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HomeMy WebLinkAbout1976-07-21 Council Minuteso' F " ' t• i n ii AGENDA REGULAR MEETING - KENAI CITY COUNCIL JULY 21, 1976 - 8:00 P.M. PUBLIC SAFETY BUILDING PLEDGE OF ALLEGIANCE A. ROLL CALL PAGE AGENDA APPROVAL B. PUBLIC HEARINGS 1. Ordinance No. 302-70. Amending Code to Provide Penalties/dumping of Sewage 1 2. Ordinance No. 303-76 - Appropriations to Capital Projects 2 3. 4. 5. C. PERSONS PRESENT SCHEDULED TO BE HEARD 1. Mr. Kyle Weaver. City of Kenai Director of Recreation 3 2. Mr. Bob Walker , Kenai Public Safety Auxiliary 3 3. Mr. A. L. Hudson 4 D. MINUTES 1. Minutes of the regular meeting of July 7. 1976 5 E. CORRESPONDENCE I. 2. F. OLD BUSINESS 1. Ordinance No. 304-76 - Regulation of Sales Tax for Retirement of Deficit 5 2. I 3. 4. 5. O. NEW BUSINESS 1. Bills to be paid, bills to be ratified 0 2, Resolution No. 76-33 - Transfer of Funds - Animal Control 7 S. Resolution No. 76-34 - Transfer of Funds - Recreation 7 1 4. Resolution No. 70-35 - Borough Foreclosed Parcel/Beaver Creek Subdivision 7 S. Resolution No. 76-36 - Transferring of Funds/Borough Foreclosed Parcel 7 S. Resolution No. 76-37 - Transferring of Funds - Legislative S 7. Acceptance of Aid - Petroleum Products S S. Assignment of Lease - Edward A. Ferguson to Yoshi and Ruth Shiohirs 9 9. Assignment of Lease - Robert T . and Norma Bielefeld to National Bank of Alaska 9 10. i 11. 12. 13. 14. 15. H. REPORTS 1. City Manager's Report 9 2. City Attorney's Report 10 S. Nayor's Report 10 4. City Clerk's Report t0 5. Finance Direotor's Report t9 S. Planning i Zoning Commission's Report 11 7. Kenai Peninsula Borough Assembly's Report 11 I. PERSONS PRESENT NOT SCHEDULED TO BE HEARD 1. Mr. Edward Ferguson S. EXECUTIVE SESSION i _,_yARil�,l�►.w..li .. R KENAI CITY COUNCIL - REGULAR MEETING JULY 21, 1976 - 8: 00 P.M. PUBLIC SAFETY BUILDING MAYOR JAMES A. ELSON, PRESIDING PLEDGE OF ALLEGIANCE A . ROLL CALL Present: Walter Sweet", Richard Morgan, Dan Whelan, Ed Ambarian, Tom Aekerly, A. L. Hudson, and James Elson. Absent: None AGENDA APPROVAL The Council unanimously approved the following additions and/or corrections to the agenda. C-2: Mr. Bob Walker, Kenai Public Safety Auxiliary C-3: Mr. A. L. Hudson Delete Item F-2: A. L. Hudson, Motion to Reconsider B: PUBLIC HEARINGS B-1: Ordinance No. $02-76 - Amending Code to Provide Penalties for Dumping of Sewage Mayor Elson read Ordinance No. 302-76, by title only as copies were made available to the public, "an ordinance of the Council of the City of Kenai amending the code of the City of Kenai to provide penalties for the dumping of sewage into a City man- hole without a permit". Mr. Phillip Aber, Acting City Manager, advised Council that the main change from last meeting when the ordinance had been brought before Council for consideration was in Section 17-76, "no person shall dump, deposit or in any other manner dispose of sewage or cesspool material into a City sewer manhole without first obtaining a written "Sanitary Waste Disposal Permit" from the City of Kenai. Such permits shall be issued without charge and shall expire on June 30th of each year" and in Section 17-77, "no person shall dump, deposit or in any other manner dispose of sewage or cesspool material into a City sewer manhole without having in his possession a valid "Sewage Dumping Ticket" issued within two hours of the dumping. The fee for each dump t`1dket shall be as established by the Council of the City of Kenai. Tickets shall be issued only to holders of valid permits". Mayor Elson opened the hearing to the public so that they could be heard. There being no comment from the public, the hearing returned to the Council table. 11 --4-e NOMMW KENAI CITY COUNCIL, REGULAR MEETING, JULY 21, 1976 PAGE 2 Mayor Elson inquired as to the violation of dumping outside of a City sewer manhole and was advised by Mr. Aber that this violation would be turned over to tho Dept. of Environmental Conservation for enforcement and would be considered polluting. Councilman Ambarian inquired if allowing people to dump in the City's system which is all ready overloaded -- would this not tax our system beyond its capabiilities? Mr. Aber advised that what is being dumped into our system to mostly in liquid form and also being dumped considerable distance from the Treatment Plant. Mr. Aber also advised that with regard to cleaning the screens on the manholes, etc., he had not determined what this would involve in costs, man power, etc. to the City as of this time. 1'I y Councilman Sweet in at this time. MOTION: Councilman Morgan moved, seconded by Councilman Hudson, for adoption of Ordinance No. 302-76, amending the code of the City of Kenai to provide penalties for the dumping of sewage into a City manhole without a permit. Motion passed unanimously by roll call vote. _ 8-2: Ordinance No. 303-76 - Appropriations to Capital Projects Mayor Elson read Ordinance No. 303-76, by title only as copies wore made available to the public. "An ordinance of the Council of the City of Kenai, Alaska, appropriating $14,203 to the Capital Projects Fund entitled "Animal Shelter" and increasing estimated revenues entitled "Federal Shared Revenue" by $14,203.11 y Mr. Aber explained that the City of Kenai is a recipient of federal shared revenue funds in the amount of $14,203 and these funds have been designated for the purchase or construction of an animal shelter. , r I Mayor Elam opened the meeting to the public for their comments. There being none, the Mayor returned the hearing to the Council table. MOTION: Councilman Ambarian moved, seconded by Councilman Whelan, for adoption of Ordinance No. 303-76, an ordinance of the Council of the City of Kenai, appropriating $14,203 to the Capital Projects fund entitled "Animal Shelter" and increasing estimated revenues entitled "Federal Shared Revenue" by $14,203. Motion passed unanimously by roll call vote. - - It _ .. .... I KENAI CITY COUNCIL, REGULAR MEETING, JULY 21, 1976 PACE 3 C. PERSONS PRESENT SCHEDULED TO BE HEARD C-1: Mr. Kyle Weaver, City of Kenai Director of Recreation Mr. Weaver explained his recreation program which to now underway and advised Council of the various scheduled activities. Mr. Weaver further advised that the program would run for six weeks this year and two weeks next June. Mr. Weaver stated his future plans included coordinating some special activities with various special interest groups (Senior Citizens, etc.) and was planning on introducing several programs such as fire arm safety classes, water programs, etc. which could be developed into a full-time program at some time in the future. Mr. Aber thanked Mr. Weaver for his outstanding efforts in putting together the recreation program for the City. C-2: Mr. Bob Walker - Kenai Public Safety Auxiliary Mr. Bob Walker, representing the Kenai Public Safety Auxiliary came before Council to express his groups appreciation in the support from the City and the Council during their fund raising event when the Auxiliary sponsored the circus. Mr. Walker advised that the Auxiliary had made a net profit of $1,298.00. Mayor Elson thanked Mr. Walker for his comments and requested that the Finance Director be given some type of accountability of the funds the group has raised through benefit drives, etc. Council discussion followed concerning the City's responsibility with regard to organizations of the City (Sr. Citizens, Public Safety Auxiliary, etc. ) and the monies derived from benefit drives. Councilmen Ambarian and Morgan stated they felt as these organizations had earned the money through efforts on behalf of their groups, the City should not have the authority of taking over these funds. Councilman Whelan stated he was under the impression that the Finance Director was to take over these special group funds in the case of co -mingling of funds with the City funds and co -mingling of materials with City owned materials, etc. Mayor Elson stated that the Finance Director merely acts as custodian of these funds and that these groups should at least report fund activities to the Council. Councilman Sweet stated he too agreed that they should furnish a report to the City, however, these individual organizations should be responsible for their own finances. Councilman Morgan suggested that a policy be established delineating the areas of rAannngibility. Mayor Elson agreed and stated that because of prior problems it was necessary that the City be very stringent and now there was a definite need for policy with regard to the fiscal responsibility of monies raised by these various groups through benefits, etc. r KENAI CITY COUNCIL. REGULAR MEETING. DULY 21, 1976 PAGE 4 With Council concurrence, Mayor Elson directed the City Administration and the City Attorney to pursue the procedures and policies of the City with regard to City organizations and fund raising. 4 C-3: Councilman A. L. Hudson Councilman Hudson spoke with regard to Resolution No. 76-32, which was passed at the last meeting of the Council in that the action of the Council was in direct violation of the Charter. Councilman Hudson stated that the Council's recent action In passing Ordinance 299-76 was an illegal action in that the ordinance to in direct conflict with the Charter. The Charter provides that the City Clerk be appointed by the City Manager whereas Ordinance 299-76 provides that the City Clerk shall be appointed by Council. Councilman Hudson further stated that in discussions with the City Attorney she had advised that Ordinance 176-69, which separates the City Clerk from the Finance Department, was in direct conflict with the Charter in that the Charter provides that the Clerk would be the head of the Finance Department. In addition, Councilman Hudson pointed out that Ordinance 192-71, which provides for the ratification of Department Heads by the Council, is also contrary to the Charter. City Attorney, Janis Williams, advised Council that it would be necessary to change the ordinances or put a Charter change on the up -coming ballot. Councilman Hudson stated in his opinion, the Clerk should not be under the Council. • Councilman Whelan stated he felt that the Clerk should be under the jurisdiction of the Council as many problems had arisen in the past when the Clerk was under the control of the City Manager, Councilman Morgan stated he felt the Clerk being under the City Manager could have contributed to some of the problems that the City has had in prior years. Mayor Elson stated he felt the Council needed to rescind the latest action and put the changes on the ballot. Councilman Sweet stated he felt that if one Ordinance was rescinded, all pertinent to this matter should be rescinded. MOTION: Councilman Ambarian moved, seconded by Councilman Morgan, that Ordinance 299-76 and Resolution No. 76-32 be rescinded and the Council instruct the City Attorney to research and give a legal opinion to the validity of Ordinances 176-69 and 192-71 and determine what changes (if any) should be included on the ballot for the up -coming election. Council discussion followed and several members of the Council expressed a desire to read the subject ordinances and research the matter further. MOTION: Councilman Sweet moved, seconded by Councilman Morgan, that the matter be tabled until the next regular meeting of the Council, so that each member of Council would have adequate time to read the ordinances in question and research the to matter further . Motion passed by roll call vote. Voting yes; Sweet, Morgan, Whelan, Ackerly and Hudson. Voting no; Ambarian and Elson. i If i 1 KENAI CITY COUNCIL, REGULAR MEETING, JULY 21, 1976 PAGE 5 /0� D, MINUTES n D-1: Minutes of the regular meeting of July 7, 1976 As there were no corrections or additions, the minutes were approved as distributed. E. CORRESPONDENCE None P . OLD BUSINESS P-1: Ordinance No. 304-76 - Regulation of Sales Tax for Retirement of Deficit Councilman Whelan advised that he had requested this ordinance be prepared to insure that the It sales tax levied for the purpose of retirement of prior year deficits be used strictly for this purpose and in the event an emergency arises that these funds are needed elsewhere, it would take a vote of five from Council to pass the request. At this time Councilman Sweet called for a point of order and requested that the Item be brought back to the Council table for discussion. MOTION: Councilman Sweet moved, seconded by Councilman Morgan, to bring the matter of Ordinance No. 304-76, Regulation of Sales Tax for Retirment of Deficit, back to the Council table. Motion passed unanimously. Mayor Bison stated he felt that Ordinance No. 267-75, the enacting ordinance, already restricts the 1$ tax and also Mayor Elson stated he felt that if it is required to have five voting to remove it, it should also take five voting members to expend it. Councilman Whelan stated that he had heard much comment that several matters have been passed through Council with only a vote of three under certain circumstances. Councilman Whelan further stated that the important issue at hand was to strictly enforce the retirement of the deficit and lower the mill rate. MOTION: Councilman Hudson moved, seconded by Councilman Whelan, that Ordinance 304-76 be amended so that the wording complies with that contained in Section 7-27 of Ordinance No. 267-75 . ..... is dedicated to be applied to the debt service fund, to enable the City to meet its cash restriction requirements as provided for in various bond ordinances..... f KENAI CITY COUNCIL, REGULAR MEETING, JULY 21, 1976 PAGE 6 MOTION: Councilman Hudson moved, seconded by Councilman Morgan, to amend the introductory title and first "Whereas" paragraph to reflect these changes in wording. Mr. Art Evans requested permission to speak before Council. Permission was granted. Mr. Evans stated it was his opinion that the wording in Ordinance 267-75 was incorrect as the revenues were dedicated to be applied to the debt service fund -- Auditors will find conflict with this reference. Mayor Elson stated that the prior motions were out of order as there had not been a i motion for introduction of Ordinance 304-76. MOTION: Councilman Hudson moved, seconded by Councilman Morgan, for introduction of Ordinance No. 304-76, Regulation of Sales Tax for Retirement of Deficit. MOTION: Councilman Hudson moved, seconded by Councilman Ambarian, that Ordinance No. 304-76 be tabled until the ambiguities have been cleared up in Ordinance No. 267-75. City Attorney Williams advised that Ordinance 267-75 should be amended. MOTION: Councilman Hudson moved, with consent of second, to amend his motion to state that Ordinance No. 267-75 be amended to include ... the 1% sales tax will go into a restrictive reserved fund in the General Fund instead of the Debt Service Fund and also to read the 1% sales was to go to the retirement of prior year deficits and cash deficiencies. t' Motion passed by roll call vote. Voting yes; Sweet, Morgan, Whelan, Ackerly, Hudson and Elson. Voting no; Ambarian QUESTION - TABLE i -- Motion passed unanimously by roll call vote. r, G. NEW BUSINESS 1 G-1: Bills to be Paid, Bills to be Ratified Mr. Aber explained the items as listed and recommended approval. MOTION: ---;t Councilman Hudson moved, seconded by Councilman Ambarian, for approval of those disbursements listed for payment and approval of those items listed for ratification. Motion passed unanimously by roll call vote. r , '! 0 KENAI CITY COUNCIL, REGULAR MEETING JULY 21, 1976 PAGE 7 G-2: Resolution No. 76-33 - Transfer of Funds - Animal Control Mayor Elson road Resolution No. 76-33 by title only as copies were made available to the public. Mr. Aber advised that this resolution transferred budgeted dollars to allow for the development and implementation of the 1976-77 Animal Control Program. MOTION: Councilman Ambarian moved, seconded by Councilman Morgan, for adoption of Resolution No. 76-33, Transfer of Funds - Animal Control Program. Motion passed unanimously by roll call vote. O-3: Resolution No. 76-34 - Transfer of Funds - Recreation Program Mayor Elson read Resolution No. 76-34 by title only as sufficient copies of the resolution had been made available to the public prior to the meeting. Mr. Aber advised that this transfer of funds within the Recration budget was to hire two additional Recreational Assistants to assist in the program. MOTION: Councilman Ambarian moved, seconded by Councilman Whelan, for adoption of Resolution No. 76-34, Transfer of Funds - Recreation Program. Councilman Sweet stated he felt that the rate of pay for these assistants was entirely out of line with the pay scale in the community and also went on record as opposed to the Salary Schedule for the City in general. Motion passed by roll call vote. Voting yes; Morgan, Whelan, Ambarian, Ackerly, Hudson and Elson. Voting no; Sweet. 0-4: Resolution No. 76-35 - Boroutrh Foreclosed Parcel/Beaver Creek Subdivision 0-5: Resolution No. 76-30 - Transferrintt of Punda/itnvntferh An»onlnanA va«nai Mayor Elson read Resolution No. 76-35 by title only as copies had been available to the public, "A resolution of the Council of the City of Kenai, Alaska, setting aside Lot 3, Block H, Beaver Creek Alaska Subdivision, Tax Parcel #041-080-0300 for immediate public use by the City of Kenai". Mr. Aber advised that this resolution was for the lot retained at the last meeting of the Council for immediate public use and Resolution No. 76-36 was to transfer budgeted dollars to allow for the payment of Kenai Peninsula Real Property taxes on Lot 3, Block H, Beaver Creek Alaska Subdivision, Tax Parcel #041-080-0300, which lot the City has set aside for immediate public use. 1 W � i 1 r KENAI CITY COUNCIL, REGULAR MEETING, JULY 21, 1976 PAIR 8 MOTION: Councilman Ambarian moved, seconded by Councilman Whelan , for adoption of Resolution No. 76-35, Borough Foreclosed Parcel/Beaver Creek Subdivision and adoption of Resolution No. 76-36, Transferring of Funds/Borough Foreclosed Parcel, Motion passed unanimously by roll call vote. G-6: Resolution No. 76-37, Transfer of Funds/Legislative Mayor Elson read Resolution No. 76-37 by title only as copies had been made available to the public. Mayor Elson advised Council that these monies were to allow for expenditures in hosting the Alaska Municipal League Board of Directors at their annual meeting to be held in Kenai August 6th and 7th. MOTION: Councilman Ambarian moved, seconded by Councilman Ackerly, for adoption of Resolution No. 76-37, Transfer of Funds - Legislative. Motion passed unanimously by roll call vote. G-7: Acceptance of Bid - Petroleum Products 00 Mr. Aber advised that no bids had been received and he would, therefore, contact the current suppliers to ask that they submit quotations on the supply of petroleum products for the City. G-8: Assignment of Lease - Edward A. Ferguson to Yoshi and Ruth Shiohira Mr. Aber advised that this assignment of lease was for Lot 3, of Gusty Subdivision and Administration recommended approval contingent upon payment to the City by Mr. Ferguson for all monies owing on Lot 3 in the amount of $3,723.61 and assessments in the amount of $219.32. Mr. Aber stated that Mr. and Mrs. Shiohira would have to take their development plan before Planning Commission before approval for construction and use of the lot. MOTION: Councilman Hudson moved that the matter of assignment of lease be table until the developmej plan has been presented to the Planning Commission for their recommendation. After discussion, Councilman Hudson withdrew his tabling motion. Mayor Elson stated that as development plans were required on lease of City owned lands, Mr. Ferguson had obviously not met his commitments for development of this lot. Mr. Ferguson stated there had been no development plan required at the time of his lease. 11 LJ b KENAI CITY COUDiCIL, REGULAR MEETING, JULY 21, 1076 pAOJ, g Councilman Hudson stated he felt that perhaps a. development plan commitment could have been separate from the lease and requested that Administration research the matter further. MOTION: Councilman Morgan moved, seconded by Councilman Sweet, to place this item as the last item on the agenda to allow Mr. Ferguson time to obtain a copy of his lease. Motion passed by roll call vote. Voting yes; Sweet, Morgan, Whelan and Ackerly. Voting no; Ambarian, Hudson and Elson. G-9: Assignment of Lease - Robert T . and Norma Bielefeld to National Bank of Alaska Mr. Aber advised that this assignment of lease from Robert T . Bielefeld ( and Norma Bielefeld to the National Bank of Alaska was for Lot 1, Block 5, Small Aircraft Apron Subdivision. MOTION: Councilman Ambarian moved, seconded b y Councilman Hudson, for ssi of Lease from Robert T . and Norma Bielefeld to National Bank of Alaska for approval 1,tBlock g nt Small Aircraft Apron. Motion passed unanimously by roll call vote. ® H. REPORTS H-I.City Manager's Report (a) RDA Water Well Project - Mr. Aber advised that the bids had been opened in the afternoon at City Hall and only six bids were received and were all extremely high. The apparent low bidders were as follows: Water Meters - Cooper at $481,150; Water Mains - Brown at $393, 904.80; Wells 1 and 2 - Interstate at $675,000 and r at ;l, 015 , 000. In discussion with the Engineer after the bideReservoir -Inter opening state of Administration that the City should proceed with the drill gtte new well it was the and feeling the over -hauling of the present well and construction of the water mains. Mr. Aber asked for a consensus of opinion of council as he would like to approach the State and RDA to determine if they would be agreeable to dropping the meters and the reservoir. MOTION: Councilman Ambarian moved, seconded by Councilman Hudson, for authorization to City Administration to pursue the objective of construction of the well, over -hauling the present well and water main construction j Alaska State Department of Environmental Conservation and the contacting the gnomic DDevel pment Administration. - Motion passed unanimous) y by roll tali vote. t (b) Animal Control - Mr. Aber advised that the City had gone to bid with regard to the facility for Animal Control. The bids will be opened on August 9, 1976. s " r KENAI CITY COUNCIL, REGULAR MEETING, JULY 21, 1970 PAGE 10 <e) Bergen Gravel Pit - Mr. Bergen has boon requested to submit an amended application. The City has contacted the State and they are investigating the matter of Mr. Bergen's excavation interforring with the road. As far as pollution of the river, this matter was still being investigated. MAYOR AND COUNCIL - QUESTIONS AND COMMENTS Councilman Morgan inquired if the old boat ramp was built for pleasure craft or fishing boats. Mr. Aber stated that he was under the impression that it was built for everyone's use but realized there was a need for regulation. Councilman Morgan stated that the fishermen had their cars parked on the ramp and blocked access. Mr. Aber suggested that the City could post signs in the area for enforcement. City Attorney, Janis Williams, advised there was a definite need of some type of Harbor Regulations. Ahlstrom Subdivision - Mr. Aber advised that he had not boon able to accomplish anything with regard to this matter and would report back at the next meeting of Council. H-2., CCt ► Attorney's Report City Attorney Janis Williams requested an executive session immediately following ® completion of agenda items. Request was granted by Council. H-3: Mayor's Report Mayor Elson requested a report from the Committee reviewing City Manager applicants. The Committee advised that the list of applicants had been narrowed down to four and recommended these persons be brought to Kenai for interview. MOTION: Councilman Morgan moved, seconded by Councilman Whelan, that Administration determine total costs involved in bringing the four finalists to Kenai for interview, and upon approval of all Council members with regard to funding, proceed with setting up interviews. Motion passed unanimously by roll call vote. H-4: City Clerk's Report None H-5: Finance Director's Report Mr. Kinney advised that the annual audit was underway. Kenai Native Association had paid for water usage for the months of May and June and Mr. Kinney also advised that he was preparing a schedule on status of lights in the urban section, 0 r I 1 lre. .. I_ — ems . - � .r,.�r, ,:ate,-- - • - - - ^�- 0 KENAI CITY COUNCIL, REGULAR MEETINO, JULY 21, 1976 PAGE. 11 Mr. Aber read read the agreement with the State and advised that the City had not officially accepted the lights and also had not :signed a recent agreement with regard to maintenance of same. MOTION: Councilman Morgan moved, seconded by Councilman Ackerly, that the City bill the State immediately in accordance with percentage as outlined in the agreement as read by the Acting City Manager. Motion passed unanimously by roll call vote. Mr. Aber asked that he be given additional time to do further research into the matter before billing the State. H-6: Planning and Zoning Commission's Report None H-7: Kenai Peninsula Borough Assembly's Report Councilman Hudson advised that the Water resource ordinance was turned down by the Assembly but was reconsidered and up again at the next meeting. Ord. 76-46, for General Obligation bonds not to exceed $2,445,000 was withdrawn because of look of support. Councilman Hudson did advise that the Ordinance on the protection of Kenai water resources did have the support of the Borough Mayor. H-5: Finance Director's Report MOTION: Councilman Morgan moved, seconded by Councilman Hudson, for immediate reconsideration of his motion with regard to Lighting Agreement with the State of Alaska. Motion passed unanimously. MOTION: Councilman Morgan moved, seconded by Councilman Hudson, that his motion be amended that the State be billed 100% for the costs incurred for the lighting in the urban section and that the City submit this billing to the State within the next six weeks. Motion passed unanimously. MOTION: Main motion, as amended, passed unanimously by roll call vote. G-8: Assignment of Lease - Edward A. Ferguson to Yoshi and Ruth Shiohira Request for assignment of lease was brought back to the Council table. EQ KENAI CITY COUNCIL, REGULAR MEETING, JULY 21, 1976 PAGE 12 After reviewing the copy of Mr. Ferguson's lease, Councilman Morgan stated he did not see a reference to a development plan and asked if the City would lease their lands without one? Councilman Hudson advised that at the time Mr. Ferguson's lease was drawn up, the City had issued a separate directive from the lease outlining the development plan requirements and thus the reason for Administration to research their files. Councilman Sweet stated the lease to Mr. Ferguson did stipulate that a development plan was required before anything is built on the property. MOTION: Councilman Morgan moved, seconded by Councilman Sweet, that the City approve the Assignmment of Lease from Edward A. Ferguson to Yoshi and Ruth Shiohira for Lot 3 of Gusty Subdivision, subject to payment of any past due amounts on Lot 3 in the amount of $3,942.83 which are outstanding lease payments, assessments and penalty and tax charges on Lot 3. MOTION: Councilman Morgan moved, seconded by Councilman Ackerly, to amend the motion to include payment of any past due amounts in the amount of $11,603 covering past due amounts on Lots 1, 2, and 3, Gusty Subdivision. Amendment failed by roll call vote. Voting no; Sweet, Morgan, Whelan, Ambarian, Ackerly and Hudson. Voting yes; Elson. QUESTION - MAIN Motion failed by roll call vote. Voting no; Sweet, Whelan, Ambarian, Ackerly, Hudson and Elson. Voting yes; Morgan. MOTION: Councilman Sweet moved, seconded by Councilman Hudson, that the lease on these three lots be immediately terminated as Mr. Ferguson has failed to meet his lease payment commitments. t Councilman Whelan stated that as Administration has given Mr. Ferguson sixty days in which to meet his commitment, the City is morally obligated to wait until this sixty day period is over. Councilman Ackerly agreed with Councilman Whelan. Motion failed by roll call vote. Voting no; Morgan, Whelan, Ambarian, Ackerly, Hudson and Elson. Voting yes; Sweet. MOTION: Councilman Whelan moved, seconded by Councilman Ackerly, that Administration be directed to further research the matter of Mr. Ferguson's leases concerning development plan requirements, back taxes, etc. and make a determination in this regard as to whether or not Mr. Ferguson has complied and after findings by Administration and to payment of all back payments by Mr. Ferguson by August 22nd, Mr. Ferguson will re -submit his application for assignment of lease to Council for final approval. Motion passed unanimously by roll call vote. U, k 4 a 4 i KENAI CITY COUNCIL, REGULAR MEETING, JULY 21, 1976 PAGE 13 I. PERSONS PRESENT NOT SCHEDULED TO HE HEARD I-1: Mr. Edward Ferguson Mr. Ferguson stated he felt it would be too late to enter into a contract with the Shiohira's in late August. Council suggested that Mr. Ferguson direct Mr. and Mrs. Shiohira to submit a development plan to the Planning Commission for Commission's recommendation prior to the final approval of assignment of lease in order not to further delay construction. EXECUTIVE SESSION Councilman Ambarian moved, seconded by Councilman Hudson, that Council retire immediately into an Executive Session for the purpose of discussions on the PEP Suit, Employee's Suit, and the City Attorney's salary. Public meeting of the Kenai City Council reconvened at 1: 05 a.m. MOTION: Councilman Whelan moved, seconded by Councilman Morgan, that in regard to the PEP Suit, the City make an offer of settlement to the State of Alaska in the amount of $7, 560.42 plus an amount equal to seven days salary and benefits for Loretta Knackstedt. Motion passed unanimously by roll call vote. MOTION: Councilman Ambarian moved, seconded by Councilman Sweet, that the City Attorney's annual salary be set at $26, 000. Motion passed by roll call vote. Voting yes; Sweet, Morgan, Whelan, Ambarian, Ackerly, and Elson. Voting no; Hudson. There being no further business to be brought before the Council, Mayor Elson adjourned the meeting at 1:10 p.m. i t.= Respectfully submitted, Su C . Peter, City Clerk