66 - Periodic Estimate No. 7 - Warm Storage Building *8. Trans -Alaska Engineering - $11,258.56 - Engineering Services Water & Sewer Sec. 36 *9. Gary L. Davis Consulting Services - $4,646.05 - June, 1981 Billing *10. Dowling -Rice & Associates - $3,248.03 - Final Billing - Kenai Youth Center 11. Doyle Construction - 02,626.25> - Change Order #2 - Water & Sewer, Sec. 36 12. Coastal, Inc. - $1,000 - Change Order #2 - Airport Electrical Improvements 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 Al KENAI CITY COUNCIL - RECULAR MEETING, MINUTES JULY 15, 1981 - 7:00 PM KENAI PUBLIC SAFETY BUILDING -- MAYOR VINCENT O'REILLY. PRESIDING PLEDGE OF ALLEGIANCE A. ROLL CALL Present: Jess Hall, Ron Malston, Ray Measles, Dick -ueller, Tom Wagoner, Vincent O'Reilly, Betty Glick Absent: None AGENDA APPROVAL Councilman Malston submitted his objection to the Consent Agenda. Mayor O'Reilly asked, in view of tre short agenda, would the Cct:ncil like to take the agenda line by line? Members of Council objected to the proposal. i B. PUBLIC HEARINGS B-1 Ordinance 690-81 - Increasing Rev/Appns - Admin- istrative Support for Harbor Commission - $18,000 (Reconsideration) MOTION: Councilman Wagoner, seconded by Councilman Measles, moved for reconsideration of the ordinance. Motion passed, with Councilman Hall, Measles, Wagoner, Mayor O'Reilly voting yes; Councilmen Malston, Mueller, Councilwoman Glick voting no. MOTIONS Councilman Wagoner moved, seconded by Councilman Hall, to adopt the ordinance. There was no public comment. Councilman Wagoner asked, what wcald happen if this; was not passed? Who would provide secretarial support? City Manager Brighton replied, if Admin. Coord. Davis does not, Administration will do the work, probably the City Manager and secretarial help. In his own opinion, if the service is not provided, the City is in great jeopardy of losing the support of the people on the commission. He didn't think he and one of the secretaries could do justice to the job. He admitted the work is less than it was in the past. He would encourage Council to continue service for the next 3 months. Councilman Hall noted 172 hours of secretarial work. He was surprised to see that much work, and wondered how the City could handle that work. What happens after 3 months? Mr. Brighton replied there is just enough for 3 months. This is a pass -through funding. We asked the Borough to agree to extend for 3 months, now we are going to cancel it. He admitted Administration asked for the additional funds. Councilman :;agoner said the Borough is in the process of deciding on port and harbor facilities in either Ninilchik or Kasilof River, if not Kenai. That is where the processing plans will be built. We have gone this far and spent a con- siderable amount of money. It is foolish to stop now. No one has ever gone this far before. Council- woman Glick said she would vote against it. We have to review our goals. There is a lack of activity. 175 hours is more than a 40 hour week. There are KENAI :ITY COUNCIL JULY 15, 1981 Page 2 other commissions that work just as hard. She finds it absurd for CZM to fund a position when moneys were not put to good use. We have not had the activity we anticipated. Also, Council should have been asked before asking for the funds. Councilman Wagoner said he didn't think it was the Harbor Commission duty to recommendations regarding CZM. It should be through Council. There has been time & effort put in, we should not draw back now. Motion passed, with Councilmen Hall, Measles, Wagoner, Mayor O'Reilly voting yes; Councilmen Malston, Mueller, _ Councilwoman Glick voting no. B-2 Ordinance 694-81 - Increasing Rev/Appns - Senior Citizen Project - $38,947 " I MOTIONS Councilwoman Glick moved, seconded by Councilman Malston, to adopt the ordinance. There was no public comment. Finance Director Brown noted the amount had been changed from the June 17, 1981 introduction. Motion passed unanimously by roll call vote. B-3 Ordinance 695-81 - Amending KMC 7.15.040 (b&f) to Provide for Local Preference in Bidding MOTIONS -- Councilman Wagoner moved, seconded by Councilman Measles, to adopt the ordinance. There was no public comment. - Councilwoman Glick asked, would this be more restrictive than the present procedure? City Manager Brighton replied, the ordinance we already had permitted what this ordinance is designed to do. The lowest and best gives us the right to select the best if %! it is not the lowest. Councilman Measles said the = ordinance as it stands now gives us more latitude. .1 34. vice Mayor Glick took the chair. _'- Mayor O'Reilly said he will vote against the ordinance. He has a problem with preference clauses. The business in town get service for the taxes they pay. Local = business can compete with business elsewhere. -T Mayor O'Reilly resumed the chair. - j Councilman Wagoner said small business cannot compete with the money available of big business. It would improve relations with local business. It also costs more to do business in Kenai. MOTION, Amendment. Councilman Measles moved, seconded by Councilman Mueller, to amend the motion, to change Section 1-b, line 2, after the word "City", to delete to the word "bid," on line 4, and add "when this can be done without substantial or prohibitiveycost to the City." 4ko.i i- io-- Councilman Hall said he is a firm believer in competitive bidding, and cannot support this. Councilwoman Glick t1 KENAI CITY COUNCIL JULY is, 1981 Page 3 said we should give support to local business. We have changed resolutions to support local business in the past. Councilman Malston noted, maybe we don't need this, we have given direction to Administration in the past. Councilman Mueller said without the change, any time we approve a bid without taking the lowest, we are in violation of the ordinance. VOTE, Amendment: Motion passed, with Councilmen measles, Mueller, Wagoner, Mayor O'Reilly, Councilwoman Glick voting yes; Councilmen Hall, Malston voting no. VOTE, Main Motion with Amendment: Motion passed, with Councilman Malston voting no. B-4 Resolution 81-71 - Transfer $18,000 - Water & Sewer, Sect. 36 Capital Project Fund Budget for Additional Services as Requested by Trans -Alaska Engineering. MOTION: Councilman Measles moved, seconded by Councilman Mueller, to adopt the resolution. There was no public comment. Councilwoman Glick asked, why is this necessary? Did we start late? Were there changes in the design? Public Works Director Kornelis explained it goes along with item G-6. The project started somewhat late, it was designed some time ago. The telephone co. put lines on top of water lines, there were other pro- blems and redesign was necessary. Councilwoman Glick said she gets distressed when the City gets requests from firms for more money. Local businesses do work for the City and do not come back to the City for additional funds. Public Works Director Kornelis explained this is for changes, the design changes are not their mistake. Motion passed, with Councilwoman Glick voting no. B-5 Resolution 81-72 - Transfer $1,000 - Airport Elect- rical Improvements Capital Project Fund - Change Order #2 - Coastal, Inc. MOTION: Councilman Measles moved, seconded by Councilman Mueller, to adopt the resolution. There was no public comment. Motion passed unanimously by roll call vote. C. PERSONS PRESENT NOT SCHEDULED TO BE HEARD C-1 Yvonne liakkinen, Kenai Cable Television Mrs. Hakkinen asked the Council for a letter to APUC urging them to take action on their application for cable, signed June 30, 1981. If prompt action is taken, they can start this Fall and have some service this Winter. Otherwise, it will be next Spring. It would be cost efficient to do the work while the streets are torn up. KENAI CITY COUNCIL JULY is, 1981 Page 4 MOTION; Councilwoman Glick moved, seconded by Councilman Measles, to have Administration write a letter to APUC on behalf of Kenai Cable Television asking them to expedite action on their request. Motion passed unanimously by roll call vote. D. MINUTES None E. CORRESPONDENCE None F. OLD BUSINESS F-1 SeaAir Memo from Wm. J. Brighton City Manager Brighton noted the memo from FAA re- ceived this afternoon (7-15-81) and distributed at the meeting. Mayor O'Reilly asked if Alaska Airlines had been notified of this? Mr. Brighton replied yes. Should spaces become available, they are interested. Councilman Malston suggested a work session with FAA representatives. Mayor O'Reilly asked, did they know this would be dis- cussed tonight? (7-15-81) Mr. Brighton replied he had talked to them 7-10-81, they contacted him Monday and said they did not know if they could come. They cannot meet in an evening meeting because of the expanse of staying overnight, but they can come to a day meeting. Councilman Warroner said we have spent alot of time on this, we should write Stevens, Murkowski and Young to get clear title to this. Atty. Delahay replied this is not just a matter of clear title. In the letter it refers to application for funds and the City agrees to not let exclusive rights to one party. Council agreed postpone action till Administration makes arrangements for a work session with FAA, preferably a night meeting. CONSENT AGENDA: Mayor O'Reilly asked Council if they wished to use the Consent Agenda. Councilman Melston objected. G-2 Requisitions Exceeding $1,000 MOTION: Councilman Malston moved, seconded by Councilwoman Glick, to approve the requisitions. Motion passed unanimously by roll call vote. G-1 Bills to be Paid, Bills to be Ratified MOTIONS Councilwoman Glick moved, seconded by Councilman Measles, to approve the billings. Councilman Measles asked, what books do we rent? Librarian DeForest replied, they rent 25 books each month, they are shelf -ready, for one year. Motion passed unanimously by roll call vote. ff KENAI CITY COUNCIL, JULY 15, 1981 Page 5 G-3 Lease - Alaska Rent-A-Car, Inc., d/b/a Avis Rent- A-Car - Airport Terminal Counter Space City Manager Brighton explained this was returned late and did not get in with the other car rentals. MOTION s Councilwoman Glick moved, seconded by Councilman Measles, to approve the lease. Motion passed unanimously by roll call vote. G-4 Tam Const., Inc. - $248,342.52 - Kenai Interceptor MOTIONS Councilwoman Glick moved, seconded by Councilman Malston, to approve the billing. Councilman Wagoner asked, last Fall, when Doyle was working on this, there was overburden. He wanted to negotiate because of additional cost. He had to move less overburden. What happened to that? City Manager Brighton replied the savings made were used to extend Frontage Rd. Public Works Director Kornelis said he would check the records, that was included in the addendum. Motion passed by unanimous consent. G-6 Trans -Alaska Engineering - $18,000 - Discussion of Increase in Inspection, Sect. 36 (See Res. 81-71) MOTIONS Councilman Mueller moved, seconded by Councilman Hall, to approve the billing. Public Works Director Kornelis explained, under the inspection contract, a clause allows them to to go beyond not -to -exceed figure if he receives authority. Motion passed, with Councilwoman Glick voting no. G-7 Alaska Boiler & Heat Exchanger Service, Inc. - $17,852.66 - Per. Est. #7 - Warm Storage Bldg. MOTIONS Councilwoman Glick moved, seconded by Councilman Malston, to approve the billing. Mayor O'Reilly asked to abstain from voting, as they are customers of Alaska PacificBank. Councilman Mueller asked if the note regarding re- lease of claims had been taken care of. Finance Director Brown replied yes. Motion passed by unanimous consent, with Mayor O'Reilly abstaining. G-8 Trans -Alaska Engrg. - $11,258.56 - Engineering Services, Water & Sewer, Sect. 36 MOTIONS Councilwoman Glick moved, seconded by Councilman Malston, to approve the billing. doom KENAI CITY COUNCIL JULY 15, 1981 Page 6 f -:1 Motion passed by unanimous consent. G-9 Gary L. Davis Consulting Services - $4,646.05 - June, 1981 Billing MOTION Councilman Wagoner moved, seconded by Councilman Hall, to approve the billing. Councilwoman Glick asked Admin. Coord. Davis to explain the number of hours for secretarial services. Mr. Davis replied the Harbor Commission had asked for a full time secretary. Councilwoman Glick said she could understand his need for a secretary, but not for the Harbor Commission. Mr. Davis replied, he agreed with her now at this point in time. He was going at the direction of the Harbor Commission. Councilwoman Glick asked, he is the Administrative Coordinator of the Harbor Commission, is it not the Council responsibility to pay the bills of the City? Can the Harbor Commission make direction without approval of Council? Who has final authority? Councilman Wagoner said we do, but we approved hiring of the secretary to do the work of the Harbor Comm. City Manager Brighton asked Finance Director Brown to confirm that the Council awarded the contract for administrative support, stipulated the hourly rate, etc. The contract does not say 40 hours per week for a secretary. Finance Director Brown said it specified an hourly rate and estimate of secretary work was in the contract. Councilman Wagoner said the time of the contract was about 8 months. Motion passed unanimously by roll call vote. G-10 Dowling -Rice & Assoc. - $3,248.03 - Final Billing - Kenai Youth Center MOTIONS Councilman Mueller moved, seconded by Councilman Malston, to approve the billing. Motion passed unanimously by roll call vote. G-11 Doyle Const. - ($2,626.25) - Change Order #2 - Water & Sewer, Sect. 36 MOTION: Councilwoman Glick moved, seconded by Councilman Measles, to approve the billing. Motion passed unanimously by roll call vote. G-12 Coastal, Inc. - $1,000 - Change Order #2 - Airport Electrical Improvements MOTIONS Councilman Measles moved, seconded by Councilman Hall, to approve the billing. Motion passed unanimously by roll call vote. H. REPORTS H-1 City Manager City Manager Brighton spoke. 0 KENAI CITY CODUCIL JULY 15, 1981 Page 7 1. At the last meeting, Council asked for main- tenance of Spur and the sidewalks by the State. The State said they would and the job has been started. When the rain stops, it will be resumed. 2. Council requested he and Harbor Commission have a talk regarding dock expansion. They have not met in the meantime, but they will discuss. 3. Cable TV. He has the application from Mrs. Hakkinen for Council to review. 4. In Dec. 1979 a letter was written by the City Attorney to Social Security. He has had contact with their representative requesting a meeting. We have set Aug. 12, 1981 for a meeting. It is our intent to have an additional meeting for employees to have a vote. He asked Council to come to the meeting. Councilman Wagoner gave him some material regarding this that he will distribute to the employeess. 5. On April 23 he received a letter from Phil Bryson regarding his leased lot. Administration was directed to write letters to all in violation of their lease. After letters were sent out, we discovered many leases were different and did not specify that. Mr. Bryson said his project had been delayed and asked for a one year lease and to be put up for sale. He started the process of buying the land. The bid date was July 3, 1991, 3 days after expiration of the contract. July 2, 1981 we received a letter from Atty. Phil Nash who objected to the sale that we were aware of violation of the lease. We did withdraw the sale on advise of the City Atty. He asked Council to give an extension of the lease for 12 months. MOTION: Councilwoman Glick moved, seconded by Councilman Malston, to give an extension of the lease for 12 months. Atty. Delahay said we have a legal problem. The protest by Mr. Nash was well taken. When the lease is in conformance, there is no problem with the lease. But the lessee did not folow through with the lease. If Council passes this, he would ask Council to cancel all other lease cancellations. City Manager Brighton asked to remind Council of the Serendipity lease that was extended 3 times when they were in violation of their lease. There is no request to buy the property. If the 'Lease is in violation, there is no lease on the property. This is a legitimate request. Atty. Delahay replied, Serendipity is different. This is not construction stipulation. If the City is going to do this at all, they should do it for all. Mr. Brighton ex- plained this is a difference of opinion that has been going on. Councilman Hall asked, considering the economic situation, could there be exceptions? Atty. Delahay replied, you can, but you should do it for all. Councilman Measles asked, how many leases do we have that has the construction clause in it? Atty. Delahay replied, those that do not have construction on them, there are 3 subject to can- cellation. Councilwoman Glick said, speaking from Planning & Zoning view, we have granted leases based on proposals and most state that there is a 2 year development plan. Also, there was a request for ex- tension on April 24, This was not addressed? Mr. t } KENAI CITY COUNCIL JULY is, 1981 Page 8 Brighton replied it was not addressed because he wished to buy in the same letter and Mr. Brighton RUaaeafed he t _ J for that. The-, -'An0=10 YGar'S payment on the lease of property. They still want to do construction. We have made exceptions before. Mayor O'Reilly asked, is it their intent to try to buy the property? Mr. Brighton replied he didn't know. Atty. Delahay said he would like to point out others have cancelled theirs and put in for purchase. Mr. Bryson could also. Councilman Malston said one of the reasons for asking lessees to comply was because some of the leases had been setting without development. He does not know of any leases that hve been disapproved when they asked for an extension. He does not see why we withdrew the sale. If anyone with a lease asked for an ex- tension, we granted it. Atty. Delahay noted they are still facing the objection raised by Mr. Nash. Councilman Mueller asked, was there more than one bid? Mr. Brighton replied, just 0-ne. Councilwoman Glick said each person has to consider their own financial condition. Mr. Bryson is being discrimin- ated against because they have a specific condition in his contract, and others do not, but it was understood by Planning & Zoning. Councilman Malston said Mr. Bryson requested an extension to his devel- opment plan. The City did not pass through to Council, this is not the lessee's fault, it is the City's. Motion passed unanimously by roll call vote. 6. He suggested a work session regarding the Capital Improvement Projects list. He directed Public Works Director Kornelis to set up a schedule of advertising for all projects that have been en- gineered. The contractors will be hard to come by next Spring. 7. The terminal renovation should be started as soon as possible. Councilman Malston said the contract says the street sweeping will be done 2 times this year. Public Works Director Kornelis replied, we do not have a definite date. H-2 City Attorney Atty. Delahay spoke. 1. He asked Council to review the Salamatof lease modifications. 2. There will be an amendment to the Bryson lease. 6h4vuid cortruction be complete by 1982? 3. Also, he would like direction on the Bissell and Borgen leases. The City will be in a poor position if anyone brings a lawsuit. Councilman Measles said there is nothing to extend. Atty. Delahay said we could cancel them for failure to do what was required, but they should be granted an extension if you do that on Mr. Bryson. Council- man Malston said we should not be granting extensions, just an update of their intentions. Councilman Wagoner asked, what would happen if we took no action on the other leases? Atty. Delahay replied, if they did nothing, there would be no comment unless it was offered for sale. KENAI CITY COUNCIL JULY is, 1981 Page 9 V„ MOTIONs Councilwoman Glick moved, seconded by Councilman Malston, to direct Administration to contact those lessees with current up-to-date leases to update their development plans depending on their financial position at this time, Motion passed unanimously by roll call vote, 4. Regarding Social Security, The State, when they withdrew frarns Social Security, paid the same amount to PERS, He thinks we should have someone from the State talk to the employees regarding the PERS payment. The Council should learn also, As to the vote of the employees, he would suggest it be a secret ballot. H-3 Mayor Mayor O'Reilly spoke. 1. He wished to compliment Public works Director Kornelis on his presentation to the Chamber. 2. Regarding the municipal assistance memo. The HS number may be wrong. we will have an opportunity to hear a representative next Wednesday (7-22-81). He has requested Sen. Malone meet with the Council. The drop is quite drastic. He would like to contact Jerry Reinwand and see what the Governor's position is. 3. He recommended Paul Turner for the position on the Planning & Zoning Commission. MOTIONs Councilwoman Glick moved, seconded by Councilman Malston, to approve the nomination. Motion passed by unanimous consent. 4, He recommended Mark Necessary for Recreation Commission. MOTIONS Councilwoman Glick moved, seconded by Councilman Malston, to approve the nomination. Motion passed by unanimous consent. Clerk Whelan was asked to notify Dr. Turner and Mr. Necessary. 5. The Dow meeting. Sept. 9 is the filing date. They have more hesitancy regarding the site in Alaska. The reason is the decline in crude prices. They have maintained contact. July 16 he will attend a meeting with the president of Dow/Canada. Aug. 11 6 12 there will be a meeting. Sept. 8 6 9 is the presentation to Juneau. Mr. DeLine asked for an advisory board to attend if possible. He will charge the bills to the City. We should discuss expenseo, travel, etc. Councilwoman Glick asked if he wanted additional people at the pre- sentation in Sept.? Mayor O'Reilly replied no, this will continue and he wants to have more of Council and/or Administration involved. • I •u w i 1 I • KENAI CITY COUNCIL JULY 15, 1981 Page 10 Council agreed to have the Mayor submit bills on expenses starting July 15. 6. Mr. Arisawa of Mitsubishi -Japan will be here July 27. We will plan a luncheon, Council is in- vited. 7. He received a request from Judge Hansen asking what kind of support we can give to the ice skating rink in Soldotna. If Council indicates support, we may have to support it financially in the event of difficulties at a later date. Council agreed not to take a stand either way. S. Work session. Council agreed to wait till the Governor signs the bills. H-4 City Clerk None H-5 Finance Director Finance Director Brown said he would like a work session regarding revenue sharing. Council agreed to hold a work session July 23 at 700 00 PM. Councilwoman Glick noted the Finance Subcommittee will have a meeting July 17 at 500 PM. H-6 Planning & Zoning Councilwoman Glick spoke. 1. There was no meeting of the City P&Z. 2. At the Borough meeting. Land Disposal #3 is being discussed. There will be a special meeting Monday (July 20, 1981). Council is invited. The public hearing will be Aug. 3, 1981. Mayor O'Reilly noted Councilwoman Glick is chairman of the Borough Planning & Zoning Commission. H-7 Harbor Commission None I. PERSONS PRESENT NOT SCHEDULED TO BE HEARD 1. Councilman Measles said he will be out of town during the Aug. 5, 1981 meeting. Council accepted the request. 2. Councilwoman Glick reminded Council Aug. 14 & 15 will be the Municipal League Board of Directors meeting in Kenai. She would like to use the City Hall facilities. Also, there will be a reception Aug. 14, 600-700. Council is invited, invitations will be coming. 3. Public works Director Fornelis asked if he could attend the work session July 23. Council agreed. 4. Councilman Wagoner said regarding Federal Revenue w 3 s KENAI CITY COUNCIL JULY 15, 1991 Page it Sharing. Should the City have a priority list instead of a Dept. wish list? Councilwoman Glick said when we were going through the budget, we removed items and said we would review with Federal Revenue Sharing. Finance Director Brown said he asked all Dept. heads to submit requests deleted from the budget. 5. Councilwoman Glick noted the sign code infor- mation included in the packet, and asked if the Planning & Zoning crude could be included. ADJOURNEMMTs Meeting adjourned at 1009 PM. AA 12 VjaA rt an, city clerk Y .. _ "�'Z.�:.."'7G.Cif-'..�,_.._.:�.:�.�+ewo.+�rawa�s..F��._ — v. .������.�. _�.���_ _- __ •tts*..-�.� KENAI CITY COUNCIL - REGULAR MEETING JULY 15, 1991 eas VERBATIM TRANSLATION H. REPORTS H-1 City Manager City Manager Brightons 5. On April 23 I received a communication from Phil Bryson of wince, Corthell & Bryson in relationship to their leased lot and, as the Council will recall, the Administration was direct:2d to write to everyone who it appeared were in violation of their leases that the City would to in the process of cancelling their leases. Much to our dismay, after that commun- ication went out we discovered that the leases are almost as various, the differences in the leases are almost equal to the number of leases we have. And we discovered that many leases did not contain the clause that construction must start within a certain period or the lease would be cancellable. At any rate, after that letter was sent out, Mr. Bryson sent a letter in relationship to that letter saying that their proposed development plans had been severely hindered by the same economic financial difficulties faced by larger projects proposed both locally and nationallyt and requested a one year extension of their lease, and at the same time "additionally we herewith request this property be advanced for sale in accord- ance with your recently approved ordinance for sale of City owned properties. since both requests were contained within that communication, I suggested that since we were getting big into this sale of the real estate as opposed to leasing it, that he start the process to purchase the real estate, which he did. He brought the money in and paid the money down, we went through the process and advertised that the real estate was going to be sold and set a date at which we would apen the bids and award the sale of that land. Bid opening day was July 3. That was 3 days after the expiration of the 2 year term within his lease in which they had to start construction. On July 2 we received a letter from Philip Nash who objected. to the opening of any bids and/or the sale of that real estate on the basis that we were aware that the lessee was in violation of his lease. That was the day before the opening. We did withdraw that piece of property from sale on the basis of Mr. Nash's letter and upon advise of the City Attorney. So at this point since his original letter of April 23 made 2 requests, one of which we apparently cannot accomodate, I would suggest that the Council 7 KEMAI CITY COUNCIL JULY 15, 1981 �. Page 2 givcAn extension on that lease. I might tell you that that lease has been paid up for the next 12 months. It's a decision that I think you need to make and it would be my recommendation that you extend that lease on that piece of pl:operty for one additional month (correction - year). Councilwoman Glick; I would so move. Councilman Malstons Second. K-2 City Attorney Attorney Delays 3. I would also like direction of the Bissell lease. Mr. Bissell wrote, amongst other things, back in Sept. 1980, to Mr. Brighton saying that he "sincerely appreciates the opportunity to reply in a prompt and timely manner to your urgent request to acquire information pertaining to our potential land use for the administration's new and vigorous approach for land disposal." And he goes on to say, "the corporation is currently developing an inte- grated and multi -faceted approach to construct or have constructed a facility." After he was told their future plans weren't enough he replied to Mr. Brighton April 1 and said he enclosed the amend- ments to the lease which raised the price on the lease - I believe - and states that "a careful re- view of the lease covering Block 5, Lots 8 69, does not indicate any requirement for construction in order to comply with the terms of the land lease. As we have been in compliance with the terms of the lease, we request further clarification of the construction requirement -Since this is the first notification as to any construction requirement, we would be placed in the position of undue hardship to attempt to comply with the letter of March 18, 1981." (That's the one that required construction to start by June 1, 1981). Should we then inform these people like Mr. Bissell and Mr. Borgen that their leases will be extended also for construction until July 1, 19827 Dorgan certainly has protested any requirement of construction in his lease and has stated he doesn't feel there is a requirement there and that he also has started by these actions of his, to construct. It just appears to me that the City s N KENAI CITY COUNCIL JULY is, 1981 paap I is going to be - if anyone brings a lawsuit in that respect, the City •Ails be in a poor position, I feel it is almost indefensible if you extend one lease - the one that is most clearly set out requir- ing construction - and you do not extend the other two. Councilman Measless From what I understand of those 2, there's really nothing there to extend because we don't have a definite requirement in those leases. - - - - - - - - - - - - - - - - - - - - - - - - - - - MOTIONs Councilwoman Glicks Mr. Mayor, I would like to make a motion directing the Administration to contact those lessees with leases - current up-to-date leases - to update their developmental plans based on the fact that we are considering one year extension or possibly 2 to give them a little leeway depending upon their financial picture at this point in time. Councilman Malstons Second. �� Jadet WhelSn, City ClerkOr