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HomeMy WebLinkAbout1977-09-27 Council Minutes - Special MeetingAGENDA SPECIAL MEETING - KENAI CITY COUNCIL SEPTEMBER 27, 1977 - 7: 00 P.M. KENAI PUBLIC SAFETY BUILDING PLEDGE OF ALLEGIANCE A. ROLL CALL AGENDA APPROVAL B. OLD BUSINESS 1. Lease of Airport Cafe and Lounge C . NEW BUSINESS 1. Ordinance 360-77, Establishing a Capital Project Fund entitled "Fire Reservoir" and increasing estimated revenues and appropriations in the amount of $1,439,790. 2. Resolution 77-107, Accepting Gant funds in the amount of $1,250,000 from the Economic Development Administration as authorized by the Local Public Works Act for the purpose of constructing a 3.0 million gallon potable water reservoir. 3. Resolution 77-108, accepting Grant funds in the amount of $94,805 or 25% of the total project cost, whichever to less, from the State of Alaska, Department of Environmental Conservation, for the construction of a 3.0 million gallon potable water reservoir. 4. Resolution 77-109, authorizing as a special exception the receipt of bids for the construction of water and sewer lines in part to be funded by Local - Public Works monies, State of Alaska/Department of Environmental Conservation and the City of Kenai. 7 - i 5. Resolution 77-110, authorizing receipt of bids for the construction of a 3.0 million gallon covered potable water reservoir. ADJOURNMENT C KENAI CITY COUNCIL - SPECIAL MEETING SEPTEMBER 27, 1977 - 7:00 P.M. KENAI PUBLIC SAFETY BUILDING MAYOR JAMES A. ELSON PRESIDING PLEDGE OF ALLEGIANCE A. ROLL CALL Present: Edward Ambarian, Tom Ackerly, Retty Glick, Dan Whelan, Walter Sweet and James Elson Absent: Richard Morgan AGENDA APPROVAL Approved as submitted. B. OLD BUSINESS B-b Lease of Airport Cafe and Lounge Mayor Elson inquired of the Committee if Mr. Bernard of the Black Angus R Chain, were free to offer his proposed application and if so, there should be guidelines that he should be advised of to follow. KENAI CITY COUNCIL - SPECIAL MEETING Councilman Whelan reported as follows: "The committee held a meeting at 6 p.m. Friday and asked all interested applicants to be present. Present besides ourselves was the City Manager, City Attorney, Mr. Butters, Mr. Eitel and Mrs. Jensen. Mr. Kilfoil and Mr. Peck and Mr. Schweitzer were not present and for some reason, Mrs. Jensen left before the Committee had an opportunity to interview her. Mr. Eitel and Mr. Butters presented a fairly complete proposal except that they, still had not been given a lease application or a floor plan showing square footage nor had they been shown that part of the cafe which is locked. Although we understood that they had requested this prior to and at last Wednesday evening's meeting. Therefore, on Friday evening we asked the City Manager to give them a drawing of the i floor plans, several lease applications and show them around. After considerable discussion we gave them until Monday morning to prepare a more formalized application which would include proposed lease payments based on square footage, a security deposit of $1,000 to be forfeited if they would not perform, proposed remodeling, hours of operation, references and financial statements. At that time after review and discussion, Mr. Ritel and Mr. Butters stated they would need the entire area now occupied by the cafe and bar, the City Manager's office, City Clerk i City Attorney's areas and the Finance Department (i.e. rooms 1-6) . K: I , r 2 SPECIAL MEETING 9-27-77 page 2 We asked the City Manager if he had any problems with that and he stated that Polar Airways only had made inquiries regarding rooms I and 2 and that he personally had no problems. Therefore, we told Mr. EiteI and Mr. Butters to include rooms 1 and 2 in the application presented Monday morning. On Monday morning Tom and I met with the City Attorney and at that time received a formal application from ACI together with a security deposit check in the amount of $1,000. Also, at that time the City Attorney presented us with correspondence between the City Manager and Polar Airways which she had found in the lease files that morning. We knew nothing of this correspondence at last Wednesday's meeting nor at our meeting last Friday when we asked them to make application including rooms I and 2. Correspondence stated that "in essence rooms 1 and 2 would be reserved for Polar". Now, I believe If Polar gets the lease we will have a problem inasmuch as we asked ACI to spend considerable time in preparing a more detailed application over the weekend and make a $1,000 deposit and also Tom and I have spent considerable time in meetings and reviewing the applications. Conversely, we have a problem both legally and morally if Polar does not get its lease. Also, it looks lik this will again delay consumating a lease for the cafe and bar. Additionally, we understand that just today Polar stated that they want to move ahead with their option. Two more applicants are present tonight that Tom and I did not interview and request be here tonight. Originally, Tom and I had planned to present to Council a proposed lease for your consideration and we under- stood this was one of the prime reasons for this meeting. Our main concern was not only to get the bar and cafe operating immediately but with an operator that could perform as well. Under these circumstances, Tom and I feel we can no longer serve on the committee and to do so would not only be a waste f of our time but a continued embarassment to ourselves and to the City. In the r future, the Council and the City Manager should clearly define those areas I where there may be disagreement as to who to responsible." Councilman Aekerly concurred with comments of Councilman Whelan. Councilman Ambarian stated that the City could not proceed without clarification of the Polar request. ; Councilman Sweet stated he felt that the City was putting stumbling blocks In the path of progress and asked the City Attorney if the City were liable ! if Council decided to lease rooms 1 and 2 to ACI. City Attorney Williams advised that Polar may wish to take legal action as it might be their feelings that the space had been reserved for their use. Councilman Ambarian stated it was the responsibility of Council to determine which lease would benefit the City greater and perhaps the Council would have good cause to turn down the Polar proposal because of indefinite terms of lease, etc. Council, at this time, heard from prospective applicants. Mr. Bill Schweitzer stated that he proposed to lease the existing facilities and would not require the additional spaces now occupied by City Hall. I - -- - I Y. 1. SPECIAL MEETING 9-27-77 Page 3 Mr. Bernard, Black Angus, stated he wished to put a steak house in the airport facility and would lease 1,690 square feet at $1.00/sq. ft. and would pay the City 10% of liquor sales and 5% of food sales on all gross sales over $30, 000. Cost of all alterations would be borne solely by the lessee. MOTION: Councilman Sweet moved, seconded by councilwoman Glick, that the City Council call a Special meeting for Friday evening and at that time have formal lease applications for Council review submitted by Polar Airways, ACI, Black Angus and Bill Schweitzer. The problem currently existing between Polar and ACI with regard to request for rooms I and 2 should be resolved in such a way and without further legal action so that the City would be relieved of the possibility of a lawsuit and further that a decision be made Friday night based on the proposals of the companies aforementioned. Mr. Eitel, ACI, stated that he had been involved in this matter for some time and would request a decision be made by Council tonight and if it were to be extended past tonight, Mr. Eitel would formally withdraw his application. Mayor Elson commented that he felt the decision on the commitment of the operation in the Airport Terminal could not be taken lightly. Mayor Elson further stated that it was the responsibility of the Council to make the best possible decision based solely on the beneficial affect to the City and the decision would be made based on whichever app':jant would meet these requirements. Councilman Whelan stated that the Committee, on Friday evening, had felt they had viewed all applications and :t appeared that ACI would give the best return to the City for the money. With this information, the Committee was prepared to make recommendation based on findings Friday night. Councilman Ambarian asked Mr. Eitel H he would consider waiting 24 hours for a decision from Council. Mr. Eitel advised he would not be willing to wait an additional 24 hours and requested a decision be made at the meeting tonight. MOTION: Councilman Ambarian moved, seconded by Councilman Sweet, to amend the order of business and take up Old Business as the last item on the agenda. Council unanimously concurred. C . NEW BUSINESS C-I- Ordinance 360-77 - "Fire Reservoir" Mayor Elson read Ordinance 360-77 by title only. "An ordinance of the In I e - - SPECIAL MEETING 9-27-77 Page 4 Council of the City of Kenai estalbishing a Capital Project Fund entitled "Fire Reservoir" and increasing estimated revenues and appropriations in A the amount of 4.1,439,790." J MOTION: Councilman Sweet moved, seconded by Councilwoman Glick, for introduction of Ordinance 360-77, establishing a capital project fund entitled "Fire Reservoir" and increasing estimated revenues and appropriations in the amount of $1,439,790. Motion passed unanimously by roll call vote. C-2: Resolution 77-107 - Accepting Grant Funds for Construction of Reservoir Mayor Elson read Resolution 77-107 by title only. "A resolution of the Council of the City of Kenai accepting Grant funds in the amount of $1, 250, 000 from the Economic Development Administration as authorized by the Local Public Works Act for the purpose of constructing a 3.0 million gallon potable water reservoir." MOTION: Councilman Sweet moved, seconded by Councilman Ackerly, for adoption of Resolution 77-107, accepting grant funds in the amount of $1,250,000 from EDA for construction of a reservoir. 44 Motion passed unanimously by roll call vote. C-3: Resolution 77-108 - Accepting Grant Funds from State of Alaska for Construction of Reservoir. Mayor Elson read Resolution 77-108 by title only. "A resolution of the Council of the City of Kenai accepting grant funds in the amount of $94, 895 or 25% of the total project cost, whichever is less, from the State of Alaska, Department of Environmental Conservation, for the construction of a 3.0 million gallon potable water reservoir." MOTION: Councilman Ackelry moved, seconded by Councilwoman Glick, ' for adoption of Resolution 77-108, accepting grant funds from the State of Alaska in the amount of $94,895 or 25% of the total project cost,whichever is less. Motion passed unanimously by roll call vote. C-4: Resolution 77-109 - Receipt of bids for construction of water/sewer lines Mayor Elson read Resolution 77-109 by title only. "A resolution of the Council of the City of Kenai authorizing as a special exception the receipt of bids for construction of water and sewer lines in part to be funded by Local Public Yorks monies, State of Alaska/Department of Environmental Conservation and the City of Kenai, Alaska." ■ 7 { SPECIAL MEETING 9-27-77 Page 5 MOTION Councilman Sweet moved, seconded by Councilman Ackerly, for adoption of { Resolution 77-109 receipt of bids for construction of water/sewer lines. Motion passed unanimously by roll call vote. C-5: Resolution 77-UO - receipt of bids for construction of 3.0 million gallon reservoir ry Mayor Elson read Resolution 77-UO by title only. "A resolution of the Council of the City of Kenai authorizing receipt of bids for the construction of a 3.0 million gallon covered potable water reservoir." MOTION: Councilman Whelan moved, seconded by Councilman Ambarlan, for adoption of Resolution 77-110, authorizing receipt of bids for construction of a 3.0 million gallon covered potable water reservoir. Motion passedunanimously by roll call vote. y OLD BUSINESS B-L Lease of Airport Cafe and Lounge .� MOTION: Councilman Ambarian moved, seconded by Councilman Sweet, to reconvene the Special Meeting of the Kenai City Council at 7 p.m., Wednesday, r September 28, for the purpose of discussing lease of the airport cafe and lounge 1 and Council also directs Administration to contact Polar Airways to be ; represented at the meeting for discussion of their lease. i Motion passed unanimously by roll can vote. I The meeting adjourned at 9:30 p.m. , Respectfully submitted, r ` Sfie C. Peter, City Clerk o y