HomeMy WebLinkAbout1967-06-21 Council MinutesAGENDA
REGULAR MEETING, KENAI CITY COUNCIL
June 21, 1967, 8:00 P.M.
COUNCIL WILL MEET AT COUNCIL HALL AND ADJOURN MEETING TO HIGH SCHOOL
6 2/41
A. ROLL CALL: J %
1 Receive Flood Plane Study from Corps of U.S. Engineers.'v"
A 2 Hold Public Hearing on Proposed Ordinance #115, calling for an
Election to determine whether or not to grant a franchise for
natural gas service.
A-3 Hold Public Hearing on the 1967-68 Municipal Budget.
B. PERSONS PRESENT SCHEDULED TO BE HEARD:
1. f
2.
C,,)5INUTES:
' ogular meeting of June 6, 1967.
.,,Special meeting of June 12, 1967.
D. CORRESPONDENCE:
E. PORTS:
1. City Manager
-2 City Attorney
✓. Mayor, City Clerk and City.Commissions.
�. NFINISHED BUSINESS:
,1. Receive proposals.on removal of landing mats from the Kenai
Municipal Airport.. S
2� 3G
Receive Final Plat of Borum Subdivision.
✓Y. Receive Final Plat of Day Subdivision.
,ZK4. Receive tabulation report of bids for water and sewer material. f
� Receive report of status of Water and Sewer EDA Project.
✓6Receive report of bids for surplus material sales.
.-i Receive report on the C.I.I.A.P. Gas System Bids.
Adopt Resolution.No. 67-24 Adopting the Budget for 1967-68.
9. Adopt Resolution No. 67-25, Setting the Mill Levy for taxes for ,
10. Z
1967-68 Budget. i FAA.
G. " BUSINESS:
f
✓i. Change Official City Bulletin Board Location. �9
JL2. Receive Request for a Permit for games of skill and chance to
Eagles Club.
H. PERSONS RESENT NOT SCHEDULED TO BE HEARD: �
1.
2. t
MINLYFES OF KENAI CITY COUNCIL. DIGETING, .JR. ilI SCHOOL GY,%1 21 .TUNE, 1967
Roll call in the Library room: Members present - Bob Bielefeld, CHester Cone,
John llulien, Billy McCann, Florine McCollum, Carl Seaman and Mayor James G. Dye.
Hulien left at the end of hearings and did not vote on any motions.
fe Following roll call, Council adjourned to reconvene at the gym in the Jr. Hi School.
A-1: Mr. Wade of the Corps of Engineers presented the Flood Plain Study in brief:
The need for flood plain studies is becoming more and more important as the nation's
population expands; since 1960 there has been a pronounced increase in these studies
and this particular one of the Kenai River is long past due as floods have occurred
consistently under the right conditions; i.e. ice jams,, which are the main cause.
Management of flood plains can be maintained locally through zoning, subdivision
laws, building Codes, etc. The Corps of Engrs. can help with technical services
and guidance in flood proofing, interpreting the study and providing additional
data if needed.
Wade introduced his colleagues, Paul Duvall and Phil iloldsworth, Commissioner
Dept. of Natural Resources. Mr. lioldsworta said this study should be used by Cities,
Borough, State and BLN.
Mayor Dye thanked them for their presentation.
A-2: Mayor We gave a brief resume of past actions on studies for a gas distribu-
tion system for the City. Since gas was first discovered only twenty miles from
Kenai, the City Councils have maintained prices to the consumer in Kenai should not
be the same as those to Anchorage. Until a few months ago, no one had offered the
City any kind of acceptable proposals. In response to advertising, invitations, etc.
Covington Corp. presented a program the Council thought would be beneficial to the
people. This proposed franchise has had a favorable first reading in Council; to-
night this public hearing is to give everyone an opportunity to be heard; second
and final reading is scheduled for 5 July, 1967 at the regular City Council meeting;
then an election will be held to approve or disapprove the franchise; this is a
20 yr. franchise and rates have been published in the papers and mailed to boxholders
Dye invited Covington Corp. to give a brief histroy add thd:present status of their
company.
Bill Mabry, Vice Pres. of C.C. said the Co. eas formed in 1947 as engineer-
ing and construction co.; they came to Alaska to serve the oil companies, and sent
engineers to study the needs and problems of Kenai for gas distribution; they have
offices in Anchorage and have leased land in the Cook Inlet Industrial Airpark;
J. H. Whitney Co. of New York has joined them in operating this service and they
have the personnel and finances to make this good; Kenai Utilities Services is a
Kenai firm and will not be operated from Outside; the key personnel have operated
gas companies for many years; they can start the day the "go ahead" from the City
Council; they will service users within 1 1/2 mile of the P.O. by the 15th of Oct.;
their rates are 10% less than any in the surrounding areas; rates are not usually
spelled out in franchises, but the Kenai Council wanted this to be iron -clad and
so rates are in this rather than in rules and ragulations which will be acopted
later; these rates will not change for five years; commercial rates will be in
the r. and r., and will be equal to, or less than, any in the surrounding area.
Mabry introduced John Anderson, :Manager; . Covington Corp. and Carl
Kobbins, Utility Engr. for Covington. Information sheets with rates were distributed
to the audience and Council; data showed rates to be 10% less than the surrounding
area; rules and regulations will give commercial rates; once again they stated
commercial rates will be equal to, or lower than, any in the surrounding area.
Other Covington personnel were introduced also.
Dale Teel, Pres., Anchorage Natural Gas, introduced H: H. Bockstege, Vice Pres.,
. Paul Robinson, Anth. Atty. and Edwin N. Fisher, slice Pres. and Asst. to the
President. Teel said he has been with the Co. since 1960. Robinson was asked
to present Anchorage Natural Gas' request to have their name placed on the ballot
in the coming election on the franchise to give the people a chance to choose
which company they wanted in Kenai.
V
k � KiNAI COUNCIL MiNUrES 21 June Page two
Robinson said ANG had long experience with gas franchises in Anchorage, Spenard
and Soldotna; b years ago MG offerred gas to Kenai - also James L'. Fisher was
here representing another company; A 4G is a subsidiary of Alaska Pipe Line; they
have over 100 employees and have had years of experience in this service; their
commercial rates are probably 40% loss than Kenai Utilities; Robinson said Council
could accept ANG offer of franchise for first reading, then when the second read-
ing is held, they could turn one or the other down or let the people choose at the
election; they will pay franchise tas plus real and personal prop. taxes while
Covington pays only franchise tax. Atty. Dick Gantz intarrupted at this point to
say Covinton will also pay all taxes named without a raise in rates. Mayor Dye in-
vited comment at any time there was a legal matter involved. Anchorage Nat. Gas
can also furnish appliances, paid on installment plan along with monthly user
charges. Covington will also do this.
Teel explained graphs showing the difference in rates between the two com-
panies; Covington asserted this was not correct as they have stated time and again
their rates for residential are already 10% lower and commercial rates will be
equal or lower than any others in this area.
He also said they are now offering, for the first time, a 10% lower rate
and 40% on larger customers; the consumer can choose the rate he wants; ANG wants
to be on the ballot the same as Kenai Utility Service Corp.
The Mayor asked first for speakers living within the City Limits:
Carl Roberts, Jess Nicholas and Leo Oberts asked questions on rates. Teel
said again this was the first time they were offerring the 10% reduction in resi-
dential.
Ruby Coyle asked why make this offer now? Why didn't they offer this before?
Is it to keep competition out, now that the City has a chance to get gas?
Teel said at first they would have had to run a new line, but now (since
196s) service is available right in town.
Oberts asked why Covington Corp? The Mayor said the people were certainly
' aware of what was going on since the election an gas bonds. The Citv duly adver-
tised for proposals - not bids, because we weren't ready for bids, we even sent in-
vitations to three companies who had expressed interest in a gas distribution system
for the City because the results of the election showed the people were not over-
whelmingly in favor of the City getting in the gas business; the City spent $79000
on a gas feasibility study so w8 would knae what we were talking about and to know
what the situation was; Why this proposal now, you ask? Covington Corp. offerred
the best proposal - ANG's offer included 8 cents per mcf in lieu of taxes to go into
the General Fund, not to the individual user; they offerred the same rate as to
Anchorage and Soldotna; they never made the proposal they are making tonight, and
they had plenty of opportunity to do so. It really should be out of order to hear
what is being heard tonight. This should have been offerred when it was solicited.
The important thing tonight is the hearing on the ordinance to be presented not.to
the offer of MG. We have afforded them the courtesy of a hearing 'tho it is en-
tirely out of order. The City Council was not offerred this cheaper rate, but Coun-
cil is still receptive to the will of the people.
G. L. Jaynes said 'tho he was a City employee, he also helped elect this Council and
he had confidence in them that were doing what was to our best interests.
Council had nothing to say when asked.
Ruby Coyls said she was of the some mind as Jaynes. Miat about the ordinance'
Roy Tietjen asked about this regulation being served 1 1/2 mi. from the
P.O.; that he is only 100' from the line? Kenn# Utility Service said he would be
served if possible - a "gate" is to be installed out by Wildwood, but as the con-
struction season is rapidly going by, they felt they were doing the best they could
to guarantee service in this manner with the rest of the City to be served as soon
as they could. It is to their advantage to get as many customers as possible and
as soon as possible.
The public hearing was then closed and a 20 minute recess declared.
Kenai Council Minutes 21 .June, 1967 Labe three
A-3: The City .Manager reviewed the 190-68 budget and presented charts showing
expenditures and revenues. lie explained the source of revenue for all funds;
copies of the budget are available at City Hall; all funds balance and we think we ci
can live with this and still accomplish what Council wants; bond payments are pro-
vided for; a 10 mill lwPf is figured in thi budget.
Fisher asked if there was provision for a contingency, tho' he realized with
so much growth, it was hard to work out a budget. The City has figured revenues
conservatively and expenses generously, thus hopes to come out even. There is no
planned contingency as a budget item.
McCann asked about the Fire Dept. Harrison said the City will
probably have to give the Fire Dept. more help with their paper work;
may have to hire a full time fire chief next hear; may have to do it
this year if we have an unexpected source of revenue; no provision
was made this year for a policeman; $1200 was allocated to the Health
Center for utility bills; evaluation on real property last year was
$9,000,000 - $1204610000 this year; this budget does not provide for
any major capital improvements, but will allow some minor changes -
few more street lights; the City tries to keep plugging away at im-
proving conditions; Harrison said we could spend three times this
amount of money and not be wasting any of it.
Minutes of the meeting of 7 June were corrected and approved.
Minutes of 12 June were approved.
The City Manager reported:
1. Copies of the letter from the HeaiLh Dept* concerning acquisition
of the Health Center Site will be sent to Council; no action is ex-
pected tonight; we can get fee title to the leand.
2. The deed to 85 acres of park land was received today; we will
file the paper work now to get funds and the work started; Smith of
the Bureau of Outdoor Recreation was here last week and undoubtedly
was responsible for this quick action; City crews cannot spare time
to work there this Summer, but this Fall we will we will try to get
in the facilities that are most urgently needed - we have to match
$219000 - will try to get the complex on top, hockey rink, warm up
huts, and trails to them; one group in town is going to start a ball
park.
3. He recommends closing the alley between lots 10 and 16, B1. 19,
Original Townsite; i.e. between Miller's and 7ehrung's; this closure
would be in exhange for a r.o.wo for water 6 sewer. Council says o.k.
A public hearing will be set.
4. Letter from the Alaska Municipal League says the City has ten votes
if we want to send a representative.to the meeting in Boston.
S. A memo from Fisher was received on papers for leasing X-ray to the
Dr. and other equipment;.the City's agreement with the Dr. peeceding
Dr. Armstrong was to charge $1.00 for each X-ray plate since the City
had spent S19000 to get the machine fixed; it is not known for sure
if it is working now, as it was damaged again in moving; otherwise
the equipment is leased to the Dr. for $1.00 a yr. Council thot we
might get the X-ray fixed and get only that cost back. After some
discussion, Cone moved, McCann seconded to delete the $19000 charge
and approve the lease providing the X-ray is in working order. Motion
passed unanimously.
6. The floats below the bluff are not being used and are deteriorating
Barron Butler wants to put them out at Salamatof Lake; Harrison recom-
mends the City give them to him; the only expense the City had on
them was several hundred dollars transportation; Council says okay.
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Council Minutes 21 June'67 Page four
7. The Peninsula is still classified as being, qualified for EDA
grants; the City had one million from them last year; next year the
classification may change.
8. A letter from Durkee of HUD says application forms for advance
planning money for street design are being sent.
9. The material for electric lines toItloubt Terrace S/D is here; they
have the sewer lines in, water almost in and need power; the City will
work with Glacier State Tel. Co. and tel. lines will be in same ditch
as power lines and we will split the cost with them; Recoubt Terrace
will pay the difference between over and underground installation.
Since this cost is in excess of $2500 it must be advertised for bid.
Seaman moved, Cone seconded, to authorize Harrison to advertise for
bids to lay underground cable for power to Redoubt Terrace S/D.
Motion carried unanimously.
10. The trailer with display of Centennial Art Exhibits is now in
Kenai by City Hall and has some very good works displayed.
11. Vandalism at the High School has resulted in many thousands of
dollars damage; books, musical instruments, etc. The City has offered
to help in any way possible.to apprehend the culprits.
12. J. K. Blackard of EDA will be in town next Tuesday to go over the
two projects, look at the books and records; the engineers will be
here to work with him.
13. Harrison will attend a paid trip to Anchorage on Public Safety
next Tues. and Wed. One other City official is invited.
14. The bid opening was held on purchase of WSS materials and contract
was let, and Galliett has already reported to Council on EDA WSS, so
Harrison asked Iters F-4 and F-5 be deleted from this Agenda; also
the Police have asked for more time to work on the application for a
permit for games of chance and skill, so this item (G-2) should also
be deleted.
There was discussion on the use of Ft. Kenay; local groups will use
the rooms and schedule their organizations for its use just as they
did for the Library room.
The Mayor reported:
1. The Boro has raised the mill levy for Boro taxes two mills; this
is to provide a capital improvement funds for future school needs.
2. He did not get to go to Juneau to attend the State Bond conference,
but talks( with Sharrock; the meeting was well attended, and Kenai
will try to schedule its sale of bonds so as to get the best interest
rate and not interfer with other sales.
Carignan reported for Planning Commission:
1. they recommend acceptance of the Day S/D, but think the Ord. re-
quirement of 20pO(D sq. ft. for lots in Rural Residential Zone should
be changed.
2. Recommend a public hearing for a variance request by Jerry Thomp-
son for housing on Beaver Loop Road.
3. Recommend approval of Gabe Julliessen S/D Tract.
1. Hugh Malone reviewed the Day Plat: The City had approved it,
but the Boro requires 129000 sw. ft. for lots in this zone; the plat
was re -done, and lots do not have the 12.000 sq. ft. but the Boro had
said they would allow it; the City's ord. requires 200000 sf; Malone
says this is too large; noone was sure what the State Health Dept.
req.tres; Kenai Planning Commission recommends to grant a variance
subject to a change in the Ordinance; there was discussion on whether
to require 10,000 sf or 120000 sf as the Boro does; also as to who
Council minutes 21 June'67 Page five
rules, the Boro? or the City?
Seaman moved, Cone beconded, to approve Res. 67-27 accepting,
the Day S/D Plat. Motion passed unanimously.
Harrison will draft an amendment to the S/D Ord.
Seaman moved, McCann seconded a public hearing be held for a
request for variance for Jerry Thompson. Motion carried unanimously.
The Mayor appointed Gene Morin as a member of the Kenai Planning Com-
mission and as the representative on the Boro Planning Commission.
Bielefeld will act as ex-officio member of the Kenai Planning
Commission for the Council, business commitments permitting.
Item F-1: Bids for removal of landing mats on old run -way were opened
this afternoon and are attached to these minutes, but as there is no
money readily available right now, it was decided to take no action.
Bielefeld moved, McCollum seconded, to table bids on the landing
mats Motion carried unanimously.
F-21 McCann moved, Seaman seconded, to approve Res. 61-26 accepting
the Boerum S/D Plat. Motion carried unanimously. _
Cone moved, McCollum seconded, to adopt Res. 67-30 approving
the Gabriel Julliessen Tract S/D. Motion carried unanimously.
F-6: All but one tiem was sold on the surplus sales; the one item
is the Burroughs machine, and can now be sold "over the counter".
Council directed the Administration to accept the high bid on
each item; any offer for the Burroughs machine will be brot back.
F-7: Frank Wince of ACLW reviewed the bids for Phase III, Streets for
CIIAP and mado!his recommendation.
McCann moved Seaman seconded, to award the bid to Arctic Asphalt
Paving for streets in CIIAP as per the Engineer's recommendation sub-
ject` to EDA approval. Motion passed unanimously.
There was much discussion on increased costs for additional
water lines in CIIAP. Total is $18,430 which would bring the entire
project $785979 over the projected costs and allows not a penny for
contingencies.
Bielefeld moved, McCann seconded to approve the contract exten-
sion for water in CIIAP to cost an additional $18,432.00 Passed
unanimously. Wince will talk this over with Blackard.
F-8: Seaman moved, McCollum seconded, to adopt Res. 67-24 Accepting
the Budget for 1967-68. Motion carried unanimously.
F-9: Bielefeld moved, Seaman seconded, to adopt Re* 67-25 setting
the tax levy at 10 mills on real property. Motion carried Unanimously.
McCollum moved, Cone seconded, to adopt Res. 67-28, application for FAAP funds for
ran -way extension. Motion passed unanimously.
G-1: Bielefelu waved, McCann seconded, to adopt Res. 67-29 declaring
the Official City Bulletin Board to be in the City Administration
Building. Motion passed unanimously.
. 99;
Council Minutes 21 June'67 Page six
G-3s Wince presented change order #29 Phase II, CIIap involving
$112,409
Seaman moved, Cone seconded, to approve change order #2. Motion
carried unanimously.
►� Also present at the meeting at the schools Atty. Richard 0. Gantz,
City Atty. James E. Fisher, Assistant to the Mgr. Richard H. Carignan,
CIIAP Engr. Frank Wince and Airport Manager G. L. Jaynes.
Meeting adjourned 12:10 a.m.
Respectfullysubm/�yi/)ttted,
Frances Torkilsen
City Clerk
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CITY OF KCNAI
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CITY OF K_NAI R;SOLUTION N0. 67-a
0oTABLISHII&I THL TJ!X LLVY OF it R..Tz OF T.-M (10) VILS ON EACH
DOLL,,% OF j,SSr �s—a b AD .L P:iOYZRTY '-ITHIN THE CITY OF KEN,.I.
��Hi;c�,►S, the City of Kenai is authorized by atcate law
to secure from the Kenai Peninsula Borougb its Appropriate
share of tax revenue for the City of Kenai, however, prior
to receipt of such revenue, the mil rate required by the City
must be established for formal notice to the Kenai Peninsula
Borough.
KMo VREAEFOH43, the Counpilof the City of Kenai Resolves:
1. That the number of mils of tax upon each dollar of value
of assessed real property within the City of Kenai, Alaska,
for Seneral municipal dur ores, is hereby levied at the rate
or ten mils.
2. That the City Mena-4er is hereby directed to forward a,, -
certified copy of this ordinance to the Kenai Peninsula
Borough as formal notification or the for it rate levy to be
cstablished for the City of Nenai
Passed oll ,day of L1967-
Attest:
TY-ances Torkliseng City UlervL
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