HomeMy WebLinkAbout1975-08-06 Council Minutesi
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RP.(IIILAlt AIEI:TIN(I, HUAI CITY COUNCIL
At1G11141' 6, 11175 • 0:0011.M.
PUBLIC HAFI:'1'Y ISU11.UiNG
PIX110E Oil ALLEGIANCP
A.
MOLL CALM
AOENDA APPROVAL.
R.
PUIILIC HEARINGS:
1. Orditanoo No. 268-76 - itinerant Merchants
2.
S.
C.
PERSONH PRP.HENT RCIIISUi1LF.D TO 11E IIP.ARI):
1. Mr. Oscar Thomas - Gaff Reserve Tax
2. Air. Edward Garnett - Public Uno Resolution on Foreclosed Lands
S.
D.
MINUTESs
1. Minutes of the Regular Meeting of July 10, 1070 i
2. Minutes - Ross-4 of Adjustment flooring of July 16, 1075
E.
CORRESPONDENCEs
1.
2.
P.
OLD BUSINESS: F,
1. Lease of City owned lands - American Legion f
2• Lease of City owned lands - Alasko Aeronautical Industries
a.
4.
6. I
4.
G.
1
NEW BUSWSSs
1. Bills to be paid - bills to be ratified 1
2. Civil Service Consmfsalon Salary Recommondatlons a Classification plan
S. Ordinance No. 200-73 - Uniform Codes
4. Ordinance No. M-75 -.OH Impact Funds
S. Did Acceptance - Ralo of Government Lot I
0. Bid Acceptance - Annual Custodial Services
7. Bid Acceptance - Petroleum Products
S. Council Approval - Kenai Community Library Construction Grant Agreement
0- Council approval - FDA Grant Submittal of $1,230,o00
1o, Knot Health Center
11. Lease of City Owned Lands s Facilities - Pisa persdisos
12, Public Use - Borough Perook sed Parcels
t
13. City Rhop Financing Proposals — WtZra•
14. Council authorization to place on ballot a proposition to realloaato bond
funds for water a sewer eonstruclien
16, Komi Community Library 141d
16. Alaska Public Utilities Commission • Ketlal Utility Service Corporation
I?.
It,
REPORTSs ,
1. City Msnager's Report
2. City Attorney's Report
S. mayor's Report
4, City Clark's Report
6. Finance Dlreetar?s Report
6. Planning a Zoning commission's Igo"
7. Ksnai Peninsula Borough Assembly's neprt
1.
PERSONS PRESENT NOT SCHEDULnD TO HE HEARD;
I.
2.
MINUTES, REGULAR MEETING
KENAI CITY COUNCIL
AUGUST 6. 1975 - 8: 00 P.M.
KENAI PUBLIC SAFETY BUILDING
The Council gave the Pledge of Allegiance.
ROLL CALL:
Present: O.L. Thomas, Edward Ambarlan, James Doyle, A. L. Hudson,
H. J. Steiner*, and James Elson.
Members Absent: Richard Morgan
AGENDA
APPROVAL:
The following were approved as additions or deletions to the agenda.
Delete - Item G-13 -- City Shop Financing Proposals
Add:
Item D-2: Minutes of the Board of Adjustment Hearing of July 16, 1975
Item F-2: Lease of City Owned Lands - Alaska Aeronautical Industries
Item G-15: Kenai Community Library Bid
Item G-16: Alaska Public Utilities Commission - K .0 . S . C .O.
B.
PUBLIC HEARINGS:
B-1:
Ordinance No. 268-75 - Itinerant Merchants
Roland Lynn, City Manager, advised that the Retail Merchants Association
of the Chamber of Commerce had worked with City Administration to preps re
an Ordinance to regulate itinerant merchants who pass through the City.
Mayor Elson opened the meeting to the public and there being no public
comment, the Meeting was brought back to the Council table.
MOTION:
Councilman Doyle moved, seconded by Councilman Thomas, for adoption
of Ordinance No. 268-75, Itinerant Merchants.
Council asked Administration how determination would be made as to
who falls under these categories as listed in the Ordinance of itinerant
merchants. City Attorney, Janis Williams, advised the Council that the
applicants would be reviewed by both she and the Chief of Police.
Chief Richard Ross advised the Council that this Ordinance is aimed
specifically at those merchants who come into town taking orders, cash In
advance, promise future delivery and then are never heard from again.
QUESTION:
Motion passed unanimously by roll call vote.
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KENAI CITY COUNCIL, MINUTES OF THE MEETING OF AUGUST 6, 1975 PAGE 2
C: PERSONS PRESENT SCHEDULED TO BE HEARD:
C-1: Mr. Oscar L. Thomas - Gas Reserve Tax
Mr. Thomas explained to the public that at the last session of Legislature
a gas reserve tax was enacted that will create a very serious situation
to the gas companies and the consumers alike. The present severance
tax of 2.5% of all oil and gas produced in the State will greatly be increased
and this increase will have to be passed onto the consumer. It is pertinent
that the City appoint either the City Manager or the City Attorney to act
as a designated official in the matter of the gas reserve tax and the hearings,
etc. that will be held between the suppliers and the State.
Council requested that Mr. Thomas supply them with all pertinent
information and material on the new gas reserve tax. Mr. Thomas also
advised that public Hearings will be held before the law goes into effect.
The Council instructed Administration to call a special meeting of the Council
when the matter comes up for public hearing and review.
As Mr. Thomas requested permission to be excused from the remainder of
the meeting, Mayor Elson, with approval of Council, adjusted the order
of business.
G-16: Alaska Public Utilities Commission - Kenai Utility Service Corporation
In the matter of the request by KUSCO that its interim rate increase
which became effective on July 20, 1975, now be made permanent, the
Council had no objections to bring forth on the matter.
G-7: Bid Acceptance - Petroleum Products
Administration advised the Council that the Petroleum bid was held on
August 1, and recommended acceptance of the bids as follows:
Doyle's Fuel (5% discount offered if payment made within 7 days of
delivery)
12,500 gallons non-leaded gasoline 46.12 cents/gal
5% discount - 43.81 cents/gal
33,000 gallons regular gasoline 45.12 cents/gal
5% discount - 42.86 cents/gal
25,000 gallons #2 diesel fuel 33.6 cents/gal
5% discount - 31.9 cents/gal
200 gallons kerosene 42 cents/gal
5% discount - 39.9 cents/gal
KENAI CITY COUNCIL, MINUTES OF THE MEETING OF AUGUST 6, 1975 PAGE 3
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Alaska Oil Sales, Inc.
5,000 gallons #1 stove oil 38.6 cents/gal
800 pounds RPM Lube 90 grease 30 cents/pound
400 gallons cleaning solvent 77.9 cents/gallon
55 gallons automatic transmission
fluid Type A $1.99/gal
500 gallons Anti -Freeze Glycol $3.95/gal
Standard Oil
500 gallons multi -machine oil ICH 9 $1.22/gal
800 pounds RPM multi -motive grease #1 36.75 cents/pound
1,200 gallons RPM #10, #20,#30,#40 $1185/gal
No bids were received for 60 gallons of degreaser.
Councilman Thomas asked H Administration could foresee any difficulties
with a 7 day payment. Mr. Lynn advised that Council would have to
authorize the Finance Department to go ahead and make payment and then
ratify payment at the next regular Council meeting after payment was made.
Councilman Ambarian asked Administration how the bids compared with
what was budgeted for these particular items and was advised that there
were sufficient funds available in the budget.
Councilman Doyle advised the reasons that so many different suppliers
bid on just specific items is that not all suppliers handle all the petroleum
products required by the City.
MOTION: Councilman Ambarian moved, seconded by Councilman Thomas, for acceptance
of the petroleum bids per the recommendation of Administration in the
City Manager's memorandum dated August 6, 1975.
Motion passed unanimously by roll call vote with Councilman Doyle
abstaining.
8:35 p.m. - Councilman Thomas excused from meeting at this time.
C-2: Mr. Edward Garnett - Public Use Resolution on Foreclosed Lands
Mr. Garnett came before Council to request a resolution be prepared by the
City stating they had no public use for a particular piece of land that had
been foreclosed upon by the Borough. His client, the foi .aer owner of the
property, desired to buy the land back, paying up all past due Borough
and City taxes, assessments, penalties, etc. The lot in question is Lot 4,
Block 4, Original Kenai Townsite.
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KENAI CITY COUNCIL, MINUTES OF THE MEETING OF AUGUST 6, 1975 PAGE. 4
Mr. Lynn advised the Council that the City deterwined that they had no
specific need for Lot 4, Block 4, Original Kenai Townsite and could foresee
no public use.
Council instructed the City Attorney to prepare a resolution for immediate
passage.
MOTION: Councilman Ambarian moved, seconded by Councilman Doyle, for adoption of
Resolution 75-32, designating that the City of Kenai has no immediate public
use for a certain parcel foreclosed on by the Kenai Peninsula Borough known
as Lot 4, Block 4, Original Townsite of Kenai.
QUESTION: Motion passed unanimously by roll call vote.
D. MINUTES:
D-1: Minutes of the Regular Meeting of July 16, 1975
The minutes were corrected as follows:
Page 7, Item G-6 American Legion lease -- show motion as made by Councilman
Steiner was voted upon and passed by roll call vote. Voting yes; Steiner,
Thomas, Ambarian, Doyle, Hudson and Morgan. Voting no; Elson.
The motion for reconsideration of the lease at the next regular meeting of
the Council as made by Councilman Doyle, had unanimous approval.
The minutes stood approved as corrected.
D-2: Minutes - Board of Adjustment Hearing of July 16, 1975
The minutes were approved as distributed.
E. CORRESPONDENCE:
There was No correspondence brought before the Council.
F. OLD BUSINESS:
F-1: Lease of City owned lands - American Legion
The lease to the American Legion on City owned lands was brought back
to the Council table for reconsideration.
MOTION: Councilman Hudson moved, seconded by Councilman Ambarian, for approval
of the lease to the American Legion at an annual rental rate of $3, 747.
KENAI CITY COUNCIL, MINUTES OF THE MEETING OF AUGUST 6, 1975 PAGE 5
City Attorney Janis Williams advised the Council that the motion for approval
of the lease had been made at the previous meeting -- the matter to be decided
now would be to reconsider the lease or to let it stand as approved at the
meeting of July 16, 1975.
Councilman Hudson, with approval of second, withdrew his motion.
MOTION:
Councilman Ambarian moved, seconded by Councilman Doyle, for
reconsideration of the lease to the American Legion.
Motion for reconsideration failed.
F-2:
Lease of City owned lands - Alaska Aeronautical Industries
Mr. Lynn had met today with the president of AAI and was advised that AAI
would correct their back payment situation within the next three weeks.
Administration recommended approval of the lease.
Councilman Ambarian stated he objected to the lease until all back payments
are made .
Council concurred and agreed the lease was not to be approved until such
time that AAI made payment in full of all past due amounts to the City.
G:
NEW BUSINESS:
G-1:
Bills to be paid - bills to be ratified
Administration advised that these were routine bills and payments to be
ratified and recommended approval.
MOTION:
Councilman Doyle moved, seconded by Councilman Ambarian, for approval
of the bills to be paid and the bills to be ratified.
Motion passed unanimously by roll call Grote.
G-2:
Civil Service Commission Salary Recommendation a Classification Plan
Mr. Lynn advised that this was the pay plan discussed in the work sessions
and Administration recommended the Council adopt the pay plan as discussed
and amended in the work session.
MOTION:
Councilman Doyle moved, seconded by Councilman Ambarian, to accept the
pay scale as amended by Council in its work sessions.
City Attorney advised that an Ordinance will be required to amend the
pay plan Ordinance.
Councilman Doyle, with approval of second, withdrew his motion.
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KENAI CITY COUNCIL, MINUTES OF THE MEETING OF AUGUST 6, 1975
MOTION:
G-3:
MOTION:
01 G-4:
E olo-0 E
G-5:
MOTION:
PAGE 6
Councilman Doyle moved, seconded by Councilman Hudson, for introduction
of Ordinance 271-75, rescinding the pay scale in the existing personnel
manual and substituting the pay scale as submitted by the U . S . Civil
Service Commission and amended in the work session of the Kenai City Council.
Motion passed unanimously by roll call vote.
Ordinance No. 269-75 - Uniform Codes
Mr. Lynn advised Council that this Ordinance was amending Chapter 4 of
the Uniform Building Codes to bring them into compliance with the changes
in the building codes.
City Attorney, Janis Williams, advised that this Ordinance had been put
together by C . R . Baldwin while he was City Attorney and was technically
approved by Mr. Baldwin, the Building Inspector, the Public Works Director
and the Fire Chief.
Councilman Doyle moved, seconded by Councilman Ambarian, for introduction
of Ordinance No. 269-75, Uniform Codes.
The motion was unanimously passed by roll call vote.
Ordinance No. 270-75 - Oil Impact Funds
This Ordinance was prepared to officially accept the impact funds received
from the State of Alaska as approved by the Governor of Alaska. Administration
recommended introduction and advised that the Council should hold a work
session concerning these funds.
Councilman Ambarian moved, seconded by Councilman Hudson, for
Introduction of Ordinance No. 270-75, Oil Impact Funds.
Motion passed unanimously by roll call vote.
Bid Acceptance - Sale of Government Lot 1
The auction on Government Lot No. 1, was held on Monday, July 21, 1975.
Not one bidder met the $40,000 minimum bid requirement, therefore, it was
the recommendation of Administration to reject all bids and the place the
parcel up for sale again.
Councilman Hudson, moved, seconded by Councilman Doyle, that all bids
received on Government Lot 1, be rejected.
Council unanimously agreed that the parcel should be put for sale as soon as
possible with a minimum bid of $40,000 plus assessments due on the property.
t
s 1,
KENAI CITY COUNCIL, MINUTES OF THE MEETING OF AUGUST 6, 1075 PAGE 7
One of the bidders, JBM Enterprises, requested permission to speak before
the Council (which was granted) and said it was their opinion that 16-20 acres
of the land was totally worthless and not worth the minimum bid amount of
$40,000, They also felt the city should make a stipulation to require the
developers of the land to tie into City water and sewer.
Mr. John Williams, also one of the bidders, stated he too felt that there was
approximately 16-20 acres of worthless land within the 40 acre parcel and
agreed that a requirement should be made by the City that all future development
of the property would include tying into City water and sewer lines.
QUESTION: Motion passed unanimously by roll call vote.
` G-8: Bid Acceptance - Annual Custodial Services
Three bids for annual custodial services were received by the City and only
two of the bids met the required bid specifications. Mrs. DeForest, City
Librarian, stated she wished to use student help for janitorial services at
the library. Councilman Ambarian stated he felt the fee for the use of Ft.
Kensy could possibly be increased to help alleviate the costs incurred for
janitorial service or use student help at Ft. Kenay as well.
MOTION: Councilman Ambarian moved, seconded by Councilman Doyle, for acceptance
of the bid from M-W Construction for janitorial services in the Kenai Terminal
Building.
Motion passed unanimously by roll call vote.
MOTION: Councilman Ambarian moved, seconded by Councilman Doyle, to reject all
bids for janitorial service on the Library, Ft. Kenay and the Public Safety
Building.
Motion passed unanimously by roll call vote.
G-8: Council Approval - Kenai Community Library Construction Grant Agreement
Mr. Lynn advised that the State Division of Libraries had contacted him and
stated that there was some question if the City of Kenai will receive any grant
funds on the library construction project. However, he recommended approval
of the grant agreement so that he could send it into Juneau as soon as possible
and try to hold them to their previous agreement.
MOTION: Councilman Ambarian moved, seconded by Councilman Doyle, for approval of
the Grant Agreement in which the State would furnish funds in the total
amount of $330,435.
Motion unanimously passed by roll call vote.
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KENAI CITY COUNCIL, MINUTES OIL THE. MEETING OF AUGUST 0, 1076 PAGE S
Il -
a-9: Council Approval - EDA Grant Submittal of $1,230,000
Mr. Lynn advised that he had met with EDA officials in Anchorage and it
was unanimously decided that the magnitude of the project would require
a total project of $1, 230, 000. This would include a now water well next to
the test well, running the main across the Spur Highway to intersect with
the existing mains and the up -grading and covering the water reservoir.
Mr. Lynn further stated that in order to got the funds from the EDA, we may
have to meet the requirement of installing water meters.
Mayor Elson stated he felt the Council needed time to review the project
application and determine what magnitude of project would be required.
Council instructed Administration to furnish all Council members with a copy
of the proposed project for their review and that the matter be put on the
agenda of the next regular Council meeting.
a-10: Kenai Health Center
The State Department of Health and Social Services questioned the
proceeds of the sale of land to Carrs and felt more monies should be forth-
coming to the Health Center.
Administration advised that the City had conducted an audit and there were
no monies still available and invited the Health Center to audit the records
of the City.
10: 30 p. m. Councilman Steiner in at this time.
a-il: Lease of City owned lands & facilities - Pizza Paradisos
Th!a
lease of Lot IA, Deshka Subdivision, has been reviewed by the Planning
Commission and Administration recommends approval by the City Council.
MOTION: Councilman Ambarian moved, seconded by Councilman Hudson, for acceptance
of the lease to Mr. Konstantinos Macheras d/b/a Pizza Paradisos.
Motion passed unanimously by roll call vote.
MOTION: Councilman Hudson moved, seconded by Councilman Steiner, for immediate
reconsideration.
Motion passed by roll call vote. Voting yes; Doyle, Hudson, Steiner, and
Elson. L'cting no; Ambarlan.
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i KENAI CITY COUNCIL, MINUTES OIL Till?, MEETING OF AUGUST 0, 1975 PAUL? 9
Councilman Iludson stated he felt that Schedule A attached to the lease
requesting the option of an additional 20 year loose period upon termination
of the 55 your lease, was not per standard City procedure on the terms of lease
and questioned the reason for the longer i cried of time being extended.
MOTION: Councilman Doyle moved, seconded by Councilman Steiner, to amend the
main motion by deleting Schedule A of the lease to Pizza Paradisos,
Amendment to the motion passed by roll call vote. Voting yes; Doyle,
Hudson and Steiner, Voting no; Ambarian and Elson.
The main motion as amended passed by roll call vote. Voting yes; Doyle,
Hudson, Steiner and P,lson. Voting no; Ambarian,
0-14: Council authorization to place on ballot a proposition to reallocate bond
funds for water a sewer construction
Administration requested that the Council approve this item to be placed on the
ballot a reallocation of $100,000 from one area to be designated to water and
sewer. Those funds would aid in the FDA project of construction of the new
well, running a line across the Spur Highway and tying into existing
water mains and the up -grading of the water reservoir and the covering of
the water reservoir.
Mayor Flson stated he would still like Council to review the proposed project
and make determination as to the scope of the project prior to any authorization
to place on the ballot a proposition to reallocate bond funds.
Councilman Steiner stated he was in opposition of placing this on the ballot.
Mr. Lynn advised that he had filed the proposed FDA project preapplieation
so that the City would be considered before all the funds were used up.
0-15: Kenai Community Community Library
The Kenai Community Library Project bid opening was held on August 5,
and the apparent low bidder was Coastal-8amblo. If all alternates were
deducted, the apparent low bidder would be Sandland Construction.
Councilman Doyle stated he felt the City should go for the entire project
and not accept the alternates as the items deleted would be needed eventually .
Council requested the matter of the acceptance of the Kenai Community
Library Project bid be placed on the agenda of the August 20, 1975, meeting.
MOTION: Councilman Ambarian moved, seconded by Councilman Doyle, that if the
Kenai Community Library is to be built, it will be built per the bid drawing
with no alternates.
Motion passed unanimously by roll call vote.
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KL'NAI CITY COUNCIL, MINUTUS OF THE MEETING OF AUGUST 0, 1075 PAGE 10
REPORTS:
City Manager's Re
gvrt
Mr. Daubenspeck has contacted the City regarding the three FAA houses
and utility house on his property. Mr. Daubenspeck has offered to sell the
houses to the City. However, he also offered to give the City an casement
(for vehicle travel) to the utility house. Council instructed Administration
to accept Mr. Daubenspeck's offer to grant the City an casement.
The Highway Department contacted the City and asked that the City work
out an agreement with the State whereby the City would be responsible
for the repair of the lights on the highway. Administration recommends that
the City not take on the responsibility and leave it in the hands of the State
Highway Department,
The Highway Department also requested that the City enter into an agreement
wherein the City would remove and destroy abandoned and Junk vehicles
along the highway and negotiate with the State for payment on the scrap metal,
At this time, the City would need more details before entering into an agree-
ment.
Planning procedures will be presented at the next regular meeting of the
Council.
The auction of surplus vehicles will be he14 at 10:00 a.m., Saturday,
August 23,
A check in the amount of $26, 763.86 has been received from B .O ,R ,
Work session of the City Council -- Monday, August llth, at 7: 30 p.m. in
the City Manager's Office.
H-2: City Attorney's Report
Will start on the Code next week and should have it ready for introduction
at the first meeting in September. Contacted Attorney Karl W alter and there
is still no decision in the Filler vs. City matter. Was contacted by an
attorney in Anchorage who is representing employees of the City regarding
the matter of City employees living outside the City limits.
H-3: Mayor's Report
Mayor Elm submitted the names of four members for the Harbor
Commission. The fifth name will be supplied by the Planning a liming
Commission.
H-4: City Clerk's Report
NO Report
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KENAI CITY COUNCIL, MINUThS ON THE MEETING OF AUGUST 6, 1975 PACK 11
llp5: Finance Director's Report
The auditors will be back on Monday to resume the audit. The utility
companies have contacted the City and asked if they should contact
the City should the utilities of various City owned facilities not be
kept up by the Lessee. Council advised Mr. O'Connor to have the
utility companies contact the City should the utilities have to be shut off
for lack of payment.
H-0: Planning a Zoning Commission's Report
At the July 23rd meeting, the Chamber of Commerce presented their plan
for the Bicentennial Park. Mr. John Steinbeck's application for lease of
a lot was returned for lack of information. A car wash and camper park
on Deshka was turned down for lack of information on application.
Mr. David Diamond of Andy'a application for float plane basin was returned
for further information. The Commission held a work session and
inspected the gravel pits on Beaver Loop Road. The Commission should
have gravel pit regulations for Council review by next meeting of the Council.
H-7: Kenai Peninsula Borough Assembly's Report
Councilman Steiner advised that the Borough had reduced its sales tax
from 3% down to 2%. The schematics for the Seward High School were
presented and accepted upon concurrence of the Advisory Committee.
An Ordinance will be heard at the next Borough Assembly meeting
providing real property tax exemptions in the amount of $10, 000 for
residential property owned and occupied by residents.
I. PERSONS PRESENT NOT SCHEDULED TO BE HEARD:
None
There being no further business, Mayor Elson adjourned the meeting
at 11: 45 p.m.
Respectfully submitted,
du O�' �-O� —,
Actin City Clerk