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HomeMy WebLinkAbout1977-02-02 Council Minutes■: f -.��ea�a�r---,-z'�--�7Mi+.�•r�=max .,-,.-sac �.�- ^l�.�ii-.i1+•.al'- _Bank _ AGENDA REGULAR MEETING - KIMAI CITY COUNCIL 1 FEBRUARY 2, 1077 - 81 00 P.M. KENAI PUBLIC SAFETY BUILDING PLEDGE. OF ALLEGIANCE PACE A. ROLL CALL AGENDA APPROVAL B. PUBLIC HEARINGS 1 1. Ordinanco No. 207-70/77(F•) - Special Revenue Fund S. Ordinance No. 320-77 - Land finlo Ordinance 2 2• Renewal of Beverage Disponaruy Lieonan - Sheffield Ilouso/Kenai 2 3 4. Renewal of Beverage tliaponaary Lieenao - nnken Keg 054 3 5. Renewal of Aevorore Dispensary License - nnken Keg 058 C. PERSONS PRESENT SCHEDULED TO DE HEARD 1. 2. D. MINUTES S 1. Minutes of Regular Meating of January 19, 1077 8. CORRESPONDENCE 4 i 1. Congressman Young 2. Senator Stevens 4 S. Governor Hammond 4 4. Community a Regional Affairs 4 ` F. OLD BUSINESS 1. 2. 0. NEW BUSINESS 44 1. Bills to be paid - bills to be ratified 2. Ordinance No. 320-77 - Repealing Section 2-9 of the Code of the City of Kenai 5 ' 2. Resolution No. 77-11 - Study a Grant Application - Sewage System Study 4. Resolution No. 77-12 - Transfer of Manias - Police Department 5 5, Resolution No. 77-13 - Authorization of Purchase of Police Patrol Cnr 8 6. Resolution No. 77-14 - Contract to correct electrical problems in City Shop 6 7. Resolution No. 77-15 - Reducing Accounts Receivable In General Fund 7 8. Asalgnment of Lasso - Jack R, a Althea Peak 7 2. Lasso of Airport Lands or Facilities - RosLand Prelaht Service, Inc. 8 10. Periodic Cost Estimate 010 (Final) - Venal Community Library 0 11.APplieat(on for Permit/Authorized Oomos of Chance a Skill - Holy Assumption C rah • 12. Application for Pormlt/Authorized Games of Chance a Skill - Catholic Nan's Club 13. Resolution No. 77-16 - Donotion to Kenai Rommunity Library 14. Ordinance No. $20-77 - Spocinl Revenue Fund entitled "Library Ranefit drive" 10 15. 16. • 20. ' H. REPORTS 1. City )tanager's Report 10 2. City Attorneys Report 11 S. Mayor's Report 12 4. City Clerk's Report 12 S. Finance Director's Report 12 S. Planning a Zoning Commission's Report 12 7. Kenai Peninsula Borough Assembly's Report 12 1. PERSONS PRFSENT NOT SCHEDULED TO HE HEARD 1. Mrs, Emily DePorent, Librnrlon 1! ADJOURNMENT � 4 r; KENAI CITY COUNCIL - REGULAR MEETING FEBRUARY 2, 1977 - 8: 00 P.M. KENAI PURLM SAFETY BUILDING MAYOR JAPQS A. ELSON PRESIDING PLEDGE OF ALLEGIANCE A. ROLL CALL Present: Walter Sweet, Richard Morgan, Betty Glick, Edward Ambarian, James Elson. Absent: Tom Ackerly and Dan Whelan AGENDA APPROVAL: The following items were approved for addition to the agenda: B-3: Renewal of Beverage Dispensary License - Sheffield House/Kenai B-4: Renewal of Beverage Dispensary License - Oaken Keg #54 B-5: Renewal of Beverage Dispensary License - Oaken Keg #58 0-13: Resolution No. 77-10 - Donation to Kenai Community Library 0-14: Ordinance No. 326-77 - Special Revenue Fund entitled "Library Benefit Drive" B. PUBLIC HEARINGS B-I; Ordinance No. 297-76/77(E) - Special Revenue Fund Mayor Elson read Ordinance No. 297-76/77 (E) by title only as copies of the ordinance had been distributed to the public prior to the meeting. "An ordinance of the Council of the City of Kenai, Alaska, establishing a special revenue fund entitled Title II, Anti -recession revenue sharing by increasing estimated revenue and appropriations in the amount of $5,504." Mayor Elson opened the meeting to the public. There being no comment, the hearing returned to the Council table. MOTION: Councilman Ambarisn moved, seconded by Councilman Morgan, for adoption of Ordinance No. 297-76/77(E), establishing a special revenue fund entitled Title II Anti -recession revenue sharing by increasing estimated revenue and appropriations in the amount of $5, 504. Motion passed unanimously by roll call vote with Councilman Sweet not present at this time for voting, ■ KENAI CITY COUNCIL, REGULAR MEETING, FEBRUARY 2, 1877 Page Two B-2: Ordinance No. 325-77 - Land Sale Ordinance Mayor Elson read Ordinance No. 325-77 by title only. "An ordinance of the Council of the City of Kenai, Alaska, directing the sale of certain lands, as amended." Copies were available for the public. Mayor Elson opened the hearing to the public. Mrs. Ruby Coyle - Mrs, Coyle stated she had heard through the news media that a 25% reduction would be made of the minimum acceptable bid. Mr. Wise advised that the 25% reduction is now reflected in Ordinance No. 325-77. MOTION: Councilman Ambarian moved, seconded by Councilwoman Glick, for adoption of Ordinance No. 325-77, directing the sale of certain lands, as amended. MOTION: Councilman Morgan moved, seconded by Councilman Sweet, to amend Ordinance No. 325-77 by deleting the reference line. "For bids in excess of $5, 000, buyer, at his option, may pay 20% of the bid with remaining balance to be financed by the City at 8% interest over a period of 10 years." Mr. Wise advised Council that this particular item was included in order to provide an opportunity and the financing for those individuals who did not have enough assets, etc. to secure financing. Councilman Morgan reported that his objection to this section in the ordinance was that the City should not finance as individuals would be required to obtain financing from other lending institutions and improvements on the property would be encouraged. QUESTION: Failed by roll call vote. Voting no; Glick, Ambarian and Elson. Voting yes; Sweet and Morgan. QUESTION Main motion passed unanimously by roll call vote. 8-3: Renewal of Beverage Dispensary License - Sheffield House/Kenai Mr. Wise reported that all taxes were current and recommended approval. Mayor Elson opened the hearing to the public. There was no comment from the audience. 9 0 KENAI CITY COUNCIL, REGULAR MEETING, FEBRUARY 2, 1977 Page Three Council voiced no objection to the renewal of beverage dispensary license for the Sheffield House/Kenai. B-4: Renewal of Beverage Dispensary License - Oaken Keg #54 Mr. Wise advised that all taxes were current per contact with the Kenai Peninsula Borough January 31, 1977. Mayor Elson opened the hearing to the public. There was no public input. Councilwoman Glick stated that it was her opinion that the Council express a strong objection to the renewal of Oaken Keg #54 renewal for beverage dispensary license as they were in violation of the Code wherein the establishment did not engage in the active sale of alcoholic beverages for the minimum required time. MOTION: Councilman Ambarian moved, seconded by Councilman Morgan, that the City of Kenai go on record in strong objection of the renewal of beverage dispensary license for Oaken Keg #54 and file a protest under AS 04.10, 270 with the Alcholic Beverage Control Board. Motion passed unanimously B-S: Renewal of Beverage Dispensary License - Oaken Keg #60 Mr. Wise advised that all taxes were current. Mayor Elson opened the hearing to the public. There was no comment from the public. Council voiced no objection to the renewal of beverage dispensary license for the Oaken Keg #88. C. PERSONS PRESENT SCHEDULED TO BE HEARD None D . MINUTES D-1: Minutes of Regular Meeting of January 19, 1977 The minutes of the regular meeting of January 19, 1977 were approved as distributed. a d 4 - 11 ' f KENAI CITY COUNCIL, REGULAR MPETINO, FFBRIJARY 2, 1977 Page Four E A a IV ajavWS4 E-1: Congressman Young Mayor Elson acknowledged correspondence received from Congressman Young with regard to the EDA's failure to appropriate funds for the Kenai water storage reservoir. E-2: Senator Stevens Mayor Elson also advised that a letter had boon received from Senator Stevens with regard to the lack of funding for the City's water storage reservoir. E-3: Governor Hammond Mayor Elson advised that a letter had boon received from Governor Hammond in which Governor Hammond reported that he would give Mrs. Donnis Thompson serious consideration for appointment to the University of Alaska Board of Regents. E-4-. Community & Refflonal Affairs Commissioner McAnerney notified the City that she has officially determined the population of the City of Kenai to be 5,223 as of June 30, 1070. Mayor Elson advised that all correspondence to on file with the City Clerk. F. OLD BUSINESS None G. NEW BUSINESS 0-1; Bills to be paid - bills to be ratified Mr. Wise advised that Administration recommended approval of Items of 2/2/77 over $500 which require Council approval or ratification. MOTION: Councilman Ambarian moved, seconded by Councilwoman Glick , for approval of bills to be paid and approval of those items listed for ratification as of February 2, 1977. Motion passed unanimously by roll call vote, 0 KENAI CITY COUNCIL, REGULAR MEETING, FEBRUARY 2, 1977 Page hive G-2: Ordinance No. 320-77 - Repealin . Section 2-0 of the Code of the City of Kenai Mayor Elson read Ordinance No. 320-77 by title only. "An ordinance of the Council of the City of Kenai, Alaska, amending Section 2-0 of the Code of the City of Kenai to provide that intoxicating liquor may be sold on election days." Mayor Elson reported that the three various formats of Ordinance No. 320-77 had boon drawn up because of a situation on election day (January 28th) wherein the City advised local liquor establishments to close per City Ordinance and the Borough advised that they could remain open according to AS O4.18.020(c). It was now up to the Council to determine whether or not the laws of the City should be uniform with the surrounding areas. MOTION: Councilman Sweet moved, seconded by Councilman Ambarian, for introduction of Ordinance No. 320-77, "an ordinance of the Council of the City of Kenai, Alaska amending Section 2-9 of the Code of the City of Kenai to provide that intoxicating liquor may be sold on election days. Whereas, Section 2-9 provides that intoxicating liquor may not be sold on election days until the polls are closed, and Whereas, the Council finds that there is no purpose served by prohibiting the sale of intoxicating liquor on election days, and Whereas, pursuant to Title 4, Alaska Statutes, political subdivisions may by ordinance provide that statutory policy regarding sales of intoxicating liquor on election days does not apply within the political subdivision. Now, therefore, be it ordained by the Council of the City of Kenai, Alaska, that Section 2-9 of the Code of the City of Kenai is hereby amended to read in its entirety as follows: The provisions of AS O4.15-020(e) do not apply within the City of Kenai when elections are being hold and intoxicating liquor may be sold or otherwise disposed of within the City of Kenai on election days in the same manner and pursuant to the same regulation as on other days." Motion passed by roll call vote, Voting yes; Sweet, Morgan, Glick, and Ambarian. Voting no; Elson. G-3: Resolution No. 77-11 - Study a Grant Application - Sewage System Study Mayor Elson read Resolution No. 77-11 by title only. "A resolution of the Council of the City of Kenai, Alaska, authorizing a contract between the City of Kenai and C112M Hill for preparation of plan of study and grant application Step 1." Mayor Elson advised the public that this matter was a ratification of a telephone poll conducted by Administration earlier in the week. i� KENAI CITY COUNCIL, RUGULAR PREETIN0, 1 PHRIJARY 2. 1077 Page Six MOTION: Councilman Sweet moved, seconded by Councilman Ambarian, for adoption of Resolution No. 77-11, authorizing a contract between the City of Kenai and C112M Hill for proprotion of plan and study and grant application, Step 1. Motion passed unanimously by roll call vote. 0-4: Resolution No. 77-12 - Transfer of Monies - Police Department Mayor Elson read Resolution No. 77-12, "be it resolved by the Council of the City of Kenai, Alaska, that the following transfer of monies be made within the 1976-77 General Fund Budget. From: Police Department/Wages - $ 0,320) To: Police Department/Machinery a Equipment - $0, 320. The purpose of this resolution is to transfer funds within the Police Departmont Budget for the purchase of one 1977 Chevrolet Nova Patrol Car ($5, 000) , two twin beacon emergency light assemblies ($600), two security screening assemblies ($600) and two 870 Remington Shotguns for $220 with trade." MOTION: Councilman Ambarian moved, seconded by Councilwoman Glick, for adoption of Resolution No. 77-12. transfer of monies - Police Department Budget. Councilman Morgan stated that he felt the bid on the Chevrolet Nova was still higher than offered by a local dealer if refund of taxes, etc. were considered and Councilman Morgan further requested that Administration contact the various dealers for price quotes before a final determination is made. MOTION. Councilman Morgan moved, seconded by Councilman Ambarian, to amend Resolution No. 77-12 to delete the reference to "Chevrolet Nova". Motion passed unanimously by Council QUESTION - MAIN, AS AMENDED Motion passed unanimously by roll call vote. G-6: Resolution No. 77-13 - Authorization of Purchase of Police Patrol Car Per Council action in Item 0-4, Resolution No. 77-13 was withdrawn until such time as additional quotes for patrol car are submitted by Administration. ©-6: Resolution No. 77-14 - Contract to Correct Rlectrical Problems in City Shop Mayor Elson read Resolution No. 77-14 by title only. "A resolution of the Council of the City of Kenai, alaska, authorizing the City Manager to enter in a contract with Dunamis Electric to correct electrical problems in the City Shop facility." r KENAI CITY COUNCIL, REGULAR MEETING, FE,BRUARY 2, 1977 Page Seven Mr. Wise advised that Dunamis Electric was the only contractor willing to under- ] take the correction work that was required and recommended approval. MOTION: Councilman Ambarian moved, seconded by Councilman Morgan, for adoption of Resolution No. 77-14, authorizing the City Manager to enter into a contract In the amount of $4 , 001.59 with Dunamis Electric to correct electrical problems in the City Shop facility. Motion passed by roll call vote. Voting yes; Morgan, Glick, Ambarian and Elson. Voting no; Sweet G-7: Resolution No. 77-15 - Reducing Accounts Receivable in General Fund Mayor Elson read Resolution No. 77-15. "A resolution of the Council of the City of Kenai, Alaska, reducing Accounts Receivable in the General Fund. Whereas, Borgen & Sons Excavating broke a City water line on October 23, 1975 and as a result of such break, a second break occurred October 24, 1975, and Whereas, a settlement of $581.65 has been offerred by Borgen & Son's Insurance carrier, such amount covering the first water line breakage only, and Whereas, it is in the best interests of the City to withdraw its claim for the second water line break, and Whereas $3,663.95 has been recorded as accounts receivable in the General Fund for these water line breaks, and Whereas, Council approval is required to reduce accounts receivable. Now, therefore, be it resolved by the Council of the City of Kenai, Alaska, that Accounts Receivable in the General Fund are hereby reduced by the amount of $3,082.30 to reflect settlement of the claim against Bergen & Sons Ex- cavating." MOTION: Councilman Sweet moved, seconded by Councilman Morgan, for adoption of Resolution No. 77-16, reducing Accounts Receivable in the General Fund. Motion passed by roll call vote. Voting yes; Sweet, Morgan, Glick and Ambarian. Voting no; Elson. 0-8: Assignment of Lease - Jack R. & Althea Peck ' Admininstration advised that this assignment of lease from Jack R. and Althea F. Peck for the purpose to secure a loan from the National Bank of Alaska was on Lot 1, Part Three of Alyeska Subdivision and Lot 1-A, Part Three of Alyeska Subdivision. MOTION: Councilman Morgan moved, seconded by Councilman Ambarian, for approval of -- Assignment of Lease, Jack R. and Althea F. Peck on Lots 1 and 1-A, Part Three - - of Alyeska Subdivision. I Motion passed unanimously by roll call vote, 9 'Ali 1 KENAI CITY COUNCIL, REGULAR MFFTINl1, FFRRUARY 2, 1977 Pnpr. Fight e) a-9: Lease of Airport Lands or Facilities - SeaLand Freight Service, Inc. Administration advised that this lease on Lot 6, Block 2, Cook Inlet Industrial Air Park was for one year at an annual rental of $1,675.00. Mr. Wise further advised that an error was made in the amount of assessments as set forth in Schedule A in that they were $23.99 understated in the lease. MOTION: Councilman Sweet moved, seconded by Councilwoman (flick, for approval of lease of Lot 6, Block 2, Cook Inlet Air Industrial Air Park, to SeaLand Freight Service, Inc. for a term of one year at an annual rental rate of $1,575.00 and amendment to the lease to reflect the correction of increase of $23.99 to the assessment amount set out in Schedule A attached to the lease. Mayor Elson inquired if SeaLand had fulfilled all obligations on their prior lease with the City. Mr. Wise responded that there was some question over the assess- ments and SeaLand felt that they were being charged for assessments on Lots 6, 7, and 8 in the amount of $4,800 which was unfair on a lease of only a term of one year. This amount does not include penalty and interest. Mayor Elson stated that he was not in agreement with the approval of the proposed lease until such time SeaLand had met all commitments of the prior lease. QUESTION: Motion failed by roll call vote. Voting no; Mick, Ambarian, and Elson. Voting yes; Morgan and Sweet. Mayor Elson stated he believed there was still an area open for negotiation between the City and SeaLand to define what is an acceptable termination of the prior lease before entering into a new lease. Mr. Charles Ogle, representing SeaLand, explained to Council that SeaLand had leased Tots 6, 7, and 8 prior to the actual decision as to what facilities would be constructed. At this point in time, SeaLand was still not desirous in entering into long-term agreements with the City. Mayor Elson advised Mr. Ogle that the City had broken policy to enter into a one year agree- ment and on the previous lease, SeaLand had agreed to pay the assessments in order to obtain this shorter term. Mayor Elson stated the City was basically trying to find an incentive to have SeaLand stay within the City for their base of operation. MOTION: Councilwoman Glick moved, seconded by Councilman Ambarian, for immediate reconsideration. Motion passed unanimously. KENAI CITY COUNCIL, REGULAR M1,TT1NG, FEBRUARY 2, 1977 Page Nine MOTION: io� Councilman Sweet moved, seconded by Councilman Morgan, for approval of lease of Lot 8, Block 2, Cook Inlet Industrial Air Park, to SeaLand Freight Service, Inc. with the lease agreement to be amended to include the following under item (a) "Assessments for public improvements now benefitting property in the amount of $1,651.40 and the assessments of lease dated May 15, 1975 in the amount of $3, 302.98 to be paid to the City and penalty and interest waived on this amount if paid within 30 days of approval of new lease by Council." Motion passed unanimously by roll call vote. Main motion as amended passed unanimously by roll call vote. 0-10: Periodic Cost Estimate #10 (Final) - Kenai Community Library Mr. Wise advised Council that there were some adjustments necessary with regard to weather stripping around the doors of the library and recommended approval of payment contingent upon completion of these adjustments by the contractor. MOTION: Councilman Morgan moved, seconded by Councilman Sweet, for approval of Periodic Cost Estimate #10 in the amount of $1,000.00 contingent upon completion of adjustments to weather stripping around doors by the contractor. Motion passed unanimously by roll call vote. G-11., Application for Permit/Authorized Games of Chance 5 Skill - Holy Assumption Church Council had no objection to the approval of Application for Permit for Authorized Games of Chance and Skill for 1977 for the Holy Assumption Church of Kenai. 0-12: AppUcation for Permit Authorized Games of Chance a Skill - Catholic Men's Club Council had no objection to the approval of Application for Permit for Authorized Games of Chance and Skill for 1977 for the Catholic Men's Club of Kenai. 0-13: Resolution No. 77-18 - Durnation to Kenai Community Library Mayor Elson read Resolution No. 77-16. "A resolution of the Council of the City of Kenai, Alaska, accepting funds in the amount of $850 from the Kenai-Soldotna Eagles Aerie #3525 to be donated to the Kenai Community Library for books and materials. Whereas, the Kenai-Soldotna Eagles Aerie #3525 sponsored a library benefit drive, and Whereas, members of the community responded to this drive and donated $850 for books and materials for the Kenai Community Library. Now, therefore, be it resolved -- by the Council of the City of Kenai, Alaska, that sincere thanks and gratitude be extended to the Kenai-Soldotna Eagles Aerie #3525 for sponsoring a drive to collect funds for donation of books and materials for the Kenai Community Library and to _- members of the community who donated funds for this purpose." KENAI CITY COUNCIL, RFGULAR MP.FTING, 1:FRRUARY 2, 1977 Page Tan MOTION: Councilman Ambarian moved, seconded by Councilwoman (hick, for adoption of Resolution No. 77-16, donation to Kenai Community Library in the amount of $950 from the Kenai-Soldotna Eagles Aerie #3525. Motion passed unanimously by roll call vote. 0-14: Ordinance No. 326-77 - Special Revenue Fund entitled "Library Benefit Drive" Mayor Elson road Ordinance No. 326-77 by title only. "An ordinance of the Council of the City of Kenai, Alaska, establishing a Special Revenue Fund entitled Library Benefit Drive by increasing estimated revenue; and appropriations in the amount of $850." MOTION: Councilman Morgan moved, seconded by Councilman Sweet, for introduction of Ordinance No. 326-77, establishing a Special Revenue Fund entitled Library Benefit Drive by increasing estimated revenues and appropriations in the amount of $850. Motion passed unanimously by roll call vote. Councilman Ambarian introduced Mr. Nibblor, representing the Kenai-Soldotna Aerie #3525, who presented the check to Mayor Elson. Mayor Elson extended the thanks of all the citizens of the area who would greatly benefit from this donation. H. REPORTS H-1: City Manager's Report Mr. Wise reiterated portions of his City Manager's Report #10 ( a copy of which is attached and is part of the official proceedings of this meeting) . (a) American Legion - the City is waiting for a valuation of the building so that a proper price can be determined. (b) Sr. Citizen Nutritional Program - very successful and Administration would request that the Borough pass a resolution in support of the program. (a) Kenai Terminal Building - Administration met with representatives from the High School and cost of the project to paint murals on the outside walls of the Terminal would be approximately $900;. At present, there are no funds under Airport O&M, however, there may be funds available in the Planning Grant. W 0 KENAI CITY COUNCIL, REGULAR MEETING. FEBRUARY 2. 1977 Pago Pleven MOTION: Councilman Morgan moved, seconded by Councilman Sweet, that Council direct Administration to proceed with plans for the painting of murals on the Terminal by the High School Art Department and for Administration to present the necessary paperwork at the next meeting of Council for implementation of proper accounting procedures. Councilman Ambarian requested that Council and the Planning Commission be given the opportunity to review the proposed mural plan and also stated that he would look into areas wherein the City may obtain scaffolding for the project. Motion passed unanimously by Council. MAYOR & COUNCIL - QUESTIONS AND COMMENTS (a) Employee Insurance Plan - Councilman Ambarian stated that he had been approached by several City employees who were dissatisfied with the present insurance coverage. Mr. Wise reported that Administration had no definite proposals and would like to discuss this matter in a work session with Council. Mayor Elson stated he felt it was time that the City invited proposals for new insurance as the City has an obligation to see if City is getting value for the money spent on insurance. Mayor Bison suggested a committee be appointed to review what can be offered and develop materials for presentation to Council. Council so concurred and Councilman Ambarian was selected from Council and representatives would be selected from the Department of Public Works, Department of Public Safety and a representative from Finance. (b) Kenai Fire Rating - Councilman Morgan asked the status of the Insurance Services 9 Office Fire Rating. Mr. Wise reported that he had just received correspondence , from ISO in which they state a rate change from 5 to 7 will probably be effective within a month. Mr. Wise further advised that he had requested additional ; information from I80 with regard to deficiencies and also commented that he felt the lack of a water storage reservoir was the major factor in increasing the fire rating. Councilman Ambarian stated it was his opinion that Mr. Simms of ISO should personally travel to Kenai and point out the deficiencies to the City Manager and to the Fire Chief. Council directed the City Manager to investigate the matter and report back to Council with regard to setting up a meeting with 180. H-2: City Attorney's Report (a) Tidelands - City Attorney Williams advised that the patent had been signed, however, It is now going through the final check stage. (b) Section 36 - Councilman Morgan requested that the City Attorney prepare a resolution from Council urging Legislation be drafted. KENAI CITY COUNCIL, REGULAR MEETING. l VRRUARY 2, 1977 Page Twelve n (e) PEP Suit - The State has presented another offer in the amount of $24,000 plus interest. City Attorney Williams asked if Council would like to make a counter- off,:r. Council concurred to wait until Senator Tillion has made contact before the City accepts the offer or makes a counter-offer. ,1 (d) Kenai Baptist Temple - no decision has been rendered on the bond and no estimate can be given as to when the briefs and arguments will be heard. H-3: Mayor's Report None H-4: City Clerk's Report None H-6: Finance Director's Report Finance Director, Ross Kinney, advised the Council that several people have left the City with books that have been checked out of the Kenai Community Library, however, the City to holding their library card deposit. Mr. Kinney asked if Council wanted the matter handled in a particular manner. Mayor Elson stated the City had two alternatives -- either replace the books or put the deposits in the budget and allocate the funds where needed. H-6: Planning s Zoning Commission's Report Councilwoman Glick reported that one item of particular interest was the Chamber of Commerce Bicentennial Subdivision and that that the lease was to be brought before Council. City Manager Wise reported that Administration had asked the Chamber of Commerce to re -draw the plat and reduce the size and re -submit the plat. H-7: Kenai Peninsula Borough Assembly's Report Mayor Elson reported that Mr. Oscar L. Thomas was seated as a new Assembly member and that he had been appointed to the Finance Committee. Also, under hearings of ordinances, the following ordinances passed: Ord. 77-1, Ord. 77-2, Ord. 77-3, Ord. 77-4 and Ord. 76-70, authorizing the expenditure of Borough funds to proceed through the construction documents phase of architectural services relating to the proposed Soldotna High School and Ord. 77-5, authorizing the expendi- ture of Borough funds to proceed through the construction documents phases of architectural services relating to proposed improvements at public schools at Tustumena, Anchor Point, Sterling and Homer High failed. Ord. 77-8, appropriating f . 1 KENA.I CITY COUNCIL, REGULAR MEETING. FEBRUARY 2, 1977 Pago Thirteen I $210,000 for completion of the renovation of the Borough Administration Building was sot for hearing March let. Resolutions 77-7, 77-8, 77-9 and 77-10 all passed but Res. 77-5, establishing a procurement and purchasing policy and approval purchasing regulations for the Kenai Peninsula Borough was referred to Finance. I. PERSONS PRESENT NOT SCHEDULED TO RE HEARD 1-1: Mrs. Emily DeForest - Librarian Mrs. Deforest, on bohalf of the Kenai Community Library, again thanked the Eagles for their donation and support. i There being no further business of the Kenai City Council, the meeting adjourned at 10:30 p.m. j Respectfully submitted, i » I S C. Peter, City Clerk ■ •-.- - h.cam - CITY MANAGER'S REPORT - 010 ADMINISTRATION - FINANCE. 1. Ordinance 297-79/77 (Special Revenue Fund) This is a public hearing on the second check; i.e. third quarter of the anti -recessionary special revenue funding received from the Pederal Government. Our recommendation, in accordance with the ordinance which was introduced, is to place these funds in the Communications Department to cover additional costa due to turnover in personnel. Presumably we will not utilize the funds in full, but we are required by Federal law to spend these funds on personnel costs and we will, on approval, cause those funds to be expeditiously expended to meet the Federal audit requirements. 2. Ordinance 325-77 Land Sale In accordance with the amendments that were approved by the Council on introduction, the Ordinance has been modified. I would like to draw your attention to the fact that, of the twenty items originally listed, five are no longer listed by description and price inasmuch as they have been redeemed We will be able to provide you with the information about those properties redeemed, but we are trying to show the numbering as is so that we don't confuse the public by renumbering the parcels. We will not, however, relist the properties as it might be of some embarrassment to the people who had their properties redeemed. 3. Ordinance 320-77 This ordinance is designed to solve our problem relative to sale of liquor on Election Day. The situation that occurred on the 25th of January, during the eloction on the school bond issue, created a problem for us in that we have a section in the Code which states that the bars will be closed during an election. This is not necessarily in accordance with State law. In our discussion of this particular problem, we have had a variety of opinions and therefore, we arc drafting three different ordinances, all related to the same matter, for the Council to choose the particular action that they wish to take to solve this problem. 4. Resolution - Award of Contract CH2M Hill This is to confirm the award that was made by telephone poll this last week. We asked for a telephone poll approval from the Council, so that we would have a signed agreement with CH2M Hill to proceed with the City Manager's Report - #10 08' February 2, 1977 Page 2 grant preparation and study application. Due to the fact that we have been notified by the Federal Government that we are subject to suit due to pollution problems and that we expect a visit from the U . S . Attorney in the very near future, hopefully, having such document in our possession will show a positive indication of good faith and cause them to not come down hard on us. S. Resolution - Dunamis Electric This is a resolution awarding a contract to Dunamis for repair of electrical system in the City shop relative to the generator, wiring in the shop and airport lighting system. It exceeds the statutory limit of $2500. 00 relative to bid, however, inasmuch as this contract relates to professional expertise in reviewing the system and designing the alternatives to the problems that we have (which, incidently, are in violation of National Fire Codes and Electrical Codes) we feel that this is not simply a contract for work, but more rationally and logically a professional service contract. The City Attorney has reviewed this and we have discussed it thoroughly and we have her concurrance that a professional contract is appropriate. 6. Resolution - Transfer Funds in Police Department Budget This resolution will transfer funds from Salary a Wages in the Police Department to Capital Expenditures in the Police Department. The first check that we received from the Federal anti -recessionary revenue sharing was placed in the Police Department so that we could properly expend the monies on salaries. We have expended approximately $13, 000.00 on salaries, almost exactly what we received. Since we added it to the salary and wage account, we now have approximately the same amount of money in excess to the needs of salary and wage account in the Police Department. We have met the Federal obligation for expenditure of these funds. We would like to now take part of these excess funds from the regular appropriation and move them to capital equipment account in the Police Department. The reason for this is that we have severe problems in regard to police cars; age, extreme costa of operations and, in fact, an inability at the time of adoption of the budget to fund the second car that the Police Department asked for. We would now like to transfer sufficient funds to purchase a second police car, to purchase the auxiliary equipment that to required to support that car and we've added some additional funds to enable us to replace, on a trade-in basis, two shotguns. �•� 7. Resolution - Award Contract for the Recond Police Car This resolution requests a second police car that we requested the funding '_, # I . , "I o . , ., a:-_-. City Manager's Report - 010 February 2, 1977 Pago 3 for in the previous resolution and is to be awarded to Hutchings Motors on the same terms as their initial quote on the first police car. The price listed, of course, does not include transportation. Transportation will not exceed $000.00 and therefore, we expect the price to be slightly less than $8, 000.00 overall. 8. Resolution - Professlonal Service Contract In accordance with my request to the Council, the Council authorized the retention of a surveyor to do the surveying of the FAA lands which the City is rezoning. These lands lie south of the Spur Highway. This survey is to be basic, elemental surveying in applying easements, natural drainage, establishing bench marks and appropriate monuments. This will give us a basic means of identifying possible subdivision of the lands that are available. I was surprised on the quotes received and I am also extremely disappointed on the time frames received, which run into May and .Tune of this year. However, this work still must be done and we do have the funds available in the Airport Land Fund. I would recommend the adoption of the resolution as proposed. 9. Resolution - write -Off Claim This resolution is to, in essence, write off a claim which we are now carrying on our books as an Accounts Receivable. This relates to a water -break problem on Tinker Lane that occurred last year. This break was followed by another break, also caused by the same contractor. The City filed a claim against the contractor, through his insurance company, hoping that they would cover the cost of repairs. The previous break was covered by his insurance. This break, which we were asking for a claim on, was discovered and determined that installation of the water line was inproper. We could press our claim against the contractor and his insurance company; however, chances of recovery are not too good and more significantly, we would have to be prepared to go to court, even to get a settlement. The cost of going to court may be more than we can reasonably expect to recover, in that we would have to line up, examine and obtain expert testimony to support our case, Therefore, it is my recommendation that we drop this claim and write off this amount in account receivable. 10. Assignment of Lease - Katmai Motel This is a standard action. We will have a report at the time of the meeting as to the status of personal property taxes, lease payments, sales taxes and City Manager's Report - #10 February 2, 1077 Page 4 so forth, so the Council can be aware of the financial situation relative to public obligation. 11. Senior Citizens Nutritional Program To date, the program has been what I must consider to be a resounding succeRa. We've had, in the excess, of twenty-two to twenty-three people at the luncheon at Fort Kenay every day this week. They are not necessarily the some individuals. Therefore, our exposure has been perhaps forty to sixty different individuals which I am very pleased with and I think that the Council can be gratified at the success of the program. You are all, of course, invited to attend the program and lunch with the Senior Citizens, though I must ask that individually, you make your own reservations and be prepared for a $3.00 tab. 12. American Legion Building We have reviewed, within the Administration, the process for providing a public sale of the building, yet having some assurance that the American Legion would be able to obtain the building. The problem that we have at the moment is to establish the value of the building and the value of the American Legion's modifications of the building. We have asked Mr. Hancock for the American Legion's estimation of the value of the building and the improvements which they have made. Once we put these figures together and feel that we have a viable and legitimate market value, we will present the program to the Council. 13. Borough Grant Proposal The Borough has prepared a grant proposal for OCS Coastal Management Planning. The grant essentially asks for a Federal grant of roughly $05, 000. 00. Within the grant, the bulk of the monies are to be spent for additional staffing in the Borough Planning office. My comments have been prepared and sent to the Borough. My main comment is that this additional staffing should not be paid from grant monies, in that this to essentially a back door approach to increasing the staff of the Borough planning department. U a staffing increase is needed, it should be outwardly and forthrightly funded through the Borough Assembly and the appropriate budget activities. - - 14. HUD Table Attached to this report to an extract of a HUD report which we have recently received, indicating the growth of the City over a considerable number of I oil , r� City Manager's Report - 010 February 2, 1977 Page 5 years in housing units. Of interest is a conparison between our growth and that of Soldotnas' . 15. ISO As you have been previously called by the office here, there is a problem over our insurance rating with the rating going, perhaps, from a Class V to a Class VII. This was, of course, picked up and announced over the radio and I commented then, as I comment now, that we have only rumors but no real documentation that we can react to in regard to our deficiencies in going from a Class V to a Class VII. We did call loan Francisco to try to obtain data on this. The inplication that we received was that yes, we were going from a Class V to VII but that they would not release the information at that time. Further, the rating change would not be effective for another 60 days. Since that time, I have written a letter to the supervisor complaining, in effect, of the premature release of the information and secondly, of the non -receipt of the report which was prepared last August. I feel that we should take no action nor make comments as to what we can or should do until we have received the report and can respond to it directly. 16. East Side Painting of Terminal Wall I've discussed the project with Mrs. Larsen of the Kenai High School, and she has agreed to have her class do the project. I promised to inform her Immediately following the meeting on Thursday as to whether or not we can issue a go-ahead sign on it. The basic question which we have to to determine the cost of the project. We will have to put a base coat on the building and then provide paint, brushes, scaffolding and miscellaneous matters for the students to actually do the work. In the event that we can fund it, we would have to complete the undercoat prior to the 15th of April and the school would then work on it from that time to the end of the school year in May. I will have information as to the cost for the meeting on Wednesday and ask for your comments at that time. 17. Ordinance - Eagle Fund Drive We have an ordinance on an Eagle Fund Drive for the Library, This ordinance may or may not bo included in this packet due to its late receipt here at the office. But this is essentially a receipt of monies raised by the Eagles from within the community and support a variety of activities in the Library: fiction, non-fiction, historical, Alaskan, etc. The ordinance will be prepared and the check, possibly $850,00 will be presented to the Council and the Library at that time. 11 M _ _ _1WV. _1 CITY OF KENAI "Od Oapdal of 4"„ P. O. BOX $10 K/NAS, MAIKA "611 -- - TIMMONS 281 • 7696 January 28, 1977 TOs John E. Wiso, City M- nagor FROMs Phillip Aber, Director of Public Works WEEKLY REPORT FOR WEEK ENDING JANUARY 28, 1977 EDA Water Well Project As of today, our Water Well #2 has been increased to a dopth of approximately 1801. We are starting to penetrate the top portion of our confined aquifer and the porosity of the material is becoming increasingly -larger and our artesian water pressure is becoming somewhat greater". Work is continuing on the installation of pumps and valves and work on the water tank inside of Wall House 02. Notes For the last two weeks the street cretin has spent their time sanding streets gild trying to remove the ice pack and slush build- up on the city sheets. The water and sower department have boon installing and rep"airing some Of the.commercial water motors in the city and are i� the process of digging up and replacing two inoperative fire hydrants in the Mommsen 49bdivision. They have also spent a considbrable amount of their"time on trying to locate in -flow to the city's sewage collection system. These large ;{ in -flow problems from the rain and the thawing weather have resulted in extremely high flows of'over 1 MOD into the sower plant. Those !` high flows, besides putting us in a noncompliance status with EPA on our discharge permit, have also flooded the sewer treatment plant several times throughout this winter. This has created a very severe operation and maintenance problem in our sower treatment plant besides causing us a number of problems in our monthly reports to EPA and DEC. These high flows have also caused operation and —,= maintenance problems to our five sewage lift stations.