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HomeMy WebLinkAbout1979-09-14 Council Minutes - Special MeetingAGENDA KENAI CITY COUNCIL - SPECIAL MEETING SEPTEMBER 14, 1079 - 9:00 P.M. PUBLIC SAFETY BUILDING PLEDGE OF ALLEGIANCE A. ROLL CALL B. NEW BUSINESS L Appointment of now member to the Recreation Commission. 2. Resolution 79-127, directing City Administration to enter into a lease ,for warts storage with option to purchase. 4. Interview and selection process for appointment of City Manager. 5. Discussion of Federal Revenue Sharing Funds. C. ADJOURNMENT i � Y I KENAI CITY COUNCIL - SPECIAL MEETING �A,PTEMBER 14, 1079 - 6: 00 P.M. ,PUBLIC SAFETY BUILDING MAYOR VINCENT O'REILLY PRESIDING PLEDGE OF ALLEGIANCE A. ROLL CALL Present: Edward Ambarian, Charles Hailio, Bony Glick, Ronald Malston, Vincent O'Reilly, Michael Beaman, Seaman, and Philip Aber. Absent: None AGENDA APPROVAL Councilman Ambarian inquired why Resolution 79-132, item 0-3, had boon added in that Administration was not directed to add it to the agenda during the work session which set the special meeting agenda, Councilwoman Glick advised that the Resolution was added at her request to the City Attorney and such request had been submitted on Wednesday, September 12, 1079 in time to be properly advertised with the other Items on the agenda, City Clerk Sue Peter Advised that the Legal Department had not reported the addition nor submitted the resolution to her for inclusion on the ap!enda until late in the morning on Friday, September 14th, Therefore, Mayor O'Reilly inquired if there would be any objections to the addition and Councilman Ambarian replied in the affirmative. The Agenda stood approved as corrooWd . B. NEW BUSINESS B-ls Appointment to the Recreation Commission Council unanimously concurred with the appointment of Ann Show to the Kenai Recreation Commission. 9-2: Resolution 79-127 Mayor O'Reilly read Resolution 79-127 by title only, "Be it resolved by the Council that the City Administration be directed to enter into a leaso at $2,500 per month with Peninsula Enterprises, Inc, to lease lots 16, 17, 19, and 19 located on the Kenai Airport, including the hangar and any improvements thereon," MOTION: Councilman Bailie moved, seconded by Councilman Seaman, for adoption of Resolution 79-127, J Miles Dean - spoke in opposition of the City acquiring the facility for warm storage as 31r. Dean reported he had worked in the building in the "dead of winter" and "nearly from to deaW Councilman Ambarion inquired if Mr, Dean was aware that the heating system had been replaced with natural gas forced air heat, V, 1 • 4 SPBCI.%L MEETING, Page 2 John Williams stated as a taxpayer of fowl he too would object to the purchase of the 110*'i building for several reasons including the fact that the building is too for from the present shop facility location as well as the fact that Mr. Williams wished to have the matter researched relative to the fact that a plat of the Airport lands indicates that no leases are to be renewed in that area. Mr. Williams suggested that if the City wished to have a satellite warm storage facility it would be bettor located in the Thompson Park area. Councilman Aber inquired if Mr. Williams had an opinion, as a realtor, as to which parcel of property is more valuable, the property that the present shop facility is located on or the Concession Area? Mr. Williams responded that no further development should be made on the Concession lots, however, the area of the present shop facility was a good potential development area. Chester Cone advised that he would object to the purchase of the building in that it was badly located and it would be very difficult to move the building to another location. Tom Wagoner - inquired if a study had been done on the cost to heat the facility and if the City had conducted an "energy audit survey" -- until this matter had been resolved, Mr. Wagoner suggested tabling the matter. Charles Crabaugh - advised that he had worked in the building in 1961 and stated that the building was so cold that it was difficult to work in - Mr. Crabaugh would, therefore, object to the purchase, George Navarre - stated that he was in favor of the City purchasing the facility for warm storage as Alssks Chrysler had utilized the facility for a body shop. Mr. Navarre suggested that Council sit down and develop a plan for a properly planned City shop , yard. Joseph" Langston - stated that he folt the building would be suitable for warm storage for the City as he was Manager of Alaska Chrysler and the building had been used by them for the period 1977-78. John Williams commented that perhaps the owner would be agreeable to a short term lease with the City and in the spring the City could achieve more detailed and complete planning for a suitable shop area. Leo Oberts - stated that he was owner of Alaska Chrysler and paid the heating bills on the Mukluk Building and stated that he felt his high bills were resultant of the feet that the ceiling was so high, Mr. Oberts also commented that the City should look into whether or not their insurance would be higher if the building were not located within the present shop facility. Mayor O'Reilly asked that Vie* Mayor Glick assume the Chair. Mayor O'Reilly stated that he was not interested in causing undue hardship to a lowd businessman who has perhaps extended himself to vulnerability in an attempt to meet � r. SPECIAL MEETING, Page, 3 the City needs and the Mayor also oxtenAn apology if the situation calls for it, for the ` theft of property from the "Mukluk" building if such theft was caused by City employee actions. Mayor O'Reilly further commented that no party is going to come out with a perfect bargain. Mayor O'Reilly stated he would support the resolution if the following amendments wore made: 1) provide for warm storage to meet this winter's possible adverse effoot on winter needed equipment; 2) provide a rental income sufficient to allow and guarantee installation of minimum modifications, that is properly operating doors, and still within a reasonable range of rent expense, Suggested level $3,000/month, 3) seek FAA approval and funding of proposed now building as submitted by Kenai Steel Buildings (Stran) at a price of $138,000. Such building to be located at the site of the present City yards. Construction to begin as soon as possible considering funding approval, 4) issue leases on Concession area to present owner of Improvements, Such leases to be for a period of 10 years and to be for usage compatible to clear zone purposes, May O'Reilly further must u commented that the Council m get an with the business at hand as there are issues before Council which need Immediate attention (Section 381anda, City Hall, eta.). Mayor O'Reilly assumed the Chair. Councilman Malston inquired it the Finance Director could advise where funding for the lease of the bu ilding would be derived from and Finance Director Brown advised that there • were no funds designated for lease of warm storage and such monies would have to be a transferred from various accounts, /")MOTION - DIVISION OF QUESTION Councilwoman Glick moved, seconded by Councilman Malston, for a division of the question -- relative to leasing arrangements and purchasing arrangements. Motion passed by roll call vote with COUncilmembers Ambarlan, Seaman and Aber voting no, . Mayor O'Reilly advised that Council would now deal with the first item included in the resolution which is Council directing Administration entering into a lease for six months tar warm storage . EMOTION: Councilwoman Glick moved, seconded by Councilman Malston for purposes of discussion, that the City Administratiol be directed to enter into a lease with Peninsula En terprises for a period of six months with an amended amount Of $3, 000/month which will provide a rental income sufficient to allow and guarantee installation of minimum modifications and properly operating doors, Councilman Ambarlan stated that the City is once again entering into negotiations and it - = will take at least two weeks for the process. Councilman Ambarian suggested that Council adjourn into an executive session to discuss the leasing matter with Mr. Carter. 1 J 11 [I SPECIAL MEETING, Page 4 Councilman Malston pointed out that the Finance Director had just advised that there were little monies available and if the City were to enter into a lease for six months at $3,000/month, where would the financing come from? Councilman Bailie inquired from the Public Works Director exactly what pieces of equipment would be left out and Public Works Director Kornelis advised of the pieces he would consider leaving out as these pieces of equipment would not be as vital for quick start-up as the others. Council discussion followed relative to the pros and cons of the City purchasing/leasing warm storage as well as questions Involving the renewal of the lots in the area known as the Concession Area. Councilman Aber stated that in trying to research the Concession lots, he had contacted an individual involved in setting up those lots and Mr. Aber advised that the individual was in the audience tonight. Mr. Aber reported that he was told the intent was not to terminate existing leases but it was felt that the PBO's should be located to the north of the Concession lots. Councilman Aber stated that this was a City decision and not an FAA decision and the matter was also reflected in an old master plan of the airport. Councilman Aber stated that if there to difficult y in resolving the matter of the renewals of leases in the Concession area, it would be appropriate for the Council to make amendments accordingly. City Attorney Schlereth stated that he looked into the matter and the lease referred to earlier relative to the non -renewal clause was recorded in duly of 1961. In 1903 the land was deeded to the City of Kenai from the FAA (United Stateaof America), The existing lease dated May 9, 1906 between the City of Kenai and Peninsula Enterprises includes a renewable clause. Councilman Malston asked only that Council consider where the monies would be coming from. r` QUESTION: Amendment passed by roll call vote with Councilmembers Ambarian, Seaman and Aber voting no. City Attorney Sehlereth stated that from a legal standpoint, it would be very difficult to include a clause within the lease agreement wherein the lessor was to provide certain modifications -- City Attorn.Q-,► Schlereth stated he would rather the lease be for lease of the facility only and u the City desired certain improvements, they would do it themselves. MOTION - RECONSIDERATION Councilwoman Glick moved, seconded by Councilman Malston, for immediate reconsideration of the amending motion. 1I Motion passed unanimously by roll call vote. MOTION, Councilwoman Glick moved, seconded by Councilman Malston, to authorize Administration -- to enter into a lease with peninsula Enterprises for a period of six months with option to -- renew at a monthly rental of $2,500. a r M . I SPECIAL MHETING, Page 5 i With Council concurrence, Jim Carter, one of the owners of the building spoke before Council. Mr. Carter advised that he would be willing to lease the building to the City at $2,500 and no modifications be made to the building by the owners and such lease would run until the City has made a decision to either purchase that building or construct a now building at another location. City Attorney Schlereth advised that the City may then be subleasing the building for a period beyond the term of the lease and would recommend cleaner language. With consent of second, Councilwoman Glick withdrew her motion. Mayor O'Reilly requested that Vice Mayor Glick assume the chair. MOTION: Councilman O'Reilly moved, seconded by Councilman Ambarian for purposes of discussion, to amend the main motion that the rental of the facility will be at $3, 000 for a period of six months and improvements will be made, particularly to the doors, at the satisfaction of Administration. Councilman Ambarian inquired if this proposal would 1-3 acceptable to Mr. Carter? Mr. Carter replied that it would not be acceptable. QUESTION: Motion failed by roll call vote with Councilman O'Reilly voting yes. Mayor O'Reilly once again assumed the chair. Councilman Malston commented that the City lived with the building "as is" last winter and if the City is considering constructing a new facility, why not negotiate the short-term lease for a period of six months with no modifications. Councilman Bailie inquired 9 Mr. Carter would be acceptable to a six month lease without certain provisions attached? Mr. Carter replied that he felt the matter had been "kicked around" long enough and would accept the six month lease. MOTION: Councilman Maldon moved, seconded by Councilman Seaman, to amend the motion to lease the facility for a period of six months at a monthly rental of $2, 500 starting October 1, 1979. Motion passed by roll call vote with Councllmembers Aber and Ambarian voting no. MAIN, AS AMENDED: passed by YOU call vote with Counallmembers Aber and Ambarian voting no. . ._- _v . � _.__fir:.. i . �i-�R.�. ..�.�..v .r - T "' - /� I- r>• " aa,. 11 SPECIAL MEETING. Pape 0 �. MOTION: Councilman Ambarian moved, seconded by Councilman Aber, that the City enter into a purchase agreement with Peninsula P.nterprises to purchase the building for $133,000 contingent upon receipt of a grant from the Federal Aviation Administration. Motion failed by roll call vote. Voting not Bailie, Glick, Malston and O'Itoilly. Voting yes; Ambarian, Seaman and Aber. Councilwoman Glick stated in view of the fact that Rho had asked for preparation of a resolution authorizing Administration to go to bid for construction of a new building, she would like the resolution included on the agenda for the Wednesday evening mooting. City Clerk Peter advised that the Charter provides for inclusion of items to the agenda 24 hours prior to a meeting and would include the resolution under new business. With Council concurrence, Mr. Carter reminded Council that back in February he had formally requested an extension to the term of his lease and as it had boon eight months since the matter had boon presented to the City, he would like some typo of response. City Attorney Sohleroth advised that the matter would be included on the agenda for the regular Council meeting of October 3, 1979, R-4: Interview and selection process - City Manager Y Mayor O'Reilly introduced Mr. Gordon Ryan, City Manager applicant, and advised Mr. Ryan that the Council had extensively studied his application, which was very complete. Mr. Ryan spoke to Council on his concepts of the position. Following the discussions, Councilman Malston suggested that a decision be made at the meeting of Council Wednesday evening. Couraeil so concurred. ADJOURNMENT Due to the lateness of the hour, Council adjourned the special meeting at 9: 49 p.m. Respectfully submitted, 4C//—�,/" su C . Peter, City Clerk