HomeMy WebLinkAbout1970-08-19 Council Minutes0
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9i00 P. H. AUGUST 19, 1970
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C- XINUTES
1. August 9, 1970 • Regular fleeting
✓2. August l3, 1970 Special Meeting
D- CORRESPONDENLE
E- ..REPORTS a
1City Manager
A: City Attorney
3. Mayor
✓4. City Clerk
4. !inane Director
0 Advisory Planning a Zoning Commission
14. Borough Assemblymen
✓A. Payment to 4th Avenue Investment for Electrical System
Redoubt Terrace Subdivision.
�� Bid Award - Shop Supplies
Lease to Joe Ross, Lots 9, 10, il, Block Z, Cook Inlet
✓ ZrAustriai Air Park.
fire Department Coutsaat with City of Kenai,
Group Insurance - City Plan
$.g r ow6. Howth Air, Ines V1ein Consolidated Airlines - Spa*8 in Terminal
Building. i
Pf. Ron CMbs, Recteationai Program
S.
�3• ,� �1�1¢iIiESBs . ..
�,Sid Award - water Stu- b outs
! sli t _ of I"" • Northern Supply, Lot 5D Aleyoska
Subd vision tb NBA for suourity Purposes.
3. Budget Rent a Car - Counter Space in Terminal Building
4.
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MII4UTES OF KENAI CITY COUNCIL MELTING 8:00 P.M. 19 AUGUST, 1970
A: Roll Call: Members present - Charles A. Bailie, James Doyle, James Iornaday,
Mrs. Florine McCollum, Hugh Malone and Vice Mayor Robert Bielefeld; Members
absent - Mayor Eugene H. Morin.
8-1:. City Manager Robbins said the City attempted to buy property from firs. Art
Foss because this is the parcel where the City's test well was drilled as a re-
sult of an error in the initial survey. He hoped to handle this administratively
and had offered a price of $2,000.00. Mrs. Foss is present tonight to discuss this.
Mrs. Foss said the City -had offered $3,942 for one acre prior to this last
offer, and thought it would be only right that the City should stick to its bar-
ain. Her Atty., Roger Shaffer, said the land was worth much more than the
2,000.
Bruce Massey, W&S Supt., said the City had originally offered the $3,000
figure for a parcel 300' x 188' with the well on it. Now, the City does not
need the well and is only asking for enough land to afford a right-of-way for
utilities. According to the opinion of two legal authorities, the City has not
damaged her property by putting in the well, but has actually enhanced its
value. $2*000 is all that's budgeted for Ibis portion of the Project. This
must be settled tonight oc the City will have to run the gas line around her
property.
Shaffer said this price was unacceptable and would have to be settled in
Court. Council said that was Mrs. Foss' prerogative, but the City could not
afford more than the $2,000.
Malone thought if the $2,000 would pay for going around her property it
was a fair price to offer Mrs. Foss, but anything in excess of this would be
over the budget.
Hornaday asked to abstain from any vote as he is professionally involved.
Mrs. Foss said she would like to have one more day to consider what has
been said tonight.
B-2: Robbins said a plat had been drawn showing proposed modification of the
Terminal Building to accommodate Wien Airlines and Worth Air Inc. at no cost to
the City. An agreement has been reabhed by both parties, and he recommends con-
currence by Council.
.Wymand Rice, of Wien Consolidated, said they are applying for a lease which
must betapproved before modifications can be made. They want to put in a different
conveyor 'system, install two electric cargo doors, partition off an area for
their freight and share some of the cargo area and conveyor system with North Air.
He suggests the exhibit of the stuffed polar bear be moved to another location as
it hampers flow of traffic to the counters, and requests permission to put Wien's
decor on the wall behind their counter. All of this would be done according to
the building Codes.
In addition to approval of the lease, they are asking for approval of a
permit to use the Airport. He would like to negotiate one or two items in these
documents - they are not major changes.
Robbins said he had received word from G. P. O'Grady, Vice Pres. of Cor-
porate affairs for Western Airlines, that they would not object to cancelling
their lease on space in the Terminal Building if this space is tutmed over to
Wien.
8-3: Before arriving at a decision concerning Wien, Council thought they should
hear North Air's proposals.
Lawrence Clark,of Worth Air. said they want to solve the very large problem
of handling freight and have asked for permission to lease Space f23, which is
the former Gift Shop now leased by Jack Peck. They would install two offices
here and give up their present counter space to Wien. They agree to everything
set forth by Rice, and would share the cost of the modifications. He had ob-
Kenai Council Minutes 8/19/70 Page two
8-3, Cont'd.
tained an assignment of lease from Jack Peck for Space #23, but he would rather
work with the City than through a sub -lease from Peck. Going through Peck just
amounts to a lot of paper work for Peck, and affords him no income.
Clark asked: 1. Will the City let North Air move? 2. May they rent
space #23? 3. If so, on what basis? 4. May they share the back area with
Wien? They would remove the glass partition in the Gift shop at no cost to the
Ci ty.
Thee was discussion as to the merit of assigning the gift shop area for
purposes other than a gift shop. Bailie said there had been two businesses try-
ing to run a gift shop and couldn't make a go of it. Robbins recommended letting
North Air have the space until such time as Peck thinks a gift shop would be
feasible.
Rice said the No. 1 requirement of a Terminal is to provide facilities
for the travelling public and the owners of the building should provide the
space.
Malone said he was in favor of the proposals; that the gift shop should
not be kept empty,but lease forms should be presented for action.
Bailie moved,McCollum seconded, to rent space #23 in the Terminal Building
to North Air pending approval of the lease by the City Atty. Motion carried un-
animously by roll call vote.
Clark said there would be a change in income as Budget rent -a -car hopes
to use some of North Air's counter space. (Agenda item G-3.)
Council said the Administration had been asked to install one of the over-
head doors several years ago. The saving in the heating bill would pay for the
installation. Rice will negotiate for putting in both doors and the City will
pay for one of them.
Council also discussed whether or not to draft a new lease for Wien or
to assign Western's lease. This was an assignment from PNA's lease.
Until these details could be worked out, Bailie moved, Malone seconded,
to rent terminal space to Wien Airlines subject to negotiations. Motion carried
unanimously. This gives Wien lee -way to start modifications as they need to be
finished by 1 September.
Rice thanked Council and said Wien is trying to get approval of an ex-
cursion rate from Kenai to Anchorage of $25.00. The one way fare would remain
the same as would other rates to other destinations.
C: Minutes of the meeting of 8/5/70 were corrected: P.4, Item E-7(7), Delete
the words"This was formerly done by the Boro". P. 5, Item G-1, Para. 5, after
the words "with Doyle dissenting" add "Doyle asked if anyone had checked whether
or not Cook Inlet Construction Co. was a City tax payer". The Clerk said she
had checked later, and CIC was not on the Boro assessment list for Kenai.
Malone said the Clerk had been correct in stating the Rifle Range was not inside
the City.
Minutes of 8/12/70 were corrected: P. 29 Item 3, Para. 3, correct the
name of Jack "King" to Jack Daavis of Mukluk Freight Lines.
D: Correspondence is handled in other items.
E-1: The City Manager reported:
1. FAA is holding open house this week in their facility on the second floor of
the Terminal Building and invites the public to visit them. They have a very
nice display of historical items.
2. At the invitation of Robbins, Donald W. Smith, Electrical Safety Inspector
with the Dept. of Labor, had made a tour of KCL facilities and had submitted a
Kenai Council Minutes 8/19/70 Page three
E-2(2), Cont'd.
written report wherein he said the limits on his report are something the City
can live with. Robbins has asked him to come again in thirty days to report
on these items.
Also, on the subject of safety, the City has problems in other areas:
the streets in some places need barricades, signs have been destrayed, or so
marred, they are useless. The City has a limited work force, a limited Police
Department and limited funds and cannot afford the wanton waste that is a part
of the permissive local environment, which is costing the taxpayer untold thous-
ands of dollars yearly. It is a problem the community itself must Face. The
City cannot keep the vandals at home; your tax dollar keeps them at large.
This week, two dogs attacked a woman and child. By the time the City
could get there, the dogs were under lock and key. The people were not harmed,
but again, I will point out to you that in this homespun and permissive environ-
ment we have tolerated a threat tof the public safety for many years. We have
tolerated too many other things -- every day I am approached by some citizen
v.� who feels.that since he has established local roots here, he should be exempted
from the provisions of the City Code. We want the good things that the Code
brings us, but we want no personal inconveniences to ourselves. I think it is
time for Kenai to wake up and accept some of the responsibilities that are in-
herent in life itself. Liberty and individualism are fine concepts, but they
end where the liberty and safety of other people begin. Sitka
3. A letter has been received from Michael T. Irvin, Chancellor of the/Diocese
of the Russian Orthodox Greek Catholic Church in which he expressed appreciation
for the "wonderful assistance and support which the community is giving" to the
project of beginning restoration of the historic parish house in Kenai. Robbins
said the local congragation will be ready to recruit thetr work parties when the
fishing season is over. The City will help them in any way possible.
4Drainage of the Carr Shopping Center Parking Lot has been accomplished by
digging a ditch 301050' and installing a manhole and culvert. This makesit pos-
sible to develop.Gusty S/D lots which formerly received the storm run-off.
5. FAA and the Dept. of Defense have given their deed of release for Gusty S/D.
6. Luke Caro is constructing a cyclone fence around his lot/in Aleyeska S/D as
�. recommended by the Planning Commission. 13
7. Planning Commission also recommended the road connecting Beaver Loop Rd. and
Walker Lane be reopened, but this will mean a Court case, and the City is re-
luctant to become involved in this while the Court case regarding CUL is pending.
The City is not relinquishing any claim to the road as a public thoroughfare, but
is delaying a decision until later. Some of the residents on Walker Lane prefer
the status quo, as they are now on a dead end street and not subject to unwanted
traffic.
8. Joe Ross's lease in CIIAP (Item F-3), has been reinstated as it was not re-
corded as terminated. Provisions were included which says he shall start building
this season and have construction completed by the end of the 1971 season. Changes
in the building will be to City standards; the City Bldg. inspector says the foun-
dattow ,- can be made to comply with the City Code. Rents are paid in full.
E-2: Atty. James E. Fisher reported:
1. He attended the hearing regarding CUL vs. the City. Creditors claims are de-
layed while they are re -organizing. The City's suit is stopped, and now we are
asking direction from the Court how the money owed CUL for monthlv power should
be paid. Testimony showed operating expenses, including maintenance on the Fair-
banks Morse generator, amount to $23,500. The Judge ordered the City to pay CUL
that much over any other demands. The balance owed will be paid to the Court to
be held by them. The schedule on which the City is paying is held to be legally
Kenai Council Minutes
8/19/70 Page four
E-2(1) Cont'd.
invalid from the point of view of the Public Service Commission. The Judge
would not decide which is the right schedule, and the City will pay on the basis
of the one now followed.
The City's actions have prompted the PSC's interest and they will look in-
to the matter of the needs for an emergency supply of energy for Kenai, with CUL's
potential for providing this in mind.
Fisher reconwnds the City not ob.iect to the investigation of the PSC as
just the facts gathered could be helpful.. They will determine as to whether or
not CUL has reserve sources of power. Even if one FM machine goes dowr, there is
not.
The City will withdraw its moral support of the actions the City of Anch-
orage is engaged in concerning the PSC's jurisdiction over municipalities.
E-4: The City Clerk reported:
1. The record should show developments concerning the St. naming and House
numbering system, and the resolution of the problem with the contract to haul
the City's water pipe.
2. Surplus property has been paid for with the exception of the medical equipment
and the dump truck box. According to the City's policy, these items are now avail-
able on an over-the-counter basis.
Most of the property paid for has been removed from the lot in accordance
with the 10 day storage time permitted. In the past, the City has suffered im-
positions from new owners not removing their property in the time allotted.
3. The City finally has acquired a legal right-of-way from Cottonwood Ave. to
the Lee Apartments. In return for the City's paying that portion of the assess-
ments ($95.93 a yr. for 8 yrs., or a total of $767.44), the Catholic Church has
granted a 30' public use easement on the north boundary of their Lot 35, Sec. 6,
T5N, R11W9 S.M. The City has only a small utility easement on the South boundary
of the adjoining lot 33 owned by Anchor Trailer Court (which the City sold to
them in the first place!).
4. Council has received an excellent resume from the Alaska Municipal League of
the bills passed during the last Legislative Session with the voting record of
the Senators and Representatives on bills which affect municipalities. There is
also a resume of bills which did not pass, and which the League continues to
fight for.
Council has also received a proposed 1971 Policy statement for State and
for Federal Programs which will be considered at the 1970 Convention. Many of
these programs have been urVed by the Cities for years. Little by little, ad-
vantages are gained, but it s a struggle. Council should decide if Kenai sup-
ports these policies and should so instruct its delegates to the Convention.
The Convention will be Oct. 21-24, Wed. thru Sat. in Fairbanks.
5. City Librarian, Mrs. Georgia Struble. has asked if the Library may use the
building on Mondays from noon 'til 8:00 p.m. for library purposes.starting after
14 Sept. This will give her time to recruit volunteer help, and will make the
Library open • , on four days of the week. Council said to go ahead as long
as no other committments have been made for the space.
The Clerk suggested a letter of appreciation be directed to Mrs. Struble
for her excellent work on behalf of the Library.
E-5: Ray Burt reported for the Finance Department:
1. Concerning the status of the end of the year business, the books are closed,
and they are preparing for the audit. They have 80% of the accounts to reconcile.
2. The Burroughs billing machine is not satisfkctory. It takes too many man-
hours for maintaining bookkeeping records. He is thinking of going in with the
Borough on an IBM computer, or using a magnetic strip system with Burroughs. He
---
Kenai Council Minutes 8/19/70 page five
E-7(2) Contd.
will report further on this.
3. He has been doing a bond analysis: The City has $3,390,000 in outstanding bonds.
Our debt limit of 20$ of the evaluation allows for $8,860,000. Of the amount on
City bonds, $1,800,000 are general obligation and the balance is revenue bonding.
He heard there is an authorization for bonding for a bridge. If this exists, it
should be cancelled. There is no such authorization.
4. Fire Chief Wisecarver says the new crash truck is here. There are a few
modifications being made. Burt must arrange for financing. The contract to pur-
chase said the trucL must be paid for in two years. The City cannot meet this
obligation as this would take 2 mills of the City Budget. He will be asking for
Council's approval on a 5 yr. note.
Doyle said the truck will be delivered to the City next Tues. or Vied., and
we need a building to put it in.
Burt said Council and the Administration should decide on a direction to
go on the public safety building. More housing is needed for City equipment.
Council said anytime the Administration has a concrete proposal, they will be
glad to meet.
E-6: Planning and Zoning:
1. The City Mgr. will meet with Stan McLane on the House numbering system and
report later.
E-7: Malone reported on the Borough Assembly meeting:
1. Pay scale for the Boro was given to Bailie as per his request.
2. The Assembly met last night at 5 p.m. for a work session. They talked with
Sen. Palmer and there's an outside chance the Boro might get some of the State's
school construction monies. The only reason the Boro isn't elgible is that
the Boro built schools with revenue funds instead of bonding for them. There was
a mix-up in requirements and Hornaday asked why this bungling.
4. The original bill providing additional Judges designated one judge each for
Kenai, Kodiak and Anchorage.
5. An ordinance was passed for sale of $3,000,000 bonds for school construction
to be held the 15th of September at 9 p.m.
6. The Chairman reported the Hospital will be ready for opening by 1 November.
7. Change orders for the science lab in the Homer school were approved. This
construction is running $40,000 over the budgeted 1.9 million dollars.
8. The Assembly agreed on a statement of intent to place a bond issue for school
construction on the ballot for the October election. The size of the issue was
not determined.
9. Class rooms are being built in Russian Village and will be leased to the Boro
until they are no longer needed.
10. $416,000 was transferred from school construction money to finance construction
of the hospital. The Hospital will pay this back in the future.
11. At the study session on the school construction program it was determined
all the available money is used.
Bailie suggested the proposed sale of bonds, and the election on bonding
might confuse the electorate, and this should be thoroughly explained.
Doyle asked if anything was going to be done about a hot lunch program at
the Sears School. There Here conflicting opinions as to whether there was or not.
The cafeteria in the Boro office building will accommodate both Boro per-
sonnel and the Boro School Administration. These facilities cost only $540 as
against thousands to provide hot lunches at the schools.
At Burtk suggestion, Bailie moved, McCollum seconded, the Administration
and Atty. be directed to work to maintain a continuous source of power, including
cooperation with the PSC, if necessary. Motion carried unanimously by roll call
vote.
Kenai Council Minutes 8/19/70 Page six
F-1: Burt said the City has been negotiating with the developers of Redoubt
Terrace Subdivision who also own Etolin S/D and Carr's Shopping Center. There
are several points of disagreement between them and the City, and it seems every
time we talk, the City gets the short end of the stick. Somewhere the City
must make all the people live up to their commitments, and keep their part•:of,.the.1
bargain. The contract for repayment of cost for installing the electric system says
interest payments shall run from date of acceptance of the system. There were
many items that needed completing which were finished only a few days ago. Burt
proposes to pay interest only from that date. The as-builts are not available
even yet. Robbins concurs in this date of acceptance, and said 4th Ave. Invest-
ment has been told the City would reconsider if they could show proof of accept-
ance at any other time.
Nornaday moved, Doyle seconded, to accept the recommendation of the Admin-
istration regarding the payment for the electrical system in Redoubt Terrace.
The motion carried with Malone dissenting.
The City has been collecting revenues from this S/D since 1968, but the
system was not completed until recently.
Burt also said there are 6 hydrants in Woodland S/D that need to be corrected.
They are not usable now as the "ports" are half -buried in the ground, or are so
low to the ground that they cannot be utilized.
F-2: Robbins reported on the bidding for sale of shop materials to the City.
He concurs with the recommendation of Jaynes that Bowman Products is much lower
than the others. Prices had to be converted as some were per each, some were by
the pound and some were in lots of 100. Even so, the total cost of such pur-
chases might not amount to much over $600.00.
Malone moved, Doyle seconded, to accept the recommendation of the City Mgr.
for purchase of shop materials. Motion carried unanimously by roll call vote.
F-4: Council received the third draft of the City's contract with the Kenai
Volunteer Fire Department which has been studied and discussed the past two weeks.
Doyle said this version was acceptable with the Fire Dept., but in Para.
7 the permissive "will" should be changed to the mandatory "shall". Council con-
curred and this was done.
Malone moved, Bailie seconded, to approve the Fire Department contract.
This replaces the three year contract which expired 8/18/70.
Malone moved to amend by adding, in Para. 4, "The Fire Dept. shall adhere
to the Budget approved by the City unless both parties agree to change it".
McCollum seconded, and the amendment was approved unanimously.
Malone moved, Bailie seconded, to amend Item 6 by adding "which records
shall be open to inspection by the City,or its representative, at any reasonable
hour". The amendment was approved unanimously.
Vote on the main motion to approve the contract was unanimousi
F-5: Finance Officer Burt repeated his former recommendation that the City with-
draw from the State Group Insurance plan and enter into an agreement with Trav-
ellers Insurance for our own life and major medical insurance. A meeting had
been held with City employees to explain the differences in benefits. This will
cost bbout $350 more a month for the up -graded plan. Burt is not sure the City
can handle this increase, so employees were asked if they would be willing to
share a portion of the increased cost. Twenty two out of thirty three employees
voted to pay $5.00 a month if necessary.
Heffner, speaking as an employee, said it was a good plan, but he didn't
like the idea of the employees having to pay anything. He said his departmental
budget had two month's unused salary, and maybe some of the other departments
Kenai Council Minutes
F-5, Contd.
could find similar surpluses.
Malone said lie was in favor of
have to pay, and suggested the budget
called surplus is a part of the City's
back.
B/ 19/70 Page seven
the plan, but didn't think employees should
could be revised. Malone said the so -
deficit, and will just have to be paid
McCollum moved, Malone seconded, to accept the insurance plan and the
City will pay the full amount. After brief discussion, the motion passed unan-
imously by roll call vote.
F-6: Handled under B-3.
F-7: Robbins introduced Ron Combs who expounded briefly on a plan to set up
a non-profit corporation composed of various civic and athletic groups in town.
I.e., Kenai Little League and other baseball groups, the ski clubs, and church
groups. A general Board of Directors will choose representatives to serve on
the Administration Board. Lands for recreation (baseball fields, etc.)and
the bldg. facility would be turned over to this corporation, programs would be
planned by them and they would govern themselves. These programs would be for
all age groups, and anyone interested could join.
It is doubtful the City can sub -lease the bldg., but some sort of an ar-
rangement can be made.
After some discussion, McCollum moved, Doyle seconded, the group should
be encouraged to go ahead with the Recreation Program and present a formal agree-
ment for Council's approval. Motion carried unanimously.
G-1: Robbins read bid tabulations for a contract for water -stub -outs on the
Beaver Valley Water Project: Prices are per lineal ft.
Firm 20' lines 40' lines
Williams Excavating $ 90.00 $ 180.00
Doyle's Excavating 59.00 99.00
Bullock's Excavating 187.25 243.50
After brief discussion, Malone moved, Bailie seconded, to approve the low
bid of Doyle's Excavating. Motion carried unanimously by roil call vote.
There will be about 42 hookups unless -:there are more subdivisions that
want to be connected. Money is available.
G-2: Robbins presented a lease assignment of Northern Supply, Inc. to NBA of
Lot 5, Aleyeska S/D. This has been signed by the owner "Cap" Faroe and by the
Bank.
Malone moved, Doyle seconded, to approve the lease assignment of Northern
Supply, Inc. to NBA. Motion passed unanimously.
G-3: Gale McCormack and Bary Klawitter of North Air and Budget Rent -a -Car ex-
plained to Council their proposal to sub -lease a portion of North Air's counter
space for rent -a -car purposes. They would bring in 1970 cars and have already
arranged parking spaces with Airport Parking Co.
.There was discussion on.congestion around the counter, and McCormack said
they would,place their counter three or four feet back from the present glass
wall partition, so there would be more room than there is now.
Robbins read a letter from Dave Keating, who was also present, and who
maintained there was not enough business in Kenai to support four rent -a -car
agencies. He said the.three agencies now operating could handle twice the traffic
they now have. Council thanked him for his figures, but said they had no right
to restrict businesses in Kenai. Their concern is space in the Terminal Bldg.
George Ackerson, representing Hertz, had no comment other than "They are in".
Malonq moved, Doyle seconded, to approve the lease of space in the Terminal
Building for Budget Rent -a -Car pending approval of a floor plan before the lease
Kenai Council Minutes 9/19/70 Page eight
G-3, Cont'd.
is formalized. Motion carried unanimously by roll call vote.
H-1: Gene Yerton, former KCL employee, asked to be heard to direct some questions
to the City Mana er. Concerning safety, Robbins said the new personnel regula-
tions had provisions for safety policies which would cover all departments of
the City. There is no date set for adoption of the manual, but Council and em-
ployees are studying it now. The State safety inspector was invited here in re-
sponse to charges of violations of the safety codes.
His eight point plan to Council concerning a contract with the IBEW
con-cerned advantages and disadvantages of entering into a contract with them. The
City conversed with representatives of the Union at their request. At no time
did the Citv recognize the Union as spokesman for Kenai City Light. Robbins
said he -made no..recommendation-,either wary as to whether or not to enter into an
agreement with the IBEW.
The 28% line loss for KCL this month is something that will have to be
explained by the Engineer.- The City has fretted for years over this line loss,
and has spent a great deal of money trying to correct it - mostly in engineering
studies, etc. Yerton said the linew losses for KCL amount to $75,000 a yr.
John Strother, former KCL employee, said if the City would discontinue
serving power to Wildwood, the City would have ample power for its own needs.
The City's contract with Wildwood does not allow one cent of profit to the City,
and should be discontinued, or made economically feasible. Council said there
were circumstances involved that were still under negotiation and study.
Strothers asked when the City had last sent some of the electrical equip-
ment to be inspected. Percy Bergt, KCL Supt. said the blankets and "guts" were
new, and could be used at any time. Some of the crew chose to use the old ones,
Barber, of the IBEW, asked what was the power factor on the lines. Bergt
said the meter is out at the CUL plant. He has requested a new meter, and could
E not answer that question without a reading. Berber said his figures might be
in error, but he thought the power factor was 83%, and 98% is permissible.
Bergt says 80% is the permissible figure. Barber explained a too low power
' factor means a resident might pay for 144 watts, when he is receiving only 120w.
He said the City of Anchorage checks their power factor weekly.
r = Malone said the City is not defending its system. A lot of these things
could be corrected with money.
Robbins said the City had purchased a bankrupt system in 1963 because
there was a great need for power facilities. By constant struggle and slow
growth, the system is now an 8th rate system. The City will continue to try to
up grade the facilities. The electorate would have a say on whether or not the
system should be sold. The City bought the system in order to control the rates
- and keep costs to the public at a minimuan.
James England, former KCL employee, said the City was using poor economic
advice when they will spend $9600 to pick up one customer, which was done this
- summer. Power from HEA was available to this customer, but the City ran tines
to hook him up. And at that, the man had to wait four or five weeks to be con-
nected. England said the City could have bought a power factor meter and done
a lot of other constructive things with this money.
H-2:
Walt Bullock, of Bullock's Excavating, asked if the City's decision to award
the excavating work on the Water Trunk Line was final? He said Council should
give thought to keeping the business in the City. When bids are marginal it's
to the advantage of the City to award contracts to local people. He has $225,000
on tb*e City tax rolls. When he gets a contract he follow through on it. The
Councils-reversal'of its decision to hire his firm in favor of another firm,
in effect, means the City hired one man to do the work, whereas his firm em-
Kenai Council Minutes 8/19/70 Page nine
H-2. Cont'd.
ploys six men, plus two in the office. How much money will stay in the area for
one employee? 001;.of his cbritracts, 45% of the money goes for payroll and 25%
for services. He does not intend to take any legal action concerning Council's
reversal, but thought he should have received a letter, or Council should have
withdrawn its award to his firm. The Clerk had notified him of Council's actions,
but he wasn't sure this was a formal notice.
A representative of Granit Drilling Co. present in the audience said he
agreed with Bullock that Council should consider giving the advantage to the
local businessman. He has bid on the City's projects for years, and has been
within a few hundred dollars of the winning bid time and again.
Council will consider adopting a policy of allowing a 5% margin to local
bidders.
Meeting adjourned at 11:50 p.m. for an executive session.
Respectfully submitted, //ff
Frances Torkilsen
City Clerk
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