The URL can be used to link to this page

Home My WebLink About1968-05-27 Council Minutes - Special MeetingCITY OF KENAI AGENDA SPECIAL COUNCIL MEET:TNG 00 PM May 27, 196'' A. Roll Call. B. Discuss Lease with Alaska BFrite Inc. of •the City Dock Property. C. Discuss inclusion of a sewer extension on Forrest Drive in the present assessment progrnm. G7?�yt 17/, wN. MINUTES OF SPECIAL KENAI CITY COUNCIL MEETING 27 MAY, 1968 A. Roll call: Members present - Robert Bielefeld, Chester Cone, Florine McCollum, Carl Seaman and Mayor James G. Dye. Also present: Councilman elect, Charles bailey; Mayor elect Gene Morin; Dir. of Public Works, Nels Kjelstad-, Atty. James C. Hornaday; and Engineers Gal- liett and Hoffman. C. With consent of Council the order of business was changed to consider the last item first. Harrison said the new S/D (Woodland), the new elementary school and Mrs. Killen awning Killen Estates, all located in the North half of Sec. 31, TO, R11W, S.M., wanted sewer services. He proposed this be considered as a change order un- der the present contract. This would extend the present line North on Forest Drive. Land owners would pay 100% assessment, and probably cash in a lump sum, 'tho Mrs. Killen objects to any kind of assessment. The Mayor opened the discussion to public hearing, but there were no speakers. During the discussion, it was bourght out: 1. The Boro paid for the water line to the school; 2. The COty will take the water line up to the center of the school property without assessments; 3. The Engineer says the system was designed to extend the system North; 4. The City could extend to the school without a hearing; 5. If it goes farther, there would have to be a hearing; 6. Gal l i ett suggests the City proceed on the basis of 100% participation on the part of the owners and see if EDA will accept a change order - in that case cash assessments would be less than 100%; 7. Harrison says there is enouqh money for this. Cone moved, Bielefeld seconded, to set up a hearinq for extension of sewer line North on Forest Drive. tlotion passed unanimously. B. Due to personal interest, Mayor Dye excused himself from the meeting and Vice Mayor Seaman assumed the Chair. Mayor Dye's interest in the Dock was established prior to his becoming Mayor. Before Dye left, Bielefeld asked if there were any documents to show how money was spent on the Dock; Dye said they could be produced. The Mayor then left the building. Harrison said the Council had two agreements to consider: 1. The City -Dye agreement wherein Dye releases all interest for a sum of $20,000 to be paid thusly: $5,000 on execution of the agreement; $5,000 by 31 Dec., 1968; $59000 by 1 June, and .•1 Dec., 1969. No interest will be charged on deferred payments. Agreem ant #2: between the City and Alaska Barite Company wherein they would lease the land, about 11 acres, less that owned by the Air Force for POL fac- ilities, on the following basis: %5,750 to be ;raid.. for two years on 1 June and :1 Jec. making a total of $23,000; the next three years payments would be made on the same dates in the amounts of $750 each payment, totalling $4,500 for the three yrears and $27,500 for the five yr. period. The first option would entail payments in advance on 1 June and .1 Dec. for the next five years in the amount of $750 each, totalling in the 5 yrs. $7,500. The second and third options of five yrs. each would involve payments semi- annually in the sum of 10% of the appraised value of bare land, said appraisals being made by a qualified appraiser acceptable to both parties and on the first day of the third and fourth option periods. Harrison said Alaska Barite had set up for business in the Seward area, but the earthquake destroyed thier chance to operate before they could get started; now they think Kenai is the place to set up their mill,.etc., and after consider- ing several sites, they think the place to be is the land lwned by the City and leased to Dye. This is Lot 10, Sec. 4, T5N, R11W, S.M. John Fleming, General Manager and Partner of Alaska Barite presented a Plat showing the proposed site for bringing in their 255' barge which will take barite ore, brought from Castle Island in Southeastern in Duncan Canal, crush it and mill it. They will produce bulk and sacked barite and will truck it to Rig Tenders and Arness Docks. Special Council Minutes cont'd. 5/27/68 Page two Fleming said they hope to dredg out for the barge and beach it; they prefer this to a fixed building as one never knows how the market will move; they need to get in on the high tide of 12 June and would be operating by 1 July; they would employ ten men; location would be between the present POL pock and the•Standard Oil bulk plant; They would bring in a load only 3 or 4 times dur- ing the fishing season so should not interfer with the fleet; they would stock pile enough ore for winter so as not to be fighting ice, etc, at that time; the crushing and crying should not produce any pollutants in the water or the air; they do not anticipate using the present dock tho' the City is trying to buy this from the Air Force; they would -build their own road from Beaver Loop to their facility - the City might doze out the muck if possible; they want to cooperate in every way possible with the City and the Codes and hope to make this an asset to the economy of the area. Harrison said he would see about the Uept. of Hwys. plan to vacate the old portion of Beaver Loopwhen he is in Anchorage tomorrow. The meeting was opened to public hearing; Speakers from the floor were: Harold Galliett, Mr. and Mrs. Coyle, John Fleminq, Atty. Hornaday and F. Torkilsen. The public hearing was closed and Council and the Atty. discussed the contracts; changes were instituted to protect the City regarding insurance, hold - harmless clauses; or cancellation of options, etc. There was also discussion on :points raised by the Atty.; i.e. licensed to do business in Alaska? sewage disposal from the barge? etc. Fleming answered these satisfactorily. McCollum moved, Cone seconded, to direct the Atty, to draft a lease with all corrections between the CVty and Alaska Barite for the 5 June meetinq. Motion passed unanimously. Fleming expressed some concern over the time element. After further dis- cussion, Cone moved, McCollum seconded, to allow Alaska Bertie a right of entry, at his own risk, provided no damage is done to existing facilities. Motion passed unanimously. Fleming further stated,'in:the,event the contracts are not consummated, they would leave the area as they found it, or as the City Council directs. This is in the event Council wquld prefer having the dredged space left that way rather than being filled in again. The City Manager announced he and his wife were holding a coffee hour Fri. 31 May, 2:30 to 4:30 p.m. in the Library as an expression of appreciation for the coopera- tion the City has shown during the past three years of his tenure in office. Carl Kobbins asked about the time schedules for holding hearings, etc. and was told the hearing for sewer services to Woodland S/0 would be next Council meeting 5 June. He also said they would be applying for services for power the next morning. Harrison explained the City takes these applications as they are made, and t(obbins should have applied several weeks ago; however, if the City crew cannot get it done, we will try to contract for the connections if a contractor can be found who would git to the job right away. Kobbins questioned the City's policy regarding watermains the subdivider ------ - I puts in, at his expense, and a main that is over -size for his needs, then this line is available to the land owners on the other side of the road, at no expense to {; them. i Harrison said they would pay assessments just as anyone else; that Kobbins was installing their line from a main ►irhich was-run'to their property at no expense to them; that they were not paying part of the costs of the wells or treatment system. There was some discussion on this and FDA's part in the financing; Galliett raid if there was any deviation now, the entire system would have to be re -assessed. Meeting adjourned at 100,7 p.m. 0,-sc. Respectfully submitted, Frances Torkilsen City Clerk 117 -2o,*-.� c� s t � ...... •............nnn i�n��.. ... ..... ��.. .. .. �.,. n.. .. n,,....»»»..................,......... otvn