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HomeMy WebLinkAbout2005-08-03 Council Minutes�\ AGENDA KENAI CITY COUNCIL - REGULAR MEETING AUGUST 3, 2005 7:00 P.M. KENAI CITY COUNCIL CHAMBERS htt : vwcrv�r. c 0 kenai. ak. u s 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) ITEM C: UNSCHEDULED PUBLIC COMMENTS (3 minutes) I 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. 2107-2005 -- Increasing Estimated Revenues and Appropriations in the Senior Citizen Special Revenue Fund and the Senior Center Kitchen Capital Proj ect Fund for Kitchen Remodel. (Clerk's Note: Ordinance No. 2107-2005 was substituted and postponed at the July 20, 2005 council meeting. A motion to adopt the ordinance is on the table.) 2. Ordinance No. 2109-2005 -- Increasing Estimated Revenues and Appropriations by $51,491 in the General Fund for a Juvenile Justice Grant From the State of Alaska to be Passed Through to the Boys and Girls Club of the Kenai Peninsula. 3. Ordinance No. 2110-2005 -- Finding that Certain Foreclosed Property, Described as Lot 1, Block 1, Thompson Park Subdivision Addition No. 1, 3920 Togiak Street, (Parcel No. 049-130-14) is Not Needed for Public Purpose and May be Sold. 4. Resolution No. 2005-36 -- Approving a Contract to Blazy Construction, Inc. for the Project Entitled Kenai Senior Center Kitchen Addition/Renovation - 2005 for the Total Amount of $36 1 1000. (Clerk's Note: Resolution No. 2005-36 was postponed from July 20, 2005 council meeting. A motion to approve the resolution is on the table.) 5. Resolution No. 2005-37 -- Authorizing the Exchange of 93.13 Acres of Property Owned by the City of Kenai and Valued at $90,000 for $10,000 Plus a 6.42-Acre Parcel Owned by The Conservation Fund and Valued at $80,000. ITEM G: MINUTES 1. *Regular City Council Meeting of July 20, 2005. 2. *Special Council Meeting of July 15, 2005. ITEM H: OLD BUSINESS 1. Discussion -- Conoco/Phillips Multipurpose Facility Naming Proposal. ITEM I: NEW BUSINESS 1. Bills to be Ratified ' 2. Approval of Purchase Orders Exceeding $2,500 3. *Ordinance No. 2111-2005 -- Increasing Estimated Revenues and Appropriations by $6,512.22 in the General Fund for Donations Made to the Officer John Watson Memorial Fund to be Used for the Town Clock. 4. *Ordinance No. 2112-2005 -- Amending KMC 14.22.010 to Allow Seasonal and Temporary Food Service as an Allowed Use. 5. *Ordinance No. 2113-2005 -- Amending the Land Use Table at KMC 14.22.010 to Allow Retail Businesses Such as Gift Shops and Coffee Shops in the Education Zone as a Secondary Use. 6. *Ordinance No. 2114-2005 -- Amending the Kenai Municipal Code by Adding 22.05.105 Entitled "Temporary Airport Land Sale Moratorium" to Impose a Temporary Moratorium on the Sale of City Lands Within a Proposed Airport Reserve Zone, With the Exception That This Moratorium Shall Not Apply to Lands Already Leased With a Right of Purchase. 7. Approval -- Special Use Permit/ Kenai Rotary -- Big Tonka Toy Event/Industry Appreciation Picnic -- Soccer Field Improvements 8. Discussion -- FY 2006 Designated Legislative Grants. (Clerk's Note: This item was postponed from the July 20, 2005 council meeting.) 8. Discussion -- FY 2006 Designated Legislative Grants (Clerk's Note: This item was postponed from the July 20, 2005 council meeting.) 9. Discussion -- Schedule Strategic Planning Session 1. 2. 3. 4. 5. 6. 7. ITEM K• 1. 2. 3. (Clerk's Note: This item was postponed from the July 20, 2005 council meeting.) COMMISSION / COMMITTEE REPORTS Council on Aging Airport Commission Harbor Commission Library Commission Parks 8. Recreation Commission Planning & Zoning Commission Miscellaneous Commissions and Committees a. Beautification Committee b. Alaska Municipal League Report C. Arctic Winter Games d. Stranded Gas Committee REPORT OF THE MAYOR ADMINISTRATION REPORTS City Manager Attorney City Clerk DISCUSSION 1. Citizens (five minutes) 2. Council EXECUTIVE SESSION -- Personnel Matter/Separation Agreement of Former City Manager. ITEM N: ADJOURNMENT KENAI CITY COUNCIL - REGULAR MEETING AUGUST 3, 2005 7:00 P.M. KENAI CITY COUNCIL CHAMBERS htt : www.ci.kenai.ak.us MAYOR PAT PORTER, PRESIDING MINUTES ITEM A: CALL TO ORDER Mayor Porter 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: Joe Moore, Vice Mayor Linda Swarner Cliff Massie Rick Ross Blaine Gilman James N. Butler, III Pat Porter, Mayor A quorum was present. A-3. AGENDA APPROVAL Mayor Porter requested the following changes to the agenda: ADD TO: Item F-1, Ordinance No. 2107-2005 -- Letters of support from Isabelle's Fine Catering and Charlotte's Restaurant. SUBSTITUTE: I-2, Substitute Purchase Orders Over $2,500 (addition of a purchase order to Northern Security Supply for ammunition). ADD TO: J-5, Parks & Recreation Commission Report -- Letter of resignation from Mike Baxter POSTPONE TO 8/ 17/05: Item H-1, Discussion -- Conoco/Phillips Multipurpose Facility Naming Proposal. Attorney Graves explained, postponement of Item H-1 would allow time for him to review language related to indemnification the Conoco/Phillips representatives forwarded to him late in the afternoon. KENAI CITY COUNCIL MEETING AUGUST 3, 2005 PAGE 2 MOTION: Council Member Butler MOVED for adoption of the agenda as amended and Council Member Swarner SECONDED the motion. VOTE: Moore Yes Swarner Yes Massie Yes Ross Yes Gilman Yes Butler Yes Porter Yes MOTION PASSED UNANIMOUSLY. A-4. CONSENT AGENDA MOTION: Council Member Moore MOVED for approval of the consent agenda as presented and requested UNANIMOUS CONSENT. Council Member Swarner SECONDED the motion. There were no objections. SO ORDERED. ITEM B: SCHEDULED PUBLIC COMMENTS -- None. ITEM C: UNSCHEDULED PUBLIC COMMENTS -- None. ITEM D: REPORTS OF KPB ASSEMBLY, LEGISLATORS AND COUNCILS -- None. ITEM E: REPORTS OF KENAI CONVENTION & VISITORS BUREAU BOARD AND KENAI CHAMBER OF COMMERCE Maya Renken, Director, Kenai Convention & Visitors Bureau -- Renken offered a brief report of activities and events taking place at the Center. She also noted they were pursuing funding ideas for the renovation of the K-6 and are including the renovation of a set net skiff as well. ITEM F: PUBLIC HEARINGS F-1. Ordinance No. 2107-2005 -- Increasing Estimated Revenues and Appropriations in the Senior Citizen Special Revenue Rind and the Senior Center Kitchen Capital Proj ect Fund for Kitchen Remodel. KENAI CITY COUNCIL MEETING AUGUST 3, 2005 PAGE 3 (Clerk's Note: Ordinance No. 2107-2005 was substituted and postponed at the July 20, 2005 council meeting. A motion to adopt the ordinance is on the table.) Acting City Manager Kopp offered the following update: • Administration first reviewed the need for the project in 2004. • A grant application was developed and forwarded to the Rasmussen Foundation and several other grant -providing agencies. • The total cost of the project at the time (including design drawings, construction, bid process, etc.) was found to be approximately $28 1,000. • Later in 2004, it was learned grant funds would be awarded to fund the project. • At a council work session related to legislative priorities, the kitchen remodel project was included in the preliminary list as an administrative priority. • Reasons for administration including the remodel as a priority were the facility's use as a city/community catering resource and senior collection point for meal programs; the meals program has increased dramatically since the kitchen was first constructed; and, the original design did not provide the amount of work space needed in toda 's environment(lack of needed electrical outlets need to se arate Y � p used, soiled dishes from clean dishes, need for additional refrigeration for caterers', use, etc.). • The project went to bid in early 2005; two responsive bids were returned. • An increase of construction costs were 25%, but was consistent with the market due mostly to cost of materials. • Review of the materials included in the remodel found no extravagances. • Administration reviewed grant funds available and found two options indicated in memoranda from Finance Director Semmens, which were included in the packet (use of Rasmussen funding which would expire the end of November, 2005 and would require reapplication after the expiration date) . • The two options would be to delay the project and re -bid later or fund the project from other sources (from the Senior Citizen Fund, which would have enough left in the fund to cover other grant shortfalls if necessary or from the Capital Improvements Grant recently received from the state) . Kopp added, when reviewing whether the project could be scaled back, they found it could be done, but doing so would mean the project would not be done well. Kopp noted, if council felt the project was a high enough priority, administration recommended using the funding approach offered in the ordinance. The public hearing was opened. Buck Steiner, 381 Senior Court -- Stated his support of the project. KENAI CITY COUNCIL MEETING AUGUST 3, 2005 PAGE 4 Glenn Clifford, P.O. Box 245, Kenai -- Noted the facility was remodeled twice to enlarge the seating capacity; the kitchen is inadequate for today's purpose; and, the kitchen is not a safe environment. Joanna Hollier, 381 Senior Court, #305 -- Stated she volunteers and always supports good projects; believes in this project; and the extra room will be very helpful. Melissa Bailey, P.O. Box 756, Kenai -- Stated she is the head cook at the Center; the facility is too small; there were insufficient electrical outlets; additional refrigeration and freezer space was needed; and, all the upgrades would provide for a more sanitary and safer environment. The public hearing was closed and council discussion took place. Council Member Swarner stated she agreed with the need for the project, however did not support using the state grant funds; she would prefer using funds from the Senior Citizen Fund; noted she had requested a list of anticipated grant matches during the budget process; and,.her experience with Rasmussen grants was they expect local matches. Council Member Ross stated no request for match funding was made during the budget process and he did not recall plans being provided for review. Kopp noted, there was no request for matching funds as it was expected to use grant funding to cover the cost of the project. Ross stated his concerns the council was not apprised of the cost which had now increased; he did not believe the project was discussed during budget work sessions; and council was now being asked to spend $200,000 of local funds to cover the project. Council Member Moore stated his agreement with Ross' comments and added, he did not support using the state grant funds for this purpose. Kopp noted, the December 6, 2004 work session packet included a two -page memorandum with the total costs, time lines, project need, the scope of the remodel project, however the plans were not included. Kopp also reported, the city was not requested to provide a match by the granting foundation. Finance Director Semmens noted, it was always anticipated monies would be used from the Senior fund; a state grant was awarded in 2002 for $40,000; funding was also received from the Rasmussen Foundation and Mental Health grants; another grant was requested from a local bank, but was not awarded; the problem arose when the construction bid came in $100,000 more than was expected; funds could be appropriated from the General Fund which had a designation for capital projects over $900,000 (no other project has been identified for use of these funds); and, the $100,000 needed in addition to the Senior Citizen Fund money could come from the General Fund with council's specification it come from the Capital Project Reserve. �KENAI CITY COUNCIL MEETING AUGUST 3, 2005 PAGE 5 Council Member Gilman requested council's support of the project and added, he had no preference as to the use of state grant funds or general fund monies; the process of funding may not have been done correctly, but the need was there; and, he would support the ordinance. MOTION: Council Member Swarner MOVED to amend Ordinance No. 2107-2005 by changing the estimated revenues from the state grant of $100,000 and instead from the General Fund Capital Projects Fund instead. Council Member Moore SECONDED the motion. VOTE ON AMENDMENT: Moore Yes Swarner Yes Massie Yes Ross Yes Gilman Yes Butler Yes Porter Yes MOTION PASSED UNANIMOUSLY. VOTE ON MAIN MOTION AS AMENDED: Moore Yes Swarner Yes Massie Yes Ross No Gilman Yes Butler Yes Porter Yes MOTION PASSED, F-2. Ordinance No. 2109-2005 -- Increasing Estimated Revenues and Appropriations by $51,491 in the General Fund for a Juvenile Justice Grant From the State of Alaska to be Passed Through to the Boys and Girls Club of the Kenai Peninsula. MOTION: Council Member Swarner MOVED for the adoption of Ordinance 2109-2005 and council Member Butler SECONDED the motion. There were no public comments. A brief discussion took place related to the city charging the grantee an administration fee and Kopp explained, the city would not charge a fee, but Finance Director Semmens would make sure the grantee would filing its reports, etc. in a timely manner. Several comments were made the city should consider charging administration fees for its involvement in pass -through grants. VOTE: KENAI CITY COUNCIL MEETING AUGUST 3, 2005 PAGE 6 Moore Yes Swarner Yes Massie Yes Ross Yes Gilman Yes Butler Yes Porter Yes MOTION PASSED UNANIMOUSLY. F-3. Ordinance No. 2110-2005 -- Finding that Certain Foreclosed Property, Described as Lot 1, Block 1, Thompson Park Subdivision Addition No. 1, 3920 Togiak Street, (Parcel No. 049-130-14) is Not Needed for Public Purpose and May be Sold. MOTION: Council Member Butler MOVED for adoption of Ordinance No. 2110-2005 and Council member Massie SECONDED the motion. There were no public or council comments. l VOTE: Moore Yes Swarner Yes Massie Yes Ross Yes Gilman Yes Butler Yes Porter Yes MOTION PASSED UNANIMOUSLY. F-4. Resolution No. 2005-36 -- Approving a Contract to Blazy Construction, Inc. for the Project Entitled Kenai Senior Center Kitchen Addition/ Renovation - 2005 for the Total Amount of $361,000. (Clerk's Note: Resolution No. 2005-36 was postponed from July 20, 2005 council meeting. A motion to approve the resolution is on the table.) There were no public comments. Moore reported Blazy Construction was a client of his, though he did not believe it was a conflict, and he intended to vote unless council felt otherwise. City Attorney Graves noted, it was his understanding Moore would not receive any direct benefit from the contract and therefore it was his opinion Moore's disclosure would cure any potential conflict and Moore could continue to vote on the issue. VOTE: KENAI CITY COUNCIL MEETING AUGUST 3, 2005 PAGE 7 Moore Yes Swarner Yes Massie Yes Ross Yes Gilman Yes Butler Yes Porter Yes MOTION PASSED UNANIMOUSLY. F-5, Resolution No. 2005-37 -- Authorizing the Exchange of 93.13 Acres of Property Owned by the City of Kenai and Valued at $90,000 for $10,000 Plus a 6.42-Acre Parcel Owned by The Conservation Fund and Valued at $802000. MOTION: Council Member Massie MOVED for approval of Resolution No. 2005-37 and Council Member Moore SECONDED the motion. There were no public or council comments. VOTE: Moore Yes Swarner Yes Massie Yes Ross Yes Gilman Yes Butler Yes Porter Yes MOTION PASSED UNANIMOUSLY. G-1, Regular City Council Meeting of July 20, 2005 -- Approved by consent agenda. G-2. Special Council Meeting of July 15, 2005 -- Approved by consent agenda. BREAK TAKEN: 7:43 P.M. BACK TO ORDER: 7:52 P.M. *Council Member Ross left the meeting at 7:43 p.m. ITEM H: OLD BUSINESS H-1. Discussion -- Conoco/ Phillips Multipurpose Facility Naming Proposal. Item was postponed to the August 17, 2005 council meeting. KENAI CITY COUNCIL MEETING AUGUST 3, 2005 PAGE 8 ITEM I: NEW BUSINESS I-1. Bills to be Ratified MOTION: Council Member Swarner MOVED to pay the bills and requested UNANIMOUS CONSENT. Council Member Massie SECONDED the motion. There were no objections. SO ORDERED. I-2. Approval of Purchase Orders Exceeding $2,500 MOTION: Council Member Moore MOVED to approve the purchase orders exceeding $2,500, the substitute. Council member Swarner SECONDED the motion and requested UNANIMOUS CONSENT. Moore questioned the increase to the purchase order to Kluge 8v Associates for the Senior Center expansion. Public Works Manager La Shot explained, the city waits until receiving construction bids and then increase the architect's contract for construction services. He noted, the amount was Kluge's original proposal for construction services and was included in the cost of the project. Butler noted six purchase orders related to the Arctic Winter Games (AWG). Kopp confirmed they were part of the reimbursement program with the AWG and the costs had been approved by AWG. VOTE: There were no objections. SO ORDERED. Ordinance No. 2111-2005 -- Increasing Estimated Revenues and Appropriations by $6,512.22 in the General Fund for Donations Made to the Officer John Watson Memorial Fund to be Used for the Town Clock. Introduced by consent agenda. I-4. Ordinance No. 2112-2005 -- Amending KMC 14.22.010 to Allow Seasonal and Temporary Food Service as an Allowed Use. Introduced by consent agenda. ^KENAI CITY COUNCIL MEETING AUGUST 3, 2005 PAGE 9 I-5. Ordinance No. 2113-2005 -- Amending the Land Use Table at KMC 14.22.010 to Allow Retail Businesses Such as Gift Shops and Coffee Shops in the Education Zone as a Secondary Use. Introduced by consent agenda. I-6. Ordinance No. 2114-2005 -- Amending the Kenai Municipal Code by Adding 22.05.105 Entitled "Temporary Airport Land Sale Moratorium" to Impose a Temporary Moratorium on the Sale of City Lands Within a Proposed Airport Reserve Zone, With the Exception That This Moratorium Shall Not Apply to Lands Already Leased With a Right of Purchase. Introduced by consent agenda. I-7. Approval -- Special Use Permit/Kenai Rotary -- Big Tonka Toy Event/Industry Appreciation Picnic -- Soccer Field Improvements Kopp noted, last year council approved the Kenai Soccer Club's use of the field at the old FAA property to use as a practice and play field due to the unavailability of borough fields. The Club used and maintained the field. Earlier in the week he met with Randy Daly, representing the Kenai Rotary Club, at the field. Daly explained the Rotary Club's desire to improve the land, bringing it to grade, adding topsoil and seeding it, without excavating, thereby enhancing the property for its future sale. The work would be done during the Rotary's Big Tonka Toy program to be held on Saturday, August 27 and coinciding with the Industry Appreciation Day picnic. He added, children would be able to use the equipment with adult supervision; an insurance policy satisfactory to administration was in place; and a special use permit for accomplishing the program was included in the packet for council's consideration. MOTION: Council Member Gilman MOVED for approval of the Special Use Permit and Council Member Massie SECONDED the motion. Mary Daly, 108 Deepwood Court, Kenai -- Daly stated she applauded the Rotary Club's desire to take on the project and for their volunteer work in the community. As a member of the soccer community she stated, it was very important to add fields for use as they will benefit the community's soccer program. Butler suggested adding "not" between 'venture' and 'created' in Term No. 4. Attorney Graves stated that would not be a problem. KENAI CITY COUNCIL MEETING AUGUST 3, 2005 PAGE 10 VOTE: Moore Yes Swarner Yes Massie Yes Ross Absent Gilman Yes Butler Yes Porter Yes MOTION PASSED UNANIMOUSLY. Randy Daley, 108 Deepwood Court, Kenai -- Daly thanked council for the approval of the Special Use Permit. He also reported the Rotary Club was hoping to make the Big Tonka Toy program an annual event and the Club would be willing to help in the development of the Section 36 fields. I-8. Discussion -- FY 2006 Designated Legislative Grants (Clerk's Note: This item was postponed from the July 20, 2005 council 1 meeting.) I Kopp noted the following: • Referred to information included in the packet which identified two legislative grant funds awarded, i.e. one for capital project improvements and one for road/sewer improvements. • Identified capital improvement projects as water system improvements, road and sewer improvements. • Noted a list of suggested street improvement projects included in the packet as city building parking lot updating; chipping and resealing of city streets; curb, gutters and paving, etc. • The list of projects was in no particular order and it would be a council decision as to how the grant funds should be used. • Recent communication from Alaska Department of Environmental Conservation (ADEC) informed the city of its eligibility for low interest loans which could be used for groundwater remediation at the shop area (this problem needs to be addressed to satisfy ADEC), along with $1.6 million available to address wellhouse problems. 0 If council would like to acquire a low -interest loan, a by -mail special election could be scheduled. • Recommended reviewing public building parking lots, high -use roads, and do some badly -needed upgrades with the road/sewer grant funds. • Recommended using the capital improvement funds for park and recreation projects which have been on hold for some time (water sprinkler at i Memorial Park, Municipal Park upgrades, etc.). KENAI CITY COUNCIL MEETING AUGUST 3, 2005 PAGE 11 Swarner stated her preference would be to proceed with paving of the streets identified by residents who had requested the service. City Clerk Freas noted, of the capital improvement list included in the packet, the only petition in progress was one received recently from residents of Set Net Drive; others had stated interest but not filed petitions; and, McCollum/Aliak submitted a petition more than a year prior but funds were not available to proceed with the project. Moore agreed, his intention would be to go forward with paving projects where requests had been received or interest had been indicated. In order to give administration direction with regard to use of the grant funds, a work session was scheduled for 6:00 p.m., August 16, 2005. Porter suggested contacting residents of the subdivisions interested in forming assessment districts of the work session. Council requested cost information for the sprinkler system, municipal park improvements, etc. I-9. Discussion -- Schedule Strategic Planning Session (Clerk's Note: This item was postponed from the July 20, 2005 council meeting.) Council scheduled the strategic planning session on August 20, 2005 from 9:00 a.m. to Noon. ITEM J: COMMISSION / COMMITTEE REPORTS J-1. Council on Aging -- Gilman reported the next meeting would be held Thursday, August 4, 2005. J-2, Airport Commission -- Swarner noted the following: • A Strategic Planning Report from the airport consultants was included in the packet. • The next meeting would be held on August 11, 2005. Also noted was the closure of the airport restaurant which was done as required by the lease. J-3. Harbor Commission -- Massie reported the August meeting was cancelled. J-4. Library Commission -- Library Director Jankowska reported there was no quorum for the meeting and the Commission had two vacant seats. J-5. Parks & Recreation Commission -- Moore reported the next meeting p g was scheduled for August 4. It was also noted the resignation of Mike Baxter had KENAI CITY COUNCIL MEETING AUGUST 3, 2005 PAGE 12 been received. The application of Darrell Hagen for appointment to the Commission was included in the packet. There were no obj ections to Mr. Hagen's appointment to the Commission. J-6. Planning & Zoning Commission -- Ross reported the minutes of the July 27 meeting were included in the packet. Due to Ross not being able to attend the August 10 meeting, Council Member Butler stated he would attend instead. J-7. Miscellaneous Commissions and Committees J-7a. Beautification Committee -- Swarner noted the next meeting would be held August 9, 2005. J-7b, Alaska Municipal League Report -- Swarner noted the Legislative Committee meeting would be held in Skagway. J-7c. Arctic Winter Games -- Parks & Recreation Director Frates reported a meeting would be held Thursday, August 11, 2005. J-7d, Stranded Gas Committee -- No report. ITEM K: REPORT OF THE MAYOR -- Mayor Porter noted the following: • Referred to information included in the packet related to "Exploring Kenai" and it was requested the topic be added to the strategic planning list of topics. • Industry Appreciation Day would be held August 27. • She made a presentation to the board of Realtors related to "Why do business in the City of Kenai?" ITEM L: ADMINISTR.ATION REPORTS City Manager -- Acting City Manager Kopp reported the following: • The dip net fishery season had ended; administration would be reviewing the fishery as far as management practices, etc. and a report would be developed. The report would first go to the Harbor Commission and then provided to Council which would probably be in October. • The Department of Fish & Game contacted administration and asked if the City would want to extend next year's dip net fishery by one week. Kopp added, the Department would like to extend the fishery as a part of the program management. • A special use permit was provided to the Hobby Shop to use a gravel pad on the Millennium Square property through the end of August for running remote control race cars. Their continued use of the area would also be reviewed. • The fuel price schedule at the dock was adjusted for sales to Copper River Seafoods. • Referred to his memorandum included in the packet related to the city Y manager search. Kopp stated he would have a proposed search and selection process, KENAI CITY COUNCIL MEETING AUGUST 3, 2005 PAGE 13 including a schedule for advertising, resume collection and review, etc. in the August 17 council packet. • Alaska Department of Environmental Conservation (ADEC) low interest loan program would be a topic at the strategic planning session. • Congratulated Airport Manager Cronkhite on her informative Chamber of Commerce presentation related to the economic impacts of the airport to the city. • A report was received from the Corps of Engineers related to the bluff erosion project. The report advances the city to the next round of studies for which funds were appropriated in the federal budget. He will have a more thorough report regarding the Corps report for the next packet. Moore requested a copy of the Corps report be forwarded to Senators Stevens and Murkowski. • Announced Library Director Jankowska had submitted her resignation and her last day of work would be September 10. He noted, Jankowska would be taking a position in New York state. Kopp added, he would be appointing an Acting Library Director and begin the director selection process. • Reviewed administrative structural changes to be made in the Fire Department with the shifting of some positions and filling of the Battalion Chief 1 position. Kopp added, there would be no new hires in taking this action, but it was hoped the department would run more efficiently and better allow for employees to take earned leave. • A grant in the amount of approximately $25 1,000 was awarded for the development of soccer fields on the Section 36 property. The development must take place between July 18, 2005 through September, 2007. The next council packet will include the State's letter of agreement. Kopp noted, the grant was a 50% match. • The Katmai Hotel has a buyer and Attorney Graves was reviewing the Assignment of Lease for consideration at the August 17 meeting. He added, the sale requirements would ensure the city will be paid for amounts owed to it. • He, Finance Director Semmens and Attorney Graves had been researching how to proceed with the formation of a city foundation. He noted, there were several options available, however their recommendation would be to structure the foundation as a separate entity from the city with the appointment of a foundation committee. The committee would not be a political arm of the city. Porter asked council if there were any objections for Attorney Graves to help facilitate the development of the foundation by-laws, etc. Council had no objections. • The process for selling six lots in Sterling, received in the Inlet Woods settlement, was proceeding forward with a new appraisal being ordered, etc. Swarner noted work being done at the Northgate Apartment complex and asked if a building a permit had been purchased. Public Works Manager La Shot reported they would either have a building permit or they were working with the Building Official. Moore referred to a memorandum from the Kenai Peninsula Hockey Association related to ice time availability which was distributed to council. Kopp reported he KENAI CITY COUNCIL MEETING AUGUST 3 2005 PAGE 14 discussed the concern with the contractors; learned their concern was working on the facility with ice in; this would be a tight schedule working with multiple contractors; having the ice in and working on the upgrades would be high risk. Porter noted the Planning & Zoning Commission minutes refer to the Code Enforcement Officer Report and requested the report be forwarded to council. L-2. Attorney -- Attorney Graves reported the annual electronic attachment request for unpaid traffic signs had been submitted to the State. This year, they were attempting to receive payment of $50,000 on 433 unpaid fines, but because they normally receive about 60% return, he expects to receive about $30,000. Graves accredited Legal Secretary Padilla and Finance Director Semmens for preparing the request. L-3. City Clerk -- Clerk Freas noted the following: • Candidacy petitions were available through August 15 for two, three-year term seats and one, one-year term seat. • A Board of Adjustment Hearing on the Doyle extraction conditional use permit would be held on August 17, 2005 beginning at 6:00 p.m. ITEM M: DISCUSSION M-1. Citizens -- None. M-2. Council -- Moore -- • Thanked Kopp for his informative report. • Suggested rental rates should be reviewed at the Senior Center due to the popularity of using the kitchen and the cost of the remodel. Swarner -- • Requested Administration consider charging a fee for pass - through grants to non -profits. She also requested information be gathered from other municipalities to this regard. • Announced the Kenai Peninsula Food Bank Soup Supper would be held August 26. Massie -- No comments. Gilman -- • Thanked council for their kinds words and condolences related to the recent death of his father, Don Gilman. • Announced he would not be running for reelection to council. Butler -- Thanked Library Director Jankowska for her time working with the CityHe noted he appreciated her contribution to h ' pp the City of Kenai. KENAI CITY COUNCIL MEETING AUGUST 3, 2005 PAGE 15 EXECUTIVE SESSION -- Personnel Matter/Separation Agreement of Former City Manager. MOTION: Council Member Butler MOVED to convene into an executive session of the council of the City of Kenai, concerning the personnel matters, specifically a separation agreement with the former city manager. He requested Attorney Graves be present. Council Member Moore SECONDED the motion. VOTE: Moore Yes Swarner Yes Massie Yes Ross Absent Gilman Yes Butler Yes Porter Yes MOTION PASSED UNANIMOUSLY. RECESSED TO EXECUTIVE SESSION: 8:55 P.M. RETURNED TO ORDER: 9 :20 P.M* Council Member Butler reported the council met in executive session to discuss a personnel matter relating to the separation agreement for the former city manager and reached a consensus and authorized the city attorney to provide an offer for the separation agreement to the former city manager's counsel and will be awaiting his response at his earliest convenience. ITEM N: ADJOURNMENT The meeting adjourned at approximately 9:26 p.m. Min�&s transc 'bprepared by: Carol L. Freas, dity Clerk AppRovEro By couNcn �*17 a 4 -- ,.w m4TE Cli'�' CLERK