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HomeMy WebLinkAbout1969-06-04 Council MinutesAGL14DA CITY OF KEI4AI REGULAR COUNCIL VERTI11C JUHL 4, 1969 - 6.00 P.H. V INVOCATION A. ROLL CALL 0"A-1. Administer oath of office to Hugh t:aloue and Bob Bielefeld B. . J�ERSONS PRESUN SCUL'DULED TO BE hLARD: P.1 1.W i %WV16L- IiNPIN6 2 , G. S- C. ✓51NUTES: 1. Regular Ileeting of Pay 21, 1969 D. PRRESPOWDENCE: 1. Letters from Senators Gravel and Stevens and Representative Pollock regarding Small Boat Harbor. Letter from Alaska State Housing Authority regarding Street and Subdivision Plan. �3. Letter from Oscar Thomas, President Kenai Chamber of Commerce announcing luncheon honoring Gov. Keith Miller June 9, 1969. E. PPORTS: 1 City Manager �1. City. AAt oruey 3. tfayoi; City Clerk Advisory Planning 6 Zoning Commission. ✓ti. Kenai Peninsula Borough Assemblymen. F. Oj,D BUSINESS: 1. Present specifications for ordering material and buying equipment for requirements of the City for 1969-70. 2. Present Lenal City Light major projects report for the 1969 construction season. 3. f G. W. BUSINESS: U.S. Air Force Arresting Barrier for Kenai Municipal Airport. i �Z>3. Request for partial payment by Harold Galliett for Tide - ads Survey 27.2) . _(ATS Ratify award of bid for Water Eoservoir to Cook Inlet Construction Company. 4. Ratify award of bid for Beaver Creek Valley Test wells to Thorn Drilling Company. �Z S. Appeal of Decision of Planning Commission regarding "Pet j ✓6. Shop" on Forest Drive. Request of Councilman balone for discussion of creation of Personnel Board as per Sec. 1-39 Kenai City Code. 7. Discuss Codification of Ordinances subsequent to No. 118. ✓8. Approve payment to Robert S. Oehler for work on CAP Bldg. Ho PERSONS PRLSENT NOT SCHEDULED TO DL ilEARD: 1. 2, i i r t� i 6 t r- L: AGLNDA CITY OF KEhAl REGULAR COUNCIL VEiTilaG JUNE 4, 1969 - 6 : 00 P jl. i IbVOCATIOH aA. ROLL CALL A-1. Administer oath of office to Hugh t_alone and Bob Bielefeld vB. PERSONS PRESENT SCULDULED TO BE hLARD. 1. PW 146%r8R _ Oovz;N 4 C, HINUTES: 01. Regular fleeting of flay 21, 1969 D . PRIES P0NDF�NCE : /1. Letters from Senators Gravel and Stevens and Representative / Pollock regarding Small Boat harbor. ✓2_ otter from Alaska State llousing Authority regarding Street and Subdivision Plan. Letter from Oscar Thomas, President Kenai Chamber of Commerce announcing luncheon honoring Gov. Keith Miller June 9, 1969.' E . XPORTS : City M nagar Citytorney 3. Hay r, City C1 k, Advisory Plauuing & Zoning Commission. �i. venal Peninsula Borough Assemblymen. F. D BUSINESS: 1. Present specifications for ordering material and buying equipment for requirements of the City for 1969-70. Present Lanai City Light major projects report for the 1969 construction season. 3. G. NP BUSINESS: /•��. U.S. Air Force Arresting barrier for Kenai Municipal Airport. Request for partial payment by Harold Galliett for Tide- \ lands Survey (ATS 272). 3.- Ratify award. -of bid for Water Reservoir to Cook Inlet Construction Company. __._. A-4. Ratify award of bid for Beaver Creek Valley Test Wells to Thorn Drilling Company. Appeal of Decision of Planning Commission regarding "Pet Shop" on Forest Drive. Request of Councilman Malone for discussion of creation of Personnel Board as per Sec. 1-39 Kenai City Code. Discuss Codification of Ordinances oubsequeut to No. 118. 8. Approve payment to Robert S. Oehler for work on CAP Bldg. H- PERSONS PRLSENT NOT SCURDULtV TO EL ilEARD: 1. 2. I KENAI CITY COUNCIL MEETING MINUTES 4 JUNE, 1969 A: Roll call: Members present - Charles A. Bailie. John Hulien, Billy McCann. Mrs. Florine McCollum and Mayor Eugene H. Morin. The oath of office was administered to newly elected Councilmen Robert Bielefeld and Hugh Malone who were then seated. Acting City Manager asked that B-1 on the agenda be amended to hear Mr. Don Meyer, of Marshall & Meyer$ Seattle, on bonding. Meyer said his visit was prompted by a letter from the City asking him to prepare a brochure for sale of all the City's authorized bond issues including the unsold 1963 bonds. He would like to bring a better message - but the bond market is at an all time low. The last several days it has worsened until it equals the 1933 crash; the rumored tax exemption on municipals and the money value makes this market the'lowest in history. The City Charter limits interest rates on bonds to tip; Council must decide whether to ask the people to lift this limitation or to replan the capital improv- ments programs. Barring an unforseen "miracle" wherein the entire national money market would change there's not a chance for the City to sell its bonds at 6%. Limits don't mean much as the market dictates what a bond pays; personally,he favors no limit; Council always has the right to accept or reject bids. He thinks 7 or even 8 percent would not be too high if Council thinks a limit is necessary. This situation is not just Kenai, or Alaska; in fact, the past several years the Alaska bonds are beginning to equal the lower 481s. This is a "National money -crunch" trying to correct inflation. Asking for bids on bonds now with a 6% limitation would signify to the bond market people that the City of Kenai doesn't know what it's doing. Rejection of all bids would jeopardize the City's chances for good bids at the next Invita- tion. Do not present them until you are ready to go. The election would have to not only change the Charter limitation, but would also have to vote again on the 1963 bonds to change.that limitation. Meyer answered questions for speakers from the floor: Mrs. Lauretta Knack- stedt and Ed Garnett. The Mayor and Council thanked Mr. Meyer for his presentation and for his offer to assist any way possible to work out our problems; As Meyer said, they are his problems too, as they have a big investment in the City of Kenai, and he wants to see us go ahead the best wady we can. Mayor Morin read the letter from Robert L. Coate asking an extension of the City's deadline as they are having a stockholders' meeting 14 June and can furnish the written documentation after that time. Another order for a generator has been placed with Fairbanks Morse. Strandberg says they have a 2,000 KW on the production line but he would rather have it go to 3500 KW. Councilman McCann said we should have Mr. Strandberg direct a letter to to the Kenai City Council asking for a postponement until after their annual stockholders' meeting June 14th with a copy of the request for postponement from Coate. We should recognize the problem and grant the delay until our regular meet- ing June 18th and on that date expect the answer to our questions gaswo ad in writing over Mr. Robert Coate's and Mr. Odin Strandberg's signature with copies of Mr. Strandberg's request and our action sent to the Alaska Public Service Commis- sion. While Mr. Strandberg was still present the Clerk brought up the item of CUL's assignment to Alaska State Bank which is acted on later in these minutes. With consent of Council the Order of business was changed to consider G-5 as item B-2. Mrs. David Hatton requested an appeal from the decision of the Planning Commission denying permission for Pet Shop as part of the non -conforming use of por of Lot 719 Sec. 31, T6N1, R11W. S.M. as a garage. Mrs. Hatton presented a petition and there was considerable discussion. The Code requires at least 10 days notice of Kenai Council Minutes 5/4/69 Page two Appeal so Council set 18 June, 8:30 p.m. for date of public hearing. Speakers from the floor during discussion were Ruby Coyle, Richard Carignan, Mrs. Hatton, Ed Garnett.and Stan Thompson. Mrs. Coyle asked legal guidance for interpretation as to what constitutes a non -conforming use.and asked the item be referred back to the Planning Commission. Council said it had progressed too far; they would hold the hearing, render a ecisioq. Any further action would Have to be itiated by otter +parties. Councilman Hulien left at this time. C-1: Minutes of the last meeting were corrected and approved. 0: Acting City Manager Nels 0. Kjelstad presented correspondence. 1. Gravel and Pollock acknowledged the City's letters regarding a Small Boat Har- bor. Stevens is appearing before an appropriations committee on 4 and 5 June to determine allotments for $70,000 and asked for material on our harbor. A dossier was sent to him. 2. Unless they hear differently ASHA will send 20 copies of the maps and a few copies of the report on street planning; the City would like about 100 copies of the map; Carignan said the Planning Comm. is studying a drafted ordinance on the plan. 3. Chanbe r of Commerce invites the public to dinner honoring Gov. Miller on 9 June at Royal Redoubt. E-1: Kjelstad reported: 1City Manager Harrison left 28 May to be gone about 6 weeks. Latest word from him was from E1 Paso where it was 105°. 2. Work on the reservoir and water test well on Beaver Loop has started. The I sealing material for the reservoir was obtained from Kenai and Homer; Larry Far - non donated the material from Homer - only the freight was changed. 3. The Clean-up campaign was a big success; Certificates of Merit were sent to workers; letters of thanks will be sent to City employees signed by the Mayor. 4. 9 June is daffy for the Investors' Tour; 15 financial institutions will be represented; they will arrive 11:30 Monday, have lunch, take a tour out North and have reception at 3:00 p.m. 5. Certificate of the Borough Assessor shows the evaluation for the City to be oe CRP 4P9,5I16 9H8 r, not the $38,127,310 originally estimated; this means a reduction ve5nues as sh in the budget in the maount of $8,591.00. 7. The Order of buss ess was changed to consider Item G-1: Col.Scroggins introduced Major Terhune who presented a design of the proposed arrestor barrier and explained its workings. It would be in operation only during . an emergency; would be placed wherever both parties agree; would be maintained by the Air Force or thru an agreement with the City; there would be no cost to the City for installation, mtce. or operation; Kenai is the first Civil airport this is to be used on; improvements and facilities similar to this may lead to installation of a tower for the airfield in the future; the cable should not inter- fer with snow removal- if it does, something can be worked out. Bielefeld suggested the rubber disks shoud have Day-Glo paint; this will be done. After discussion, McCann moved, Bailie seconded, to authorize the Air Force to install arrestor barrier on the air strip subject to mutual agreements. Motion passed unanimously. E-2: The Acting Clty Atty. reported: 1. They are working on litigation and water well leases. Kenai Council Minutes 6/4/69 Page three E-3: The City Clerk reported: 1. Council might want to consider a special meeting on 30 June to make awards for bids on the City's invitations on materials and equipment and for insurance. Some of the present contracts expire on 30 June. 2. Alaska State Bank called at 4:45 this afternoon asking if Council would auth- orize the City Clerk to sign an, assignment to ASU from CUL for $27,3�j.53. This was agreed to by Strandberg and is the amount owed by the City for purchase' of power; payments to CUL will henceforth be made in a lump sum instead of 3 or 4 payments a month. Bailie moved, Bielefeld seconded, to approve the assignment to ASB for CUL for 30 days for $27,321.53. Roll call vote: affirmative - Bailie, Bielefeld, McCann, McCollum and Malone; negative - none. 3. In order to meet absolute obligations for this month the City will have to borrow money; obligations amount to $42,000 but the Charter limits the amount to 75% of the receivables for that fiscal year. This sum is $19,000.00 and will meet the estimated payroll of $16,000 plus FWH taxes. Together with monies from other funds due General Fund it is hoped the gas bill, contract obligations for trailer rent, car rent, etc. can be paid, but the $10,000 due M&O Fund, the $9,000 plus due Galliett for tidelands survey, and many other bills cannot be paid and will show as Acct. payable in the Audit. In addition, this will not take care of payroll for first part of July, but another loan may be arranged at that time, 1f necessary, as that is the beginning of another fiscal year. Councilman Malone questioned the cause for this deficit; the audit will show the facts, but it appears that either revenue did not equal the estimates or the expenditures have exceeded income. McCollum moved, Bielefeld .seconded, to adopt Res..'69-.12;•authorizing bor- rowing for General Fund not to exceed $19,000.QQ for 60 days and authorizing the City Clerk to sign. Roll call vote: affirmative - Bailie, Bielefeld, McCann, McCollum and Malone; negative - none. Acting City Mgr. reported for the Planning Commission: 1. Conditional use permit was granted for Cassel condominium. 2. A study and hearing for rezoning Lots 19 thru 50, Bl. 9, and Blocks 13,14.15 and 169 Ahlstrom S/D will be held 11 June by the P1. Comm. and by the My Council on 18 June. 3. The Commission has taken up the study of the Cemetery. k y. There was some iscussion on the c ndominiu%ln� - P is will be reviewed by P.C. The Borough /Assembly report McCann included: YO 1. Kenai representative Morin was seated and did a good job. 2. There will be a 7 man school board - Morin's efforts to district the repre- sentation failed. 3. Res. re tax exempt municipal bonds was passed. 4. Hearing for Fire protection service area for No. Kenai will be 11 and 13 June. - 5. At the hearing on the budget, the mill levy was set at 5 mills; the City's mill levy for hospital area would be 1.5 mills.. : . - Morin will continue to act as representative. 6. The Boro will go ahead with improvements to Kenai Athletic Field. F-1: Wisecarver said they could not present specs for the Crash Truck until they make a trip Outside to see how it operates; he asked for funds for this; after discussion, Bielefeld moved, McCann seconded, to authorize expenses for one man from the Fire Department for the trip not to exceed $500.00. Roll call: Affirm- ative - Bailie, Bielefeld, McCann, McCollum and Malone; negative - none. Mahaffey said KCL cannot operate properly without a ditch -witch; the one they had son't do the work any more; he doesn't like to use the expensive digger �I � ■J IN I , Kenai Council Minu,.-s 6/4/69 Page four truck,,ond it is not made for the type of jobs where ditch -witch is used. After some discussion and study of the specs, McCann moved, McCollum seconded, to ad- 0 ve rtise for bids for a ditch -witch. Motion carried unanimously. Kjelstad said the budget allowed for such expense as estimated revenues ex ceeded estimated espenses. Ditch -witch costs about $6,000.00, ' F-2: Walt Steige said he would present a comprehensive report at the next meeting on the capital improvement for KCL for this season's work; he needs to figure man- '' hours. use of equipment, etc.; it will be hard to work without bond money - as we i` may have to do - revenues cannot take too much of a burden for capital improvements; some work can be handled with the crew and existing materials. He will follow the a Master Plan and report to Council next meeting. a, u � b G-2: Bielefeld moved, Bailie seconded, to authorize payment to Galliett for LL tidelands survey as soon as possible. Roll call: Affirmative - Bailie, Bielefeld McCann McCollum and Malone; Negative - none. a Tnis withholds 10% until the State approves the Plat. A G-3: Kjelstad reviewed the bids for water Reservoir and Test Wells in Beaver Creek Valley. S McCann moved, Bielefeld seconded, to ratify the award of bid for Water Res- ervoir to Cook Inlet Construction Co. (Coursen and Robinson) for $3,000. This: covers cost of equipment only - man hours are donation to the City. Roll call vote: Affirmative - Bailie Bielefeld, McCann McCollum and Malone; negative -none. G-4: McCollum moved, Bailie seconded, to rathy the award of bid -For Beaver Valley vs Test Wells to Thorn Drilling Co. for $39308. Roll call: Affirmative - Bailie, as Bielefeld, McCann, McCollum and Malone; negative - none. ..• b '" G-6: Malone said since the City is growing so much and personnel is increasing he +� thinks a personnel board should be created as ordered by the Code. The worMing is a "board shall be created" not may be; there has been no need of it up to this y time, but it should be available since the City is on a merit system and employees would find it a psychological value if not an actual tool. This will be on the b agenda 2 July. e G-7: The Clerk will inquire as to the cost of Codification of Ordinances follow- ing No. 118 by Dr. Spencer. e "- G-8: McCann moved McCollum seconded, to authorize payment of $556.00 to Oehler for work on the C.A.P. Bldg. Roll call: Affirmative - Bailie, Bielefeld, McCann, McCollum and Malone; Negative - none. Bldg. inspector, �+ The bldg. was inspected by the CAP, Air Force/and Kjelstad and is okay; the doors work, but Kjelstad doesn't think they will be satisfactory; these are the a, N doors CAP wanted. � r • b Bailie wondered if the City should ask for proposals for an audit so it could be done sooner; the City for this asked sometime ago, and no one seemed very interested. $ Gaines and Riley are the only C.A.P.'s on the Peninsula; the Clerk said Harrison had talked with Gaines about this year's audit and Gaines said he could do the work to a in much less time if the books are brought to the point ready for audit; if he doesn't have to do a lot of the actual bookkeeping work, it wouldn't take too long. ee s S The Mayor also cautioned against awarding bids to insurance agents; the low bid is not necessarily the best bid; out of State agents often don't concern themselves with the City's needs as a local firm might.' 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