HomeMy WebLinkAbout2017-08-02 Council MinutesKENAI CITY COUNCIL — REGULAR MEETING
AUGUST 2, 2017 — 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 August 2, 2017, 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
Glenese Pettey
Paul Ostrander, City Manager
Scott Bloom, City Attorney (telephonic)
Jamie Heinz, Acting City Clerk
3. Agenda Approval
Mayor Gabriel noted the following additions to the packet:
Add to Item D.9. Resolution No. 2017-53
• KPB Municipal Tax Survey Results
Add to Item J.1. City Manager's Report
• Letter to U.S. Army Corps of Engineers Regarding the
Bluff Stabilization Project
• Correspondence from Dr. Sorhus Regarding his Lawton
Acres Proposal
MOTION:
Council Member Molloy MOVED to approve the agenda with the requested additions to the packet
and requested UNANIMOUS CONSENT. Council Member Glendening SECONDED the motion.
VOTE: There being no objections, SO ORDERED.
4. 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. John Williams — Restored Fire Truck's Fourth of July Parade Trophy.
Mayor John Williams noted the restoration of the firetruck was almost completed with transmission
and brake issues being final projects; also noted the truck had been entered into the Kenai Fourth
of July parade and won First Class Overall. He added the project has received tremendous
community collaboration.
C. UNSCHEDULED PUBLIC COMMENTS
Marian Nelson reviewed a professional design fee proposal which had been provided for an as -
built and construction document services for renovations and upgrades at the Kenai Fine Arts
Center, which was leased from the City; noted K+A Design assisted with the design. Inquired
about financial help from the City.
D. PUBLIC HEARINGS
Ordinance No. 2968-2017 — Appropriating General Fund Balance Funds into General
Fund Land Administration -Lands Fund for the Purchase by the City of Kenai's General
Fund of Airport Property Outside the Airport Reserve Constituting Approximately 16.49
Acres of Real Property Described as S1/2 S1/2 SW1/4, Section 33,T6N, R11W,
Seward Meridian, Commonly Referred to as 'Lawton Acres' and Deed Restricting the
Future Use Of the Property to Parks and Recreational Uses to be Retained by the City
for a Public Purpose. [Clerk's Note: This item was postponed to this meeting from the
July 5 meeting for a third public hearing and Airport Commission review and
recommendation on July 13. A motion to enact is on the floor.]
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Mayor Gabriel opened the public hearing
Sheryl Main spoke in favor of the ordinance noting she had lived in Nashville and expressed
appreciation for planning for green space; enjoyed the green space of the wildflower field and Leif
Hansen Park. She added that she wasn't concerned about the cost of retaining green space.
Mike Beck spoke in favor of the ordinance; wasn't in favor of the dentist office; felt the residents
of Kenai would support purchasing the property.
Paul Minelga, Airport Commission member, spoke against the ordinance, noting the airport had
poor representation from the community. He pointed out that life flights come in and out of the
airport and that supplies would come in and out of the airport in the case of a Sterling Highway
closure. He added that the airport was an asset and $600,000 was a drop in the bucket to
maintenance and operations, especially given increased requirements for modernization.
Jim Zirul, Airport Commission member, spoke against the ordinance, noting the property was
under -valued for what its commercial value would be; also noted that Conservation didn't mean
green space, but for the property to be retained for the airport to be used at a later time to conserve
itself. He added the airport also leases property to help conserve itself.
William Nelson spoke in favor the ordinance expressing frustration that the commission would be
satisfied with $1.1 million but not with $600,000.
Lynette Nickons spoke in favor of the ordinance noting she appreciated the airport. She
suggested a new appraisal or a trade of sufficient land.
Melissa Frates spoke in favor of the ordinance noting the property as General Commercial was
against the Comprehensive Plan; pointed out that Dr. Sorhus removed his proposal to purchase
a portion of the property, and suggested a land swap. She suggested two-thirds of the property
was unable to be developed.
Glenda Feeken, Airport Commission Chair, spoke against the ordinance suggesting there was
misconception regarding Wildflower Field and the level of contamination that remained; also
suggested the fill that had been placed there might cause more of a problem for development.
She pointed out that the entire parcel was developable noting other commercial buildings in town
that were on small parcels; also reiterated that the property being zoned Conservation wasn't
intended to be park land, but conserved for airport use.
Barbara Christian spoke in favor of the ordinance noting they moved to Kenai 47 years ago and
couldn't find the city back then; encouraged keeping the city centered. She also provided a map
of vacant buildings and cleared lots noting they didn't improve the impression of the City.
John Williams spoke against the ordinance suggesting it be "kicked down the road" due to the
recession; added that property line setbacks and contamination hindered development.
Karl Kircher, principal of Mountain View Elementary school, noted a recent classroom project
where students planted lilacs near the gazebo at Wildflower Field on Arbor Day as a lesson in
conserving green space in perpetuity.
Vivian Terry was provided clarification that the deed restriction mentioned in the ordinance would
August 2, 2017
There being no one else wishing to be heard, public comment was closed
Administration noted a financial impact analysis had been prepared and had been put into terms
of mill rate; also addressed financial impacts to the Airport Fund. It was also explained that there
had been an attempt to outline established priorities for the use of the fund balance and
encouraged caution using the fund balance in the tough economic times.
It was reiterated that use of the funds to purchase the property fell within the fund balance policy.
How the expenditure and reduction of the fund balance affected the Bluff Erosion Project and
other capital projects was discussed.
It was noted it that it was difficult to monetize quality of life and drawing people to live here; the
rezoning failures of the property were reiterated.
MOTION TO AMEND:
Council Member Molloy MOVED to amend Section 5 by inserting $600,000 as the value to
appropriate from the Fund Balance and increase the Land Administration — Land Fund by the
same amount. The motion failed for lack of a second.
Administration's development of a plan to dispose of City -owned property, fair and equitable
treatment of neighborhoods, and the cost of creation and maintenance of parks were
considerations noted.
The utilization of capital reserves with an uncertain future and ensuring the best and highest use
for the property were other considerations noted, as was the current economic climate.
VOTE ON THE MAIN MOTION:
YEA: Molloy
NAY: Knackstedt, Gabriel, Pettey, Navarre, Glendening
MOTION FAILED.
2. Ordinance No. 2971-2017 — Amending Kenai Municipal Code Section 1.15.060 -
Motions, to Provide for Deferring a Motion or Agenda Item Beyond the Next Meeting.
MOTION:
Council Member Knackstedt MOVED to enact Ordinance No. 2971-2017 and the motion was
SECONDED by Council Member Molloy.
Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment
was closed.
It was clarified that the Code amendment would bring the practice of deferring motions beyond
the next meeting into the Code, which supersedes Robert's Rules.
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VOTE:
YEA: Knackstedt, Glendening, Gabriel, Pettey, Navarre, Molloy
NAY:
MOTION PASSED UNANIMOUSLY.
Ordinance No. 2972-2017 — Appropriating Funds in the Airport Fund, Accepting a Grant
from the Federal Aviation Administration and Appropriating Funds in the Airport Equipment
Capital Project Fund for the Purchase of Snow Removal Equipment (SRE) — Loader with
Attachments and a Multi -Purpose Broom.
MOTION:
Council Member Knackstedt MOVED to enact Ordinance No. 2972-2017 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.
It was noted that the FAA was providing a grant of over $1 million leaving approximately $68,000
remaining for the City's portion.
VOTE:
YEA: Glendening, Knackstedt, Gabriel, Pettey, Navarre, Molloy
NAY:
MOTION PASSED UNANIMOUSLY.
4. Resolution No. 2017-48 —Awarding an Agreement for Construction of Kenai Animal Control
Shelter Flooring Renovation.
MOTION:
Council Member Knackstedt MOVED to adopt Resolution No. 2017-48 and requested
UNANIMOUS CONSENT. The motion was SECONDED by Council Member Molloy.
Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment
was closed.
Unanimous Consent was objected to.
It was pointed out that the building was no longer owned by the City due to the lease agreement.
The lease agreement terms were reviewed; Administration noted alternative terms for the lease
would be considered.
VOTE:
YEA: Knackstedt, Gabriel, Pettey, Navarre, Molloy, Glendening
NAY:
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MOTION PASSED UNANIMOUSLY.
5. Resolution No. 2017-49 — Awarding an Agreement for Construction of Kenai Public Safety
Building Boiler Replacement.
MOTION:
Council Member Knackstedt MOVED to adopt Resolution No. 2017-49 and the motion was
SECONDED by Council Member Molloy. UNANIMOUS CONSENT was requested.
Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment
was closed.
Administration provided an overview of the design, the use of the specific boiler, warranties,
maintenance, and the contractor that provided the lowest bid.
VOTE: There was no objection; SO ORDERED.
6. Resolution No. 2017-50 — Providing for The Submission to the Qualified Voters of the City
of Kenai, at its Regular Election of October 3, 2017, the Advisory Question of Whether the
City should use General Funds or General Fund Land for the Purchase of or Trade for Airport
Land Commonly Referred to as "Lawton Acres", which is Airport Land Outside the Airport
Reserve Constituting Approximately 16.49 Acres of Real Property Described as S1/2 S1/2
SW1A Section 33,T6N, R1 1W, Seward Meridian.
MOTION:
Council Member Molloy MOVED to adopt Resolution No. 2017-50. The motion died for lack of a
second.
7. Resolution No. 2017-51 — Accepting and Adopting the 2017 Airport Master Plan.
MOTION:
Council Member Knackstedt MOVED to adopt Resolution No. 2017-51. The motion was
SECONDED by Council Member Glendening. UNANIMOUS CONSENT was requested.
Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment
was closed.
It was noted that the document was a good document though some portions were older as it was
completed in phases and it was suggested that a supplement be started in approximately three
years.
VOTE: There was no objection; SO ORDERED.
8. Resolution No. 2017-52 —Amending the Financing Terms and Purchasing Party for the Sale
of Tract A, Dragseth Subdivision 2016 Addition, According to the Official Plat Thereof, Under
Plat No. 2016-22, Filed in the Kenai Recording District, Third Judicial District, State of Alaska,
Including All Improvements Thereon as Previously Approved in Ordinance No. 2957-2017
(Substitute).
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MOTION:
Council Member Knackstedt MOVED to approve Resolution No. 2017-52. 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.
Administration clarified that the terms were being amended to essentially the same as the
originally negotiated terms; also clarified that the balloon payment funds would be received for
utilizing with the remaining grant funds within the required timeframe for the grant.
VOTE: There was no objection; SO ORDERED.
9. Resolution No. 2017-53 — Supporting Kenai Peninsula Borough Ordinance 2017-17,
Establishing an 8 Percent Areawide Sales Tax on Temporary Lodging and Providing for an
Exemption of up to 4 Percent of the Levy on Temporary Lodging Within the Boundaries of
Cities in The Borough that Levy a Similar Sales Tax in Addition to an Existing General Sales
Tax, Subject to Approval by the Voters in the Regular Election on October 3, 2017.
A19111118 in
Council Member Navarre MOVED to adopt Resolution No. 2017-53 and the motion was
SECONDED by Council Member Knackstedt.
Mayor Gabriel opened the public hearing.
Bob McIntosh spoke against the resolution, noting he was against the ordinance as it seemed to
put the cities at a disadvantage because the language gives the entire levied tax to the Borough
if a City didn't implement its own tax and he didn't think it was fair.
There being no one else wishing to be heard, public comment was closed.
It was noted that the borough had amended their ordinance amending the rate.
MOTION TO AMEND:
Council Member Molloy MOVED to amend the seventh whereas clause to read, "Whereas, this
Resolution of support does not obligate the City to enact a bed tax but if a majority of Borough
qualified voters approve Ordinance 2017-17 as amended on the October 3, 2107 Kenai Peninsula
Borough ballot, then the City must enact its own bed tax in order to participate in the borough -
wide rate of 6% with 3% remitted to the City of Kenai," and the motion was SECONDED by Council
Member Navarre.
MOTION TO AMEND THE AMENDMENT:
Council Member Molloy MOVED to amend the amendment by replacing the words, "borough -
wide rate of 6% with 3%," with the words, "City's exemption share in the borough -wide rate," and
the motion was SECONDED by Council Member Knackstedt.
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VOTE TO AMEND THE AMENDMENT:
YEA: Knackstedt, Glendening, Gabriel, Pettey, Navarre, Molloy
NAY:
MOTION PASSED UNANIMOUSLY.
UNANIMOUS CONSENT was requested on the motion to amend.
VOTE TO AMEND: There being no objection; SO ORDERED.
MOTION TO AMEND:
Council Member Molloy MOVED to amend by replacing 8% with 6% and 4% with 3% in every
other instance in the document and the motion was SECONDED by Council Member Knackstedt.
DIVISION OF THE QUESTION:
Council Member Navarre required the division of the question with the resolved statement taken
separately from the rest of the resolution.
A brief at ease was taken for the Acting City Clerk to confer with Council Member Navarre and
the City Attorney.
After reconvening the meeting, the division of the question and the motion to amend the
percentage amounts were withdrawn.
MOTION TO AMEND:
Council Member Navarre MOVED to amend the fourth whereas clause to read, "Whereas, under
the Borough Ordinance, a bed tax rate would be established and would apply to "temporary
lodging," defined as "a service to provide any lodging of less than one month," and would include
motels, hotels, and bed and breakfasts within the City of Kenai," the fifth whereas clause to delete
the first instance of "4%," replace the words "rate of 8%" with the words, "bed tax," and replace
the second instance of "4%" with "50%," and the resolved statement by deleting,"8%," and
replacing "4%" with "50%," and requested UNANIMOUS CONSENT. The motion was
SECONDED by Council Member Molloy.
VOTE: There was no objection; SO ORDERED.
MOTION TO AMEND:
Council Member Knackstedt MOVED to amend the title by deleting the words, "eight percent,"
and by replacing the word "four' with the word "fifty," and requested UNANIMOUS CONSENT.
The motion was SECONDED by Council Member Molloy.
VOTE: There was no objection; SO ORDERED.
UNANIMOUS CONSENT was requested on the main motion.
VOTE ON THE MAIN MOTION: There was no objection; SO ORDERED.
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E. MINUTES
1.'Regular Meeting of July 5, 2017
Meeting minutes approved by the consent agenda.
UNFINISHED BUSINESS
Ordinance No. 2969-2017 — Amending Kenai Municipal Code Title 24 — Municipal
Cemetery, to Update Procedures for Development of Cemetery Regulations and
Opening and Closing of Graves, and to Provide Regulations in the Cemetery
Regulations Appendix for Columbarium Niches, Marker or Headstone Deposits, and
Other Housekeeping Changes.
[Clerk's Note: This item was postponed to this meeting from the July 5 meeting. A
motion to amend is on the floor.]
The amendment motion from the July 5 meeting was read into the record.
Due to the Attorney's suggested amendment, it was requested that the amendment motion be
voted down.
VOTE ON THE AMENDMENT:
YEA: Glendening
NAY: Knackstedt, Gabriel, Pettey, Navarre, Molloy
MOTION FAILED.
MOTION TO AMEND:
Council Member Knackstedt MOVED to amend Section 3 by replacing the word "his" with the
word "their," and amending the last sentence to read, "Opening and closing of graves shall be
conducted by a contractor or business licensed and insured in the State of Alaska as an
embalmer, funeral director or mortuary establishment." The motion was SECONDED by Council
Member Molloy who requested UNANIMOUS CONSENT.
VOTE ON THE AMENDMENT: There was no objection; SO ORDERED.
VOTE ON THE MAIN MOTION:
YEA: Knackstedt, Gabriel, Pettey, Navarre, Molloy, Boyle, Glendening
NAY:
MOTION PASSED UNANIMOUSLY.
2. Resolution No. 2017-43—Amending its Comprehensive Schedule of Rates, Charges,
and Fees to Incorporate Changes to Cemetery Fees.
[Clerk's Note: This item was postponed to this meeting from the July 5 meeting. A
motion to adopt is on the floor.]
MOTION TO AMEND:
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Council Member Knackstedt MOVED to amend by changing the effective date in Section 3 to
September 1, 2017 to match the effective date of Ordinance No. 2969-2017. The motion was
SECONDED by Council Member Molloy who requested UNANIMOUS CONSENT.
VOTE ON THE AMENDMENT: There was no objection; SO ORDERED.
UNANIMOUS CONSENT was requested on the main motion.
VOTE ON THE MAIN MOTION: There was no objection; SO ORDERED.
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. 2973-2017 — Accepting and Appropriating a Grant from the State of
Alaska for the Purchase of Library Books.
Introduced by the consent agenda and public hearing set for August 16, 2017.
4. *Ordinance No. 2974-2017 — Accepting and Appropriating a Grant from the United
States Department of Transportation Passed Through the State of Alaska Department
of Transportation and Public Facilities for the Reduction of Fatalities and Injuries on
Roadways.
Introduced by the consent agenda and public hearing set for August 16, 2017.
5. *Ordinance No. 2975-2017 — Appropriating Funds in the Airport Fund, Accepting a
Grant From the Federal Aviation Administration and Appropriating Funds in the Airport
Capital Project Fund for the Terminal Building Rehabilitation Project and Awarding a
Contract to Wince-Corthell-Bryson Consulting Engineers for Design Services.
Introduced by the consent agenda and public hearing set for August 16, 2017.
6. *Ordinance No. 2976-2017 — Increasing Estimated Revenues and Appropriations by
$15,371 in the Airport Fund and in the Airport Improvement Capital Project Fund for
the 2016 Airport Fencing Rehabilitation Project.
Introduced by the consent agenda and public hearing set for August 16, 2017.
7. *Ordinance No. 2977-2017 — Amending Kenai Municipal Code Sections 14.20.151 —
Application for Conditional Use Permit for Surface Extraction of Natural Resources,
14.20.152 — Review of Application, 14.20.153 — Public Hearing, 14.20.154 — Issuance
of Permit, 14.20.155 — Operation, 14.20.156 — Yearly Review, 14.20.157 —
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Termination, 14.20.158 — Amendment or Transfer, to Allow the City Planner to
Determine Application Completeness and Making Other Housekeeping Changes.
Introduced by the consent agenda and public hearing set for August 16, 2017.
8. *Ordinance No. 2978-2017 — Increasing Congregate Housing Fund Estimated
Revenues and Appropriations to Provide Repair and Maintenance Funds That Were
Inadvertently Omitted from the Funds FY2018 Budget.
Introduced by the consent agenda and public hearing set for August 16, 2017.
9. Action/Approval — Mayoral Nomination and Council Confirmation of Clyde Crandall
to the Harbor Commission.
MOTION:
Council Member Knackstedt MOVED to confirm the appointment nomination of Clyde Crandall to
the Harbor Commission. The motion was SECONDED by Council Member Molloy who requested
UNANIMOUS CONSENT.
Mr. Crandall's application was read into the record.
VOTE: There being no objection; SO ORDERED.
H. COMMISSION/COMMITTEE REPORTS
1. Council on Aging — No report; Next meeting August 10.
2. Airport Commission — It was reported that at their July 13 meeting the Commission
discussed the Master Plan and recommended its approval; discussed Lawton Acres
ordinance and made a recommendation; next meeting August 10.
3. Harbor Commission — It was reported that at their July 10 meeting the Commission
met and elected a new Chair and Vice Chair, postponed consideration of the
Landscape Site Plan ordinance to August, and discussed the former no wake zone at
the mouth of the river; Next meeting August 7.
4. Parks and Recreation Commission — No report; next meeting September 7.
5. Planning and Zoning Commission — It was reported that the Commission approved a
plat for the Dragseth property at their July 26 meeting and postponed Hilcorp's lease
application to their next meeting; next meeting August 9.
6. Beautification Committee — It was reported that on July 11 the Parks and Recreation
Commission and the Beautification Committee provided a recommendation on the
Landscape Site Plan ordinance; next meeting September 12.
7. Mini -Grant Steering Committee — No report.
REPORT OF THE MAYOR
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Mayor Gabriel reported on the following:
• Met with the delegation from Kenai's Sister City, Akita, Japan.
J. ADMINISTRATION REPORTS
1. City Manager — P. Ostrander reported on the following:
• Attended an Economic Development Forum;
• Interviewed and hired a Senior Center Director;
• Participating in an effort with Stephanie Queen from the City of
Soldotna to retain or attract young people;
• Finalizing MOU's with the Kenai Chamber of Commerce on the
Eagle Cam feed and selling ads for the Dipnet App;
• Reported that initial results showed dipnet fishery revenues were
down;
• Reported that the comment period for the Bluff Erosion Project was
open until July 21 and a majority of the comments had been
positive.
2. City Attorney — No Report.
3. City Clerk — J. Heinz reported on the following:
• Lifted the conditional protest on Peninsula Botanicals, LLC;
• In soft start phase on PEAK Agenda Management and would
continue moving forward;
• Attended the "How to Run for Local Office' workshop provided by
the Kenai Peninsula Borough Clerk and League of Women Voters;
• Reported the Candidate filing period for City Council opened on
August 1, and continued through August 15.
K. ADDITIONAL PUBLIC COMMENT
1. Citizens Comments (Public comment limited to five (5) minutes per speaker)
2. Council Comments
Vice Mayor Navarre thanked those that testified throughout the process regarding Lawton Acres.
Council Member Knackstedt noted it was his 31" Anniversary.
Council Member Pettey echoed Vice Mayor Navarre.
Council Member Glendening thanked the City Manager and staff on their attention to items on the
agenda; noted Alaska's GDP was down.
L. EXECUTIVE SESSION
1. Review and Discussion of Candidates, Interview Questions, and Interview Dates for
the City Clerk Position. [AS 44.62.310(C)(2)(3) a Subject that Tends to Prejudice the
Reputation and Character of an Applicant and Matters which by Law, Municipal
Charter, or Ordinance are Required to be Confidential.]
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MOTION:
Council Member Molloy MOVED to convene in executive session to discuss candidates, interview
questions, and interview dates, for the City Clerk position, a subject that tends to prejudice the
reputation and character of an applicant and matters which law, municipal charter, or ordinance
are required to be confidential per AS 44.62.310(C)(2)(3) and requested the City Manager be
available and the motion was SECONDED by Council Member Navarre.
VOTE:
YEA: Gabriel, Knackstedt, Navarre, Pettey, Molloy, Glendening
NAY:
MOTION PASSED UNANIMOUSLY.
Council reconvened in regular session and noted interview questions were approved; thanked
the City Manager for assembling the packets for the interviews.
M. PENDING ITEMS — None.
N. ADJOURNMENT
There being no further business before the Council, the meeting was adjourned at 10:35 p.m.
I certify the above represents accurate minutes of the Kenai City Council meeting of August 2,
2017.
City Clerk
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