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HomeMy WebLinkAbout1970-06-17 Council Minutes-- _ A01 14DA REGULAR MELTING, KENAI CITY COUNCIL June 17, 1970, 8:00 P.M. FT, RE14AY 61A-- ROLL CALL ✓A-1 PUBLIC tEARING ON 1970-71 BUDGET A. A— B- PERSONS PRESENT SCHEDULED TO BE UFARD .�...—.--,1. Ratification of Engineering Contract with ACLW. - Kjelstad 2. MINUTES 3 1. Regular Neeting of 1970 D- ORTS . City Manager 2. City Attorney 3. Mayor ✓+fir City Clerk Finance Director 6. Advisory Planning & Zoning Coaomission *4. Borough Assemblymen F- OLD BUSINESS Seater & Sewer Rate for Nall Bakery ✓2,. Addition of one cab for Golden Key Cab Company ✓�. Ordinance 182 regarding payments in lieu of assessments` (Tabled 20, May, 1970 183, /�. Second Reading of Ordinance regarding the amendment of Dog Ordinance. 04. Report on Foreclobure of property of citizens over 65 years of age. 6. 7. WSIvSSS 1. Replace ffornaday on Borough Assembly for thirty days. 3. 4. H- PERSONS PRESENT NOT SCHEUDULED TO BE TIEARD 1. 2. rA .. M .�`a��`�t-7�I'J•0`;p�.l �!R04t�1���J�r: ,�.;Li�.`.. dab :: Jape0� 1s?0 :_', b� t) KENAI CITY COUNCIL MINUTES 17 JUNE, 1970 Meeting was held in Ft. Kenay to accomodate the audience for the public hearing on 1970-71 Budget and Tax Levy. A: Roll call: Members present - Charles A. Bailie, Robert T. Bielefeld, James Uoyie, James Hornaday, Mrs. Florine McCollum and Hugh Malone; Absent - Judi Browning, Pat McFarland and Mayor Eugene H. Morin. Vice Mayor Robert Bielefeld pruaided. A-1: City Manager OrmoM Robbins read his budget message, introducing the City Budget for Fiscal 197U-71. The Mayor said everyone would be given an opportunity to be heard, and asked the speakers to limit their remarks to two minutes. Council is particularly interested in knowing whether the 10 mill levy on real property or the 8 mill levy or real and personal property is favored. Each speaker is urged to make his opinions known as briefly as possible. There was some discussion by Council as to the scope of the public hearing. It was decided an -explanation of the format was necessary, prior to discussion. Finance Director Ray Hurt went through the Budget page by page explaining the needs and reasons for certain allocations. The discussion on the Public Safety Building had to be curtailed, as this will come up for public hearing at a later date. Speakers from the audience durinthis discussion were: Bill Wells, Mrs. Ruby Coyle, Fred Ackerman, Ed Hollier, "Johnnie"' Johnson, Mrs. Joan Allison, Jim Elson, Ed Ambarian, Don Oines and Jim England. Most of the remarks concerned details of revenue and expense and were satisfactorily explained by Burt. After the review of the Budget, opinions from the floor were voiced: Ed Hollier said he was willing to pay an extra mill in order to re -instate the recreation program as he thinks this is one of the necessary and prime functions of Municipal Government. C. R. Johnson voiced the same opinion. Jim Bookey complimented the City on the Budget, but was against the City's taking on the Recreation Program. He thinks this is the responsibility of Civic Groups in town as there are too many taxpayers who have no children, but would be paying for a Program involving only children. He, along with George Robinson, says the Elks Club, or the Salvation Army could do the job. Bielefeld said the $16,000 would only pay for a Director and administration costs - there would still be money needed for equipment, and to do the job right, it would likely take 20 or 25 thousand dollars, which the City cannot afford right now. The DC 7's, parked on airport property have been impounded by the State. Council said they should not be removed until the City has received money due for rented space. Bookey also said the Fire Department should be given another 8 to 10 thousand if that's what is needed for improved fire protection. He thinks trailers should be taxed ten mills the same as other real property, but all other personal property should be exempt. This would leave the doors open for industry to invest in this area without being taxed out of business. Jaynes said the City had foregone a personal property tax for years, but he had not noticed any great influx of industry. He favors the 8 mills on real and personal property. Others favoring the 8-8 levy were: Tru McGrady, Don Oines, Mrs, Mae Knudson. George Robinson and Mrs. Ruby Coyle. The latter was in favor of dropping the $1001,000 exemption. Councilmen in favor of the 8-8 levy were: Malone, who thought the levy might even go lower to 7-7; Doyle, who said the j100,000 exemption was adopted to encourage industry and bigger ope ators; Hornaday said the 8-8 doesn't put the whole burden on the home owner - t was in favor of the sales tax, bt[lafter talk- ing with the business people, who favored the 8-8 levy, he thought their opinions should be followed; Mrs. McCollum thought the $100,000 exemption should be re- tained. ', ?to L_T ter- s_ A J Kenai City Council Minutes 6/17/70 Page two A-1 (Cont'd.) Bielefeld is in favor of the 10 mills on real property only. Bill Wells asked why KCL'salaries couldn't be cut, but was told this would not affect the general fund budget as KCL is an indepandent department financed by revenues from services. The public hearing was closed. Malone moved, McCollum seconded, to adopt Res. 70-14, Approving the 1970-71 Budget as presented, and levying an 8 mill tax on real and personal property. Exemptions to the personal property tax are (a) household goods withing limitations established by the Borough, (b) inventories held for resale in the normal course of business, and (c) all personal property in excess of $100,000 in value. Hornaday moved to amend the Resolution by deleting item 5(c) concerning the $100,000 exemption. Malone seconded,and roll call vote was: Affirmative - Bailie, Hornaday, Malone and Bielefeld; Negative - Doyle and McCollum Roll call vote on the main motion to adopt Res. 70-14: Affirmative - Bailie, Doyle,yHornad , McColl m and Malone; Negative - Bielefeld. s�.. Waut w%..,. ,�•�� a.• B-1: Deleted, as Kjelstad was not in the aud%nce to present his proposal. C: Minutes of the meeting of 3 June, 1970 were corrected: Item C - correction of minutes of 20 May, item B-3, p. 3, 3rd para. should read Mr. Malone instead of Mr. Hornaday. D-1: The City Mgr. reported: 1. Formula for revenue sharing, included in these minutes, totals $159,796. The shared revenues shown in the Budget as $227,800 includes shared business license taxes, raw fish tax, etc. D-4: The City Clerk reported: 1. Item "D" normally shown on the Agenda as "Correspondence" cannot be omitted arbitrarily as the Code, Sec. 1-12, states what the order of business shall be. If Council wants this 4tem deleted, since correspondence is handled elsewhere, the Code must be changed by Ordinance. Robbins says this will be done when we get an Atty. (Fisher is on vacation.) D-5: The Finance Director reported: 1. The City needs to take another look at its insurance carrier. We are not being served to the best advantage by having an "absentee carrier". He suggests hiring a "broker of record" who would shop for the best insurance available, and says the contract should be for three years, as carriers are reluctant to sign a con- tract for one year only. Leo Oberts said he would like to see the City consider this proposal. His firm is available and on a three year basis, he could furnish the best insurance available. He would go to Seattle to "shop" for this. His firm carried the City for 4 or 5 months when premiums were due - he is sure out-of-town firms would not be so understanding, but would cancel policies when payment is that late. Council jaill recess this meeting tonight and will re -convene Monday at 7:30 to discuss this proposition. Burt also suggestrCouncil consider using Ft. Kenay as a permanent Council Chamber instead of the Library Room. This will be on a later Agenda. Sec. 1-6 of the Code will have to be changed if this is decided on. D-7: Hornaday reported on the Borough Assembly meeting: 1. The °Cfty.cannot send a substitute representative to the Boro while he is on vacation as this is illegal; the Boro did grant him leave of absence. •o Kenai Council Minutes 6/17/70 Page three D- 7 ( Con t' d. ) 2. There was a fire in the new Boro Bldg.; the present Boro bldg. will be rented on a month to month basis until the new bldg. is ready. 3. Budgets for the service areas were approved. 4. The Lutherans will operate the Central Hospital. S. Bonds for the North Kenai service area were approved; the election will be held in July. 6. Discussed and acted on were: Ninilchik Harbor Liquor License change of address Commission appointments Change orders for school buildings Capital improvements programs. 7. The General government operations budget increase by 60% to $971,624. None of the budgets were reduced from last year - all were increased. Malone said part of this increase is reflected in general govnt's assumption of maintanance department costs, raises of Borough salaries and increase in services. The mill levy for Kenai is .5,plus 1.9 for the Hospital service area. Funds for area wide services are going into a special account until such time as the Boro takes on area, wide activities. Dr. Bailie questioned the right of the Boro to levy a 1.9 tax for Hospital services when the vote of the people sanctioned only a 1.5 levy. This vote was evidently only an advisory vote - not a statutory limitation. F-1: Robbins said the water and sewer rates for the Mall Bakery has been settled administratively, at 14.79. F-2: Robbins read Ackerson's report on his Taxicab operations and recommended he be given permission to put on another taxi. He said if Ace Cab wants another taxi, this should be granted also. Homaday moved. Doyle seconded, to grant a permit for another taxicab to Golden Key Enterprises, Inc. Motion carried unanimously. F-3: Ord. N182 was presented for second reading. Bruce Massey, W&S Dept. ex- plained the policies and needs for this ordinance setting up payments for water and sewer hookups in lieu of assessments. Bailie moved, Malone seconded, to adopt Ord. #1829 as amended, for second reading. Motion passed unanimously by roll call dote. Massey estimated about ll,862' of line,4to be built to connect the artesian water to the distribution system. -ragas F-4: Ord. #183 was presented: Doyle mov3d, McCollum seconded, to approve Ord. #183, Amending the Dog Ord. for second reading. Motion carried unanimously by roll call vote. This Ord. pro- vides for a $25.00 impounding fee. F-5: Robbins said the City should not give up its lien rights on property where delinquent assessments are due, but he didn't like to see the City placed in the position of.taking away the home of those unable to pay. The City Charter says this cannot be done. Burt says, generally if assessments are due, taxes also are delinquent, and someone, either the State or the Borough, is going to foreclose. If the City has the lien rights the City can see to it that other delinquencies are paid, thus preserving the home for the owner. He recommended the City retain these lien rights. Kenai Council Minutes 6/17/70 Page four F-5 (Cont'd.) Coyle moved, Malone seconded, to delete the names from the assessment fore- closure list of those who are sixty five years of age or over. Motion pased unanimously. G-1: No action on this item as Hom aday cannot be replaced on the Boro Assembly during his leave of absence. The City of Kenai will just get along with one vote. The City will take a closer look at the representation on the Borough when the 1970 Census figures are known. H-1: 1. Hornaday urged the public to attend the hearing before the Alaska Judicial Council, 20 June at 10:00 a.m. in the Court House, and make their opinions known regarding judicial processes and administration of justice in Kenai. A question to be decided is whether or not a Judge shall sit in Kenai or Kodiak. 2. Malone asked for the price inventory for Kenai City Light. Burt said this would be available by the and of next week. 3. Leo Oberts said the idea of "one man - one vote" should be on the ballot in ;�• the Fall election. Council thought this a good idea. 4. Bill Wells said the City streets were accumulating about 2' of mud on the paving - why dan't it be cleaned up? Jaynes said he is going to Anchorage soon to try to locate a sweeper -broom. Wells said a lot has been proclaimed about cleaning up, but Kenai looks like a third class City with mud all over the streets. A broom and a shovel could get the job done in a couple of days since we have only about 1 mile of pavement. Malone suggested the Youth Corps could be used for this purpose, but Jaynes said a man must be assigned. to supervise them, or the job doesn't get done, and he cannot spare a men for this now. 5. U Ambarian asked about the Street Naming and House Numbering Program. This has been budgeted for this Fiscal year. 6. Bailie asked if Adams, Corthell, Lee, Wince & Associates are on a retainer basis with the City. They are not. The proposal in the letter submitted to Coun- cil is not a contract, and is to be considered at a later date. Council recessed at 12%30 a.m. for an executive session on personnel. The meeting will be resumed at 7:30 p.m. Monday, 22 June, 1970. Respectfully submitted, Frances Torki lsen City Clerk CITY OF KENAI 1970-71 BUDGET REVENUE SNARING 3950 4_ Police @ $ 10.00 j°.�►L b AlLbL 39,500 459000 Fire @ 5.00 " 190750 229500 Pollution @ 2.00 7.900 90000 Planning @ 2.00 70900 9,000 Parks @ 5.00 `� 199750 229500 Transportation @ 5.00 190750 220500 Hospital ( 4000) )Ltm ia- 40000 46000 Roads 1500/Mi ✓'"'"�" 41,250 41,250 Total 159,800 175,750 �r- t- _—�+ca' a i I � I , 24 June 1970 City of Kenai Box 580 Kenai, Alaska Attn: Mrs. Frances Torklison, City Clerk Dear Mrs. Torklison, Would you please amend my vote in regards to the poll of the Council on 17 June 1970. I published a notification that I would abstain from voting on matters involving City Counsel fees. Accordingly, I would appreciate it if you would place this letter of record and add it as an amendment to the Minutes for that Meeting that I have voted to approve the operations budget of the City with the exception that I have abstained from voting on the City Counsel's expenditures. Thank you. ly yours, J ADAX City Loun /1Fp'v„a9 '%O%OOn' a ...........ww,.,,. nn ............................... .... .,............................ 2�2 I� , .... " A. L ...... .w......................................n ._.. ,...•ww. ww..w.n .. of $00 I i ..............enuao•o o, w.....N....M. N.. N.•..................................................n.. r 4 / 4t:t -................................. ....... .��, w... d ' 1 91 I � Sri g I � , at , ............. .-�- .........I A A '��~•. _ . _ .... _ ..:.'i'...�?. io' n a ......^.ti'..... , , ♦ , . , . , • . • :.. a .... • . , , a a'.'3°14'.aaa,^..ni=i, f'a„�.�„i�,�a`�', .. i . . . . 51 I 1 I I�{I I 1 I jar\E 1, v�rll1n11 en�swr r »e u �+or u ,✓mot. _ _ _ i®� MI4UTES OF KENAI CITY COUNCIL MEETING 7:30 P.M. 6/22/7U (Continuation of meeting recessed 6/17/7U) Roll call: Members present - Charles A. Bailie, Robert T. Bielefeld, James Doyle, James Hornaday, Mrs. Florine McCollum, Hugh Malone and Mayor Eugene Ii. Morin. The Mayor announced Governor Miller would be in Kenai tomorrow morning from 9 to 11. Anyone who can is urged to greet him. The City will ask about priorities on the Bridge project and the Small Boat Harbor. It was doubtful if his office could do anything about seating a Judge in Kenai as this is a Judicial matter. Morin said the meeting of 17 June was recessed to tonight to hear the Finance Director's report, to discuss insurance purchases for the next fiscal year, and to discuss the coming water project. City Treasurer Ray Burt said Mr. Nels Kjelstad was supposed to submit his pro- posal for Adams, Corthell, Lee, Wince and Associates at the last meeting. The item was postponed until tonight, and Kjelstad is in Anchorage. Meanwhile, the 4' City must move ahead with its plans to connect artesian water to the system if it's to be done this summer. Bids on construction of the trunk lines need to be let, materials ordered and specifications accepted. He would like to proceed on an hourly basis according to Kjelstad's proposal. This provides for ACLW's pre- paring location and design surveys for well and line; right of way maps and -plats; plans and specs for construction of the water line by City forces; a lists.of materials; as -built plans and for their consultation and design work for con- struction and development -of the well, including pumping, treatment and storage facilities as needed. Costs are figured on an hourly basis, not to exceed $116500.00. Should costs indicate they will exceed this amount, no work will be done without further approval from the Council increasing the scope of the project. The major burden of performance will be on the Engineer. Bruce Massey, W&S Supt. said the City can ask ACLW to do any portion; the City can contract the construction out, or the City can do different items; He has asked thatiRCW be the inspector on the job. The City's estimate of costs was $809000 under what the contractor wanted. Materials should be ordered now. Cost of materials is $666000 now - next year, costs would increase. The City crews can handle installation of the pipe line - he would work with them in early morning and the last thing in the evening, leaving the balance of the day free for him to work on the EDA grant application. The lines would not go over 10' deep, with a possible exception in the area of the Foss homestead where muskeg prevails. Malone moved, Bielefeld seconded, to engage ACLW according to the proposal. Malone said he was not sure what the State and Federal shares might be. The City Manager said he would go through the Dept. of Housing and Urban Development and they would see what we can get from the State,based on HUD's grant. Normally, this ratio is: 25% City, 25% State and 50S Federal. Also, the City can borrow its share from the State -&t no interest, subject to HUD approval. Any work or commitments made on the Project prior to HUD's approval will have to be paid for by the City and cannot beccnsidered as eligible for reim- bursement by them. Alan Corthell said the Dept. of Health must approve the specifications. When the wont is completed, the Engineer must certify to the Dept. the work was done according to the specs, and if not, why not. With the City doing the work, the specs can be simplified. Corthell also said the EDA grant very likely would not be executed in time to do any work this year. The applications should have been made before Christmas last year. After specs are completed, it might be possible to get approval from the Health Department in a week or two, if the applicant keeps bugging them. Kenai Council Meeting 6/22/70 Page two The State agreements have retroactive clauses for reimbursable costs, but this might apply only to water quality phases. After this discussion Council passed the motion to hire ACLW unanimously. duct said the City had only one responsive bid for insurance coverage for the City for Fiscal '71. The City has two routes to go: 1. Accept the bid of LaBow Haynes, or 2. Appoint a Broker of Record to shop for insurance at the best prices. He recommends the latter.IF 1. There is a satisfactory arrangement with the two local insurance brokers and 2. the price is reasonable. Morin said LaBow Haynes' bid last year was $11,000 under the other bids, but their treatment of some of the City claims was not exactly done with alacrity. There was considerable discussion as what a "Broker of Rocord" is is the agent, appointed by the City, to shop around for insurance at theA cos avimilable. Quotes for insurance from various companies are pretty much the same - what the City must consider is the best servicing of their claims. A Broker can be dis- missed by the City's appointment of another one. It's better for the City if the appointment is for a three year term as this gives the Broker,and the Cow panies involved,a better chance to quote lower rates. A one year contract for insurance is sure to cost the City more. Leo T. Oberts, representing his Insurance Co. and Troy Rice, representing R and L Company were in the audience and participated in the discussion. Oberts said his firm had acted as a Broker for the City in prior years, but had had no official designation as Broker of Record. He reminded Council that his firm had "carried" the City 4 or 5 months at a time when premium payments were delayed. He doubted an out of town company would be this understanding of the Ci ty's position. The City has the right to refuse bids if they do not meet the specifications. Rice said if the City appoints a Broker, then goes ahead and buys insurance, that Broker stilt gets the commission unless there's a revocable clause in the agree- ment appointing the Broker. It's important to keep the service in the Community, and to keep the money in the Community. A Broker takes the solicitation of bids out of the hands of the City and does the paper work. Councilman Bielefeld left at this time. Council adjourned for 15 minutes to discuss the problem. Re -convening, they asked the two Agants present if they would bid on being a Broker on a 3 yr. basis. They were told there's only 9 days left 'til I July. Bids could not possibly be solicited in that time - then, the City would be without insurance after 1 July. Doyle suggested giving both agencies a letter appointing them a broker. Oberts said the Companies go by the dates, and if two are appointed on the same date, each would nullify the other. He suggested on: Broker be appointed for three yrs. then the other be appointed for the next three years. He said the City of Seward handles their insurance in this manner. Malone moved, Bailie seconded, to appoint Leo Oberts Insurance Co. as Broker of Record for a three year period. Motion passed unanimously by roll call vote. Hornaday said his vote for Oberts Was.not meant to degrade the other Co. in any way, and that he would take a close look at the situation in three bears. Kenai Council Minutes 6/22/7U Page three Oberts said he would leave for Seattle tomorrow afternoon.He said an agent is not going to spend the time on servicing claims unless his commission warMants it. Thus a low bid on insurance does not always mean the best buy for the City. Meeting adjourned 9:00 p.m. Respectfully submitted, Frances Torki lsen City Clerk -i� '--WAY ---------- r The Kenai City Council meeting of Wed.. If7d e will re- convene in the Kenai Library at 7:30 p.m y 22 June. Frances Torki n Kenai Oty Cie v 77t 4LL :w........... ............................ . ,.. 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