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HomeMy WebLinkAbout2005-04-20 Council MinutesAGENDA KENAI CITY COUNCIL - REGULAR MEETING APRIL 20, 2005 7:00 P.M. KENAI CITY COUNCIL CHAMBERS htt ww-w.ci.kenai.ak.us ITEM A: CALL TO ORDER 1. Pledge of Allegiance 2. Roll Call 3. Agenda Approval 4. Consent Agenda *All items listed with an asterisk (*) are considered to be routine and non- controversial by the council and will be approved by one motion. There will be no separate discussion of these items unless a council member so requests, in which case the item will be removed from the consent agenda and considered in its normal sequence on the agenda as part of the General Orders. ITEM B: SCHEDULED PUBLIC COMMENTS (10 minutes) 1. Kenai Middle School Students -- Kossack Korner Clothing Drive 2. Jason Elson -- Donation of Land ITEM C: UNSCHEDULED PUBLIC COMMENTS (3 minutes) ITEM D: REPORTS OF KPB ASSEMBLY, LEGISLATORS AND COUNCILS ITEM E: REPORTS OF KENAI CONVENTION & VISITORS BUREAU BOARD AND KENAI CHAMBER OF COMMERCE ITEM F: PUBLIC HEARINGS 1. Ordinance No. 2087-2005 -- Amending KMC 23.40.030(fl to Change the Amount of Leave Time an Employee Who Works the Equivalent of a 56- Hour Work Week Must Take Per Year From 112 Hours to 80 Hours. a. Substitute Ordinance No. 2087-2005 -- Amending KMC 23.40.030(fl to Change the Amount of Leave Time an Employee Who Works the Equivalent of a 56-Hour Work Week Must Take Per Year From 112 Hours to 84 Hours and Lowering From 80 to 60 Hours Per Week the Amount of Leave Time That Must be Taken for Employees Working 40 Hours Per Week. 2. Ordinance No. 2088-2005 -- Amending KMC 23.30.110(b) and (c) to Change the Automobile Expense Mileage Rate From $.30 Per Mile to the } Standard IRS Mileage Rate and Change the Per Diem Travel Expenses � From $35.00 to $50.00 Per Day. 3. Ordinance No. 2089-2005 -- Replacing KMC 4 to Adopt: 1) the International Building Code, 2003 Edition of the International Code Council; 2) the International Property Maintenance Code, 2003 Edition of the International Code Council; 3) the International Mechanical Code, 2003 Edition of the International Code Council; 4) the Uniform Plumbing Code, 2003 Edition of the International Association of Plumbing and Mechanical Officials; 5) the National Electrical Code, 2005 Edition of the National Fire Protection Association; 6) the International Fuel Gas Code, 2003 Edition of the International Code Council; 7) the International Residential Code, 2003 Edition of the International Code Council; and 8) the International Existing Building Code, 2003 Edition of the International Code Council. 4. Ordinance No. 2090-2005 -- Amending KMC 8.05 to Adopt the 2003 International Fire Code, First Printing. 5. Ordinance No. 2091-2005 -- Amending KMC 23.55.030(b)(2) to Add Qualification Pay of $300 for Fire Fighters Who Qualify as Fire Apparatus Operators. 6. Resolution No. 2005-12 -- Transferring $3,372 in the General Fund for a New Ice Machine at the Senior Center. 7. Resolution No. 2005-13 -- Transferring $5,400 in the Airport Terminal Enterprise Fund for Personnel Services. 8. Resolution No. 2005-14 -- Supporting the Efforts of the Kenai Economic Development Strategy (KEDS) by Directing the City Administration to Appoint a KEDS Steering Committee Member and to Continue its Close Work With the KEDS Working Group. 9. Resolution No. 2005-15 -- Awarding a Contract to Kustom Signals Inc. for aSpeed/Message Trailer for the Total Amount of $26,714. 10. *2005 Liquor License Continuance WITHDRAWAL OF PROTEST -- Alaskalanes Bowling Center. ITEM G: MINUTES 1. *Regular Meeting of April 6, 2005. ITEM H: OLD BUSINESS 1. Discussion -- Lawton Acres ITEM I: NEW BUSINESS 1. Bills to be Ratified 2. Approval of Purchase Orders Exceeding $2,500 3. *Ordinance No. 2092-2005 -- Increasing Estimated Revenues and Appropriations by $25,000 in the Senior Center Kitchen Capital Project. 4. *Ordinance No. 2093-2005 -- Amending KMC 14.20.230(g) to Include an Exemption for Certain State Approved Relative Day Care Providers. 5. *Ordinance No. 2094-2005 -- Amending KMC 14.20.320(b) Adding a Definition of "Condominium." 6. *Ordinance No. 2095-2005 -- Increasing Estimated Revenues and Appropriations by $650 for an Increase in Federal Grant for Wetlands Protection. 7. *Ordinance No. 2096-2005 -- Increasing Estimated Revenues and Appropriations by $2,740,085 in the Airport Land System Special Revenue Fund and the Parallel Taxiway Capital Project Fund. 8. Approval -- Kenai Golf Course/Amendment to Leases, Parcels A and B (Increase in Fees and Extension of Expiration Dates) 9. Approval -- Consent to Sublease -- SOAR International Ministries, Inc. to Peninsula Aircraft Wash Detail Service / Lot 3, Block 1, General Aviation Apron. 10. Approval -- Kenai Municipal Airport/Terminal Counter Space Lease Spaces 34 and 35 -- Grant Aviation. 11. Approval -- Termination of Kenai Municipal Airport Lease/Space 21 - Fischer and Associates, Inc. ITEM J: COMMISSION / COMMITTEE REPORTS 1. Council on Aging 2. Airport Commission 3. Harbor Commission 4. Library Commission 5. Parks & Recreation Commission 6. Planning 8. Zoning Commission 7. Miscellaneous Commissions and Committees a. Beautification Committee b. Alaska Municipal League Report c . Arctic Winter Games d. Stranded Gas Committee ITEM K: REPORT OF THE MAYOR ITEM L: ADMINISTRATION REPORTS 1 1. City Manager \ 1 2. Attorney 3. City Clerk ITEM M: DISCUSSION 1. Citizens (five minutes) 2. Council EXECUTIVE SESSION -- Possible settlement of Schmidt v. City of Kenai, et. al. ITEM N: ADJOURNMENT KENAI CITY COUNCIL - REGULAR MEETING APRIL 20 2005 7:00 P.M. KENAI CITY COUNCIL CHAMBERS htt www.ci.kenai.ak.us VICE MAYOR JOE MOORE, PRESIDING MTII MM70 ITEM A: CALL TO ORDER Vice Mayor Moore called the meeting to order at approximately 7:00 p.m. in the Council Chambers in the Kenai City Hall Building. A-1, PLEDGE OF ALLEGIANCE Mayor Porter led those assembled in the Pledge of Allegiance. A-2., ROLL CALL Roll was taken by the City Clerk. Present were: James N. Butler, III Joe Moore, Vice Mayor Cliff Massie Rick Ross Absent was: Pat Porter, Linda Swarner, and Blaine Gilman A quorum was present. A-3. AGENDA APPROVAL Vice Mayor Moore requested the following changes to the agenda: ADD TO: L-1, City Manager Report • 4/20/05 Patrick S. Fitzgerald project status letter re: Kenai River Bluff Erosion Study/Project. • 4/ 19/05 B. Frates email relating to the Arctic Winter Games time line for upgrades at Kenai Multipurpose facility. • 4/ 19/05 A. Varner Mid -Month Department Head report. MOTION: Council Member Ross MOVED for approval of the agenda with the additions listed and Council Member Massie SECONDED the motion. There were no objections. SO ORDERED, A-4, CONSENT AGENDA KENAI CITY COUNCIL MEETING APRIL 20, 2005 PAGE 2 MOTION: Council Member Ross MOVED for approval of the consent agenda as presented and Council Member Butler SECONDED the motion. There were no objections. SO ORDERED., ITEM B: SCHEDULED PUBLIC COMMENTS B-1., Kenai Middle School Students -- Kossack Korner Clothing Drive Melanie Watkins and members of the Kenai Middle School gave a brief presentation related to the opening of "Kossack Korner" at the school. They explained, Kossack Korner is a "place where middle school students in need can go to 'shop' for free clothing." The students encouraged council and audience members to deposit clothing to drop boxes located at the Kenai Middle School. Anonymity will be assured for students wanting to take advantage of shopping at the Korner. B-2. Jason Elson -- Donation of Land Jason Elson, P.O. Box 2712, Kenai -- Elson reviewed his letter included in the packet which indicated his parents, James and Joann Elson, have offered to donate Parcel No. KN0740004 T05N R 10W S08 Leo T. Oberts Subdivision, adjacent to the Unity Trail, to the city for recreational purposes and best used as a rest stop for travelers along Unity Trail. He noted, stipulations to the donation were also included in the letter, i.e. the property be used for recreational use only; if it is no longer required for recreation use, the property will be returned to the Elson's or their heirs; that any park or rest stop carry their family name and posted as such; and, the creation and use of the park or rest stop occur within three years or the property will be returned to the Elson's or their heirs. Elson stated he would need the city's assistance to prepare the necessary documents needed to go forward with the donation of property. A brief discussion took place in which council members thanked Elson and his parents for their generous donation. City Attorney Graves stated he would draft a resolution for consideration at the May 4, 2005 council meeting to formally accept the property and a deed incorporating the Elson's conditions of donation, i.e. re - conveyance, reversionary clauses, etc. City Manager Snow stated administration would work out the details of the donation with Elson. ITEM C: UNSCHEDULED PUBLIC COMMENTS -- None. KENAI CITY COUNCIL MEETING APRIL 20, 2005 PAGE 3 ITEM D: REPORTS OF KPB ASSEMBLY, LEGISLATORS AND COUNCILS -- None. ITEM E: REPORTS OF KENAI CONVENTION & VISITORS BUREAU BOARD AND KENAI CHAMBER OF COMMERCE Roy Wells, 410 Lawton Drive, President, Kenai Chamber -- Wells gave a brief review of upcoming events at the Chamber, including the planning for the Fourth of July parade; welcoming Grant Aviation to Kenai; and, the expected formal adoption of the Kenai Economic Development Strategy document at their next board meeting. Vice Mayor Moore recognized Tim Dillion, General Manager, Arctic Winter Games. Tim Dillion, 109 North Tinker Lane, General Manager/Arctic Winter Games -- Dillion gave a brief report of activities taking place, including working on acquiring corporate sponsorships; merchandizing revenue received and offering the merchandise through their internet site, at the Kenai Airport, and other local businesses; addressing issues stated by International Arctic Winter Games; and, mandating to staff to keep purchases on the Peninsula as much as possible. { ITEM F: PUBLIC HEARINGS F-1. Ordinance No. 2087-2005 -- Amending KMC 23.40.030(fl to Change the Amount of Leave Time an Employee Who Works the Equivalent of a 56- Hour Work Week Must Take Per Year From 112 Hours to 80 Hours. MOTION: Council Member Ross MOVED for adoption of Ordinance No. 2087-2005 and Council Member Butler SECONDED the motion. F-la. Substitute Ordinance No. 2087-2005 -- Amending KMC 23.40.030(fl to Change the Amount of Leave Time an Employee Who Works the Equivalent of a 56-Hour Work Week Must Take Per Year From 112 Hours to 84 Hours and Lowering From 80 to 60 Hours Per Week the Amount of Leave Time That Must be Taken for Employees Working 40 Hours Per Week. MOTION TO SUBSTITUTE: - Council Member Ross MOVED to substitute Ordinance No. 2087-2005 (with the copy Fl-a, Substitute Ordinance No. 2087-2005). Council Member Butler SECONDED the motion. KENAI CITY COUNCIL MEETING APRIL 20, 2005 PAGE 4 There were no public comments. Vice Mayor Moore requested council's consideration of postponing action on the ordinance to the May 4, 2005 council meeting as he felt it warranted a fully council's discussion and action. MOTION TO POSTPONE: Council Member Butler MOVED to continue Ordinance No. 2087-2005 (the substitute) to May 4, 2005 and Council Member Massie SECONDED the motion. There were no objections. SO ORDERED, F-2, Ordinance No. 2088-2005 -- Amending KMC 23.30.110(b) and (c) to Change the Automobile Expense Mileage Rate From $.30 Per Mile to the Standard IRS Mileage Rate and Change the Per Diem Travel Expenses From $35.00 to $50.00 Per Day. MOTION: Council Member Massie MOVED for approval of Ordinance No. 2088-2005 and � Council Member Butler SECONDED the motion. There were no public comments. City Manager Snow was asked if these rate changes were incorporated into the draft budget and she reported the changes would be substantially absorbed by the way the draft budget was presented. VOTE: Butler Yes Porter Absent Moore Yes Swarner Absent Massie Yes Ross Yes Gilman Absent MOTION PASSED UNANIMOUSLY. F-3., Ordinance No. 2089-2005 -- Replacing KMC 4 to Adopt: 1) the International Building Code, 2003 Edition of the International Code Council; 2) the International Property Maintenance Code, 2003 Edition of the International Code Council; 3) the International Mechanical Code, 2003 Edition of the International Code Council; 4) the Uniform Plumbing Code, 2003 Edition of the International Association of Plumbing and Mechanical Officials; 5) the National Electrical Code, 2005 Edition of the National Fire Protection Association; 6) the International Fuel Gas Code, 2003 Edition of the International Code Council; 7) the International Residential Code, 2003 Edition of the International Code Council; and 8) the International Existing Building Code, 2003 Edition of the Y International Code Council. KENAI CITY COUNCIL MEETING APRIL 20, 2005 PAGE 5 MOTION: Council Member Massie MOVED for approval of Ordinance No. 2089-2005 and Council Member Ross SECONDED the motion. There were no public comments. Public Works Manager La Shot reported building permits issued after the effective date would be required to adhere to the new codes. Those permits issued prior to the effective date of the ordinance would be required to adhere to the current codes. VOTE: Butler Yes Porter Absent Moore Yes Swarner Absent Massie Yes Ross Yes Gilman Absent MOTION PASSED UNANIMOUSLY. 1 F 4. Ordinance No. 2090-2005 -- Amending KMC 8.05 to Adopt the 2003 International Fire Code, First Printing. MOTION: Council Member Butler MOVED for adoption of Ordinance No. 2090-2005 and Council Member Ross SECONDED the motion. There were no public comments. Fire Marshall Baisden explained the "local amendments" referred to in the body of the ordinance was to add local restrictions the state code does not include, i.e. placement of fire hydrants, etc. He noted, there were no major changes to the local amendments though there were minor changes to definitions (snow obstructions, false alarms, etc.) . VOTE: Butler Yes Porter Absent Moore Yes Swarner Absent Massie Yes Ross Yes Gilman Absent MOTION PASSED UNANIMOUSLY. KENAI CITY COUNCIL MEETING APRIL 20, 2005 PAGE 6 F-5. Ordinance No. 2091-2005 -- Amending KMC 23.55.030(b)(2) to Add Qualification Pay of $300 for Fire Fighters Who Qualify as Fire Apparatus Operators. MOTION: Council Member Butler MOVED for adoption of Ordinance No. 2091-2005 and Council Member Massie SECONDED the motion. There were no public comments. Vice Mayor Moore requested council's consideration to postpone action on Ordinance No. 2091-2005 in order for it receiving the full council's review and action. MOTION TO TABLE: Council Member Ross MOVED to table Ordinance No. 2091-2005 to May 4, 2005 and Council Member Massie SECONDED the motion. There were no objections. SO ORDERED. } F-6. Resolution No. 2005-12 -- Transferring $3,372 in the General Fund for a New Ice Machine at the Senior Center. MOTION: Council Member Massie MOVED for approval of Resolution No. 2005-12 and Council Member Butler SECONDED the motion. There were public or council comments. VOTE: Council Member Ross requested UNANIMOUS CONSENT. There were no objections. SO ORDERED. F-7, Resolution No. 2005-13 -- Transferring $5,400 in the Airport Terminal Enterprise Fund for Personnel Services. MOTION: Council Member Butler MOVED to adopt Resolution No. 2005-13 and Council member Ross SECONDED the motion. There were no public comments. Snow reported, the need for the transfer existed due to additional snow removal, plowing and sanding during the winter. -, KENAI CITY COUNCIL MEETING APRIL 20, 2005 PAGE 7 VOTE: Butler Yes Porter Absent Moore Yes Swarner Absent Massie Yes Ross Yes Gilman Absent MOTION PASSED UNANIMOUSLY. F-8. Resolution No. 2005-14 -- Supporting the Efforts of the Kenai Economic Development Strategy (KEDS) by Directing the City Administration to Appoint a KEDS Steering Committee Member and to Continue its Close Work With the KEDS Working Group. MOTION: Council Member Ross MOVED for adoption of Resolution No. 2005-14 and Council member butler SECONDED the motion. There were no public comments. Ross acknowledged the Group's efforts in formulating the report; council and public's opportunity to review and offer suggestions for changes, etc.; and the city's intention to continue working with the Group. VOTE: Council Member Butler requested UNANIMOUS CONSENT. There were no objections. SO ORDERED, F-9, Resolution No. 2005-15 -- Awarding a Contract to Kustom Signals Inc. for a Speed/Message Trailer for the Total Amount of $26,714. MOTION: Council Member Massie MOVED for approval of Resolution No. 2005-15 and Council Member Butler SECONDED the motion. There were no public comments. It was noted, 90% of the cost for the trailer was covered by grant funding. VOTE: Council Member Butler requested UNANIMOUS CONSENT. There were no objections. SO ORDERED. KENAI CITY COUNCIL MEETING APRIL 20, 2005 PAGE 8 F-10. 2005 Liquor License Continuance WITHDRAWAL OF PROTEST -- Alaskalanes Bowling Center. Approved by consent agenda. ITEM Cir! MTNTTTF.q G-1, Regular Meeting of April 6, 2005 -- Approved by consent agenda. ITEM H: OLD BUSINESS H-1. Discussion -- Lawton Acres Moore suggested the issue be continued to the May 4, 2005 meeting in order for the full council to be included in the discussion and to hear any comments from the public. The public was invited to comment, however no public comments were offered. � Council had no objections to continuing the discussion to the May 4 meeting agenda. BREAK TAKEN: 7:40 P.M. BACK TO ORDER: 7:51 P.M. ITEM I: NEW BUSINESS I-1. Bills to be Ratified MOTION: Council Member Butler MOVED to ratify the bills and Council Member Massie SECONDED the motion. There were no objections. SO ORDERED. I-2. Approval of Purchase Orders Exceeding $2,500 MOTION: Council Member Massie MOVED to approving the purchase orders exceeding $2,500 and Council Member Ross SECONDED the motion and requested UNANIMOUS CONSENT. There were no objections. SO ORDERED, F-3. Ordinance No. 2092-2005 -- Increasing Estimated Revenues and Appropriations by $25,000 in the Senior Center Kitchen Capital Project. } Introduced by consent agenda. KENAI CITY COUNCIL MEETING APRIL 20, 2005 PAGE 9 F-4. Ordinance No. 2093-2005 -- Amending KMC 14.20.230(g) to Include an Exemption for Certain State Approved Relative Day Care Providers. Introduced by consent agenda. F-5. Ordinance No. 2094-2005 -- Amending KMC 14.20.320(b) Adding a Definition of "Condominium." Introduced by consent agenda. F-6. Ordinance No. 2095-2005 -- Increasing Estimated Revenues and Appropriations by $650 for an Increase in Federal Grant for Wetlands Protection. Introduced by consent agenda. F-7. Ordinance No. 2096-2005 -- Increasing Estimated Revenues and Appropriations by $2,740,085 in the Airport Land System Special Revenue Fund and the Parallel Taxiway Capital Project Fund. Introduced by consent agenda. F-8. Approval -- Kenai Golf Course/Amendment to Leases, Parcels A and B (Increase in Fees and Extension of Expiration Dates) Snow referred to memoranda included in the packet relating to the amendments to increase fees at the golf course and to extend the expiration dates of the lease agreements. She noted, administration recommended approval of the lease amendments. MOTION: Council Member Ross MOVED to approve the lease amendments and Council Member Massie SECONDED the motion. Council Member Massie noted the documents did not refer to an increase in the cost of a season pass as he had understood would be increased. Snow reported, administration did not receive any information related to increase to season pass fees. Because it was believed an increase in season pass fees would also require council approval, Attorney Graves stated he would research the lease and report back to council on the issue. KENAI CITY COUNCIL MEETING APRIL 20, 2005 PAGE 10 Council Member Butler reported his potential conflict of interest as he and Attorney Rick Baldwin (representing the lessee) are law partners. Attorney Graves suggested, in order to protect the council, he believed a conflict should be declared and the issue continued to the next meeting. He noted, this would also allow administration time to respond to the season pass issue. MOTION TO CONTINUE: Council Member Ross MOVED to continue the Golf Course lease amendments to the May 4, 2005 council meeting and Council Member Massie SECONDED the motion. There were no objections. SO ORDERED, Approval -- Consent to Sublease -- SOAR International Ministries, Inc. to Peninsula Aircraft Wash Detail Service/Lot 3, Block 1, General Aviation Apron. MOTION: Snow referred to information included in the packet, noting there was a previous sublease with Kenai Express for Lot 3, Block 1 GAA, however it had expired. She added, the sublease would be with Peninsula Aircraft Wash Detail Service, a new business to the area. Public Works Manager La Shot noted the company would be using environmentally friendly products and because the washing would be done outdoors, there were no floor drain, sewer system, or drainage to the Float Plane Basin concerns. MOTION: Council Member Ross MOVED to authorized the sublease to Peninsula Aircraft Wash Detail Service and Council Member Massie SECONDED the motion. Council Member Ross requested UNANIMOUS CONSENT. There were no objections. SO ORDERED. I-10. Approval -- Kenai Municipal Airport/Terminal Counter Space Lease Spaces 34 and 35 -- Grant Aviation. Snow referred to information included in the packet which indicated Grant Aviation would be conducting scheduled passenger service between Kenai and Anchorage starting May 15, 2005; a standard lease with a one-year term was being prepared; and required insurance documentation would be provided by Grant Aviation. MOTION: KENAI CITY COUNCIL MEETING APRIL 20, 2005 PAGE 11 Council Member Massie MOVED to approve the Terminal Counter Space lease of spaces 34 and 35 to Grant Aviation and Council Member Butler SECONDED the motion. Council Member Butler stated his concern Grant Aviation would not request termination of their lease after the busy summer season. He added, he believed the city should make it clear to the lessee they would be making a one-year commitment and he would not entertain terminating the lease early. VOTE: Council Member Ross requested UNANIMOUS CONSENT. There were no objections. SO ORDERED. I-11. Approval -- Termination of Kenai Municipal Airport Lease/Space 21 - Fischer and Associates, Inc. Snow referred to a memorandum and letter included in the packet in which Dottie Fischer of Fischer and Associates, Inc. requested to terminate her lease of Space 21. She noted, at the time she signed the lease, it was not known Grant Aviation's commuter service would begin to operate in Kenai. Since she wanted to use the space to operate her small charter service, she believed the Grant Aviation operation would create a financial hardship for her business. Snow also noted, Fischer had painted the area, will repaint the area, and had not yet moved into the space. Snow also reported the Arctic Winter Games had discussed using Space 21 with the Airport Manager and the Petry's (Wings Cafe lessees) for a display area and later, move other Games materials in there. She explained, if council approves that use, a request for proposals would not be necessary. MOTION: Council Member Butler MOVED to accept the request for termination of the lease for Space 21 to Fischer and Associates, Inc. and Council Member Massie SECONDED the motion. Ross asked if the lease would become effective the end of April and asked if the lease was current through the end of April. Snow stated she was not sure, without checking, when the Wings lease ended and Fischer's lease was to begin. Ross stated he would like to have that information available before acting on the termination and suggested the issue be continued at the May 4, 2005 council meeting. MOTION: KENAI CITY COUNCIL MEETING APRIL 20, 2005 PAGE 12 Council Member Ross MOVED to continue the action on the Termination of Kenai Municipal Airport Lease/Space 21 - Fischer and Associates, Inc. and Council Member Butler SECONDED the motion. There were no obj ections. SO ORDERED. ITEM J: COMMISSION/ OMMITTEE REPORTS J-1. Council on Aging -- No report. J-2. Airport Commission -- Snow reported, at its last meeting, the Airport Commission recommended the city go ahead with plans to develop the taxi lane access to Tract A-1 (Tulin application to lease Tract A-1 for development of a hangar) , procure a preliminary design and cost estimate. With the preliminary design and cost estimate, the information could be provided to FAA and possibly fund the project out of the terminal access project, then bring that information, including the cost estimate, to council before proceeding with the work. She added, if there were no objections from council, that would be how administration would proceed. It was noted this not the same property as that property Mr. Spizak was interested in developing. No objections from council were stated. J-3. Harbor Commission -- The April meeting was cancelled. J-4. Library Commission -- No report. J-5. Parks & Recreation Commission -- Moore noted, a special meeting was scheduled for April 21 to further discuss the proposed Section 36 project. J-6. Planning & Zoning Commission -- Moore reported the minutes of the April 13 meeting were included in the packet. J-?. Miscellaneous Commissions and Committees J-?a. Beautification Committee -- No report. J-?b. Alaska Municipal League Report -- No report. J-?c. Arctic Winter Games -- Parks & Recreation Director Frates reported the Arctic Winter Games Host Society applied for $650,000 and $200,000 is to be used for improvements to the multipurpose facility. Moore asked if they had applied for another grant through the Department of Transportation for improvements at the Sports Center. Mr. Dillion (AWG General Manager) stated, from the audience, he would research the question and report back. KENAI CITY COUNCIL MEETING APRIL 20, 2005 PAGE 13 J-7d, Stranded Gas Committee -- Ross reported the next teleconferenced meeting would be held on April 27. He also noted, he would be attending another Agrium meeting on April 21. ITEM K. REPORT OF THE MAYOR Ross referred to the draft letter relating to SB 158 (prohibiting the imposition of municipal sales and use taxes on state construction contracts and certain subcontracts) which was included in the packet. Ross asked if the prohibition would apply to any sales in the city. Attorney Graves stated he would research the bill and report back because the city would not want any purchases under a contract to be exempt of sales tax. ITEM L: ADMINISTRATION REPORTS City Manager -- City Manager Snow reported the following: • Referred to the project status letter from Mr. Fitzgerald relating to the Kenai River Bluff Erosion Study, noting the draft reconnaissance report had been prepared and would be forwarded for the city's review in July, 2005. Snow explained, she requested Fitzgerald to attend a future council meeting to discuss the issue with council. • She received a request for a resolution of support for the Borough Comprehensive Plan to bring to council for consideration at its May 4 meeting. A copy of the Plan was distributed to council for review, along with internal review notes. Council Member Butler requested a representative from the Borough attend the council meeting to discuss the Plan with council prior to their consideration of the resolution. • Referred to Andy Varner's monthly report which was distributed to council at the beginning of the meeting. • Department head monthly reports were included in the packet. • Requested guidance from council related to the Arctic Winter Games timeline document which was distributed to council at the beginning of the meeting. She explained, the timeline was provided to Parks 8s Recreation Director Frates and she discussed it with Dale Bagley, President of the AWG Host Society. Snow stated, Bagley indicated to her, the AWG did not have the $200,000 in hand for making improvements to the multipurpose facility, which had been indicated in the past to be available for that purpose; a bill is before the Alaska Legislature requesting $650,000; if the $650,000 is provided by toe Legislature and the Governor signs the bill, it will take several months for the money to become available; the improvements to the facility will need to be completed by the end of October; and, Bagley requested the city's consideration of fronting the costs to make the improvements (through a capital project) and enter into an agreement with the Host Society for reimbursement of the funds upon completion of the work. KENAI CITY COUNCIL MEETING APRIL 20, 2005 PAGE 14 Snow added, she discussed the situation with City Attorney Graves and added, an agreement is not a guarantee of reimbursement. She suggested an ordinance be prepared for council's consideration to appropriate the funds as a forum to discuss the issue more fully and at the same time, administration could work with the Host Society to prepare the agreement. Discussion followed in which Butler stated, unless a specific appropriation could be assured by the local representative, he believed it too premature for the city to commit to funding the improvements and added, he did not want to cut a deal on an "if." Ross suggested going forward with the ordinance, including two public hearings, and delay consideration of the ordinance until the first meeting in June which would allow enough time to know what legislature would be taken. At that meeting, representatives of the AWG and/or the Borough could be available to testify and offer any documentation they may have to secure the forward funding. Moore stated his concern the AWG is counting on the Legislature to fund the $200,000. He agreed with Ross and Snow to bring forward an ordinance to put the issue on the table, with two public hearings, with representatives available for the discussion, and copies of the proposed agreement. Council consensus was to bring forward an appropriation ordinance to forward fund the project. Attorney Graves stated his concerns the council be aware an agreement could be signed and the city could still not be reimbursed. Ross stated, bringing the ordinance forward would be a means to bring the discussion forward. He added, bringing the ordinance forward would not mean any of the council would necessarily vote in favor of the appropriation as he would not if it meant the city would not be reimbursed. Tim Dillion, Arctic Winter Games -- Stated he understood the council's concerns and he would discuss the issue with the board at its meeting in the morning and find a solution. Dillion added, because he would be out of state until May 10, the issue would be carried by the Board; the Society had received several different grants for different projects for the Games; and, he understood the $200,000 for the multipurpose facility improvements was part of the $650,000 received. Butler stated his concern the bill working through the Legislature indicating funds to come to the City of Kenai for the improvements not interfere with other legislative funding requests made by the City of Kenai. L-20 Attorney -- Attorney Graves referred to his memorandum included in the packet regarding the Highland Tank v. Bankers Standard class action suit related to � KENAI CITY COUNCIL MEETING APRIL 20, 2005 PAGE 15 CIGNA refusing to pay workers' compensation dividends. The memorandum noted, the case was settled and the city's award would be $66,293. L-3. City Clerk -- No report. ITEM M: DISCUSSION M-10 Citizens -- None. M-2. Council -- None. EXECUTIVE SESSION -- Possible settlement of Schmidt v. City of Kenai, et. al. MOTION: Council Member Ross MOVED to convene in an executive session of the council concerning matters recognizing attorney/client confidential privilege in the case of Schmidt versus the City of Kenai and would like the City Attorney, City Manager and City Clerk to attend. Council Member Butler SECONDED the motion. Council Member Massie requested to be excused from the executive session as he believed he could have a conflict of interest due to his and Ms. Schmidt's involvement in litigation currently in court. He suggested he possibly should not be involved in her case. Attorney Graves stated he was aware of the lawsuit but did not know the details of the relationship between Massie and Ms. Schmidt and did not want to discuss those details. He added, the settlement offer would be open until April 21 and the shortage of counselors would make it difficult to make the deadline of the offer, though he could seek an extension. Moore asked the ramifications of a conflict and Graves explained, the ability to waive a conflict is available with disclosure. He added, council was aware of Mr. Massie being a plaintiff in a related lawsuit, though related spatially and not directly to this issue. Graves stated he had no objection to having Massie attending the executive session, noting it was good Mr. Massie disclosed his potential conflict, however, he believed council could waive the conflict. Ross stated he agreed with Graves as did Butler and Moore. VOTE: Butler Yes Porter Absent Moore Yes Swarner Absent Massie Yes Ross Yes KENAI CITY COUNCIL MEETING APRIL 20, 2005 PAGE 16 Gilman Absent MOTION PASSED UNANIMOUSLY. EXECUTIVE SESSION: 8:44 P.M. BACK TO ORDER: 8:55 P.M. Council Member Ross reported the council met in executive session to discuss the offer in the case of Schmidt versus Kenai. MOTION: Council Member Ross MOVED to accept the settlement offer in Schmidt v. Kenai and that offer is that Ms. Schmidt's appeal would be dismissed and each side would bear their own costs and attorney's fees. Council Member Butler SECONDED the motion. Butler asked if the case would be dismissed with prejudice and Council Member Ross answered yes. VOTE: Butler Yes Porter Absent Moore Yes Swarner Absent Massie Yes Ross Yes Gilman Absent MOTION PASSED UNANIMOUSLY. ITEM N: ADJOURNMENT The meeting adjourned at approximately 8:56 p.m. Minutes transcribed and prepared by: ex4�; , C111. Carol L. Freas, City Clerk APPROVED BY COUNCIL fI T Y C L EW-`