Loading...
HomeMy WebLinkAbout1974-03-06 Council MinutesA G E N D A - REGULAR MEETING, KENAI CITY COUNCIL MARCH 6, 1974, 8:00 P.M. KENAI LIBRARY PAGE PLEDGE OF ALLEGIANCE A: ROLL CALL B: PUBLIC HEARINGS B - 1: Ordinance 239-74 - Appropriating funds for FY 1973/74 1 B - 2: Ordinance 240-74 - Special Deferment 1 fi B - 3: O•rdinanco 241-74 - In lieu of Assessments 2 C: PERSONS PRESENT SCHEDULED TO BE HEARD: 1. Dick Peck - Generator to H.E.A. 2 2. Airport Fencing 2-3 3. Bond refunding 3-4 4. , D: MINUTES 4 1. Minutes of Regular Meeting, H - 2: City Attorney's Report 5 E: CORRESPONDENCE NONE 1. 2. S. F: OLD BUSINESS l* Notice of Reconsideration -Mike Huss-Lease-Etolin S/D S 2. Price suggestion on fuel DEFERRED 3. �J S. 6. 7. 8. G: NEW BUSINESS 1. Bills to be paid - bills to be ratified 6 2. Ordinance 242-74 - Exceptions on purchasing in 6 excess of $500.00 3. Bond refunding proposal 3-4 4. House Bill 445-Relating to Platting Powers 6 F of Municipalities S. Airport Fencing -Authorization to go to bid 2-3 6. Resolution 74-IS - Transfer of $7,801.04 from Trust $ 6 �.' Agency Fund to the Airport Land Fund 7. Generator to N.E.A. 2 .9. City Attorney 5 11. 12. ----- 14. is H: REPORTS 7 1. Cit Mt�ager's Report ea ng File _. .. a. 5 b. c. d. 3. Mayor's Report NONE 4. City Clerks Report NONE S. Finance Director's Report 7-8 6. Planning $ Zoning's Report g r 7. Borough Assemblymen's Report g I: PERSONS PRESENT NOT SCHEDULED TO BE HEARD: NONE 1. 2. i 3. r) f') MINUTES KENAI CITY COUNCIL REGULAR MEETING MARCH 6, 1974 8:00 P.M. KENAI LIBRARY The Council gave the Pledge of Allegiance. ROLL CALL: Members present - H . J . Steiner, A. L. Hudson, C.E. Johnson, Tru McGrady, and Vice Mayor James Doyle. Members absent - Robert Norene and Mayor John Steinbeck. There were no objections from Council to adding Agenda Item G - 8 - City Attorney and moving Agenda Item G - 7 - Generator to H.E.A., to C - 1, moving Agenda Item G - 5 - Airport Fencing - Authorization to go to bid, to C - 2 and Agenda Item G - 3 - Bond refunding proposal, to C - 3. B: PUBLIC HEARINGS B - 1: Ordinance 239-74 - Appropriating funds for FY 1973/74 The City Manager stated the Administration recommends continuing the hearing on this ordinance for one more hearing. Administration had a meeting with F.A.A. in relationship to this and they are checking with their attorney. A paying procedure maybe worked out Instead of paying a lump sum. Vice Mayor Doyle recessed the meeting and opened it for a public hearing. There being no public participation the public hearing was closed. Johnson moved and Steiner seconded to continue the hearing on Ordinance 239-74. The motion carried unanimously by roll call vote. B - 2: Ordinance 240-74 - Special Deferment Vice Mayor Doyle recessed the meeting and opened it for a public hearing on Ordinance 240-74. There was no public participation and the public hearing was closed. Johnson moved and Steiner seconded to adopt Ordinance 240-74 - Special Deferment. The motion carried by roll call vote with McGrady dissenting. •T MINUTES, KENAI CITY COUNCIL MEETING, MARCH 6, 1974 Page two i B - 3: Ordinance 241-74 - In lieu of Assessments ' Vice Mayor Doyle recessed the meeting and opened it for a public hearing on Ordinance 241-74. Mr. Glad asked how this would affect a person getting a classified fire rating if they are 1,000 ft. from a hydrant. Mr. Navarre stated we did not take into consideration the fire districts. It could affect the fire rating. There being no further public participation, the public hearing was closed. Steiner moved and McCrady seconded to adopt Ordinance 241-74 - In lieu of Assessments. The motion carried unanimously by roll cal vote. C: PERSONS PRESENT NOT SCHEDULED TO BE HEARD: C - 1: Dick Peck - Generator to H . E.A. Dick Peck reported H.E.A. is in an unique situation. They are to have power In by late winter in English Bay by running a cable from Port Graham, stringing the cable on the trees. The trees have been sold. Alaska State Housing Authority told the contractor they need electric power for six new homes. If there is no power, there will be no homes, and there will be no trees to string the cable. The City of Kenai has a generator H.E.A. would like to borrow for six months. H.E.A. has reliable power for Kenai via the trans- mission line, the feed from North Kenai and the feed from Soldotna. " Mr. Navarre stated we don't have to have a standby at the airport anymore. we do have a 150 standby in extreme emergency. Mr. Navarre recommends we help H.E.A. out and loan them the generator for a six months period with an agreement it will be returned in as good or better condition and reserve ` the right to withdraw it under extreme emergency. Johnson moved and Steiner seconded to authorize the City Manager to enter into an agreement with H . E.A. for a six months period. The generator to be - returned In as good as or better condition as received and could be withdrawn in extreme emergency. The motion carried unanimously by roll call vote. C - 2: Airport Fencing - Authorization to go to bid Mr. Navarre stated the Engineers on this project are here tonight. We have f the okay from F.A.A. The project will be Federally funded 621% and State 1 371%. He would like the authority to go to bid tomorrow. He further stated we anticipate an addendum to take care of expansion for a commerical type apron on the other side of the tower, maybe 1, 000 foot of fence. The addendum will be prior to the pre -bid conference. We anticipate advertizing for not less than 30 days. The bid will be in 2 forms ; 1) cost per project basis ti 2) unit price for additions or deletions. i� r MINUTES, KENAI CITY COUNCIL MEETING, MARCH 6, 1974 Page three C - 2 - Airport Fencing - continued C - 3: Frank Wince, of Wince, Cortheil E Associates stated the bid is so that the project may be bid under two contracts. The clearing, grading and signs under one and the fencing separate or they may be lumped together. Johnson moved and McCrady seconded to authorize the City Manager to go to bid on the Airport Fencing project. The motion carried unanimously by roll call vote. Bond refundina proposal Mr. Navarre stated the bond refunding is nothing new but is new to us. Mr. Chen went over the last proposal at 11: 00 this morning. Mr. Chen stated the City has a yearly budget of 1.7 million a year. The total debt service for a year is $600,000. which is our largest burden. In evaluating the proposals, Mr. Chen used the following criteria: 1. legal requirements of refunding proposals 2. annual savings 3. total savings 4. current City's financial needs The City received a total of nine proposals from three firms: Seattle First National Bank, Seattle Northwest S Marshall 6 Mayer. Mr. Chen recommends Schedule A - 1 from Seattle First National Bank. The City would save $228,537.29. The major savings appear In the first eight years. Mr. Navarre stated the proposal is dated for April 1st and will require an emergency ordinance at the next meeting. Mr. Edmunds from Seattle First National Bank stated his firm is doing advance refunding in the State of Washington. The prime reason is I.R.S. regulations allow municipalities to refinance bonds in advance of re -call date at a lower rate. These bonds have a 1981 call date. They can be refinanced in 1981 If the rates are lower. The bond counsel will varify all transactions. It is a complicated process. Mr. O'Reilly stated it is like going through life the second time. He recommends you look very carefully to see if the trustee is fully qualified. The early savings Is a good feature. It is a good program to get involved in and they are a good trustee. 1 L MINUTES, KENAI CITY COUNCIL MEETING, MARCH 6, 1974 Page three C - 2 - Airport Fencing - continued C - 3: Frank Wince, of Wince, Cortheil E Associates stated the bid is so that the project may be bid under two contracts. The clearing, grading and signs under one and the fencing separate or they may be lumped together. Johnson moved and McCrady seconded to authorize the City Manager to go to bid on the Airport Fencing project. The motion carried unanimously by roll call vote. Bond refundina proposal Mr. Navarre stated the bond refunding is nothing new but is new to us. Mr. Chen went over the last proposal at 11: 00 this morning. Mr. Chen stated the City has a yearly budget of 1.7 million a year. The total debt service for a year is $600,000. which is our largest burden. In evaluating the proposals, Mr. Chen used the following criteria: 1. legal requirements of refunding proposals 2. annual savings 3. total savings 4. current City's financial needs The City received a total of nine proposals from three firms: Seattle First National Bank, Seattle Northwest S Marshall 6 Mayer. Mr. Chen recommends Schedule A - 1 from Seattle First National Bank. The City would save $228,537.29. The major savings appear In the first eight years. Mr. Navarre stated the proposal is dated for April 1st and will require an emergency ordinance at the next meeting. Mr. Edmunds from Seattle First National Bank stated his firm is doing advance refunding in the State of Washington. The prime reason is I.R.S. regulations allow municipalities to refinance bonds in advance of re -call date at a lower rate. These bonds have a 1981 call date. They can be refinanced in 1981 If the rates are lower. The bond counsel will varify all transactions. It is a complicated process. Mr. O'Reilly stated it is like going through life the second time. He recommends you look very carefully to see if the trustee is fully qualified. The early savings Is a good feature. It is a good program to get involved in and they are a good trustee. 1 L MINUTES, KENAI CITY COUNCIL MEETING, MARCH 6, 1974 Page four C - 3 - Bond refunding proposals - continued 19 k-:�) Mr. Evans stated the Audit 8 Budget Committee weren't notified until 4: 30 P.M. and was too late for a meeting to discuss It. His own personal reservations Is he is reluctant to get excited about an emergency situation. He has checked the Charter and feels there may be a legal problem. Mr. Stetler stated he had nothing to add. He doesn't understand the mechanics. We have had no chance to look at it and is not fair to ask for an opinion without knowing more about it. Mr. Navarre stated we are using our bond counsel not their counsel. If its not legal we won't do anything. Mr. Edmunds stated if your bond counsel does not approve, we are subject to loss, not you. Vice Mayor Doyle stated he wouldn't vote in favor until the Budget 6 Audit Committee goes over it. Councilman Hudson stated if Administration is working on something of this magnitude, Council should be informed. After more discussion, Steiner moved and Johnson seconded to take a positive action and to have an emergency ordinance prepared for two weeks hence. After more discussion Council asked Mr. Edmunds if his proposal would be firm if Council could inform him before the close of business Friday so Council could have a special meeting with the audit committee. He stated if he knew by Friday the proposal was firm. Steiner, with consent of second, withdrew his motion. Johnson moved and Steiner seconded a special meeting be held Friday noon with the Audit 8 Budget Committee in the City Manager's office for the purpose of discussion and action, final approval or disapproval of the bond refunding proposal. Unanimous consent was asked and granted. Steiner moved and Johnson seconded to take positive action tonight and bring forth an emergency ordinance two weeks hence, subject to final approval Friday. The motion carried unanimously by roll call vote. MINUTES The Minutes of the Regular Meeting of February 20, 1974, were approved as corrected. Page 8, H - 1 (a) to read "..... only allows patrolmen or a person designated by the City Manager, to shoot a dog in an emergency". PON MINUTES, KENAI CITY COUNCIL MEETING, MARCH 6, 1974 Page five H - 2: City Attorney's Report Mr. Fisher stated that on the basis of a discussion with the City Manager, he submitted a protest on the K.U.S.C.O. tariff revision. One week period was permitted for consideration and that is not sufficient time. There should be 30 days notice. He further stated the City was served with an injunction Monday, March 4th -lC on local improvement district #8. Kenai Prrope t� 0 ers ciati n files. the injunction March 1, 1974. Mr. Fisher r�; 1 fhA additional legal service to handle the entire matter or 2) to hire legal service to assist the City Attorney or 3) City Attorney do all the response required at this time. The fourth alternative is the present City Attorney take actions required at the present and co-operate with the in staff attorney. The suit was filed in Anchorage and maybe we should request it be moved here. { Mr. Navarre stated perhaps we should go for a specialist in this field. Mr. Fisher stated if it were turned over to an outside firm it might go far slower than it should. He hopes to have a written memo on this. Mr. Fisher reviewed Resolution 74-15 briefly and does not recommend any action be taken relating to the money held for the first years. Mr. Navarre stated he discussed this with F.A.A. and they agree it should be in the Airport Fund. With consent of Council, Agenda Item G - 8 - City Attorney will be heard at this time. G - 8: City Attorney Mr. Navarre stated Council was sent all the resumes. He recommends hiring Henry Hoist. His salary would be $30,000 a year. He would need secretarial support from our typing pool, a legal library; McQuillans Municipal Law, State Statutes, Administrative Code, a desk, paper and pencil and a direction from Council not to look at favoritism and live and abide by the law. Steiner moved and Johnson seconded Council that Council hire Mr. Henry Hoist as City Attorney. The motion carried unanimously by roll call vote. F: OLD BUSINESS F - 1: Notice of Reconsideration - Mike Huss - Etolin S/D Hudson moved for notice of reconsideration - Mike Huss - Etolin S/D. The 4 motion died for lack of a second. MINUTES, KENAI CITY COUNCIL MEETING, MARCH 6, 1974 Page six I F - 2: Price suggestion on fuel To be put on the next Agenda. G: NEW BUSINESS Bills to be paid - bills to be ratified McCrady moved and Steiner seconded to approve payment of the bills and ratify payment of the bills listed on the memo of March 6, 1974. The motion carried unanimously by roll call vote. G - 2: Ordinance 242-74 - Exceptions on purchasing in excess of $500 00 Johnson moved and Steiner seconded for the introduction of Ordinance 242-74 - 1 exceptions on purchasing in excess of $500.00, the final hearing to be held In two weeks. The motion carried unanimously by roll call vote. G - 3: Bond refunding proposal Heard under C - 3. G - 4: House Bill 44S - Relating to Platting Powers of Municipalities Mr. Navarre stated this was put on the agenda If Council wants to take action. There are some advantages and disadvantages. The large subdividers should have some responsibility to dedicate open lands or parks. It Is an expense for small subdividers. Mr. Clad stated the Kenai Peninsula Board of Realtors did object because it is j t unfair to small subdividers. Councilman Steiner asked how soon do we need to reply. This should go to Planning 8 Zoning for a recommendation. Mr. Navarre stated you don't know when this will pop out of the committee. Councilman Steiner felt Administration ' should be directed to write a letter that House Bill 44S Is under consideration of the Planning E Zoning Commission and will have a reply within two weeks. There were no objections. G - 6: Resolution 74-15 - Transfer of $7, 801.04 from Trust E Agency Fund to _._ the Airport Land Fund Johnson moved and Steiner seconded to adopt Resolution 74-15 - Transfer of $7,801.04 from Trust 8 Agency Fund to the Airport Land Fund. The motion carried unanimously by roll call vote. L.. - L MINUTES, KENAI CITY COUNCIL MEETING, MARCH 6, 1974 Page seven G - 7: Generator to H.E.A. Heard under Agenda Item C - 1. G - 8: City Attorney Heard after H - 1 - City Attorney's Report. H: REPORTS H - 1: City Manager's Report Mr. Navarre was not aware the reading file wasn't brought to Council for their perusal. It will be available at each Council meeting in the future. There will be a public hearing on the Kenai Boat Harbor, Thursday, March 7, 1974 at 7: 30 P.M. in the Borough building. He further reported the Mayor's Committee on History and Tradition had a meeting last night. They are an active group. They need dollars to restore Fort Kenay, on a piece meal basis. Their priority is the wood shingles and getting the fence up. Hopefully the fence can be put up by force account. Mr. Navarre stated he talked with Seattle & Juneau on the funding on WPC-AK- 35. Mr. Anderegg is going to send back any papers missing. Five other projects will go into the Clearinghouse next week. H - 3: Mayor's Report No report. H - 4: City Clerk's Report No report. H - 5: Finance Director's Report Mr. Chen reported the cash flow is improving. He usually has the monthly report out to Council by this time but he has been working on the refunding program. He further reported the City Manager received a proposal from the auditors. The cost will vary in the amount of time they spend and the amount of help we give. The proposal not to exceed $17,000. W MINUTES, KENAI CITY COUNCIL MEETING, MARCH 6, 1974 Page eight H - 5 - Finance Director's Report - continued Councilman Hudson asked if they were going to audit the Capital Improvement Projects. Mr. Chen stated it Is advisable to do most of that In-house because of the dollars spent on force account that are chargeable to these projects. Audits have been made on the Public Safety Building, Airport project, Sewer Treatment Plant and the interceptor line. Councilman Hudson stated he had some questions in mind, like the expenditure up to $30, 000 on the race track and gun club. That money spent Is not shown and was not a donation. Mr. Chen stated he intends to straighten this out. Mr. Navarre stated he has looked into the racetrack lease. We pay $1,800 lease annually and $2,100 insurance annually and no value returned. He is investigating turning the lease back. Councilman Hudson asked the progress on the baseball project. Mr. Navarre stated it looks good. The Association is handling it and it is moving ahead. H - 6: Planning E Zoning's Report Commissioner Hudson reported the Commission granted a utility r.o.w. between Lots 4 6 5, Block 5, CIIAP along with the use of an old City quonset but to Glacier State with the stipulation when the lease is up on Lot 4 they get rid of the quonset hut. The Commission was not clear on exactly what H.E.A. wants as far as the r.o.w. easement and have asked them to come to the next meeting. There was a public hearing on the vacation of a portion of 31st Street and there were no objections. ' H - 7: Borough Assemblymen's Report i f Assemblyman Johnson reported on the last Assembly Meeting. The Assembly passed Ordinance 74-5 - making a supplemental appropriation to the emergency employment act through December 31, 1973. Ordinance 74-7 - making a supplemental appropriation to the South Kenai Peninsula Hospital Association was introduced and the hearing was set for April 2, 1974. Carl Hille reported on proposals coming in an advance bond refunding. Resolution 74-16 regarding Lake Clark National Park was passed. Resolution 74-17 - Roads and Trails - requesting State refunding passed. Resolution 74-18 regarding the death penalty passed with a notice of reconsideration being filed. is PERSONS PRESENT NOT SCHEDULED TO BE HEARD: t None. MEETING ADJOURNED 11:20 P.M. Respectfully submitted, Karroo o 1, City Clerk