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HomeMy WebLinkAbout1973-06-13 Council Minutes - Special MeetingA_GEN_DA_ SPECIAL MEETING, KENAI CITY COUNCIL i JUNE 13, 1973, 8:00 P.M. i FORT KENAY PLEDGE OF ALLEGIANCE l A: ROLL CALL DECLARE AN EMERGENCY MEETING I B: PUBLIC HEARINGS I B-1: PUBLIC HEARING -BUDGET -CITY OF KENAI-1973-74 i �1 G: NEW BUSINESS r 1. Ordinance 225-73 - Adopting Budget-1973-74 I . i i k i i t i t i MINUTES ' KENAI CITY COUNCIL SPECIAL MEETING BUDGET HEARING JUNE 13, 1973 8:00 P.M. Mayor Steinbeck brought the meeting to order at 8:00 P.M. at the City Administration Office. ROLL CALL: Members present - C.E. Johnson, H. J. Steiner, James Doyle, Robert Norene and Mayor John Steinbeck. Members absent - Tru McCrady *, and James Hornaday *. Norene moved and Steiner seconded to declare this meeting an emergency meeting. The motion carried unanimously by roll call vote. Mayor Steinbeck recessed the meeting to be re -opened at Fort Kenay. Mayor Steinbeck re -opened the meeting at 8:15 P.M. at Fort Kenay. * Tru McCrady and James Hornaday are present at this time. The Council gave the Pledge of Allegiance. Mayor Steinbeck turned the meeting over to the Acting City Manager, George L.Jaynes. Mr. Jaynes explained the Revenues and went through the Expenditures page by page. Mayor Steinbeck invited the Mayor's Committee on Audit, Budget and Finance to join them at the Council table. Carl Hille, Dick Stetler, George Whyel and Art Evans came forward. Councilman Hornaday asked how many employees are working now and how many will be working after July 1, 1973? He was told there are now 60 + and will be 43. A reduction of 15 to 18 employees. It was the consensus of Council to go through the budget page by page for the public hearing. Mayor Steinbeck recessed the meeting and opened it up for a public hearing. He asked everyone to state their names and if a city employee, so state. MINUTES, KENAI CITY COUNCIL MEETING, JUNE 13, 1973 Page two Budget Hearing - continued Communiciations Center Mr. Bielefeld stated the City has a switchboard, shouldn't this reduce the cost of phone service. The communications have a private line to the F.A.A. and the State Police. Mr. Jaynes stated the switchboard could be turned back but at a penalty of $6,000. Corporal Ross of the Police Dept., asked why there was no labor figures in. He asked how can people get ahold of firemen and policement at 2: 00 or 3: 00 In the morning. Councilman Doyle stated there is no way the policemen and firemen can dispatch and still do their jobs. Ruby Coyle asked if the Wildwood contract is included in the budget. Mayor Steinbeck stated it is not in the budget as we are not sure it will be renewed. George Robinson stated you have $6, 900 budgeted for communications. Last year you contracted the service at a cost of $2, 400 per year. Councilman Doyle stated this communications system serves many departments, fire, police, water and others. It has a bearing on the fire rating. Mr. Morin asked what was the cost of the communications center. Councilman Doyle stated $112,000 which includes a F.A.A. grant. Mr. McCann stated it was quite an investment and has to be manned for fire and police protection. Lee Glad stated since the dispatchers help to determine the fire rating and 4 dispatcheers. would be equal to one mill, he would rather pay the one mill rather than the increased insurance.. Ruby Coyle stated she would agree in the down town area where people are on the hydrants. There should be some equity. Legislative - No public comments. Shop - No public comments. IL . - MINUTES, KENAI CITY COUNCIL MEETING, JUNE 13, 1973 Page three Budget Hearing - continued Judicial Mr. Bielefeld asked if the City Attorney was on a retainer or in the budget. He was told he is in the budget. City Administration Ruby Coyle asked can't the Finance Director work as City Manager. Councilman Hornaday stated that historically, the auditors recommend a full time Finance Director. Councilman Norene related that Public Works has been incorporated with Administration with a savings of $26, 000. Ruby Coyle stated she wants to go on record as stating she requests the Finance Director, as an individual, go under Council's control not Administration's. She was told there is such an Ordinance before Council at this time. Mr. Morin asked why the Mayor's Audit Committee was appointed. Mayor Steinbeck stated they were appointed to get expertise help to guide them through the budget. Mr. Morin asked if they have done a service. Mayor Steinbeck reported, very much so. Mr. Morin stated he heard the audit from Touche Ross cost $150,000. How many years does this involve? He further stated in November in 1971, Clyde Sherwood completed an audit and billed the City for $25,000. O.O. Robbins had the figure reduced to $17, 500. He further stated he thinks the Touche Ross bill was for 2 years. Councilman Doyle stated the preceding audits were not accurate and they had to go back to the inception of the City. Mr. Oberts stated the other audits were not acceptable to the bond companies. Dept. of Revenue - No pulbic comments. Finance Dept. - No public comments. Police & Animal Control - No public comments. a -, MINUTES, KENAI CITY COUNCIL MEETING, JUNE 13, 1973 Page four Budget Hearing - continued. Fire Dept. Ruby Coyle asked If the fire equipment were geared to hydrants and what equipment is available for those not on hydrants. Chief Wisecarver stated the engines all have a carrying capacity to protect those off the water system. Mr. Williams stated as to the question of selling the fire engine, it would greatly hinder the growth of the entire City. if the LNG plant goes and brings in more people, and you sell the truck, in a year you will have to order another and wait a year for delivery at a much greater price. Councilman Hornaday stated he wants to cut the dispatchers and the fire -� truck. The truck should not have been purchased. Streets Mr. Morin asked how much money was allotted streets in the Capital Improvements Projects. Mr. Jaynes reported roughly $350, 000. ' Mr. Morin asked how much was spent. -J Mr. Jaynes stated he cannot give a dollar amount. The streets improved were Linwood Lane, Tinker Lane, the road behind the high school and a few others. Building Inspector - No public comments. Health Center - No public comments. Fort Kena - No public comments. Library - No public comments. Recreation - No public comments. Fine Arts Mr. Bielefeld stated he felt the old fire hall should be declared surplus and help pay the burden on the new Public Safety Building. Now it is an added burden. Ruby Coyle stated she felt the old public safety building should be used for the City Hail and rent the space in the airport to increase the revenue. Mr. McCann felt Mrs. Coyle had a point, bring City Hall back where people can walk in. r� MINUTES, KENAI CITY COUNCIL MEETING, JUNE 13, 1973 Page five Budget Hearing - continued Council on Aging - No public comments. Non -Departmental Mr. Jaynes stated no Capital Improvement monies are included in this budget. Carl Hille stated the Budget Committee has recommended the City proceed with extreme caution with the Capital Improvements until the status of the funds are known. Airport Terminal b M/O - No public comments. Water/Sewer Ernie Klelnelck, Water & Sewer Foreman stated that up until this time the water and sewer department was on standby 24 hours a day, 7 days a week. This was to Insure ample supply of water, take care of emergencies, etc. Mr. Glad asked if there were any contingencies in this budget. Mayor Steinbeck reported no, this has no fat, a bare bone, hard budget. Mayor Steinbeck recessed the meeting for ten minutes. Mayor Steinbeck called the meeting back to order at 10:55 P.M., closed the public hearing and brought it back to the Council table. The Council consented to go through the budget page by page. Communications Hornaday moved and Steiner seconded to fund the Communications Center as proposed at $6,930. The motion failed with Johnson, McCrady, Doyle, Norene and Steinbeck dissenting. Norene moved to increase the Communications budget by adding 2 dispatchers at $27,720 to the $6,930. The motion died for lack of a second. Johnson moved and Doyle seconded to fund the Communication Center $48,510 -to include 4 dispatchers at $750 per month. The motion carried with Hornaday and Steiner dissenting. MINUTES, KENAI CITY COUNCIL. MEETING, JUNE 13, 1973 Page six Budget Hearing - continued Legislative Hornaday moved and Doyle seconded to fund the Legislative budget in the amount of $13, 600 decreasing the audit by $5, 000 and deleting the travel. The motion carried unanimously by roll call vote. Shop Steiner moved and McCrady seconded to adopt the budget as presented by Administration in the amount of $96,782. Norene moved and Johnson seconded to amend the motion cutting $5,000 from special departmental expenses (small tools, petroleum products, tires, s parts) and cutting $5,000 from contracted repairs & maintenance (outside repair) . The amendment carried unanimously by roll call vote. The main motion, as amended, carried unanimously by roll call vote. Judicial Norene moved and Doyle seconded to fund the Judicial budget in the amount of $23,169, cutting $10, 000 from the Attorney's fee. McCrady gave a subsidiary motion to raise the Judicial budget up to $30,169. It was seconded by Johnson. The motion failed by a tie vote. Voting yes, Johnson, McCrady and Steiner. Voting no. Doyle, Norene, and Steinbeck. Abstaining: Hornaday. Norene moved and Doyle seconded to approve the Judicial budget in the amount of $28,169 - reducing the attorney's fee by $5, 000. The motion carried by roll call vote with McCrady dissenting and Hornaday abstaining. City Administration Hornaday moved and Norene seconded to fund City Administration in the amount of $92, 680 - reducing the salary of the City Manager by $4, 000. The motion carried unanimously by roll call vote. Dept. of Revenue Hornaday moved and McCrady seconded to fund the Dept. of Revenue in the amount of $15,417 -reducing the part time clerk salary by $1,500. The motion carried unanimously by roll call vote. -.J / T - --'WVW- MINUTES, KENAI CITY COUNCIL MEETING, JUNE 13, 1973 Page seven Budget Hearing - continued Finance Hornaday moved and McGrady seconded to fund the Finance Dept. in the amount of $68,100 - a reduction of $3, 000 in the salary of the Finance Director. The mcdon carried by roll call vote with Johnson dissenting. Police/Animal Control McCrady moved and Johnson seconded to fund the Police/Animal Control in the amount of $141,952. The motion carried unanimously by roll call vote. Fire Department Hornaday moved and Steiner seconded to fund the Fire Dept. in the amount of $182,283. Doyle moved and Norene seconded to amend the motion to fund the Fire Dept. $213, 094. The amendment passed by roll call vote with Steiner and Hornaday dissenting. The main motion, as amended, carried by roll call vote with Steiner and Hornaday dissenting. Streets Steiner moved and Johnson seconded to fund the Street Dept. in the amount of $115,962. The motion carried unanimously by roll call vote. Building Inspection McCrady moved and Steiner seconded to fund the Building Inspection Dept. in the amount of $18, 692. The motion carried unanimously by roll call vote. Health Center Steiner moved and Norene seconded to fund the Health Center in the amount of $3,010. The motion carried unanimously by roll call vote. Fort Kenay Steiner moved and McGrady seconded to fund Fort Kenay in the amount of $1, 300. The motion carried unanimously by roll call vote. 6 MINUTES, KENAI CITY COUNCIL MEETING, JUNE 13, 1973 Page eight Budget Hearing - continued Library Hornaday moved and Steiner seconded to fund the Library in the amount of $19, 864. The motion carried unanimously by roll call vote. Recreation McGrady moved and Steiner seconded to fund the Recreation Dept. with $5,396. The motion carried unanimously by roll call vote. Fine Arts Building Hornaday moved and Steiner seconded to fund the Fine Arts Building in the amount of $3,591. The motion carried by roll call vote with McCrady dissenting. Council on Aging Norene moved and Steiner seconded to fund the Council on Aging $12,051. The motion carried unanimously by roll call vote. Non -Departmental McGrady moved and Norene seconded to fund Non -Departmental in the amount of $599,037. The motion carried unanimously by roll call vote. Airport Terminal 6 M/O Steiner moved and Doyle seconded to fund the Airport Terminal and M/O in the amount of $46, 690. The motion carried unanimously by roll call vote. Water/Sewer Steiner moved and McGrady seconded to fund the Water 6 Sewer Dept. in the amount of $84,903. The motion carried with Hornaday and Norene dissenting. Carl Hille gave a re -cap of additions and deletions. The expenditures were Increased by $71,746. or 1.6 mills for a total of 11.6 mills. Doyle moved -and Steiner seconded and Steiner seconded to ammend the budget by deleting $18, 000 in miscellaneous revenues for the sale of the Seagraves and to increase the debt service $20,000. The motion carried by roll call vote with Hornaday and Norene dissenting. A tally by Carl Hille showed the mill rate is now at 12.6 mills. MINUTES, KENAI CITY COUNCIL MEETING, JUNE 13, 1973 Page nine Budget Hearing - continued Doyle moved .and McGrady seconded to declare Ordinance 225-73 - Adopting the budget for fiscal year 1973-74, an emergency ordinance. The motion carried by roll call vote with Steinbeck dissenting. Doyle moved and McGrady seconded to adopt Ordinance 225-73 - Adopting the budget for fiscal year 1973-74, inserting in paragraph 4.- 12.6 mill, paragraph S. - 12.6 mills, paragraph 7 - 13 June 1973. After some discussion, Doyle, with consent of second (McCrady) further amended the Ordinance by adding in paragraph 1 - The budget, as amended . . . and in paragraph 4 changing the word "personal" to "real". Mayor Steinbeck recessed the meeting and opened it up for a public hearing. � Ruby Coyle stated that under paragraph 4 of Ordinance 225-73 it reads "and that said mill rate is to be obligated for general municipal purposes". She questioned if the Fine Arts is for municipal purposes. Mayor Steinbeck stated the City can budget for anything that is not prohibited by law. If this is illegal, then that portion of the budget will be removed. George Robinson asked if money has to be repaid to the PEP Program, where will that money come from. Councilman Doyle stated if the monies were misused, they will be covered by the City Manager's bond. There being no further public participation, the public hearing was closed. Councilman Hornaday stated he will be abstaining from voting on the portion of the budget pertaining to the City Attorney's fees. The motion failed by roll call vote, with Steiner, Hornaday, Norene and Steinbeck dissenting. Hornaday moved for the adoption of Ordinance 225-73 - deleting the words "attached hereto" in paragraph 1, inserting 10 mills in paragraph 4, 10 mills In paragraph 5 and 14 June 1973 in paragraph 7. The motion died for lack of a second. ..J MINUTES, KENAI CITY COUNCIL MEETING, JUNE 13, 1973 Page ten Budget Hearing - continued Johnson moved and Norene seconded for the adoption of Ordinance 225-73, Inserting in paragraphs 4 E 5 - 10.5 mills and increasing the amount of revenue in the general fund by $100,000 to be financed by land sale. After more discussion, Johnson, with consent of second (Norene) withdrew his motion. Steiner moved and Hornaday seconded to reduce the expenditures on labor and fringe benefits by 10% straight across the board. By doing so paragraphs 4 6 S would read 11 mills. The motion failed by roll call vote with Johnson, McGrady, Hornaday, Doyle, Norene and Steinbeck dissenting. Hornaday moved and Doyle seconded to recess the meeting until tomorrow night, June 14, 1973 at 8:00 P.M. at the same place. The motion carried by roll call vote with Norene and Steinbeck dissenting. Meeting recessed at 1: 30 A.M. BUDGET HEARING RECONVENED JUNE 14, 1973 8:00 P.M. FORT KEN" Mayor Steinbeck called the meeting back to order at 8: 00 P.M. at Fort Kenay. j ROLL CALL: Members present - Tru McGrady, H. J . Steiner, James Hornaday, James it Doyle, Robert Norene, C.E. Johnson and Mayor John Steinbeck. Members absent - None. Norene moved and Doyle seconded to reduce the Non -Departmental budget by $45,000 and add $45,000 to the revenues from the land sales program. Such revenues dedicated to retire the debt service. The motion failed by roll call vote with McGrady, Steiner and Hornaday dissenting. Hornaday moved and Steiner seconded to adopt Ordinance 225-73, inserting in paragraphs 4 8 5 - 10.5 mills, based on the following reductions: Gam', 0_- MINUTES, KENAI CITY COUNCIL MEETING, JUNE 13, 1973 Page eleven Budget Hearing - continued reduction cut the dispatch to 1 31,185 cut lube/welder 11,928 sell fire truck 18,000 funding Fire Dept. at $182,283 30,811 Total 91,924 Steiner moved to amend the motion to reinstate the fire truck. Hornaday seconded. The amendment carried by roll call vote with Hornaday and Norene dissenting. Hornaday, with consent of second (Steiner) changed the main motion to read 10.83 mills. The main motion, as amended, failed by roll call vote with McGrady, Doyle, Norene, Johnson and Steinbeck dissenting. Johnson moved and Doyle seconded to adopt Ordinance 225-73, inserting in paragraph 1, "as amended", paragraph 4 - 12.2 mills and changing "personal" to "real", paragraph 5 - 12.2 mills and In paragraph 7 - 14 June 1973. Such revenues based on the following reductions: reductions communications, telephone, postage, etc. - reduced 9,500 part time clerk - Revenue 1,500 rents, leases, xerox S office machines 2, S00 Total 13,500 The motion failed by roll call vote with McGrady, Steiner and Hornaday dissenting. (Hornaday abstaining from that part of the budget relating to the City Attorney) . McGrady moved to adopt Ordinance 225-73 by reducing 1 dispatch at the savings of 10,395, reduce Assistant City Manger's salary 1,000, eliminate part time revenue clerk - 1, 812, delete recreation dept - 5,396, delete Fine Arts - 3,591, reduce rents - office machines - 2, 500 and delete Motorola contract - 4,604. The motion died for lack of a second. r.�N j MINUTES, KENAI CITY COUNCIL MEETING, JUNE 13, 1973 Page twelve Budget Hearing - continued Doyle moved and Johnson seconded to adopt Ordinance 225-73, inserting in paragraph 4, 12.21 mills and change "personal" to "real", paragraph 5, 12.21 mills and paragraph 7, 14 June 1973. Such reductions based on the following: reduction reduce communications, telephone, postage, etc. 9,500 reduce part time clerk -Revenue 1,500 reduce rents 8 leases, xerox, office machines 2,500 reduce Motorola Maintenance agreement 4,604 Total 18,104 The motion carried by roll call vote with Steiner and Hornaday dissenting. (Hornaday abstaining from that portion of the budget pertaining to the City Attorney) . Ruby Coyle pleaded with Council to reconsider their motion. Bud Loftstedt asked for reconsideration. George Navarre stated he was against the sale of land but felt $49,000 could have been thrown in the budget. Leo Oberts stated that he felt the City should sel I the land not contiguous to the airport. Mr. Glad stated he is against high taxes but Kenai needs to get out of the gloom and doom. The mill rate is still lower than Seward, Seldovia, Soldotna and Homer. Norene moved and Doyle seconded for reconsideration. The motion carried unanimously by roll call vote. The motion back on the floor failed unanimously by roll call vote. (Hornaday abstaining from that portion of the budget pertaining to the City Attorney) . The members of the Planning S Zoning Commission were asked to comment on the land sale. Ruby Coyle stated the Commission have recently agreed to sell land to the State for the Court House and other lands could be sold. MINUTES, KENAI CITY COUNCIL MEETING, JUNE 13, 1973 Page thirteen Budget Hearing - continued ` Al Hudson stated the revenues from the sale of airport lands are already dedicated. He felt $100,000 is not a realistic figure. Norene moved and Doyle seconded to adopt Ordinance 225-73, inserting in Paragraph 4 - 10 mills and replacing "personal" with "real", paragraph 5 - 10 mills, paragraph 7, 14 June 1973, to add $100,000 for the sale of revenues from the land sale. Hornaday moved and McCrady seconded to amend the motion to include $60,000 In revenues from the land sales, strike $12,000 from the janitorial service and reduce the dependent insurance coverage by $18,841.92 and set the mill rate at 10.5 mills. ,-� Steiner stated he would for the motion if the $12,000 for janitorial fees was _ put back in. Hornaday consented to put $12,000 back in for janitorial fees. McGrady withdrew his second and Steiner seconded. Mayor Steinbeck opened the meeting up for a public hearing. Mr. Wells stated this is wasting your time and ours, the Council isn't facing up to the budget and have no Intention of living up to it. Mr. Oberts stated he is willing to pay for the services If it will get the City on a paying basis. Mayor Steinbeck closed the public hearing and brought the motion back to ` the table. The main motion as amended carried unanimously by roll call vote with Hornaday abstaining from the portion of the budget pertaining to the City Attorney. MEETING ADJOURNED 10:30 P.M. Respectfully submitted, Sharon Sterling, City Clerl� i t 1 I1 1 It C V �� 4