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HomeMy WebLinkAbout1970-04-01 Council MinutesAGENDA REGULAR MEETING KENAI CITY COUNCIL 8:00 P.M. APRIL 1, 1970 ✓A- ROLL CALL 8- PERSONS PRESENT AND SCHEDULED TO BE HEARD �Fred Walatka & Assocaites (Claude Vining) regarding sewage tre4tment. ,*4•�- C- MINUTES Regular Meeting of March 18, 1970 -----D- CORRESPONDENCE B- REPORTS AY. City Manager ka. City Attorney ✓�. Mayor ✓� City Clerk City Treasurer ,--4. Advisory Planning ` Zoning O mmission 7. Borough Assemblymen rW. Student Councilman's report on Mayors' meeting in Anchorage F- OLD BUSINESS .o1r. Policy for payments in lieu of assessments for connections Vr.to eater and sewer. Second rea tra of Ordinance 178 (rice Prevention) Disowe 1. p to aneap by 1pisber. Conditions of sale of lease - propesty south of the River ,/5. Discuss three methods of taxing to obtain additional revenue f 6. 7. G- NEW BUSINESS ✓l. Discuss assumption of additional powers by the Borough - Police, Fire, Roads, dogs, garbage? 0-72'. Resolution to borrow money v3: Legal enforcement of Section 20-9 of the City Code - operation of -taxicab operators in airport. A Receive water test well bids. .' Games of Chance and Skill - American Legion 5. 6. H- PEAS"S PRESENT NOT SCHEDULED TO ��'� a. KEdAI CITY COU14CIL MINUTES 1 APRIL. 197U Roll call: Members present - Charles A. ►3ailie, Robert isielefeld, Judi brown- ing, John ilulien, billy McCann, Ars. Florine McCollum, Pat McFarland, Hugh Ma- lone and Mayor Eugene H. Morin. Items B-2, G 4 and 5 were added to the Agenda. U-1: Mr.Fred Walatka, representing the firm of Walatka & Associates, engineers and land surveyors, introduced Mr. Claude Vining to explain a possible means of sewage treatment for the City. The proposal was for an oxidation ditch which provides a secondary treat- ment for sewerage. It is a simple aerobic and motion process. It consists of merely a ditch and a building to house the clarifier. Fairbanks has used this process for 5 years and approves of it 100%. After the flood there, the sys- tem was in operation again within two days. The design they have in mind for Kenai would serve 5,000 people with 90 to 95 percent removal; it would cover .6 of an acre and cost $400,000. A process similar to the lagoons at Wildwood would be 5 times larger and would cost $500,000. Maintenance for the oxidation process would cost $110 per.,. million gallons as opposed to a cost of $236 per million gallos for the conven- tional type of secondary treatment. The City could use force account methods for building the ditch, but the rotors, or brushes, must be purchased. Morin thanked Vining for the presentation and said this might be the answer to some of our treatment problems. B-2: Mr. Williamson said there was nothing Council could do yet as George Mil- ler was in the process of getting approval for his renewal of liquor license. Later he will ask Council for a transfer. The Clerk explained Mr. Miller had met all current obligations against the premises of the Rainbow Bar and a letter had been directed to the Alcoholic Beverage Control Board giving approval of the City for renewal for 1970. C: The minutes of the meeting of 3/18/70 were corrected: 1. Page 3, item E-4. delete "The Boro has taken over the health powers; but ......also". 2. Page 4, Item E-7, item #3: change 16,000 sq. ft. to 1600 sq. ft. 3. Page 4. Item E-8. #3. Insert "not just" in sentence "This will not just be a project budget". etc. 0: Correspondence handled in reports. E-1: The City Manager reported: 1. The National Guard proposes construction of a $650,000.00, 11,200 sq. ft. armory building with bid openings in February, 1971. Rather than upset any plans now in motion, Robbins would forego any attempt to change the site for the Armory. Council agreed this is a good place for it. 2. The Attorney, City Treasurer and he attended the meeting with the Senate Finance Committe:in Anchorage. Kenai's main presentation was that the present method of revenue sharing is not sufficient. We have made budget cuts, but still are short of revenues to the extent that we are going to have to raise taxes or institute taxes on items not now being taxed. 3. Robbins' opinion of the Recreational Program is that it is more important than water and sewer systems, roads, etc. as it may provide a means of combatting the present dangerous "dope problem" we have amoungst the teen-agers. The City hopes to get Federal monies to operate the Recreation Program starting 1 July, but in the interim, we cannot continue the Program unless contributions. or revenue of some sort can be obtained. He proposed to negotiate with the Borough for a loan of $3500 to pay personnel running the Program. M Kenai Council Minutes 4/l/70 Page two r-1, cont'd. There was considerable discussion on the Program. The Amaranth Club has donated $25U. The Recreation Director's salary amounts to about $70U a month. In answer to the Mayor's question, Judi Browning, student Councilwoman, said she and some of the other students think the idea of letting Bookey run the Center is a good one. Jim Bookey reviewed his offer to run the place. tie knows it would not be a money-maker, but would like to see the Center operated for the sake of the young adults. lie has worked with the young people for many years and thinks he could operate at least on a break-even basis. He says there are people operating the Center at present that he would not allow in his place of business - they need close supervision and sometimes even that is not enough. He was speaking of youngsters experimenting with dope. He beiieves in private enterprise and doesn't think the City should undertake this Program now. When asked, Police Chief Heffner had no comment as to the way things were being run at the Rec Center. McCann moved, McCollum seconded, to authorize the City Manager to nego- tiate a loan of $3500 from the Borough for personnel services for the Recrea- tional Program. Motion carried by roll call vote with Bielefeld dissenting. The small amount of money derived from the snack bar goes to the City. 3. Council agreed with Robbins that J. Either Aorth Kenai enter into a con- tract with the City for Fire protection, or 2. All Fire Depts. should be com- bined and organized and operated by the Borough. 4. HB 464 concerning local roads will be on the agenda at the next regular meeting. 5. After some discussion, McCollum moved, Bielefeld seconded, to leave the X-ray machine where it is. Motion passed with Bailie and Hulien dissenting. This machine was taken over by the City at a cost of $15U0 and placed in the office of the present Dr. Armstrong when the old Kenai Clinic folded. It was intended that all doctors in the City could use it; the City was sup- posed to get $1.00 for each picture taken, but no revenue has been received. No one knew if other doctors are using it or not. 6. Percy Bergt, KCL Supt. said the materials listed for purchase by KCL from Debenham Electric would be needed this summer and total cost is $2,100.00. The City Mgr. said there is money available for this. Hulien said he did not feel comfortable passing on something like this as he doesn't know what is needed, etc. Generally a purchase of this sort is an Administrative matter; purchases over $2600 must be approved by Council - purchases over $500 must be obtained through competetive bidding. Coming to Council is a courtesy measure. Bailie moved, Bielefeld seconded, to authorize KCL to buy equipment from Debenham for $29100.00 Motion carried unanimously by roll call vote. 7. Robbins asked directiwof Council as to the City's agreement in the minutes of 7/16/69 with the Chamber of Commerce concerning the Constellation. The Chamber has not lived up to their share of the bargain. Council said the City might act in soupervisory capacity when their contractor oes to work. I&M "iUA 'Ely, {v. WkA;M . E-2s The ity Attorne reported: 1. An announcement was made a month ago of t e Foreclosure list for delinquent assessments.of two years duration. This list will be presented to the Court the latter part of April or early part of May. 2. Fisher recommended the term of lease to Schultz for land South of the River be reduced from 55 years to 20 years or so; it might not be essential for this development to have such a long term, and the City might suffer if Harbor im- provements encroached. Robbins read a letter from the Corps of Engineers saying construction of the proposed dock would not "conflict with the proposed construction of a boat harbor or any other project contemplated by the Corps of Engineers". 0 ) Kenai Council Minutes 4/l/7u Page three Atty's. report con'td.: 3. Ord. #178, Fire Prevention, is a major revision of the 1963 Code. tie thinks it is feasiole for local use, but one cannot be sure until such an ordinance is used and administered. He has not compared it to the Boro Ord. for the North Kenai Fire Service Area. 4. He has sent a proposed bill to the Kenai Peninsula Legislators for intro- duction to the Legislature. This bill asks for a supplemental appropriation for our shortfall of revenue in the amount of $53,171, and for possible short- age in motor and fuel oil tax refunds. The Mayor asked why doesn't the Boro go after this possible shortfall on gross receipts tax returns. Fisher said their actions might decrease whatever the City might get, but he would ask about it. 5. On the matter of the trip to Juneau, he is willing to go on the same terms as his last trip; he now has a definite program to present, and says it's hard to get the Legislature to understand the City's needs. E-3: The Mayor deferred his report to G. L. Jaynes who will explain about the rifle range. E-4: The City Clerk reported: 1. The minutes should reflect the receipt of 8 copies of ASHA's Plan for the Borough. Copies were distributed amoungst the Planning Commission members and Council. 2. Urged Council to write the date of 8 April, 7:30 p.m. as a special meeting for Council to award bond bids. Bids will be opened at 10:00 a.m. that morning. Since the Notice of sale of bonds states the award will be made in Council Chambers, the room will have to be used during a recess period of Planning Comm. which meets there on that night. 3. Nominating petitions for the two Council seats of Hulien and McCann may be obtained at the Clerk's office on or after 13 April. Petitions must be signed by real property owners and registered voters and must be filed with the Clerk by 5:00 p.m. 28 April. The panel for judges is proposed as follows: Louis Nissen, Norma Jordan, Georgia Struble, Frances Meeks, Dorothy Thompson, Shirley Morgan, Doris Day, Andrea Tyler, Karen Hornaday and the Clerk. If Council has any suggestions, other names can be added. From this panel six will be -chosen. It is proposed to combine the polling places under one roof which makes for easier voting, due to registration by precinct. The school does not want us there, and have only allowed use of the Halls as an accommodation because there was no other place. There was considerable discussion as to a site for the polling places, but it was agreed one site should be determined on. Bailie moved, Hulien seconded, the Recreation Center should be the polling place for both precincts. Motion carried unanimously by roll call vote. E-5: The City Treasurer reported: 1. He will have a resolution ready for the next meeting to borrow funds from the Bank. Tney have expressed a willingness to do business. The Borough cannot. This Resolution will be ready for the 8 April special meeting. 2. There are two resolutions for tonight extending two loans. E-6: There were no quesions on the minutes for the Planning 3 Zoning Commission meeting. Jaynes said the Boro is holding a public hearing on the ASHA plan on 6 April in Soldotna. The Boro planning commission will hold a study session on the 13th, then the Plan goes to the Assembly for final action. Kenai Council Minutes 4/l/70 Page four E-7: Thera was no Borougn Assembly meeting to report on. E-8: Judi Browning reported on the Mayors' meeting in Anchorage: They were present only one day out of three, but watched a 2 1/2 hr. parade, then met at the Travel Lodge and discussed lowering the "drinking age" to 19. I -lost of the students thought it should not be lowered as 16 and 17 year olds are getting in under the 21 yr. age, and it would be just that much worse if the age were lowered. They agreed the sale of cigarettes to 18 yr olds only should be enforced. They then watched the sled dog race, then met at the Anchorage -Westward for discussion with Prof. Parsons of AM. The question was asked "What do the Teen-agers really want?". The answer was "clothing they don't already have.". She is enjoying being a member of the Council, but doesn't alwasy understand the things they do. Pat McFarland said being on the Council was a "great experience". The students in High School are not much interested in Council's actions unless they have to do with the Youth Program. F-1: After brief discussion the Atty. was directed to draft an Ordinance pro- viding for payments in lieu of assessments, following the recommendations of Bruce Massey, US Supt. F-2: Ord. #178, second reading. Malone said he hoped this ordinance would pro- vide a safeguard for personal privacy, but was afraid the difference between in- spections for public and private buildings was not explicit enough. Bielefeld moved, McCann seconded to adopt Ord. #178, Adoption of Fire Prevention Standards, for second reading. Motion passed unanimously by roll call vote. F-3: After some discussion, Bailie moved, Hulien seconded, the decision on whether or not the Atty. should make the trip to Juneau will be administratively dealt with. Motion carried unanimously. Robbins will be there for the City Mgrs.' F-4: Leaseof land across the River. meeting. The Conditions of sale of lease must show 1. Term of lease, acreage in- volved, price per acre, and possible term for review of rate. Harold Galliett explained the 12 acres were needed for construction of grids for boat storage. o pointed out, buildings along the River would have to be on palings. '4&contemplated more than just a dock to unload fish - he hoped to have a marine -ways there for boat repair, a ships chandlers and perhaps other related businesses. The face of the dock is only 40' but room for maneuvering is needed in approaching and leaving the dock - especially when coping with tidal action and river current. There was discussion as to the road right-of-way. Galliett said it had been open to the public for many years, and they are assuming it's a right-of- way. The City would not bear any responsibility for maintenance of the road, or for any actions that might evolve from the oil leases on the property. These two conditions must be made a part of the lease. Council agreed the term of lease should be 55 yrs. with the review of rate clause to be 5 yrs. Price per acre per year is $150, which accords with the lease rate of Alaska Barite land across the River. Hulien said Council should continue to consider the possibility of selling the land. McCann moved, Bielefeld seconded to advertise for sale of lease for the property across the River. Motion carried unanimously. F-5: Robbins outlined the proposed three methods of raising revenues for General Kenai Council Minutes 4/1/7U Page five F-5, cont'd. Fund: 1. Raise the real property tax levy, or 2. Levy a person 1 property tax, or, 3. Levy a sales and use tax . He said it might be necessary to impose a combination of any two of these methods. The Mayor explained nothing would be passed tonight. This was a hearing to discuss the problem of the accumulated deficit, and it was certain the present level of activities could not be maintained without an increase in revenues. It appears that the only means for achieving this is to raise taxes in some form. Council has shied away from this action for many years, and as a result a deficit has built up to the point it can no longer be ignored. Malone said the present tax structure is not equitable. The burden should be distributed differently, and suggested the proposed tax might be for a limited time. He said some services were absolutely necessary for the public safety - some things might be eliminated, but continuing with only the present level of activities necessitates a raise in revenues. He said the tax money now being received is not keeping up with inflation. McCann waid he was against a sales tax. The two student Council members (Browning and McFarland) said they would abide by whatever Council wished. Hulien said 10 mills on personal property is too much of a tax. He thinks a 1% sales tax, tied in with the Boro tax, might be okay. We haven't raised taxes in prior years because the continued growth had provided additional tax revenue, but that growth is no longer anticipated - at least for this next year, and a tax raise can no longer be put off. He said 60% of the building permits last year were for trailers, and those living in them should certainly share a part of the tax burden; a personal property tax would accomplish this. Bailie said he favored the personal property taxg but it might be possible for the people to vote on which one should be levied. Bielefeld said the only way he would go for a raise in real property tax would be if the revenue were earmarked for a new fire truck. He says let the people vote on the sales tax, then if it's necessary, and the budget can't be cut, see about imposing it. McCollum said she agreed with Hulien. The Mayor said he liked the personal property tax as it catches the transient people who help vote in the capital improvements, then move away, leav- ing the property owners to foot the bills. If the public wants to continue services. they must pay for them. If the people vote "no" on the sales tax, Council will be forced to go 10 mills on personal property tax. He says the sales tax reaches more people and afford a fairly even source of revenue. The City is changing its accounting methods, using job descriptions, trying for Fetter internal control and doing everything it can to abide by the Auditor's recommendations. We have taken on new subdivisions with more than 80 acres in- volved, but are serving these added residences with the same field crews. He likes the idea of building up a Construction Fund for Capital Improvements. The way we are going now,, we spend 2 million dollars for 1 million dollars wortn of improvements - 1/2 is for the facility, 1/2 is for interest on the bonded indebtedness. The meeting was opened for public expression. C. W. "Johnnie" Johnson said we need services and revenue to get them, He is willing to pay more :axes, but says a sales tax would hurt his business im- mensely. lie thinks the personal property tax would be the best route to follow. Bill dells said the sales tax is hard to collect and the thing to do is cut the budget. Every man should make out a daily time sheet showing what he is doing. Also electric rates should be equalized - the Commercial rate is too high, being 15% more than HEA's. There should be demand meters on Commercial buildings. KCL should be on a paying basis and should make payments in lieu of taxes. A 10 mill personal property tax would mean the City is taking 1% of the cost of his inventory. The thing to do is cut spending. He has seen a Kenai Council Minutes 4/l/70 Page six F-5, cont'd. $25,000 dump truck, belonging to the City, running up and down the Highway as if it were a pick-up. In private business. an expensive piece of equipment isn't used unless it's absolutely necessary. The City Government should be run more like a private business - if you can't pay for something, .you do without. Ed Ferguson says the City took in more land than it can take care of. 70% of the land in the City is owned by one government or another, more of this land should be on the tax rolls. The Mayor said we can't sell or lease if there's no demand or market - we are trying to use our land wisely, and the boundaries were set by a popular vote. Jim Bookey is not for the sales tax as it creates an economic rier. A personal property tax should be levied - at least against trailerWall other personal property is exempted. In private business if it isn't paying. one must pare down - he saw two men reading light meters - why does it take two? One of the City dump trucl6 broke down, and three men came out to theck,-on it - why -three? The streets were flooded in places, and the City did a good job of getting the water off, but why should two men be sitting in the truck reading magazines while the pump was running? Bookey was interrupted by the Mayor who said this meeting was not for a criticism of personnel - Bookey said he was trying to show how expenses could be cut. He said maybe Bielefeld is right - If the budget can be cut, the increase in revenues might not be so imperative. Laurette Knackstedt is against a real property tax raise and said the Boro has already raised the evaluation for this year. Stan Thompson said a personal property tax would result in people moving their trucks, boats, etc. out of the City and inventories would be cut leaving the people with less services, and the City with less revenue. He asked "Has the City lived within its budgets the past few years, else why have we had these deficits?" The City has exceeded its budget for several years. He said Bookey was asking,,and suggesting.*legitimate items, as it's time to take a close look at previous spending to find ways to economize. Private business would not allow some of the things the City Government is doing. If it is absolutely unavoidable to cut the budget any more, perhaps a tax could be levied for 2 or 3 years only, so the deficit could be paid off gradually and not all at once. He asked how does the City's expenses compare with past years? Has it been A Doing up every year? The answer is "yes, it has". G. L. Jaynes, Jr. said he would rather pay a sales tax even though it would cost him more than a personal propert� ax. Fran Moors said a 1% sales tax would1. other his family much, but a per- sonal property tax or an increase in real property taxes might keep them from building a house in Kenai. Bill Wells said the Boro is doing what the City did in the past, but it is costing a lot more and maybe the City should investigate the way the Boro is spending money. Roy Hayes said the Police budget should not be cut as he figures that is the only thing he is getting out of his tax dollars paid to the City, i.e. police protection. The City Manager said he would appreciate hearing of wasteful practices or acts eminating from City forces. The Mayor noted most of the comment tonight was from business people, and it might be best to put the matter of a sales tax on the ballot so the "little man" could have his say. . The Clerk said the meeting of 8 April was the absolute deadline for passing the Resolution to place the proposition of a sales tax on the ballot as advertising requirements called for a 30 day notice prior to election day. This resolution will be on the agenda for 8 April. Council adjourned for a 10 minute recess. Kenai Council Minutes 4/1/70 Page seven G-1: Council was asked to direct the Administration as to their opinion of a movement for the Borough to take over fire and police protection and road maintenance, and possibly services for dogs and garbage. After considerable discussion, Council agreed the City should consistently "fight" to retain all its present powers. Robbins will carry this message to the meeting on 13 April. G-2: The Clerk presented Res. 70-6, explaining this is an extension of the original $65,346 KCL loan,now pared down by a payment from the $25,000 KCL bond issue. Hulien moved, Malone seconded, to adopt Res. 70-6, Extending the KCL loan of $58,051.88 for 90 days at 5 3/4%. Motion carried unanimously. (ASB) The Clerk presented Res. 70-7. Bailie moved, Bielefeld seconded, to adopt Res. 70-7, extending the Water and Sewer Revenu Fund loan in the amount of $26,000 for 90 days at 5.9%. This is for money borrowed against the bond sale and used for drilling the test wells. Motion carried unanimously. (ASB) Councilman McCann left at this time. G-g: There was considerable discussion on enforcement of Sec. 20-9 of the Code concerning taxi service soliciting in the Terminal Building. Mr. Deering, for Ace Cab Co., and George Ackerson, for Golden Key Cab Co. testified they were not soliciting business. Deering goes into the building to await crews for companies he has agreements with. If their plane is late, he either stays and waits or he loses the business, and the company's goodwill. Ackerson says he and his driver never go into the building. The question of parking space for taxis was also discussed. Chuck Berry, of Alaska Parking said Ace Cab pays for their space allotted for taxis, but Golden Key parks in the no -parking zone and interfers with traffic. After more discussion Council agreed to allow the Taxi men to enter the Bldg, as long as they don't create a nuisance, but the parking zones should be enforced. i G-4: Massey explained the analysis on the bids for drilling the water test wells, and said there really wasn't a great deal of difference of the three companies bidding. These test wells CAN be used for production wells if the quantity is there. He recommended accepting the lowest bid. Bailie moved, Bielefeld seconded, to accept the bid of Thorn Drilling, t the lowest bid, in the amount of $12.745, contingent on sale of the water bonds. Motion carried unanimously by roll call vote. Massey explained the need for two wells vs. only one. G-6: Bailie moved, McCollum seconded, approval of the application for games of chance and skill by the American Legion. Motion carried unanimously. H-1: Lester Ness, representing the Pancake House, expressed concern over the possible evaluation given by the Dept. of Hwys. for that property when it comes time to move for the new road. The property is zoned Residential, though it's used as a business. The Clerk said conversations with the appraiser working for the Hwy. Dept. revealed properties would be appraised according to their use, not by the zone. Ness should get some figures together before he worries too much. Meeting adjourned at 1:00 a.m. Respectfully submitted, Frances Torkilsen City Clerk e4wer.Qi.:d � _ a • r: l vd ............................I._.__..... elloo.- &4z z ono 9e dAA-1 ............................. y-.-tea..