City Council - Regular Meeting

You're on the record. Okay. Okay. I'd like to call to order the May 6th, 2026 city council meeting. Uh if you're able, please uh rise and join me for the pledge of allegiance to the flag of the United States of America and to the republic for which it stands. One nation under God, indivisible, with liberty and justice for all. Clerk, please call the role. Thank you. Mayor Nstead, here. Council member Daniel here. Council member Grimmie here. Vice Mayor Asin here. Council member Petty

here. Council member Cassenna is absent. Council member Sonart here. And student representative Bowling here. You have a quorum.

Okay. Thank you, council. Before we get to the agenda and consent agenda approval, I'd like to bring to your attention the layown materials that you have before you. Um item H9 add item new business consent agenda purchase orders for over $35,000 which need council approval brought to us by administration. Item E2 public hearings ordinance number 35142026 substitute also brought to us by administration. Add item E5, public hearings, ordinance 3517206, amendment brought to us by administration. Um item E8, a public comment, uh provided by the city clerk and add item G1, unfinished business, uh planning and zonings draft minutes brought to us by administration. Also, uh, pleasure of counsel,

I move I move that we approve the agenda and consent agenda with laydowns and ask unanimous consent. I'll second. Are there any additional revisions to the agenda or consent agenda from council?

Seeing no one, uh, would the clerk please read the consent agenda items into the record? Thank you, mayor. Regular meeting minutes of April 22nd, 2026. Action approval. Bills to be ratified. Brought to you by the administration. Action approval. Consent to assignment of lease agreement of lot one block 5 general aviation apron number one amended. Brought to you by the administration. Action approval. Special use permit to Weaver Brothers, Inc. for truck trailer storage brought to you by administration. The introduction of ordinance number 3518-2026 amending Kenai Municipal Code Title 6 elections chapters 6.05, 6.15, and 6.40. 40 relating to election dates, candidate filing, compensation of election officials, and canvasing of elections brought to you by the city clerk with a public hearing date of May 20th, 2026. the introduction of ordinance number 3519-2026 accepting and appropriating grant funds from the Alaska High Intensity Drug Trafficking Area for drug investigation overtime expedentures brought to you by administration with a public hearing date of May 20th to 2026 and the introduction of ordinance number 3520-2026 amending Kenai Municipal Code Chapter 14.10 subdivision regulations and amending Kenai Municipal Code section 18.10.030 030 street improvements to remove road design standards from code and replace them with a street design standards manual brought to you by administration with the public hearing date of May 20th, 2026. And that is your consent agenda.

Thank you for that. Are there any uh public comments on any of the consent agenda items just read by the clerk? Seeing no one, uh unanimous consent was requested. Are there any objections? Uh hearing no objection, the agenda and consent agenda are approved. There are no scheduled administrative reports. Under C, there are no scheduled public comments. Um that brings us to unscheduled public comments. Are there any members from the public who would like to speak on any any item not scheduled for public hearing on this agenda? Anybody online? There is nobody online.

Okay. So that brings us down to uh public hearings. The first public hearing before us tonight is ordinance 3513 2026 amending Kenai Municipal Code Chapter 7.15 purchases and sales to remove requirements to publish advertisements and newspapers brought to us by administration. Pleasure of councel vice mayor Asen. I move we enact ordinance number 3513-2026. I'll second.

Okay. Moved and seconded. Is there anybody from the general public that would like to speak to ordinance 3513206? Seeing no one, that brings it back to council for discussion. Commander Eubank, did you want to give us a report on this? Thank you, Mr. Mayor, members of council. Uh, I'm going to defer to our public works director. Um, he handles most of our procurement, so he can speak to this. Thank you. Um so this ordinance is for removing or modifying some sections of the purchasing code for uh KMC. Um we are trying to remove the requirements that we advertise in the local newspaper. Um our current code requires that we publish twice in newspapers to get advertisements out there. Um as we mentioned in the memo here, we've recently switched over to Bid Express. Um and we're seeing a lot of uh engagement on that. a lot of uh plan centers and things like that already subscribe and grab plans from that and can distribute it out um as well and it allows subcontractors to see what contractors are interested in projects and things like that. Um so it's getting a lot more engagement for us um using that online bidding platform that's free. Um so we don't see a need to do this anymore. Um and we are spending money every time we're advertising for projects to advertise these in the paper. Um and the the paper distribution is getting less and less and less. So, u we think this is a better solution moving forward. Any questions from council? Council member Grammy, how would the average like person Joe Mo who maybe I don't know wants to get into the contract business but hasn't broken the ice yet or wants to be aware. How would they know? I now they could read it in the paper. Um, obviously the paper version, not the online version. I know that those

notices aren't usually in the online version, but how how would that information then be accessible by the general public?

Thank you. So, right now, you can go on our website um and if you go to the the bids and RFPs section, it says, you know, all of our um bids and RFPs are now online through Bid Express. So, you click the link there and you just create a free account. Um once you're into the program um you can subscribe to certain places like if you wanted to receive every you know bid posting that was with the burrow with city satna with city of Kenai with city of Seward and city of Homer you know if there I know the burrow and satnner are both using bit express as well I don't know about sewer and homer um but in theory you're getting notices every time that you know new projects are posted on there so you can subscribe to those notices and get those automatically um other than that. It's just you most people are keeping an eye on it or browsing it regularly if they're not subscribed to it.

Thank you. Any further questions? I I do support this ordinance. Uh the burrow was mentioned uh they they the burough started using this about a decade ago and and uh so it's nothing new and uh actually at the time when it was news there were a lot of dirt contractors didn't like it but now it's the best thing that ever happened because they can get any updates. They can change a bid right at the last minute. They don't have to run down to the burrow and get it stamped in. They can do it online. It really works well. So it's it's well within their thinking. So anyway, I think this is good and I believe we're getting more bids too now that we're using it. So any further comments? Clerk, please call the role. Thank you, Mayor. Council member Daniel,

yes. Council member Grimmie, yes. Vice Mayor Askin, yes. Council member Petty, yes. Council member Cassenna is absent. Council member Sonart, yes. Mayor Nstead, yes. and student representative bowling. Yes.

You have six yes votes. Uh, ordinance number 3513-2026 is enacted. Okay. Uh now we have a forest ordinance uh uh 3514 20226 increasing estimated revenues and appropriations in the general fund and airport fund and awarding a contract to purchase of firefighting foam brought to it administration pleasure of councel. Vice mayor asken I move we enact ordinance 3514-2026. I'll second.

Is there anybody from the general public that would like to speak to ordinance 3514 20226? Seeing no one, that brings us back to council. Um, and I see we have on the layown, we have a substitute. So, do we have a motion to amend by substitute? I think there's a suggested amendment in the in the layown. Yes. Um, I move that we amend um, ordinance number 3514 with a PO increase of $96,295.

And request unanimous consent. I'll second that. Is there any objections to unanimous consent? Seeing none, um, ordinance 3514 2026 substitute is before us. Um, at this point, I'd like to go ahead and go back to the public. Is there any any public comment u on ordinance 35 2026 substitute? Seeing no one, that'll bring it back to council. Council comments. City Manager Eubank, did you want to uh fill us in on anything with this? If you would like me to. Absolutely.

Thank you, Mr. Mayor, members of council. Um appreciate uh the movement of the substitute. Um so ordinance 35142026 starts by um uh the city is in the process of replacing uh the firefighting foam that is used at the Kenai Municipal Airport. Uh it's also used in some of our apparatus from our main station here. Um that firefighting foam frankly was the only foam that was approved by the federal government um for decades. Um it has been determined that that foam is called AF. I don't I wish I could remember the actual name but uh the acronym is AF. Uh that firefighting foam contained um some forever chemicals namely um POS which is um no longer um acceptable and uh as a result they uh about I think it's been about 2 years ago now they um a substitute um product was developed and finally approved uh by US military and the FAA for use on airports. Um, so what the city's in the process, the overall process of doing is one, we have to uh decontaminate our existing equipment. So the machines or equipment that currently has the foam in it has all that has to be removed. Those things have to be cleaned and decontaminated. Um, we have to then dispose of all AF that we have because we no longer can use it. And then we must purchase a replacement foam. Um so this uh this ordinance um because the total cost of that project exceeded what we estimated in the FY26 budget. Um it one does two

things. It approves a um supplemental appropriation to provide the additional funding that we need to to affect the entire project. And then it authorizes the purchase of um the foam which we competitively bid. Now, the substitute was put before you tonight because there was a math error in the um lowest responsive bidder. It allowed us to reduce the original ordinance um by a little over $1,000 and that's why that was before you. But that that is what is um happening with ordinance 3514 2026. Council member Petty.

Um, city manager Eubank, when is the estimated time that all this process will be completed? Lee, do you know the timeline on

the foam? I believe will take approximately 12 weeks to ship. Um, we're hoping it'll come faster than that, but I believe that was what we put on the the bid date. Um, so we would need to take the trucks over one at a time. Um, they're going to a local vendor to get cleaned out. Um, and so I I'm assuming that's going to be a one at a time process because we're going to need to keep um trucks here active with foam ready to roll. And so it's kind of going to be a staggered process after that period. So our our equipment will still have foam until the new approved foam is available. Is that what I'm understanding, sir? any bank.

Thank you, Mr. Mayor. Council member Petty. Absolutely. Yeah. Um it's absolute requirement on the airfield and um you know, foam is only deployed by the fire. I wish chief was here to talk to this, but is as far as our normal apparatus over here in some very unique um situations. So um but yes, we'll absolutely maintain current foam until we have replacement foam and get that in place in service. Thank you. Any further discussion? Clerk, please call the role. Thank you. Council member Grimmie, yes. Vice Mayor Asen, yes. Council member Petty, yes. Council member Cassenna is absent. Council member Sonart,

yes. Mayor Nstead, yes. Council member Daniel, yes. Student Representative Bowling, yes. You have six yes votes. Ordinance number 3514-2026 substitute is enacted. Thank you very much. Now we're on item E3, ordinance 3515 2026, increasing estimated revenues and appropriations in the airport snow removal equipment capital project fund to transfer residual balance from a completed project back to the original funding source brought to us by administration. Pleasure of councel. Vice Mayor Askin. I move we enact ordinance number 3515-2026. I'll second.

Is there anybody from the general public that would like to speak to ordinance 352026?

Clerk, please call the role. Thank you. Vice Mayor Asen, yes. Council member Petty, yes. Council member Cassenna is absent. Council member Sonart, yes. Mayor Nstead, yes. Council member Daniel, yes. Council member Grimmie, yes. Student Representative Bowling, yes. You have six yes votes. Ordinance number 3515-2026 is enacted.

Thank you. That brings us to item E4. Ordinance number 35162026 increasing estimated revenues and appropriations in the general fund fire department and overtime costs in excess of budgeted amounts brought to us by administration. Pleasure of councel vice mayor asken. I move we enact ordinance number 3516-2026. I second that. Is there anybody from the general public that would like to speak to ordinance 35162026? Seeing no one, uh, they bring it back to council. Council discussion. Any discussion? Seeing no one, cler, please call the role.

Thank you. Council member Petty, yes. Council member Cassen, absent. Council member Sonart, yes. Mayor Nstead, yes. Council member Daniel, yes. Council member Grimmie, yes. Vice Mayor Askin, yes. Student Representative Bowling. Yes. You have six yes votes. Ordinance number 3516-2026 is enacted.

Thank you. Now we have item E5, ordinance 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 brought to us by administration. Pleasure of councel. Vice Mayor Askin. I move we enact ordinance number 3517-2026. Second. Okay, moved and seconded. Is there anybody from the general public that would like to speak to ordinance 35172026? Seeing no one, bring it back to councel. I see we have a recommended amendment on a layown. Vice Mayor Asen.

Yes. I move that we amend ordinance number 35172026 to execute a change order to the contract with Alaska Marine Power in the amount of $30,000 for a total contract amount of $60,000 for consulting services. I request unanimous consent. I'll second.

Unanimous consent was requested. Are there any objections? Seeing none, uh, we now before us we have ordinance 3517 2026 as amended. Um, council discussion. Thank you, mayor. Just perhaps an overview of why why we need to make this change from city manager. City manager Eubank.

Yeah. Thank you, Mr. Mayor, members of council. Um, so if if council recalls, uh, we, uh, council adopted ordinance 3507206, which appropriated $30,000 from the airport, um, to provide for consulting services related to, um, the city's analysis of of competing gas storage applications. um working with those consultants. Um I believe we're uh getting close to exhausting the original amount um under that contract. This ordinance will um provide an additional $30,000 um for consulting services bringing the total to $60,000. And it also is going to authorize because the original contract um was less than the amount that required council approval. Uh moving to a total contract of $60,000 uh require requires council approval. And um so this ordinance again does two things. appropriates an additional $30,000 for consulting services and it authorizes um a change order after the amendment was just made. Authorizes a change order of 30,000 bring total contract amount to 60,000 with Alaska Marine Power um LLC.

Any further discussion? Follow up. Go ahead. Um, do we feel this is going to be sufficient for the the work or u at the current burn rate or what are our thoughts with that? City manager, city manager Eubank.

Yeah, thank you, Mr. Mayor. Um, council member Daniel. Um, I hope that it is. I guess it just depends on how prolonged um this process is. We are um currently working um to schedule times to meet with the individual applicants and um start discussing um more specifics of potential leases and um so it's my hope that this is enough but um we'll have to see as that process evolves and and and moves forward. City Manager Eupank, if you didn't mention it already, you know, this is uh this consultant has uh experience and a knowledge uh beyond what what we have capable here at the city. That's why we're using this consultant.

Yeah. Thank you, Mr. Mayor, members of council. So, you know, I I can tell you that when Kina Municipal Code was uh written and adopted, it there there are no provisions in it, frankly, that envision some of the the leases that we're contemplating uh in the case of gas storage. Um when we were looking for uh to identify potential consultants that could assist the city, um one item that was a hurdle that we had to to try to work around was, you know, many of the oil and gas consultants in the state of Alaska either work for NSTAR or Hill Corp and would have conflicts of interest. So that ruled out a lot of parties. I think we're very fortunate um to find um the the gentleman at Alaska Marine Power. Um one of those has decades of you know high level executive experience with uh oil and gas projects in Alaska and and of varying sizes and states. Uh the other one has you know decades of experience as a landman for a major oil company and negotiating um these types of leases. So, we have expertise based both on the project level and on um uh negotiating leases and things like that for for these types of assets. So, I think we've identified a great team. They've been um you know, in my opinion, they've been a real asset to this point and um and I think they've been well worth what we're spending.

Thank you, Council Member Daniel. Sorry, one last thing. I just want to say I really appreciate the administration working diligently to find uh expertise in this uh because I know it's a very specialized process and uh I really appreciate that and bringing this forward and I'm definitely in support of this so we can hopefully make make informed decisions. Any further discussion? I want to say that I also do support this um and uh hopefully we can we can come to a resolution soon. Clerk, please call the role. Thank you. Council member Sonart, yes. Mayor Nstead, yes. Council member Daniel, yes. Council member Grimmie,

yes. Vice Mayor Asen, yes. Council member Petty, yes. Council member Cassenna is absent and student representative Bowling, yes. You have six yes votes. Ordinance number 3517-20226 is enacted as amended. Thank you. Now we are on item E6, resolution number 2026-29 authorizing the purchase of a new Ventrak tractor attachments utilizing innovative procurement admin from brought to us by administration pleasure of councel as mayor asken. I move we adopt resolution 2026-299 and request unanimous consent.

I second that. Is there anybody from the general public that would like to speak to resolution 2026-29? Nobody. Nobody online. Um, seeing no one, we'll bring it back to council. Consent was requested. Are there any objections? Any further council comments? Seeing none, resolution. It's okay. Okay, that's okay. Granny,

I I just wanted to comment that I appreciate that this moves towards um consistency. So, if we have the same brand, same parts, makes it easier and and I would assume more cost effective across the board. And then you'll have two tractors instead of just one for parks and wreck.

Absolutely. Any further discussion? Again, uh unanimous consent was requested. There there other no objections to that. Seeing none, resolution 2026-29 is adopted. That brings us to item E7, resolution 2026-30 authorizing a contract award for the 2026 fire systems testing, inspection, and monitoring brought to us by administration. Pleasure of counsel. Vice Mayor Asen. I move we adopt resolution 2026-30 and request unanimous consent. I'll second.

Is there anybody from the general public that would like to speak to resolution 2026-30? Seeing no one, um we'll bring it back to council for discussion. Council consent was requested. Are there any objections? Seeing none, resolution 2026-30 is adopted. Now we are on item E8, resolution 2026-31, authorizing the city manager to enter into an airline operating agreement and terminal lease area lease with Fox Air LLC brought to us by administration. Pleasure of councel. Vice Mayor Asen. I move that we adopt um resolution 2026-31 and request unanimous consent.

I'll second. Okay. Is there uh is there uh anybody um from the general public that would like to speak to resolution 2026-31? Okay. Seeing no one is uh bring it back to council. Council discussion. Council member uh Daniel. Sorry. I got you. Sonar. Were you about to say something? I'm sorry. Were you? No. Go ahead.

Okay. Just a quick curiosity. May for the city manager. Um, do they meet all the requirements uh in terms of uh for this lease agreement or we have not gotten to that stage yet? T manager up.

Yeah, thank you, Mr. Mayor. Um, council member Daniel, uh, I believe they do. So, their initial uh, operating plan is to operate six flights per day um, six days a week with no operations on Saturdays. They will be operating um the caravan. Uh it's a nine passenger aircraft. Um same aircraft operated by Grant Aviation. Um I have no reason to believe they can't meet our requirements. They've been clearly communicated to them and I can tell you that in anticipation of this being adopted. Uh we did receive um the initial deposit check from Fox Air today. It's a little over $25,000 deposit. they're required by the AOA uh to provide. Um but we will make sure that uh their certificates of insurance and all the other requirements are met prior to um uh initiating that AOA, the airline operating agreement with them, but um I have no reason to believe they won't.

Any further discussion? Council member Sonar, how timely do we need this lease? I know that we're looking at summer right around the corner, or at least we hope so. There's some sunshine out there now.

Um, I guess I have a concern about this letter of testimony here. And a couple of the allegations in here I think would be very easily checked out. And I'm just wondering if we if we push this for two weeks just to give um admin a chance to make a few phone calls and check this out. Um would that delay us for being ready to operate at summertime?

City manager Eubank or uh Mr. Bloom. Thank you. Uh, council member Nex said, I guess what I would recommend is um unless council has grave concerns that um council approve it with the contingency that administration will uh do some little additional due diligence. I'm not sure what we can do uh but we we can look into it more and wouldn't execute the lease and would bring it back to council if we found some concerns that would allow us to move forward in a timely man. I I share council member Gmy

I share council member Sonard's concerns. I think that the things that are said in in um Blaine Dempur's letter are significant enough to warrant concern. Um but certainly don't want to cut off our nose despite our face either because we we do need and could all could benefit from another carrier. Um, so I wouldn't want to eliminate that as an opportunity, but um I'd much rather have nothing than something bad. So I I I mean I trust that city um staff will do their due diligence and and I think I could agree with Mr. Bloom's plan. Any further discussion, council member, sorry, council member Petty, that helps.

I certainly appreciate your recognition, Mayor Knackstead. My apologies.

Thank you so very, very much. Yes. uh this letter does uh create some pause for concern and I would think some of the allegations that they're stating could be uh easily determined through FAA records to validate and see if uh if Foxair could um give reason or I just want to make sure that we have um quality opportunity that comes comes to our city that doesn't tarnish our reputation. Thank you. Any further discussion? Um,

so would we be able to postpone this? I wasn't looking at each other. Council member Petty. Oh, sorry. Um, so I would like to um ask uh Mr. Bloom his recommendation on how we should move forward with this. if this would need to be postponed until our next meeting. Mr. Bloom.

Thank you, Council Member Naxstead. Uh, sorry, by Mayor Naxstead, Council Member Petty. Uh, so I think council has two options. One would be to pass it at this meeting or act, take a vote at this meeting and administration would follow up and could report back to council and uh, not execute the lease. you're giving you're giving the city manager the authority to do so, but he doesn't have to do that. I mean, if he found things that were of concern and we could report back at the next meeting. The other option would be to postpone uh until the next council meeting without Fox Air being here. I'm not sure uh how that would affect their their timeline if if we postponed, but both options are available. Vice May,

I um I trust that moving forward with this and leaving it in your capable hands and you can let us know in two weeks if there's a consideration that to not do the lease or to execute manager Eubank, were you going to say something? Yeah, thank you, Mr. Mayor. The only thing I was going to fill in is uh the intent of Fox Air is I believe is to begin um service on June 1st. So um I think that provides for either postponement or the other recommended action, whatever the pleasure of council is. Thank you.

Go ahead. Thank you, Mayor Nexton. Um, I would be fine with moving forward because we do have a summer timeline right in front of us. Um, with the plan that admin look into this and then if admin feels like there's has any reservations, then you would be able to bring it back before us and say no, we're not going to do the lease. But I would suggest let's move forward with that caveat. Council member Daniel.

Thank you, Mayor Max. I would agree with Council Member Sonar. I like that plan going forward. It gives us the most flexibility. Um and and to execute or not, I really appreciate that. That's a good good compromise, I think.

And and I I too would agree with that. And um I was rather surprised at the uh at the email. You know, it came from somebody that even identified where they worked in a small small town. And uh there were a lot of uh um accusations I should say that didn't seem to be substantiated either. So I really wasn't sure what was going there. And he was actually making literally a federal case out of it because he had to do it had to do with mail fraud and whatever. And I think all that can be um handled here. So um quite surprised by that email and I'm not sure exactly what to think of it, but I would support moving forward. Is there any further uh discussion? Seeing none, unanimous consent was requested. Are there any objections? Seeing no objections, uh resolution 2026-31 is adopted. Next, we have item E9, resolution 2026-32, authorizing extension of a contract for purchase of water and wastewater chemicals brought to us by administration. Pleasure of counsel. Vice Mayor Askin.

I move we adopt resolution 2026-32 and request unanimous consent. I will second that. Is there anyone from this general public that would like to uh um speak to resolution 2026-32? Seeing no one, bring it back to council for discussion. Any discussion? Council member Daniel. Thank you, Mayor Max. Just a quick question for um Mr. Lee, is this the same price we got last year or is it a different an increase at all? Just curious.

Um, yes, Brent Tag, our current vendor, uh, agreed to extend the same price um, from last year. We reached out to them. Typically, we bid this contract out annually. Um, but we with concerns about fuel prices right now, we asked that they'd just be interested in extending one year and they were uh, willing to do that for us.

Any further discussion? Unanimous consent was requested. Are there any objections? Seeing none, resolution 2026-32 is adopted. That brings us to item E10. Resolution 2026-33 authorizing extension of a contract for refueling services for a city uh facility fuel tanks brought to us by administration. Measure of council. Vice Mayor Asen. I move we adopt resolution 2026-33 and request unanimous consent. I'll second that.

Is there anybody from the general public that would like to speak to resolution 2026-33? Seeing no one, bring it back to the council for discussion. Council. Um I did have a question uh for the city manager. um that this is uh that before the contract we uh there was a reduction from the uh um opus of two over 2%. Now this would be an increase. Can you kind of explain um how the the number differences um correlate and it's in the best interest of the city in here and I just want to know how that is in the best interest.

Yeah. Thank you, Mr. Mayor. So, originally the city bid uh this contract as a three-year contract with the opportunity to extend for two one-year um at the agreement of mutual consent between the vendor and the city. Um the vendor uh fully met their requirements under the three-year initial term. So, they've provided what they quoted. Uh when we asked if they were interested in extending for one additional year, um they said they could not do that under the current price structure that they bid and that they would um but they would be willing to at an increased rate. Um correct me if I'm wrong, Mr. Fry. I think we only had a single respondent when we bid this. So, they were when this was originally bid, the only bidder that did bid and um you know, uh staff working with them, they I feel like they feel like they underbid the original contract. Um that volumes weren't as big as they thought they were going to be and delivery costs were more than they were expecting. And um you know staff again concerned in the current fuel environment that this might not be the best time to try to bid a longer term contract is recommending that we um accept their increased rate um for one year and then we'll re-examining the bid environment at that point in time and decide if we'll do a long-term bid or request to extend again. uh it's being brought before council. Had there been no increase in rate, I I simply could have we simply could have agreed and not brought it before council. But because the rate changed um over what it originally was and what council approved, that's why it's before you here um this evening.

Thank you for that clarification. Any further discussion? Council member Daniel. Thank you, Mayor Knax. Um the 31 cent increase, is that for the whole year? So if prices go down is going to be elevated or how does that that work? City manager Eubank.

Yeah. Thank you, Mr. Mayor. Council member Daniel. I believe it's still pegged to Opus, which is a floating rate that based upon the the price of fuel from um uh the refiners or or the suppliers. So, as that price drops, the price we're paying for fuel will drop, but it will still be 31 cents in excess of whatever the opus rate is. So, whichever direction OPUS goes, we will be paying more or less, and it will always be 31 cents more or less than opus. Grammy,

did I understand you correctly? Essentially, there is no other option. City Manager Eubank.

Yeah. Thank you, uh, Mr. Mayor, Council M. No, I I certainly did not say that. I said I think what concerns staff right now is to issue an RFP. Um, with price, the prices of fuel fluctuating 50 cents each and every day depending on what's going on in the Persian Gulf. This might not be the environment that we were recommending that we go and test the market again. that um we're recommending that you know we adopt this rate for a period of one year and then re-evaluate when fuel prices become more stable and the environment is probably more conducive to uh issuing a long-term bid. Any further discussion? Unanimous consent was requested. Are there any objections? Seeing none, resolution 2026-33 is adopted. So now we are on item E1, resolution 2026-34, affirming city support of non-discrimination policies as outlined in the title uh 7 of the 1968 civil rights act known as the federal fair as housing act to comply with certain grant requirements brought to us by administration. Pleasure of councel. Vice Mayor Askin.

I move we adopt resolution 2026-34 and request unanimous consent. I'll second. Thank you. Is there anybody from the general public that would like to speak to resolution 2026-34? Okay. Seeing no one, bring it back to council. Council discussion. Coun. Uh council member Petty. Uh yes. I would like to ask the city manager. Um I thought that um the city always operated within um the underlying title 8 of the civil rights. Why is it necessary to put this forth? Major Eubank.

Yeah. Thank you, Mr. Mayor. Council member Petty. I think that's a great question. Yes, I believe your um your understanding is correct that the city always operates under the provisions of that. However, um the city partnered with Kenai Peninsula Housing Initiative on a community development block grant application which we were successful in being awarded. One condition of that grant is prior to issuance that we must reaffirm take this action to reaffirm our position on this. So that is this is not this is something we've done in the past in similar situations when grant provisions require it and this is one of those required provisions. Um I think one of the last ones that we're trying to get through and um to get that grant in place and start to extend those utilities and construct a roadway.

Thank you. Um I appreciate that. Um I just find it most interesting that we have to affirm that yes, we do follow the law. We do follow the law and we're reaffirming that we do follow the law. So that's what we're doing tonight is reaffirming that as we always do, we do follow the law. follow. Thank you.

Government at its best. Any uh any further discussion? Now, consent was requested. Are there any objections? Seeing none, resolution 2026-34 is adopted. At this point, I'd like to take a fivem minute break uh to about 650. Move back.

You're on the record.

We are back on the record. I'll wait for Council Member Eddie to get back to the DIS. Five minutes is not very long. So, thank you. So that brings us to uh item G, unfinished business. Um we have ordinance 3510 2026 amending the official zoning map by reszoning the property at 100060 Kai Spur Highway from conservation to suburban residential zoning district brought to us by administration. I have a clerk note here that a motion to enact ordinance number 3510 2026 is on the floor from the April 1st 2026 council meeting. So therefore we do not need to have a motion to enact. It's already already been made. So, uh, with that I would like to ask is if there's anybody from the general public that would like to speak to ordinance 3510 2026 or ordinance number 3510 2026 substitute

not according to this. Uh, Mr. Mayor, I think we need to either speak on the uh ordinance number 351020 2026 first before we speak on the substitute. Say that again. I think I believe that we need to speak on ordinance number 3510-2026 before we can speak on the substitute.

Okay. 3510 2026 See, no one that brings us back to council. So, uh we have uh um ordinance number uh 3520 uh 3510 2026 substitute. Does anybody care to make that that motion?

Vice Mayor Asen. Um, in reading the original ordinance and the substitute, they seem to be saying the same thing. Con, um, moving from conserv conservation to suburban residential. Um, um, wasn't the substitute to convert to, um, rural residential instead of suburban? Is that correct, Mr. Bloom? Thank you. Uh, so the original ordinance was to reszone the entire parcel. The substitute is to only reszone a portion of the parcel to suburban residential or rural. I got you.

Uh administration's recommendation is suburban. I have a motion for the substitute. See, city council member Uh, I move we place Oh, we need to replace it or just move to it. Yeah. I move that we um enact ordinance number 35102026 substitute.

I'll second. Is that sufficient? Okay. Thank you. that it's probably it's close enough. So, good job. Thank you. Is there anybody from the general public that would like to speak to 3510 2026 substitute? Seeant one, I'll bring it back to council. There was a there was an amendment in the packet too for the substitute. If anybody cares to make that motion asking, are you digging for it? just he just made the he just moved for the substitute.

He he moved the substitute, but there's an amendment that says what what planning and zoning u what they uh what they recommended. It's it's in our packet. Sorry, the commission um moved to amend it to rural residential. Do I need to make a motion to that? That's page 66 of the packet. Okay.

Um, I am moved that we amend the 13th whereas by filling in the blank with that the city council reszone the portion of the property at 160100060 Kisper Highway from conservation to rural residential. The amended whereas would read, "Whereas at their regularly scheduled meeting held on April 29, 2026, the planning and zoning commission recommended that the city council reszone the portion of the property at 100060 Kenai Highway from conservation to rural residential. Request unanimous consent. Is there a second?

I'll second. Thank you. Thank you, Vice Mr. Daniel. Is there uh so we now we have before his unanimous consent was requested. Are there any objections to unanimous consent? Well, I have a question. I'm looking at the map on page 53 and we're talking about just a portion of this that is being reszoned. Correct. That that is correct. It would be just along the uh the road area.

So just so it's clear what's on the floor is we're only amending uh the whereas in the resolution to indicate what P&Z did. You're not necessarily, we're not asking you to agree with what they did or not agree with what they did. Just to amend the whereas to indicate what they did. Can you say that again? I will try better. I'm sorry.

So, this was referred by council to the planning and zoning commission to make a recommendation. They made their recommendation. So all this is doing is filling in what their recommendation was in the in the whereas that at such and such a date they held a meeting and they made this recommendation but it doesn't change uh the outcome of the resolution which is contained in uh the sections of the after the whereases in the section. So this is just stating the fact that they met and they made this recommendation not changing it. I mean to boil it down not changing it from suburban residential to rural residential. Correct. Okay. Thank you.

Okay. So, so back so the amendment to the uh the uh um substitute unanimous consent was requested. Are there any objections to that? What what planning and zoning did? Saying that exactly would you please explain exactly what planning and zoning did do? Thank you. Um, vice mayor asking you, we read the uh the amendment that pretty well covers it. You do that again. Yes. They ask that the city council reszone the portion of the property from conservation to rural residential instead of suburban. Okay. Thank you.

Consent was requested. Are there any objections? Seeing none, now before us we have um ordinance 3510 2026 substitute as amended. Yeah, Mr. Bloom.

Thank you, Council Member Naxstead, members of council. So, I I think this is uh better that we do this right rather than fast. And there's a couple issues that have arisen. Um the first was at the planning and zoning commission and we've been working with them on training and we've really been uh encouraging them uh to when they act in a quasi judicial capacity to take a break and go into a judicative session. I think what wasn't clear to them is the difference between them when they act as a legislative body versus a quasi judicial body. when they act as a quasi judicial body, they are making decisions about like individual property rights, acting like a judge. And in that case, there's an exception to the Open Meetings Act that allows them to go into what's called an adjudicative session outside of the public view and have discussions and make findings. When they're acting in a legislative capacity, which they were when they made this recommendation, they're not adjudicating anybody's private property rights. They're just making a recommendation and that's legislative. They can't go into adjudicative session. So when they went into adjudicative session, they technically violated the open meetings act. So I would recommend that you guys can have whatever discussion you want to have tonight, but ultimately that you not take action and refer this back to the planning zoning commission to redo their hearing. Uh that's the the cure for an open meetings act violation is to redo everything in public. they can do that on uh their meeting on the 27th and then this would come back before council on the 3rd. One other reason that I'm making that recommendation

is because uh KMC 1420270C4 requires that um I'll just read it. Uh the commission shall upon public hearing forward its written recommendation to the council along with all certified minutes and public records relating to the proposed amendment. We didn't have time to get the certified minutes. So you just have draft minutes. I don't think that they would change, but technically it doesn't meet our code requirement which specifically requires certified minutes, not draft minutes. So, I think that also is another reason to postpone this until we have the certified minutes and the planning zoning commission has cured their open meetings act violation.

Thank you, Mr. Bloom. I think based on that explanation, we have really no choice but to to to send it back. But before we make that motion, if we we can still have some discussion about this. Um before we do that, if there's anyone that has any any comments they would they would like to make on the uh on the substitute ordinance as amended. I I did have a Oh, go ahead. Uh Vice Mayor Asen.

Um I I did have some question on why we want to do suburban residential and not rural residential. Um because this is a cons a conservation area, why would we want to put as many houses as possible when we could like open it up and not have as high a density as would be required or allowed with suburban residential versus rural? Mr. Bloom.

Thank you. uh Mayor Knack said and uh council member Ask and I'd like to just answer the first part of that and then I I know uh the city manager has more to add but I just want to let council know that when the city took over uh planning and zoning powers from the burrow conservation meant two things and we never changed that. It was conservation for like open spaces and na nature but it also was conservation for airport in that sense it was conservation of use of the lands for airport purposes. So this land was airport land and like all other airport land it was initially designated conservation for the airport use. So, it doesn't necessarily mean, and I know it's confusing because this does contain wetlands and areas that would probably fit under the other definition of conservation, but just have that background when you look at it that this was originally set aside as conservation for airport use, not conservation for other wildlife or streams or that sort of thing. And I know Terry, our city manager, has more to add.

And Mr. Bloom. Just to add on to that is we we did reszone the airport proper uh to airport flight industrial and uh that was the runway the taxiways and everything was conservation and that became a problem. Do you have anything more you want to that's

No, you're you're correct. Most of the land that was airport land that uh was needed for other purposes has since been reszoned since the 1963 quick claim deed from uh the federal government to the city giving the city those lands which requires that the city use those lands for airport uses. These particular lands have been released by the airport. We went to the FAA and they said, "Yeah, these lands are no longer needed for the airport, but any funds or uh income from that property would go to the airport, not to the city." Thank you for that. And Mr. Eubank, did you have something you wanted to add to?

Yeah, thank you, Mr. Mayor. And I think it's a great question, Council Member Asens. Um and I think what you have to understand is that one we're talking about the entire parcel is an 81 acre parcel. Um the administration absolutely recognizes that a significant portion you know approximately 71 acres of the parcel is likely not suitable for development and should be conserved because it does contain wetlands and and um you know sensitive habitat areas. So, we're not asking to reszone the entire parcel, but we do believe there are approximately 10 acres that are adjacent um or you know, yeah, adjacent to existing roads and existing city utilities that could be available for development. Um, we've also had interest from, you know, uh, at least one developer on looking for an area in Kenai to provide, um, you know, higher density housing, apartments. Um and when we look at a location, the administration evaluated this area because of its proximity to um services like Walmart, like you know, shopping like Walmart, Home Depot, Safeway, um Three Bears. So, and all of those services are within walking distance, including, you know, access to public transit. Now, with the Takatu, um area transit, there's a bus stop right there by Walmart. All of those services are located within walking distance or biking distance. And we thought it was a a good location um for higher density development. Um, and I also would like to remind council about the results of our community survey um, last fall that

indicated that 74% of city residents that were surveyed said that the city of Kenai has a housing availability and affordability um, problem. And so, you know, the administration um and has brought to council a number of different processes that we are hoping to remove some of the barriers or or limit some of the barriers to development here in the city. Um and we believe that uh reszoning this parcel is critical because um if the city requires subdivision of the property prior to completing a reszone, you're asking either a developer or the city to go through the expense of resub subdividing this property without the guarantee that it can be used for the intended purpose. at the end. Okay. What I think is really critical to understand is that this ordinance does not what what it does in my opinion is it removes that first barrier. It allows somebody um we believe those 10 acres are likely the 10 acres that would be um suitable for development. Somebody's going to have to go out there and do due diligence. They're going to have to dig test holes. They're going to have to do all of the things that they should do in order to make that final determination. If we are correct, they can subdivide within that boundary and they know the zoning that's going to be in place when they get done and they know the limitations of it at that time. So, we believe that's all we're doing is initially removing a single barrier. What it's not doing is a couple of things. It's not guaranteeing development. there's no guarantee that anybody's going to develop this, that somebody's not going to go out there and dig a test hole and determine it's not suitable. Um,

and uh it's also not guaranteeing that the city would issue a lease on this property or authorize the sale of this property. That is an action that would become back before the city council, back before the planning and zoning commission prior to that being made. Um yeah, those are the points I wanted to make. And um so why are we recommending suburban residential? because uh again the walking distance to services also um the primary difference between suburban residential and rural residential um which which is the amendment recommended by the planning and zoning commission um a couple of primary differences. Um suburban residential has a minimum lot size of 7200 square ft. Rural residential requires a minimum lot size of 20,000 square ft. the extension of utilities, water, sewer, and road infrastructure. Um, not to mention electric and gas, which this, you know, aren't costs of the city. Um, are substantial right now. And to try to distribute those costs over um a few lots, you know, of 20,000 square ft of as opposed to, you know, more lots at the minimum size is 7,200 ft². Um I I don't think the the project becomes economical at rural residential because the cost of those utilities is just that high. Um and then the other primary difference is in the number of dwelling units that is permitted uh on a suburban residential lot. Um, you are permitted to have up to

six dwelling units and you can conditionally approve more than six. Under a rural residential, you are permitted up to four dwelling units and you can conditionally approve more than four dwelling units. So, it has to do with minimum lot size and then the number of dwelling units that you can construct on each lot. Um, so I think I hope that answers your question. Um, council member asking on why the administration is recommending um, suburban residential.

Strange, but if you don't mind if just on the zoning and wetland, both were mentioned reszoning. Um, if there was a portion that was still wet land or determined to be, and by the way, it takes a determination that the court has to say that it is. That's not a permission to be able to fill wetlands or alter them or if if you want to discuss that because it it seems like it's implied that that's so, but the city can't do that. Correct. Mr.

That is correct, Mr. Mayor. Again, you know, all we're all we've identified is what staff believes is likely an area that could be developed. again the the final determination and permitting all permitting would have to be accomplished which would include a deter if there is wetlands a determination by the core um and and again the developers you know would have to determine it's suitable for development as well um this was just the area we think is likely I think what was initially flawed and brought by brought forward by PNZ was the administration originally recommended reszoning the entire parcel and then once a subdivision was complete come back and reszone again to the remaining portion that's that's not being developed to conservation. Um this creates a split zone which are not is not ideal but it does um limit that reszone to the area we believe could be developed and leaves the remaining 71 acres of land that should be conservation because of wetlands. clearly wetlands and a drainage flows through there uh in the conservation zone.

Thank you, Vice Mayor Asen. Um I have two questions. At what point does the um core decide? Is this if there is the the potential that there's a subdivision? When would they do that? the core samples and everything.

Um, thank you, Mr. Mayor. Council member ask, I want to make sure I understand your question because I think there's two different things here. I I think part typical uh typically a developer goes through a due diligence process where they go out and they do um you know a site survey. They're looking for contamination before, you know, they they're going to purchase something and and inherit a contamination problem. Um, they're digging test holes to see what the soils are in the area to determine if those soils are suitable for the construction that they want to do or how much excavation they're going to have to do, how much fill they're going to have to bring in. Uh, they go through a they should if you know, and the good ones, I believe, go through a very extensive due diligence process. So there's that process that I think people would have to go through. Then they will absolutely have to apply for all the appropriate permits to do whatever construction that is. And if portion of the property is, you know, is or could be considered wetlands, they likely would have to get a determination from the core on if they actually do meet the requirements of wetlands, which would significantly reduce their their ability to um develop at that point. Thank you. That answers my question. He went ahead and answered the second.

Sorry, you're fine. City manager Eubank. Uh, two other things on development. Uh, there was mention of city utilities. We're talking about both water and sewer available. So, there's not going to be waste water disposed on the property. Is that on these smaller lots? that sewer is available. Yeah. Thank you, Mr. Mayor, members of council. Yes. So, uh, city water and sewer utilities are present at the corner of, um, M help me, Lee. Princess and Magic.

Princess and Magic, which is on the southern southern corner of of the proposed reszone. they would have to be extended uh up into the reszone area, but they are present there at the corner. And as far as on-site systems, you know, in order to have um both water and sewer on site, you have we'd have to meet DEC separation requirements, which I believe is minimum 100 foot between well, well, and septic. So, you'd have to determine what lot size would would be able to accommodate that. Um, you can get into other combinations. You could have it could be served by city water and and have on-site um septics or or sewage disposal, but you you know, all of that would have to be determined by the um by the proposed developer on on how they'd like to move forward. Moving on with utilities if I could one more time. The other uh thing I think I saw in the in the minutes or discussion was uh the road going out there. What what is its condition? Is it satisfactory for the for the loading the traffic and uh you know and I think there'd be a road extension too.

Yeah. Thank you, Mr. Mayor. I'm going to defer to our public works director who's just, you know, in the process of of implementing our new road standards and he can tell you how those would apply here.

Thank you. So, the um street assessment that we did is determined that that road is in good condition. It's currently classified or um once we if we approve the standards the way we have it, um we'd be classifying it as a residential road. Um so typically for our residential road requirements that we're putting in um it would be a 24 foot wide road. Um you know if there was significant development we could look at doing something like expanding the road or uh providing an increased surface or you know enhanced surface. We could look at paving it and doing things like that in the future. Um if we determine that traffic was necessary but for its current needs it's meeting what it what it should be and we're only maintaining Princess 2 Magic right now. Thank you for that clarification,

Council Member Grammy. Mr. Eubank, thank you for explaining clearly the difference between um suburban and and rural residential. Are you a a aware of and could help us understand why planning and zoning um is asking to amend the city's request from um suburban residential to rural residential especially given what what we know about our resident survey in regards to housing. City manager Eubank that also might be a Mr. Bloom question if that got any insight.

Yeah. Thank you, Mr. Mayor. Council member Grimming. I I don't want to try to put words in the mouth of um the planning and zoning commission, but I would um draw council's attention. I'm sorry I don't have this here. um

the the draft minutes from the meeting where planning and zoning did make findings that support that they believe you know that were in support of their proposed amendment. Um I'm looking in the layown here. I'm sorry. Uh it's on page four or five of the um layown and I'll just read this. It says come uh Commissioner Ursily um read findings into the record. These findings were that rural residential allows for four dwelling units by right. That the commission disagrees with staff findings on traffic impacts. That the commission finds that any development will impact the economic and non-economic value of neighboring properties. and that the development allowed in rural residential will be more congruent with the existing neighborhood.

Thank you. Can you tell me if that is similar or different than other parts of the city where um larger units like sixplex like you had mentioned before have been built? I guess I'm thinking off top of my head like uh readout for example. Um, is that has is the same concern? Is the same conversation been had? Excuse me. Mad Eubank.

Yeah. Thank you, Council Member Grimmy through the mayor. Um, again, I'm not um I might defer a little bit to Kevin here. I'm not necessarily um I don't recall the exact conversation with PNZ regarding some of the reszones and things that have taken place. um over in the readout area where some of the larger developments are are taking place. Um so um Kevin, do you have any

Yeah. Uh Council Member Grim through the city manager, we have had these discussions both on reszones. Um it did not come up on the redout reszone that we passed last year. Um but it did come up in a number of conditional use permit applications along and near the readout corridor. So it is something they do take um take stock of each and every time they make a decision depending on how it's going to impact the neighborhood whether that's like I said reszone or conditional use permits or other processes they have.

Thank you. I guess my question boils down to consistency. Um, I guess what I would what I am interested in knowing is what has been historically the response to similar requests in the past in other parts of the city? And if you in your experience would say that this being zoned as rural instead of suburban residential would be staying consistent with past requests or would be deviating from past requests. Uh uh I will apologize uh council member Grimmate that I have not been here at with the city long enough to have a longstanding knowledge um and we have not had something uh similar to this one. I will say that they are generally prodevelopment in the city for housing. But um on this particular one, I don't want to again put words in their mouth and uh the findings that they do have uh went through an incorrect process. So, I don't want to infer anything that they I don't want to assume anything that they were thinking and I'd rather have them put that on the public record at their next meeting.

City manager Eubank, just kind of following up on that, the the findings that they used was that it was going to uh uh diminish the value of of their of property in the neighborhood. And that that's a that's a valid valid statement. However, it's not a finding without data that did they have any way of making that. So, other than just saying it, was there an analysis done of of like Council Member Grammy, other places in in the city or anywhere else? Do they have any or was it just a statement with no no backing? Was it just emotional perhaps?

Yeah. Thank you, Mr. Mayor. I I don't believe I I did not see any evidence that was provided to support that. Um as far as all the other conclusions there, I'll I'll I'll let you um let each person make their own. Um but I don't there there certainly was no data provided that um I think Kevin, were you aware of anything? There were no there was no data provided during the time given at the findings.

Council member Grammy. Well, and and in the interest of making sure that our record is full and complete, the findings noted two things, traffic impacts and the impact on um property values. So, I would assume that the answer to the question to Mayor Ned's question about data related to um value of neighboring properties, the answer would be the same for regards to traffic impacts. There was no study conducted. There was no data provided that would indicate that anything different than what was provided to them by the city in their recommendations for this change. Is that correct? City manager Eubank.

Yeah. Thank you, Council Member Gmy. Um, yes, that is correct. And and what I would say in regard to traffic is that undoubtedly any development will increase traffic on that road. But the proper way to deal with that if development is going to take place is to do a traffic study to determine what that impact likely is and as a requirement of the development. The city could require the developer or the city could itself improve the roadway to accommodate whatever traffic it might be. Um I would I would argue that likely that road would be sufficient enough to handle um you know a fair amount more development than what is already there. You know it is different very different than like Readout Avenue. Readout Avenue is a suburban collector or residential collector

subolctor. Um but it you're collecting off of readout you know woodland subdivision you know in the woods subdivision you mean hundreds of homes are all converging on to read out to distribute out to the main thoroughares. So um you know I again I think regarding the traffic that is absolutely something that can be addressed as development you know becomes clear. Again, this all this in my opinion, all this ordinance is doing is removing the first hurdle that would, you know, give somebody the confidence at least to do a subdivision knowing at the end what they be would be able to build.

I just want one more follow-up question to what you said. uh traffic study done by a developer, a third party or the city. Is that something that is normally done in the course of development of um land like this or is that something that's been done in other parts of the city? Again, I know I keep going back to readout, but that seems to be my most current point of reference and for similar sized units. Is that something that is generally required as part of the process or if that were to be included as a requirement in this parcel would that be something additional that's that's not part for the course normally city manager Ebank.

Yeah, thank you Mr. Mayor. I I think that is I think the analysis of you know of um traffic is certainly a part of every staff report that PNZ does regarding reszones and would be part of any analysis the city does on you know proposed development in the city when we're looking at any developer comes in here and wants to propose development on whether it's city property or private property we're looking at all the impacts on city infrastructure water, sewer, roads to make sure that we're not creating problems and um and we would make appropriate recommendations to alleviate any problems we believe would be present. So, I think it's typical of our process.

I'm I'm sorry. I guess I didn't I I didn't ask my question clearly. I meant in addition because it seems like the city has already done that and put forth what they believed was a an informed opinion about what the potential impacts would be and based on the uncertified minutes PNZ um disagreed with the city's recommendation um and findings in regards to traffic impacts. So I guess my question really is having an additional one beyond what the city provides and has provided. Would that be something that is normal or abnormal? C Mr. Eubank.

Yeah. Thank you, Mr. Mayor. Council member G. I think it would be abnormal um to put a additional stipulation on a particular parcel when the analysis is automatically going to be done by the city in in review of any development like we do on all parcels. So I don't I don't know why we would single out a single one to say we're definitely going to do what we would have already done.

Thank you. City Energy Eubank at just following up on the traffic. I mean putting Lee here on on the spot perhaps, but looking at this subdivision and its outlets, the number of lots it that and and we we uh we we decide how big a road it's going to be based on what we think the traffic is. But uh would it a traffic study? It really wouldn't be that much of a study. I believe that's something that we could do in house within uh good reason. I would think, but I' I'd like to hear that from our public works. Absolutely.

Thank you. Um so with the design guides we're putting out, what um we're recommending in there is for essentially a single family house lot is for 10 vehicles per day or 10 trips per day. Um so when we're moving through street counts, um I believe when it goes to a sub collector, we're looking at 400 to a,000 trips per day. Um so a lot of this is going to vary depending on how development would occur. So if we're just looking at, you know, 10 lots being built, that's going to be 100 trips. It's going to stay a residential road. Now, if somebody's building a giant apartment complex or something, then we're going to do a different analysis to figure out how many trips we're recommending per vehicle um down that road. So, it's going to vary, you know, I would say throughout the years as development would potentially occur on that road. Um it's going to be sufficient for right now. It just would depend on what kind of development is occurs or proposed in the future.

Okay. Any further any further discussion? Vice Mayor Askin. Um, I move that we refer ordinance number 3510-2026 substitute back to the planning and zoning commission to hold a public hearing on ordinance 3510-2026 substitute at their May 27, 2026 regularly scheduled meeting and make a recommendation recommendation to the city council and for council to take backup ordinance number 3510-2026 substitute at its June 3rd, 2026 meeting and hold an additional public hearing. Request unanimous consent. I will second that. Council member Petty

Mayor Dexstead I'd like to ask the um city attorney if this would rectify doing this u the open meeting act and that the process would be followed and explained to our planning and zoning uh commission. Mr. Bloom. Thank you. Uh Mayor Nex said council member Petty. Yes. So that's the point of referring it back and having them uh hold another public hearing. Um and doing it all in open session is to cure the potential open meetings violation act that previously occurred. Thank you sir.

Unanimous consent was requested. Are there any objections? We are referring this back to we're referring ordinance substitute as amended um 3510 20226 to planning and zoning on the 27th. So that brings us down to item H7, action approval, Council on Aging Commission, 2026 work plan. Um from Council on Aging, pleasure of councel, Vice Mayor Ass. I move that we approve the 2026 Council on Aging Commission's work plan. And request unanimous consent.

I'll second. Is there any members of the public that would like to uh to speak to this work session? Seeing none, um council discussion, unanimous consent was requested. Are there any objections? Seeing none, the uh council on aging commission 2026 plan is approved. That brings us down to item H10, discussion, parks and recreation master plan memo. City Manager Eubank, do you want to start with this? We have our uh parks and rec director here as well.

Yeah. Thank you, Mr. Mayor. Uh members of council, um what the administration is requesting is a work session prior to the meeting on the 20th. um that would allow the um consultant that the city worked with to develop the parks and recreation master plan to present that plan to council. Um it would also facilitate you know questions, comments and and discussion on the plan and then uh the intent would be uh at the um once that plan's presented to council and you have your opportunity to answer questions that we would um be uh introducing legislation um for June 3rd that would uh for action on June 3rd that would adopt the me um presumably adopt the parks and works master plan by city council. So, it's just to give the consultant an opportunity to come present the plan and um answer question your questions in on the development of the plan.

And that's requested the 20th of May at 5:00. Yes. Yes, sir. Okay. Kind of looking for a nod of heads. Not not heads, but we don't need a motion for this, do we? No, I think it's just general discussion. We got one. Okay. Two okays. Five. Is that five? Five o'clock. Council member Daniel, you're still looking. So, yes. Oh, you're good. All good. Yes.

So, so we're all we're all in agreement. Okay. So, we will uh bring this back five o'clock on May 20th for the parks master plan. And I'm looking forward to it. So that brings us to commission reports. Council on Aging, Council Member Asen, we don't have them. Our next meeting is May 14th. Okay. Airport Commission, Council Member Sonart. The next airport meeting is also Thursday, May 14th.

Okay. Parks and Recreation Commission. Remy. Um our next meeting is tomorrow and council member um Cassenna will be covering that for me. Next we have planning and zoning commission council member Daniel again.

Thank you uh Mayor Naxstead. A couple highlights I will not the lion chair of the meeting was about that uh um conservation partial we just discussed. I won't go back into that since they're going to get another stab at it, but that was a big part of their meeting. Uh a couple other things that were passed. Um there is another ironically we're a discussion about uh reszoning um a split zone at uh 6575 Kennesburg Highway to a general commercial and that passed. And then also resolution um let's see here PZ 20 260 no not that one 06 that's the one. Yep. Uh this is a retail marijuana store that also passed uh at 6384 Kex Highway at our CUP for that. And then there was a uh a license transfer another marijuana uh outfit and that passed. So uh that was PNZ and the next means on the 13th which if someone's available to cover I would greatly appreciate that. Looking for volunteers.

Thank you for your report. There you go. Got a taker. Next we have beautifification commission Petty. Thank you, mayor. Uh there is no report at this time and our next meeting is Tuesday, May the 12th. Thank you.

Thank you for your reports. Uh now we have a report of the mayor. Just have two things. Uh first off, we we had a budget meeting this last Saturday that was nine n and a half hours long. I think every minute of it was very valuable. And uh and I want to thank uh Mr. Sworner for all of his work and the city manager and and putting that together and all the directors as well that came and spoke to us. Um, we certainly had a lot of questions and that's one of the reasons it took a little longer than maybe some, but I think some meetings, but I think that uh that that's part of the value of it. It's it's more than just the uh the dollars and cents. It's it's basically, you know, what our directors, what the departments are doing. And uh uh it gives us all a very good feel for for what goes on in the city and how it works. And uh so thank you for all the good work and I look forward to uh our our final budget meeting. that's coming up first uh first meeting in next month. And then lastly, um our uh our clerk has been um taking a break. So, I wanted to thank Mr. Parks here, our assistant clerk, for all of his good work kind of holding down the fort and and carrying through today. And and uh I think uh um it's it's moved very smoothly and I much appreciate it and thank you. So, that is my report. Now, we're down to administrative reports. City Manager Eubank.

Thank you, Mr. Mayor, members of council. A few things to report. Uh on the staffing and recruitment front, uh I want to uh welcome Melissa Sher as a part-time janitor. Um Melissa will be primarily working here at city hall. Uh I want to inform council that we uh will be um performing another recruitment for an airport manager. Uh we were unable to reach agreement with um a couple of the candidates from our last round. Um and I'm also uh very thankful and happy to report that Miss Bondant has agreed to continue working here with the city in the interim role until we're able and she snuck out of here uh until we're able to fill that role permanently. So really appreciate Mary's help. Um, we also are actively recruiting uh for an equipment operator, a firefighter, a dispatcher, and some seasonal positions. So, if you're looking for a job, you might want to check out the city of Kenai's website. Um, last week, I think it was last week, maybe the week before, um, I attended the, uh, 2026 industry overview forum in Seward put on by Kai Peninsula Economic Development District. Um, Vice Mayor Asen joined me. Um, you know, communities across from across the peninsula gathered for a full day for updates uh from industry experts on topics including housing assessments, infrastructure investment, natural resource development, and shifting economic trends. Um, I think it was uh very well put on and I appreciate um Cape's efforts in that. Uh, the following day I attended a uh hearing of the Alaska Regulatory Commission. Um they were hearing a uh NSAR's application for advanced

determination of managerial prudence um for the uh for the gas storage facility that they're proposing to build here in the city. Um and I wanted to stay up on um what was being presented there. I found it very interesting and I think it'll assist us as we move forward. Uh on Sunday of last week, um our finance director came in, uh Mr. Sworner, and submitted our most recent uh small community air service development um program grant application. I appreciate you coming in, Mr. Sworner, to do that. Um it was due by Monday, but we wanted to make sure we didn't have any technical difficulties. So, uh we were able to get that um submitted. Um uh and it I will tell you it had nearly 20 letters of support including congressional and legislative support uh support from all the the cities here on the peninsula local chambers um both the Kiti and Salamanto um tribes provided and Cape had provided letters of support. So I want to thank all of them. Uh the runway rehabilitation project um is on schedule. Uh the main runway will be closing on May 15th. Um expected to reopen uh around October 1st. Um I will tell council that the special instrument flight procedures that council authorized us to uh and provide funding for us to develop are in place and available to pilots um so um they can um get those and continue um instrument approaches into the airport. Um, unfortunately I have to report that the airport cafe Deb's Beastro uh has um uh told us that they will be um

discontinuing service on May 23rd. Um and we will be issuing a request for proposal trying to get a new operator in there uh in that space. Uh Aleutian Airways um has suspended service um for the months of April and May. um citing fuel allocation issues um with what's going on right now um with Jet Air Jet A um and uh their summer schedule has not yet been confirmed. I wanted to tell council that um pursuant to KMC 132030, it's my intent to close uh the portion of Mission Avenue in Oldtown from Eric Hansen Scout Park to the Kenai Bible Church to both vehicular and pedestrian traffic uh due to the significant sluffage creating unsafe conditions for vehicles and pedestrians. There will be exceptions granted to the property owners that use that um Mission Avenue there as their access to their residences. Um, I will also be closing the uh maintenance pathway on the u newly constructed um uh abupment of the bluff erosion project to um pedestrian access. Um again because of significant sluffage and we just don't want anybody to get hurt down there. Um and uh we have ordered signs and once those signs are here and put in place those closures will go into effect and uh I am required to report at the next meeting that I have officially closed those. So I will and that's under also KNC 132030. So that notice will be provided at a future meeting. Uh, I'm happy to report that um we

learned today um Senator Macowski has included a um drinking water improvement project that the city submitted uh to her for one of her congressionally directed spending requests. So, she's supporting that and moving that forward in her request. Um it's for a,248,000 to help us with um some drinking water improvements. So, want to uh recognize her for that and thank her for her consideration. Um on the 18th at the Kenai Visitors Center, um the mayor and I have been um invited to a host uh excuse me, a lunch being hosted by Glenn Farn. Um it'll be Glenn Farn and with key partners and offtakers of the proposed pipeline. Uh I know that Glen Farn is uh chartering four aircraft to bring a number of folks in for this meeting. Um you know I don't know that's a funny story but they originally called and said they wanted to bring a 737 in and um I had to inform them that um our runway closed on the 15th and their meeting was on the 18th. Um so they pivoted and they have identified um some charters that can help them get the folks that they need here. So looking forward to attending that um myself and with the mayor and um we can certainly report back what happens there. Um some upcoming events here in town. Um summer reading over at the library is kicked off um this month. So if you're interested in participating in the summer reading program, you might want to get over there and check it out at the library. And parks and wreck will be hosting planting day on Saturday, May 30th. Um, and they're looking for volunteers to help plant the city's flower beds uh for for this summer season. So, if you're interested in volunteering, you can um I think look on the parks and wreck page of the city or

get in touch with parks and wreck. But, uh that planning day will be on May 30th and I'm happy to answer any questions. Are there any questions of the city manager? Council member Daniel. Thank you, Mayor Next. Uh, in regards to the closures, um, do we need to have are there any concerns with utilities? Do we need to shut any of those off over there? Are they still well protected?

Yeah, thank you, Mr. Mayor. Council member Daniel. I think that's a great question. We do have some concerns over um, uh, predominantly some water utility that's in that area. Um, I don't think right now any of it is um necessarily threatened from actual sloughage. Um, I think there's concern about next winter because um, you know, while we bury them, you know, usually at least 10 ft deep to keep things from freezing, these are no longer 10 feet from the face of the bluff. So, they don't have that same insulating factor from the face. so likely are going to have to be relocated this summer. Um uh and you know, I think that's all a project that public works is evaluating. Um we're just waiting for kind of groundwater and breakup to stabilize so we can know exactly what's there and then uh form a plan of action to start trying to address some of those issues.

Thank you. Any further questions of the city manager? Seeing no one, Mr. Bloom.

Thank you, uh, Council Member Naxad. I do actually have something to report tonight. Uh, on April 29th, uh, last week, uh, the Kai Peninsula Bureau District Student Council meeting was held and I uh gave a series of presentations at that meeting. It was attended by our student rep on um, teamwork and conflict resolution and dealing with uh, difficult personalities. And it was really great for me to just see all our student leaders in the burrow and um how much they care about their schools and um how serious they are about their work that they do on student councils.

Any questions of the city attorney? Seeing none more. Thank you for doing that. Sound like a good time. Wish I could have been there. City clerk. Thank you, Maxstead. I have no report, but I'm happy to answer any questions. Any questions of the clerk?

Thank you for your good work. So, uh, that brings us to item L, additional public comments. Are there any members of the public who would like to address the council at this time on anything? Okay, you're good. Okay. Thank you. Seeing no one, that brings us to council comments. Uh, student rep, you're up.

Good evening, Mayor Knax and council members. Um, first I'd like to begin by congratulating some of KCHS's student leaders in their recent election to KPBSD district level committees. First, Alex Khan for his selection of the KPBSD mathematics curriculum committee where he will voice student opinions for the K12 math curriculum. Second, Shauna Cook for her selection of the KPBSD Wellness Advisory Committee. Shauna will be representing all KPBSD students in a twice yearly report on student nutrition and physical activity policies. Third, Sawyer Graham for his selection of the calendar committee. Sawyer will meet to review and recommend specific KPBSD schoolwide calendar dates. He will canvas students throughout the district to make his recommendation in October to his committee. Finally, Caroline Carpick for his selection of the instructional material review committee. Caroline will be representing the student voice and acting as an advisory reviewer for any material under complaint. These accomplishments highlight Kenai Central High School students commitment to representing themselves and their peers. Some of our spring sports currently in progress include baseball, softball, soccer, track, and field. Last month, KCHS hosted a successful prom. I'd like to thank the Kenai Rec Center staff for their help with after prom and the Kenai Senior Center for hosting a wonderful sunrise breakfast. At the next meeting, the class of 2026 will have graduated. I'd like to offer each and every one of them my congratulations. I'm sure they'll go far and do great things. And last, thank you to City Attorney Bloom for attending the annual KPBSD Student Council regional meeting. Mr. Bloom attended as a guest speaker and spoke to many of our students across the peninsula. Thank you.

Excellent. Now, Council Member Sinard.

Thank you, Mayor. Next, I would like to um thank our finance director, Mr. Sworner, and our city manager, Mr. you bank for all the work that you did on preparing the budget and your departments. I realize it wasn't a twoperson operation. Uh you have departments and fine employees working with you on that project and yes, Saturday was a marathon for all of us and but uh very necessary and I appreciate your patience with our questions because I know that our questions and our conversations did lengthen the day but um I learned a lot. Every year I go through this process. I'd learn even more about different departments and but what I walked away with was just knowing having the confidence and knowing that um the city of Kenai is on good solid financial foundation footing not only for meeting our current needs and our needs next year but we have wonderful people in place that have projected out 25 years 30 years and have the vision for what our city is going to need several decades down the road and are actively today planning and preparing for it. So when that time comes, the funds will be in place. And I just I think was wonderful. Um good work to everybody involved in preparing that budget and just thank you for a wonderful day.

Oh, and I do want to thank again Mr. Parks for holding down the fort. Council member Daniel.

Thank you, Mayor Max said. Uh, well, I unfortunately missed the budget meeting. Uh, it sounds like you guys had a great time without me. I'm a little jealous, but I do appreciate Mr. Swer's time uh the other day before the meeting to discuss my concerns and questions. That was very appreciated. Thank you for making the time. Uh, I was out doing my hunter safety with my son. I was the oldest kid in the class. Bunch of seventh graders. It was It was a good time, but we both passed, so that was good. Uh, other than that, I do um you know, we'll keep it short and sweet and let's move on. Thank you. Hey, thank you, Council Member Grammy.

Thank you. Um, I too attended the budget meeting on Saturday and learned a lot. Um, a couple of things were reaffirmed for me in that in that process. um about I think my appreciation for the city of Kenai and all the things that staff continue to do, not the least of which was be stuck in that meeting all day Saturday, but the the things that they continue to provide for for all of us as residents by parks and recreation, the library, senior center, visitors center, public safety, all of them. Um, every single staff member that came and talked to us offered something um, forward thinking and thinking about not just what would be good for the city now, but tomorrow and moving forward and and creatively. Um, I I heard eight things that were my favorite words on Saturday. I heard grants, state funding, matching funds, federal money, donations, cost and resource sharing, replacement funds, and investments. And I think for all of those reasons, I would echo what council member Stonard said that that I I walked away feeling very confident and and happy and proud of the work that um staff are doing for securing Kenai's resources.

Okay. Okay, now we have Council Member Petty. Thank you, Mayor Naxstead. Um, it was an honor to uh work with everyone this evening. I too uh had the privilege to participate in the budget process and uh look forward to our budget for the upcoming year. Um I echo the things that Miss Grimmie and Miss Sard said. I amen. And um that ends my comments. Thank you very much. Thank you, Vice Mayor Asen.

Thank you, Mayor Nstead. Um I too attended the budget meeting and echo everything everybody said. I've I've repeatedly said we have a pretty we have a class A staff and I'm really I'm proud to be a part of it with you. Um I I snuck out of the meeting about 20 minutes early to attend the caring for the Kenai award ceremony. um some pretty phenomenal projects. Uh the winners were uh two boys from Seward who did the research and found out that when spruce bark beetles get ready to leave a dead tree, they release a pheromone that tells the rest of them, "Don't stop here. It's not any good anymore." And um they were devising ways of um distributing that pheromone to maybe start doing away with our spru our spruce bark beetles. Then um and the second place was another uh young girl from Seward who as those of us who have dogs, they were collecting dog hair and felting it and using it for oil spill response for cleanup because it would absorb oil. So that was pretty cool. And I too um as um city manager Eubank said, I attended the industry overview forum and I learned a lot. Cape did a really good job and that ends my comments. Thank you.

Okay, thank you. We have no executive session on and we have no pending items that bring us to adjournment with no more uh uh business before the body. And we are