HomeMy WebLinkAbout1965-07-07 Council MinutesAGENDA - KENAI CITY COUNCIL MEETING 7 JULY 1965
�A. ROLL CALL
B. PERSONS SCHEDULED TO BE HEARD:
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C MINUTES
in. CORRESPONDENCE
E. REPORTS: 4 . - City, Manager
/2. City Attorney
✓3. Mayor, Clerk, Commissions
P. UNFINISHED BUSINESS
rl. Ordinance 089, Authorizing the City Mgr. purchases up to
$2SOO without Council action
2. Ordinance 09O, Creating Standards for Street Construction
000003, C•alliett's Proposal
04"4. Report on Union Oil Negotiations
G. NOW BUSINESS:
vl. ROOGIVe proposed plan for Airport Shop Building.
/2. Receive proposal of Anchorage Natural Gas Co. to serve Kenai
residents with natural gas service.
H. PERSONS NOT SCHEDULED TO BE HEARD:
KHNA l CITY COUNT M 1 NUITS
7 .IIJI,Y 1965
Roll call: Members present - Chester Cone, laud Lofstodt, Hilly McGann, Roger
Meeks, Gone Morin; Absent - Carl Seaman, Mayor Dye
Ed Hollior asked Council to bear in mind the naod for ample land for ball fields
for the Little League, pony League, otc,, when planning for release of City lands
through lease or purchase. The City hopes to establish a Municipal Park in Sec.
6 for all kinds of recreational purposes, and assured Hollier there will be pro-
vision made for the youth activities.
Mrs. Ruby Coyle questioned the Borough taxing for a full year when all had been
led to boliovo Bore taxes would be for a half -year only. The Attorney will look
into this.
Mrs, Coyle also questioned the City's taxing personal property. She thought
personal property would be exempt from the 10 mill City tax. The Atty. explained
it is not possible to exempt personal property tax within the City unless it is
exempt from the Boro levy also. The City cannot afford to exempt Kenai citizens
from the Boro tax as the revenue would have to he obtained from somewhere, and it
is not possible without raising the real property levy to a burdensome amount.
Speakers from the floor on this wore: Mrs. Coyle, Mrs. Malone and Mrs. Stetzer.
The City Manager suggested taking this question to the Alaska Municipal
League as a suggested change in the Municipal Code as the 10 mill levy on inventories
of merchants within the City places them at a disadvantage versus merchants outside
Cities.
Minutes of the last meeting were approved.
City Manager J, 116 Harrison reported:
Los and Marge Eaton are relinquishing their taxicab permit, effective 30 June,
Since the City has advised Duke Doering to place his application for taxi license
on file, Harrison thought Council may want to grant a permit to him, McCann moved,
Meeks seconded, to accept the dissolution of Eaton's Rainbow Cab business, Motion
carried unanimously. McCann moved, Lofstedt seconded, to issue a permit to Doering
when all requirements are mot, Passed unanimously, McCann expressed the opinion
Batons had done a good job in conducting their business.
Ron Miller has bought out Bud Cupp's garbage service, The PSC is holding a
hearing on Miller's application, The C.M. thinks the PSC should not be regulating
rates within the City; he has requested a rate schedule from Miller as well as his
plan of operation, Harrison also says the City shoul4 strengthen its garbage Ord-
inance to require all to subscribe to the services,
HHFA has said they would require 45, days to process the City's application
for Terminal Bonding; if Council agrees, Harrison will go to Seattle next Tuesday
to tAlk bonding; he will also see Thorgrimson and Meyer re bonds for a gas distri-
bution system; on his way back he will stop off in Juneau re funds for the Airport
Mtce, Bldg., otc, Council says okay.
McCann says Stump will trade land or work with the City in every way possible
to allow the City an easement for aircraft approach zone.
Yukon Equipment has offered a Back -hoe to the City on a lease -purchase basis;
vAllse of the machine is $90072; acquiring equipment on this plan would not require
a veto of the people.
A summary of the bids for gas and diesel contract was presented, copy of
which appears in these minutes, McCann moved, Cone seconded, Standard Oil of Calif,
Western Operations, Inc, be recognized as the favorable bidder for gas, diesel and
stove oil, Motion carried uananimously by roll call veto, (Lofstedt did not vote
as he was called away from the meeting.)
Harrison thanked Harold Galliett for being so helpful during the City's pro-
blem with the Well [louses, and the W$S system in general. Galliotv, spent a wook-end
in Kenai working with the Engineer, The Fire Underwriters will be here for inspec-
tion between the 14th and 21st, and the system should be working by then. Don Don-
atullo will be here working on the water softeners. A letter is being sent to to
agencies notifiying them of the inadequacies of the equipment in the Wells
r Council Minutes.
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7 July 1965 Page two
The foes paid to Donatollo will be charged against the guaranty of the Contract.
Harrison onto again thahod Galliett for his assistance.
The Attorney reported: Had gone to Court last weak to foreclose on 620 63 and 64
taxes. He had met with Bond Counsel for the W$S Bonding Companies and they had
requested the City turn over the money held in exerow by the Court order. They
offered to hold the City harmless from any claim for withholding taxes, etc. The
City will continue to keep this money until ordered by the Court to disburse it.
Fisher will attend the hearing on CUL vs. KPC this Friday (or Thursday). He will
check on the Bonding Cols, activities this past weak. McCann suggested the City
settle as to who owns the cross ties and materials stored in Kenai - Lyons will
check on this tomorrow. HBA vs. the City has a hearing the 23 of the month.
Harrison announced the City is putting in a line south of Sec. 34 to Beaver
Loop Road to serve Better Concrete Products.
Re creditors of Caughran Excavating, Inc., Harrison says the integrity of
the City is at stake; he recommends sending letters to all creditors explaining
the financial situation re the City and payments toward the Contract. The creditors
are blaming the City for non-payment of bills owed by Caughran Excavating, and of
course, this is not the case at all. These letters to the creditors will explain
they should file with the bonding companies --the Atty, has referred them to North-
ern Insurance Adjustors to see if the claim is valid--thon they can file a law suit.
Galliett says some of the creditors have expressed a reluctance to file suits as
about 20% of the money due them is lost through attorney's fees. The City Mgr,
will call this to the attention of HHFA, and suggest they might recommend the
bonding companies be denied recognition on any further Federal projects unless they
pay off without any more quibbling. The creditors have a year from acceptance of
the contract to file suits.
The Attorney recommends repealing the sales and property tax ordinances.
Then, when the Code is revised, these portions can be eliminated. The City Mgr.
and Attys will work on this.
Ordinance N89 was presented for second reading. McCann moved, Meeks seconded, to
approve Ord. 189 authorizing the City Manager to make purchases up to $2SO0 without
prior approval of Council. Motion passed unanimously by roll call vote.
Ordinance 090 was presented for second reading. Cone moved, McCann seconded, to
approve Ord. #90 on second reading establishing standards for street construction.
Motion carried unanimously by roll call vote.
Harrison suggested the next item on the Agenda be postponed until the City can got
a bettor idea of methods of financing for the gas distribution line; it's best not
to commit ourselves to a eonstract with Galliett at this time. Also, Mr, Dale
Teel, President of Anchorage Natural Gas Co. was present to submit a proposal for
supplying gas to Kenai. Galliett said it might be useful to the City to hear him,
and also stressed his statement of last week that the contracts should be looked
into closely.
la Harrison reported he was received with great dignity and courtesy when he talked
with Cliff Dunham and presented the City's proposal for purchase of gas for a
distribution system. Harrison impressed on Dunham the City must have Wildwood
station included in the service area --it is realized a service area must be served;
it cannot just be claimed for future expansion; it entails a responsibility to
bring service to those living within it. The City cannot get the rate requested,
but the favored nations clause can be included; the sectionalizing valves will
have to be approved by the engineering dept. of Union Oil, but Dunham assured
the City Mgr, they would not lot whole line go dry --there would be some measure
t of protection from this; three taps would be all right, but future taps would
have to be based on need; there's no question of the $25,000 for the r.o.w. The
City may have to pay the section -valve casts. They are having a meeting next week
Council Minutes Page three 7 July 1965
in California and will go over ourproposed contract. As soon as their contract
is rocoivod, Council will got copies in time to study it before action is required.
Cathodic protection was not discussed, but this will came during construction.
They are willing and glad to work with the City.
Mrs. Coyle inquired as to the service area --it is Cohoo to Swanson River.
She asked if a person would be required to buy from the system if gas wore available
on an individual's own land ---there's nothing to prevent anyone using their own gas.
Galliett asked what was said about quantity? The contract says "on demand" ---
this is an important point and must be insisted on.
Re the military--Congross says the over-all quality of, gas be determined --
this is a political and economic problem in Anchorage, but should not apply to Kenai
In this area, it is a matter of oil versus gas; Wildwood should be divorced from
the dispute in Anchorago. However, Ft. Rich would ahave to approve any contract
involving W/W, though the installation would be reimbursed by W/W.
McCann said Killen had inquired what the City was going to do about the Ordinance
giving tax relief to Subdividers for improvements? Also, Killen wants to serve
beer at his grand opening --will have to got a permit from the City --he says he
can't be bothered with this formality.
McCann also reminded Council this is the time of year when youngsters play
on, or close to, the Bluff. It is feared someone may be hurt. The City will post
warning signs on its own land.
Harrison said Killen had never requested an inspection of streets or W$S
system; Odin Strandburg, Engineer for Momosen Additions 1 4 2 formally invited
Harrison to a tour of inspection on Saturday at 9 a.m.
Roguszka presented plans for the Maintenance Building on the Airport. As per in-
structions from Council the Airport Commission had prepared the plans for facilities
within the funds available; plans had been approved by the Airport Comm. and the
Planning Commission. The design is based on the State Division of Aviation's basic
plan. Adams-Corthell-hoe, Wince q Associates had helped on the design of a 40, x 60'
bldg. which will house any of the City equipment except the Grano. Water 4 Sewer
will be provided by well point and septic tank until such time as City facilities
are readily available. Pro -fob motal will be used and it is hoped this will be bid
locally. Notices of invitation to bid will be advertised in Cheechako and Anchorage
papers. Pre-qualifiod bidders' requirement is not so imporatant on this job as on
some others, and this would take too much time as it is hoped to have the bldg.
complete by 1 January 1966. Harrison says it Is a well -planned, well -designed
building. McCann moved, Meeks seconded, to approve plans and invite bids on con-
struction of the Mtce. Bldg. Notion passed by roll call vote.
Re the sea -piano base: this is a $1320000 project; 49,500 the City's shares,
to be donated by equipment use, materials and labor. $29,500 will be requested
from the State; FAA must be assured the City cad come up with its share. If, for
some reason, the State cannot grant more than $29,500, the City can 1. Reduce the
scope of the project, 2, take additional donations, or 3. Convert land assets into
cash. Roguszka suggests the City agree to the last proposition. The question
arose as to the City's pledge to apply revenues from land sales or looses to the
Terminal bonding ---the Atty, will look into this. McCann moved, Meeks seconded,
to authorize the City Manager to file the letter as read by Roguszka, Roll call
vote passed the motion unanimously. This letter will assure PAA of the City's
ability to pay its share.
The rest of the meeting was given over to discussion of the Anchorage Natural Gas
Co.'s proposal for serving the Kenai area. Dale Teel, President, introduced Bob
Heath, Treasurer of the Co., and Willard Stump and Harold Smith. Teel said the
Co. was experienced and could offer realistic rates, efficient service, and re-
minded Council of the economical rate schedule for large commercial and process
industry. The audience was furnished copies of the proposal and joined in the
Council Minutes Page four 7 July 1965
discussion with Council. Tooldhubted on unlimited quantity could be guaranteed in
just those words --says they have to notify Alaska Pipeline Co. two years ahead of
time when large demands will be made.
p Cone pointed out this was the same proposal the City Council had turned down
the past four years. The only difference was the change in rates for large users,
and it would take an installation larger than Pt. Rich to use this much gas.
Most of the speakers from the floor could not see the reason for charging
the sumo rate as that in Anchorage.
Teel stated most Municipalaties had gradually sold gas utilities to private
companies as City govorments were not qualified to effociently run such a business.
._ Cane said N.R.A. had the same large organization, with experts in all fields. .
but the City of Kenai had been able to better their rates.
Speakers from the floor were: Leo 0borts, Bob Beilefeld, Ruby,Coyle, Jim
Doyle, Clay Lyons and Harold Galliett.
Teel said if the City was inclined to approve this proposal, his company
would need to order pipe within the next two weeks --that they would have the system
in operation by this Pall --they would want a 20 year franchise.
Morin thanked Mr. Tool for the presentation, and the meeting adjourned at 11:30 p.m.;
Respectfully submitted
I
Prances Torkilsen
City Clerk
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C ITY OF CAI 7-7-65
GASOLTNR DID TALLY SEWS
?listed below are the bid tabulations for the bide reoeived at 5:00 P.M. 7-6-65
fcr the annual requirement of gasoline any hosting oil and diesel.
PRODUCT nIDDOR BIDDOR DIDDOR DIDDOR
Unix DOt 1 Don Bailey ley Standard Doyle
BID DID
Regular Gasoline No Bid _ _ W
•245 .239 Na Did
Stove 011 .202 No Rid .1845 019
Diesel .19 No Bid .177 .178
It eppeare that the for bid on all items In Standard. T hay have submitted Be )art of
their bid, their reguiar orntract. I will reoo-mend that the bid be
and that I be authorized to sign the contract with them, awarded to Standard
Res;�eot lly submitted,
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aides 1. Herrieon,
. C itty Maaager.
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