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HomeMy WebLinkAbout1978-10-21 Council Minutes - Special Meeting-. � �� .r lu;...� r. -' rt • --'. --, a=^.-. ..a-r' a - - KENAI CITY COUNCII. -SPECIAL MEETING OCTOBER 21, 1978 - 8: 00 A.M. CITY HALL - AIRPORT TERMINAL 13UILDING CALL TO ORDER A. ROLL CALL B. NEW BUSINESS 1. Proposed modifications to Airport Bar/Cafe layout and amendment to Aviation Consultants, Inc. Terminal Lease C. ADJOURNMENT 3 i ti r r I x I W I 1 f r I - r I KENAI CITY COUNCIL - SPECIAL MEETING OCTOBER 21, 1978 - 9: 00 A .M . CITY HALL - AIRPORT TERMINAL BUILDING MAYOR VINCENT O'REILLY PRESIDING CALL TO ORDER A. ROLL CALL Present: Vincent O'Reilly, Michael Seaman, Dan Whelan, Phillip Aber and Ron Malston. Absent: Edward Ambarian and Betty Glick Also Present: City Attorney Ernest Sehlereth, City Clerk Sue Peter, Kenneth Butters and Gary Eitel B. NEW BUSINESS B-1: to A MOTION: Councilman Malston moved, seconded by Councilman Seaman, for approval of amendment of lease of Airport Terminal Space to Aviation Consultants, Inc. to include change in hours of operations and certain structural changes to tho facility as requested by ACI . Mr. Eitel reiterated his request of October 18, 1978, in which his company wishes to eliminate the fast food service in the Terminal and close off the entrance from the main lobby. Mr. Eitel elated that a dining room facility would be available for the public with entrance through the area of the Lounge. Mr. Eitel stated that the structural changes would allow for cocktails to be served in the dining room as well as the lounge and, thusly, minors would have to be accompanied by adultst Mr. Eitel advised that due to economics, they had found it would be necessary to make this type of a change as the fast food service involves high overhead with limited revenues. Mayor O'Reilly inquired if Mr. Eitel had read the memorandum from the police Chief in which it appears that approval for such a change will require Alcoholic Beverage Control Board concurrence. Mr. Eitel stated that he was "concerned" with the memo from the Police Chief and he had called the ABC Board office and talked with the secretary to the Director who stated that they had misunderstood the intent from the Chief of Police and that approval from the ABC Board would not be necessary. City Attorney Sehlereth stated that he too had held conversations with the ABC Board and was given the same information as the Police Chief that no authorization for renovation should be given until such time the ABC Board had reviewed the proposed changes and given permission . Mr. Schlereth also pointed out that the secretary had not been a party to conversations between the Police Chief a Goodwin} Councilman Malston advised Mr. Eitel that it was the Police Chief's responsibility to contact the ABC Board for all requirements necessary and then advise the Council. SPECIAL MEETING, Page Two Councilman Malston further commentod that it was the City's responsibility as owner of the Airport to provide service to the public. Councilman Malston stated that he was concerned with the persons arriving at the Airport in the early morning hours who would not be able to get coffee. Mayor O'Reilly agreed with Councilman Malston in that the City would have to provide a facility for the early morning travelers passing through the Terminal. Councilman Whelan gave some background information on the selection of a lessee for the Airport Terminal Cafe and Lounge and advised that Mr. Eitel was the only applicant that offered to do their own remodeling, etc. as the other applicants wanted the City to participate in bearing the costs of the project. Mayor O'Reilly inquired if the amendment to the lease and structural changes would offer the monetary relief the lessee was seeking or would a reduction in lease rate or some type of change in percentage agreement with the City and Mr. Eitel responded by stating that a reduction in the rent could possibly make a reduction in the overhead, however, an improvement to the facility will increase the cash flow and would not favor a reduction in rent. Councilman Whelan stated that the former lessee of the facility had experienced similar monetary problems with operation of the Airport bar and cafe and had to reduce hours of operation and service to the public. Councilman Whelan went on to state that the Council became concerned when the public was not receiving the service at the Terminal and the Council should definitely make arrangements for f the early morning travelers. Councilman Aber stated that relative to the minors not being allowed in the new facility unless accompanied by an adult, most of the minors are interested in soda pop, etc. and would be able to obtain these things from the vending machines in the Terminal lobby. a Gary Eitel stated that he was very "serious" with his relationship with the City and stated he felt the City has not done its share in assisting his business. Mr. Eitel advised that he felt he was unable to get longterm financing because of the pending suit against the City from the former lessee and his business also suffered because Of the parking situation. Mr. Eitel stated this "was a last ditch" effort as his company will not continue to lose money. 4 Councilman Malston stated that he could find no fault with the proposed concept and Ij would hope that the outcome would be successful. However, Councilman Malston further commented the matter still returns to the City's problem of providing a service to the public. Councilman Malston stated he would like to see that Mr. Eitel would be responsible for furnishing a coffee and sandwich/donut machine for the lobby area. Gary Eitel responded that he would be willing to run the proper piping, etc• for hookup of a coffee vending machine and would then contact Tyler Vending Company -- for installation of the proper vending machines. f SPECIAL MEETING, Page Three MOTION - AMENDMENT Councilman Whelan moved, seconded by Councilman Malston, to amend the motion to direct the City Attorney and Mr. Eitel's attorney to confer with the ABC Board as soon as possible and obtain the requirements for conformance to the State laws relative to making structural changes et al to the facility now located within the Airport Terminal. City Attorney Schlereth advised that the proposed amendments to be contained within the lease included changing all references to "fast food", change hours of operation to 10 a.m. to 10 p.m. , and for lessee to give up exclusive right to provide fast food service within the Terminal. City Attorney Sehlereth also pointed out that there may be a problem relative to excluding minors not accompanied by an adult from a facility within the Terminal. QUESTION - AMENDMENT Passed unanimously by roll dell vote. Mayor O'Reilly stated that he would vote no against the proposed lease change in line with some of the City Attorney's remarks and in addition would believe in the concept involved in the City leasing the area for a restaurant that could be utilized by persons of all ages and such operation would be at reasonable times to correlate with the scheduled air service. Mayor O'Reilly also commented on statements from Mr. Eitel of large quantities of monies expended for fixtures, furnishing, etc. in the lounge and stated that these were not at the request of the City but were the lessee's doing. Mayor O'Reilly stated he would support the approach of the lessee wishing an amendment to his lease that would include the continuing of service to the public of all ages and reasonable hours of operation (perhaps on a modified scale provide a coffee machine, etc.) . Vice Mayor Whelan assumed the chair. MOTION! Mayor O'Reilly moved to amend the motion to include: that the lease amendments i would provide for a public restaurant open to persons of all ages; . <,n At this time Mr. Ertel interrupted the proceedings to make the following statement: .....that he wished to go on record that he felt the concept of the meeting had been changed and at this point he felt he could no longer deal with the City directly and hereinafter wished all discussion, correspondence, etc. to be sent directly to his attorney's, Shimek a Peabody in Anchorage. At this point, Mr. Ertel and ==� Mr. Butters left the meeting. :-- Mayor O'Reilly continued with his amendment: ' the restaurant will be operated at reasonable hours with the scheduled air service; ! and the restaurant must offer a minimum fast food service. D Motion died for lack of second, L - - 1. 'f.' __ -_ •l ^ - _.. - /�/ 1a !1� _ .-F-vo _ - �..�.Ir : �%/'.. -.�ti 'i� l SPECIAL MEETING, Page Pour MOTION - AMENDMENT Councilman Whelan moved, seconded by Councilman Malston, that the lease will be further amended to include that the lessee will not have an exclusive franchise for fast food service in the future allowing the City to provide a fast food service if the demand is such that such a service would be to the benefit of the public using the Airport Terminal. QUESTION: Motion passed unanimously by roll call vote. Council concurred that Administration be directed to immediately investigate the possibility of installing coffee vending and perhaps a sandwich/donut-type machines J in the Terminal Lobby. QUESTION - MAIN, AS AMENDED: Motion passed by roll call vote with Mayor O'Reilly voting no, ADJOURNMENT There being no further business of this special meeting of the Kenai City Council, the meeting adjourned at 8: 45 a.m. Respectfully submitted, SW C . Peter, City Clerk •State law requires that minors must be accompanied by either parent, spouse or legal guardian.