Loading...
HomeMy WebLinkAbout1979-07-18 Council MinutesAe3RNI)n IMPIAl CITY COUNCiL 1111014,Att hIlIPTINO JULY 19, 1070 a 7.00 PM, P.NNAI P111MI : RAFETY 91111DINof 1'Ll:plfY. OP Ai,l,i:lflAtlCP, A. ROM, CALL AGENDA APPROVAL I;, IiRARINOB 1, Ordinance 511-70, increasing estimated rovanuen/approprintionts in the capital project entitled "Redoubt way Paving" 2, Ordinance 012-70, creating a capital projrot fund entitloot "East Kennl Park Trails" S, Ordinance 010-70, establishing a special revenue find entitled "Kenai Senior Citizann" 4, Application for Recreational Site Mamma - Twin City Raceway C, PERSONS PRESENT SCIIi:f)U1,111) TO HE MARY) 1, Rev, Arthur Knight - Mayor's rounell on Aging 2, Rev, Glenn bryarn - requesting amendment to Zoning ordinance S. Kenai Lions Club - directory sign for City n, ASRSUTP,fi 1. > Ifnutof of the regular meeting of :uiy 5, 1070 I,, CORK➢,SPONn171ICP, 1, Komi Peninsula Community Caro Center 2, Komi Arts a fiumanitfon Council P, OLD BUSINESS 1, Winterization of Airport Terminal Project 2. Float Plano Basin tiiscusalon 2, Thompson-Cssen lasso renegotiations 4, Peninsula Enterprises - Mukluk Building 5, Ordlnanoa 512-70, adding a Step "CC" to Classified Salary ffebe fine 6, Addendum to Agreement between City and Ted Porui a Ansoefatcs 7, Payment to Ted Perot 0 Assccintns 8. Addendum to Agreement between City and CUM 11111 - Airport improvements Project a, ?IRV/ DUSRSP,Sif 1. Bills to be paid - bills to be ratified 2. Requisitions exceeding $000 iI, Ordinance 5I7-70, amending Code rotative to dumping or discharge of septic material into the City sanitary sower system. 4, Resolution 70-100, *warding contract for repainting outside trim & apparatus doors of the Kenai Public Safety Building 5. Resolution 70-101, transfer of monies In Animal Control Budget 6, Resolution 70-102, transfer of monies to cover costs for repainting trim and apparatus doors of the Public Safety Ruilding 7, Payment to Ted ➢oral 0 Associates - Komi Jfpur Waterline Inspection 9, Periodic Estimate fro, I - Poxhford Corporation e Renovation of Wall Ilouso 101 0, Payment to Timberline industries, Inc, for addition to Animal Shelter 10, Periodic PWInude flo, 1- Cordova Construction - modifirstions to Sewage Pumping Sins. 11, Contract Change Order 02 - Cordova Conh1ructlon - Kenai - Milker Low 12, Lcako rf Atrpnrt Pncfiltfrs - ifertr Pirporntlon 13, Lasso ird Airport ➢acillifen - Fbwen Tranalt 14, Leate of Airport ➢acilliles -Tesoro Alaskan Potmleum C-orporntlen 11), fipMlsl Ure Permit to display a poster in Terminal - The Sheffield house W, Confirmation of JIMborGommimsiner -'tr, Wililnto Rurnaft If, REPORTS I. City ltensgrr 2, City Attorney a, lawyer 4. City Clerk 6, Finance Dirocwn J 6, Planring a Zoning Commiroln 7, Lwough Aneombly e. Public Storks Co rmilte- from C,rninell 9. Advisory florbor CrimmlfMton MAYOR a COTIMIJ, - Q1,W5TiC018 M. C�i'1'rJ rTfS; i. DY,fif;(3rSS PRPSPfST !;fYf f:Cf1P,BUfA,t) Tri J.'E itPARn 9 - 6 , ti • KENAI CITY COUNCIL - REGULAR MEETING ULY 18, 1070 - 7: 00 P.M. `IMNAI PUBLIC SAFETY BUILDING MAYOR VINCENT O'REILLY PRESIDING PLEDGE OF ALLEGIANCE A. ROLL CALL Pry_ Michael Seaman, Phillip Aber, Edward Ambarian, Charles Bailio, Betty Glick, Ronald Malston and Vincont O'Reilly. Absent: None AGENDA APPROVAL Mayor O'Reilly advised that Ordinance 518-79, "Senior Citizen Outreach Worker" and Rosoiution 79-103, requesting rezoning of City owned land@ be added at this time to the agenda. Council so concurred. B . HEARINGS B-b Ordinance SU-79 Mayor O'Reilly read Ordinance 5A-70 by title only. "An ordinance increasing estimated revenues and appropriations in the Capital Project Fund entitled "Redoubt Way PavingP There was no public comment, Acting City Manager Brown advised that Homer Electric Association responded that they felt the $200.14 charge to the City for lowering of lines on Redoubt Way should be in addition to the $1,000 settlement. Mr. Brown advised that based upon their counter- offer, the ordinance amount would be increased to $1,721. MGTION - BRING FROM TABLE Councilwoman Glick moved, seconded by Councilman Seaman, to bring the matter of Ordinance OU-79 from the table. Motion passed unanimously by roll call vote, VAyrION: Councilman Ambarian moved, seconded by Councilwoman Glick, for adoption of Ordinance 511-79, increasing estimated revenues and appropriations in the capital project fund entitled "Redoubt Way Paving" in the amount of $1,058, Motion passed by roll call vote with Councilmembers Seaman and O'Reilly voting no, _,,B-2: Ordinance 512-70 Mayor O'Reilly read Ordinance 512-79 by title only, "An ordinance creating a capital Project fund untitled "East Kenai Park Trails" and increasing estimated revenues and f r i July 18, 1070 - Page 2 � appropriations in such fund by $27, 006 ," i There was no public comment. r i MOTION: Councilman Malston moved, seconded by Councilwoman Glick, for adoption of Ordinance 512-70, creating a capital project fund entitled "Last Kenai Park Trails" and increasing estimated revenues and appropriations in such fund by $27,090, Motion passed unanimously by roll call vote, B-M Ordinance 510-70 Mayor O'Reilly read Ordinance 516-79 by title only. "An ordinance establishing a special revenue fund entitled "Kenai Senior Citizens Project PY 1979-80" by increasing estimated revenues and appropriations in the amount of $40,432." There was no public comment, MOTION: Councilwoman Glick moved, seconded by Councilman Malston, for adoption of Ordinance 510-70, "Kenai Senior Citizens Project PY 1979-80," Motion passed unanimously by roll call vote. B-4: Application for recreational site license - Twin City Raceways MOTION: Councilwoman 0lick moved, seconded by Councilman Seaman, that a letter of non -objection be sent to the Alcoholic Beverage Control Board for application for recreational site license for Twin City Raceways. Motion passed unanimously by roll call vote. C, MOONS PRESENT SCHEDULED TO BE HEARD Rev, Arthur Knight Reverend Knight came before Council to explain that the City was now operating two somewhat parallel programs out of Port Kensy relative to the Senior Citizen program for the year and, in addition, the nutritional program which the Salvation Army has been administering, Rev. Knight advised that the Mayor's Committee on Aging had been notified that in one year, the programs will be unified under one umbrella organization and the programs will no longer be split, Reverend Knight asked for Council consideration of the alternatives as to whether or not the City should retain sponsorship of the Senior Citizens Program or turn the program over to another agency. Council concurred that the Mayim appoint a committee from O,neil to review the matter in its entirety and report back to Council of the whole at the first meeting in "„M July 18, 1970 - page 3 September, Councilwoman Glick stated that she concurred with an ad hoc committee, however, would personally support the program being kept under local control. C-2s Rev. (Venn Bryars - Church of Clod Reverend Bryars advised that his Church is located across from the Chevron Station (Wildwood Drive) and was unable to expand upon the living quarters due to Borough zoning restrictions as it is a non -conforming use. Reverend Bryars requested that the Council consider taking steps to assist in initiating an amendment to the zoning coda. Councilwoman Glick explained that Reverend Bryars had been before the Planning Commission and Reverend Dryers was instructed to work with the Commission and Comprehensive Planning const+ttants to make changes which perhaps would involve less time than going to the Borough and requesting an amendment to the zoning ordinance resulting in public hearings, etc. Councilwoman Glick recommended that the Council adhere to the Commission decision not to make changes at this time and wait until such i time as the Comprehensive Plan has been completed. Reverend Bryars stated that he would work in accordance with the Comprehensive Plan time frame. Mayor O'Reilly advised that the matter would be brought before the consultants to review inclusion of the recommended change in the Plan. C-3s Lions Club Ron Malston, representing the Lions Club, advised that his organization wished to SW up a directory just at the entrance of the business district in down -town Kenai. The sign does not fall within the ordinance and his organization would now request Council to authorize Administration to write a letter seeking permission from the State to erect the sign on the State right-of-way. Council so concurred that the State be contacted. D. MINUTES i D is Minutes of the regular meeting of duly S, 1979 Approved as distributed E. CORRESPONDENCE E-l" Community Care Center To be discussed with Resolution 79-103. i E-2s Kenai Asts 0 Humanities Council Council acknowledged receipt of a letter from the Kenai Arts a Humanities Council advising that they were unable to obtain funding to match City grant for repairs to the facility. The Council on Arts a humanities asked for direction from Council as to the use of the contribution from the City. Councilman Rallis stated that he felt Council should sit down and decide whether or not to proceed with improvements and maintenance on the facility or take outer steps as the building is very old. Councilman Aber stated that he too felt a decision should be made as to whether or not tw City wished to continue responsibility for the building or forget it. Councilman r I -- --A . ., F.-.a W July 18, 1979 - Page 4 Aber stated that there were many problems with the facility -- roofing, insulation and structural deficiencies. Councilwoman Glick commented that as the group had enlisted volunteer labor and the City has already allocated monies to be used on repairs, she would be in favor of contributing an additional $300 to have the project proceed and have the roof repaired. City Attorney Schleroth advised that he would have to research the possibility that the City may not be meeting the City Code and State Statutes relative to the competitive bidding requirements. Councilman Malston stated that if the City were to go to bid, the project costs would increase at least 30% and would, therefore, favor the City continuing with the donation and allow the Arts 4 Humanities Council to proceed with the repairs to the facility with the monies available and volunteer labor. After further discussion, Councilwoman Glick advised that the Public Works Committee from Council would review the matter and report back at the next Council meeting. F. OLD BUSINESS F-1: Winterization of Airport Terminal Councilwoman Glick reported that at the last meeting of Council, the Administration was directed to go out for bid on the winterization of the Airport Terminal project, however, in contact with EDA, problems did arise. Architect Carmen Gintoli advised that he spoke with representatives from EDA and after lengthy discussions, the only way they would allow that the City go to bid again without reducing the scope of the project would be to include a deductive alternate. Council so concurred. F-2: Float Plane Basin Acting City Manager Brown advised that he reviewed the survey completed by Malone which indicated that approximately 50,000 cubic yards of material needed to be removed. The contractor has advised that he removed approximately 10+ cubic yards. F-3: Thompson -Cason lease renegotiations Councilwoman Glick advised that the subject was discussed in the Public Works Committee and after discussions with the City Attorney, it was determined that any negotiations through Council may jeopardize the City's position in the court an and would, therefore, recommend that the City Attorney send a letter to Mr. Thompson explaining the City's position. Council so concurred. F-4: Penbumla Enterprises - Mukluk Building July 16, 1079 - Page 5 r'. Councilwoman Glick reported that until such time that the final appraisal has been received by the City, the Committee will wait until, hopefully, the next meeting of Council for their recommendation in the matter. F-5: Ordinance 513-79 Mayor O'Reilly noted that the additional step "CC" has now been shown in the Classified Salary Table. MOTION - BRING BACK FROM TABLE Councilman Bailie moved, seconded by Councilwoman Glick, to bring Ordinance 513-79 back from the table. Motion passed unanimously by roll call vote. MOTION: Councilwoman thick moved, seconded by Councilman Malston, for introduction of Ordinance 513-79, amending personnel regulations by adding a step "CC" to the Classified Salary Schedule. Motion passed unanimously by roll call vote. F-6: Addendum to agreement between City and Ted Forst Mr. Forst advised Council that when he entered into an agreement with the City last November for consulting engineering services, his proposal did not include additional costs which may and did occur relative to soils testing. Mr. Forst explained that when the work actually started in December, it was determined that the soils testing would be dire to the project and Mr. Forst was now requesting that his original agreement be amended to include an additional $3,001.90 in costs incurred in the special tests. Public Works Director Keith Kornelis stated that there was some type of misunderstanding as in the beginning there was some question as to whether or not the sons testing would be necessary and when Ted Forst s Associates got on the job, they felt it was necessary to proceed with the testing, however, in discussions with the City, they were advised that there may be some question in the adding of the additional costs to their contract. Councilwoman Glick inquired if CEIP required soil testing and was advised by Ted Forst that CEIP left it up to the discretion of the engineer to make such a determination. Councilwoman thick inquired u Ted Forst a Associates did not make some provisions in the bid proposal in the contingency figures on items that may come up while doing tho work and Mr. Forst replied that soils testing was not included in his original figures. Councilman Ambarlan requested a recommendation from either Administration or Public Works and Public Works Director Kornelis stated that he knew the work had been done and though it was not included in the original contract it was done outside the scope of the project. Councilman Aber inquired if Mr. Kornelis felt the work was necessary and Mr. Kornelis stated that he did feel it was necessary. Councilman Aber agreed. Councilman Malston stated that when the project was originally bid and prior to award, the Public Works Director was instructed to contact Forst & Associates to insure that their i l N s July 18, 1870 - Page a i"�_" bid was adequate to cover the project and he found that they felt it was. Councilman Aber stated it was impossible to determine what the situation would be with the soils until the project was started. Councilman Aber stated that he could understand the concern regarding the add -on costs, however, must realize that in getting proposals from these firms, the City is paying them as the professionals who are to do the best possible job for the City and some costs cannot be foreseen in advance. MOTION - BRING FROM TABLE Councilman Aber moved, seconded by Councilman Ambarian, to bring the matter of amendment to contract back from the table, Motion passed unanimously by roll call vote. MOTION: Councilman Aber moved, seconded by Councilman Ambarian, for approval of addendum to contract between Ted Forst a Associates and the City of Kenai. Motion failed by roil call vote. Voting no; Bailie, Glick, Malston and O'Reilly. Voting yes; Seaman, Aber, and Ambarian. Councilman Sallie requested reconsideration of the matter at the next meeting of Council. F-8: Addendum to agreement between City and C112M Hill Mr. Loren Lehman stated that his firm requested an addendum to their original agreement due to the changes in work scope and additional work required during the Kenai Airport Improvements Project and addition of the slurry coat portion of the project. Mr. Lehman stated that the original agreement did not include the slurry coat which was added at a later date. Mr. Lehman advised that it also became apparent the additional Inspection services would be required and there had been a significant overrun due to the design changes. Mr. Lehman advised that his firm had a verbal agreement with the former City Manager and, unfortunately, his firm did not follow up with an amendment to their contact at the time of the additions to the project. Councilwoman Glick questioned the original CH2M Hill agreement as it states that any services or work beyond the scope of the project would be negotiated and would be in writing. Councilwoman Glick commented that it would appear that CH2M Hill did go ahead with an additional f40,000♦ of work without the specific go-ahead from Council. Mr. Lehman stated that in this type of a project, it was not always apparent in advance of all the additional work and changes to the contract that would be required. Councilman Aber stated that he recalled that the City Manager and Council were made aware of the additional scope in the project when the are -application for the slurry coat was made to the FAA. City Attorney Schleretli advised that technically the contract has a _ provision which requires an agreement before -hand, however, legally the point of consideration is if the consultants or engineers were requested to do extra work and if the work is performed, a verbal agreement may be enforceable. LOTION - BRING FROM TABLE Councilman Ambarian moved, seconded by Councilman Seaman, to bring the matter back from the table. ll<lotion passed unanimously by roll call vote. July 18, 1070 - Pap 7 - r'�IOTION: Councilman Ambartan moved, seconded by Councilman Malston, for approval of amendment to the agreement and payment in the amount of $43, 020 to CH2M Hill for additional work required in the Airport Improvements Project. Motion passed by roll call vote. Voting yes; Seaman, Ambarian, I3ailio, Malston and O'Reilly. Voting no; Glick. Abstainings Aber 0. NEW BUSINESS 0-1: Bills to be paid - bills to be ratified MOTION: Councilman Ambartan moved, seconded by Councilman Seaman, for approval of bills to be paid and bills to be ratified as submitted this date. Motion passed unanimously by roll call vote. B-2: Requisitions exceeding $500 MOTION: Councilman Ambarian moved, seconded by Councilman Seaman, for approval of requisitions exceeding $500 as submitted this date. Motion passed unanimously by roll call vote. 0-3: Ordinance 517-79 Mayor O'Reilly read Ordinance $17-79, "An ordinance amending the Kenai Code relative to the dumping or the discharge of septic material into the City sanitary sewer system." MOTION: Councilman Malston moved, seconded by Councilman Ambarian, for introduction of Ordinance 517-70, amending the Code relative to the dumping or discharge of septic material into the City sanitary system. Motion passed unanimously by roll call vote. 0-3/a Ordinance SW70 Mayor O'Reilly read Ordinance 51849 by title only. "Au ordinance establishing a special revenue fund entitled "Ses:ior Citizens Outreach Project 8Y 1979-80" by increasing estimated revenues and appropriations in the amount of $12,000." MOTION: Councilman Malston moved, seconded by Councilman Ambarian, for introduction of Ordinance 518-79, "Senior Citizen Outreach Project Fy 1979-80." 1 4 � u. July 18, 1979 - Page 8 Motion passed unanimously by roll call vote. G-4: Resolution 79-100 Mayor O'Reilly read Resolution 79-100 by title only • "A resolution of the Council awarding the contract for re -painting the outside trim and apparatus doors of the Public Safety Building." MOTION: Councilman Ambarian moved, seconded by Councilman Seaman, for adoption of Resolution 79-100, awarding a contract in the amount of $2,690 to Lou Sledge for re -painting outside trim and apparatus doors of the public Safety Building. There was no public comment. QUESTION: Motion passed unanimously by roll call vote. G-5: Resolution 79-101 Mayor O'Reilly read Resolution 79-101 transferring monies in the 1979-80 General Fund Budget, Animal Control, in the amount of $150 to provide additional 0 funding to encumber estimated laundry costs for fiscal year 1079-80. MOTION. Councilman Ambarian moved, seconded by Councilman Seaman, for adoption of Resolution 79 101, transfer of funds in the amount of $150 in Animal Control Budget. There was no puWde comment. QUESTION: Motion passed unanimously by roll call vote. 0-8: Resolution 79-102 Mayor O'Reilly read Resolution 70-102 transferring monies in the amount of $1, 500 into Fire -Repair and Maintenance to cover the costs of painting the outside trim and apparatus doors of the public Safety Building. MOTION: Councilman Seaman moved, seconded by Councilman Baflie, for adoption of Resolution 79-102, transferring funds in the amount of $1,500 to Fire Department Budget for painting services. There was no public comment. QUESTION: Notion passed unanimously by roll call vote. f . H #uly 18, 1979 - Page 9 r 0-0/a Resolution 79-103 Mayor O'Reilly read Resolution 70-103 by title only. "A resolution recommending the rozoning of Tract B in Park View Subdivision." Acting City Manager Brown advised that at the Council meeting of October 4th, Admini- stration was directed to survey and appraise 80 acres which included the Sewer Treatment Plant area and 40 acres adjacent to the Oiler's Field so that the two could be interchanged and meet the City's commitment to the BOR. Councilman Aber inquired if it would be in the City's best interest to go ahead on consideration of rezoning Tract B until such time the BOR matter has been resolved. Architect Carmen ainto% representing the Community Care Center, advised that his group had submitted a concept lease application last December so that they would be about to enter into an agreement with the City and proceed on plans for their new facility. Mr. 0intoli advised that the Care Center wished to construct two homes on a portion of land located within Park View Subdivision and the land must be rezoned in order for them to proceed to enter into a long-term lease with the City and be able to go to bid on the project. MOTION: Councilman Seaman moved, seconded by Councilman Walston, for adoption of Resolution No. 79-103, recommending the rezoning of Tract B in Park View Subdivision. Motion passed unanimously by roll call vote. 00-7: Payment to Ted Forst a Associates MOTION: Councilman Ambartan moved, seconded by Councilman Seaman, for approval of payment in the amount of $4,157 to Ted Forsi a Associates for Kenai Spur Waterline Inspection. Motion passed unanimously by roll all vote. 0-8: Periodic Estimate No. 1 MOTION: Councilman Ambarian moved, seconded by Councilman Seaman, for approval of Periodic Estimate No. to Rockford Corporation in the amount of $20,690.50 for renovation of Well House 101. Motion passed unanimously by roll call vote. 0-9: ■/�Payment to Timberline MOTION: Councilman Malston moved seconded by Councilman Semnan, for approval of j payment in the amount of $32,007 to Timberline Industries, Inc. for addition to Animal Shelter. Passed unanimously by roll call vote. . July 18, 1979 - Page 10 /, ' I 0-10: Contract Change Order #2 MOTION: Councilman Ambarian moved, seconded by Councilman Seaman, for approval of Change Order No. 1, Cordova Construction, in the amount of $33,012 for City of Kenai modifications to sewage pumping stations. Motion passed unanimously by roll call vote. 0-11: Contract Change Order lit MOTION: Councilman Seaman moved, seconded by Councilman Aailie, for approval of Contract Change Order 02, Cordova Construction, in the amount of $1, 721 for Walker Lane project. Motion passed unanimously by roll call vote. 0-12 0-13 Lease of Airport Terminal Space Councilwoman Glick advised that the Airport Operations Manager is working with the lessees to try to provide more space within the Terminal and would, therefore, recommend tabling Raven and Hertz lease requests. ✓MOTION: Councilwoman Glick moved, seconded by Councilman Ambarian, to table lease of Airport facilities for Hertz Corporation and Raven Transit. Motion passed unanimously by roll call vote. G-14: Lease of Terminal Facilities MOTION: Councilman Ambarian moved, seconded by Councilman Malston, for approval of lease of Airport Terminal space to Tesoro Alaskan Petroleum rerporation, office space #10, for a term of one year at the annual rental of $1, 960.80 plus tax. Motion passed unanimously by roil call vote. G-15: Special Use Permit MOTION: Councilwoman Glick moved, seconded by Councilman Bailie, to table special use permit for Sheffield House to operate a direct telephone line and display a poster in the Airport Terminal. Motion passed unanimously by roll call vote. .y ` r , a July 18, 1979 - Page ll r-, Confirmation of Harbor Commission Member MOTION: Councilwoman Glick moved, seconded by Councilman Malston, for confirmation of the appointment of Mr. William Burnett to the harbor Commission. Motion passed unanimously by roll call vote. H. REPORTS H-1: City Manager (a) Airport Operations Manager - the budget has provided for a vehicle and radios for approximately • $6,500 and would like to go to bid to purchase a vehicle and equipment. Council so concurred. H-2: City Attorney ACI - transfer of liquor license. City Attorney t3ahlereth advised that it would take approximately 40; days for the transfer process without the City's assistance in expediting the matter. City Attorney Schlereth presented a letter for Council consideration stating a position of the transfer on the part of the City of Kenai . Council so concurred. (b) Browning a Henry - City Attorney Aohlereth advised that two lots were presently leased and one of the lessees has requested that he be riven one of the lotx and his partner would take the other lot. Councilman Ambarian commented that one consideration to take would be their obligation to a development plan which is due this year. Councilwoman Glick stated that several lessees are overdue on their development phase and the City should proceed accordingly. (a) Social Security Exemption - City Attorney Schlereth advised that in addition to the Police Officer's Association, he had been approached by several City employees who also desired that the municipal employees apply for exemption. City Attorney Schleroth requested permission to prepare a report on the subject and put Social Security on notice that the City is contemplating such a move. Council so concurred. H-3: Mayor'G Report Mayor O'Reilly appointed an ad hoc committee from Council to review the Senior Citizen program situation. Appointed were; Councilman Seaman, Chairman; Councilman Bailie and Councilwoman Glick. Ad hoc committee from Council to review City Manager Applicants. Councilman Aber, Chairman; Councilman Ambarian and Councilman Malston. I r; I July 19, 1979•- Page 12 Mayor O'Reilly advised that John Monfor has resigned from the Planning Commission and would request Council input for a replacement. Mayor O'Reilly advised that he personally would participate with a group of business persons in the acquisition of some 32 acres of land and would hold 1/8th share. H-4: City Clerk No report H-S: Financo Director No report H-8: Planning 6 Zoning Councilwoman Glick advised that public hearings were held on several items one of which was consideration of rezoning certain parcels of land in Beaver Creek Subdivision and the only areas approved were those facing and fronting on the highway. Fidalgo-Caviar Street to the Spur was approved for presentation to the Borough for rezoning, however, Councilwoman Glick advised that she had been contacted by a member of the Kenai Elks Club would be objecting to such change In rezoning. H-7: Borough Assembly Councilman Ambarlan advised that among the items approved were ordinances 79-34 and 79-39 and Ord. 79-38 was tabled and referred back to the Finance Committee as well as Ord. 79-38 which was tabled and referred back to the Finance Committee. Resolutions 79-94, urging year-round maintenance of the North Slope Road was approved and 79-95, declaring representation on the Borough Assembly to be misapportioned, was also approved. Introduction of Ord. 79-45, providing for phased assumption of road construction and maintenance powers by the Borough in areas outside of cities, was turned down and Ord. 79-48 was approved for hearing. Ord. 78-47, concerning the Central Peninsula Hospital was denied and Ord. 79-48, providing for reapportionment was defeated, however, both Ord. 78-47 and 48 will be brought up again. H-8. Public Works Committee Councilwoman Glick reported, that in addition to the matters discussed earlier, representatives from BEA met with the committee to advise they were having "probleum" with the Excavation Ordinance and were advised that they must abide by the ordinance. Polar Airways will be requesting additional space within the Terminal in which to operate their air carrier service. I f ,l L% � q . 1 U-9., Harbor Commission No report 1. PERSONS PRESENT NOT SCHEDULED TO BE HEARD 1-1: Tim Ewell - Polar Airways Mr. Ewell, President of Polar Airways, stated that he understood the situation that the City was presently In with regard to renovation of the Airport Temind but his firm had recently taken over the Hertz Rent-A-Car concession and would request that some adjustments be made within the Terminal to accommodate his company. Mr. Ewell suggested two proposals one of which would entail moving the Raven counter to the area adjacent to the Avis counter and allow Polar/Hertz the use of the entire corner for the interim period until such time adequato space could be provided through the renovation of the Terminal. Council concurred that the Airport Operations Manager would prepare a concept plan showing the adjustments which would allow additional space for utilization by Polar and Hertz and re -prepare lease documents accordingly, Councilman Boman advised that he had received a call from Mr. Edward Call who resides on Lflac Street and Mr. Call questioned the survey sent out by the City relative to the requests of the citizens who reside an the street and the City receiving a poor response. Mr. Coll would like to have mass to the responses as received by the City, Council so concurred. 1-3: City Hall Schemlics Architect Carman Gintoli presented a preliminary schematic of a City Hall complex and also advised Council that he had investigated three different sites for location of the facility. After considerable discussion on the three possibilities, (between dw Public Sdety Building and the Library, on Willow and Main and in Old Townsite) it was determined that more consideration would1 be given in the selection Of the site ADJOURNMT There being no further business, the mowing adjourned at 12:20 p.m. Respectfully submitted, Bu6C. Peter, City Clark I a 1 SEGMENT FROM MEETING OF JULY 18, 1979 CITY OF KENAI COUNCIL MEETING or O'Reilly: 1,ai IV; 5A X*d Council wea4d-4-ike to hear from Ted Forsi and Associates. Okay, if you would be so kind as to explain -- Ted Forsi: I'll keep this real short, Last November our firm was retained to do some designs on some water and sewer jobs for latry of Kenai. When we prepared our proposal and submitted it to the City, we ��t puttiov money in for soil testing. Keith and I had some discussions about this and the outcome was that we just did not think a soils borings ,were going to be required, U submitted the proposal for the work and we were hired for the job, When we started the field work in early December, we got into a couple of areas of the City where we thought we better get some soils testing done just to provide for a better design for the projects. We coordinated the work through Keith's office, hired a drilling company to come down from Anchorage and drill these test holes y� u We used the information in our design for these projects. That's about it yo% guys have the bill 1n front Of you. We think this work was approved through a �p i Works Department; I know Keith's here tonight. Also, it has been d• o the State and 1t has been approved for additional grant funds. What we need to do is get the Council's approval for paying this bill. M or O'Reilly: W,u &I yotr'available for comments and questions? Ted Forsi: Sure. Mayor O'Reilly; Keith, do you have anything to say to augment this? Keith Kornelts; There was some type of misunderstanding. KEITH WAS SPEAKING SO SOFTLY, IT WAS NOT PICKED UP Per the minutes: Public Works Director stated he had conversations with Mr Forsi relative to the soils testing and agreed with the engineers reco wndation. However, advised Mr Forsi that he could not guarantee payment for the additional work, Quite frankly, the soils question did not come up until the time the contract proposal were already in. They did the work ..... - rn—f 4,10 -r h - - 1 , +1h GM S, /AuG lit L%� /�i� _,�F. ��. /. 'd A,& !1 n J Betty Glick: Ord' First off, do CEIP requirements require soils testing? Is that one of the requirements? LF 1 - - I" SEGMENT FROM MEETING OF JULY 18, 1979 CITY OF KE/N�AI COUNCIL MEETING//G- / f. ,'"tiGt -w i I' ,/ / y� I�_ Y' Ted Forsir // I think what they do with it, they leave it up to the engineer. They expect that engineer to use his judgement and his brains when he gets on a project where it needs to be done. That is my understanding . . . Betty Glick: Okay, I understand it then. Okay, as an engineer, is it not normal for you to provide some soils testing when you do jobs of this kind? Ted Forsi: Every job is different . . . Betty Glick: Everyjob is different, but do you not make some provisions within your bid for these kinds of things that might come up in your contingency figure. , Ted Forsi: h No, 00 Betty Glick: You don't provide for any contingency for anything at all! Ted Forsi; Hopefully, there is a little bit of contingency, but as far as the soils testing, that's usually spelled out as a bid item. It is a specific thing that you can add i to the proposal. We didn't include it in our proposal. We left it out of the initial i package. • .. . I Betty Glick; Okay, the next question is, when you came to that conclusion, apparently you had 010 nA . some review of the soils out there and had some idea of what it should hgqyyI�� not, whatever. Now, if I understood Keith correctly, he said that4offlugh it'a`�ou� l . maybe you should do some soils testing, If that thought occurred to you, should you not have resolved that at that time instead of going ahead and signing the d nts and then caning back after the fact. I know I sound like a I always �ese things after the fact. The point that I'm trying to make is there should be, or seems to me and I'm not an engineer but I have had some dealings with making bids and so on. You always should provide for some contingency on unforeseen things, number one. Number two, if you thought you should do some soils testing, that should have been resolved, in my estimation, that's my own personal feelings, before the thing was signed, not go ahead and do it and then come back and say we need sane more money, Ted Forsi; / There was a time element at that time . ) 1 A N� L a Q. SEGMENT FROM MEETING OF JULY 18, 1979 CITY OF KENAI COUNCIL MEETING Betty Glick: There's always a time element, isn't there? It's always an emergency and always push, push, push . . Ted Forsi: There's another thing I would like to say, we were under a tight schodule to get these contracts signed and get underway. It was a fast, emergerc,,, thing. We don't 1 i ke to see that either, but • • • , . Ed Ambarian: ��Cl�n{• d� Do we have a recommendation from thefvublic Works Director on whether or not we should approve this payment? Keith Kornelis: All I can say, I know the work was don and I feel it was don outside the scope of the project. I recommend approval. �f?4-,ems r� � PhilFnothisfog ber: /C,e�-1�k It unusua *atiall fora project P11— Ron Ralston: As I remember, when this project was awarded, there was a question and the Public Works Director was instructed to contact Mr Forsi to make sure that when he bid, he knew what he was bidding and the information that we got back was that he did. The bid stood as it was. I just don't buy this addition, i 445'0 cannot dete ine soils condition (inaudible) You cannot determine a soils �f d drain if it was required. There were no soils in our proposal at all.:56Wi disg ss S44!h the Publ c Works D#partment and felt it wasn't necessary. Phil Aber: P. A5s e 4F71 t, Oaffi 6,117 iutLl'7�z. ► I am concerned over these costs. However, I think we have to realize that if we're going to ",request proposals from these firms and continually come back and second guess them •- they're the professionals, not us. Unfortunately, there are sometimes not time to get involved in these cases. That's a fact of life in all businesses, If you were to go out and question the proposals from a firm that's all inclusive of anything that might come up, it's not that way; it's not practical. It's just something that cannot be foreseen. Mayor O'Reilly: I have the motion before you now to add the debt to the agreement, essentially in the amount of $1338.55. Oh, I'm sorry, there are two $1663.35 and $1338.56 -- it comes to $3,000. Is Council ready for the vote? Clerk call the roll: i 6ppy H 'Fl • H 4 � u rA+.r 4_ _lN_ l:_.f-•• «��_._ __ _ fi,r ar .M •'J. r .� _ :._.._�u-.- Clerk: SEAMAN YES BAILIE NO O'REILLY NO ABER YES GLICK NO AMBARIAN YES MALSTON NO Clerk: Notion failed. Charles Bailie: I move for a reconsideration at the next meeting. Mayor O'Reilly; All right. 10 .w 1 f I� II 5JL SEGMENT FROM MEETING OF JULY 18, 1979 CITY OF KENAI COUNCIL MEETING Mayor O'Reilly: We will now consider the addendum to the agreement between City and CH2M Hilt: the Airport Improvement Project. Perhaps Council wilt want to hear from Mr Leman on this matter. Loren Leman: Mayor and members of the Council, I understand from your Administration that the- questionsarose at the last Council meeting. I am sorry that 1 was not able to attend and answer those questions at that time, You have in front of you a request by us for an increase in the services during the construction portion of the contract. The contract as it exists is an hourly contract with a maximumyexisting $30,122; we are requesting a substantial increase in that ceiling. Now, we can break this down into two parts as you can see in the letter. The first part, for approximately $6,000 covers the estimated additional amount we put into engineering design. The design was done in a lump sum. The initial thought and design contract that was negotiated was that the Airport would be a three-inch overlay. The project changed during the middle -- on the Sth of February at a meeting between the FAA, ourselves and the City of Kenai Wd were directed to proceed with design of the slurry seal with the anticipated hope that it could be added to the project if the bid had come in under the amounts that we can add it in. However, they didn't, but the City went back for more money and was able to get it. So, we did actually do more design work than was initially anticipated and we have gone back and researched our records to best determine how much additional work was involved. That amount as listed here is what was the -result of it. Then we go into the inspection services or the services during construction. We realized from the very beginning that the $30,000 limit was going to be tight even when the project was initially conceived to be a two, two and a half month job. With the addition of the slurry seal and a few other design changes that came along during the job, it became evi ent that this was going to be a four month job, or about 130 eight hour day slfnspection requirement. As it turns out, now, at approximately the 75th day of construction, that we have been averaging approximately 12 hours fe)e- day for the inspector. So, the numbers are there, these are costs that have v .,_A, actually been incurred. During the course of the project in May, we eoafw` i the former City Manager who agreed, yes, send the justification and the backup. At that time we were not over our limit, so we proceeded with the project. We had the option of either closing the project down when we had spent our limit or proceeding on and finishing up the job to allow the Heres to fly this summer by June 25th. Which E we did on good faith. We are in a significant overrun, if you will, due to these design changes. So we are requesting the increase of $37,598 for the additional inspection. We want to raise the ceiling. The other items besides the time extension that has caused us problems. There was a prebid conference thatowe attended that had not initially anticipated and was not In our initial estimatef Also, the slurry seal application. There are a number of other minor things also that have been done, Each in itself, these do not add ` up to that much, but total, they do add up and they do cause the contracts to often get close to their ceiling and in this case, exceed it. SEGMENT FROM MEETING OF JULY 18, 1979 CITY OF KENAI COUNCIL MEETING Mayor O'Rei11_y,: With reference to the prebid conference, are those costs to be borne by the City? Loren Leman: Right, we had, I think, three days of effort involved in that. That was maybe a thousand dollars, but I'm just trying to identify items that do add up and caused the cost increase. Mayor O'Reilly: You called for a prebid conference in June? Loren Leman: Oh, the prebid conference was prebid construction / (inaudible) Mayor O'Reilly: In Oft letter, the cost as of June 20, 1979, denotes, principally, the inspection costs? Loren Leman: 00 That is correct. Mayor O'Reilly: And then the projected costs as of July 20, 1979 again, here, are principally inspection costs? Loren Leman: That is correct. These costs are almost totally inspection costs. There are some expenses, some equipment, some labwork involved with it, but it is almost totally inspection. One item that I can add,during inspection phase, the project inspector is acting on behalf of the City as the City's agent. It is certainly to your advantage to have a good inspector of these -jobs. The inspector is at the mercy, i" you will, of the contractor. Why The contractor is working an-0 the inspector is present during the inspection. We, as a firm, don't have nearly as much control over inspection as we do over design, we don't have that luxury. We have to bend with the contractor and, therefore, in almost all cases, an inspection contract we enter into is on an hourly -typo basis. It is unfortunate from our standpoint that there was this limit put on, We understand it because that was the grant amount at that time and you did not rant to enter Into an unlimited agreement which is certainly understandable. Just as in a case where a verbal agreement with the former City Manager unfortunately was not, is not, In the contract at this time. Mayor O'Rei1 y: 01-7 Ast is involved n the design for a slurry seal? i y i SEGMENT FROM MEETING OF JULY 18, 1979 CITY OF KENAI COUNCIL MEETING Loren Leman: There are specifications that have to be written they are tailored as to local aggregates to determine what you need for this slurry seal; there are cotes on the plans; there are conferences with the FAA and with the City. These items add up -- there is that much time put into actual preparation. Mayor O'Reilly: It's not like you take the seal coat off the shelf someplace or something. Loren Leman: You could, yes, you could -- there's no way of checking it. It reminds me of a story I heard in Barrow. "We don't understand why the piles are Jacking out -- we have specifications for freezing back piles." We asked if they followed the specifications and they replied "Nol We Just poured back water -- it said mix water and sand. We poured water and we poured sand and its not working." They didn't follow the specs. There are good engineering reasons for specifying limits on this. You don't want the sealcoat to be coming up at this time next year. Mayor O'Reilly: Okay, in that connection, from your point of view, the thing started from a certain 'j size, a project with a certain amount of money then before it got underway, the project size changed somewhat, changed somewhat during .. . Loren Leman: During the course. February was the date that we were told at that time, were given the verbal go ahead to change the course from strictly a total overlay -o�, gep val of the central fifty feet of the paved area, removal and replacement of 1�f db base and of the pavement. So that in itself took additional effort it takes additional inspection effort. That's significantly a larger project than the overlay. mayor O'Reilly: And then, due to what you felt were pressures from the City to have the runway on time; the project engineers, or inspection engineers, emergency nature of the contract had to put in these kind of hours. Loren Leman: That is correct. Mayor O'Reilly: Does Council have anything to enter, questions? Betty Glick: Did I understand you to say that at that preconstruction conference continued----- i i i f N i r i r CLICK: You aro including this in your additional charges? Was that included in the 1 original agreement? LEHMAN: That is toffs . That is part of the services during construction so we were,,/ Q working against an orf ` nal�budget of about $30, 000 -- that is an item that helps to deflete� '' that budget. GLICK: But it was included in your original contract so we should not be asked to pay any additional monies for a pre -construction conference LEHMAN: Do you understand what the services during construction is on -- hourly basis for services rendered -- do you follow that??? So if we are talking about rendering services for 80 days but in actuality we rendered them for 130 days... OLICK: Except that your original agreement says that these sums are not to exceed or services will be for the lump sum fee of such and such and those particular items A-7 through Alb states that the total costs of these services shall not exceed 530,124figure. If I might go on -- on this slurry coat�this was not included in any of the original talks at all until February 8th??? LEHMAN: I do not recall when it was originally brought up but I do know that on that date It was discussed and agreed that we should proceed with it. OLICK: When it was discussed and decided to proceed with it -- now, according to your agreement it says "changes ordered by the owner after completion and approval of plans and specifications, shall be paid". But over here in this item 5, it states "any services or work beyond the scope of this agreement will be negotiated and agreed upon between the owner and the engin$ers in writing prior to beginning of additional work". Do we have anything in writing? 111u-, " � , �tti �w AE11eo a „ Q LEHMAN: I am aware of th!a in the agreement -- I do not know if it was ever identified in writing that there was going to be a budget problem .... . OLICK: If there was going to be a budget problem should it not have been put in writing? + I know you said you more or less had a verbal agreement with the prior City Manager but I have set here for almost three years and some of these Council members have made the comment that the City Manager #cannot bind the Council to any amounts of money. So that --- I realize that maybe you should agree to it and in ea and �py way I Ak ttt�is agreement that you signed or our representatives have si ed --'Cin Y 6n Y ep gn � yw�ys � the ite�t says that any services or work beyond the scope of this agreement will be negotiated and agreed upon so if you thought you were having budget problems and were anticipating them, then there should have been a negotiated and agreed -upon figure. It should have been in writing and I think that Council should have been made aware that there was the possibility there might --- be additional costs and these were projected figures. LEHMAN: I concur. OLICK: But do we have an -- � ything in writing? LEHMAN: I don't....., (SLICK: Do you have any corrospondenee to the City Mnnager saying what you thought it might cost? LEHMAN: Not before. l Rio (SLICK: Not before the letter of June the 20th. But it Rooms like before you, as a pro- fessional, it just seems like you would not do$43,000 worth of work before you were absolutely guaranteed or that you would have something in writing and I don't think that the City Council should be asked to pay a bill that they had no prior knowledge of. I just get really nervous and I know that Councilman Holston has questioned as to why do we bid because we ask for figures and they say okay - we look at this job and its this and this and this coming down with this type of figure. I know that sitting on the Public Works Committee we have gone around and around and around in trying to decide who to award the bids to. Normally, you give it to the lowest bidder but we have made exceptions and have reasons why. I know that I am not an engineer and I know unforeseen things come up, but I still think that when you have an agreement and it specifically says certain figures over and above the scope of the contract will be negotiated upon between the owner And the engineer in writing prior to the beginning of additional work that is exactly what we should hang our hat on and as I said a while ago I hate these after the fact things and I realize that things come up but it seems like there should be Rome type of contingency figures in there. I just can't see when we are given something that sael v this is the lump sum figure and we can do this or these services shall not exceed these i figures -- to me the services shall not exceed that figure and if they are going to, then we need to renegotiate just like it says here and come to an agreement. LEHMAN: I can assure you it is no pleasure to come before you and ask for an increase, it is not something that I relish. GLICK: But I hate to sit here and be like this but I just think that in the past every time there has been a change order or additional monies wanted, the City just (inaudible) their own and I just think it is time that we start asking questions and you people are. professionals and I hope that we are some kind of professionals and when you give us the bids we are taking your word for it. And if there are problems as your agreement says, come back to us and let's sit down and negotiate and agree and put it in writing and then everybody knows where they stand. But you don't give 9fter the feet . V1)WkVP',4_ O�ry LEHL .: I think to fully understand why these thingshappen sometimes you have to look at the accounting procedures and at times we may be facing delays from 30 to 60 days of knowing exactly where the job is and by that time when we have our print-outs and determine where we are in a job -- during the "nurry" of activity when we are trying to meet deadlines on construction and we have the print-outs during the periods we are okay and then when the final tablustion starts coming in now and then it is obvious that things are going to exceed it, it is not always easy to tell that far in advance. I wish we could -- I would love to be able to call it 60 days in advance and let you know. (SLICK: I know about deadlines. I work on a job where we have deadlines all the time. You are talking about print-outs and evidently you use a computer and usually this infor- mation is fed into these computers on a fairly regular basis and you can get your infor- mation rather quickly and you said that way back in February it looked like there were going to be problems. Again, why in February didn't you say that "heh" this is going! to cause additional inspections, this is going to create an additional work load so on and so a on, This was evidently going to cost us more money so lot's sit flown and negotiate •-- pit is just like a while ago, they realized it but they just forgot about it. When you sign ( /'f,4l , an agreement I just think you should stick by it. You expect us to pay the money but i says, and I know things happen, but it February you realized that it was going to V6re inspection and you thought it was going to take longer and even before the job got started in May you realized so right there and then you should have come in and sat down and talked and said, hoh, this is what we think it is going to be and then the City could say we would buy that or we did not think it was too much or we think that etc. To me, now, I don't know -- I am not a lawyer either but it says that you will negotiate and agree and you will have it in writing and to me that says it all. I would also ask the attorney, with this particular item in hero, are we required to make this payment? i ABER: If I recall correctly, the City Manager and the Council wore made aware of substantial ehangas in the project when preapplication to the FAA for the slurry coat was submitted 4 4f(A.*-W-4-A. GLICK: Do we have that in the minutes? ABER: It should be in writing when approval for the preapplication came through.this Council nwhich outlined the additional engineering. inspection, etc. 1 04— O GLICK: It to specifically spelled out? ABER: It should be in the preapplication or ordinance, GLICK: But even still just suppose we applied for just the monies then they must have realized at that time that they were going to require this why then wasn't there an addendum made to the agreement at that time? Why didn't we negotiate -- did we negotiate the figure that was put in there? ABER: I imagine that it was approved by the City Council for the City Manager to sign the preapplication request and the FAA funded it. GLICK: Well, I just think that we need to abide by this. I don't recall that we hat a- RLnegotiated figure. It just says here that these are projected figures to 7/20, it isn't even 7/20 so these costs may not even be up to this amount of money. LEHMAN: We will not exceed those costs. You will not be billed it we do, SCHLERETH: I think that technically the contract, as Councilwoman Glick points out, has a provision that says services beyond the scope of this agreement should be agreed to in writing before -hand. However, I think legally the point to consider is an overriding poinfis it the consulting engineers were actual y requested to do some work and it was a verbal agreement for that work to be done, legally the "statute J'ay.111P J� `states V Aany contract that is not in writing for a certain sum of money; tha an excep to that contract or that "statute of ud,",,,� ision in that if that work was actually performed then the "statute of fraud"'Vejo feet and it could be considered that a verbal agreement could be enforceable. Therefore, if there was an application made to the FAA for the slurry coat and if in fast the engineers were given a go-ahead to perform that work and if they did the slurry coat then I should say that would be a binding agreement. :.s /}►/r.(! � �1/ ,�.11� 1%A� -� �' ��lo� / /.rig_ � // r � MOTION:' r �' , ri �r 14 ,e o t Councilman Ambarian moved, seconded by Councilman Beaman, to bring the matter back to the table. Motion passed unanimously by roll call vote. MOTION: Councilman Ambarian moved, seconded by Councilman Malston, for approval of amendment to the agreement with CH2M Hill and payment in the amount of $43,029 for additional work on the Airport Improvements Project. Councilman Bailie stated that the projcaste4¢fo s 5Ke thr ygh 7/20/79 so the project figures will not go above that figure and th6 ouneii`"�t'`I I loot have an additional request from CH2M Hill? I LEHMAN., You, we are anticipating close-out of the job by end of next week and these projections of labor are reasonable and provided that there is no major change or anything in the schedule and there will be no verbal agreements made. We will not exceed that figure. t COMMENTS FROM FINANCE DIRECTOR AT THIS TIME ARE INAUDIBLE AS HIS MICROPHONE s VAS ZVWINTLY TURNED OF D NOT I�CORDED .bie 1;1.0 !,�' U- I'7 l-J {� / / ..i�� BROWN: = a u1� also pO tout fiat some a�t�tsee COstB�e{i@f1 with the ad tion of the slurry coat budget to the original project, while there is enough money in the project, there will have to be some money moved around in contingency to cover this. ; QUESTION: ((� �f Motion passed by roll call vote. Voting yes; Seaman, Ambarian, Bailie, Malston and O'Reilly. Voting no; Glick. Abstaining; Aber. •A The foregoing was a true transcript of the minutes of the meeting of July 19, 1970 R of tho Kenai Council. f, n i ATTEST: S C . Peter, City Clerk f • s •r; I i I