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Home My WebLink About1969-12-03 Council MinutesREGULAR MEETING OF KENAI CITY COUNCIL 8!00 P.M. December 3, 1969 ROLL CALL —�-1 SiiARING IN OF NEW E8-OFFICIO STUDENT COUNCILMEN JA-2 SWEARING IN OF NEW CITY MANAGER, MR. FRED W. BARTER $ PERSONS PRESENT SCHEDULED TO BE HEARD 1. Walter Steige, representing the Kenai Chamber of Commerce and John Hulien, representing the Kenai City Council, reporting on their trip to Edmonton and Calgary. ``-Z. Y.A.C. Representatives request to manage Youth Recreation Center and to establish rules for pperation of the Can er 3 Aar•-.c�-- �w C- MINUTES po-C Minutes of Regular Meeting of November 17, 1969. kb— CORRESPONDENCE E- REPORTS ✓I. City Manager City Attorney /3 Mayor /�. City Clerk Advisory Planning and Zoning Commission 6. Borough Assemblymen F� OLD BUSINESS Approve Airport lease form. Z. Request of Police Chief Heffner to re -consider action of November 12, 1969, approving contract with State Dept. of Public Safety Res Telephone and Dispatch service. 3. Consider change in lease with Kenai Terminal Enterprises and North Air Inc. Ret Counter apace at Kenai Municipal Airport Terminal Bldg. :0, 4. Recommendation by Administration to purchase ..RCL Line truck. S. E 'l AGENDA Page 2 G_ W BUSINESS Consider ammeadment of Sub -lease Agreement with Phillip a Petroleum Co. Res Recreation Center Resolution Nr. 69- 25 y2. Consider contract with Glacier State Telephone Co. Re: Pay telephones in Airport Terminal Bldg. Request for permit to serve minors in restaurant at Katmai Motel. 4. H6. PERSONS PRESENT NOT SCHEDULED TO BE HEARD 1. 2. KbIAI CITY CUUACIL HEETIAG 3 ULCEN4 ER, lyoy A: Roll call - Mowers present - Cnarlos A. 6 ailic, Robert Bielefeld, John ilulien, Billy McCann, dugh Malone, Mayor Eugene II. Morin; Members absent - Mrs. Florine McCollum. A-1: Deleted. Student Council members not present. A-2: Mr. Fred J. uaxter received tree oath of office and was introduced to the audience. Mr. Baxter was hired after the nisignation of Mr. Raymond F. darth, who left the services of the City the day he arrived, due to Illness in his family. B-1: Councilman Hulien reported on the successful and beneficial trip to Edmonton, Alberta, sponsored by the Chambers of Commerce. Edmonton is still experiencing fluctuation in their economy due to development of oil and gas in Alberta. It was hoped Kenai could benefit from their experiences as we have many of the same problems. The Administration and Councils must know when to spend money and where; transportation - airlines, railroads, etc. is an im- portant factor, as well as communications. The economy will have boom periods and slack periods; company towns are not a good idea - and huge shopping cen- ters may not be the answer either - a town should not have too much congestion. A City should own as much land as feasible; if land is not available to industry, prices soar; City owned land can keep the price stabilized; strip zoning should be avoided - no use selling the City short just to accommodate a few. If your area has the natural resources - and the market for them, you can't sopt the growth - it's inevitable. Those wno should know estime the taxes in Edmonton would be 16 mills high- er if utilities were not City owned. Re power - they recommend ownership of generation as well as distribution. They do not use bonding for capital growth. Their tax rate is 64 1/2 mills on 34% of evaluation for residences and 60% on commercial property. River water is used for their source of water. An air terminal, or at least, a cargo distribution center,close to town is necessary; airports too far away are no help to businesses dapendent on air transportation - as 'we are in Alaska. Mr. Walt Steige reported on the visit to Calgary - which was part of the same tour Mr. Hulien had. Calgary is more of a financial center for Alberta as opposed to Edmonton being a manufacturing center. Calgary has many- storied office buildings. Both cities are progressive and ambitious. Oil, gas and petro-chemicals have con- tributed as much as 51% more growth than would be had under normal conditions. Business men had compiled a 14 point program to attract business: 1. Form a Committee to work on industrial programs. 2. Keep your statistical data up to date. 3. Maintain data on available sites. 4. Cultivate others - banks, businnesses, State governments. 5. Keep;, lists of companies and types of industry interested in the area so you can make offers when opportunities are present. 6. Don't over -look small companies. 7. Remember to show concern to already established industry. 8. Plan your areas and protect it with zoning. 9. Forget concessions; big companies don't expect them and won't need them. 10. Have patience for the long -haul - don't expect results over -night. 11. Hire an industrial Commission. 12. Don't be disappointed if a program doesn't develop; you may have a chance later on. Kenai Council Minutes ll/3/69 Paqc two Steige's report, cont'd. 13. Conduct local education programs so your people will know what is going on and what is needed. 14. Create a proper business climate - recreationally, economically,- . socially and culturally. People make an impact on a community; it was estimated one industry could crdate,750 more jobs; be prepared for your economy to taper off and boom again - cycles should be expected. Council will consider inviting the Canadian delegation to Kenai to talk with them and perhaps with borouyn officials when they come to Alaska for meet- ings in Fairuanks and Anchorage. The City will also thank them for their hospitality to our representatives. The Mayor asked for an executive session to talk priorities with the City Manager. B-2: Deleted,as members of the Youth Council were not present. The City '.igr. also wants to discuss some of the rules for Recreation Center with the Atty. 11-3: Ira English explained he was applying for a permit to serve food to minors in the Katmai Bar when tney are accompanied by an adult. Bailie moved, Julien seconded, to approve the application for a permit for Katmai Motel. After some discussion and concurrence from the Atty. the motion passed by roll call vote with McCann abstaining with consent of Council. C: Minutes of the last regular meeting were corrected and approved. D: Kjelstad reported on correspondence: 1. The Little League wants to use the Terminal Bldg. for a dance 24 Jan' 70; occupants of the bldg. do not object and the Airport Mgr. says okay. Hulien moved, McCann seconded, to approve the request for Little League to hold their dance at the Terminal Bldg. Motion passed unanimously. The League must furnish their own insurance and will attend to clean-up afterward. 2. Council rec'd. letter from KUSCO re refunds to its customers. 3. Data was spent on request from Fairbanks News Miner for their annual publication 4. Council also received copy of policy for news releases. 5. Letter was received from Labow Haynes Ins. explaining why they were late in responding to the Dolchok claim - Dolchok now has his money. 6. Letter from Ken Branch re final payment for tideland survey; on two different occasions Council has ruled this would be made when title was rec'd from the Div. of Lands. A letter from the Div. of Lands has approved the Plat, but the City has not had the originals returned and has no copy of them. After dis- cussion as to the terms of the contract, atc. Malone moved, McCann seconded, to pay Galliett and Branch the final 10% when funds become available. Motion passed unanimously. The City Mgr. will review the contract before payment is made. 7. Letter from U.S.G.S. says they are nearing the end of their study on water sources; the study and maps include our two artesians as well as soil studies at the well sites. The City will try to procure copies of the study. They match funds up to $10,000 for work the City does on the water study. The City hopes to drill another test will closer to the High School when funds allow. 8. Western Airlines replied to the Chamber of Commerce' letter saying they have their points under consideration re air fare raises. Kenai City Council Minutes 12/3/69 Page three E-1: Acting City Mgr. reported: 1. Request to have Christmas party for employees, Council and spouses. Cost would be $2.50 each - catering to be done by Ladies of the Elks. Council thinks this is a•good time to renew relations with employees. The Party will be 19 Dec. at the Elks Club. 2. KCL Mgr. Percy Bergt was re -introduced and is now on the job. 3. Work on the recreation center is progressing; gas line is to go in soon; water and sewer will be connected; City crews are doing the work. Dedication ceremonies will be held at 1:30 p.m. 12/19/69. A temporary plaque will be presented showing donors of the bldg. Permanent plaque will be installed 1 atee. Phillips and Marathon representatives will be present and Council is urged to attend. 4. Water and sewer needs a loan to finish the Fire water reservoir; Bond money for this purpose was used to help pay for test well drilling and other improv- ments to the system. McCann moved, Bailie seconded, to approve Res. 69-26 applying for a loan not to exceed $26,000 at the lowest available interest rate. Motion passed un- animously by roll call vote. Massey estimated costs to finish the Project to be $37,711 plus perhaps some minor charges. The Clerk said this loan plus the balance of the bond money should handle it. E-2: The Atty. reported: 1. the City should keep trying for lower air fares. 2. The Brookings Seminars and findings will have a far-reaching affect on the State and municipalities.from and economic point of view. No other Slate has had this much money - urbanization will occur; the economy will devebp in areas of national competition - oil gas,timber, fisheries and tourism. Atten- tion is being directed to the State's aid to Cities. Education will receive an assist also, as will environmental protection - parks, recreation, polution, etc. There was discussion on items in the proposed airport lease form. Approval will be deferred 'ti 1 next meeting. The Mayor questioned the Atty.: 1. Replying to questions, Peck (Kenai Terminal Enterprises) has not answered the Atty's queries. Morin suggests the City take steps to cancel the contract the next time a check bounces; the Cafe is not being kept open as constracted for. There are 2 or 3 parties ready, willing and able to take the Cafe and Bar and operate it. 2. Fisher had no opinion as to the Fed. Govn't's claim on the 900,000,000.00 oil lease bonus money. 3. Morin urges the Administration to write regularly to Div. of Nat. Resources, reminding them of our application to 1/2 the flow of the Kenai River. Only by constant prodding can the City hope to get any action. - E-3: The Mayor reported; 1. Introduced "Johnnie" John son, new Chamber of Commerce President. -- 2. Asked consideration of ad -.in Fairbanks News Miner on next agenda - what is costs- 3. The City's letter of thanks to BLM for assistance during the Fire was answered by letter of appreciation from them for OUR help. �. There was some discussion as to the possibility of the City reaching an agreement with the Boro on boundary lines as to who will service fires in what i areas. Mark "zones of influence", determine costs, etc. 4. Planning and Zoning Commission will be asked to study site for rifle range. � I E-4: The City Clerk reported: 1. Don Meyer, of Marshall & Meyer outlined four points for Council's considera- tion. Kenai Council Minutes 12/3/69 Clerk's report cont'd. page four 1. Short tern loan for W&S - already discussed. 2. He will ask Thorgrimson to re -write the Ord. selling $25,OOU KCL Rev. bonds. They will be made a jr. lien as opposed to present ord. making them on a parity with past issues sold and those to be sold in the future; this is to avoid any cloud on future issues, and to make certain of legality of the KCL issue to Weiler. 3. With consent of Council he will contact Strandberg re firm power for generation. 4. He recommends the City consider scheduling bond sale for Jan. or Feb. of 1970; insurance companies are the biggest buyers of municipal bonds and as they are getting their books in order for the close of the year, they would not be interested in investments at this time. L. Council did not disapprove of any of these suggestions. E-5: No report from Planning & Zoning as they had no quorum at their last meeting. E-6: Malone reported for Borough activities: 1. All bids on the Homer High School exceeded 2 million dollars; the architects estimate was $1,350,000. An alternate bid for swimming pool would add $300,000 to the cost. F-1: Airport lease forms table at reauest of City Mgr. and Atty. F-2: Kjelstad reported Council had decided to sign the agreement with the State for Police communications; Heffner is still trying to work out a way the City can go its own, but funds are too scarce; Heffner and the City 14gr. will dis- cuss this and report back. F-3: Lease change from Alaska. Aeornautical, Inc. to North Air will be on next Agenda. F-4: Order for KCL line truck tabled 'tit next meeting. G-1: Kjelstad explained Phillips -Marathon needed an amendment to sub -lease agree- ment on recreation bldg. Malone moved, Bielefeld seconded, to approve Res. 69-25, amending Res. 69- 19, sub -lease agreement on recreation bldg. Motion carried unanimously. G-2: McCann moved, Malone seconded, to authroize the City Mgr. to sign the agreement with Glacier State Tel. Co. re pay phones in the Terminal Bldg. Motion carried unanimously. This agreement pays 15% of local call revenues to the City as rental for space in Term. Bldg. for pay phones. G-3: Considered under B-3. Heffner reported the break-in at the Russian Orthodox church is under investigation. The City will consider sponsoring the A.A. meeting on alcohol and narcotics. , Leo Oberts asked for copies of statements at the maetings in Canada referring to sale and price of land. He maintains it's the State sales that runs the prices so high - their appraised values are out of line. The mayor says local people are competent to run apraisals and should be so employed. espectfully bmit ed, Meeting adjourned for executive session on priorities. ;espect'-� � %l%� /d•�� Frances Torkislen, Clerk u • rya � ��,. . •��••� + I•r. rrr r..rr.rrr r•rrrr r.r• JIfIJ�JJI!r err .I. ♦.. r. r. . ... • I/r -fn R-eoA,'�9 t