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HomeMy WebLinkAbout1977-06-16 Council Minutes0 ' KENAI CITY COUNCIL - REGULAR MHETING JUNE 16, 1977 - 6: Oo p , m KENAI PUBLIC, SAFETY BUILDING MAYOR JAMES ELSON PRESIDING PLEDGE OF ALLEGIANCE A • ROLL CALL Present Betty Glick, Richard Morgan, q)an Whelan, Tom Ackerly, Rd Ambarian and .lames plson, Absent : Walter Sweet P. OLD BUSINESS F-5 Proposal to Lease A ort Cafe a Bar - Mr. Paul Vadan Mayor Elson stated that the Council had had the opportunity to meet with Mr. Vadan earlier and all members had a copy of Mr. Vadan's proposal for lease of the Airport Bar and Cafe and suggested that the Council, City Manager, City Attorney, Police Chief and Finance Director adjourn to an executive session to review Mr. Vadan's proposal MOTION: Councilwoman Glick moved, seconded by Councilman Ambarian, that the City Council adjourn to an executive session for the purpose of discussing the lease proposal of Mr. Paul Vadan because such discussion may reflect Upon the character or reputation of Mr. Vadan. Motion passed unanimously by roll call vote. *Councilman Whelan in at this time, RECONVENE - 6:45 P.M. Mayor Elson asked it Council had any directives for Administration in the matter. Councilman Whelan stated that he felt the lease proposal, as presented, shwjld be refined in Some areas and made the following suggestions: (1) That a more definite time table be established for the improvements and alterations to the building. (2) That Mr. Vadan's partner, Dr. Bernard, be incorporated into the lease so that the performance and time table for improvements and alterations is guaranteed. N KENAI CITY COUNCIL. REGULAR MEETING i'• JUNE 16, 1977 - 6: 00 p.m. E V ' -.- Page 2 (3) Since the amount of the lease is based on gross receipts, that the City be allowed to conduct its own audit on gross receipts. Mayor Elson stated that this was not a lease under consideration and that the proper approach would be for the Council to notify Mr. Vadan that they had directed Administration to prepare a lease for Council consideration. Councilman Ambarian stated that he was in agreement with the comments made and stated that Council should make a motion expressing approval or disapproval of the proposal. MOTION: Councilman Ambarian moved, seconded by Councilman Whelan, that the Council direct the City Administration to continue negotiations with Mr. Vadan, with the hope that Council would eventually approve such application, with the suggestions made by Councilman Whelan included. Motion passed by roll call vote. Voting yes: Glick, Whelan, Ackerly, , Ambarian and Elson. Voting no: Morgan. Councilman Morgan asked if the sketch mentioned in the proposal was of the Terminal as it now exists or after the proposed alterations. Mr. Wise stated that it was as it now exists. Mayor Elson appointed Councilman Ackerly and Councilman Whelan to a committee to work with Administration on further negotiations with Mr. Vadan. Councilman Whelan advised that he would be out of town for one week, beginning July 2nd, and asked if this would interfere with his appointment. Mayor Elson stated that it would not. Councilman Ambarian acknowledged receipt of a proposal received from Brian and Nancy Peck for lease of the Airport Cafe and Aar at this time and requested that such proposal be reviewed under "Persons Present Not Scheduled to be Heard". There being no objection, Mayor Elson so directed. G. NEW BUSINESS G-1: Bills to be Paid - Bills to be Ratified MOTION: Councilwoman Glick moved, seconded by Councilman Ambarian, for approval of those items listed for disbursement and ratification as of 6/15/77. Motion passed unanimously by roll call vote. J KENAI CITY COUNCIL - REGULAR MELTING JUNE 16, 1977 - 6:00 p.m. Page 3 G-2: Ordinance 347-77 - Special Revenue Fund "Kenai Sr. Citizen Project" Mayor Elson read Ordinance No. 347-77 by title only. "An Ordinance of the Council of the City of Kenai, Alaska, Establishing a Special Revenue Fund entitled "Kenai Senior Citizen Project" by increasing Estimated Revenues any Appropriations in the Amount of $35,600." Mr. Wise stated that the Council had previously discussed the budget for Title III and Title VII of the Kenai Senior Citizen Project and had passed a resolution authorizing application for grants. Since that time, the City has been notified that the grant amount for Title III is $26,500 and the grant amount for Title VII will be much less than anticipated. Therefore. the two programs that we had have to be revised. This account is basically to meet the needs of the Council on Aging. The budget for Title VII is in the process of being reworked and will be presented to Council separately. MOTION: Councilman Morgan moved, seconded by Councilman Ambarian, for introduction of Ordinance No. 347-77, establishing a special revenue fund entitled "Kenai Senior Citizen Project" by increasing estimated revenue and appropriations in the amount of $35, 600. Motion passed unanimously by roll call vote. t1-3: Ordinance No. 348-77 - Authorizing Purchase of Used Motor Grader Mayor Elson read Ordinance No. 348-77 by title only. "An ordinance of the City of Kenai authorizing purchase of a used motorgrader and appropriating funds from federal revenue sharing for such purchase." Mr. Kinney stated that federal law requires establishment of a special revenue fund to record receipts and disbursements of federal revenue sharing. A public hearing was held by the City Council which established the need to purchase equipment with these funds and as proper accounting practice is that all appropriations of City money be made by Ordinance, we must appropriate the monies from the federal revenue sharing trust fund to the proper fund and account within that fund for the expenditure of the monies. Our entitlement for the period of January I through September 30, 1977 is approximately $98,000 and after this appropriation of $75,000, the balance will be approximately $23,000. Mayor Moon asked why this particular grader was chosen. Mr. wise stated that this was a Cat Model 12G which N . C . Machinery had for - sale after only 304 hours of usage. The der is i 8 grader n excellent condition, has all standard equipment and the tires had been replaced to make i p t suitable for usage in this area. Anew purchase, regardless of make or model, would cost between $100,000 and $150,000. This piece of equipment Is immediately available and adequately meets the City's needs at a reduced cost. l '- a Y I KENAI CITY COUNCIL - REGULAR MEETING JUNE 16, 1977 - 5:00 p.m. Page 4 Mayor Elson asked what type of warranty would be supplied on this particular grader. Mr. Aber stated that the warranty would be 50/50, for a period of 12 months, with the City supplying labor and N . C . Machinery supplying parts. Councilman Whelan asked why purchase of a grader had been chosen over other pieces of equipment. Mr. Aber advised that the grader was badly needed. The trucks presently being utilized for grading are not made for this function; therefore, repair costs are high. The City presently has two graders, which are not adequate for the mileage which the City has. The purchase of the new grader would enable the City to release the trucks now being used in this capacity for other purposes for which they are better equipped. Mayor Elson asked about the maintenance costs on the grafters which the City presently has. Mr. Kinney advised that he did not have exact figures at this time, but the maintenance costs had been extremely high. One grader had cost the City $40, 000 in maintenance during the past year, Councilman Whelan asked what the balance would be in this account if this expenditure was made. Mr. Wise advised that the balance would be approximately $23,000. Councilman Whelan asked what type of warranty there would be on a new grader. Mr. Aber advised that normally the warranty was 90%. Mayor Elson asked for the City Attorney's opinion regarding the purchase of the grader without advertising fiir bids. Ms. Williams stated that the Ordinance is written showing there is only one supplier, which satisfies the bidding requirement. Mr. Wise stated that he did not see how used equipment could be bid. Councilman Whelan asked for Ms. Williams legal opinion in the matter. Me. Williams stated that she felt that the Council can make exception to competitive bidding; therefore, this would be for the Council to determine. Mr. Aber advised that he would like to purchase a Cat grader because they have many advantages over other graders made such as better visibility, high resale value and a non -rigid frame, and N . C . Machinery is the only supplier for this region. Councilman Morgan asked if suppliers in Anchorage had been contacted regarding this purchase. Mr. Aber stated that there was no Cat supplier in Anchorage, but he had requested price information from Anchorage suppliers, Councilman Morgan asked if he had inspected any of the 40 equipment available in Anchorage. Mr, Aber advised that he had not. ""---':�. ems_ .� �_�. - — - ---- -- - --,�•- -ter+ - _----� KENAI CITY COUNCIL, - REGULAR MEETING JUNE 16, 1977 - 0: 00 p.m. Page 0 A Councilman Whelan asked if the ether used graders encountered had more or loss hours on them than the one available through N . C , Machinery, Mr. Aber advised that, as a rule, they had substantially more hours. MOTION: Councilman Aekerly moved, seconded by Councilwoman Glick, for introduction of Ordinance No. 348-77, authorizing purchase of a used motorgrader and appropriating funds from federal revenue sharing for such purchase. to Motion passed unanimously by roll call veto.* *Councilman Ambarian was not present at the time of the question. 0-4: Resolution No. 77-81 -- Transfer of Monies - Council on Aging Budget Mayor Elson road Resolution No, 77-81 in its entirety. "Be it resolved that the following transfer of monies be made within the 1970-77 general fund budget; from Council on Aging - Repair and Maintenance Supplies - $140 and Professional Services - $275, to Council on Aging - Communielationa - $395 and Public Utilities - $20. The purpose of this resolution is to transfer funds within the Council on Aging budget in accordance with revised estimates of expenditures as reported to the !Office on Aging of the State of Alaska." MOTION: Councilman Whelan moved, seconded by Councilman Morgan, for adoption of Resolution No. 77-81, transfer of funds within the Council on Aging budget in the amount of $415 in accordance with revised estimates of expenditures as reported to the Office on Aging of the State of Alaska. Motion passed unanimously by roll call vote. 0-5: Resolution No. 77-82 - Transfer of Monies - Parke is Recreation Mayor Elson read Resolution No, 77-82, "Be it resolved that the following transfer of monies be made within the 1970-77 general fund budget, Prom Parks & Recreation - Repair and Maintenance Supplies - $450 and Operating Supplies - $788, to Parka h Recreation - Salaries s Wages - $1,238, The purpose of this resolution to to transfer funds within the Parke and Recreation Budget in order to employ additional temporary personnel for a summer recreation and maintenance program," Mr. Wise advised that, in order to make the Parks and Recreation Program operable, additional salaries would have to be provided for additional temporary employees, in accordance with memorandums received from the Parks and Recreation Director of which the Council had copies. MOTION: Councilman Morgan moved, seconded by Councilman Ackerly, for adoption Of Resolution No, 77-82, transfer of funds within the Parks and Recreation i W KENAI CITY COUNCIL - 1111,0ULAR M11,1+TING JUNE 16, 1977 - 0:00 p.m. Page 0 budget in the amount of $1,238 in order to employ additional temporary personnel for a summer recreation and maintenance program, Motion passed unanimously by roll call vote. 0-8: Resolution No. 77-83 - Transfer of Monies - Airport Land Fund Mayor Elson read Resolution No, 77-83, "Be it resolved by the Council of the City of Kenai, Alaska, that the following transfer of monies be made within the 1970-77 Airport Land Fund budget, From Airport Land Fund - Miseellaneous - $1,000 and Rentals - $2,000, to Airport Land Fund - Professional Services - $3,000. The purpose of this resolution is to transfer funds within the Airport Land Fund for appraisals and surveying." Mr. Wise advised that he would like to survey the area near the Katmai Motel and the area near the Old Well Site, and would like to use this year's funds for the surveying and appraisal necessary on these two parcels. MOTION: Councilman Morgan moved, seconded by Councilman Whelan, for adoption of Resolution No, 77-83, tranafor of funds within the Airport land Aund in the amount of $3,000 for appraisals and surveying. Motion passed by roll call vote, Voting yes: Glick, Morgan, Whelan, Ambarian and Elson, Abstaining: Ackorly, Mayor Elson asked Councilman Aekerly his reason for abstaining from the vote. Councilman Aekerly answered possible conflict of interest, G-7: Resolution No. 77-84- Transfer of Monies - Mayor Blum read Resolution No, 77-84, "Be it resolved by the Council of the City of Kenai, Alaska, that the following transfer of monies be made within the 1077-78 general fund budget, From Non -Departmental - Printing and Binding - $2,650, to Library - Printing and Binding - $2,850, The purpose of this resolution is to provide funding for the rental of a Xerox copying machine for the library for PY 1977-79." Mr, Wire stated that this resolution was a result of the budget hearing held in March, at which time it was the general consensus that the budget should be adjusted to provide for a coin -operated copying machine for the library to be used by the public, Administration feels that this resolution is appropriate at this time, Councilman Whelan stated that with the reserve In the printing and binding fund combined with the fact that the library could use it rather than the copying machine in the City Administrative Offices, he felt that the library should have a coin -operated copying machine available to the public, /r , E'" ��;1r�..=_,� .- . , r � ,i , - .n,- -rrf r ... rr• . __- ..-. - _ �. _ rr-...- - - - - - FwrY" KFNAI CITY COUNCIL - REGULAR MEETING JUNE 10, 1977 - 8:00 p.m. Page 7 f � With the income we would receive from usage of the machine by the general i public, the machine would pay for itself. fie further otated that he would recommend that any non -City copying be done on the coin-oporated machine rather than the machine located in the City Administration Offices. J MOTION: 1 Councilman Whelan moved► seconded by Councilman Aekorly, for adoption of Resolution No, 77-84, transfer of funds within the 1077-78 general fund budget, to provide funding for rental of a Xerox copying machine for the library. i MOTION, AMENDMENT: Councilman Morgan moved, seconded by Councilman Whelan, for amendment _- to the Resolution as follows: Second to last paragraph to read as follows: "The purpose of this resolution is to provide funding for the rental of a coin-oporated Xerox copying machine for the library for FY 1977-78." Councilman Ambarian asked if Xerox provided the lowest rates, Mr. Kinney advised that there were copying machines which we could rent at a lower rates however, we must consider the supplies we would have to purchase for a different type of machine. As the other City departments have Xerox copying machines, we will be able to save money by purchasing paper, toner, etc, in bulk for all the City machines, Councilman Ambarian asked if the library had funds to install the proper outlet for the machine, Mrs. DeForrest advised that this particular machine would utilize a 110 outlet and the library was equipped with a 220 outlet. Therefore, the library already had the proper outlet available. QUESTION: Motion as amended passed unanimously by roll call vote. t� QUESTION - MAIN MOTION: l f Passed unanimously by roll call vote. 0-8: Resolution No. 77-95 - Transfer of Monies - City Clerk Budget Mayor Elson read Resolution No. 77-85, "Be it resolved by the Council Of the City of Kenai, Alaska, that the following transfer of monies be made within the 1971-78 general fund budget, Prom Contingency - $1,940, to City Clerk - Salaries a Wages - $1,500, City Clerk - Accrued Leave - $100, City Clerk - Employee Benefits - $340. The purpose of this resolution is to transfer funds within the FY 1977-78 General Fund Budget to fund wage - negotiations for the City Clerk. MOTION: Councilman Whelan moved, seconded by Councilman Ackerly, for adoption of Resolution No. 77-85, transfer of funds within the 1977-78 general fund 1 KBNAI CITY COUNCIL - REOULAK MEETING JUNB 10, 1977 - 6:00 P.M. Pngo 8 budget in the amount of $1, 940 to fund wage negotiations for the City Clerk. Motion passed unanimously by roll call vote, 0-9: Resolution No, 77-86 - Transfer of Monies - City departments/Printing 4 Binding Mayor Risen read Resolution No. 77-86, "Be it resolved by the Council of the City of Kenai, Alaska, that the following transfer of monies be made within the 1076-77 general fund budget. From Non-departmental/Printing s Binding - $5,000, to Logislativo/Printing & Binding - $1,800, Finance/Printing A Binding - $500, Library/Printing s Binding - $305, Police/Printing & Binding - $270, Firo/Printing A Binding - $300, Public Works Administration/Printing a Binding - $1,466. The purpose of this resolution is to transfer funds among departments within the General Fund to reflect new estimates of duplicating costs." MOTION: Councilman Morgan moved, seconded by Councilman Ackerly, for adoption of Resolution No. 77-86, transfer of funds within the 1976-77 general fund budget in the amount of $5,000 to reflect new estimates of duplicating costs. Motion passed unanimously by roll call vote. 0-10: Resolution No. 77-87 - Transfer of Monies - Airport n & M Mayor Elson read Resolution No, 77-67, "Be it resolved by the Council of the City of Kenai, Alaska, that the following transfer of monies be made within the 1976-77 Airport A 4 M special revenue fund budget. From Airport O s M/Salaries - $9,000, to Airport O s M/Overtime - $9,000. The purpose of this resolution is to transfer monies within the Airport O i M Special Revenue Fund Budget to provide funding for overtime incurred - by Airport O 4 M employees." 0 . , MOTION: Councilman Ackerly moved, seconded by Councilwoman Glick, for adoption of Resolution No. 77-87, transfer of funds within the 1970-77 Airport A a M Special Revenue Fund Budget in the amount of $9,000 to provide funding for overtime incurred by Airport O s M employees. Motion passed unanimously by roil call vote, a-11: Mayor Elson read Resolution No, 77=-80. "Be it resolved by the Council of the City of Kenai, Alaska, that the following transfer of monies be made to within the 1076-77 general fund budget, From Public works Administration/ Salaries - $6,000 and Public works Street Maintenance/Overtime - $4,500, to Public Works Street Maintenance/Salaries - $10,600, The purpose of this resolution is to transfer funds between Public works Administration and Public KENAI CITY COUNCII, - REGULAR MEETING JUNE 16, 1977 - 6: 00 p.m. Pepe 9 I Works Street Maintenance, and within the Public Works Street Maintenance I! Department to provide funding for Public Works Street Maintenance salaries," MOTION: Councilwoman Glick moved, seconded by Councilman Aekorly, for adoption of Resolution No. 77-88, transfer of monies within the 1976-77 general fund budget in the amount of $10, 800 to provide funding for Public Works Street Maintenance salaries. Councilman Ambarian asked how this was created. Mr. Kinney advised that both this resolution and the preceding resolution are a result of budgeting one person full time in the Airport O a M fund and four persons full time in the Street Department. All overtime was in the street department budget. Rather than submitting an Ordinance transf , err! n fu nds betwee n en the general -. - fund a and the Airport O o M fun d, , these two resolutions eliminate the a -, ! problem and transfers from the general fund and the Airport O h M will be „ adjusted accordingly, QUESTION: Notion eased � p unanimously b roil call - Y Y vote. i � 1 G-12: Resolution No, 77-80 - Authorizing Use of FAA Housinor Area Lands I Mayor Elson read Resolution No. 77-89. "A resolution of the council of the City of Kenai, Alaska, authorizing use of FAA lands as sites of volunteer fire department circus and Chamber of Commerce Wally Byam Caravan. Whereas, Kenai Volunteer Fire Department desires to sponsor a circus June 27th - Juno 28th, and, Whereas, the Kenai Chamber of Commerce desires to sponsor a visit by the Wally Byam Caravan July 7th - 10th, and, Whereas, use of the FAA (Bluff) lands is suitable for such public service activities. Now, therefore, be it resolved that approval is hereby authorized for use of the FAA lands for the Kenai Volunteer Fire Department Circus to be held June 7 eP 2 th and 28th and the Kenai Chamber of Commerce Wally Byam Caravan July 7th - 10th." ` MOTION: Councilman Morgan moved, seconded by Councilwoman Glick, for adoption of Resolution No, 77-89, authorizing use of the FAA lands for the Kenai Volunteer Fire Department Circus to be held June 27th and 28th and the Kenai Chamber of Commerce Wally Byam Caravan July 7th - 10th. 3 ..! Councilman Ambarian asked who would be responsible for clean-up of _- the area after the two events. Mayor Elson advised the City Administration to make certain that the City had an agreement with the circus making them responsible for cleanup of the area and holding the City harmless from any suits, etc, He further advised that the Wally Byam Caravan will need to hook up to City water and that the City should make certain that this is available. k— ! w KENAI CITY COUNCIL. - REGULAR MEETING JUNE 16, 1977 - 6:00 p.m. a .,;- M Page 10 o� The Chamber of Commerce would be responsible for cleanup of the wally Byam Caravan. QUESTION: Motion passed unanimously by roll call vote. G-13: Resolution No. 77-90 - Rejecting Bids for Sr. Citizen Nutritional Program Mayor Elson read Resolution No. 77-90. "A resolution of the Council of the City of Kenai, Alaska, rejecting bids for the Senior Citizen Title VII Nutritional Program services. Whereas, the City of Kenai predicated its 1977-78 Title VII Senior Citizen Nutritional Program on a grant of $119, 000 from the Federal Government, and, Whereas, the grant authorized was considerably less - - $30,000, and, Whereas, while there are some possibilities of additional funding, the City of Kenai cannot gamble on the full amount being made available as requested, and, Whereas, bids received to service the program were based on specifications anticipating full year funding. Now, therefore, be it resolved by the Council of the City of Kenai that all bids opened June 7, 1977 for the Title VII Senior Citizen Nutritional Program Services are hereby rejected." MOTION: Councilman Morgan moved, seconded by Councilman Ambarian, for adoption of Resolution No. 77-90, rejecting bids opened June 7, 1977 for the Title VII Senior Citizen Nutritional Program services. MOTION, AMENDMENT: Councilman Ambarian moved, seconded by Councilwoman Glick, for amendment to the resolution as follows: Second paragraph to read r. as follows: "whereas, the grant authorized is $30, 000, considerably lose, and. to QUESTION: Motion as amended passed unanimously by roll call vote. QUESTION - MAIN MOTION: Motion passed unanimously by roll call vote. 0-14: Resolution No. 77-91 - Accepting Grant Funds/Sewerage Project C-020077 Mayor Bison read Resolution No. 77-91. "A resolutiom of the Council of the City of Kenai, Alaska, accepting grant funds in the amount of $55, 050 from the U. S. Environmental Protection Agency and $9,175 or 50% of the non-federal share of the total eligible project costs, whichever is less, from the State of Alaska, Department of Environmental Conservation for Step 1 of Kenai Sewerage Project C-020077. Whereas, the U. S. Environmental Protection Agency has offered to provide 75% funding of estimated eligible costs of $73,400 of the Citys Sewerage Project C-020077, Step 1, and, Whereas, the State of Alaska has offered to provide 12.507) funding of notimsted KENAI CITY COUNCII. - REGULAR MEETING JUNE 16, 1077 - 6:00 p.m. Page 11 eligible costs of $73,400 of this same project, and, Whereas, the State funds shall be limited to 50% of the non-federal share of the total eligible project cost. Now, therefore, be it resolved by the Council of the City of Kenai, Alaska, that the grant from the U . S . Environmental Protection Agency of $55,050, and that the grant of $9,175 or 50% of the non-federal share of the total eligible project costs, whichever is less, from the State of Alaska, Department of Environmental Conservation for Step 1 of Kenai Sewerage Project C-020077 is hereby accepted." MOTION: Councilman Ambarian moved, seconded by Councilman Aekerly, for adoption of Resolution No. 77-91, accepting the grant from the U . S . Environmental Protection Agency of $55,050, and the grant of $9,175 or 50% of the non-federal share of the total eligible project costs, whichever is less, from the State of Alaska, Department of Environmental Conservation for Step 1 of Kenai Sewerage Project C-020077. Councilman Morgan asked for clarification of the program. Mr. Wise stated that the program provided for repairing and upgrading of our sewer system, as well as design and a construction program. Mr. Wise further stated that the City would begin on the program as soon as the grants were accepted. Mayor Elson asked what the City's share in the cost of the program would be. Mr. Wise advised it would be approximately $12,000, QUESTION: Motion passed unanimously by roll call vote. 0-15: EPA Sewer Treatment Plant - Discussion Me. Williams advised that the City had been notified of 55 violations in their sewer treatment plant by EPA after an inspection made by them on February 23, 1977. Ms. Williams advised that she would like for the Council to discuss paying the fine levied in the amount of $6,000. Mayor Elson stated that he has written a letter to Senator Stevens office in this regard. Senator Steven's office feels that this fine is somewhat high and is researching the matter. Mayor Elson asked No. Williams if the Council could postpone responding to EPA's statement. Ms. Williams suggested that the Council submit a counter proposal as to what kind of penalty the City would be willing to pay. The City is clearly in violation. Councilman Whelan asked if the City was in violation of their own standards for the Sewer Treatment Plant. Mr, Aber advised that there were some definite problems in the Plant. The flows are over capacity, but the percentage of removal is very good. . 4... - ., •�... ...-�..� ..• w... .. 7,7 - J KENAI CITY COUNCIL - REGULAR MEETING JUNE 16, 1977 - 6: 00 p.m. Page 12 Councilman Morgan stated that he felt the amount of the penalty was extremely high. Ms. Williams advised that EPA could only site two examples of fines levied in this region - in the amounts of $250 and $750. Councilman Morgan stated that he felt the City should object to the penalty levied. Mr. Wise rotated that the current City permit is one-half of the national standard. He suggested that the Council make a counter -proposal of $100. Mr. Wise further stated that several points had been omitted by EPA in this matter - the Plant was approved by F,PA in 1973 and then found to be inadequate in 1974. Mayor Elson asked if payment of the penalty would be an admission of guilt on the City's part. Ms. Williams advised that it would be. but the City is clearly in violation. MOTION: Councilman Whelan moved, seconded by Councilman Ackerly, that the Council direct City Administration to make a counter offer of $100 and submit a letter to EPA objecting to the way this matter is being handled. Motion passed unanimously. , 0-16: Payment - Kenai Airport Masterplan Study Mr. Wise advised that the City had received a progress billing from Nixon/Parr, consultants on the Airport Master Plan Study, in the amount Of $6,850.61 for all work through April 30, 1977. Councilman Ackerly asked when the study would be completed. Mr. Wise advised that it should be complete this Fail and that representatives from the consulting firms would be in Kenai on July 14th to meet with the Airport Advisory Committee and any other interested parties. The Council is invited to attend that meeting. MOTION: Councilman Morgan moved, seconded by Councilman Ackerly, for approval of payment to Nixon/Farr in the amount of $6,859.61 for all work through April 30, 1977. Motion passed unanimously by roll call vote. 0-17: Lease of Airport Lands or Facilities - Avis Rent-A-Car Mr. Wise advised that this was simply a new lease for the space which Avis currently occupies in the Airport Terminal, as their lease had expired. MOTION: Councilman Morgan moved, seconded by Councilman Whelan, for approval Of lease of Counter Space #28 and eighteen square feet of cargo space in KENAI CITY COUNCIL - RPGULAR MEETING JUNE 16, 1977 - 6:00 p.m. Paso 13 1 ^ls the Kenai Municipal Airport Terminal by Avis Rent-A-Car for the period July 1, 1977 through June 30, 1978. Motion passed unanimously by roll call vote. 0-16: Resolution No. 77-92 - Transfer of Monies - Public Works Department Budaet Mayor Elson read Resolution No. 77-92. "Re it resolved by the Council of the City of Kenai, Alaska, that the following transfer of monies be made in the 1976-77 general fund budget. From Public works - Administration/ Salaries h Wages, to Public Works - Streets/Machinery 0 Aquipment. The purpose of this resolution is to transfer funds between Public Works Administration and Public Works Streets to provide the balance necessary to purchase a Sign Baking Machine. Ordinance No. 345-77 appropriated an additional $3,325 for this purchase." MOTION: Councilwoman Glick moved, seconded by Councilman Ackerly, for adoption of Resolution No. 77-92, transfer of funds within the 1976-77 general fund budget in the amount of $1,175, to transfer funds between Public Works Administration and Public Works Streets to provide the balance necessary to purchase a sign baking machine. 4 Motion passed unanimously by roll call vote. 0-19: Payment Estimate No. 8 - Interstate Company, Inc. - RDA Water Project No. 07-01-01684 Mr. Wise advised that the estimate was not complete as the change orders were not included; however, this did not effect the balance due. MOTION: Councilman Whelan moved, seconded by Councilman Ackerly, for approval of Payment Estimate No. 8 from Interstate Company, Inc. for FAA Water Project No. 07-01-01684, in the amount of $13, 500. Councilman Whelan asked for a report on the well. Mr. Aber stated that the testing has been completed. They are currently working on the designs so that the pumps can be ordered. The draw -down is somewhat more than they had anticipated. The driller is removing his equipment from the site at this time and once this to completed construction of the �= well house will be started. The electricians are almost through with the wiring. Councilman Whelan asked how the new well was affecting the other wells. Mr. Aber stated that it did not appear to be affecting the pressure. The pressure appears to be more in accordAnoe with the tides than with our wells. I' KENAI CITY COUNCIL, - REGULAIt MVIMING JUNE 10, 1977 - 0: 00 p.m. Page 14 Councilman Whelan asked the original completion date of the project. Mr. Aber stated that it was twelve months from award of the contract, making it sometime in October of this year. Mayor Elson asked if there was adequate time loft in the original contract for completion of the project. Mr. Aber advised that there was providing that not too much trouble was encountered with well No. 1. QUESTION: Motion passed unanimously by roll call vote. G-20: Recommendation of Appointment to Kenai Peninsula Borough Planning Commission Mayor Elson advised that the Kenai Planning Commission had recommended Betty thick for appointment to the Borough Planning Commission. Council voiced their approval of the appointment and Mrs. Glick accepted the appointment. H. REPORTS H-1: City Manager's Report City Manager's Report #20, a copy of which is attached, and therefore becomes an official part of the transcription of the proceedings of this meeting. In addition, Mr. Wise advised that the Title VII Hr. Citizen Nutritional Program would be suspended July 1, 1977 due to lack of funds. Mr. Wise also submitted Resolution No. 77-93 regarding the land sale held on July 15, 1977 for Council consideration. Mayor Elson read Resolution No. 77-93. "A resolution of the Council of the City of Kenai, Alaska, confirming the sale of Parcel No. 047-112-0600, Lot U, Block 2, Past Addition to Original Townsite of Kenai. Whereas, the Church of the New Covenant was the successful bidder for the above property at a public outcry auction hold July 15, 1977, and, Whereas, bidder elected to pay the purchase price in cash at the time of sale. Now, therefore, be it resolved by the Council of the City of Kenai, Alaska, that the sale of Lot 11, Block 2, East Addition, Original Townsite of Kenai, (Parcel No. 047-112-0000) for the price of seventy-five dollars ($75.00) paid in one lump sum at the time of sale, is hereby confirmed and the City Manager and City Clerk are hereby authorized to execute the appropriate contracts and documents to effectuate such sale. No structure shall be placed on this parcel unless combined with surrounding lands," MOTION: -- Councilman Morgan moved, seconded by Councilman Ackerly, for adoption of Resolution No, 77-93, confirming the sale of Lot it, Block 2, East Addition, Original Townsite of Kenai, (Parcel No. 047-112-0600) for $76.00, and authorizing the City Manager and City Clerk to execute the appropriate contracts and documents to effectuate such sale. ;J KENAI CITY COUNCIL - REGULAR MEETING JUNE 16, 1977 - 6:00 p.m. 0 W Motion passed unanimously by roll call vote. Pnge I5 Mr. Wise further advised that FDA had recalled the figures released regarding Round 2 of the Local Public Works Act. $4 billion 30 million has been allocated to the State, but the appropriations to cities and boroughs within the State were not available yet. j Councilman Ambarian asked about the contract the Parks and Recreation Program was negotiating with Kenai Central High School. Mr. Wise advised that this was a contract for use of the building and school grounds - there is no money involved. Councilman Morgan stated that he felt the City should build the auditorium and civic center if at all possible. At the time, it had to be rejected because the building could not be accepted and there were no funds Available for the project. Councilman Morgan asked that the City Manager investigate the possibility of constructing the facility. Councilman Ambarian voiced opposition to constructing this sort of building. He would rather see the monies utilized to build new City offices if there were funds available for construction. The cost of maintaining a civic center and auditorium would be very high. The Council further discussed the possibility of constructing an auditorium and civic center and discussed various means of funding such a project. Councilman Aekerly was appointed by Mayor Elson to work with Admin- istration in this pursuit. H-2: City Attorney's Report As the City Attorney was not present at this time, there was no report. H-3: Mayor's Report Mayor Elson advised that he wished to appoini Mr. Art Knight to the Council on Aging. Council concurred in the appointment. Mayor Elson asked if the Council would have objection to revising the regulations governing leave requests by Council employees (City Manager, City Attorney and City Clerk) , allowing them to take three days leave on the Mayor's signature alone and any leave exceeding three days on Council approval. There was no objection from the Council. to H-5: Finance Director's Report Mr. Kinney requested that a special meeting of the Council be called for June 29, 1977 for the purpose of approval of bills to be paid prior --t KBNAI CITY COUNCIL - ItEaULAII MEETINO JUNK 16, 1977 - 6:00 p.m. to the and of the 1076-77 fiscal your. Pape 16 There was no objection to calling a special meeting for this purpose; therefore, Mayor Elson called a special meeting of the City Council for June 20, 1077, 7:00 p.m., Kenai Public Safety Building. 11-0: Planning A Zoning Commission's Report No report. 1I-7: Kenai Peninsula Borough Assembly's Report Mayor Elson reported on the Borough Assembly meeting of .tune 14, 1077. Mr. Wise advised the Council that RCA contacted him regarding their proposed rate increase and will be meeting in his office at 8:00 a.m. tomorrow morning. Any interested parties are invited to attend. Mr. Wise further stated that he has written a letter to Mayor flonald Gilman indicating that some 200 names were deleted from the personal property tax rolls and asked that the deletions be checked and reported upon. Copies of the letter will be distributed to Council members. 1. PERSONS PRESENT NOT SCHEDULED TO BE HEARD I -I., Proposal to Lease Airport Bar a Cafe: Brian and Nanev Pock Mr. Peck stated that he was submitting this proposal for lease of the Airport nor it Cafe for the Couneil's review and consideration. Mr. Peck stated that the City had informed him that his now lease rate would be ; .87 per square foot and it would not be profitable to operate at that rate; therefore, he rejected the rate. The lease then expired and he was told that there was no further space available for expansion of the bar. Council disapproved the liquor license so it was necessary to close the bar and cafe. He requested that the Council review the proposal and advise him whether to close or reopen the bar and cafe. Mayor Elson asked if the back -monies would be paid if this proposal was approved. Mr. Peck stated that he would pay for the past fiscal year. Mr. Wise advised the Council that this proposal was received by him on May 24, 1977 but was not submitted to Council for review until this time at Mr. Pock's request. The Council acknowledged receipt of the proposal submitted by Mr. Peck and agreed to give it their consideration. ADJOURNMENT Thera being no further business of the Kenai City Council, Mayor Elson ry 1 RHOVI.Alt Mil 11NO KI;1VAl CITY COUNCIL- > > ;" JUNE 10, 1077 - 0:00 p.m. Page 17 adjourned tha meeting of Jun© 16, 1077 at 8:40 p,m, Respectfully submitted, A,lenn Horton, Acting City Clork `D r i CITY MANAGER'S REPORT MEETING OF JUNK; 15, 1977 1, Item 1 is a land sale, which in rolativoly short. It contains a limited number of proportion that were not sold at the last land sale and two additions: one to clear out assessmont foreclosure and the second is property which we cannot properly use and are making available at a reduced price to the Church of, tho Now Covenant. 2. 1 would like to have the Mayor and City Council present the police trophy to representatives of the Kenai Police Department with the hope that we will receive a little better press coverage. 3. This is a public hearing on Ordinance 336-77-78, which is the classification and pay plan ordinance. In this ordinance there will be amendments to the three Council omployeess the Manager, the Attorney and the City Clork. Councilman Whelan has asked that the implementation of the stop proposal be amended. You will have that proposal before you at the meeting. I would point out that the method that I proposed to the Council provides for a phase -in of the anniversary dates which, admittedly, is an unoquitablo system but a system nonetheless. The proposal by Councilman Whelan will also be somewhat inequitable. I have no objection to the proposed amendment in that I know of no precisely equitable way to implement the now program that will satisfy the needs and desires of all employees. 4. There will be a hearing on the working capital reserve ordinance. This was, of course, deleted from the combination working capital reserve and capital improvement ordinance at the last meeting. At the request of the Council, the level has boon changed to a $400,000 working capital reserve. The Finance Director will report during the public hearing as to the availability of that amount to be properly locked into a working capital reserve. S. Ordinance No. 343-77 - Setting Fees for Water and Sower Inspections. This was amended from the Administrative proposal during the introduction. I believe we have properly incorporated the language that the Council requested and I anticipate no further amendments. I do believe that there will be public input in that, of course, we are raising the cost of water and sower installations to the respective property owner whether it be ap individual property owner or developer. The point of the ordinance, howover, s to enable the water and sewer department to recover the costs that are created by the now tremendous amount of overtime. I would like to point out that in the event the ordinance is defeated or the scope of the fees are reduced, we will be in serious trouble simply because the water and sewer fund does not have the revenue to cover the typo of overtime that has already been generated during the past month. City Manager's Report Meeting of June 15, 1977 Page 2 6. Public Hearing on the ordinance for use of the City Parks. Admittedly, we are going to ask that the City Police Department inspect the parks for violations. Inspection is currently being performed by the Police Department as a matter of routine policing. Therefore, I do not feel that the additional burden will be too severe. 7. Sign Machine. This is an appropriation ordinance for the new sign machine and we do not foresee any objection to the ordinance. S. Library ordinance providing for additional revenue and approp- riations. 9. Persons Scheduled To Be Heard A. Kenai Fire Department. Within your packet is some data that I ha-4735--volopea relative to salaries of our Fire Department as of January lot and July lot and comparative salaries as of last year for the North Kenai Fire Department. I also have data from April and May on the actual manning of the fire station on a 24 hour basis. During my discussion with the Fire Department on Thursday morning, they agreed to withdraw their resignations and asked for an opportunity to present their greivances directly to the Council, which I agreed to and scheduled them under this item. I believe they will discuss with you the first two elements of their letter of resignations pay and staffing. I asked that they present thair third element directly to me inasmuch as it is my responsibility to supervise the leadership activities within the Fire Department. I believe that this resignation resulted in part, from the resignation of Captain Ivanoff, which was suLmitted on June 6th. I was finally able to talk with Captain Ivanoff on Thursday, June 9th, and I believe that I understand his problems, one being his salary. It must be noted that last year he received no salary increase, neither the salary increase in June nor the additional salary increase in January. This was based upon the formula devised by the Council at the time of the adoption of the budget. This year he will receive the same salary increase percentage wise as all other City employees. I believe there is a feeling in his mind, as well as in the minds of the other members of the department, that there is presently a lack of parody within the public safety division of the City. I feel that the situation arose particularly over the non -consideration of Captain Ivanoff when the other changes were made within the public safety area. It is my opinion that the members of the Fire Department are more upset over Captain Ivanoff's situation than their own, Captain Ivanoff has withdrawn his resignation. 10. Correspondence We received a letter from Copper Valley protesting and asking for reconsideration of the award of the dock and abutting land lease ^ to Salamatof Seafoods. --_i City Manager's Report Meeting of June 15, 1977 Page 3 1 I We also received correspondence requesting additional street lights. 12. Old Business This item is ordinance No. 341, which is the capital improvement fund, involving dedication of proceeds of land sales and special income. This was tabled at the last meeting, awaiting information from the State as to the passage of Senate Bill No. 37, which we have verified has passed both Houses of the Legislature but we have not yet been able to determine whether or not it has been signed by the Governor. If we have confirmation of the Governor's signature, I would recommend that it be considered by the Council appropriately at the meeting. If not, I would suggest that it be further deferred until we determine the status of the actual legislation. 13. This is an ordinance declaring an emergency to provide funding for repair and replacement of pumps at the lift stations. 14. This is an ordinance relative to the Title III Senior Citizens Program budget. This is a reduced budget from what was initially proposed in making application for state and federal funding. Apparently the State has simply run out of money and is not able at this time to fund either Title III or Title VII programs as requested. This budget has been cut by the State and in turn we had to completely reevaluate the budget and make significant reductions. At this time, we have separated Title III and Title VII and they will stand independently. I must respond to the State prior to the meeting Wednesday night and will make a telephone poll Monday to determine whether or not the Council will accept the lower grant offer , of some $26,500, which is several dollars less than what we requested. The budget will permit us, as presented, to operate the Council on Aging Program, Title III, this next fiscal year. 15. This is an ordinance of two parts: (1) requesting special consideration to purchase directly and without competitive bid, items of used equipment from a single source; (2) to appropriate specific funds out of the revenue sharing account to enable the City to purchase a used grader offered for sale by N. C. Equipment. 16. A resolution providing a transfer from the 1977-78 budget to fully fund the recently agreed upon salary and appropriate benefits for the City Clerk. 17. A resolution providing for the coin -operated xerox machine in the library which will be an amendment to the 77-78 budget. There are specific comments made as to the primary source for copies for the community, restricting them from the actual city administrative operation with the exception of copies requiring reduction and providing for the $.50 per copy fee. t City Manager's Report Meeting of Juno 15, 1977 Page 4 18. A resolution to reject bids on the Senior Citizens' Nutritional Program. We have found that with rostr.ictiona on this program, an well as on Title III, we must sharply revamp the program and cannot use those bids. We are now pursuing the possibility of having the program catered by one of the major rostaurantn in the City. The program, even with the cut -back in fundn, has boon requested by the State to operate, as is, for the next three months, with the hope that there will be additional federal funding available in October. We will present a budget to you for the nutritional program as soon as we have data available. However, to clear the record, we need to reject these bids for the labor and providing of service at Fort Kenay for the program. 19. A resolution accepting an EPA Step One Grant award, which is 75% of the actual coat. we have received word of the award, but at this time have not received the official notification. I have been informed that in the event we do not got it today or tomorrow we can request a telegram which will give us the written confirmation. 20. A resolution for the State share of the Step Ono tyrant program. This, in fact, was our first official notification that the State and/or Federal grant had baon made. We need to accept this grant offer. 21. A resolution which will be blank in regard to the firm to be t: named, providing for the engineering consultant on the several projects the City has funded in roads, water and sower, local service roads and trails, etc. Attached to this will be a spread shoot listing every project, the individual estimates as to the project, the City's estimates as to the project, and the individual rates for the firms. I hope that we can make a determination as to which firm is to be retained. 22. A resolution requesting transfer of certain funds within the Airport land fund which are available to professional services so we will have the ability to continue with appraisal and surveying in the Airport land area. 23. A resolution requesting transfer of monies to a special account to enable us to relocate the Citv offices from the south end of the terminal to the north end. r 24. A resolution providine for transfers of parks and recreation monies in the current budget so that we can have the funds in the appropriate accounts and initiate a program for this year. Please note that there are a series of memorandums from Mark Brown, whom I have retained as Director of Parks and Recreation for this season, regarding the needs of his programs in parks and recreation. ! I 25. A resolution making administrative transfer of funds in the Council on Aging, which is the Title III Senior Citizens Program to balance our books. City Manager's Report Meeting of June 15, 1977 Page 5 26. The lease proposal for the dock and abutting lands between the City and Salamatof Seafoods. 27. The lease of terminal space for Avis Rent -a -Car, which is actually a renewal for their existing lease. This lease is for one year arid, therefore, must be approved by the Council each year. 29. A resolution approving the Volunteer Fire Department circus to be held June 27 and 28, and the Chamber of Commerce -sponsored Wally Synam Travel Caravan on July 7 - 10# both requesting use of the FAA site on the Spur Highway. 29. A payment to the Airport consultants. we made a payment at the last meeting, but did not process it properly as we expected. We actually lost it for one meeting and, therefore, this is not a double billing or redundancy. The second meeting of the month is the time we had agreed upon to process their bills. ----------- John E. Wise, City Manager J JW/eh