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HomeMy WebLinkAbout2016-12-07 Council MinutesKENAI CITY COUNCIL — REGULAR MEETING DECEMBER 7, 2016 — 6:00 P.M. KENAI CITY COUNCIL CHAMBERS 210 FIDALGO AVE., KENAI, AK 99611 MAYOR BRIAN GABRIEL, PRESIDING MINUTES A. CALL TO ORDER A Regular Meeting of the Kenai City Council was held on December 7, 2016, in City Hall Council Chambers, Kenai, AK. Mayor Gabriel called the meeting to order at 6:00 p.m. 1. Pledge of Allegiance Mayor Gabriel led those assembled in the Pledge of Allegiance. 2. Roll Call There were present: Brian Gabriel, Mayor Henry Knackstedt Jim Glendening Mike Boyle (absent) A quorum was present. Also in attendance were: Robert Molloy Tim Navarre (telephonic) Glenese Pettey ` *Mackenzie Lindeman, Student Representative Rick Koch, City Manager Scott Bloom, City Attorney Sandra Modigh, City Clerk Jamie Heinz, Deputy City Clerk 3. Election of Vice Mayor MOTION: Council Member Glendening MOVED to nominate Tim Navarre as Vice Mayor. Council Member Knackstedt SECONDED the motion and requested UNANIMOUS CONSENT. VOTE: There being no objection; SO ORDERED. 4. Agenda Approval Mayor Gabriel noted the following revisions to the agenda and packet: Remove Item B. 2 Scheduled Public Comment Bob McIntosh Add to Item D. 4. Resolution No. 2016 -49 • Amendment Memorandum Add Item G. 21 New Business • Action /Approval —Appoint Terry Eubank as the Interim City Manager from January 1, 2017 to January 8, 2017. MOTION: Council Member Navarre MOVED to approve the agenda with requested revisions to the agenda and packet and requested UNANIMOUS CONSENT. Council Member Molloy SECONDED the motion. VOTE: There being no objections, SO ORDERED. 5. Consent Agenda MOTION: Council Member Knackstedt MOVED to approve the consent agenda and requested UNANIMOUS CONSENT. Council Member Molloy SECONDED the motion. Mayor Gabriel opened the public hearing; there being no one wishing to be heard, the public hearing was closed. VOTE: There being no objections, SO ORDERED. '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. B. SCHEDULED PUBLIC COMMENTS 1. Joy Merriner — BDO Joy Merriner, auditor with BDO noted the audit of the City's finances went extremely well and the City was issued a clean -- unmodified opinion which was the best possible. She noted there were new investment disclosures required of the City, and that there was nothing to report with internal controls which was a testament to the City's policies and its staff. It was further noted that the net pension obligation had increased due to state regulations changing and they wouldn't change again unless the state changes regulations going forward pointing out that in two years the City would also be required to add medical benefits to the pension liabilities. 2. Bob McIntosh — Lawton Acres City of Kenai Council Meeting Page 2 of 13 December 7, 2016 [Clerk's Note: This item was removed from the agenda during Approval of the Agenda.] C. UNSCHEDULED PUBLIC COMMENTS — None. D. PUBLIC HEARINGS 1. Ordinance No. 2926 -2016 —Accepting and Appropriating a Donation from Hilcorp Energy Company to Assist with the Annual Kenai Senior Center Thanksgiving Dinner. MOTION: Council Member Molloy MOVED to enact Ordinance No. 2926 -2016 and the motion was SECONDED by Council Member Knackstedt. Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment was closed. Hilcorp Energy Company was thanked for their generous donation for the Kenai Senior Center Thanksgiving Dinner. VOTE: YEA: Gabriel, Glendening, Knackstedt, Navarre, Pettey, Molloy NAY: "Student Representative Lindeman: YEA MOTION PASSED UNANIMOUSLY. 2. Resolution No. 2016 -46 — Establishing the 2017 Dates for Regular Meetings of the City Council. MOTION: Council Member Knackstedt MOVED to adopt Resolution No. 2016 -46 and the motion was SECONDED by Council Member Glendening. Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment was closed. VOTE: YEA: Gabriel, Glendening, Knackstedt, Navarre, Pettey NAY: Molloy "Student Representative Lindeman: YEA MOTION PASSED. 3. Resolution No. 2016 -48 —Authorizing the City Manager to Accept a Donation, on Behalf of the City, of Property Described as Lot 1, Block 20, Original Townsite of Kenai Kenai Alaska from Kenai Bible Church for the Public Purpose of Including City of Kenai Council Meeting Page 3 of 13 December 7, 2016 the Property in the Bluff Erosion Restoration Project and Determining that the Public Interest will not be Served by an Appraisal. MOTION: Council Member Molloy MOVED to adopt Resolution No. 2016 -48 and the motion was SECONDED by Council Member Navarre who requested UNANIMOUS CONSENT. Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment was closed. VOTE: There being no objections, SO ORDERED. 4. Resolution No. 2016 -49 — Supporting the Vacation of Section Line Easements Located on the Section Line in Common with Section 7 and Section 18, TSN, R1 1W, Seward Meridian, further Located on Old Cannery Road between Royal Street and the Mean High -Water of Cook Inlet within the City Limits of Kenai. MOTION: Council Member Knackstedt MOVED to adopt Resolution No. 2016 -49 and the motion was SECONDED by Council Member Glendening. Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment was closed. MOTION TO AMEND: Council Member Knackstedt MOVED to amend the resolution by amending the preamble to read, "a Resolution of the Council of the City of Kenai, Alaska, supporting the vacation of the full width of the 83 -foot section line easement located on the section line in common with I Section 7 and Section 18, TSN, R11 W, Seward Meridian, further located on Old Cannery Road between Royal Street and the mean high -water of Cook Inlet within both the City limits of Kenai and outside the City limits within the Kenai Peninsula Borough," amending the fourth whereas clause to read, "Whereas, the Council of the City of Kenai previously, unanimously approved through Ordinance 2771 -2014, a State Grant for one million nine hundred thousand dollars ($1,900,000) for the purpose of designing and constructing a new roadway to provide equal or better access to the South Beach and related improvements; and," amending the ninth whereas clause to read, "Whereas, each year the City has applied to the State of Alaska, Department of Natural Resources to temporarily close the Section Line Easement located in common with Section 7 and Section 18, TSN, R11 W, Seward Meridian, and further located on Old Cannery Road between Royal Street and the mean High -Water of Cook Inlet within the City limits of Kenai and outside the City Limits within the Kenai Peninsula Borough," adding a tenth whereas clause to read, "Whereas, the full width of the 83 -foot Section Line Easement located in common with Section 7 and Section 18, TSN, R11 W, Seward Meridian, is no longer needed because a new City of Kenai right -of -way and extension of Royal Street was constructed to provide equal or better access to South Beach and the waters of Cook Inlet," and replace the resolved statement to read, "now, therefore, be it resolved by the Council of the City of Kenai, Alaska, that the Council supports the vacation of the full width of the 83 -Foot Section Line Easement in common with Section 7 and Section 18, TSN, R11W, Seward Meridian, further located on Old Cannery Road between Royal Street and the mean High- Waters of Cook Inlet within both the City Limits of Kenai and outside the City Limits City of Kenai Council Meeting Page 4 of 13 December 7, 2016 within the Kenai Peninsula Borough," and the motion was SECONDED by Council Member Molloy. UNANIMOUS CONSENT was requested. Administration noted the amendments clarified that the properties described were inside and outside city limits and provided more justification due to closure requests. It was clarified the next step in the process was to prepare and submit a packet requesting vacation from the State of Alaska, Department of Natural Resources VOTE ON THE AMENDMENT: There being no objections; SO ORDERED. MOTION TO AMEND: Council Member Knackstedt MOVED to strike three instances of 83 -foot on section line easement widths and insert 66 -foot and the motion was SECONDED by Council Member Molloy. UNANIMOUS CONSENT was requested. It was clarified that when drafting the legislation, it was assumed that the easements totaled eighty -three feet but after researching it was found that the easements totaled sixty -six feet. VOTE ON THE AMENDMENT: There being no objection; SO ORDERED. VOTE ON THE MAIN MOTION: YEA: Gabriel, Glendening, Knackstedt, Navarre, Pettey, Molloy NAY: * *Student Representative Lindeman: YEA MOTION PASSED UNANIMOUSLY. E. MINUTES 1. *Regular Meeting of November 2, 2016 Meeting minutes approved by the consent agenda. F. UNFINISHED BUSINESS — None. G. NEW BUSINESS 1. *Action /Approval — Bills to be Ratified. Approved by the consent agenda. 2. *Action /Approval — Purchase Orders Exceeding $15,000. Approved by the consent agenda. 3. *Ordinance No. 2927 -2016 — Amending Kenai Municipal Code 23.55.020 - Compensation Structure by Grade, and 23.55.050 - Hourly Rates, to Clarify Step Increase Differences between Permanent Full -Time and Permanent Part-Time Employees City of Kenai Council Meeting Page 5 of 13 December 7, 2016 Introduced by the consent agenda and public hearing set for January 4, 2017. 4. *Ordinance No. 2928 -2016 — Increasing Estimated Revenues and Appropriations by $1,400,120 in the Water and Sewer Capital Project Fund for Construction of Improvements to the City's Waste Water Treatment Plant and by $353,791.51 in the Water and Sewer Special Revenue Fund to Provide the Required 30% Local Match to the Project. Introduced by the consent agenda and public hearing set for January 4, 2017. 5. *Ordinance No. 2929 -2016— Amending KMC 22.05.100 -Sale Procedure, to Eliminate the Requirement that the City Utilize a Title or Escrow Company within the City for Closing of General Fund Land Sales. Introduced by the consent agenda and public hearing set for January 4, 2017. 6. *Ordinance No. 2930 -2016 — Amending KMC 12.40.060 - Violations and Penalties, to Set Specific Fine Amounts for Violations of the City's Regulation of Smoking in Order to Eliminate the Requirement of a Mandatory Court Appearance for each Citation Issued. Introduced by the consent agenda and public hearing set for January 4, 2017. 7. *Ordinance No. 2931 -2016 —Amending KMC 23.50.010 - Employee Classification, to Remove the Class Title of Human Resource Officer and Class Code 123 in its Entirety and Amend the Class Title Human Resource Specialist/Assistant to City Manager to Human Resource Officer Pursuant to a Position Reclassification. Introduced by the ,consent agenda and public hearing set for January 4, 2017. 8. *Ordinance No. 2932 -2016 — Donating and Declaring no Longer Needed for a Public Purpose a Certain Parcel Described as Lot 17, Block 5, Original Townsite of Kenai, (KPB Parcel No. 047- 071 -21) to the Kenaitze Indian Tribe. Introduced by the consent agenda and public hearing set for January 4, 2017. 9. *Ordinance No. 2933 -2016 — Authorizing an Amendment to Extend the Term of Lease to 2035 of Certain City -Owned Land, Identified as a Portion of Lot 3, Block 17, Original Townsite of Kenai and the Building known as the "Fine Arts Center ", to the Peninsula Art Guild, Inc, without a Current Appraisal and Declaring an Amendment to the Lease is in the Best Interest of the City. Introduced by the consent agenda and public hearing set for January 4, 2017. 10. Action /Approval — Consent to Assignment of Lease of General Fund Lands for Property Described as a portion of Government Lot 10, Section 4, Township 5 North, Range 11 West, and Lots 2 and 4, Amended U.S. Survey 4563 Located at Bridge Access Road from Salamatof Fisheries, LLC (Assignor) to RABUF, LLC (Assignee). City of Kenai Council Meeting Page 6 of 13 December 7, 2016 MOTION: Council Member Molloy MOVED to approve the consent to assignment of lease of general fund lands for property described as a portion of Government Lot 10, Section 4, Township 5 North, Range 11 West, and Lots 2 and 4, Amended U.S. Survey 4563 located at Bridge Access Road from Salamatof Fisheries, LLC (Assignor) to RABUF, LLC (Assignee), and requested UNANIMOUS CONSENT. The motion was SECONDED by Council Member Knackstedt. VOTE: There being no objection; SO ORDERED. 11. Action /Approval — Consent to Assignment of Lease of General Fund Lands for Property Described as Tract C, Kenai Tidelands Survey No. 2 from Salamatof Fisheries, LLC (Assignor) to RABUF, LLC (Assignee). MOTION: Council Member Knackstedt MOVED to approve the consent to assignment of lease of general fund lands for property described as Tract C, Kenai Tidelands Survey No. 2 from Salamatof Fisheries, LLC (Assignor) to RABUF, LLC (Assignee), and requested UNANIMOUS CONSENT. The motion was SECONDED by Council Member Glendening. VOTE: There being no objection; SO ORDERED. 12. Action /Approval — Consent to Assignment of Lease of General Fund Lands for Property Described as Lot 2, Kenai Spit Subdivision, Located at 2000 Columbia Street from Wild Pacific Salmon, Inc. (Assignor) to North Pacific Seafoods, Inc. (Assignee). MOTION: Council Member Knackstedt MOVED to approve the consent to assignment of lease of general fund lands for property described as Lot 2, Kenai Spit Subdivision, located at 2000 Columbia Street from Wild Pacific Salmon, Inc. (Assignor) to North Pacific Seafoods, Inc. (Assignee), and requested UNANIMOUS CONSENT. The motion was SECONDED by Council Member Glendening. VOTE: There being no objection; SO ORDERED. 13. Action /Approval — Mayoral Appointment and Council Confirmation of Council Liaisons to Committees and Commission. MOTION: Council Member Molloy MOVED to confirm Mayoral appointments of Council Liaisons to Committees and Commissions as listed in the memorandum in the packet and requested UNANIMOUS CONSENT. The motion was SECONDED by Council Member Knackstedt. VOTE: There being no objection; SO ORDERED. 14. Action /Approval — Council Confirmation of the Mayor's Nomination to Appoint Gary Greenberg to the Planning and Zoning Commission. City of Kenai Council Meeting Page 7 of 13 December 7. 2016 MOTION: Council Member Molloy MOVED to confirm the Mayor's nomination of Gary Greenberg to the Planning and Zoning Commission and requested UNANIMOUS CONSENT. The motion was SECONDED by Council Member Knackstedt. VOTE: There being no objection; SO ORDERED. 15. Action /Approval — Mayoral Nomination and Council Confirmation to Appoint Applicants to the Planning and Zoning Commission Vacancies. The Mayor noted his intent to nominate Joe Halstead for reappointment and Victoria Askin for appointment to the Planning and Zoning Commission vacancies. MOTION: Council Member Knackstedt MOVED to confirm the Mayor's nomination to reappoint Joe Halstead and appoint Victoria Askin to the Planning and Zoning Commission vacancies and the motion was SECONDED by Council Member Glendening. VOTE: YEA: Gabriel, Glendening, Knackstedt, Navarre, Pettey, Molloy NAY: "Student Representative Lindeman: YEA MOTION PASSED UNANIMOUSLY. 16. Action /Approval — Mayoral Nomination and Council Confirmation to Appoint or Reappoint Applicants to Committee /Commission Vacancies. MOTION: Council Member Molloy MOVED to confirm the Mayoral nomination of Charles Henry for reappointment to the Airport Commission, Bob Peters for reappointment to the Airport Commission, Noel Widmayer for reappointment to the Parks and Recreation Commission, and Jacquelyn Hudson for appointment to the Parks and Recreation Commission and requested UNANIMOUS CONSENT. The motion was SECONDED by Council Member Glendening. VOTE: There being no objection; SO ORDERED. 17. Action /Approval — Providing Direction to the City Manager Regarding Property Acquisition in Support of the Bluff Erosion Project. It was clarified that a title report would need to be generated for twenty -five parcels as well as purchase agreements. It was noted that there were a few situations that would require subdividing to preserve economical remnants of property. 18. Action /Approval — Council Approval of a $500 Donation to Wreaths Across America Recognizing United States Veterans. City of Kenai Council Meeting December 7, 2016 MOTION: Council Member Knackstedt MOVED to approve a $500 donation to Wreaths Across America and Recognize United States Veterans and the motion was SECONDED by Council Member Glendening. UNANIMOUS CONSENT was requested. VOTE: There being no objection; SO ORDERED. 19. Action /Approval — Scheduling a Council Work Session to Discuss FY17 Financial Performance. Administration noted negative impacts to future budget creation such as reduced sales tax revenue, reduced revenue sharing. It was decided a work session would be held December 13 at 6:00 p.m., tentatively, contingent on availability of advertising in the newspaper. 20. Discussion — Kenai Peninsula Borough Action on City of Kenai Comprehensive Plan. Administration explained the Kenai Peninsula Borough Planning and Zoning Commission approved the City of Kenai Comprehensive Plan unanimously, with a few textual changes; noted the Kenai Peninsula Borough was set to vote on approval on January 3, 2017. Gratitude was expressed to those that were involved in creation of the Comprehensive Plan; staff was commended for its presentation to the Kenai Peninsula Borough Planning and Zoning Commission. 21. Action /Approval — Appoint Terry Eubank as the Interim City Manager from January 1, 2017 to January 8, 2017. MOTION: Council Member Molloy MOVED to appoint Terry Eubank as the Interim City Manager from January 1, 2017 to January 8, 2017 and requested UNANIMOUS CONSENT. The motion was SECONDED by Council Member Glendening. VOTE: There being no objection; SO ORDERED. H. COMMISSION /COMMITTEE REPORTS 1. Council on Aging — No report; next meeting December 8. 2. Airport Commission — It was reported that at their November 10 meeting an update was provided that administration was waiting on comments on the Master Plan; an approach pattern had been developed for helicopters to follow, keeping them away from residential areas where possible; goals and objectives for FY18 budget would be further fleshed out, and approval of a Special Use Permit for Hilcorp. 3. Harbor Commission — No report; next meeting January 9. City of Kenai Council Meeting Page 9 of 13 December 7, 2016 4. Parks and Recreation Commission — It was reported that at their November 3 meeting, the removal of dangerous playground equipment, raising cemetery fees, and goals and objectives for the FY18 budget were topics discussed; next meeting January 5. 5. Planning and Zoning Commission - It was reported that at their November 9 meeting, the Commission approved a plat and approved a variance for a sign along the Kenai Spur Highway for placement and minor relocation of a refurbished existing sign; next meeting December 14. 6. Beautification Committee — No report; next meeting January 10 7. Mini -Grant Steering Committee — No report. REPORT OF THE MAYOR Mayor Gabriel reported on the following: • Attended a Project Homeless Connect forum; • Coffee with the Mayor was well attended; • Attended the Boys and Girls Club fundraiser noting a great turnout; • Attended the Alaska Municipal League Conference and noted concern regarding the financial condition of state and congratulated Council Member Navarre on receiving the Vic Fischer award for Municipal Public Service; • Attended Thanksgiving Dinner at the Senior Center; • Attended the Christmas Comes to Kenai event; • Noted the passing of Gary Superman who served on the Kenai Peninsula Borough Assembly and offered his condolences to the family; • Welcomed new members to the Boards and Commissions; • Thanked the Finance Director for the clean audit; • Wished all a Merry Christmas and a Happy New Year. ADMINISTRATION REPORTS City Manager — R. Koch reported on the following: • Congratulated Council Member Navarre on receiving the Vic Fischer award for Municipal Public Service; • Working on re- appropriation of funding for the Bluff Erosion Project; • Corps of Engineers to do a site visit for the Bluff Erosion Project as design had been de- scoped; • Met with Hilcorp regarding their interest in leasing airport property; • Attended the municipal managers meetings at Alaska Municipal League where fiscal issues, Public Employee Retirement System, and Revenue Sharing were topics discussed; • Wished all a Merry Christmas and Happy Holidays; • Noted the Hockey Alumni game between Soldotna High School and Kenai Central High School scheduled for December 23 and was a fundraiser for Kenai Central High School hockey. City of Kenai Council Meeting Page 10 of 13 December 7, 2016 Also reported that administration had recently received comments from the consultants regarding the Airport Master Plan and had responded; noted the next stage was a meeting with the financial sub - consultant to incorporate the financial plan into the report and then give the plan back to the consultant. It was noted this was Koch's last official meeting, he was thanked for his service. 2. City Attorney — no report. 3. City Clerk — S. Modigh noted upcoming meetings. K. ADDITIONAL PUBLIC COMMENT 1. Citizens Comments (Public comment limited to five (5) minutes per speaker) Marian Nelson spoke in favor of Ordinance 2933 -2016, the Kenai Fine Arts Center lease noting the intent was to seek grants to open up the back section of the building to make a more useful space and other general upgrades. 2. Council Comments Student Representative Lindeman reported there was an upcoming wrestling regional tournament, a new cheer team with new coaches, and a spaghetti feed and auction for Students in Transition. Council Member Molloy thanked Ms. Merriner for her presentation on the audit thanked the Finance Director for a clean audit; congratulated Councilor Navarre on receipt of the Vic Fischer award and election to Vice Mayor; thanked Rick Koch for more than ten years of service to the City of Kenai and wished him well in future endeavors; thanked Paul Ostrander for attending the meeting and congratulated him on appointment to the City Manager position; attended the attorney's association seminar at Alaska Municipal League. Councilor Knackstedt congratulated the Mayor on his first meeting; echoed previous comments of congratulations and gratitude for Council Member Navarre and Rick Koch; thanked Council Member Glendening for attending the Planning and Zoning Commission meeting in his absence; attended Coffee with the Mayor where he enjoyed supporting the Mayor; helped serve Thanksgiving Dinner at the Senior Center; Noted it was Pearl Harbor Remembrance Day — recounted a story from a former pilot he met. Council Member Navarre thanked the Council for electing him Vice Mayor and those that nominated him for the Vic Fischer award, noting his parents had served with Vic Fischer in writing the State of Alaska's Constitution; echoed previous gratitude to Rick Koch for service to the City; suggested a moment be taken to remember Pearl Harbor and honor the veterans. Council Member Glendening echoed previous comments regarding Rick Koch; noted he attended Newly Elected Official training at Alaska Municipal League and found the mock meeting interesting; pointed out that the City was well run and well instructed. City of Kenai Council Meeting Page 11 of 13 December 7. 2016 Council Member Pettey thanked the City for the opportunity to go to Newly Elected Official training at Alaska Municipal League; thanked Rick Koch for his service to the City wishing him well in future endeavors. L. EXECUTIVE SESSION City Manager Hiring and Recruitment. (Clerk's Note: Council may convene into executive session to discuss this agenda item pursuant to AS 44.62.310(C)(1)(2)(a matter if which the immediate knowledge would clearly have an adverse effect upon the finances of the city; a subject that tends to prejudice the reputation and character of an applicant.] [Clerk's Note: This item was not taken up by the Council.] 2. Offer to purchase a portion of property located at 10095 Kenai Spur Highway, Kenai, AK 99611, KPB Parcel NO. 04501003. (AS 44.62.310(c)(1)(3) a matter of which the immediate knowledge may have an adverse effect upon the finances of the City, and a matter by which law, municipal charter, or ordinance are required to be confidential.] MOTION: Council Member Molloy MOVED to convene in executive session to discuss an offer to purchase a portion of property located at 10095 Kenai Spur Highway, Kenai, AK 99611, KPB parcel No. 04501003, the immediate knowledge may have an adverse effect upon the finances of the City, and a matter by which law, municipal charter, or ordinance are required to be confidential per AS 44.62.310(C)(1)(3) and requested the attendance of the City Manager, Paul Ostrander, City Attorney, and City Clerk as needed and the motion was SECONDED by Council Member Knackstedt. VOTE: YEA: Gabriel, Glendening, Knackstedt, Navarre, Pettey, Molloy NAY: "Student Representative Lindeman: YEA MOTION PASSED UNANIMOUSLY. Council reconvened in regular session and it was noted that Administration had been given direction; instructed the Clerk to add an item to the 114/17 agenda for scheduling a work session to discuss the property. M. PENDING ITEMS — None. N. ADJOURNMENT There being no further business before the Council, the meeting was adjourned at 8:51 p.m. I certify the above represents accurate minutes of the Kenai City Council meeting of December 7, 2016. City of Kenai Council Meeting Page 1 December 7, 2016 * *The student representative may cast advisory votes on all matters except those subject to executive session discussion. Advisory votes shall be cast in the rotation of the official council vote and shall not affect the outcome of the official council vote. Advisory votes shall be recorded in the minutes. A student representative may not move or second items during a council meeting. City of Kenai Council Meeting Page 13 of 13 December 7, 2016