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HomeMy WebLinkAbout1976-03-03 Council Minutes1 `= - l�I Kn AGENDA REGULAR MEETING - KENAI CITY COUNCIL MARCH 3, 1078 - 8: 00 P.M. PUBLIC SAFETY BUILDING PLEDGE OF ALLEGIANCE 1 A. ROLL CALL I AGENDA APPROVAL I B. PUBLIC HEARINGS 1. Ordinance 280-78 - Amending Airport Land Fund, a160 .Fund a General Fund 1 2. Ordinance 289-76 - Protection of Water Resources 2 3. 4. C. PERSONS PRESENT SCHEDULED TO RE HEARD 1. Mr. Bill Rodgers, Jet Alaska 'Delete 3 2. Chester Cone and Attorney James B. Fisher - RRt Gravel Pit Permit 4 3. D. MINUTES I. Minutes of the Regular Meeting of February 18. 1978 5 B. CORRESPONDENCE F. OLD BUSINESS I. Council Selection of now Council member 5 2. Firs Department Mutual Aid Agreement - Kenai/North Kenai/Soldotna 5 3. Los" of City Owned Lands - Peninsula Oilers 6 f 4. Resolution 78-9 - Borough Assembly passing nrdinance Apnrovina nro . 289-70 0 1 5. i 0. NEW BUSINESS ~ 1. Bills to be paid - bills to be ratified 9 2. Ordinance 200-78 - Adopting 1070 Kenai tlunieipal Airport Regulations 10 3. Resolution 78-10 - Off Systems Road Funding 30 ' 4. Resolution 78-11- Construction of Gas Pipeline, *forth Mope to "JV1Rt•i 11 5. Consent to Sublease - WiHiam A.,M!aW111i01ns to Ron. Swanson 11 8. •i,iNii�of'Ctty'Miiiid isnds - 8rlarts.'a�td+Nsridy`e: •Peck � 11x, 7. Sublease of Parish House to Russlan Orthodox Church . S. Hasdlution No. 70.12 - Supporting SSSR 207, 50% Stits funding for W/P ,Projeatf 13► 9. Resolution No. 70-13 - Supporting SB 502, Authorfj!gg Bond Issue of 11$7,0000400113 10. Assignment of Lease - Thomas R. a Gail Anp Smith to National Rank of Alaska 14 u. Lease of City owned Lands - Northern Aircraft Sales a Service 14 ; H. REPORTS 1. W91anager's Rsvio0 61 2. City Attorney's Report 1 3. A*9f1s Report few � 4. CWClsrk's Report 1i5 6.Director's Report : ;; •!6 61 Planning i•Zonitlg.Commission's Report 7. tcsnai Peninsula i3orou�h Assembly's Relwrt� • •15 I. PERSON11 ORESENTwor SCHEDULED TO BZ HEARD ; Y 1, Mr. Gsorgs'Nev"ke :18 2. Ms. 9Hsx Sweae6ssn •18 S. Councilman Waltwl$W st 16 r• , CA t n M KENAI CITY COUNCIL - REGULAR MEETING MARCH 3, 1976 - 8: 00 P.M. KENAI PUBLIC SAFETY BUILDING MAYOR JAMES E . ELSON PRESIDING PLEDGE OF ALLEGIANCE. A. ROLL CALL Present: Richard Morgan, Edward Ambarian, Tom Ackerly, A. L. Hudson, Walter Sweet and James Elson Absent: None AGENDA APPROVAL Council unanimously approved the following; additions: C-2: Chester Cone and Attorney James E . Fisher - RE: Gravel Pit Application G-8: Resolution No. 70-12 - Supporting SSSB 267, 60% State Funding for W/S Projects 0-9: Resolution No. 76-13 - Supporting SB 582, Authorizing Bond Issue of $37,000,000 G-10: Assignment of Lease - Thomas R . a Gail Ann Smith to National Bank of Alaska 0-11: Lease of City Owned Lands - Northern Aircraft Sales & Service Administration requested, with Council consent, the following items be deleted: C-1: Mr. Bill Rodgers, Jet Alaska 0-5: Consent to Sublease - William A. McWilliams to Ron Swanson 0-10: Assignment of Lease •- Thomas R . a Gail Ann Smith to National Bank of Alaska B. PUBLIC HEARINGS B-1: Ordinance 288-76 - Amending Airport Land Fund, M&O Fund a General Fund Mayor Elson read the title of Ordinance 288-70, "An Ordinance of the City of Kenai, Alaska, amending the 1975-70 Budget for the Airport Land Fund, Airport Maintenance and Operation Fund, and the General Fund." Mayor Elson asked for further explanation from City Administration. Mr. Lynn advised that a decision had been made to make a contribution to the Care Center which made It necessary for certain changes to be made to the budget. The General Fund makes a donation to the Care Center, the Care Center would pay rent of $9,243 to the Land Fund and the Land Fund would then make a contribution to the Airport Maintenance and Operation Fund. Mayor Elson opened the meeting to the public for their input. There being no comment from the public, Mayor Elson returned the hearing to the Council table. r, KENAI CITY COUNCIL, REGULAR MEETING, MARCIi 3, 1976 PAGE 2 MOTION: Councilman Ambarian moved, seconded by Councilman Sweet, for the adoption of Ordinance No. 288-76, Amending the 1975-76 budget for the Airport Land Fund, Airport Maintenance and Operation Fund and the General Fund. Motion passed by roll call vote. Voting yes; Morgan, Ambarian, Ackerly, Sweet and Elson. Voting no; Hudson. B-2: Ordinance No. 289-76 - Protection of Water Resources Mr. Lynn stated that this ordinance would enable the City to protect its water resources in the Beaver Creek aquifer. A municipality may adopt ordinances to protect its water supply and watershed and may enforce them outside its boundaries. Before this power may be excercised within the boundaries of another municipality, the approval of that municipality must be given by ordinance. The area as shown in the map distributed by Administration encompasses an area of 50 square miles. This area was selected per recommendation by the USGS . The USGS al&a feels that Collier's well is in the same aquifer but would not affect the area we are in. �I Mayor Elson inquired if the boundaries as shown on the map encompass any oil fields? Mr. Aber advised that as far as he knew,there were none. 0 Mayor Elson opened the hearing to the public. Mr. George Navarre asked what type of restrictions were included in this ordinance. Mr. Lynn advised that the ordinance stated that'it shall be unlawful for any person or other entity to dig, build, drive, drill or in any manner construct a well or otherwise appropriate water from beneath the surface in the 50 mile radius as shown on the map. Furthermore, consent shall not be given unless the Council of the City of Kenai has approved such appropriation. They shall not approve the appropriation if it is likely to have a substantial detrimental effect on the City's water supply" Mr. Navarre also inquired if this area were involving any private property -- existing wells could be regulated by the State and Mr. Navarre questioned the legality. He asked if the City had been given these powers? Mr. Navarre stated he would like to see some representatives from the Division of Water Resources meet with the Council before a final decision was made. Mayor Elson advised that this was initially approached to get additional water rights. It was suggested that the City follow procedure being taken. The State will be the over -seeing body as to whether a permit to issued. There being no further comment from the public, Mayor Elson returned the hearing to the Council table. r KENAI CITY COUNCIL, REGULAR MEETING, MARCH 3, 1976 PAGE 3 MOTION: Councilman Hudson moved, seconded by Councilman Ambarian, for adoption of Ordinance No. 289-76, an ordinance protecting the water supply and watershed of the City of Kenai, Alaska, and providing for enforcement of the ordinance outside the City limits. Mayor Elson asked Administration if the City had a legal boundary description? Mr. Lynn advised that it would be the general area as indicated on the map which could be attached to the Ordinance. MOTION: Councilman Morgan moved that the matter of Ordinance 289-76 be tabled until such time the Administration has a proper legal description of the area in question. Motion died for lack of second. MOTION: Councilman Sweet moved, seconded by Councilman Ackerly, that the motion be amended to delete the description of the boundaries as included in Ordinance 289-76 and to incorporate into the Ordinance the attachment of the map outlining the 50 mile boudary and written description of the boundaries as developed from a land map. Mayor Elson stated that this authority is very significant but until such time a Ugal description is developed, it was his opinion that the matter be tabled. Janis Williams, City Attorney, advised that it was best to have a legal description but as pointed out by the Public Works Director, it would be very difficult to provide the actual legal description on this particular portion of land as the boundaries of land were so irregular. Councilman Hudson inquired as to why this land was not identified as Administration had been so directed at the last meeting? Mr. Lynn advised that in order to get an accurate description, it would require a survey. Councilman Sweet inquired if a description could be developed from a land map without a survey and Mr. Aber advised that it could. QUESTION - AMENDMENT Motion passed unanimously by roll call vote. QUESTION Motion passed by roll call vote. Voting yes; Ambarian, Ackerly, Sweet and Hudson. Voting no; Morgan and Elson. C. PERSONS PRESENT SCHEDULED TO BE HEARD C-1: Mr. Bill Rodgers - Jet Alaska Delete i i KENAI CITY COUNCIL, REGULAR MEETING, MARCH 3, 1976 PAGE 4 r-- C-2: Chester Cone and Attorney James E , Fisher, R, Gravel Pit Permit Mr. Fisher, representing Mr. Cone, requested that Council act upon Mr. Cone's application which has been pending since April, 1975. Mr. Cone had been in agree- ment to wait until the regulations had been adopted and was under the impression that the Council would take his application under consideration and resolve the matter. Mr. Fisher further stated that he believed Mr. Cone's application complied substantially if not entirely with the regulations. Mr. Cone would like the matter decided prior to the upcoming construction season. r� Mayor Elson advised that it was his suggestion that City Administration review the application as submitted by Mr. Cone and verify that it complies with the Ordinance adopting the regulations for Extraction of Natural Resources. If any necessary corrections or additions were required, they could be made at this time and then the application presented to the Kenai Planning Commission for their perusal and at the Council meeting of March 17th, the Board of Adjustment will convene to make a final decision in the matter. Councilman Morgan asked if it was necessary for the Council to act in the capacity of a Board of Adjustment and wouldn't the matter be resolved before the Planning Commission? City Attorney, Janis Williams, advised Council that the now regulations will apply hereafter and the Planning Commission would just be acting as a review board to determine if the applications complied with the regulations. The matter of Mr. Cone's application could be resolved by a Board of Adjustment and does not necessarily have to go back to the Planning Commission. Councilman Ambarian stated that the new regulations required a definite development plan which is to be presented to the Planning Commission and if this procedure is not followed with regard to Mr. Cone'a application, the City will not be following the regulations. Mayor Elson stated that the question before Council is whether or not to adjourn and reconvene as a Board of Adjustment or schedule it for the next meeting of the Council. MOTION: Councilman Ambarian moved, ascended by Councilman Hudson, that Mr. Cone complete his application for gravel pit to comply with the regulations as set out in Borough Ordinance 76-4. The application will then be presented to the Kenai Planning Commission and upon their approval, the Kenai City Council will meet as a Board of Adjustment at the regular meeting of March 17th. Motion passed by roll call vote. Voting yes; Morgan Ambarian, Ackerly, Hudson and Eason. Voting no; Sweet. I j � 1 I I i I KENAI CITY COUNCIL, REGULAR MEETING, MARCH 3, 1976 PAGE b Mayor Elson instructed Mr. Cone to moot with City Administratior. and review his y� application and verify that it meets within the regulations and present his application and development plan to the Kenai Planning Commisnion at their next regular meeting, The Council will then act as a Board of Adjustment on the appli- cation on March 17th. D . MINUTES D-1: Minutes of the Regular Meeting of February 18, 1976 There being no additions or corrections, the minutes of the regular meeting of February 18, 1976 stood approved as distributed. E. CORRESPONDENCE None F . OLD BUSINESS F-1: Council Selection of New Council Member Mayor Elson declared the meeting open for nominations and asked that Vice Mayor Morgan assume the chair. Mayor Elson then asked for immediate recognition. MOTION: Mayor James Elson moved, seconded by Councilman Ambarian, for the nomination of Mr. Dan Whelan and further requested that the nominations be closed and a unanimous ballot be made for the selection of Mr. Whelan as Councilman for the City of Kenai. Mayor Elson inquired as to Mr. Whelan's willingness to disclose his finances per State of Alaska and Mr. Whelan so agreed. QUESTION: Motion passed unanimously by roll call vote. Mayor Elson instructed the Clerk to administer the Oath of Office to Mr. Whelan. Mr. Whelan was then seated as Councilman. F-2: ,Fire nevertment Mutual Aid Agreeaent - Kenai/North Kenai/Soldotns Mr. Lynn explained that there had been some question as to certain areas contained In the Mutual Aid Agreement and the City had verified from our insurance carrier that the City would be covered (with regard to item 8 on page 2 of the agreement) . KENAI CITY COUNCIL, REGULAR MEETING, MARCH 3, 1976 PAGE 6 MOTION: Councilman Ambarian moved that the matter of the Dire Department Mutual Aid Agreement be tabled until Cmincil has been provided with the amended copies of the Agreement. Motion died for lack of second. Mr. Lynn advised that no amendments were made but there might be some areas of consideration which Council might wish to review for changes. MOTION: Councilman Ambarian moved, seconded by Councilman Hudson, for the tabling of Fire Department Mutual Aid Agreement, Kenai/North Kenai/Soldotna. Motion passed by roll call vote. Voting yes; Ambarian, Ackorly, Hudson, Whelan and Elson. Voting no; Morgan and Sweet. F-3: Lease of City Owned Lands - Peninsula Oilers Mr. Lynn advised that the area in question is adjacent to the 40 acres recently sold by the City. This area had boon designated by the Council as recreational land. The lease is for SS years and the Oilers will pay assessments. Mr. Lynn did recommended an amendment to Schedule A -- on the 1976 Development Plan Item (1) should read "A minimum 3-4" water line.... "and this item also should be listed under the 1977 Development Plan. Councilman Sweet asked it the Oilers should change from a nonprofit organization , and go up for sale, what would happen to the existing lease with the City? Janis Williams, City Attorney, advised that there would have to be an assignment to the successor corporation which would require City of Kenai Council consent. Councilman Ambarian stated he did not agree with the length of lease. Councilman Ambarkm further stated that the lease should be in terms of S year plan and should show the financial situation of the Oilers. The City should also require engineer drawings, exact development, etc. for the proposed plan. Mayor Elson stated that the purpose of the City leasing this property to the Oilers is not primarily to fulfil needs of Oilers but it was his concept that a recreational facility would be developed that the City is not in a position financially to construct at this time. Mayor Elson stated there were some points contained within the lease i that he questioned -- under the 1976 Plan, the filers diamond planted but the Little League fields not rototilled until 1977. The City will receive much pressure for the use of the Little League facilities and as this is basically like any other lease, could the Oilers adjust the plan so that the youth of the community will benefit at an earlier stage? KENAI CITY COUNCIL, REGULAR MEETING, MARCH 3, 1976 PAGE 7 j. Mr. Robert Peterkin, representing the Oilers, advised that a lot of work is involved and as the Oilers are a non-profit organization they have only volunteer labor. The Oilers would like to advance the Little League facilities at an earlier stage but it is going to be a very close tight fit in order to get the Oilers field In for the 1977 season. Mayor Elson stated that according to the Development Plan, the baok-stops won't go in until 1978 -- if this is the case, they won't even be able to be used as a practice field until that time. Mr. Peterkin advised the Council that the Oilers will need the 1977 season in order to finance further developments. Council voiced some concern with regard to the usage of the facility and who would regulate such usage, how much public access would be permitted, etc. Mr. Peterkin advised that the regulation of usage by the public would pertain to the Oiler's diamond. Councilman Hudson asked that the proposed map of the plan of the facilities be put up for Council review. Mr. Peterkin complied and also advised the Council that the only fenced area would be around the snack bar, etc. There would be no fencing around the parking areas but small barricades would be placed as gates to control the flow of traffic. Councilman Hudson inquired as to a matter that had been discussed in the past of moving the football field from the FAA housing area -- and would such a move phase the FAA fields out? Mr. Peterkin advised that the football field could be included, however, the area to not quite suitable for a football field but the facility would be available for their use. Councilman Morgan stated he personally felt that the football fields would require a larger space and could be adjacent to the Little League Baseball fields. It was in the Oiler's by-laws that monies earned would be used for youth activities. Mr. Peterkin reminded the Council that this facility would, in fact, belong to the City. Mayor Elson stated then what the Oiler's are asking to for exclusive use of the facilities during a specified time? Mr. Peterkin advised that this was the intent. MOTION: Councilman Hudson moved, seconded by Councilman Ambarian, that the matter of the Peninsula Oiler's lease of City owned land be scheduled for a public hearing at the next regular meeting of the Council and that Administration be instructed to advertise the public hearing as such. Councilman Morgan stated that he would oppose this as the matter had been before Council for several weeks and this would be only another delay and Councilman Morgan could see no logic In holding a public hearing when this was not required on other leases of City owned property. Ell %t r) W KENAI CITY COUNCIL, REGULAR MEETING OF MARCH 3, 1976 PAGE 8 Councilman Ambarian asked if the Oilers had made a survey as to the residents in the vicinity of the proposed baseball facility as to these residents feelings about the location, etc.? Mr. Peterkin advised that they had not. Councilman Sweet stated he would also oppose the motion as the City was basically talking about leasing City owned lands and holding a public hearing on such a request had not been a procedure followed on past matters of leasing City owned lands or facilities. Councilman Hudson stated he felt strongly about a public hearing as this is a piece of land worth a great deal of money and it is the Council's job to get fullest use of land and with public input could weigh all aspects of the matter. Councilman Sweet stated he felt a precedent would be set wherein any time a lease of City owned lands came before the Council, a public hearing on the matter could be set. QUESTION: Motion failed by roll call vote. Voting no; Morgan, Ackerly, Sweet, Elson. Voting yes; Ambarlan, Hudson and Whelan. MOTION: Councilman Sweet moved, seconded by Councilman Ackerly, for the acceptance of the lease of City owned lands for the Peninsula Oilers. Councilman Ambarian stated that he would still like to see the type of facility that was to be built as it would not take too much time to present a detailed development plan. Councilman Morgan stated that the Planning Commission had already passed the application and development plan as submitted by the Oilers. Councilman Ambarian advised that questions were raised during the Planning Commission meeting as to additional and more specific Information. Councilman Whelan stated that he would not be able to vote on the acceptance of the lease without further study. Mayor Elm stated he was still not satisfied as to the development of the Little League fields. The Council also must keep it mind that this development plan to only for five years and after the five years there will be a new group of individuals involved (new Council members, ne. Oilers Board members, etc . ) and these people will need a definitive document to work from with regard to the lease and development plan. Councilman Morgan inquired as to who had drawn up the lease? Mr. Lynn advised that the City Attorney had drawn up the lease after conversations with the Oilers and City Administration. t - , n �' 0 W KENAI CITY COUNCIL, REGULAR MEETING OF MARCH 3, 1976 IMAGE 9 Councilman Morgan asked for comments from the City Attorney. Miss Williams stated she would like to change some points and amend the development plan, etc. QUESTION: Motion failed by roll call vote. Voting no; Ambarian, Hudson and Elson. Voting yes; Morgan, Ackerly and Sweet. Abstaining, Whelan. MOTION: Councilman Hudson moved, seconded by Councilman Morgan, that the lease of City owned lands by the Peninsula Oilers be included on the agenda of the next regular meeting of the Council and in the interim period, representatives from the Oilers work with City Administration to work out some of the questions raised by Council. Councilman Morgan moved to amend, with consent of Councilman Hudson, that a public hearing be held at the some time concerning the lease. Councilman Ambarian advised that he had talked with several people and they indicated they felt the City should not get involved in such an arrangement when the City is not in a position -- thus the request for public Input. Councilman Morgan stated this attitude discouraged him as the Oilers were made up of people in the community who are trying to put in a facility that will be beneficial to the City. Other cities in Alaska have backed this type of arrangement and the City of Kenai has been better off financially because of the existence of the Oilers. One of the complaints aired is that the Oilers will have too much authority and control this had been a request of the City Administration that the Oilers assume responsibility t for the facility as the City is unable to do so at this time. QUESTION - AMENDMENT Motion passed by roll call vote. Voting yes; Morgan, Ambarian, Aokerly, Sweet, Hudson and Wheland. Voting no; Elson. QUESTION Motion passed unanimously by roll call vote. i F-4: Resolution No. 76-9, Borough Assembly passing Ordinance approving Ord. 289-76. As Ordinance 289-76 is to be amended it was the unanimous decision of the Council to table Resolution No. 76-9. d. NEW BUSINESS 0-1: Bills to be paid - bills to be ratified i Mr. Lynn advised that these were routine and budgeted items and recommended approval. r Q i KENAI CITY COUNCIL, REGULAR MEETING OF MARCH 3, 1976 PAGE 10 MOTION: Councilman Sweet moved, seconded by Councilman Ambarian, for the approval of those bills to be paid and the approval of those bills to be ratified. Motion passed unanimously by roll call vote. G-2: Ordinance No. 290-76 - Adopting 1076 Kenai Municipal Airport Regulations Mayor Elson read the ordinance. "An ordinance of the Council of the City of Kenai, Alaska, adopting the 1976 Kenai Municipal Airport Regulations. Whereas, these regulations will serve as the regulator power for the Airport Manager or his designated representative, and Whereas, prior regulations were adopted by the Airport Advisory Commission and have since become outdated, and Whereas, these regulations, as amended, are a necessary tool in the proper management of the Kenai Municipal Airport. Now, therefore be it resolved, by the Council of the City of Kenai, Alaska, that the 1976 Kenai Municipal Airport Regulations are hereby adopted as the regulatory authority in the management of the Kenai Municipal Airport. " Mr. Lynn advised that these proposed regulations were an up -date on the Airport Regulations. There are still some areas that need to be clarified before final acceptance of the proposed regulations. E Councilman Ambarian agreed that there additional changes, etc. that needed to be included as well as inclusion of the Float Plane Basin. Councilman Ambarian suggested Council hold a work session before the next meeting in order to incorporate all changes, etc. before final passage. Council will hold a work session Wednesday, March 10, 1976, at the Kenai Public Safety Building„ at 7: 30 p.m. MOTION: Councilman Ambarian moved, seconded by Councilman Hudson, for the introduction of Ordinance 200-76, adopting the 1976 Kenai Municipal Airport Regulations. Motion passed unanimously by roll call vote. 0-3: Resolution 76-10 - Off Systems Road Funding Mayor Elson advised that this resolution came about because of Mr. Spake's visit to the Council wherein he stressed the urgency in requesting the continuance of the Off Systems Road funding. MOTION: Councilman Ambarian moved, seconded by Councilman Morgan, for the adoption of Resolution No. 76-10, Off Systems Road Funding. Motion passed unanimously by roll call vote. y� i KENAI CITY COUNCIL, REGULAR MEETING, MARCH 3, 1976 PAGE 11 �-. G-4: Resolution No. 76-11 - Construction of Gas Pipeline, North Slope to Nikiski Mayor Elson read Resolution 76-11, "A resolution to encourage the construction of an all -Alaskan Gas Pipeline route from the North Slope to Nikiski terminus. Whereas, there is a considerable reserve of natural gas to be found on the North Slope of Alaska, and Whereas, there is a concurrence of opinion that this gas could effectively be piped by an all -Alaskan route to a terminus at Nikiski, Alaska, and, Whereas, this route would derive the State of Alaska and its citizens a considerable revenue, and Whereas, this route would promote the safe and expeditious means of delivery of needed natural gas to the rest of the United States. Now, therefore, be it resolved by the Council of the City of Kenai, Alaska: encourages the construction of an all -Alaskan gas pipeline route from the North Slope to a Nikiski, Alaska terminus." MOTION: Councilman Sweet moved, seconded by Councilman Hudson, for adoption of Resolution No. 76-11, construction of gas pipeline, North Slope to Nikiski. Councilman Morgan stated that he had heard that this activity was a "divide and conquer" to avoid the construction of the pipeline to Valdez and encourage the development of the pipeline through Canada. Councilman Morgan stated he would be opposed, at this time, to the passage of the resolution. MOTION: Councilman Morgan moved, seconded by Councilman Ambarian, to table Resolution No. 76-11, construction of a gas pipeline, North Slope to Nikiski, until further information is acquired concerning the matter. Motion passed unanimously by Council . G-5: Consent to sublease - William A. McWilliams to Ron Swanson Deleted i G-6: Lease of City Owned Lands - Brian L . and Nancy J . Peck Mr. Lynn advised that this was a renewal of the lease for Brian L. and Nancy J. Peck for Lots 7 and S, Old Aircraft Apron, Kenai Municipal Airport. Administration recommends approval. MOTION: Councilman Ambarian moved, seconded by Councilman Morgan, for the approval of lease of City owned lands to Brian L . and Nancy J . Peck. Motion passed unanimously by roll call vote. a: lit 11, KENAI CITY COUNCIL, REGULAR MEETING, MARCH 3, 1976 PAGE 12 G-7: Sublease of Parish House to Russian Orthodox Church Mr. Lynn advised that when the City put water and sewer lines by Ft. Kenay, the assessments on the property were so high that the church requested lease to the is now requesting that a portion (lying to the west of the fence) of the land be sublet back to the Church so that they can obtain a loan to improve the parish house. Administration believes the City has no need for that portion of the property and would recommend approval. Mayor Elson recognized Mr. Alex Shadura, who was representing the sublessee. Mr. Shadura advised "that there had been some misunderstanding as the Church did not want a lease in the beginning but the City wanted federal funding for the Ft. Kenay complex and put pressure was on the local parishoners to lease this land to the City. It was also in error that the parish house was included in this lease agreement. The Church is now trying to make the home more liveable so that the priest and his family could reside in it. At this point, the Church cannot continue with construction until they have the sublease document in hand to be taken to the bank to secure a loan for the purpose of remodeling. Mr. Shadura also stated that he felt it was time that the City rectified past injustices to the parishoners during the time the original lease was formalized. " Councilman Ambarian asked if the land in question had ever been appraised. Mayor Elson advised that as far as he could recall, it had not been. Councilman Ambarian also inquired if the City would get into trouble with the Federal agency that issued the grant if we returned a portion of the land? Mr. Shadura stated that he talked with former Governor Egan who advised that the funding had been a one-time situation. Councilman Ambarian asked if it would not be more feasible to give this portion of the land back without entering into the sublease agreement? City Attorney, Janis Williams, advised the other alternative would be to write to Washington to see if they had any objections to this transaction and this might mean at least six months before a reply back was received. Councilman Morgan suggested more investigation be made into the matter -- i.e. water lines, etc. Mayor Elson stated that the City had done some reconstruction work to the parish house. The Mayor also stated that he would like to see that portion deleted from the sublease agreement which refers to the ...... "City has not so reconstructed the Old Parish House......" Father Kreta from Kodiak spoke in behalf of the proposed sublease and stated that in as much as the City had the right to sublease, he did not feel there would be any questions arise from the Federal Agency -- Ft. Kenay is not in jeopardy with this transaction. City Attorney, Ci Janis Williams, advised there were some minor changes such as the name of the sub -lessee, etc. MOTION: Councilman Ambarian moved, seconded by Councilman Sweet, for approval of the sublease agreement as amended per recommendation by Administration and also with further investigation into those areas as requested. Motion passed unanimously by roll call vote. KENAI CITY COUNCIL, REGULAR MEETING, MARCH 3, 1976 PAGE 13 0-8: Resolution No. 76-12 - Supporting SSSR 2670 50% State Funding for W/S Projects f Mayor Elson road Resolution No. 76-12, a resolution sup porting 388B 287 authorizing 50$ state funding for water and sewer projects. Whereas, SSSB 267 would authorize a thirty one million dollar ($31, 000, 000) bond issue be placed before the voters of the State; and Whereas, the City of Kenai would be eligible for 50% funding on current and proposed water and sewer projects. Mr. Lynn advised the Council that this Bill was presently before the Legislature and appeared it will be approved for placement before the voters -- the final exact amount of money may be in question. Passage of this would increase the amount of grant the State could make to a municipality from 25% to 50%. MOTION: Councilman Hudson moved, seconded by Councilman Ambartan, for adoption of of Resolution No. 76-12, supporting SSSB 267, 50% State Funding for Water/Sewer Projects. Motion passed unanimously by roll call vote. 0-8: Resolution No. 76-13, Supporting SB 582, Authorizing Bond Issue of $37,000,000 �. Mayor Elson read to the public Resolution 76-13, A resolution supporting SB 582, Whereas, the Legislature Interim Committee has recommended passage of SB 582 which would authorize a bond issue of thirty seven million dollars ($37,000,000) be placed before the voters and; Whereas the City of Kenai would be eligible for at least five hundred thousand dollars ($500,000) for construction of a port facility; and Whereas, Kenai would be designated a port of entry which could result in lower fuel, food and materials prices. Mr. Lynn advised that this particular Bill would enable Kenai to possibly receive $500,000 in addition to the $650,000. i MOTION: Councilman Sweet moved, seconded by Councilman Whelan, for adoption o Resolution 76-13, SupportingSB 582, Authorizing Bond Issue of $37,000,000. Councilman Morgan inquired as to where all tho monies would be designated as $37,000,000 is a great deal of money. Mr. Lynn stated in his opinion, it would probably be used in Anchorage. Councilman Morgan also inquired as to what the Kenai Harbor Commission was working on and was advised by Mayor Elson that they were, among other things, T studying the feasibilty of possible docking facilities. -= Mr. Lynn did advise that this resolution Is for specific flocking facilities for commercial type enterprises not small boat harbor facilities. v -= QUESTION: Motion passed unanimously by roll call vote. Council directed Administration to send a copy of the resolution to the Kenai Chamber of Commerce. KENAI CITY COUNCIL, REGULAR MEETING, MARCH 3, 1976 PAGE 14 g 0-10: Assignment of Lease - Thomas R . & Gnil Ann Smith to Nntional Rnnk of Alaska Q" Deleted 0-11: Lease of City Owned Lands - Northern Aircraft Sales and Services Mr. Lynn advised that this lease was for Lot 1, Block 2, General Aviation Apron, and had been requested by Jack Peck and Jack Peck, II d/b/a Northern Aircraft Sales h Service, a new business on the airport. Administration did recommend approval. Councilman Ambarian suggested that the form for lease of Airport Lands or Facilities be amended to require that the Lessee comply with the 1076 Kenai Municipal Airport Regulations. MOTION: Councilman Ambarian moved, seconded by Councilman Sweet, for approval of lease for airport lands or facilities to Jack Peck and Jack Peck, II d/b/a Northern Aircraft Sales & Service. Motion passed unanimously by roll call vote. H. REPORTS H-1: City Manager's Report (a) Mr. Lynn introduced Mr. Ross Kinney from the Fairbanks -North Star Borough who has applied for the position of Finance Director for the City of Kenai. (b) Mr. Lynn stated that the City was working right ahead on budget preparation, Mr. Lynn did request some input from the Council as he advised that due to the budget calendar, Administration would have to table some matters as requested by Council as there was not enough staff available. Councilman Ambarian inquired as to specific items the City Manager was referring to and was adised by Mr. Lynn that the Council had requested additional information on the Nikiski Pipeline, etc. -- those items that are not dire to day-to-day business. Councilman Ambarian asked exactly how much overall staff time was involved in the budget and Mr. Lynn stated that the Department Heads are to have bhe proposed budgets in by March 12th. Councilman Morgan inquired as to the status of the Capital Improvements Budget and Mr. Lynn advised that it was about three months behind. Councilman Hudson stated that it was his feeling that the day-to-day operation of the City has to go on in spite of certain priorities and would hope that the City Manager would use his good judgement to make the decisions as to the priorities. Councilman Morgan asked that additional information be submitted to the Council regarding HB 752 and how it might affect the construction of an Industrial Water Line. r"•, 0 kd KENAI CITY COUNCIL, REGULAR MEETING, MARCH 3, 1976 PAGE 15 H-2: City Attorney's Report With regard to the PEP suit, the City of Kenai has been sued. The complaint and the exhibits sat out names of employees, etc. The City of Kenai will be joining the Bonding company and the City Manager who was employed during the PEP Program as third party defendants. City Attorney Williams requested that Council approve funds to be used for consultation fees with regard to this case. There is money available in the City Attorney's Budget. MOTION: Councilman Hudson moved, seconded by Councilman Ambarian, that in as much as there era monies available in the Legal Department Budget for professional services, such monies could be allocated to a consultant in the PEP suit with a limited amount not to exceed $1,000. Motion passed unanimously by roll call vote. H-3: Mayor's Report Mayor Elson stated that in the past on several occasions, he had expressed to Administration that they should proceed "post haste" and implement an Animal Control Program using the funds available. Mayor Elson reiterated this request. H-4: City Clerk's Report None H-5: Finance Director's Report None H-6: Planning s Zoning Commission's Report Councilman Ambarian reported on the meeting of the Commission of February 25, 1976 in that the Commission held a joint work session with the City Council regarding the FAA Planning Grant. Other business on the agenda included a Nuisance Complaint Consideration against Kimbrell Welding and presentation of the Development Plan for the Peninsula Oilers. Other agenda matters were the preliminary plat of Spruce Grove Subdivision, Block 3, the preliminary plat on Redoubt Terrace Subdivision, Addition 3; an application for lease of Lot 1, Block 2, General Aviation Apron for Jack Peck and a Reral Residential Conditional Use Consideration for the American Legion. H-7: Kenai Peninsula Borou h Assembly's Report Councilman Hudson reported that Ordinances 76-4 and 76-6 were passed unanimously by the Assembly. Also introduced and passed for hearing at the meeting of April 8th were Ordinances 76-8, 76-13, 76-14, 76-15 and 76-10. 1 i y 1 I { 1 KENAI CITY COUNCIL, REGULAR MEETING, MARCH 3, 1976 PAGE 10 MAYOR & COUNCILMEN: COMMFNTS & DISCUSSION Councilman Ambarian stated he would like to see Council hold more work saesions so that the City Manager would got a better idea of what the r-ouncil warts so that there will not be unnecessary hold-ups on various procedures and projects. 1. PERSONS PRESENT NOT SCHEDULED TO RE HEARD I-1: Mr. Geor o Navarre Mr. Navarro spoke in opposition of Resolution 70-11, Construction of Gas Pipeline from the North Slope to Nikiski as in his opinion this would hinder the State's efforts towards getting a pipeline in Alaska. With regard to port facilities, Mr. Navarre reported that the Coast Guard is considering closing all further dock construction in portions of Cook Inlet. Mr. Navarre also urged the Council to direct something to our Legislature regarding the water/sewer resolution. Mr. Navarro also spoke in support of the Peninsula Oilers and the Board was trying to comply with requirements and the Board is doing a very good job and at all times considering the welfare of the community. Mr. Navarre also stated that he heard reports were coming out of City Hall with regard to former Finance Director, David Chen, in that Mr. Chen was being indicted and was in jail -- these are just rumors. 4 1-2: Mr. Max. Max Swearinsen Mr. Swearingen spoke in reference to the Peninsula Oilers in that there never i has been an accounting of the outcome of the funds. Mr. Swearingen suggested the City prepare this information for the public hearing. y 1-3: Councilman Walter Sweet Councilman Sweet stated he would like a resolution prepared to be sent to the Governor opposing his views in wiping out the leases in Nachemak Bay as the City of Kenn has a great deal of knowledge of the oil industry and its benefit to the growth of the community. Councilman Morgan concurred with Councilman Sheet and also encouraged the preparation of this resolution. There being no further business, Mayor Elson adjourned the meeting at 10:46 p.m. Respectfully submitted _�5e n. Q�� Sue . Peter, City Clerk U