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HomeMy WebLinkAbout1976-08-18 Council Minutesna Y 4 404 AGENDA REGULAR MEETING - KENAI CITY COUNCIL AUGUST 18, 1076 - 8s 00 P.M. PUBLIC SAFETY BUILDING PLEDGE OP ALLEGIANCE PAGE A . ROLL CALL AGENDA APPROVAL S. PUBLIC IIP.ARINGS 1. Ordinance No. 305-76 - Amending 1076 Kenai Municipal Airport Regulations 1 2.0rdinanee No. 306-76 - Amending Ord. 267-75, Dedication of 14 Sales Tax 2 $.Ordinance No. 307-76 - Repealing Ordinance No. 142-71 2 4. C. PERSONS PRESENT SCHEDULED TO BE HEARD 1. Mr. Kyle Weaver - City of Kenai Recreation Program 3 i 2. Mrs. Susan Cartwright - Water Line/Forest Drive 3 S. Mrs. Hefty Warren - Corner of Kalifonsky Beach Rd. a Ames Bridge 3 *XECUTIVE SESSION D. MINUTES 1. Minutes of the regular meeting of August 4, 1970 4 � E. CORRESPONDENCE 1. F. OLD BUSINESS i i 1. 2. 4. 0. NEW BUSINESS 1. Sills to be Vold, bills to be ratified 5 2. Ordinance No. 308-70 - Warm Storage Facility b S. Resolution No. 70-40 - Local Roads and Trails 5 4. Resolution No. 76-41- City of Ktnsi Auxiliary Organizations b b. Loss" of Airport Facilities - Kenai Air Service i S. Assignment of Lout - Andy's Flying Service 0 7. Kenai Elks Club - Determination of Least Rate 87 S. Sid -10" Water Lire/Forest Drive 0 ; 0. Bid - Animal Control Facility 0 ! 10.Did - City Sewage Treatment Plant p 11. Sid - Petroleum Rids 10 i 12.Ratification of Award of Contract - F"A water Wall Project 10 11, Assignment of Lease - Ronald and/or daequaline Swanson to NBA {�• 14. 15. H. REPORTS 1. City b?anages's Report j 2. City Attorney's Be" 11 S, 1110yo s Report ; 32 4. City Clerk's Report : u b. Finance Director's Report 12 { S. Planning a Zoning Commission's Report 1? I. Kenai Peninsula Borough Assembly's Report 1$ f. PERSONS PRESENT NOT SCHEDULED TO BE HEARD LETTER OF RESIGNATION A, :I KENAI CITY COUNCIL - REGULAR M11,11, INU AUGUST 18, 1976 - 8: 00 P.M. KENAI PUBLIC SAFETY BUILDING MAYOR JAMES A. ELSON PRESIDING PLEDGE OF ALLEGIANCE A . ROLL CALL Present: Dan Whelan, Fed Ambarian, Tom Ackerly, A, L. Hudson, Walter Sweet, Richard Morgan and James Elson Absent: None AGENDA APPROVAL Council approved the following addition to the agenda: 0-13: Assignment of Lease - Ron Swanson to National Bank of Alaska B. PUBLIC HEARINGS B-1: Ordinance No. 305-76 - Amending 1970 Kenai Municipal Airport Regulations Mayor Elson read Ordinance No. 308-70, "an ordinance of the Council of the City of Kenai, Alaska, amending the 1976 Kenai Municipal Airport Regulations, Whereas, the Federal Aviation Administration has requested that certain additions be made to the 1976 Kenai Municipal Airport Regulations, and Whereas, the council of the City of Kenai deems such additions desirable. Now, therefore, be it ordained by the Council of the City of Kenai, that the 1070 Kenai Municipal Airport Regulations are hereby amended by adding to Section 10.000, Fueling, , three new regulations, which shall read in their entirety as follows: 10.001 There 91mll be a sufficient number of trained personnel and procedures for safety storing, dispensing and otherwise handling fuel and lubricants on the Airport; 10.092 - Adequate grounding for the aircraft and fueling facility shall be installed and immediate fire protection or extinguishers will be provided; 10.003 - There shall be adequate marking and labeling on storage tanks and tank trucks, including identification of specific types of fuels and fuel octane designations." Mr. Phillip Aber, Acting City Manager, advised Council that FAA had requested these amendments to the Kenai Municipal Airport Regulations, Mayor Elson opened the meeting to the public for their comments. There being no public input, the hearing was returned to the Council table. _W 14s.1 KHNAI CITY COUNCIL, REGULAR MEETING, AUGUST 18, 1976 Page 2 MOTION, Councilman Morgan moved, seconded by Councilman Sweet, for adoption of Ordinance No. 305-76, an ordinance of the Council of the City of Kenai, Alaska, amending the 1976 Kenai Municipal Airport Regulations. Motion passed by roll call vote. Voting yub; Whelan, Ackerly, Sweet, Morgan and Elson. Voting no; Ambarian and Hudson. B-2: Ordinance No. 306-76 - Amending Ordinance 267-75, Dedication of 1% Sales TAx Mayor Elson read Ordinance 306-76, "an ordinance of the Council of the City of Kenai amending Ordinance No. 267-76, and Section 7-27 of the Code of the City of Kenai. Whereas, the Council has determined that it is more advantageous to the City to dedicate 1% of the Sales Tax to retirement of prior year deficits rather than to tho Debt Service Fund. Now, therefore, be it ordained that: Section 7-27 (b) of the Code of the City of Kenai as amended by Ordinance 267-75 is hereby further amended to read in its entirety as follows: (b) One-half of the revenues of the consumers' sales tax levied by Section 7-25(b) is dedicated to be applied to the retirement of prior year deficits and to meet cash restriction requirements." II Mayor Elson opened the hearing to the public. There being no comment, the hearing was returned to the Council table. MOTION: Councilman Whelan moved, seconded by Councilman Hudson, for adoption of Ordinance No. 300-76 - Amending Ordinance 267-75, dedication of 1% Sales , Tax. Motion passed by roll call vote. Voting yes: Whelan, Ackerly, Hudson, Sweet, ; Morgan and Elson. Voting no, Ambarian. 19-3: Ordinance No. 307-76 - Repealing Ordinance No. 192-71 Mayor Elson read Ordinance No. 307-76, "an ordinance of the Council of the City of Kenai repealing Ordinance No. 192-71, Whereas, the Council of the City of Kenai has determined that Ordinance No. 192-71 is in conflict with the Charter of the City of Kenai. Now, therefore, be it ordained that Ordinance No. 192-71 is hereby repealed". City Attorney Janis Williams advised that Ordinance 192-71 was an ordinance which provided that all Department Heads appointed by the City Manager needed ratification by City Council. 40 �I KENAI CITY COUNCIL, REGULAR MEETING, AUGUST 18, 1976 PAGE 3 Mayor Elson opened the hearing to the public so that they could be heard. There being no public comment, the hearing was returned to the Council table. MOTION: Councilman Morgan moved, seconded by Councilman Whelan, for adoption of Ordinance No. 307-76, Repealing Ordinance No. 192-71. Motion passed unanimously by roll call vote. C . PERSONS PRESENT SCHEDULED TO BE HEARD C-1: Mr. Kyle Weaver - City of Kenai Recreation Program Mr. Weaver summarized the Recreation Program and outlined future needs that should be met in the development of the program in the spring of 1077. Mr. Weaver also advised of programs that had been implemented and invited all to attend the Square Dance to be held at Ft. Kenay Thursday evening. Mr. Weaver encouraged the Council to consider a year-round recreation program for both youth and adults. C-2: Mrs. Susan Cartwright - Water Line/Forest Drive Mrs. Cartwright, as a resident of Woodland Subdivision, came before Council to request their strong consideration to proceed with the construction of the 10" water line along Forest Drive to alleviate the inadequate water system in the Woodland area. Mrs. Cartwright reported that it has been determined that if the construction to not done along with the paving of Forest Drive, cost of installing the water line in the future will be much higher. Councilman Morgan inquired from Mr. Aber what the City anticipated as increase _= = in pressure with this line and was advised that pressure would only increase 3-5# but the volume would also increase. C-3: Mrs. Betty Warren Mrs. Warren came before Council requesting Couneu d a.tt a resolution urgi g the .� Borough to contact the State Highway Department to take necessary steps to alleviate the hazardous situation at the corner of Kalifonsky Beach Road and the Ames Bridge ` Crossing. Mrs. Warren has observed many near accidents and potential dangerous situations. J r KENAI CITY COUNCIL„ REGULAR MEETING, AUGUST 18, 1976 PAGE 4 Councilman Morgan asked for comments from Police Chief Richard Ross -- Chief Ross advised that he had received a report in March and it was stated in this accident report that this area was considered hazardous and the State would proceed accordingly. Mr. Aber advised that he had discussed this matter with the State on three different occasions and the State reported that they would take care of the matter. Mayor Elson directed the Administration to prepare a resolution for the next regular meeting of the Council so that the resolution may be taken to the Assembly without further delay. EXECUTIVE SESSION MOTION: Councilman Whelan moved, seconded by Councilman Hudson, that the Council, as a whole, adjourn into an Executive Session for the purpose of discussions with regard to City Manager applicants and an agreement between the City of Kenai and Lt. Marshall Mahurin. Motion passed unanimously by roll call vote. RECONVENE - 8: 50 P.M. MOTION: Councilman Morgan moved, seconded by Councilman Whelan, that City Manager applicant, Mr. John Wise, be contacted with an offer for the position of City Manager at a salary 10 percent above the highest present subordinate's salary. Motion passed unanimously by roll call vote. D . MINUTES D-1: Minutes of the regular meeting of August 4, 1976 The minutes of the regular meeting of August 4, 1078 were approved as distributed. E. CORRESPONDENCE E-l: Public Works Seminar Mayor Elson read an invitation to the City to attend a Public Works Seminar which will be hold at various locations throughout the United States. E-2: Kenai Peninsula Borough A representative from National Coastal Zone Management will be at the Borough August 27th regarding recommendations for the future on various public works programs. `� J KENAI CITY COUNCIL, REGULAR MEETING, AUGUST 18, 1070 PAGE G 0"E-1 Senator Ted Stevens r Mayor Elson acknowledged correspondence received from Senator Stevens concerning metering requirements on the Water Well Project. E-4: Senator Mike Gravel Correspondence was received from Senator Gravel with regard to the Public Works Act and its effects on municipalities in the State. F . OLD BUSINESS None G. NEW BUSINESS G-1: Bills to be paid, bills to be ratified Mr. Aber explained the bills as listed and advised that Administration recommended approval. MOTION: Councilman Morgan moved, seconded by Councilman Sweet, for approval of those �i items listed for disbursement and approval of those items listed for ratification. (� Motion passed unanimously by roll call vote. ti-2: Ordinance No. 308-76 - Warm Storage Facility Mayor Elson read Ordinance No. 308-70, by title only as copies had been made avail- able to the public. "An ordinance of the Council of the City of Kenai, Alaska, transferring funds for the purpose of installing heat and electricity in the City warm storage facility" . Mr. Aber advised that the purpose of this ordinance was to transfer monies to enable installation of heat an.4 power to the warm storage facility. MOTION: Councilman Ambarian moved, seconded by Councilman Hudson, for introduction of Ordinance No. 308-70, Warm Storage Facility. '' Motion passed unanimously by roll call vote. . KENAI CITY COUNCIL, REGULAR MI STING, AUGUST 18, 1976 PAGE 6 G-3: Resolution No. 76-40 - Local Roads and Trails �J Mayor Eisen read Resolution No. 76-40, "a resolution of the Council of the City of Kenai, relating to Local Service Roads and Trails monies, whereas, it is necessary to have a plan approved for Local Service Roads prior to September 1, 1976, and whereas, prior revolutions have adopted plans relating to such monies and those plans must be rescinded. Now, therefore, be it resolved that: Section 1: Resolution No. 73-34 is hereby rescinded. Section 2: Resolution No. 74-34 is hereby rescinded. Section 3: The City of Komi hereby accepts $96,204.45 in Local Service Roads and Trails monies and hereby directs that such monies be used in accordance with the plan attached hereto as "Appendix All. N Mr. Aber advised that he had received a telephone call from the Department of Highways in which they advised that the City had until September 1, 1976, to obligate this money or lose it. Mr. Aber proposed that the City obligate these funds and plan for proposed construction in the summer of 1077. Councilman Morgan inquired if Resolution No. 74-34 is rescinded what would be the status of the monies spent on the Boat Harbor Access Road? Mr. Aber advised that no credit can be applied to construction prior to the signing of the agreement with the State. Councilman Morgan also inquired if Resolution 76-40 is passed, would Administration be able to proceed with construction on various projects without first coming back to Council? Mayor Elson stated Administration would have to present a list or priority projects (approved by Planning Commission) before proceeding with expenditure of the funds. Mr. Kinney, Finance Director, advised that also the expenditure of these funds would be through appropriation by Ordinance only, therefore, this would entitle Council an additional opportunity to review the proposed projects, etc. MOTION: Councilman Hudson moved, seconded by Councilman Ambarian, for adoption of Resolution 76-40, Local Roads and Trails I:�otion passed unanimously by roll call vote. 0-4., Resolution No. 76-41- City of Kenai Auxiliary Organizations Mayor Elson read Resolution No. 76-41, "a resolution of the Council of the City of Kenai declaring City policy with regard to funds raised by Auxiliary Organizations. Whereas, the City's policy with regard to funds raised by auxiliary organizations has not in the past been clearly defined; and Whereas, the Council deems it desirable that such policy be formally declared. Now, therefore, be it resolved as follows: Section 1: Funds raind by auxiliary organizations directly related to City functions belong to those organizations and the City shall have no voice in how such funds are used. KENAI CITY COUNCIL, RLIGULAR MBETINa, AUGUST 18, 1976 PAGE 7 Section 2: Where no City equipment, materials, facilities or lands arc used in the fund raising effort, no accounting of such funds need be made to the City. Section 3: Whenever City equipment, materials, facilities or lands are used by auxiliary organizations in a fund raising effort, prior approval of the City Manager for such use shall be obtained and accounting of the fund raising event shall be submitted to the Finance Director of the City of Kenai within thirty (30) days after such event. Section 4: Whenever an auxiliary organization donates equipment, materials, lands or other non -liquid assets to a department of the City, such department shall immediately report the donation to the Finance Director. Section 5: whenever an auxiliary organization donates money to a department of the City, such money, along with a statement by the organization of the purposes for which it is donated, shall be immediately turned over to the Finance Director so that it may be appropriated in accordance with such purposes". City Attorney, Janis Williams, advised that the above resolution was drafted at the request of Council to batablish a policy with regard to fund raising by auxiliary organizations. MOTION: Councilman Sweet moved, seconded by Councilman Whelan, for adoption of Resolution No. 76-41, City of Kenai Auxiliary Organizations. Motion passed unanimously by roll call vote. C-4: Mr. Marion Sellers, Bert's Ready -Cab 64 Mayor Bison advised that the Public Vehicle Commission had met on August 3rd to consider a transfer of permit to operate a taxicab within the City of Kenai and during that meeting also considered a increase in flag drop and per mile charges. The Public Vehicle Commission determined such rate increase is justified and so recommended approval to Council. Therefore, with Council consent, the matter would now be taken up before the Council of the City of Kenai. Mr. Seller's, representing Bert's Cabs, requested Council action on this matter as due to increases in costs for up -keep (gas, repairs, etc.), it has been determined that an increase in flag drop and per mile --barge is necessary. Mayor Rlson read Resolution 76-42, "a resolution of the Council of the City of Kenai fixing rates to be charged by taxicabs within the City of Kenai. Whereas, Section 20-13(b) of the Code of the City of Kenai states that rates to be charged by taxicabs shall be fixed by resolution of the Council pursuant to a recommendation of the Public Vehicle Commission, and Whereas, the Public Vehicle Commission determined at a meeting held August 3, 1076, that the taxicab rates should be increased to $1.40 flag drop and $1.00 per mile, and Whereas, the Public Vehicle Commission has recommended such rate increase to the Council and the Council has determined that such rate increase to justified, Now, therefore, be it resolved as follows: Rates charged for conveyance in taxicabs shall be: $1.40 - Flag drop; $1.00 - per mile." KENAI CITY COUNCIL. REGULAR MEETING, AUGUST 18, 1976 PAGE 8 MOTION: Councilman Ambarian moved, seconded by Councilman Whelan, for adoption of Resolution 76-42, "Fixing rates to be charged by taxicabs within the City of Kenai". Motion passed unanimously by roll call vote. G-6: Lease of Airport Facilities - Kenai Air Service Mr. Aber advised that Kenai Air Service has requested 100 square feet of Counter Space 016 (which would abut the AAI counter) in the Kenai Airport Terminal for a period of 10 months at a monthly rate of $87. MOTION: Councilman Sweet moved, seconded by Councilman Ackerly, for approval of lease of Airport Facilities to Kenai Air Service for 100 square feet of counter space 618 for a period of 10 months at a monthly rate of $87. MOTION - AMENDMENT Councilman Hudson moved, seconded by Councilman Ambarian, that Schedule "A" "Option to Renew", not be transferrable on assignment. Motion passed by roll call vote. Voting yes; Whelan, Ambarian, Ackerly, Hudson, Sweet and Elson . Voting no; Morgan. QUESTION Motion passed by roll call vote. Voting yes; Whelan, Ackerly, Hudson, Sweet, Morgan and Elson. Voting no; Ambarian G-6: Assignment of Lease - Andy's Flying Service Mr. Aber advised that Andy's Flying Service requested an assignment of lease for Block 1, Lot 3, General Aviation Apron to the State of Alaska, for the purpose of obtaining financing for the construction of a hangar. MOTION: Councilman Hudson moved, seconded by Councilman Ambarian, for approval of assignment of lease from Andy'9 Flying Service to the State of Alaska for Block 1, Lot 3, General Aviation Apron. Motion passed unanimously by roll call vote G-7: Kenai Elks Club - Determination of Lease Rate --- Mr. Aber reported that during the last budget session lease rates were discussed and letters were sent to Lessees advising of the new rate increase where applicable. -- ° The Elks Club had an agreement with the City to provide certain services in the repair and maintenance of the park adjoining their property as an in -lieu payment. The h KENAI CITY COUNCIL, REGULAR MEETING, AUGUST 18, 1976 PAGE 9 agreement stipulated that the Elks were to make annual reports to the City and this work would be certified by the City plus all development plans approved. Councilman Sweet asked if the Elks had complied thus far and Mr. Aber advised that the City had talked with represenatives from the Elks and they were going to check their records for annual reports as the City has no reports after 1973 in its files. MOTION: Councilman Sweet moved, seconded by Councilman Ackerly, that the Kenai Elks Club be sent a letter asking for substantiating records, giving them 30 days to comply, and if the Elks fail to do so, terminate their lease. Councilman Morgan stated he disagreed with this method as they entered into an agreement with the City in good faith. Councilman Whelan inquired if the City Attorney felt we were locked into this prior agreement and Miss Williams stated she felt that the terms could also be renegotiated as well as the rates. Councilman Hudson stated that the City is just asking for documentation of work plan and other lease holders are fined for failure to pay. QUESTION: Motion passed by roll call vote. Voting yes; Whelan, Ambarian, Ackerly, Hudson, Sweet and Elson. Voting no; Morgan G-8: Bid - 10" Water Line/Forest Drive This item was moved to the end of the Agenda at this time G-9: Bid - Animal Control Facility Mr. Aber advised that no bids were received and the City was now in the process of negotiating with local contractors. G-10: Bid - City Sewage Treatment Plant Mr. Aber advised that no bids had been received and the City had contacted Kenai ' Electric and a price of approximately $10,000 was determined for the project. Mr. Aber further advised that this project has been necessitated by EPA requirements and the monies for the project will be coming out of 1974 bond funds. Councilman Morgan suggested written contact be made with EPA to determine all the areas of non-compliance wherein adjustments could all be made at the same time. Mayor Elson asked if the prior funds and projects had been mixed together? Mr. Kinney advised that the Finance Department had been trying to separate to determine what funds were expended for which project -- both bond monies and grant monies had been mixed together. Mrs. Susan Cartwright advised that there was a separate grant for Sewer Treatment Plant, Sewer project and Davidson -Cone S/D . KENAI CITY COUNCIL, REGULAR MEETING, AUGUST 18, 1976 PAGE 10 MOTION: Councilman Sweet moved, seconded by Councilman Hudson, for authorization to Administration to proceed with an agreement with Kenai Electric for contracting work required on the City Sewage Treatment Plant. Councilman Morgan inquired if this work would fall under the new Pubic Works Bill? Perhaps the City should explore this avenue prior to expended City funds. Mayor Elson stated he felt this expenditure goes into as an asset to the facility. Councilman Ambarian stated as they were not budgeted as such, City crews should not be used in special construction projects. QUESTION: Motion passed by roll call vote. Voting yes; Whelan, Ackerly, Hudson, Sweet and Elson. Voting no; Ambarian and Morgan 0-11: Bid - Petroleum Bids i Mr. Aber reported that bids were received from Doyle's Fuel Service and Standard Oil. Administration recommends acceptance of the bid from Doyle's Fuel for non-leaded, regular and diesel products and the remainder as outlined in the bid document from Standard Oil. MOTION: r� Councilman Ambarian moved, seconded by Councilman Sweet, for acceptance of bide for Petroleum Products as recommended by City Administration. Motion passed unanimously by roll call vote. G-12: Ratification of Award of Contract - EDA Water Well Project Moved to last item on the agenda 0-13: Assignment of Lease - Ronald and/or Jacqueline Swanson to NBA Mr. Aber advised that this assignment was requested on Block 5, Lot 7, General Aviation Apron, for the purpose of collateral. MOTION: Councilman Ambarian moved, seconded by Councilman Sweet, for approval of assignment ' ` 4 of lease from Ronald and/or Jacquenline Swanson to NBA on Block 5, Lot 7, r General Aviation Apron. Motion passed unanimously by roll call vote. i KENAI CITY COUNCIL, REGULAR MEETING, AUGUST 18, 1976 PARE 11 H. REPORTS 04 H-1: City Manager's Report (a) Insurance Services Office - Mr. Aber reported that ISO had completed their survey and the final report will be back around Christmas. Verbally, the City has learned that it would retain the 8 rating but no determination has been made for the 5 rating as yet. (b) Sewer Treatment Plant Operators School - Mr. Aber advised that a special course was being offered at the Community College and requested Council authorization for one of the City's Treatment Plant Operators to attend. The fee for this course would be $100 plus one textbook. The Operator will be performing his regular work duties prior to and after attending the class. MOTION: Councilman Sweet moved, seconded by Councilman Hudson, that the City not enter into an agreement with the City employee, if this employee continues to perform regular work duties on hours not attending the class. Motion passed by roll call vote. Voting yes; Ackerly, Hudson, Sweet and Elson. Voting no; Whelan, Ambarlan, and Morgan. 60 H-2: City Attorney's Report (a) PEP Suit - the State did not accept the City's offer. Miss Williams advised that the City should offer another settlement without delay. Councilman Hudson inquired if the State wins the suit, would the City have to in turn _ sue the bonding company? Miss Williams that yes this would be the procedure. Mayor Elson directed the City Attorney to advise the bonding company of the status of the Citys' negotiations. Councilman Whelan asked what the City Attorney's recommendation would be in regard to a settlement offer -- Miss Williams advised that the City should make a substantial offer of around $20-24, 000. Mayor Eason stated he felt a settlement offer of this magnitude was not in the best interest to the public. i MOTION: Councilman Morgan moved, seconded by Councilman Sweet, to authorize the City Attorney to offer the State a settlement not to exceed $24, 000 with regard to the pending PEP Suit. f - Motion passed by roll call vote. Voting yes; Whelan, Ackerly, Hudson, Sweet, -- " and Morgan, Voting no, Ambarian and Elson. KENAI CITY COUNCIL, REGULAR MEETING, AUGUST 18, 1976 PAGE 12 H-3: Mayor's Report None H-4: City Clerk's Report City Clerk, Sue Peter, advised that nominating petitions were now available at City Hall for the positions of City Councilman (2 positions vacant) and Assembly representative. The petitions must be returned to City Hall no later than 5: 00 p.m. on September 21st . H-5: Finance Director's Report Mr. Kinney advised that the American Legion will pay their lease payment and will be present at the next meeting of the Council with a detailed report of their plans for construction of a new facility. Mr. Kinney also requested that the Council allow Mrs. Billie Hardy, of the Kenai Community Care Center to speak before the Council regarding their lease. Mrs. Hardy requested Council consideration on four different proposals: (1) to continue agreement made between the City the Care Center for 1975-76, (2) base annual lease on Borough I assessed value, (3) credit the Care Center $50,000 for improvements made to the building and grant that the lease be paid in full until 1984 under these conditions, and (4) City get FAA exemption for requirement of Fair Market Value. Mrs. Hardy further stated that any other workable solution that the City could offer would be greatly appreciated. ; I Mayor Elson inquired if the rental costs were included in the Care Center's request for funds? Mrs. Hardy advised that the Center is paid on a number of children housed in the Center. Mayor Elson inquired if the Community Care Center had provided a copy of their budget to the City? Mr. Kinney advised that none had been received. Councilman Ambarian stated he would like to see the matter tabled until the complete financial situation of the Center had been reviewed by City Administration. MOTION: Councilman Sweet moved, seconded by Councilman Morgan, that the City charge the Kenai Peninsula Community Care Center full market value for their facility they now occupy and in view of the fact that approximately 25% of the residents housed in the Center are from the City of Kenai, the City would, therefore, make a donation in the amount of $2,743 to the Community Care Center to be considered as a portion of their lease payment. Motion passed by roll call vote. Voting yes; Whelan, Ackerly, Sweet and Morgan. Voting no; Ambarian, Hudson and Elson. - .I JU 11 KENAI CITY COUNCIL, REGULAR MEETING, AUGUST 18, 1976 PAGE 13 Mayor Elson inquired as to where the donation would come from and was advised by Mr. Kinney that he would have to make a determination and present it at the next meeting. Councilman Ambarian stated he would still like to see the City have access to the Care Center's financial records. H-6: Planning a Zoning Commission's Report None H-7: Kenai Peninsula Borough Assembly's Report Mayor Elson reported that Ordinance 76-47, passed the Assembly and will be on the next ballot. Also, a OCS/CZM Report; week of August 22nd will be held at 2 p.m. in the Borough Building. A public hearing has been scheduled regarding a Piro Service Area North of the City of Seward and a joint meeting with the Anchorage Assembly has been set for September 7th in the afternoon. I. PERSONS PRESENT NOT SCHEDULED TO BE HEARD I-1: Mr. Kris Garcia Mr. Garcia came before Council to ask if the City would install signs at Cunningham Park advising the public of the park rules as his property, adjacent to the park, to being trespassed upon and much damage being done. Mayor Elson instructed Admimistration to look into the matter. LETTER OF RESIGNATION At this time, Mayor Elson acknowledged receipt of a letter of resignation from Councilman Hudson and presented Councilman Hudson with a Certificate of Appreciation for his outstanding service to the community and a corsage to Mrs. Hudson for her support of Councilman Hudson. At this time, a recess was called for a reception honoring the Hudson's. l' MEETING CALLED BACK TO ORDER BY MAYOR ELSON . G-8: Bid - 10" Water Line/Forest Drive ' G-12: Ratification of Award of Contract - EDA Water Well Project Mayor Elson brought these items back to the Council table for action. Mr. Aber explained the status of the project to -date with regard to the EDA Water Well Project and it is now necessary for the City to contact EDA to inform than if the City will } proceed with the construction of the well and lines at the City's risk. In the interim • the City will proceed with EDA, etc. to get the additional funding necessary for financing -- - '� Councilman Hudson out at 12: 00 Midnight KLNAI CITY COUNCIL, 1111GULAR M1411:TING, AUGUSTIS, 1976 PAG13 14 of the projects. idDA advises that it may take two months before they can got back to the City with regard to additional funding. Mr. Aber advised that the next stop would be the awarding of the contract to Itrown and Doyle in the amount of $393,904.80 for construction of the water line and awarding of the contract to Interstate for construction of the well in the amount of $675, 000. Mr. Aber advised that the City would have to come up with $345,680.50 if HDA does not increase their share. Mr. Aber further advised that the City had received a bid of $82,000 for the construction of the 10" water line along Forest Drive -- but the City must not jeopardize the reservoir construction as the reservoir takes higher priority. Mr. Aber further stated that he felt the Highway Department would not pave Forest Drive this year -- they will probable gravel and raise the surface and will pave next your. Mayor P.ison inquired if the City had to proceed with the Water Well and Lino project when the Public Works Bill was still in a questionable stago. Councilman Morgan stated he felt that the now well and line had number one priority. Mr. Kinney explained the financial situation -- Mayor Elson stated ho had reservations about the engineer and asked how realistic was the cash flow? Mr. Kinney stated he felt that the City was well covered. MOTION: Councilman Ambarian moved, seconded by Councilman Whelan, for award of bid for construction of the well to Interstate Construction in the amount of $075, 000 and award of bid to Brown and Doyle for the construction of the water lines in the amount of $303,004.80 and that the City's share for the projects was not to exceed $392,290.50, including past credits. Motion passed unanimously by roll call vote. Mr. Aber explained the proposed construction of the 10" water line running along Forest Drive and advised that this project should fall under 1074 bond issues. MOTION: Councilman Ambarian moved, seconded by Councilman Whelan, for authorization to Administration to proceed with the 10" Forest Drive Water Lino project in the amount of $81, 933. Mayor Elson suggested that the City call the Mate to see if they will aid in funding. Councilman Morgan stated he would vote against the motion as he felt that if the City proceeded with this project, it may run into trouble with regard to the proposed water reservoir. Councilman Ambarian stated that this project has to be done now or in the future at greater cost to the City. QUESTION: Motion passed by roll call vote. Voting yes; Whelan, Ambarian, Aekerly, and Elson. Voting no; Sweet and Morgan. There being no further business to be brought before the Council of the City of Kenai, Mayor Elson adjourned the meeting at 12: 45 p.m . Respectfully submitted, r�x C/lyQZ7 SudC, Peter, City Clerk