HomeMy WebLinkAbout1969-02-19 Council Minutesr
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AGENDA
REGULAR MEETING KENAI CITY COUNCIL
STERLING SEARS ELEMENTARY SCHOOL
8:00 P.M. February 19, 1969
INVOCATION:
w-A: ROLL CALL:
✓ 1 Public Hearing on Wien Consolidated Airlines Application.
2 Public Hearing on Peninsula Bus Service for a Bus Permit.
3 Public Hearing on Bond Proposals. etva * # e;.,o
B PERSONS PRESENT SCHEDULED TO BE HEARD:
1.
2.
3.
a'C: MINUTES:
Regular Meeting of February 5, 1969.
D: CORRESPONDENCE:
E: EPORTS:
1. City Manager
K. City Attorney
✓ 04FMayor, City Clerk, and Planning & Zoning Commission.
��. Kenai Peninsula Borough Assembly. '
F: pLD BUSINESS:
• Presentation of Ordinance on the Bonding Proposals.as
Emergency Ordinances.
✓2. Second reading of Ordinaace No.154, on re -zoning.
P4. Second reading of Ordinance I1o.155, relgtiog to Plann-ing.
and Zoning.
A,,'r. First Reading of Ordinance No.1E5, amending the Dog Control
Ordinance.
�5. First reading of Ordinance No.166, amending the Building Code.
'r•-6. Receive proposal contract for operation of the Sanitary Land
Fill Garbage Dump. r
r. Authorize Use Permit to Coast Guardfor a site for River
/. R n e Harker.
G NEW 8 S MESS: a
i(:1. Discuss western Airlines Use Permit.
- j. -Discuss lease -of tidelands to Inlet Company:
A. Discuss Public Hearing on rules for use of Kena.1 River.
Discuss letter of Loomis Car Service.
Discuss Inter -tie negotiations for Electric System.
;;Discuss settlement offer of C.U.L. for costs incurred for
power during the summer outage.
Ratify Council action to approve assignment of lease of Ira
�'�English on Katmai Motel to NBA for Security Purposes.
H: PERSONS PRESENT NOT SCHEDULED TO BE HEARD:.
1.
2.
KENAI CITY COUNCIL MINUTES 19 February, 1969
Roll calli Members present - Charles A. Bailie, Robert Bielefeld,
Chester Cone, John Hulien, Billy McCann, Mrs. Florine McCollum and
Mayor Eugene H. Morin; Members absent - none.
Since the space available for the public hearings was inadequate
Bailie moved, Bielefeld seconded, the Council meeting adjourn to the
Sterling Sears school and reconvene there. Motion passed unanimously.
Reconvening at8i75 p.mo agneda changes were made by adding
Item F-8 and deleting item G-1.
A-1, postponed until parties involvedcould be present, and who had
been delayed due to the blizzrd.
A-2i Harrison explaind the Alaska Transportation Commission had granted
approval of a permit to Larry Lancashire to operate bus service from
the Airport to points outside the City. Council wished to hold a public
hearing before making a decision as to what should be done. The per-
mit allows three trips a day and hauling of freight up to 1,000 lbs.
The meeting was opened to public hearing; there were no comments.
Closing the public hearing, the Atty. said this permit was:
1. temporary,2 restrictive andaregulated and he was inclined to recom-
mend its approval.
McCann moved, Cone seconded, the Council concurs with action
of the ATS and PSC as outlined by Atty. Fisher. Motion carried unanimous.
There are already four other permits for the same service though
some are not operative.
A-3: Harrison explained the legal advisor for bonding ruled there can
be only one size and cost for City Hall Bldg. Council had decided
the entire complex of two floors and both wings should be put before
the people; cost $1,000,000.006.a general obligation bond. Other G.O.
bonds are: Water - $150*000; Sewer - $1009000; streets - $1509000.
The revenue bond is for Kenai City Light, $750,000, Explaining the
latter more fully, $170,000 would go to pay back developers of sub-
divisions who had installed their own power lines and facilities as
a loan to the City; $300,000 would provide transformers for an inner -
tie with HEA for emergencies. It is possible this money will not be
i needed, but the City would be able to underwiite the inner -tie, so
the transformers could be ordered and ready when CUL and HEA reach an
agreement. If the transformers are not ordered until an agreement is
i reached, the City will very likely be wit -out emergency power for one
or two more Years as delivery date on tranformers generally is 46
months after ordering. $68,000 is needed for capital improvements
for 19699$212y000 for capital improvements for 1970 -71; if the
$300#000 is not used for transformers and inner -tie, it will be used
' for ca#ital improvements for 1972-3-4.
Harrison outlined the City's present bonded indebtedness and
showed annual cost to the City. He showed the revenue from the City's
anticipated evaluation of $23 million would return $2309000 to the
City at ten mills. The requirement to service one million dollars
in bonds at 6% for 30 years is $729648 a yr. If no new rate is
established it would require a growth of $7,264,800 to service this
bond, precluding any increases in cost of servicing the new growth -
which is highly unlikely. At the present time, the City is not spend-
ing one cent of tax money for bonds; obviously, this seems likely to
change for the next three or four years until the growth can aid in
aervicing them. The present bonds are being serviced from assess-
ments, service charges, etc. If everyone paid their assessments,
no tax money would be needed, but the State of Alaska and some others
Council minutes 19 Feb'69 Page two
claim exemptions which make it necessary to start paying with general
fund monies next year.
The meeting was opened to public hearing on the bond proposals.
Speakers from the floor were: Bill Wells, Stan Thompson, A.L.
Hudson, Odin Strandburg, Roger Meeks, J. E. Fisher, Clarence Ladd,
Oscar Thomas, Connor Wales, George Buckingham, Loren Mines,
G. L. Jaynes, Jr., Sam Cunningham, John Morris, J. W. Thompson, and
Mesdames Lauretta Knackstedt and Marie MacDowell.
There was some discussion on need for water: fire rating will
go up unless the City can provide more storage and a greater source
for water. Assessments do not pay for all of the bonding; if every
one paid, they are designed to do so; that's why there's a 10 yr.
pay plan for assessments and a 30 yr. pay for bonds. The City can in-
vest money to draw interest which is planned to pay for the bonds.
But the State does not pay; it.is hoped revenue from customers can
make up the deficit without the need for general fund monies to meet
the debt requirement.
Most of the discussion centered around the size of the City
hall Bldg. Several of the speakers thought the City should show the
need for so much space. Some pointed out the Terminal Bldg. seemed
too large when built, but was too small the day it was open for oc-
cupancy. Harrison stated, even now, all the space in the lower floor
allocated to City business will not accommodate all the desks that
will be needed; even with this bldg., the Airport personnel will con-
tinue to use the Terminal Bldg. Right now KCL has offices in a quon-
set hut, and the present City Hall has bad office trailer space added,
but it still is not enought to handle the business. The .design of
the library, theoretically, will handle a population of 7500; the
police area is to handle a minimum force, and the fire hall will ac-
commodate the present material, personnel and equipment.
The upper floor of the bldg* will notbe completed, but since
it can be built for only an added $150,000, it was thought advisable
to include it in the design, and to finish it later.
State Library funds may assist in construction; $15 to 20
thousand dollars from sale of Health Site will go toward construction
of the Health facilities.
It is possible that other government funds could be obtained;
the developmental effect alone of establishing a regional office
center might make it possible to obtain low interest loans, though
no money is funded now for this.
The land will have to be paid for, but the money will go to
the Airport as both sites are owned by the Airport.
Mr. Wells presented an up -dated plan for extending the present
Fire Hall into City offices; this plan was requested by Council sev-
eral years ago, but was not acted on. His proposal would build 3100
square feet at a cost of $500360,80, which is less than the cost of
the first year's interest on the million dollar proposed bldg.
It was argued the City could not function adequately with only
3100 sq. ft.
There was some discussion on the two sites; both have their
advantages according to the individual opinion.
After one hour and fifty minutes, there being no more speakers,
the public hearing was closed.
A-1: Mr. Hardburg thanked Council for the time and said Mr. Wien had
circled the field, but was not able to land to be present. He said
it would not be feasible to ask CAB for a route from Kenai to the
North Slope without stops at Anchorage and Fairbanks, hence they
Kenai Council Minutes
19 Feb'69 Page three
could not amend their application. They have had no answer from CAB
yet* and no inkling as to how the decision might go. CAB plans to
hold and intra-Alaska investigation; the City could pass a resolu-
tion asking the CAB to act on the application.
Minutes of the last regular meeting were corrected and approved.
E-lt the City Manager reported:
1. He will thank the School for use of the bldg. tonight.
2. Temporary men are being hired to thaw frozen water lines; the
frost is 7 and B fte deep this winter.
3. Buckingham has recommended approval for the electric system in
Woodland S/D Part III.
4. A letter has been directed to Lounsbury outlining what Council
expects of them.
5. Recommended payment to Lounsbury in the amount of $20034905,
6. He will try to get a legal opinion from the Atty. General that the
State•-ist-IlAble for assessments for improved property.
7. The PSC approved an application for Carl Adams, Jr. for freight
carrier within 30 mile area.
Be The City will answer Mayor Boucher's letter regarding the dis-
aster tax; we have no(opinion either way.
9. The 5 yr. Highway Program has everyting Kenai has requested; i.e.,
the Urban Section, improvements to the Kenai Spur and the BRIDGE.
10. Letter from the Fire Rating Bureau today says the City must
have more storage and further source of water to maintain its present
rating.
11. Due to the Holiday Saturday, and in conformity with the Personnel
Plan, City Hall will be closed on Friday.
12, A reception will be held on 5 March in the Black Gold Room frith
Northern Commercial personnel. Happy hour from 6 tc'79 inspection
of the new stor after that, and prioer to Council meeting at Be The
Chamber of Commerce luncheon will also be devoted to No. Commercial.
13, The City has received its first major bldg. permit application
for 1969; a $150#000 shop to be built next to the Telephone office.
Cone moved, McCann seconded, to pay Lounsbury and Associates
$9f034fiD5.•:'cMotion carried unanimously by roll call vote.
E-2: The*Atty. reported:
1. The notices of election have been sent to both local papers.
2. Notices of applications before ATC were sent to assist Council in
action on the bus application.
3. He has a change in one of the bond ordinances when this item
comes up.
4. He will submit a written comment on Western Airlines use permit
regarding Paragraph 15 where he proposed to insert the word "unreason-
able". There are some changes in'the document, but with the suggested
amendment, he thinks the City can live with them.
McCann thanked the Chamber of Commerce and all involved for paving
the way for their meetings with various delegates and representatives
In Juneau. it was a very productive trip, and they were assisted in
every way possible by the Legislators
John Morris agreed, and said the City should send a similar
delegation every year in the future, Hornaday had discussed and
urged the public defender bill= a dist. atty, for this area, They
had pushed for a community college, armory, fish hatcheries, re-
Kenai Council Minutes
19 Feb'69 Page four
habilitation of streams, highway improvements, etc. They met with
both the Senate and the House members, and many Department heads.
Harrison said he had been told there would be no bill regarding
the Public Service Commission stronger than the Governor's bill, and
maybe not even that would be passed. The City can abide by responsible
regulations and would not object tc such. Their reception was more
than cordial, and there seemed to be surprise that the delegation was
comprised of Kenai-Soldotna mambers.
The $2509000 hospital bill passed today, and there's a possi-
bility of a of $500*000 grant of -the money is voted in the Boro election.
Pollution control was urged for the whole State; Opening of
the South Cook Inlet for exploration and drilling was urged.
The Cites will thank each Legislator, etc* for the help and con-
sideration given.
The Planning and Zoning Commission reported, through Harrison, they
turned down an application for a trailer court in Walkerville; the
applicants are fully aware of their right to appeal to Council if they
desire.
F-ls Harrison presented Ord. 156, The Clerk presented names for judges
and clerks as followss Precinct #19 Judges -Louis Nissen, Georgia
Struble, Carolyn Nicholas; Clerks - Frances Meeks, Frances Torkilsen.
Precinct #2, Judges - Nedra Evenson, Karen Hornaday, Shirley Morgan;
Clerks - Andrea Tyler, Doris Day. All have consented to serve and
Council accepted this roster.
Bailie moved, Bielefeld seconded, to declare an emergency on
Ord. #156. After public hearing, with no comments, the motion carried
unanimously by roll call vote of the seven Councilmen.
McCollum moved, Bailie seconded, to adopt Ord. $156, Providing
for election on $750,000 KCL revenue bond. After public hearing, the
motion passed unanimously by roll call vote of the seven Councilmen
present.
Harrison presented Ord. #157.
McCann moved, Cone seconded, to declare an emergency on Ord. #157.
After public hearing, the motion passed unanimously by roll call vote
of the seven Councilmen present.
Bailie moved, McCollum seconded, to adopt Ord. #1570 providing
for an election on $19000,000 general obligation bond for City Hall.
After public hearing, where smme questioned the need for such a large
space, the motion passed by following roll call votes Affirmative -
Bailie, Cone, Hulien, McCann, McCollum, Morin; Negative - Bielefeld.
City Manager Harrison presented Ord. 0150.
McCann moved, Bailie seconded, to declare an emergency on. Ord.
#158. After public hearing, the motion passed unanimously by roll
call vote of the seven members of Council.
Cone moved, Bielefeld seconded, to adopt Ord. #1589 providing
for election for general obligation bonds for Water - $15090009 Sewer -
$100,000 and streets - $150,000. Atty. Fisher suggested an amendment
in Section 3 by inserting the words "acquiring, constructing and in-
stalling certain capital improvements to its sanitary sewage collection
and disposal system and for" between the words "of" and "contribution".
It was Fisher's opinion these words had been omitted as a typographical
error. After public hearing, the motion passed unanimously by roll call
vote of the seven Councilmen.
� l�
Kenai Council Minutes
19 Feb'69 Page five
Harrison is'preparirig a -two page sproad for publication for informa-
tion concerning the proposed bond election.
F-2s Harrison presented Ord. #154 explaing its purpose to automatically
re -zone 6nr area served by water and sewer to Suburban Residential.
Bielefeld moved, McCann seconded to adopt for second reading,
Ord. 0154. Motion passed by unanimous roll call vote$ after public hear
ing.
F-3t Harrison presented Ord. #155. for 2nd reading
McCollum moved, Hulien seconded, to adopt/Ord. #155, coordinating
the City's requirements for Planning, Zoning and Subdividing with those
of the Borough. After public hearing, motion passed unanimously by roll
call vote.
F-4t The City Manager presented Ord. #160.
After brief discussion, McCann moved, Cone seconded, to adopt
for first reading. Ord. #160, Amending the Code for handling dogs.
After public hearing, the motion passed unanimously by roll call vote.
F.-5t Harrison presented Ord. #162.
McCollum moved, Hulien seconded, to adopt for first reading
' Ord. #1629 amending the Plumbing and Building code. After public dis-
cussions the motion carried by unanimous roll call vote.
F-6s Proposal for contract for operation of Sanitary land Fill - Tabled.
F-7t Harrison explained had asked for a use permit for site for markers
by south end of Main St.
Hulien moved, McCann seconded, to authorize the City Mgr. to
sign the use permit for the Cost Guard. Motion carried unanimously.
F-Bs Harrison explained the contract for City Mgr. had been amended
to require 60 days notice to the City, instead of 30 days, in the
event of his resignation.
Cone moved, McCollum seconded, to approve renewal of the
City Manager's conctract as amended for 1969. Motion carried by roll
call vote with Bielefeld dissenting. He is not in favor of City Man-
ager's having a contract with the City.
G-ls Western Airlines use permit - tabled.
G-2s Lease of tidelands to Inlet Company will be reviewed after more
information is received as to the State's contract, requirements, etc.
how much land is involved, what the development program is, etc.
G-3s The City has no objection to Inlet Company's raising and lower-
ing the signal flag governing navigation at the Kenai River mooring
area.
i
G-4s The City can testify for Loomis' integrity in conducting thelr
present service to the City, but would not particularly endorse their
application for pick-up and delivery service.
G-5s There was some discussion on meeting between the City, HEA and
CUL regarding a design for an inner -tie. Odin said agreement has
been reached - it's engineering that is holding them up now. Harri-
son will direct a letter to HEA and CUL instead of setting up a meeting.
r
Kenai Council Minutes 19 Feb'69 Page six
G-6: Harrison explained, Strandberg had agreed to a settlement of
the City's billing for costs during the power outage in the amount
+� of $119639.449 to be paid off in 3 monthly installments,
McCollum moved, McCann seconded, to accept Strandburg's offer
of settlement. Motion passed unanimously by roll :all vote.
G-7: Council ratified action to approve assignment of lease of Katmai
Motel to Ira English.
Meeting adjourned, 11:30 p.m.
Respectfully submitted,
Frances Torkilsen
City Clerk
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