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HomeMy WebLinkAbout1980-06-04 Council MinutesAGENDA KENAI CITY COUNCIL - REGULAR MEETING JUNE 4, 1080 PLEDGE OF ALLEGIANCE A. ROLL CALL AGENDA APPROVAL B. PUBLIC HEARINGS 1. Ordinance 568-80 - Replacing Tables in Title 23, Personnel Regulations, Salary Structure 2. Ordinance 572-80 - Purchase of Word Processing System, Satellite, a Scanner Radios - $10 , 000 3. Ordinance 573-80 - Rescinding Ord. 475-79, nedicating Interest Revenues for Capital Improvements. 4. Ordinance 574-80 - Amending Title 23, Pay Range Increase for Senior Citizen Coordinator 5. Ordinance 575-80 - Amending Ordinance 533-79 - Including; Compaction holler a Pick Up with Federal Revenue Sharing Monica - $26,000 0. Renewal of Liquor License - Kenai Jee's 7. Transfer of Liquor License - The Rig Bar C . PERSONS PRESENT SCHEDULED TO BE HEARD I. Atty, Rick Baldwin, Representing Ray Cason Lease Renegotiated 1970 2. Ann Dolairs - Community a Regional Affairs - Day Care Center D. MINUTES 1. Minutes of Regular Meeting, May 2, 1980 E. CORRESPONDENCE F. OLD BUSINESS 1. Andy's Flying Service Lease G. NEW BUSINESS 1. Bills to be Paid, Bills to be Ratified 2. Requisitions Exceeding $1,000 3. Ordinance !i76-80 - Amending Ordinance 537-70 - Merit System 4. Ordinance 577-80 - Adopting Annual Budget for FY 1980-81 S. Ordinance 578-90 - Increasing Revenues for EPA Sewage Project - $25,000 6. Ordinance 570-80 - Amending Title 4, Uniform Building Code 7. Ordinance 680-80 - Setting Tax Levy for FY 1990-81 9. Resolution 80-78 - Establishing Terminal Lease Rates for Fee Schodulo for PY 1090-81 9. Resolution 80-01 - Transfer of Funds - Fire Dept. Personnel to Attend Training School - $250 10. Resolution W02 - Transfer of Funds - Advertise Janitorial Service, Library - $25 U. Resolution 90-03 - Transfer of Funds - Council on Aging, Provide Funds for Balance of Year - $235 12. Resolution 00-94 - Transfer of Funds - Library Building Pointed - $000 13. Resolution 80-06 - Accepting Grant Offer, EPA Rower Project - $18,750 14. Resolution WOO - Accepting Grant Offer, EPA Sower Project - $3.125 16. Resolution 80-97 - Awarding Bid for Word Processing Equipment - $9.100 10. Lease - Dollar Rent-A-Car 17. Lease - Raven Transit 18. Special Use Permit - Ball Brothers, Inc. 19. Special Use Permit - Columbia Word Fisheries 20. Special Use Permit - Cook Inlet Processors X. Special Use Permit - Dragnet Fisheries 22. Special Use Permit - Evans Aviation 23. Special Use Permit - Kenai Packers 24, Special Use Permit - Oalam4tof Seafoods 25. Consent to Sub -Lease - Gerald L. lVasson 20. Amendment to Lease - Faroe Enterprises 27, Change Order Payment - CHS1 Hill - Bower Treatment Plant - $9.300 20, Payment - CH2M Hill - Sewer Treatment Plant - $7,000 and $1,280 20. small Boot Harbor study, Reply by mayor olnenty H. REPORTS 1. City Manager 2. City Attorney 3. Mayor 4, Clark 5. Finance Director 6. Planning to Zoning 7, Borough Assembly 9. Harbor commission I. PERSONS PRESENT NOT SCHEDULED TO BE HEARD 1 t KENAI CITY COUNCIL - REGULAR MEETING, MINUTES JUNE 4, 1080 - 7:00 PM KENAI PUBLIC SAFETY BUILDING MAYOR VINCENT O'REILLY PRESIDING PLEDGE OF ALLEGIANCE A. ROLL CALL Present: Jess Hall, Dick Mueller, Vincent 011tailly, Ed Ambarian, Ray Measles, Betty Glick, Ran Malston Absent; None AGENDA APPROVAL Mayor O'Reilly requested deleting C-1, Atty. Rick Baldwin, and making C-1, Ann Delaire, Community 4 Regional Affairs - Day Care Center. He asked adding C-2, Bob Peterkin, Chairmen, Harbor Commission. He asked if P-i, Andy's Plying Service Lease, be added after 0-8. He also asked if P-1, Day Care Center Motion could be added. Agenda changes were approved as requested by unanimous vote of Council. B. PUBLIC HEARINGS B 1 Ordinance 588-80 - Replacing Tables in Title 23, Personnel Reg- ulations, Salary Structure. MOTION, Remove From Table: Councilwoman Glick moved, seconded by Councilman Malston, to remove the ordinance from the table, Motion passed unanimously by roll call vote. Atty. Delahay noted the changes in Section 2, making ordinance eff- eaHve July 4, 1980 and tables effective retroactively duly 1, 1080. MOTION, Amendments: Councilwoman Glick moved, seconded by Councilman Malston, to approve the amendments. Motion passed unanimously by roll call vote. There was no public comment. I r� r Eye, 1 KENAI CITY COUNCIL JUNE 4, 1080 Paso 2 Councilman Ambarian requested abstaining, because his daughter is working with the Parks Department, VOTE ON MAIN MOTION: Main motion passed, with Councilman Ambarian abstaining. S-2 Ordinance 572-80 - Purchase of Word Processing System, Ratellito, a Scanner Radios - $10,000. MOTIONS Councilman Malston moved, seconded by Councilwoman Glick to adopt the ordinance. There was no public comment. Atty. Delahay said he had received a reply from the dealer today, he requested the Council change "General Fund, Increase Approp- riations;" to read: Legal- Machinery *Equipment $0,800 Legal - Office Supplies 400 Public Works -Machinery a Equip, 3,755 Public Works - Office Supplies 245 NOTION, Amendment: Councilman Malston moved, seconded by Councilwoman Glick, to approve the amendments. There was no public comment, Councilman 'Walston asked Atty, nelahay, are we still getting a year's supply? Atty, Delahay replied no. VOTE, Amendment: Motion passed unanimously by roil call vote, VOTE, Main Motion: Motion paosed unanimously by roil call vote. 11-8 Ordinance 578-80 - Rescinding Ord, 475-70, Dedicating Interest 9 KKNAI CITY COUNCIL JUNP 4, 1080 Page 3 Revenues for Capital Improvements. Public Comment: John Wise spoke, He said he objected to the ordinance as it addresses two separate subjects: 1, Interest revenue 2. Consumer Sales Tax lie said there is no severability if challenged. He asked Atty. Dolahay, can the Council - by ordinance - Ray that you can't amend an ordinance? Can an ordinance supersede the Charter? Atty, Delahay replied Mr. Wise may well be right on that issue. This shows the intent of Council, and whether future Council would override it or not depends on future Council. Finance ordinances can be Bated on in the first hearing with proper vote of Council and can become effective immediately, A non -emergency ordinance must have two hearings and does not become offoative until 30 days after passage. s Mr. Wise said an expression of intent is non -binding. Secondly, he would like an explanation of Section 4-2 . one half of A is deleted. what is that, one half of M Atty. Delahey referred to Ordinance 7.10,010. He explained it is broken into two sections, One section levies sales tax of IS which is measured by gross price of seller, and Section two levies a sales tax of 2%. Previously the second tax of 2%, one halt went to one place and one halt to another. This ordinance puts all in one place, Mr. Wise said he accepted that. But he still challenged two subjects in one ordinance and also listing intent is misleading, therefore it would mislead the public and imply they have safeguards which in fact they do not have. He would disagree with shifting interest revenue to general fund reserve for capital improvements because he feels that's unnecessary. This City has some $20 Million in land assets. The Ad Hoc committee established by the Mayor established I full the C had $9 Million to 0 Million worth of land, r Y uY ;1 airport That committee also directed ( acted the land be disposed of, This Council - - - has taken no action to that end, since an aborted sale last September. - Also, the City owns in its own rights considerable land including Section 30, which is valued at $10 Million, thereabouts. It appears J we are putting moneys into reserve capital improvements when the �Z_ KENAI CITY COUNCIL JUNE 4, 1980 ' Page 4 City should be selling land. Is the City in the business of land speculation? He said he would prefer to see this interest revenue stay with the debt service. Actually most of the money from this is being originated from debt service funds. You have approximately $1.8 Million in debt service reserve, cash surplus. Interest from that is not going into debt service but toward capital reserve. He didn't think that was appropriate. He prefers to see all non -interest obligated funds going into debt service. The City had $4 Million in capital funds presumably invested fully. Because of the way Council has spent their money this last year, that's going to go down considerably, is now $3 Million. If you want to change the interest allocation of revenue, change it to the funds generated are pro -rated among the assets out. (This was inaudible) He 1 further stated the City has bond surpluses in water a sewer and the Civic Center that have been invested fully. And no money has been accrued to those accounts. it's all gone to debt service. Interest revenue to being used the wrong way. There is no justification for the City to hold onto land and keep an exhorbitant mill rate. i One year ago he proposed this be brought to the public. Council { said no. Now you are proposing this without bringing it to the public. Atty. Delahay said, regarding the two subjects. The appropriation and dedication of funds is legal. As to Mr. Wise's statement that he agreed with him, regarding restriction of future action of Council, Atty. Delahay stated Mr. Wise might be right, Atty. Delahay didn't say he agreed with Mr. Wise. If Council wishes to, they can delete paragraph b. Councilwoman Glick asked Finance Director Brown, is the ordinance in conformance with proposed action from the last work session? Mr. Brown replied yes. Mayor O'Reilly asked, if, in the event there is a substantial change in the budget, would we have to change this? Mr. Brown replied no, this is a revenue dedication. Mayor O'ReMy asked if we pass this tonight, have we passed the budget? Council- man Ambarian replied no. MOTION: Councilman Measles moved, seconded by Councilman Mueller, to approve the ordinance. Motion passed with Councilman Ambarian voting no. B-4 Ordinance 674-80 - Amending Title 23, pay Range increase for C KENAI CITY COUNCIL. JUNK 4, 1080 Page 5 Senior Citizen Coordinator. MOTIONS Councilman Malston moved, seconded by Councilman Measles, to approve the ordinance. There was no public comment. Motion passed unanimously by roll call vote. B-5 Ordinance 575-80 - Amending Ordinance 533-79 - Including Compaction Roller s Pick Up with Federal Revenue Sharing Monies - $20, 000. MOTIONS Councilman Malston moved, seconded by Councilman Mueller, to approve the ordinance, with amendments as requested by Finance Director Brown in his memo dated May 22, 1080, There was no public comment. Councilman Ambarian asked Public Works Director Kornelia, is he "speeine on 1080 or 1091 vehicle. Public Works Director Kornelis replied the specs say that all equipment must be new and latest model, currently advertised to the general market. Motion was approved as amended by unanimous vote by roll call. B-8 Renewal of Liquor License - Kenai Joe's Clerk Whelan reported the Borough has received all past duo pay- ments for sales tax from Kenai Joe's, MOTION; Councilman Malston moved, seconded by Councilman Measles, to direct administration to send a letter of non -objection to the State Alcoholic Beverage Control Board. Motion was approved unanimously by roll call vote. I 4 I I' �, KENAI CITY COUNCIL JUNE 4, 1980 Page 0 B-7 Transfer of Liquor License - The Rig Bar Clerk Whelan explained there is a discrepancy in the sales tax records, the manager is halibut fishing, and cannot research the problem until he returns. With Council approval, she will write the Alcoholic Beverage Control Board and request a 30 day extension. Council agreed. C. PERSONS PRESENT SCHEDULED TO BE HEARD 0-1 Ann Delaire - Community a Regional Affairs - nay Care Center Ann Delaire spoke. She explained the Day Care Assistance Program is designed to help mothers. There are 1000 parents on the program in the State. Without this assistance they would not be able to work or go to school. Local government has the option of administering the program or subcontracting out. The City's only responsibility is to set up an account for holding funds. It is up to the municipal government how they administer funds. It is given to parents on J a percentage basis, from 100% to St. Mayor O'Reilly asked it the municipality has a subcontractor, how fast can the State catch any problems? Me. Delaire replied there is a quarterly audit. Mayor O'Reilly asked how much money would be involved in Kenai. Me. Delaire replied based on licensed slots, you have two day care centers, or WOO slots. The amount, based on last figures, would be $30,000. Councilman Malston asked, it Kenai contracts this out, what would the City's responsibility be U it went wrong? Ms. Delaire replied it would depend on the degree of involvement. However, this has never happened. Councilman Ambarian asked it it to subcontracted, does the subcontractor have to be bonded? No. Delaire replied none of the others are, she can't say for sure. Councilman Ambarian asked are there charges made by the subcontractor to handle the program? Ms. Delaire said that depends. Some subcontractors do receive certain payments, de- pending on the City. Some cities don't want anything, to do with it, so they turn it over to a subcontractor. Some cities pay their people, some cities do it free. Councilman Ambarian asked are there cities that have more than one day care center handling administrative duties? Me. Delaire answered no, one takes care of all the day care centers. Councilman Mueller asked it the City takes the program, would it be Borough -wide or just City? Ms. Delaire replied only residents of Kenai. Councilman Malston asked why. Ms. Delaire explained her understanding is if the Borough wants the program IF. I KENAI CITY COUNCIL. JUNK 4, 1080 page 7 they would contract with the department for the program and all the residents of the Borough would be eligible to receive day care benefits. If the City applies for the program, we contract with the City, Therefore only the City residents are eligible for benefits. Councilwoman thick asked how closely do they check if they are in the City, Ms, Dolaire replied they can check the addresses, if that's what Councilwoman Glick means. Councilwoman Glick asked, regarding bonding. Could we require bonding with the subcontractor? Ms. Delaire replied yes. Councilman Ambarian asked does the Otate approve the subcontractor? Ms. Delaire re- plied yes. Finance Director Brown asked Ms, Delaire, frequently the subcontractor is independent. Are there any restrictions on being the owner? Me. Delaire replied no. Atty. Delahey read an opinion regarding day care center contracts, Ito asked Ms. Delaire why can't the State contract direct instead of through the City? Ms. Delaire replied by quoting from Alaska Statutes. She explained that by statute they must be with a local government. City Manager Brighton asked what are the qualifications for a subcontractor? Ms. Delaire replied they are working on the requirements now. A State and Federal background and office background have been suggested, but are not requirements now. But she said they woul4 look at this. City Manager Brighton asked if there was anything specific now. Ms. Delsire replied no. Councilman Muallor said it is needed Borough - wide rather than just City, Ms, Delaire noted at the Borough meeting it was defeated. Mayor O'Reilly asked if there was a time frame that the Council must act. Ms. Delaire replied the application must be in by June 15, 1090, The fiscal year is duly 1. If the Council wishes, they can set funds aside for one month for later action. C-2 Bob peterkin, Chairman of the Harbor Commission Chairman peterkin spoke regarding the letter to the Corps, of En- gineers. He explained the Corps. of Engineers has done a study. There is no problem with need, just the dredging costs. The Har- bor Commission has asked for $500,000 grant for the study. The Corps, of Engineers needs a letter. The have completed the $5,000 study. The total project will be: A turning basin An entrance channel (The third item does not pertain) There is a $2 Million appropriation. The harbor Commission would like to put out bids for dredging. The letter should ask for a hold on the money. Mayor O'Reilly explained the design originally r ... 41 4.. E, KENAI CITY COUNCIL JUNE 4, 1980 Page 8 submitted is the "worst -case" engineering. Chairman Peterkin said if you can't get past the State nept. of harbors, it is dead. That is what happened last time. Councilwoman Glick noted at that last Harbor Commission meeting, we discussed the letter from Mr. Moore, regarding his "willingness to cover." She said Com- missioner John Williams said that is not what was meant. Chairman Petorkin said yes, this is just to put a hold on funds. Bofore the City will obligate any funds, the Harbor Commission will come before the Council again. This is just preliminary. Councilman Hall asked you're at the point where it will rp to the Corps.? Com- missioner Peterkin replied no. the Corps. has already made the design. Atty. Delahay said tho letter from Mr. Moore is unclear. Mr. Moore says the State will not pick up the costs, will the City? Possibly the Mayor's letter whould make clear that the City is con- tingent upon State funding. Chairman Peterkin said those figures in the letter are '-relevant, this is not the harbor we are going to have. MOTION: i Councilman Ambarian moved, seconded by Councilman Mueller, to direct the Mayor to send the letter to the Corps, of Engineers. MOTION, Amendment: Councilwoman Glick moved, seconded by Councilman Maleton, to have Atty. Delahay's comments included in the letter. Councilman Ambarian said he agrees, but the letter refers diroetly_ to maintenance costs, Mayor O'Reilly asked is this contingent on Statecosts of capital costs? Atty. Delahay replied yes. Mayor O'Reilly noted his letter says current maintenance costs. He would prefer to leave it as the Harbor Commission has it. Chairman Peterkin said the letter from Wayne Reynolds specifically asks for the City to accept responsibility for $245 Thousand maintenance costs. If this is changed, we are going to lose the Corps. of Engineers and the boat harbor. It's that simple. Councilman Malston said the pur- pose of the letter for the Corps. of Engineers is to continue the study. Mayor O'Reilly agreed. Councilman Ambarian said they need the letter to the State engineering. Chairman Peterkin replied yes. They have the funds, but cannot proceed until they receive the letter. Councilman Malston said in discussion with the Corps • , ..i are they aware there should be a different design? VOTE, Amendment: �r .i 1 / KENAI CITY COUNCIL. JUNE 4, 1080 j Pago 0 Motion failed unanimously by roll call vote. VOTE, Main Motion: Motion passed unanimously by roll call vote. Mayor ©'Reilly asked Chairman Petorkin to disouss the Coastal Zone Management application. Mayor O'Reilly explained this is where you'll be seeking Coastal Zone Management funds in addit- ion to $600 Thousand for administrative support and the application has to be submitted through the Borough. It is 00/10 money. Council- man Ambarian asked, does it require Assembly approval. Chair- man Peterkin replied he didn't know. Councilman Ambarian asked if the Borough was the clearing house. Chairman Peterkin replied yes. Councilman Ambarian asked if Chairman Peterkin had talked to the Planning Department, Chairman Peterkin replied no, they are wait- ing for Council approval. MOTION: Councilman Ambarian moved, seconded by Councilman Measles, to approve submitting the application. Motion passed unanimously by roll call vote. Mayor O'Reilly asked Chairman Peterkin to discuss the ordinance regarding the non -area -wide powers of the Borough. Chairman Peterkin replied the Harbor Commission felt the Council should know how the Harbor Commission felt. There are Was ordinances before the Borough. MOTION: Councilwoman Glick moved, seconded by Councilman Ambarian, to swept the recommendation of the Harbor Commission and so advise the Borough. Motion passed unanimously by roll call vote. Councilwoman Glick asked would it be wise to direct the administra- tion to prepare a resolution. Mayor O'Reilly said yes. Councilman Ambarian said before we talk about a resolution, we should talk about the letter. The smell boat harbor in a Kauai project, but he feels in the long run we should not out off the possibility of assis- tance from the Borough. The letter is "slamming the door in a 0 # I KENAI CITY COUNCIL JUNE 4, 1080 Page 10 friend's face." The Port of Entry discussion should be loft open. Councilwoman Glick said she would like to tall Council, at the last Harbor Commission meeting, the Borough people wore there with many other people. The Harbor Commission said this was the boat procedure. If non-area-wido goes through, the City has the option to give up their harbor powers to the Borough. Chairman Peterkin said it non-area-wido, the City had the option to go along, with the Borough. With service area, the City could not. The intent was not to be abusive, it can be changed, Councilman Ambarian said the Borough has a definite split between service and non -area -wide powers. Mayor O'Reilly requested a copy of the draft resolution be sent to tho Harbor Commission and Chairman Peterkin. D. MINUTES D-1 Minutes of Regular Meeting, May 21, 1980 Mayor O'Reilly noted that Finance Director Brown had requested page 13, B-2, Ord. 565-80 - insert the revised figure, $1,002,130. Atty. Delahay requested page 21, 11-2, City Attorney Report - the dates of the convention are June U-14, inclusive. Minutes were approved as changed. E. CORRESPONDENCE None F. OLD BUSINESS P 1 Day Care Center MOTION. - Councilwoman Glick moved, seconded by Councilman Ambarian, to move for reconsideration. Motion passed unanimously by roll call vote. Councilwoman Glick explained her reasons for reconsideration: 1. People in opposition should be heard. c- R f r. J KENAI CITY COUNCIL JUNE 4, 1980 Page 11 2. We should get all the information available before making a decision. Councilwoman Glick continued. If the people spoke last time, they could make it short. She then referred to the memos requested from the administration at the last meeting. Public Comment: Beth Goedes: She teaches in a day care center. She has no children. This is a valuable program, it gets people back into work. Craig Fitzgerald: He is with the Div, of Social Services. There is a need here, there were three persons living within the City in the last month that would benefit, and his supervisor has told him they get an average of about two requests per month for this kind of service. Sharon Jean: She just wanted to thank the Council for reconsidering their action. Carol Calvert: She has lived here four years, she opposes the program. People have other avenues if they wish to attend school: 1. Alaska student loans 2. Government grants 3. Correspondence courses She said she doesn't believe those returning to work would be shoulder- ing the burden by paying taxes while we, now, don't. The money has already been appropriated, and the number of children and the amount of child care expense will not reduce, ibwever, their taxes as they go to work, will reduce and in three years should be supposed- ly "zipped." She continued, the statement - "The money is there" - is a flimsy excuse. Those who need services could form a co-op. "Where there's a will, there's a way." This will not promote self-suffic- iency. It gives a minority group the ability to live beyond their means. Laura Edmonds: She has no children. Her mother, if she had the program, could have stayed in the community. A day care center is better than a baby-sitter. Steve Goedes: Referring to the statement that there were ways to r KENAI CITY COUNCIL, JUNK 4, 1080 n Pago 12 go to school. However, they only pay school; rent, expenses, and help to got a job are not paid. Carol Calvert: The statement regarding books, etc. - each program of government grants goes to $3,000, Peggy Kent: There are two programs for school that go to $3, 000, but it you don't need it, it won't go that high, Susan Toliday: This is not just another give-away, Weltare gives $000 to stay home, day care gives you $200. There's something wrong with that system. Sandra Hinrichs: She had said this is important for the City. Others have called besides those here tonight. Craig Fitzgerald: There are no funds to provide day care for low income families for working people. Councilwoman Glick asked is the program just for women, not for couples. Sandra Ilinrich replied it is based on income, Craig Fitzgerald: It In used mainly but not limited to women, It is subsidized only if the parents are working, Councilwoman Glick said the Council was told the Borough could net participate, There was a letter from the Borough, did Atty, Delahay get that? Atty. Delahay replied yes, he then reviewed the letter from Lee McAnerney, Dept, of Community is Regional Affairs, to the Attorney General's Office. Ile said he agreed with the Borough Attorney, The Borough does not have the power. The City can enter into an agreement, In reviewing the contract, the State could deal directly with the sub con&aetor. There is a responsibflity when the City enters into a contract, the City should require bonding, City Manager Brighton asked, this refers to a "Save Harmless" contract. Would that be the same thing? Atty. Delahey replied no, there should be a hold -harmless clause and a bond, Councilwoman Glick asked Mrs. Hinrich about her ad stating there was no minimum charge over 2 years of age. Mrs, Iiinrieh replied yes, she does not charge for lunch, She was getting lots of kids for lunch only, Councilwoman Glick asked do we know how many people that will benefit? And it the City's involved, what other City services will suffer? Mrs. Iiinrich replio,4 theme is a maximum amount available, it will not go beyond this, Sharon Jan replied that is difficult to figure, Mayor O'Reilly asked Finence KENAI CITY COUNCIL, JUNE 4, 1080 Pogo 13 Director Brown. Mr, Brown replied there is labor time involved, getting started, but once it is started, no more than one -halt hour per month. lie can't see a problem. Councilwoman Glick said she asked for reconsideration. She thought it was wrong to pass out a flyer when it was not on the agenda. Regarding the statement that they shouldn't do any talking or the Council will pick on them, and It will possibly generate a "no" vote. The statement really bothered her. She found out, much to her chagrin, it was a paid City employee who gave this advise. She doesn't think that's right, If this project is as important as these people may it is and as they feel it is, then it's worthy of discussion pro and con. And it's also worthy to be a specific agenda item, and she would like to object to the fact that we have paid City employees who are being paid to work for the City employees as a whole, giving out this kind of information. If they wish to give information they should give the Correct informa- tion outlining the correct procedure to get an the agenda. Because it the item is worthy of discussion, it's worthy of being there in a proper fashion. MOTION, Amendment: Councilwoman (click moved, seconded by Councilman Ambarian, To include that the City advertise for a sub -contractor and he be eligible for bonding in the amount of the funds available to the City for the program in addition to the hold harmless clause. Councilman Ambarian noted a general contractor's bond is $5000 in the State, Councilman Malston said at that point it is not necessary to vote on this. We eon cheek into this. All we are doing is enter- ing into an agreement. Atty, Delahay said they say you can sub- contract later. But the City cannot enter into a contract without specifies. Councilman Nialston said it the costs of bonding are as Councilmen. Ambarian says, it is unreasonable to expect that kind of expense. We do not know, Councilman Ambarian said that is not the exact amount of cost, but the amount of assets involved, Councilmen Malston asked is there a difference between a general bond and a day care bond? Councilman Hall replied, he didn't know, but for a $6000 general contractor bond, you needed at one time $75 Thousand worth of assets, the cost is $250. Councilwoman Glick said we are not talking about a general contractor bonding, It should be similar to a bank messenger type. Councilman Mueller said there is a difference between contraetor's and financial security bond. It would be much less. Councilman Hall asked If the City has people bonded, Finance Director Brown replied yes, but he did not have tho exact information, Councilman Ambarien said not Z KENAI CITY COUNCIL JUNE 4, 1980 �) Page 14 cost, but amounts of assets needed. Atty. Delahay said the City pays the bond, it has considerable assets. fie suggested the bond be paid in two quarters. VOTE, Amendment: Motion failed, with Councilmen Nall, Mueller, Ambarian, Malston, and Mayor O'Reilly voting no, Councilman Measles and Councilwoman Glick voting yes. MOTION, Amendment: Councilman Ambarian moved, seconded by Councilwoman Glick, to amend the motion to require a $5000 bond. Councilman Malston said it is too early to decide bonding. City Manager Brighton said it is possible the State may have its own criteria. Councilman Malston said this could be in the contract, VOTE, Amendment: Motion failed,with Councilmen Hall, Mueller, Malston, Mayor O'Reilly voting no, Councilmen Ambarian, Messles,Counoilwoman Glick voting yes. Mayor O'Reilly asked the Council to vote on City participation. Councilman Ambarian said this should include words in the bid that bonding will be required. Councilman Malston said we are not advertising, we are getting an application for approval. City Manager Brighton said then we will get written permission from Community 0 Regional Affairs. VOTE, Main Motion: Motion passed, with Councilwoman Glick and Councilman Measles voting no. 0. NEW BUSINESS 0-1 Bills to be Paid, Bills to be Ratified. Finance Director Brown noted there was an additional charge from Anderson's Snow Plowing for street sweeping, for $4,300. MOTION: n „J KENA1 CITY COUNCIL JUNK 4, 1080 Page 15 Councilman Measles moved, seconded by Councilman Mueller, to approve the bills with the addition. Motion passed unanimously by roll call vote. 0-2 Requisitions Exceeding $1,000 MOTION: Councilman Measles moved, seconded by Councilman Ambarian, to approve the bills. Motion passed unanimously by roll call vote, 0-3 Ordinance 570-80 - Amending Ordinance 537-70 - Merit System. MOTION: Councilwoman Glick moved, seconded by Councilman Malston, to introduce the ordinance. Motion passed with Councilman Ambartan voting no. 0-4 Ordinance 077-80 - Adopting Annual Budget for FY 80-81. Mayor O'Reilly asked Finance Director Brown if it was okny to leave it blank, Mr. Brown replied it was okay to leave until June 12, 1980, John Wise asked to speak. Ito said it is illegal, It Is not a complete ordinance, Mr. Brown said he can't produce the document, but he has the figures, City Manager Brighton suggested the Council could amend it at the June 12 meeting. Councilman Ambarlan said the ord- inance is usually introduced with a letter from the City Manager presenting the budget to Council, Mr. Wise said with wholesale changes, it would be wrong, it is fraud, The Council is within their rights to modify, but it it doesn't agree with the newspaper, it is fraud, Mayor O'Reilly asked Atty, Delahey could we introduce it as an emergency ordinance? Atty, Delahay replied an ordinance that pertains to finance can be an emergency ordinance. Mr. Wise is correct, Mr. Wise said it may be legal, but the Council is denying the public a chance to review the budget, Mayor O'Reilly Tasked Mr. Brown when the document would be ready, Mr. Brown replied June 6,1900. Councilman Malston asked Mr. Wise, how was it handled in 1979? Mr, Wise replied it was handled the same way, but G i �r4 - , 1 1 KENAI CITY COUNCIL ' JUNE 4, 1080 Page 10 he was a victim of Council. Atty. . nelahay said the public does not have to be heard at introduction. The public should be allowed the right to review before passage. Councilwoman Click said the public wry-h coo h,k_ n 4ei-in the past to comment. The budget will be ready Friday (June 8) . Councilman Ambarian said the ordinance refers to the "attached budget." It is not there. Mayor O'Reilly asked Mr. Brown if he could make it available as soon as possible for action on June 12, 1980. After a recess, Atty. Delahay asked for a re -wording of Ordinance 577-80, at the suggestion of Councilman Ambarian. Section 1 would add that the document is going to be available for g g examination by the public by June 0, 1980 MOTION: Councilman Ambarian moved, seconded by Councilwoman Glick, to introduce the ordinance as amended. Motion passed unanimously by roll call vote. J 0-5 Ordinance $78-80 - Increasing Revenues for EPA Sewage Project - $25,000 MOTION: Councilwoman (click moved, seconded by Councilman Measles, tointroduce the ordinance. Motion passed unanimously by roll call vote. 0-0 Ordinance 579-80'- Amending Title 4, Uniform Building Code. MOTION: 1 Councilman Malston moved, seconded by Councilwoman Glick, r to introduce the ordinance. Motion passed unanimously by roll call vote. •r `o s 0-7 Ordinance 5W80 - Setting Tax Levy for FY 1980-81. - MOTION: 1 1 Councilman Ambarian moved, seconded by Councilman Measles, J � 4 - � r' J KENAI CITY COUNCIL. JUNL' 4, 1080 Page 17 to introduce the ordinance, as amended. Atty. Dolahay reminded the Council the report had to be in to the Borough by July 12. Councilman Ambartan asked is there no mill rate July l to July 12. Atty. Dolahay replied it has a retroactive effect. Councilman Ambarian asked it it cannot commence before the ordinance is in effect. Atty. Delahay replied it can be. Mr. Wise asked what is the purpose of dolayed effective date? Atty. Delahay replied the ordinance is not an emergency or appropriating funds. Mr. Wise said the Clork cannot forward a letter to the Bor- ough if it is not effective, can she certify? Atty. Delahay said the mill levy is set on the calendar year, Mayor O'Reilly asked it the statement can say, "has been sat?" Mr. Wise said the reason for the delay is to give an opportunity for a court challenge. It it takes an emergency ordinance, make it an emergency ordinance. Motion passed with Councilman Ambarian voting no. 0-8 Resolution 80-78 - Establishing Terminal Lease Rates for Pee Schedule for PY 1880-81. MOTION: Councilwoman Glick moved, seconded by Councilman Malston, to remove the resolution from the table. There was no public comme�st. Mo♦.on vJ00, gjpsOV• J✓4CAAIVV%VKG�.� �� rU,� •0.�, Councilman Ambarian said regarding the rental cars commission. On related operations, would Raven lease qualify under related operations? It so, would it be 10% of gross? Councilwoman Glick said Raven's a limo service, that is what they have always had. Atty. Delahay said a rental car lease is 10%, it applies to liability insurance, The Council can change Raven for rental service if they so wish. MOTION: Councilman Ambarlan moved, seconded by Councilman Measles, to amend the lease rates as discussed. Councilman Measles asked why do we have different charges, - ` - some are percentage, some square foot. City Manager Brighton j said a car rental lease also takes parking space. Raven does not. Raven has three vehicles, Rentals have ten each. Most airports I Voif_ . - ,,. ,_,_ 4. , KENAI CITY COUNCIL JUNE 4, 1080 Page 18 charge rental for parking area, we do not. Airport Manager Swalley said he had a survey of airports, but he has not received one from Alaska. Rentals are on the same basis as taxis. MOTION TO WITHDRAW: Councilman Ambarian withdrew his motion, with concurrence by Councilman Measles. F-1 Andy's Flying Service Lease MOTIONS Councilwoman Glick moved, seconded by Councilman Malston, to approve the lease. Motion passed unanimously by roll call vote. G-9 Resolution 80-91 - Transfer of Funds - Fire Dept. Personnel to Attend Training School - $250 MOTWNs Councilman Malston moved, seconded by Councilwoman Glick, to approve the resolution. There was no public comment. Motion passed unanimously by roll call vote. `! G 10 Resolution 80-02 - Transfer of Funds - Advertise Janitorial Service, Library - $25. MOTION: Councilman Mueller moved, seconded by Councilman Measles, to approve the resolution. There was no public comment. - _- Motion was approved unanimously by consent. _i 0-11 Resolution 80-03 - Transfer of Funds - Council on Aging, Provide Funds for Balance of Year - $235 i 'i r •_.}-i'�((rM•rr�N ` r.rl. Ia a /•fiiTn. I � r i KENAI CITY COUNCIL JUNE 4, 1080 Pago 10 There was no public comment. I Motion was approved unanimously by consent. 0-12 Resolution 80-04 - Transfer of Funds - Library Building Painted - $600 { MOTION: f Councilman Measles moved, ,seconded by Councilman Malston, l to approvo the resolution. f Notion was approved unanimously by consent. 0-18 Resolution 80-05 - Accepting grant Offer, EPA Sower Project - " ;18,760. I MOTIONs Councilman Malston moved, seconded by Councilwoman Glick, to approve the resolution, i j There was no public comment. 6 Notion was approved unanimously by consent. 0-14 Resolution 80-08 - Accepting Grant Offer, EPA Sower Project - �� y MOTION: Councilman Malston moved, seconded by Councilwoman Click, to approve the resolution. There was no public comment. I o Notion was approved unanimously by consent. 0-15 Resolution W07 - Awarding Bid for Word Processing Equipment - $8, % ou , ri tJ I - - + MOTION: Councilwoman O1isk moved, seconded by Councilman Measles, to approve the resolution. I i ' � I F 1 I ■ " __ sj� 1 KENAI CITY COUNCIL JUNE 4, 1080 Page 20 Atty. Delahay noted there wero some small changes in the rosolu- tion, but the total did not change. / Councilwoman Chick 4� 1 1 d t ,O Pt (AA r y-Y. A v'1' •� ✓ lMd Councilman Measles agreed to aeoept the changes in the motion. There was no publio comment. Motion passed unanimously by roll call vote. 0-10 Lease - Dollar Rent-A-Car NOTION. - Councilwoman Glick moved, seconded by Counoilman Ambarian, to approve the lease. Airport Manager Swalley noted he has received the signed lease. Motion was approved unanimously by roll call vote. 0 17 Lease - Raven Transit MOTION: Councilman Mueller moved, seconded by Councilman Measles, to approve the lease. Councilman Ambarian requested an amendment to the lease, with concurrence of Councilman Measles, Councilman Mueller asked if the lease would have to go back to graven• Mayor O'Reilly replied yes. Councilman Mallon asked Hit would cost them more money. City Manager Brighton replied no. Ar►..,.a. O'rrrpUe40 W"dL"'$ Q.A1j b%1 1` r(t,,` VO�W N • hA'4 )�.Oto Vol 0-10 Special Use Permit - Ball Brothers, Inc • N vN ; ►v� I y 1i „' lr,pNl 0 1(A®�, 9 Special Use Permit - Columbia ward Fisheries 1 0-20 Special Use Permit - Cook Inlet Processors�� o •_ 0-21 Special Use Permit - Dragnet Fisheries 0-22 Special Use Permit - Evans Aviation - 0-23 Special Use Permit - Kenai Packers 0-24 Special Use Permit - Salamatof Seafoods MOTION: Councilman Ambarian moved, seconded by Councilwoman Glick, 4 i KENAI CITY COUNCIL � JUNE 4, 1880 Page 21 to request all be approved as one vote. Atty. Delahay said they can join with unanimous consent of the Council. Motion was approved unanimously by roll colt vote. Councilman Mueller asked where Kenai Packers lease was. Air- port Manager Swalley said three will be on the ramp. Councilman Ambarian said he would like the square footage, it would be helpful. What is the cents per square foot? Mr. Swalley replied 2 cants - per square foot per month. Councilman 1.1nl1 asked is it the same on hard stand as gravel? Mr. Rwalley replied yes. 0-28 Consent to Sub -Lease - Gerald L. Wasson MOTION: Councilwoman Glick moved, seconded by Councilman Malston, to approve the sub -lease. I J Councilwoman Glick said this has been before Planning a Zoning and U was approved. Councilman Mueller asked if Atty. Delahey had checked the sub -lease. Atty. Delahay replied to some extent. The " original lessee is still responsible to the City. Councilman Ambarian said is there a better procedure for collecting fuel fees? Mr. Swalley 1 replied the wholesaler is responsible to the City for a report. He did not know there was a problem, Councilman Ambarian said there have been large sums of money paid by pilots. We take the word of the dealer. Mr. Swaney said we have received large amounts of money. Motion passed unanimously by roll call vote. 0-26 Amendment to Lease - Paroo Enterprises MOTION: Councilman Ambarian moved, seconded by Councilman Malston, to approve the amendment to lease. Atty. Delshay said there was no trouble with the lease. -T- Motion passed unanimously by roll call vote. o � 0-27 Change Order Payment - C112M Hill - Sewer Treatment Plant - I I w i -� i I KENAI CITY COUNCIL JUNK 411090 Pago 22 $9,300 Public Works Director Kornolis said this is not a ehango order, it is asking tot, authority to do tho work. Mayor n'Roilly asked are we reimbursed. Mr. Kornolis replied we flay 12-1/2%. Atty. Dolahay asked isn't this the relocation that Homer Elentrio will ray? Legally we are not obligated to pay. City Manager Brighton said Homer Electric has agreed to pay, right after they agreed, Atty. Delahay found a letter from EPA, We should sot policy as to who should nay. MOTIONS Councilman Ambarian moved to postpone so administration can got together with a clear package. Motion failed for lack of a second. - Atty. Delahay suggested a compromise. If wo can get a grant, we will @hero costs. -� MOTION. Councilman Ambarian moved, seconded by Councilman Mueller, to so move in this case. Councilwoman ©link asked they will pay if no grants are available? Councilman Ambarian said as general policy, hie motion was on this action only. MOTION, Withdrawn; Councilman Ambarian withdrew his motion, with concurrence of Councilman Mueller. MOTION: Councilman Ambarian moved, seconded by Councilman Measles, to set this action as general policy. Finance Director Drown said we cannot guarantee a grant, it will be 3 years down the road before we know if it's grant eligible. We have to make a payment now. City Manager Prighton suggested we make the policy that, if a grant is available, we will pursue. E, 1 i i KENAI CITY COUNCIL JUNE 4, 1080 Pare 23 MOTION, Withdrawn: Councilman Ambarian withdrew his motion, with concurrence of Councilman Measles, Councilwoman Glick asked are we under a time frame, Mr. Kornelix replied ton days. MOTION: Councilwoman Glick moved, seconded by Councilman Malston, to allow Homer Electric Company to pay for relocation at this time, Motion passed unanimously by roll call veto. 0-28 Payment to C112M Hill - Sower Treatment Plant - $7,000 and $1,290, MOTION: Councilman Ambarian moved, seconded by Councilwoman Glick, �. to approve the payment. _J Motion passed unanimously by roil call vote. H. WORTS H-1 City Manager City Manager BriglOn spoke, 1, Regarding alternate programs for salary schedules and job des- criptions, he has not been able to complete this, The Municipal Lcmpue plans to start a study all over Alaska, He needs more time. Council speed to wait. 2, He was contacted by the Dept, of Revenue regarding tho license bureau in Kenai, They have made up their mind that they will com- bine offices, it is final, He told them that we have made space svail- able. They said they had not been told. Councilman Nalston said he thought we should make a fuss about it, through legislators, eto, Mr. Brighton suggested the media help and letters from the Mayor, etc, 3, The personnel hoard recommendations have not been received from Council. J t� r I l_1 KENAI CITY COUNCIL. JUNP. 4, 1080 Page 24 4. The Public Works Committee met with the Beaver L4wn Wants Committee. Minutes were kept. AdminiRtration will contact the highway department regarding their problems, The itoy Scout Park rent was not paid. The land will be coming to the City from the state. 5. He is trying to find out how we acquire money from Juneau on those grants from the Legislature. lie would like Council direction for Recreation Director Mc0illivray. Councilman Hall asked was it to be planned by licensed engineers or an architect. Mr. Kornelis replied yos. Councilman Ambarian said by the time we have the money, they will have the proposals. 0. There will be two meetings Juno 10 at the Community Center sponsored by the Dopt. of Revenue regarding withholding State tax. MOTLONs Councilwoman Glick moved, seconded by Mmncllman Malston, to direct the administration to proceed with contacting the high- way department regarding Thompson Park problems. Motion passed unanimously by roll call vote. Councilman Ambarian said we should look at the whole highway area. Mr. Kornelis agreed. Pollee Chief Ross said they had a review a few years ago, it there are other problems, please contact him. Councilwoman Glick suggested this should be done before the street linos are painted. H-2 City Attorney Atty. Delshay noted the lease clause change. Councilman Ambarian said in the past, this has been land if improved. Finance Director Brown said water 4 sewer and paving are improvements. The lease holder improvements are not . Councilman Ambarian said this is practice. MOTION: Councilman Ambarian moved, seconded by Councilman Half , to approve the lease clause change. F. r KENAI CITY COUNCIL JUNE 4, 1880 Page 25 Motion passed by unanimous approval. (late 54 lease is not here. Atty. Delahay also reminded tho Council that the personnel Board recommendations have not boon submitted, and we do not Kaye enough names to begin a committee. Regarding the lease with the Historical Society, Could we make it one lease to continue until cancelled with SO days notice, and janitorial charges. This was approved by unanimous vote of the Council. i Atty. Delahay discussed the Peninsula Oilers lease. MOTION: Councilman Amberian moved, seconded by Councilman Mueller, that the original lease be followed. Mr. Brighton asked about the clause about insurance. Councilman Ambarian said it is as the original lease. One year. Councilwoman Glick asked about the like -kind improvements. Do we have the original plan? Recreation Director McGillivray said he had one. Councilman Ambarian requested this be reported at the next meeting. Mayor O'Reilly noted the liability insurance will be ready before the games. i Councilman Malston noted he cannot vote. Mayor O'Reilly said he is now able to. t Motion passed with Councilman Melston abstaining. 'r Regarding the Glacier State lease. This is annual, he would like to change the terms to a longer term lease. He would also like a one page appraisal. He wants a five year lease. SIOTION: Councilman Malston moved, seconded by Councilwoman O ick, to approve the long term lease. Atty. Delahay said the State library wants a copy of the Code. He would like to publish it in-house, and make extra copies for sale. ✓ . r I 1 Y t KENAI CITY COUNCIL �JUNE 4, 1980 Page 26 Councilman Ambarian said we could make copies and use a cheaper cover. MOTION: Councilman Malston moved, seconded by Councilwoman Glick, to so move. Motion passed unanimously by roll call vote. Atty. Delahay said the law suit with Joe Nord, Sea Catch. We may - have to pay off Joe Nord, it is still in bankruptcy court. H-3 Mayor Mayor O'Reilly said he will need a finance sub -committee formed. H-4 Clerk Clerk Whelan asked for leave June 26, 27, 30 and July 1. Council J agreed. The Census is complete in the City. TelephoneP�o�ll on the landsoaping of Little League Fields was � ' reported. C o 1tiv� �. i { r✓ a n A vv►b Q� ' A i1 Nl0 U f N ,�+•� i �T"'� (Q 0 t . H-5 Pittance Director Finance Director Brown said, regarding the microfilm. The specs will not be here by the end of the year, the money will lapse, it will have to be rebudgeted. The budget will be available at the library and the City Hall. H-6 Planning s Zoning None H-7 Borough Assembly Councilman Ambarian spoke. 1. The hospital mill rate was set. J 2. The real/personal property mill rate was set. 3. School improvements were voted. '. a 1 I a ' i I I I 1 i I i -- a _- a. .3 r .ram. ,..� �_ r.. 1..;. )I i�.-. �_... • r, ,�: KENAI CITY COUNCIL JUNE 4, 1080 Pago 27 4. Bond money will be on the October ballot 5. He will be in Juneau on the leasing of upper Cook Inlet June 23, it will be a public hearing. H-8 Harbor Commission None 1. PERSONS PRESENT SCHEDULED TO BE HEARD Public Works Director Kornelis spoke. IIe said there is an airport ramp problem. In the hauling of gravel, we may have an overrun. He asked the Council to approve a change order with a motion not to exceed the amount of $30, 000. MOTION: i Councilman Measles moved, seconded by Councilwoman Glick, to so move. i Notion passed, with Councilman Ambarian voting no. i ADJOURNMENT Meeting adjourned at 12:15 AM, Respectfully Submitted, } G Whelan, City Clerk o I