HomeMy WebLinkAbout1965-11-03 Council Minutestp�*%
CITY OF IWAI
AGENDA
REGULAR
LETTING OF TU CITY COUNCIL 8:00 P.M. NOVEMI3ER jL, 1965
/A.
ROLL CALL•
Be
PERSO 8 SCY_YED�1L p TODS HEARDt
✓1.
ree Navarro, regarding personal property tax.
✓
�2•
.
HINUTES OF REGULAR MEETING OF OOTODER 200 1965,
D.
CORRESPONDENCE,
E.
REMITS 9
✓l..
City Nanagor.
2.
City "ttorney.
3•
Mayovp City Ob rrk,_ Commissions.
P.
UNFINISEMD �ww*4'"` Atrd`
A M
13USINLSi4
ROOoiVe Annual Audit on Xenai City Li,-ht.�s�/yy✓
Receive .lnnual Report on City of Nonai. ���.rc ,t4-� ..,
3.
Discuss hiring of Airport Consultant to close out FAAP
Spro
jt at.
4.
Authoriso terminal ohenges by .1rohitoot. Disou..a status
of Airport Terminal :juildW..,
5•
6.
a. mmy 13USINFAS:
1. Receive Report an the Municipal LeaCue Convention !_jy
City Manager.
2.
H. PZRS(NS NOT SCREDUMD TO 1;E JARD:
- - 1•
2.
0
UNAI CI`CY COUN• . MINUTES
3 NOVHNBGK 1965
Members present - Chester Come, Hud Lofstedt, Hilly McCann, Roger Meeks, Gene
Horin, Carl Scamnau and Mayor James G, oye.
Also present City Manager James W. llarrl.sson and City Atty., James L, risherj
Planning Commisslon member Bob Bielefeld, Airport project Consultant Gene Roguszka.
Mr. Jess Nicholas announced arrival of a delegation next Monday, 8 Nov. consisting
of Son. Bartlett, SBA officials, Life magazine reporters, and a representative of
Son. 4ruontng's office. While have they will inspect facilities that have received
502 Loans. The City Council and officials are invited to participate in this tour,
Everyone will meet at 1000 at the Village Inn, thence to the Airport. Lunch will
be at Riversida, and dinner at Koval Redoubt. The latter is taking reservations
for both meals.
George Navarre questioned Council on its action in turning down the application of
Carr's for renewal of liquor license for 1966. This action was based on information
from the Boro Taxing office that personal property taxes were owed by Navarre who
had sold the premises, etc. to Carr. Navarre questioned Council's attitude of
withholding the license from Carr as long as Navarre is not associated with the
business --having sold it about June* There was considerable discussion on when a
tax is u liability against a liquor licanaoi Council thinks only when the tax is
applicable to the propsaty where the liquor is sold. The City Mqr. and Mayor am-
phasised to Navarre that the City did not sot evaluations, mail the bills$ that
the taxing power is now a Borough function. Navarre said he did not know he would
be paying personal property taxes fo- a full year --he thinks the tax is unjust,
arbitrary and debatable in Court. Nevertheless, he said he does intend to pay it
because he doesn't want the City to have to make up the tax in the event the Court
found in favor of his action.
Council thought since both parties are reputable people it would be well to
maintain peaceful relations. Morin moved, Meeks seconded, to approve the applica-
tion for renewal of Cnrr's liquor license for 1966s Roll call votat Affirmative -
Cona, Lofstedt, Meeks, Morin, Seaman{ Negative - McCann. McCann stated he voted
"No" on principle, and Chat he was in sympathy with Navarre on the injustice of
the tax.
Don Bailey requested a 15 day extension on his option to lease Lot O1, Aleyeska 8/8.
The history of the transactions was discussedt On July 1, Bailey should have gone
into a lease agreement, but asked the Airport Commission for thteetthings, i,e. to
have until 29 Oct. to 1, Execute the lease - 55 yr,, 2, buy the lot for $14,000,
or 3, Pay four months rent and release all claim to the lot, thus forfeiting
the bonus money and miscellaneous expenditures amounting to $875, Bailey has a
commitment from the Bank to advance hit: the money to buy but he neods 15 days to
run a title search, He wants to buy the lot and get started on construction this
winter; he knows he should not have waited so long to gat things going. Council
discussed the status if the lotift the event the option was not extended. It was
decided the best course was to advertise the lot for sale under conditions of sale
of Lot #6, Seaman moved, Morin seconded, the City should not extend Don Bailey's
eption on Lot #16 Aleyeska S/De Roll call votes Affirmative - Lofstedt, McCann,
Seaman= Negative - Cone, Meeks, Morin, Mayor Dye.
Seaman moved, Lofstedt seconded, to advertise Lot 1 for sale for business
purposes on the same terms applicable to sale of Lot #60 Aleyeska S/D, with the
minimum bid to be $149000, Motion carried ' with Meeks dissenting.
the Atty• advised the Council should have a definit idea what is meant by the term
a "substantial building" when drafting their policy,I r leases, sales, ate.
Minutes of the last meeting wore approved.
Council Minutes"-, 3 Nov 65 Page two
The City Manager reportedi
1. The steam boiler l:, in Moose Pass, but w)rd had been received it was slightly
damaged in shipment --if it is not entirely satisfactory, Iarrison will refuse
acceptance.
2s The new City offices should he ready this week end.
3, Negotiations with Foss over trade of land are still underway.
4. Clay Lyons has been appointed to serve on the Federal Power Commission's Alaska
Power Survey Committe, and is now officially a certified electrical inspector.
5. Mrs, Frances Torkilsen was elected Sec.-Treas. of the Alaska Municipal Clerk's
Association.
6, The CAB - PNA hearing will be 18 Jan. 1966 in Washington D. C,
7. The Kenai Cooperative Fisherman's Association is endorsing the Bridge across
the Kenai River.
8, There is still nothing to report on Union -Marathon agreement with the City. The
Mayor suggests a letter pointing out the City's stand on a tax incentive for them,
and our efforts to cooperate, but that we want an answer by 7 Dees Seaman says we
should o*pose energizing the line until a contract is executed. The City Mgr, will
write such a letter.
9. Leon Spencer of R.W.Beck & Associates will he here 11 or 12 Nov. to present his
report to Council.
10, The agreement for serving Fish & Wildlife has been re -written by their Attyse
but it appears satisfactory. They will pay $3,062.54 on completion of the water
line, but the sewer lines, to cost $2,961.899 will not be installed until after
1 July 1966 when funds are made available for that fiscal year to F & WL, McCann
moved, Morin seconded, the City should execute the contract with Fish & Wildlife
for Water & Sewer. Notion passed unanimously.
11, Strandberg had brought in a letter from Chicago Pneumatic saying the new gen-
erator had to have a new shaft Forged, but that it should be ready by 8 Nov.
12. The electric consumption has increased 80% over last year. It is hoped it will
not be necessary to ask Wildwood to use their own power generation during peak
periods this winter.
13, Harrison had stopped off in Juneau and had visited the Accounting Dept@ of the
city. They are converting to IBM and will have their Burough Sonsamatic machines
for sale in a few -oaths. Evaluation is $8,000, but IBM had offered a trade in
value of $2,000. Juneau will sell to Kenai for $1,950 if we want them. This will
greatly increase the effectency of the City's bookkeeping, and will enable the
clerks to maintain a better record of transactions. Council says to ask Juneau for
first chance at purchase when they are ready to sell. Juneau had also offered to
finance the purchase with terms, etc. This is an economical way for the City to
change to machine billing --a change that will have to be made in the near future.
Also the City Charter calls for the accounting to be done all in one office.
14. Whill in Juneau, Harrison and also talked with Gen. Ullman who said he was very
much in favor of the Park and Armory plane, but he hoped to get the land under title
to the National Buard. It will be 4 or 5 years before an Armory can become a realit-
but, at least, the land will be available.
15. An interview with the Atty. General revealed that property exempt from taxes
thru a Boro tax incentive program would not be included in the evaluation for the
Boro's share of the school tax. This would make it easier for the Boro to adopt
some kind of a policy if it desires.
16. Malone will go to Anchorage to find out the requirements for a tidelands survey
which will enable the City to put in its claim for same.
17. The FAA has turned over 26 titles to property to the Cityi and General Services
Administration has given the City the same priority rating as the State Dept, of
Health for claiming surplus items. This way the City won't have to stand in line
to get needed equipment.
18. The Planning and Zoning Commission will hold a public hearing 18 Nov on adoption
Of the Universal Building Code and the now Zoning Ordinance,
19. There were 30 people at the Fire Training School hold in Kenai Oct. 28,29 & 30.
Commissioner Underwood and Capt. Mayfield had been in the office inquiring about
the program, and Harrison had recommended the school be held on an annual basis.
He will write a letter to this affect.
-.
Council Minutes--• 3 Nov 65 Parka three
The Mayor reporteds
Inquired as to the statue ofthe approach zone? Rogusaka has made a complete
resume of the statue of each and every parcel, and Harrison will endeavor to obtain
the necessary easements in the coming months. Harrison recommends the Congression-
al Delegation be apprised of the status of the cemetery, and requested to get a hill
in Congress granting this to the City. We have wasted four years trying to work
with BLM on this parcel, and are stillwhere we started.
One of the main actions at the Alaska Municipal League Convention was to
try to marry the Cities to the Borougha; they will re -write the Municipal Code to
try and make it pallatable to both the Cities and Boroa= the next meeting will be
In Fairbanks next Oct; then possible Sitka in 167, and Kenai has hope of hosting
thegroup in 168, The Mayor complimented Harrison on his publicity for the City at
the Convention --there was some kind of a momento at every luncheon to remind the
delegates of Kenai's invitation for 1689 climaxed by a small bottle with a sample
of oil on the last day• Sen. Bartlett, in one of his addressees, mentioned how
much he was enjoying the "Kenai Convention". The Mayore also commended the City
Mgr, on his presentation last night of material to the Legislative Council's hear-
ing. It was a good oportunity for them to see what this area is doing, and the
Mayor had arranged with Shell Oil for a flight over the City, oil £ielda, off
shore platforms, etc. They seemed to be impressed with Kenai's efforts to help it-
self, and not to just ask for a handout all the time. They also said they would
do all they could to assist us in our projects, On our plan to extend the run -way
19000 ft.$ they said, "Why not ask for 39000'?" The Mayor thinks the 1,000' exten-
sion seems assurad, and says with Wildwood converting to Airforce, the 39000' will
undoubtedly come later. The Legislative Council was also very receptive to the
Bridge problem. Unfortunately$ the Mayor and City Mgr, were out of town when the
Dept. of Hwy'so bridge man was in the area, but Harrison will set up another date
with him.
Harrison informed the Council the Mayor had been elected by acclamation as Presi-
dent of the Alaska Municipal League. This is an important year for all of us ---
seeing that we either do or die as far as City -Borough relationships are concerned.
The Attys reported two PNA men from Seattle had been in the area; suggested Kenai
try to get classified as a -.weather alternate, rather than an emergency alternate --
that this might aid in getting an extension to the airstrip.
A letter from the Atty• for Tyonek will be copied and sent to Council,
HEA vs. the City is on appeal. We will not use Gantz, but will use the
valuable data he compiled in the initial phases of the case.
A letter from Agar re U145 had been received wanting HHFA and USPHS to remit
the remaining funds• This cannot be done until USPHS has made their audit.
The Washington Attys in the CAB hearing had been warned not to exceed $1,000
on the City's behalf; Homer had expressed an interest add possilbe intention of
entering the case. It may be they would want to help defray some of the expense
of this Atty. Homer also wants a turn -around service from PNA.
Harrison reported the Neighborhood Youth Program will be turned over to the Chamber
of Commerce. Criticism of the City's handling of the program had been made by the
agent in charge ---The City feels this is most unjust as the breakdown of the
paper work was not the fault of the City, but due to delayed delivery of the forme
for execution. Mr. Woodiell will oversee the program for the Chamber.
A letter was received frum the Director of Elections asking Council to consider
a site for location of a second voting precinct within the City. This will he on
the Agenda for the next meeting,
Mary Riley presented the annual audit made for Kenai City Light. This is a uniform
audit conforming to general accounting procedures for utilities and can be compared
with utility companies anywhere. The statement reflects a fair operation and shows
a 1,63 bond coverage. 1 A is required by the bond ordinance. Riley pointed out
Council Minutes -
3 Nov 65 page four
an additional 6,000 dollar expense would cut this debt service down, so expenses
still have to be carefully watched. Funds are deposited to pay the bond interest
and premiums every month.
Riley suggested the Council should establish a policy of payment in lieu of
taxes. They have been remitting IX of the gross --this is what Kenai Power paid the
City as a franchise tax. Council asked Riley what he termed a fair amount. Some
utilities pay less, some pay 2%--the main thing was to got a policy established.
This is the first full year of operation for Kenai City Light and shows
what the business is doing, thus a budget should be easier to work out for the
coming years. This has not been done before as there were no records available for
estimated costs and revenues. Riley recommends an itemized budget be made and
adhered to.
His principal criticism was the lack of records kept on inventory; he says
KCL is now keeping a card inventory sad taking physical inventory once a year, but
the storing of materials should beimproved. It is hoped storage facilities can be
arranged so a closer check can be made on supplies. Riley also suggested the
stock should 'contain items normally used, so there would be no long delays for parts
Inventory usually amounts to 15-20 thousand dollars, and should be stored and
handled accordingly.
Discussion on the line least conversion from Delta to Wye has helpd this
situation as well as gradual replacement of old lines, etc. Spencer can better
answer this problem.
Wildwood still needs 2-3 thousand dollars worth of control equipment. A
look at the City's books will tell how this account is paying off.
McCann moved, Cone seconded, to accept the audit of Kenai City Light. Motion
passed unanimously.
Ted Gaines presented the audit of the Airport, Water & Sewer and General Funds. His
principal recommendation was that the Water & Sewer department should have property
maps showing water and sewer assessments, who is hooked up to what, and when; also
a Master Card should be made for each user showing assessment, when the hook up was
made, all pertinent data re W&S. Gaines also recommended the City change to a ma-
chine billing system in the near future as the City's business is getting too big
for hand billing. Machine billing will not reduce the amount of work, but will
allow the office to have better records, and will keep such records current at all
timeso another recommendation was that the City have only one bank account, but
keep separate funds --even Kenai City Light can be combined into one account. This
will be much easier on the personnel, will make one parson responsible, though all
Clarke will be acquainted with all processes, and can allow for vacation times with-
out interferring with office procedures. Gaines pointed out there was quite a var-
iation between amounts budgeted on revenues and costs. He knows the C Tarter provide
for borrowing from funds, but suggests the budget be reviewed and revised now and
then ---this the City will do, -and has done, now that a City Mgre is on the job.
There was discussion on shortfall money; C.alliett questioned costs on un-
forseen expenses for W&S; the City's handling of Civil Defense monies --Gaines will
write a letter re the latter.
Morin moved, McCann seconded, to accept the audit on the General Fund. Motio
passed unanimously.
The City Manager complimented Rogueska on the detailed reports to Council re the
FAAP Project, Since Roguszka's contract with the City expired 31 Oct. the proposal
to continue with his services was discussed. The fee of $1950 would bring to a
close all phases of the present project; the money is part of the FAAP project and
would not take away from operational funds; Rogueska has established good working
relations with FAA, etc., and is acquainted with procedures and the paper work they
will require in the semi-final and final audit; the City Mgr. recommended Rogueska'
proposal be accepted. McCann moved, Morin seconded, Rogueska be ratained as air-
port consulatant and finalize the project for a fee of $1950. Motion passed unane
Council Minutes 3 Nov 65 Page ftve
The City Mgro said there had been no word from HHFA re the Terminal Building, and
he recommended the City inquire as to other means of interim financing until the
bonds can be put on the open markets He also recommended Art Bunnell be instructed
to make the changes he suggested, and to prepare the plans for bid.
Harrison had talked with Mrs Garin, of HHFA, in Ketchikau, and Mr. Garin had
said HHFA would request the City be allowed to sell only $10,000 worth of land per
year. Harrison maintained this unpalatable and untenable, and said while we could
still perhaps sell the bonds to HHFA, this would not prevent the City from seeking
other means of interim financing, In addition the City Mgre asked permission to
tell the U.SsSenators the treatment the City had received from HHFAs PHA and FAA
are getting anxious about the terminal, and if bids are let now, work can be started
In the Spring, or earlier. Thorgrimson thinks an election will be necesearry, but
there's a chance it will not bee The City should with with HHFA for the next sev-
eral years, but we can also try to help ourselves, without jeopardizing our rela-
tions with theme Council authorized the Mayor and City MGre to negotiate for in-
terim financing on the bonds. Part of the specifications will include some kind of
an incentive for early completion of the jobs
The City Mgr, will submit a report on the AML convention in writing.
The FAA says the City should put up signs warning pilots not to use the old air
strip•
The ACtys has not prepared the documents re an injunction against Union oil as this,
is a lengthy undertaking and would be a lot of time wasted if the City does not
move in this direction= but he has all the notes ready if needed.
Meeting adjourned 1WO pems
Respectfully submitted,
Frances Torkileen
City Clark
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