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HomeMy WebLinkAbout1966-01-05 Council Minutesiee- Inr, AGENDA CITY ©I' FUMAI REOULIR 1112TING OF THE CIV COUNCIL 01- `!'IDS CITY OP KENAI 8100 P.M. January 5, 1966. A. ROLL CALL,l�y,� D V13WONS PW.1ENT SCHLDUL:.D To ' .E IMARD: L. Representative C1om,Tillion 2. ICI. MINUTE3 s � Regular Meeting December 15, 1965 —D. COR3ESPONDWTOE: S JAr 14 �. REPQRT3s City Manager .4-A4 ` 21- City Attorney ✓ 3. Mayes City Clerk, Cormissions F. UNFINISHED W13INESS s IT $"L. Second reading of Ordinance e193 - 65, abollshing the Dock and Harbor Commission. ✓2. Enact Resolution 11/166.1 acoopting Planning and Zoning funotior. within the City from the uorcugh. 13. Discuss application of City of assistance in planning and construction of Industrial Air Park, 14. Authorize transfer of Liquor Licenses: Buoy Room,renewal of Timor Licenses: Bilks Club & Inlet Ur •� 5. Receive final draft of proposed contract for purchase of natural gas. 6. Discur-s FAAP applications ✓7. Acoept Snow Removal equipment Storage Building and author- /8ize final payment. . Authorize lease on Airport Small Aircraft Apron to Hudson Aircraft and Engine Service. C. NI�4 BUSINESS s 1. Rxtend terms of aCreemmnt with .U,,t Bunnell for architectural service regardine the Terminal Building ✓2. Request authority to borrow ,25#000,00 for 50 days from Alaska State rank for airport financing. Presentation of recommended Capitol Improvement Plan. 41 H. PERSONS NOT SCHVULT3D TO BE HRARD: 1. 2. I ONA I CITY C0 .1 I. MEETING 5 -JANUARY 1966 Roll call, 8 p.m.: Members present - Billy McCann, Gone Morin, Carl Seaman and Myor .lames G. Dye; Absent - Chester (;one, laud Loi'stedt and Roger Mooks. Also present: City Mgr. James W. Iltarrison; Allan Cortholl, Lngr. on Airport project; Planning Commission members, I(uby Coyle and Catherine Malono; The Ilonorablo Clem 'Pillion addressed Council as to what he could do for the City at the next Legislature session: Mr. 'Pillion, annually trios to contact his consti- tuents before going to .Juneau. Council agrood the biggest job is the airport run -way extension; this project has boon combined with the sou-plano basin, and, according to Cortholl, $147,000 will be needed from the State. The run -way should he extondod to 1,000' to accom- modato the 7271s. FAA has allocated funds for this and for the seaplane basin al- roady. The present run -way can take the 7271s, but the airlines, and FAA, prefer having a longer run -way for a safety factor in "wet and ice" conditions. 'rho seaplane basin, located at a former borrow pit, is 80% complete, but needs cleaning out, it will he 2500' x 2001; will have a turning basin, parking area, etc Application has boon made to got this request for funds in the Administrative Budget; Council asks Tillion to check on its status. Harrison has boon working with the State on plans for a Municipal park in Sec. 60 State Mental Health Lands, The 5 year development program calls for a dam for summer canoeing and winter ice skating; 36 camping spaces; a look -out point; ski slide; National Guard Armory, can also be used as a Youth Center; etc. The State cannot sell this land, but it can be transferred. The City can got a lease based on a reasonable appraised value; or title to the land may he had if the City trades land of equal value. The problem now is lack of a letter giving, right -of -entry. The City could be doing some clearing work, etc. Funds will come from the Pod. Govnt and from force account work by the City. Tillion will try to expedite permission for rirt•of-entry. There was some discussion on the State's requiring landing foes on State owned Air- ports, Failure to do so has put Municipal Airports at a disadvantage. Harrison explained the City's position regarding a Brdigo: Cosby Steen, Dept, of llighways, says he has put this in his S Yoar Plan --if it doesn't get knocked out in Juneau, we have a good chance, Tillion will check on this. Mr. Colo, contractor on Kenai and Kasilof River bridges, will give the old bridges to the City only; will thke them down at cost. He will bring a proposal to Council soon. The City weuld much prefer having the State construct the bridge and access roads as a Federal Aid Primary System project, Steen had three bridge specialists inspect the area, and they estimate it will cost $500,000 Tillion was told the City also apposos the Public Service Commission Bill as it is writton. Tillion does not think this bill has a chance of passinn. The some is true of Bill 101, Amending the AA-A-AsioeatA— Code. M�+N Ie4Ri►t` The Small Boa+, Harbor project has boon included in the ComprehonsivoFok Inlet Re - The port. The Legislature passed a resolution on this last year, i The Mayor inquired if anyone in the audience had a request to make to Tillion; Waldo Coyle suggested a light be placed on The Sisters (rocks) in Cook Inlet, off Bumpy Point. Ile said fishing bouts can maneuver pretty well around them, but the cannery tonders have trouble. Tillion agreed with this, having lost half a k i shackle of gear there last summer, i i Tillion says money was appropriated for fish counting stations, but the Bendix Corp. Council Minutes Page two 5 .Inn fib has not perfected the equipment as yet. An accounting of oscapomont, by use of these devices, would assist the fishermen greatly, as it could allow for longor fishing periods, etc. Mel Colo suggested industries be forbidden to dump their sludge in the Inlet. 'pillion says this is already a law; enforcement is difficult, due to a small hud- get, and lack of personnel. Coyle says the plastic bags, used for "mud", are tocinp thrown in the Inlet, also, and if caught in the propellors, cannotho cut out without beaching the boat. The Mayor suggested the State should remit sumo of the production tax to the Borough, if they levy same against production of gas and oil. $340,000 a year comps from tax on the linos alone. The Mayor inquired how the City can help Rep. Tillion. lie said he had no problems now, but when help is needed, we will be asked to write lettors--not to him, but to other Legislators. Council greatly appreciated 'pillion's visit and his readiness to cooperate. .1ohn Morris explained the Chamber of Commerce's plan for an industrial type brochure to be distributed to parties interested in setting up a business. 'rho City Manager and Council will assist in compiling this brochure. Morris also announced two coming events: 1. the Military appreciation dinner, Saturday 8 Jan., welcoming the incoming Air Force, and saying farewell to the Army personnel. 2. The Chamber's Annual Awards Banquet the following sat., 15 Jan. Mr. David Boyer requested Council to change the order of business to consider itom F-4, transfer of Liquor licenses, etc. Several in tho audience were present for this hearing, and needed to get back to their businesses. With consent of Council, this was done: The City Mgr, reported all requirements have boon met by the Buoy Boom and Bill'a Club; the Inlet Bar still has a utility bill to pay, and sales taxes for first two quarters of 1965 had not been received, lie recommended approval of the first two applications, and that the Clerk be authorised to notify the ABC Board on receipt of the Inlet Bar's delinquent utility payment, and a letter of intent from their auditor regarding the sales tax, since records had been lost in the fire. Seaman moved, Morin seconded, to approve the renewal of liquor license for Kenai Bill's Club for 1966, Motion passed unanimously. Seaman moved, Morin seconded to approve the transfer of liquor license from David and Louiso Boyer, d/b/a the Buoy Room to David Newton Boyer, and Mildred T. and Floyd D. Griffith, d/b/a the Buoy Roomy Motion passed unanimously. Morin moved, McCann seconded, to approvo renewal of liquor license to Virginia Wilson and Jeanne K. Peavley, d/b/a the Inlet Bar, subject to payment of delinquent light bill and a letter from the auditor saying the books were being readied for computing the sales tax due the City. Motion passed unanimously. Minutes of the last meeting a yei�. A short recess was hold. �„� d NJ���,�,•M;~,�"' The City Manager reported: • 1. A letter from Dr. Barr had been received requesting a reduction in the amt. of his power charges. After some discussion, Council agreed the bill should be paid in full; the bonding ordinance r c ddggs any discounts. 2. Hiectric sales this past occeeded one million kwh's for the,first time;j the net li e lips was 9.3%, This sale of energy represents 104.6% increase over last yoar,�l.�.ia.. 3. A memo from Atty. Fisher shows he ismaking two nominations for Chamber of Commerce Awards in the field of Government: 1. The City Council for hours of long,; hard work. [Harrison did not mention the second one, but it is for James W. Harrisoe who as City Mgr., Kenai's first, has borne the brunt of the change in City Governments from Mayor -Council to City Mgr. -Council, in a capable, effective and dedicated mannor.1 City Council Moc ~iI: Pape throe S Jan 66 4. A statement had boon received from Itopuszkn for feasibility of Airport Terminal Bonding - report to IIIIFA. Harrison says thishas already boon authorized by Council, bu he would like to wait until funds on the terminal are received as the airport account is nil; Council says pay the bill now. S. A letter from It. W. Beck t; Assoc. was received acknowledging receipt of the KCL financial report they requested in tit. • last study. It cost the City some time, money and effort, but this phase of the bond ordinance is now being mot; said re- port also moots with their approval. 6. The City of Juneau now has its Burroughs billing machines available for purchase. Cost of the machine is $1900; they also have some forms they will sell at 45% of cost, i.o. $225, They will crato the items for delivery. Seaman moved, Morin seconded, to authorize the City Mgr. to purchase the Bur- oughs machines from the City of Juneau. Motion passed unanimously. 7. City Atty. Fisher, in a memo, reported Gantz has informed him W&S creditors of Caughran, Inc. have been paid except for insurance, and that [lorry Riding will be paid. The amount yet duo from bond funds is estimated at $35,000 according to Gantz. B. No word has boon had from H.B.A. ro purchase of their facilities, since a letter was received reducing the asking price of $160,000 by the amount of the transformer costs of $16,641, A letter was sent to the Pres, of H.B.A.; if no answer is had soon, Harrison will call him and try to sot up a meeting with his Board and Council. The Mayor appointed Seaman to talk with Joss Nicholas, Board Member, to expedite this meeting. II.B.A, has a membership meeting next Tuesday. Speakers frmm the floor, suggesting the City force the issue were: Stan Thompsen and Ruby Coyle, 9, The City's answer in the PNA-Cordova CAB case has been filed. The City Atty, was to review this tonight, but a car accident has curtailed his intention. A hear- ing on the case is scheduled for 10IFeb. atthe Hill Bldg. in Anchorage. Harrison will request a statement of foes from the Washington Attorney, The Mayor reported: He needs to know how Council thinks on three Borough actions: 1. Industrial Incentive policy; 2. Planning 6 Zoning; 3. Relationship between the School Board and the Assembly for handling school affairs. 3, School planning - Master Plan - Sites for now construction, architects, o tc. Council agreed this should be left to the School Board to work up all details and present them to the Assembly for ultimate approval; the decision of the Assembly should govern. The School Board would have the ultimate say as to who works in these buildings. Councilman Morin suggested the School Board should also consult with the teachers when planning schools --they are the ones who work with the facilities provided, and often know better than an architect, or school board what is necessary --and what is superfluous. 2. A copy of the Planning and Zoning Ord. of the Bore will be sent to the Council before the next Bore meeting (11 Jan) Harrison will also attend this meet- ing. 1. Council agreed the Industrial Incentive Act should apply only to now ind- ustry coming into the area that is not in competition with existing business. The Planning Commission requested the appointment of throe new members. They meet the lot and 3rd Wed. of each month at 7 p.m. F-1: Harrison presented Ord. #93 for second reading; McCann moved, Morin seconded, to approve Ord. 993 Abolishing the Dock 6 Harbor Commission. Roll call vote passed the motion unanimously. F-2: Harrison-presontod Red. 66-1 and recommended it be adopted. Morin moved, McCann seconded, to approve Ross #66-1, Accepting the Boro contractual offer to administer Planning and Zoning within the City until the Bore assumes this power. Motion passed unanimously. ° Council meeting, nat, Alaska 5 Jan Page four F-3: The Mayor and City Mgr. had met with Tomllixell of I:.D.A, regarding development of an Industrial Air park on Airport lands. This would be 80% funded by the Pod. Govni and 20% by force account work by the City. lied. funds are available; spaco must he occupied by a now business or expansion ofan existing businoss--not just a trans- fer of location. The area to be developed was studied on a man and is close to the Small aircraft Apron; it invol vos an area of considerable extent; will have extra wide roads; cannot have high structures; cannot be smoke or noiso producing bus- inesses; cannot produce radio interference; adoed of release is needed from P.A.A.; this is in accord with Alaska State (lousing Authority's Plan for the City; utilities would be available and reasonable; a railroad spur is feasible from the Port; the City will pay for the Planning --money to come from the lease return on the lots. The above report was made by Allan Corthell. Seaman moved, Morin seconded, to authorize the City Mgr, to submit plan as pre- sented by Cortholl to the H.U.A. for the Industrial Park and to make application for grant monies. Motion passed unanimously. Under the Capitol Improvement Program, this is shown to cost $244,000 or, with paved roads, it would be $325,000. This latter cost included water and sewer, storm drainage, electric service, gas service when available, engineering and administra- tion. F-6: PAAP Applications:submitted are: the combined projects of run -way extension and soo-piano basin. By combining them, the cost of the seaplane project was reduced by 1/3. The application for the extension is in the National Airport Plan. The application for completing the Small Aircraft Apron will be submitted to FAA in two weeks. F*S: Consideration of the final draft of the Union Oil contract was postponed until the City Atty. can be present. F-7: Harrison reported the FAA had inspected and approved the Snow Removal Equipment Building. With the exception of a few minor details (electric wiring, et,..), the City could now accept the building. Morin moved, Seaman seconded, to accoptthe S.R.E. Bldg* and to authorize final payment of $4,S14.80 to Kenai Stool Buildings, Inc. Motion passed unanimously. F-8: Amundson has released L. It 01. 1, Small Aircraft Apron, A. L. Hudson wants to sign a lease for the wame lot with option on L. 2, B1, 1.,' First payment would be made by 1 April, or when the lot is used prior to 1 April. This is the some as for Lofstodt. Seaman moved, McCann seconded to approve the lease of L. 1, B1. 1, S.A.A. to A. L. Hudson with option to lease L. 20 B1, 1 S.A.A. Motion passed unanimously. G-1: Art Bunnell had requested an expansion of his contract Wo cover supervision of the work; the fee would be.1/3 the Basic Rate in the Standard Fee Schedule. Seaman moved, McCann seconded, to accept Bunnell's proposal for expanding his contract to include supervision of the work. Motion carried Unanimously. G2: In order to pay Kenai Stool Buildings its-roquest for second payment it was going to be necessary to cash in our $45,000 Time C.U. to land the Airport $25,000. Rather than lose 3 months interest, the Bank suggested a loan at 6% interest for 50 days. This would save the City $182. Authorisation was needed to borrow this amt. Morin moved, Seaman seconded, the City Mgr, be authorized to co-sign with the City Clork a loan agreement with the Alaska State Bank, Kenai Branch, in the amount of $2S,000 at 6% simple interest for 50 days; said loan to apply to the Municipal Airport Fund. Motion passed unanimously. Mayor Dye expressed the fooling of Council when he noted the cooperative attitudes of the two banks in Kenai - Alaska State Bank and National Bank of Alaska, adding we wore fortunate to be able do work with suehaeenmadatina n©rcnnnel_ Kenai Council Mintos page five 5 Jan 66 The Five Year Capital Improvements Flan and Budget Revision will be taken up at next Wednesday's special Mooting. Back to the Terminal Bldg. - HHFA suggests WGS be put in Term. Bldg. Bids as a deductive alternate; Harrison recommends the City instruct Bunnell to do this, and to notify all bidders. Council agreed to above and also suggested hid opening he delayed two weeks, or until 26 Jan.; also that a time limit be !ncorporated--in fact, two time limits -- also the date for beginning construction should be stated; two dates for completion of the construction gives the contractor a chance to cope with weather and freight problems. Harrison also recommended the City enter into an agreement with a Real Hstate Agent to promote and handle land sales and leases. The City is not in the R.E. business, but we do have land, and there are petitioners for using this land. Leo Oberts will present a proposal to Council to handle this. He stated he would like to work with the City and other real estate agents on disposal and use of these lands. Galliett addressed Council with his idea for encouraging Collier Chemical Corp. to locate within the City. He says the Homer chip mill will not get underway for at least a year; the gas liquefaction plant does not look good; Collier Chem. has said costs of shipping their product - anhydrous ammonia - would exceed cost of production ip the States. Galliet: proposes a letter be directed to them urging location of the plant in the N.W. corner of the City. They couldlease the land, pay something in lieu of taxes, receive benefits of City utilities, fire protection, etc.. Galliett gave three copies of his report to Council and asked the maps in the back be handled with care. He said a plant of this sort would changethe whole character of Kenai; it would make us a seaport. Council says Harrison should wirto the letter. Meeting adjourned, 1 a.m. Respectfully submitted Frances Torkilson City Clerk M w-tf-u-._-- . � ---�,��_----.----�•_-�-_,.�..s�_ _..+..,,per.. x P4-wa ei A4401,VAde `� � �`°�'"'�` ,thy+• lam` �!z7)OrW4� AopoL " i ' J� � M� .•, `tip! s' r '. J�-���•- �• �,�. v�' .� w+ � A S '^ i t, I If 0 i - - �iiaiririwir■ - - Ole • Ole. r• T✓ � CITY OF KWAI CAPITOL IMPROVMgMT PROGRAM 1966 to 1971 J Presented to the Kenai City Council on January 5, 19660 by% James W. Harrison, City Manager. i.! ' l i i E 1. �I ! i CrlY OF Iti- M, CAPTIb_ L r4mMmWi PROGRAM PLANNING WE �j PROJECT DESCRIPfIC! PRaP'Cf 1 AA f Tom. SOLIRMTEWSM ND •awi• - 1 1966-67 - _STRF�TS-FavinA ___-- 00 000 $150.000 :��7A&FA . 450 000 G.O. Roods X � 1_ Arzually20,000 --- Zli,000 2/2 Assess. 1 f,So oDo 3�5; o0o SOIL R A t�'0� Reveme W &mod interceptor - or Cant. of � '1 Y j E Drive SIC oHealth Air Force 1Temaiml-bdlding Line ; O $ MA a'3 Tm Airport Rev. � X! 19b4 1965 • 5� I� r 3S0 000 175 000 [WA 75000 Revenue Bond i -6 School Line rt Rev. X .1964 1966 iemioal :Building Linedffi $ "` eOHHFA 1e0 A - :! GAS �p A SO 00 1 1 7-0 PAFK Kenai laic' t 32,467 = 16,233 i�FA �3 i6,233 Ca®. Contrib�- 1 XI 1966 1966r70 '� utian - Force' • $ 15000 �X 1966-67 $ 30,000 $ 15,000 MYouth Center Acct. Cent. Rind - �69-70 , A 5,000 G.O.iGOBand X I FLEW IC Sim m Reis= 1 Iodustrial Air, Park 20 m - .------- - -- 20,000 Ix ! ------- ------ - 2 Sion INOjJSTitIAL AIR PARK 305,000 $ZA4,000 80t Grant. � $ 61,�100 201: Rev. Bond X 1966 E.D.A.SSO 000 Air. Rev. Band X 1965 1966 gj�f -Terminal Eui1 ' 22 450 000 ' . Rm ay Ham ion, Float N to -�X tY 1 s B�' Light. 430 S00 269 063 FAA 1S --- Force ACcoimt X—f"f 1966-67 966 Clem70 00p - F-- - -------•---- Seall Aircraft Apron $ 70 000 ---- - --- •-----•- --- -- X 1 1966 •so e..�.1-. l�fi /� -9 CITY OF KEWAI CAPITOL IMPROV MUST PROGRAM STREETS PAVING - 0300000.00 This would be for basically the entire downtown area. This is the paving program that was projected by your City of Kenai in its rough application for Community Facilities planning grant in August of 1965; The purpose of this project Is to pave, drain, and place curb and gutters together with some limited sidewalks in the down- town area of the City of Itenai, It is anticipated that it will be necessary for the City to vote a 10150,000.00 G.O. Dond for this purpose. It is anticipated that the G.O. Bonds will not be presented to the City until after the planning has been done. Due to the fact IMPA has not reviewed and returned the preliminary drafts of the application for the Community Facilities loan advance for planning, it is not anticipate, that this paving can be done durintr the current year. It is therefore scheduled that at least a portion of the paving be done in 1967, with the balance completed in 1968, GRAVEL CONSTRUCTION - ')209000. 00 This is what is anticipated each year as the annual segment for gravel construction in the City. This will done basically on assess- ment programs. Probably it will eventually work out to where a por- tion, say for instance one half, will assessment programs and the other half will be from the general government budget. This then will neces- sitate the creation of the individual assessment districts inside the City. It is anticipated that those will be created at the rate of approximately two a year for the next five years before the travel surface in the City is upgraded. The work to be done in this area will be to strip down to sand, build bmbk up to within 18 inches of the exsisting land area and placing six inches of compacted gravel on top. This than will have adeauete base and preparation in case the City should ever go to any type of economical blacktopping. This will be done by C it-y crews using City equipment. CITE'.' OF ItENAI CAPITOL IMPRUVEi►&iT PROGRAM 41AT.aR HIGH SCHOOL LINE - 535O0OO.00 Probably the best mothod that this could be constructed would be to take the first well that was drilled at the High School and the present well drilled at the High 31chool, connect them to a now treat- ment facility and operate these two wells as a source of supply for that area. It would not then be necessary to run a line continually from this system to the High School in order to serve the High -School. This line could serve the High School as well as the adjacent res- idential areas and could eventually tie into the present system. I can at this time however see no point in running, a line through areas not developed simply to make a tie in between the two systems, It is anticipated that the planning for this be done this year with a possi- bility that it would be 1967 before this facility could be constructed the funding would be 0175,000,00 HHFA Public Health grant and 0175,000.0, City of Kenai Municipal Water Nevenue Bond. TERMINAL BUILDING, LINE - ,025, 000, 00 The some reasoning that applied to the Terminal Building sewer line applys to the Terminal Building water line, If we are going to spend the aruount of money anticipated for teraporary facilities it would be feasible in my opinion, to use a Federal Grant for this purpose plus a matching portion of the Airport Revenue Bond to construct this facil- ity . You might keep in mind that the purpose of this line while it might appear now to be just to'serve the Airport Terminal is basically not for that purpose but for aid in the development of all the land in that area including the Small Aircraft Apron and the industrial air - park. This line could also be run to service Aleyeaka Subdivision And Its collector line. r. I CITY OF X01AT CAPITOL IPtP-20V1;'1iENT PROGRAM 3131"] R WI LM OOD INTTRUOPTOR DRIVE - , f 1, 655, 482. 00 This Is a long range project which would run and intorcept a sewer line along, the bluff on the sea side from the present Hayos treatment plant to intercept the raw sewerage being dumped in the inlot by the Wildwood Air Force Base, This will also collect the sewerage from tho total development between V ildwood stir Force 'lase and the City of Kenai. In the preliminary planning it is anticipated that the first major line will be run from Birch Drive down into this collector line and on into the treatment plant. It is also anticipated that the addition known as Redoubt Addition owned by Mike Gravel and others will be intercepted in the some manner as Birch Drive. If there is construction on any por- tion of this it would be to go up the river toward the mouth toward Wildwood Air Force Base to intercept any new additions that come in during this coming season. This would be done no discussed with both HHFA and the United States Public health Service with 501a grant from HHFA and 20% additional grant from the Public health Service. There is a possibility that the grant from the Public Health Service can be implemented by a grant from wildwood Air Force Base so that this total project could be funded without the City having a revenue bond involved, It would not seem proper that this should be suitable for revenue bonds since the major purpose for *hich this line is constructed is United States Government purpose. It might be a possibility that some agree- ment be worked on a reduced rate for treatment fee with the United States Air Force Base in order to have their participation in the con- struction of this facility. This will be explored at the time the plans are prepared. TERMINAL BUILDING LINE - $25,000.00 It is anticipated that this will be build this Spring as part of the construction of the Airport Terridnai Building, At this time it appears that the total cost of the water and sewer using a septic tank end a well would be $25,000.00. It is anticipated that the total cost of the construction of the water and sewer line tying to the exeiating lines by the Royal Redoubt Motel would run approximately ,1�500,000@00 it does not appear to be economically feasible therefore for the 09.ty to spend 1h25#00040 for temporary facilities when %50,000,00 could be spent otherwise. Since the engineering is done on this line, the pre- liminary planning that is, it would be anticipated that an oprlication would be filed as soon as the bids are open for HHFA grant of 1,12p5OO.00 for this function with the other 42,510,00 from the Airport revenue bond. This work would then be done this Spring. C T T% 0111 KENAI CAPITOT, IM11110V� r ENT PROGRAK INDUSTRIAL Alit PARK COOK INLET INDUSTRIAL AIR P %RK - ;111305000.00 It is anticipated that 9 development grant from the rconomio Dev. elopment Administration in the sum of tiXf4,100.00 together with ,n00.00 in City of Kenai force account work will be used to develop this land. It is anticipated that this land will be developed with streota, drainage, water, sewer and gas being installed. There is no provision for electricity to be installed usinlc this plan so the elec- tricity is carried as a separate item. The application for the funding of this will be filed immediately with the Economic Development Admin- istration and the funding; for the City will be set aside for this carrent year. The basic portion of the City�a work will be the use of the equipment. The engineering firm of Adams, Corthell, Ise, Wince, and Associates has been retained for the purpose of developing this plan and the plan is tentively being approved by FAA who must give a deed of release before this can be done. There is a possibility that the w0bor and sewer line being run to service this land could also be part or the project to service the Air- port Ifern.inal Building thereby saving the cost to the Terminal Building of revenue bonding for this purpose. This could be done with a 80% t-rant from E.D.A. then it should be timed so that this is accomplished prior to letting of a contract for the water and sewer service to the Airport Terminal Building. In my opinion this would reduce the cost to th Airport Terminal Building revenue bond purpose by at least 75%? t It my further recommendation that this land be developed by the $ICity but that it use and marketing be done through contract with a proper real estate agency. For the City to develop the land is proper but for the City to go into the business of being real estate agents la not normally a function of city governments. This then would allow the City to use its resources for the placing of utilities in the area and for the actual maintenance of the functions commonly reserved to , over but would allow private industry to do what private industry lly does its the follow up and in carrying out the pr%ram of finding for the land so developed. , U� CITY OF ICIaM a CAPITOL IMP-RUMENT PROGRAM GAS TOTAL SYSTEM - ;'7009000,00 'while this is the engineers estimate, in my opinion is it more money than the City can economically afford to install a --as line. While I am using this figure for the purpose of preparing; this report I do not think the City should go into this heavy a system, I do not feel that the citizens of Kenai can afford this much money at this tlmee The funding of this would be basically from one half Grant from M-IFA and the balance from Revenue .•onds,, I will not recommend to the City Council that assessment programs be used for the purpose of in- stalling•a natural gas system, The City of Kenai has placed on the downtown area and the highly congested downtown residential area an assessment for water and sewer, This is a proper assessment because these are facilities the citizen must have, In addition to this it is anticipated that when the paving goes in there will be some assessments for paving so that the bond might be retired not just simply from the taxes paid but from the assessments also financed over a ten year period, Vith this in mind certainly to add to this another assessment would be confiscatory bn the property involved, It is my feelinC that .tha total munio�.pal cost of the gas system should be borne out by a rate structure that would retire the system and pay for the systems operation, Since no study has been made on this it is my reooraendation that a consultant be hired immediately to make a study on this and to turn over to the City which method would be the best for the operation of the City and it beet be financed. Due to the fact that we are so late in signing the contract it is my opinion that construction of this system can not be done in the major portion until 1968, It is my opinion and recommendation however that the new construction of a large nature be designed for natural gas and that natural gas be made avail- able to it. This might mean that during this year some natural o:ss lines would be run to our major user installations such as the grade school, Royal Redoubt Motel, Airport Germinal Building, the downtown business complex, and the proposed new shopping center, I believe this could be done from one tap rather economically probably on short term loan from the bank on commerical basibe Again I would urge caution on rushing into a sea system until we have advise from some one whose business it is to design an operate minial.pal gas systems, CITY OF KENAI CAPITOL IMPROVE14121T PROGRAM PARK XENAI MUNICIPAL PARK - 032,467.00 The general layout for the Kenai hunicipal Park on the gullies in Section 6 calls for a total outlay of '32,467.00. It is anticipated that community contributions in force account and other wise will cover 16,233.00 of this. It is also anticipated that the balance of 14'a16,233• will be on a grant from the Federal Government for outdoor recreation. 1 must point out that none of this fund can be used for the construction of buildings as such. They can be used however for the total layout as deei'med by Mr. Almond of the Alaska State Land Division. Since this Is a needed facility for the Centennial period it will be my recommen- dation that the work start immediately on this and that it be a five ,year development program before completion. This is in keeping with the terms under which the grant will be made and is also probably as fast as local contribution and force account could be available for the development of this park. In the development I would suggest it be done in stages with probably the Little League and Pony League fields be constructed first, the picnic areas being constructed second, the camping areas for our traveling visitors being constructed third, and that the dam together with the skating facilities, skiing facilities, tobogging facilities be constructed ens the last stage. It will be pointed out clearly that the $32,4 MO dose not cover the cost of the fourth stage which Is the construction of the dam. YOUTH CENTER - 030,9000.00 This is a very rough estimate on the'oost of a youth center for Kenai. There is available from HHFA �a gr nt for 50% of the cost of a youth center as long as the balance is met by the community or the City or a non-profit local group who would sponsor and operate a youth center. It will be my recommendation that the youth center not be built as part of the City activity but instead a youth genter corporation be formed who will handle the application and the construction of this building. There is now in the City a cash fund of r�R,000.00 which can be used for a youth center. It is my opinio4 also that this can be built basically using local labor with the'cash'on the matching fund going for materials to accomplish this purpose.: I would anticipate that this building might also be built in conjunction with the Centennial so that the Centennial funds might'be used tq suppliment this there- by giving permanent use of the boil *h6 build by the Centennial Com- mittee. I would anticipate and roe end that this building be built In the Municipal Park area, in the"Ores o7A Kenai Spur adjacent to the area reserved for the Alaska Natio�}g Ouard Armory. I would be happy to offer my services as a member of h-Vouth center committee and to offer my services as co-ordinstor with the Federal Government to secure the loan and work out some of the paper work on it. -/ _ _ _ _ ___ i CITY OF KENAI CAPITOL I1.IPROVEMENT PrIOGRAM CITY HALL - LIBRARY CITY HALL-LIUARY - '�350,000.00 This is an estimated figure for'the construction of a new City Hall and Library building on the present site of the City Hall and Fire Station. It is anticipated that this will be built in 1969-70 using a Federal grant of 10175,000,00 and 01759000.00 G.0. Bond. Since the Cit is growing so rapidly it is not advisable to proceed with a City Hal building before 1969 because the needs of the community will not be stabilized. The present remodled facility can be used for some time comfortably and conviently for the operation of the City business. Before we go to a permanent structure we should fully know what is going to happen to the City and what facilities in the way of government services the citizens are going to want from the government. The build- ing should then be designed to provide as efficiently as possible for those services, It is also felt that this bond fund should not be voted at this time because there oen be better use made of the general obligation bonding capacity of the City of Kenai. With the normal growth of 01,000,000.00 in assessed valuation a year by 1969-70 this building could be then paid for from taxes from growth, rather than the people now having it added at an additional tax burden to the property Inside the City of Kenai. CITY OF KENAI CAPITOL Ii4PROV'?A:Ea4T PROGRAM ELECTRIC HOMER ELECTRIC ASSOCIATION FACILITIWV; - ',,150,000100 It is anticipated that a revenue bond on electric revenue will be voted this spring for the purpose of acquiring and connecting to our system the entire facilities of the Homer Electric system located with- in the city limits of the City of Kenai, it is anticipated that this will be done in the very near future with the physical tie in to be early in the Spring. The contracting for this exohanre should be accomplished within the next 30 days, with the call for the bonds vote to be followed shortly there after. INDUSTRIAL AIR PARK - 0 The electric facility to go in the Industrial Air Park is not part of a matching fund availability. It must therefdre be done by the City of Kenai with the anticipation of the return of revenues sufficient to amortize the coat of this expansion. While we are not talking about a great deal of money it is possible that this will be the major portion of our annual expansion for 1966. ANNUAL EXPAASION - 44-20,000.00 'It is anticipated that the electric department revenue budeot will ' allow for the expending of 209000.00 annually based on the present growth factor of the electric utility for capitol improvement expan- sion. It is anticipated that this fund will be used to run new ear - vices into new additions. The planning appears to be now that there will be many new housing starts in Kenai each year for the next few years. The planning starts also will bring in additional revenue to the City so that the proportional increase in revenue could be used to proportionally increase this 520,000,00 annually. It is anticipated that approximately 10% of the gross revenue to the City in the electric department will be used for expansion of the system. CITY OF KENAI CAPITOL If.PIIOV',,-V- 1T PROGRAM AIRPORT TERMINAL BUILDING - 0450000.00 The construction of the Terminal building is expectod to start early in 1966, At the time of preparation of this report the adver- tisement is out for bids for the construction of this building. It is anticipated that the total building with water and sewer will be con- structed by July of 1966. This is to paid for totally by Airport revenue bonds already voted and approved by the public. RUNWAY EXTENSION - FLOAT PLANE BASIN - AIRPORT LIGHTING - 0430,500.00 A Federal Grant of 02690063*00 from the Federal Airwa a Adminis- tration together with a contribution by the State of y,3) , 3?.00 with .1115,000.00 City force account make a total project of tiA30,500.00 this project will be requested for funding during 1966, It is doubtful how- ever that construction can begin on it durinC the 1966 season so that planning should be done toward the construction of this facility in 1967. The engineering firm of Adams, Corthell, Lee, Wince, & Ass- ociates have been retained by the City as our engineers for the purpose of preparing and accomplishing this project. The administration of the project and the paper work will be done by the City of Kenai staff. Preliminary discussion has been had with FAA on the 'i2690063.00, The request for State assistance has been forwarded to the Governor, the Director of Public Works, and the Department of Aviation. This project would provide for 1,000 additional feet on the exsisting 5,000 foot runway, for the extension of the lighting to cover this new facility, for other lighting required by the air carriers and for the completion of the float plane basin in the area used as the borrow pit for the construction of the Airport facility. Since the float plane basin is already funded by the Federal Government a request was made that it be consolidated in construction at least with the other facilities so that a savings could be made. This has tentively received approval of FAA officials. CLEAN UP -SMALL AIRCRAFT APRON - i'140,000.00 It is anticipated that these two projects will be accomplished by using FAA funds and City of Kenai force accounts. The work has begun on both these activities and it is anticipated it will be funded immediately so that this work can start as soon as break up occurs in the Spring of 2966, The equipment is being repaired so that it will be ready for operation in the Spring. It would be anticipated that the present employees be used for this purpose and their time charged to this project. This was anticipated when the second full time man was retained in the Airport Department.