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HomeMy WebLinkAbout1965-12-01 Council MinutesAMWA CITY OF XENAT REWLAR MEETING OF THE CITY COUNCIL OF THE CITY OF KENAI 8sO0 P6M. December 1, 1065. A. ROLL CALL. Be PERSONS PRESENT SCHEDULED TO BE BEARD$ C. MINUTES $ Regular Meeting November 17th'� Spsoffal Meeting November 19th'� Special Meeting November 24th D. CORRESPONDENCE, R. REPORTS • 1. City Manager. 2. City Attorney. ✓ 3. Mayor, City 039rk, Commissions, P. UNFINISHED BUSINESS $ ✓1. Discuss possible elimination of Ad Valorem Tax on ® Personal Property. -6-44 't 2. Receive Comprehensive Plan from Alaska State Housing Authority, and correct resolution authorizing supplemental / payment. ✓3. Discuss Proposed Contract fcr Purchase of Natural Gas with representatives of Union Oil Company, 4• Authorize transfer of.Uquor license from Westam Ltd. Kenai City Development Carp., eta., to Black Gold Corp, McCann and others. A( 5. Discuss rules and regulations regarding possible sale of d Lot 1, Aleyeska Subdivision Part II. 6. G. NEW BUSINESS$ t4al 1. Receive Ordinanos No. 16, repealing ordinances creating gook and Harbor Commissions. 2. H. PERSONS NOT SCHEDULED TO BE HEARD$ 1. 2. I KI:NAI CITY COUNCIL ­1LTING 1 1W.0 -131-W 1965 Duo to absence of Mayer and Vice Mayor, the City Clerk called the meeting, to order and Carl Somiwn was elected temporary Vice M;tyor. The City Mgr. anno►u►ced that Mayor I1ye was in Wonallon and could not net back for the meeting. Vice Mayor Morin arrived shortly after roll call. Roll call: Mombors present: Chester Cone, Bud Lofstedt, Billy iNtCann, Roger Nboks, (one Morin and Carl Seaman. Absent - Mayor Dye. Also present: City Atty, James G. Fisher, City MRr..I.W.liarrison KCL.Su t. Clay Lyons, Planning Comm. members Ruby Coyle and Catherine; Malone; Union Oil repre- sentatives Cliff Dunham and Gene griffin. There were others in the audience also. Clay Lyons reported to Council on a meeting with Westinghouse people in Anchorage re- garding the purchase of reclosuros and sectionalizors for KCL distribution line. In- stalling this equipment would aid the City in detecting whore a line failure takes Places and would automatically keep that portion of line failure from shutting off the power all over the City. Cost of equipment is $3500 and Westinghouse would send engi- neers down to see that it is properly installed. The City Mgr. and Lyons both recom- mend purchase of the equipment, and they say we have the money. McCann moved, Meeks seconded, that Lyons be instructed to purchase the reclos- ures and sectionalizers. Motion passed unanimously. Art Bunnell presented the specifications and plans for the To tal 1114g. Said plans incorporate the few changes roquosted by Councils i.e. minor change in the outside layout, and clu:nges in some of the materials to be used. The principal change made at the request of FAA who wanted more windows, made it necessary to redesign tie sheer wall to meet earthquake criteria. After some discussion, Seaman moved, Cone seconded, to approve the terminal build ing plans as revisod. Motion passed unanimously. Council authorized the City Mgr, to work with 1111FA in any way possible to get the plans acceptable to HHFA. He and Bunnell will contact 14 FA in the morning to try and determine just what they need to expedite approval. The minutes of the meeting of 17 Nov. were approved. The minutes of the meeting; of 18 Nov. (special meeting with Leon Spencer ro KCL) were approved. The minutes of the meeting of 24 Nov. (special Council meeting at the High School; were corrected by the City Mgr. and approved. Mco Mayor Morin, in behalf of the school, thanked Council for the effort they made to bringg one phase of City Government to the Students. The Faculty and the Students had likefl the idea so well that they are now conducting their student govnt. in public - holding their Student Council meetings in front of the student body. City Mgr. Harrison reported: 1. We are making progress on the cemetery land. It will be tiorned over to the State by the HLM; the City will then relinquish it's application to the BLM, and the State will deed it over to the City. This parcel is especially needed when the lights are installed at the Airport. 2. FM will not consider an extension to the run -way until they receive something in writing from PNA regarding their plans to bring .Jets in here in the Spring. The Vice President of PNA has written such a letter requesting a 1500' extension for this service. Harrison has been talking a 3500' extension with FAA. Harrison slave a lot of credit to Mr. porter, Mgr, of the Kenai FM station, for setting up appointments with the FAA staff in Anchorage, as this helped a great deal in getting the City's needs before the right people. 3. Harrison said he had received a request from fibrin for an extension of time to clear the matting off the old run -way. Council concurred in Harrison's suggestion to give h until broak-up in the Spr g. Kenai Council Minut I Dec GS Page two 4. A letter has been received from 11131 Dopt. saylup they are making the audit on the 11811118 portion of the W&S project. The City has received $4,000 from IISPIIS, and $14,000 frrnn MINA; Peat, khrwick Mitchell and Co., II. Galliett and the City Atty. were paid for work on this project and the balance of $10,000 plus some has iven sent to I2. 0, Cantz, tnistee for the Bonding Companios. There was some discussion on the vegotablo coloring in the City water supply. 'rho filtration system is not designed to eliminate this coloring. It does take out the iron, and test show the water is pure --it's just the color that bothers people. The City and Galliett are keeping this problem in mind, but there seems to he no solu- tion at present. 5. Harrison read a letter from Ron Cease, Director of. the Local Affairs Agency. Said letter is a result of the Atty. General's opinion which states a true industrial tax incentive teduces the valuation for taxing for school purposes --in other words, the Boro does not have to make up the revenue equal to the amount of tax that would have been received had an industry been exempted from paying that tax. Copies of this letter will be sent to the Assemblymen in time for the next Boro meeting on the 7th. The Atty. reported: 1. The letter from Ron Cease is not good news for the individual taxpayer as it puts more of the burden on them. 2. Presented an ordinance for the Mayor, as Assemblyman to present to the Boro which will enable the Kenai Peninsula Cities to contract with t4 Boro to carry out their own Planning and Zoning until such time as the Boro can undertake this function. Fisher recommends the City should put out 15.20 copies of this Ord. for the Assembly. 3. At the request of the Council, fisher presented his opinion on exempting the personal property tax levy for City purposes. According to State Statutes this can be done by a Home Rule City. This is taken up later on in the Agenda. 4. Presented an ordinance abolishing the lock $ Harbor. Commission according to the request of Council. S. Presented a schedule of. Cordova flights for a certain period which shows 501 of their traffic comes out of Soldotna. There was discussion on continuing; to retain the Washington Atty. Fisher will ascertain the amount of his fee to date, and report back to Council. Ile has done an enormous amount of good work for the City, but since the hearing is to be held in Alaska, Council thinks it might be possible to carry on now ourselves. The City Mgrs reported for the Mayor: Gov. Egan had requested a proclamation designating the week of 13 Dec. as Civil Defense week. Workshops will be held in various Cities. The schedule may be seen at the City Hall Bulletin Board. A letter had also been received from Miko Gravel thaning Mayor Dye for his efforts in setting up the meetings for the Legislative Council during their visit to this area last month. Agenda Item P-li Morin► presented Ordinance 092, Providing for Exemption from Taxation I of Personal Property within the City of Kenai. ---. - Discussion showed most of the Council and audience in favor of this exemption even though it would increase the taxes paid by most individuals. This card. deletes (, the City levy of 10 mills on personal property, but would retain the present levy of 5 mills for the Boro share. !; Harrison presented his resume of what this exemption would do to the City's Budget. In effect, it leaves $22,000 to be raised by other means--i.e. a 2 mill in- crease on the real property levy. Also, the City will not receive tobacco tax monies or sales tax monies which were ludgeted and received this year. This makes it necessar to raise the levy one more mill, making; a total of 13 mills on real property based on $8 million valuation. The only other alternative is to reduce the services now being offered to our citizens --this is not recommended by the Uty Mgr. i 9Y►�1i>s . ... ._ Kenai Counc 'Minutos 1 Dec 65 Pago three Harrison says the most route would be for the Boro to eliminate the personal property tax, but this seems to he wishful thinking,, He says we should anticipate a budget for next year of about $160,000 - it is $1570550 this year. There was some question on whether or not this reduction would he reflected on prices in the local stores. Most of the people thought when they voted for a Moro sales tax, this would allow for elimination of any personal property tax. McCann moved. Cone seconded, to adopt Ord. N92 for first reading. During more discussion, speakers from the floor wore: Ruby Coyle, Stan Thompson, The Atty. recommended the Ord. have a first reading, then the second reading can either adopt it for good, or refuse it. Roll call vote on the motion passed it unanimously. Harrison will get publicity on the time of second reading. to the papers - this is set for 15 Dec. at the regular Council meeting. Item F-20 ASHA's Comprehensive Plan was tabled until their delegation can be present. Jtem F-3: Tabled to take up Item F-4 with conl4ent of Council. Item F-4: Application for transference of liquor license from Wostam Ltd., Kenai City Development, Inc., Billly McCann, Royal Redoubt, to Westam Ltd., Kenai City Develo ent, 1n dA#avElUly McCann, Wilbur L. Smith and Ethel A. -Smith. 4a Cone moved, Me0t seconded, to appyove the transfer of Litluor License as re- qu sted. Motion passedk#i+e-.%�'�A,w,ti Item F-N: Harrison presented the latest draft of the Union Oii-Marathons proposal to sell gas to the City for distribution purposes. This agreement was reviewed para- Suph by paragraph and discussed by Council, City Mgr., City Atty, members of the audienc and Nhssrs. Dunham and Griffin. A tape recording of this meeting is being filed with the City's records. Most of the agreement was accepted without much questioning. Council was satis- fied with the "tone" of the agreement, and appreciated the "good faith" with which Union & Marathon had acted in negotiating this contract. The principal changes are really additions rather than changes: i.e.: 1. Art. IV, 4.1 - Union -Marathon will furnish this valve for reduction of pressure. 2. The 264 per Maf still holds and will escalate up to 304 at the end of the 16th year but the $25;000 paid for r.o.we will be paid thusly: $10,000 cash at the signing of the agreement, and the remaining $13,000 will he credited to the City at S4 per Maf on each Mef purchased by the City up to the sum of $15,000, This will en- able the City to offer gas 5o lower if they desire. Also, the favoured nations clause (Para 5.3)0 will reduce the price of gas if. U-M sells gas from this line at a lower rate than that in this contract. The favored nations clause will not be affected if U-M sells gas for electric generation, but the City will have the right to purchase gas for the some purpose at the same price as offered to others. There was considerable discussion on price. Council was polled as to the rate starting at 210. The vote showed 3 to 2 they thought the schedule should start at 2140 but it was pointed out this is gas delivered, dehydrated and processed for use. Cost of this equipment is about $6500000, Dunham will take Council on a tour tomorrow if they wish to see just what it entails. Also, it was pointed out the revenue from Wildwood alone would be $50,000 a year, and the 14 reduction, asked for by Councilman Cone, would amount to $1500 per year. Harrison was akked for an opinion and recommendation on the agreement. He thinks it will be 11A r e acceptable, and since Wildwood is ready to go on gas dis- tribution ves the City to be in a position to offer an attractive price --this we can do with the present agreement. 3. Art. IV, 5.2 - the City would have any additional tax applied to its obli- gation which also gives us the right to protest and actively fight a proposed tax. Counc it m inutos t I►rc: 05 Page four 4. Para 5.3: Harrison II-M dofino whist; they mean by gas to he sold for "resalu". This sentence spoll.s cut for "1 i.geiif ieati.on"--what if it's for some other purpose? 5. Para 6.5: Thero was more discussion and disagroement on this than any other point. Councilman Seaman maintaining that 7500 NtfIs a clay could easily strap the City in the future, and the 30,000,000 Mcf's for the life of the contract could be a drop in the bucket If several lame industries wore to locate hero. Harrison suggostod an added clause wherein the City could buy any uncommitted gas U-bI might have loft in the field if the City needs more. This will he added to the agreanont but it was pointed out by the time we need it, there could very likely be no "uncommitted" gas loft. The Clerk suggested if Anchorage, a city of 50 000 population uses 12 million cubic feet per day (this from Union Oils report) it Is very possihlo in a few years the City of Kenai could have 1/10th the population and use 1/10th that amount of gas which could be over 1 million of a day. Council was polled on this question and all agreed to accept this limitation with the stipulation re the this gas, except Seaman who voted "no". 6. Para 10.2: The City Atty. says U-M is reversing itself on everything said in Para 6.5 with the words "nothing herein contained shall prevent the Seller" ... etc. Griffin will check on this Hording and the intent when he gets back to his offices. 7. Para 7.2: Harrison objected to the 81 penalty if IBM accounting is used-- says this should be lowered or the time limit increased by at least one month. Harrison recommended this he accepted with the additions and that the document he redrafted and submitted for signing whom the agreement for the payment of r.o.w. is signed. Griffin agreed to make tho additions in the agreement and the few ehan�go9 in fthibit A# and to draft tho r.o.w. contract. A poll of the Council agreed to this r.o.w. payment with the exception of Simmons Meeks moved, McCann seconded, to accept the contract as written and amended for final presentation. (toll call vote: Affirmative - Cone, lofstedt, McCann, Meeks, Morin; Negative - Seaman. Griffin expressed regrot Mr. Sandusky could not be present, and said he would re -write those parts necessary for agroement, and would submit it with the r:o.w. agreement as soon as possible. Hach party thanked the other and parted friends. There was some discussion on tho Planning and Zoning Ords to be presented to the hero. Council agreed the Mayor should make this presentation at the next meeting. It was also agreed the City would not take a stand on the proposed amendmont to the 8oro sales tax oid. wherein Cities would be required to collect the 3% sales tax on sale of electric power. [Does this mean the City would collect a 3% tax on Wi,S orvices? It's a ut:U ity.j There was discussion on: Civil defense Budget; City Xmas tree; snow fences by the south and of the old I air strip adjacent to the Kenai Spur; school busses picking up children 1 1/2 mi. from the school --it's very dangerous for the verp young children who have to cross the gullies - Harrison will write re this from a policing angle; Enforcement of the City's - , traffic laws by the Troopers; also enforcement of the gambling laws; It was felt the City could expect better enforcement for the price they are paying. Noting adjourned 12 mid -night. Ro�osspectfully submitted, ..7i/xA+Kit�vJ � Frances Torki.isat City Clark 10?40Y 01 Adw14 PU a" 4 0