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HomeMy WebLinkAbout2026-05-06 Council MinutesKENAI CITY COUNCIL — REGULAR MEETING MAY 6, 2026 — 6:00 P.M. KENAI CITY COUNCIL CHAMBERS 210 FIDALGO AVE., KENAI, AK 99611 MAYOR HENRY H. KNACKSTEDT, PRESIDING MINUTES A. CALL TO ORDER A Regular Meeting of the Kenai City Council was held on May 6, 2026, in City Hall Council Chambers, Kenai, AK. Mayor Knackstedt called the meeting to order at approximately 6:00 p.m. 1. Pledge of Allegiance Mayor Knackstedt led those assembled in the Pledge of Allegiance. 2. Roll Call There were present Henry Knackstedt, Mayor Victoria Askin, Vice Mayor Sovala Kisena Bridget Grieme Deborah Sounart Glenese Pettey Phil Daniel A quorum was present. Absent: Sovala Kisena Also in attendance were: **Josh Bolling, Student Representative Terry Eubank, City Manager Scott Bloom, City Attorney David Swarner, Finance Director Kevin Buettner, Planning Director Tyler Best, Parks and Recreation Director Lee Frey, Public Works Director Mary Bondurant, Interim Airport Manager Ryan Coleman, Police Sergeant Logan Parks, Deputy City Clerk 3. Agenda and Consent Agenda Approval Mayor Knackstedt noted the following additions to the Packet: Add to item E.2. Public Hearing - Ordinance No. 3514-2026 • Ordinance No. 3514-2026 (Substitute) Add to item E.S. Public Hearing - Ordinance No. 3517-2026 • Amendment Memo Add item E.B. Public Hearing - Resolution No. 2026-31 • Public Comments Add to item G.1. Unfished Business - Ordinance No. 3510-2026 and Ordinance No. 3510-2026 (Substitute) • April 29, 2026 Planning & Zoning Commission Draft Minutes City of Kenai Council Meeting Page 1 of 10 May 6, 2026 Add item H.9. Action/Approval - Purchase Orders and Purchase Order Amendments Requiring Council Approval in Accordance with KMC 7.15.020. (Administration) • HDL Engineering Consultants - Water Treatment Plant Pumphouse Project MOTION: Vice Mayor Askin MOVED to approve the agenda and consent agenda with the requested revisions Council Member Pettey SECONDED the motion. The items on the Consent Agenda were read into the record. Mayor Knackstedt opened the floor for public comment on consent agenda items; there being no one wishing to be heard, the public comment period was closed. UNANIMOUS CONSENT was requested. VOTE: There being no objection; 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 ADMINISTRATIVE REPORTS - None C. SCHEDULED PUBLIC COMMENTS - None. D. UNSCHEDULED PUBLIC COMMENTS - None. E. PUBLIC HEARINGS 1. Ordinance No. 3513-2026 - Amending Kenai Municipal Code Chapter 7.15 - Purchases and Sales, to Remove Requirements to Publish Advertisements in Newspapers. (Administration) MOTION: Vice Mayor Askin MOVED to enact Ordinance No. 3513-2026. Council Member Sounart SECONDED the motion. Mayor Knackstedt opened the floor for public comment. There being no one wishing to be heard, the public comment period was closed. A summary overview of the memorandum as included in the packet and attached to Ordinance No. 3513- 2026 was provided. VOTE: YEA: Daniel, Grieme, Askin, Pettey, Sounart, Knackstedt NAY: None ABSENT: Kisena **Student Representative Bolling: Yea MOTION PASSED. 2. Ordinance No. 3514-2026 - Increasing Estimated Revenues and Appropriations in the General Fund and Airport Fund and Awarding a Contract for Purchase of Firefighting Foam. (Administration) City of Kenai Council Meeting Page 2 of 10 May 6, 2026 • Ordinance No. 3514-2026 (Substitute) - Increasing Estimated Revenues and Appropriations in the General Fund and Airport Fund and Awarding a Contract for Purchase of Firefighting Foam. (Administration) MOTION: Vice Mayor Askin MOVED to enact Ordinance No. 3514-2026. Council Member Sounart SECONDED the motion. Mayor Knackstedt opened the floor for public comment. There being no one wishing to be heard, the public comment period was closed. MOTION TO AMEND: Vice Mayor Askin MOVED to amend Ordinance No. 3514-2026 by Ordinance No. 3514-2026 (Substitute). Council Member Pettey SECONDED the motion. UNANIMOUS CONSENT was requested on the motion to amend by Substitute. VOTE: Motion APPROVED, without objection. A summary overview of the memorandum as attached to Ordinance No. 3514-2026 (Substitute) was provided; and information related to the decontamination process was provided. Clarification was provided on the process to complete the foam replacement. VOTE ON MAIN MOTION AS AMENDED BY SUBSTITUTION: YEA: Grieme, Askin, Pettey, Sounart, Knackstedt, Daniel NAY: None ABSENT: Kisena **Student Representative Bolling: Yea MAIN MOTION AS AMENDED BY SUBSTITUTION PASSED. 3. Ordinance No. 3515-2026 - Increasing Estimated Revenues and Appropriation in the Airport Snow Removal Equipment Capital Project Fund to Transfer Residual Balance from a Completed Project Back to the Original Funding Source. (Administration) MOTION: Vice Mayor Askin MOVED to enact Ordinance No. 3515-2026. Council Member Sounart SECONDED the motion. Mayor Knackstedt opened the floor for public comment. There being no one wishing to be heard, the public comment period was closed. VOTE: YEA: Askin, Pettey, Sounart, Knackstedt, Daniel, Grieme NAY: None ABSENT: Kisena **Student Representative Bolling: Yea MOTION PASSED. 4. Ordinance No. 3516-2026 - Increasing Estimated Revenues and Appropriations in the General Fund - Fire Department for Overtime Costs in Excess of Budgeted Amounts. (Administration) MOTION: Vice Mayor Askin MOVED to enact Ordinance No. 3516-2026. Council Member Grieme SECONDED the motion. Mayor Knackstedt opened the floor for public comment. There being no one wishing to be heard, the public comment period was closed. City of Kenai Council Meeting Page 3 of 10 May 6, 2026 VOTE: YEA: Pettey, Sounart, Knackstedt, Daniel, Grieme, Askin NAY: None ABSENT: Kisena **Student Representative Bolling: Yea MOTION PASSED. 5. Ordinance No. 3517-2026 - Increasing Estimated Revenues and Appropriations in the General Fund and Authorizing a Consulting Agreement to Evaluate Natural Gas Storage Opportunities on Kenai Municipal Airport Lands. (Administration) MOTION: Vice Mayor Askin MOVED to enact Ordinance No. 3517-2026. Council Member Daniel SECONDED the motion. Mayor Knackstedt opened the floor for public comment. There being no one wishing to be heard, the public comment period was closed. MOTION TO AMEND: Vice Mayor Askin MOVED to amend the Ordinance No. 3517-2026 as follows: Section 2, to read: "That the City Manager is authorized to execute a change order to the contract with Alaska Marine Power, LLC in the amount of $30,000 for a total contract amount of $60,000 for consulting services." Council Member Sounart SECONDED the motion. UNANIMOUS CONSENT was requested on the motion to amend. VOTE: Motion APPROVED, without objection. Clarification was provided this additional amount was requested because the original appropriation was almost exhausted; and the administration hoped this funding would be sufficient, it would depend on how prolonged the process would be. VOTE MAIN MOTION AS AMENDED: YEA: Sounart, Knackstedt, Daniel, Grieme, Askin, Pettey NAY: None ABSENT: Kisena **Student Representative Bolling: Yea MAIN MOTION AS AMENDED PASSED. 6. Resolution No. 2026-29 - Authorizing the Purchase of a new Ventrac Tractor and Attachments Utilizing Innovative Procurement. (Administration) MOTION: Vice Mayor Askin MOVED to adopt Resolution No. 2026-29. Council Member Grieme SECONDED the motion. Mayor Knackstedt opened the floor for public comment. There being no one wishing to be heard, the public comment period was closed. UNANIMOUS CONSENT was requested. VOTE: Motion APPROVED, without objection. 7. Resolution No. 2026-30 - Authorizing a Contract Award for the 2026 Fire Systems Testing, Inspection and Monitoring. (Administration) MOTION: City of Kenai Council Meeting Page 4 of 10 May 6, 2026 Vice Mayor Askin MOVED to adopt Resolution No. 2026-30. Council Member Sounart SECONDED the motion. Mayor Knackstedt opened the floor for public comment. There being no one wishing to be heard, the public comment period was closed. UNANIMOUS CONSENT was requested. VOTE: Motion APPROVED, without objection. 8. Resolution No. 2026-31 - Authorizing the City Manager to Enter into an Airline Operating Agreement and Terminal Area Lease with Fox Air, LLC. (Administration) MOTION: Vice Mayor Askin MOVED to adopt Resolution No. 2026-31. Council Member Sounart SECONDED the motion. Mayor Knackstedt opened the floor for public comment. There being no one wishing to be heard, the public comment period was closed. Clarification was provided that the operating plan was six flights per day, six days a week; and the aircraft was a nine -passenger caravan aircraft. There was discussion regarding a public comment letter received; proceeding with the approval and encouraging the administration to conduct additional due diligence prior to execution of the lease; and the importance of maintaining summer service. UNANIMOUS CONSENT was requested. VOTE: Motion APPROVED, without objection. 9. Resolution No. 2026-32 - Authorizing Extension of a Contract for Purchase of Water and Wastewater Chemicals. (Administration) MOTION: Vice Mayor Askin MOVED to adopt Resolution No. 2026-32. Council Member Sounart SECONDED the motion. Mayor Knackstedt opened the floor for public comment. There being no one wishing to be heard, the public comment period was closed. Clarification was provided that the current provider agreed to extend the same price from last year. UNANIMOUS CONSENT was requested. VOTE: Motion APPROVED, without objection. 10. Resolution No. 2026-33 - Authorizing Extension of a Contract for Refueling Services for City Facility Fuel Tanks. (Administration) MOTION: Vice Mayor Askin MOVED to adopt Resolution No. 2026-33. Council Member Sounart SECONDED the motion. Mayor Knackstedt opened the floor for public comment. There being no one wishing to be heard, the public comment period was closed. A summary overview of the memorandum as included in the packet and attached to Resolution No. 2026- 33 was provided; and clarification was provided the items was brought forward because of the increase in rate. City of Kenai Council Meeting Page 5 of 10 May 6, 2026 UNANIMOUS CONSENT was requested. VOTE: Motion APPROVED, without objection. 11. Resolution No. 2026-34 - Affirming City Support of Non -Discrimination Policies as Outlined in Title VIII of the 1968 Civil Rights Act Known as the Federal Fair Housing Act to Comply with Certain Grant Requirements. (Administration) MOTION: Vice Mayor Askin MOVED to adopt Resolution No. 2026-34. Council Member Sounart SECONDED the motion. Mayor Knackstedt opened the floor for public comment. There being no one wishing to be heard, the public comment period was closed. Clarification was provided that the City does already operate in compliance; however, this is one of the required conditions of the Community Development Block grant associated with the City's partnership with Kenai Peninsula Housing Initiative. UNANIMOUS CONSENT was requested. VOTE: Motion APPROVED, without objection. F. MINUTES 1. *Regular Meeting of April 22, 2026. (City Clerk) Approved by the consent agenda. G. UNFINISHED BUSINESS 1. Ordinance No. 3510-2026 - Amending the Official Zoning Map by Rezoning the Property at 10060 Kenai Spur Highway from Conservation to Suburban Residential Zoning District. (Administration) Ordinance No. 3510-2026 (Substitute) - Amending the Official Zoning Map by Rezoning a Portion of the Property at 10060 Kenai Spur Highway from Conservation to Suburban Residential Zoning District. (Administration) [March 18, 2026 referred to March 25, 2026 Planning & Zoning Commission meeting and postponed to April 1, 2026; April 1, 2026 postponed to May 6, 2026; May 6, 2026 referred to the May 27, 2026 Planning Commission and postponed to June 3, 2026.] [Clerk's Note: The motion to enact Ordinance No. 3510-2026 was on the floor from the April 1, 2026 City Council Meeting.] Mayor Knackstedt opened the floor for public comment on Ordinance No. 3510-2026. There being no one wishing to be heard, the public comment period was closed. Clarification was provided that the original Ordinance was to rezone the entire parcel and the substitute was to rezone only a portion of the parcel. MOTION TO AMEND: Council Member Daniel MOVED to amend Ordinance No. 3510-2026 by Ordinance No. 3510-2026 (Substitute) Council Member Sounart SECONDED the motion. UNANIMOUS CONSENT was requested on the motion to amend by substitute. VOTE: Motion APPROVED, without objection. Mayor Knackstedt opened the floor for public comment on Ordinance No. 3510-2026 Substitute. There being no one wishing to be heard, the public comment period was closed. City of Kenai Council Meeting Page 6 of 10 May 6, 2026 MOTION TO AMEND: Vice Mayor Askin MOVED to amend Ordinance No. 3510-2026 Substitute as follows: Thirteenth whereas clause to read, "at their regularly scheduled meeting held on April 29, 2026, the Planning & Zoning Commission recommended that the City Council rezone the portion of the property at 10060 Kenai Spur Highway from Conservation to Rural Residential." Council Member Daniel SECONDED the motion. UNANIMOUS CONSENT was requested on the motion to amend. VOTE: Motion APPROVED, without objection. It was reported that the Planning and Zoning Commission improperly entered into adjudicative session while acting in a legislative capacity; and it was recommended that the Council postpone action on the substitute ordinance and refer the matter back to the Planning and Zoning Commission to conduct a new public hearing to cure the Open Meetings Act violation. Clarification was provided regarding portions of former airport land have been rezoned for other uses; the proposed rezone involves approximately ten acres; the proposed rezone would remove initial development barriers by establishing zoning prior to subdivision; future development would require due diligence; there have been no formal studies related to traffic impacts or property value impacts; and roadway classifications and future traffic analysis requirements would depend on the scale and type of future developments. MOTION TO REFER AND POSTPONE: Vice Mayor Askin MOVED to refer Ordinance No. 3510-2026 (Substitute) to the May 27, 2026 Planning and Zoning Commission Meeting and to Postpone to the June 3, 2026. Council Member Sounart SECONDED the motion. UNANIMOUS CONSENT was requested on the motion to refer and postpone. VOTE: Motion APPROVED, without objection. H. NEW BUSINESS 1. *Action/Approval - Bills to be Ratified. (Administration) Approved by the consent agenda. 2. *Action/Approval - Consent to Assignment of Lease Agreement, of Lot 1, Block 5, General Aviation Apron No. 1 Amended. (Administration) Approved by the consent agenda. 3. *Action/Approval - Special Use Permit to Weaver Brothers, Inc. for Truck Trailer Storage. (Administration) Approved by the consent agenda. 4. *Ordinance No. 3518-2026 - Amending Kenai Municipal Code Title 6 - Elections, Chapters 6.05, 6.15 and 6.40 Relating to Election Dates, Candidate Filing, Compensation of Election Officials, and Canvassing of Elections. (City Clerk) Introduced by the consent agenda and Public Hearing set for May 20, 2026. 5. *Ordinance No. 3519-2026 - Accepting and Appropriating Grant Funds from the Alaska High Intensity Drug Trafficking Area for Drug Investigation Overtime Expenditures (Administration) Introduced by the consent agenda and Public Hearing set for May 20, 2026. City of Kenai Council Meeting Page 7 of 10 May 6, 2026 6. *Ordinance No. 3520-2026 - Amending Kenai Municipal Code Chapter 14.10 - Subdivision Regulations and Amending Kenai Municipal Code Section 18.10.030 - Street Improvements to Remove Road Design Standards from Code and Replace them with a Street Design Standards Manual. (Administration) Introduced by the consent agenda and Public Hearing set for May 20, 2026. 7. Action/Approval - Council on Aging Commission 2026 Work Plan. (Council on Aging Commission) MOTION: Vice Mayor Askin MOVED to approve the Council on Aging 2026 Work Plan. Council Member Sounart SECONDED the motion. UNANIMOUS CONSENT was requested on the motion. VOTE: Motion APPROVED, without objection. 8. Discussion - Parks and Recreation Masterplan Memo. (Administration) Council Work Session on the Parks and Recreation Masterplan Work Session was scheduled for May 20, 2026 at 5:00 p.m. 9. *Action/Approval - Purchase Orders and Purchase Order Amendments Requiring Council Approval in Accordance with KMC 7.15.020. (Administration) Added to the Consent Agenda at the setting of the Agenda and Approved by the Consent Agenda. I. COMMISSION / COMMITTEE REPORTS 1. Council on Aging Commission Council on Aging Commission 2025 Annual Report No report, next meeting May 14, 2026. 2. Airport Commission No report, next meeting May 14, 2026. 3. Parks and Recreation Commission No report, next meeting May 7, 2026. 4. Planning and Zoning Commission Council Member Daniel reported on the April 29, 2026 meeting, next meeting May 13, 2026. 5. Beautification Commission No report, next meeting May 12, 2026. J. REPORT OF THE MAYOR Mayor Knackstedt reported on the following: • Stated appreciation for the participation and presentations at the Budget Work Session. • Thanked Deputy Clerk Parks for filling in during the Clerks absence. K. ADMINISTRATION REPORTS 1. City Manager - City Manager Eubank reported on the following: City of Kenai Council Meeting Page 8 of 10 May 6, 2026 • Staffing update. • Attended the 2026 Industry Overview Forum in Seward; Regulatory Commission Hearing on Natural Gas Storage. • Application was submitted for the Small Community Air Service Development Program. • Runway Rehabilitation Project update. • Airport Restaurant was closing on May 23, 2026, a request for proposals will be issued. • Aleutian Airlines will suspend services in April and May due to fuel allocation issues. • Portions of Mission Avenue from Eric Hansen Scout Park to the Kenai Bible Church will be closed due to significant sluffing creating unsafe condition for vehicles and pedestrians; property owners will be granted exceptions. • Senator Murkowski has included funding for the City's drinking water improvements in her spending request. • Glenfarne hosting a lunch at the Visitor Center on May 18, 2026. • Upcoming events: Summer Reading Program and Plant Day. 2. City Attorney - City Attorney Bloom reported on the following: • Providing a series of presentations on teamwork, conflict resolution and dealing with difficult personalities at the Kenai Peninsula Borough District Student Council Meeting on April 29. 2026. 3. City Clerk - No report. L. ADDITIONAL PUBLIC COMMENTS 1. Citizen Comments (Public comments limited to (5) minutes per speaker) - None. 2. Council Comments Student Representative Bolling recognized multiple Kenai Central High School student leaders for their selection to various Kenai Peninsula Borough School District, district level committees; reported on spring sports activities and the success of the Kenai Central High School Prom; thanked the Kenai Recreation Center and Kenai Senior Center for after -prom activities; and stated appreciation for City Attorney Blooms participation as a guest speaker at the annual Student Council Regional Meeting. Council Member Sounart thanked the Administration and staff for their work on the budget, acknowledging the long-range financial planning efforts; and thanked Deputy Clerk Parks. Council Member Daniel noted he was unable to attend the Budget Work Session, he was able to meet with the Finance Director to discuss budget related questions and concerns. Council Member Grieme noted her appreciation for City staff and the services provided to residents; thanked staff participating in the Budget Work Session; and stated her confidence in the City's financial planning efforts. Council Member Pettey noted she was looking for ward to the budget for the upcoming year; and stated her agreement with Council Members Sounart and Grieme on the budget process. Vice Mayor Askin noted her appreciation for the City staff and departmental presentations during the Budget Work Session; reported attending the Carking for the Kenai Award Ceremony; and attending the Industry Overview Forum. EXECUTIVE SESSION - None City of Kenai Council Meeting Page 9 of 10 May 6, 2026 M. PENDING ITEMS N. ADJOURNMENT O. INFORMATIONAL ITEMS - None. There being no further business before the Council, the meeting was adjourned at 7:56 p.m. I certify the a ove presents accurate minutes of the Kenai City Council meeting of May 6, 2026. Mlc elle er, MC City Clerk ** The student representative may cast advisory votes on all matters except those subject to executive session discussion. Advisory votes will not affect the outcome of the official council vote. Advisory votes will be recorded in the minutes. A student representative may not move or second items during a council meeting. City of Kenai Council Meeting Page 10 of 10 May 6, 2026