HomeMy WebLinkAbout2024-06-19 Council PacketKenai City Council - Regular Meeting Page 1 of 3
June 19, 2024
Kenai City Council - Regular Meeting
June 19, 2024 ꟷ 6:00 PM
Kenai City Council Chambers
210 Fidalgo Avenue, Kenai, Alaska
www.kenai.city
**Telephonic/Virtual Information on Page 3**
Agenda
A. CALL TO ORDER
1. Pledge of Allegiance
2. Roll Call
3. Approval of the Agenda and Consent Agenda (Public comments on Consent Agenda Items
limited to three (3) minutes per speaker; thirty (30) minutes aggregated)
*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
1. Water and Wastewater Rate Study, Public Works Director Curtin
2. Kenai Regional Airport - Leakage and Retention Study, Volaire Aviation Consulting
C. SCHEDULED PUBLIC COMMENTS (Public comments limited to ten (10) minutes per speaker)
D. UNSCHEDULED PUBLIC COMMENTS (Public comments limited to three (3) minutes per speaker;
thirty (30) minutes aggregated)
E. PUBLIC HEARINGS
1. Ordinance No. 3421-2024 - Increasing Estimated Revenues and Appropriation in the Kenai
City Airport Snow Removal Equipment, Visitor Center, and Public Safety Capital Project Funds
to Transfer Residual Balance from Completed Projects Back to their Original Funding Sources.
(Administration)
2. Ordinance No. 3422-2024 - Increasing Estimated Revenues and Appropriations in the General
Fund and Public Safety Capital Project Fund for Cost in Excess of Projected Budgeted Amounts
for Fire Department Flooring Replacement Phase 2. (Administration)
3. Ordinance No. 3423-2024 - Increasing Estimated Revenues and Appropriations in the General
Fund and Personal Use Fishery Fund for Annual Transfer from Personal Use Fishery Fund to
the General Fund for Non-Departmental Expenses. (Administration)
4. Ordinance No. 3424-2024 - Increasing FY2025 Estimated Revenues and Appropriations in the
General Fund and Authorizing Renewal of the City’s Property, Liability, Workers’
Compensation, Airport and Other Ancillary Policies with the Alaska Municipal League Joint
Insurance Association for July 1, 2024 through June 30, 2025. (Administration) [KMC
1.15.070(d)]
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Kenai City Council - Regular Meeting Page 2 of 3
June 19, 2024
1. Motion for Introduction
2. Motion for Second Reading (Requires a Unanimous Vote)
3. Motion for Enactment (Requires Five Affirmative Votes)
5. Resolution No. 2024-25 - Authorizing the Use of the Fleet Replacement Fund for the Purchase
of Equipment to Upfit Three New Police Vehicles. (Administration)
6. Resolution No. 2024-26 - Approving a Twelve-Month Extension of Time for Good Cause for
the Completion of Permanent Improvements for a Lease Between the City of Kenai and State
of Alaska, Division of Forestry for Airport Reserve Lands Described as Lot 4A, FBO Subdivision
No.11, Plat No. 2021-44. (Administration)
7. Resolution No. 2024-27 - Authorizing the City Manager to Enter into an ATM Concession
Agreement for the Kenai Municipal Airport. (Administration)
8. Resolution No. 2024-28 - Amending City Council Policy No. 20.020 Commissions, Committees
and Council on Aging Procedures to Amend the Meeting Location for the Airport Com mission
and Making Other Housekeeping Amendments. (City Clerk)
9. Resolution No. 2024-29 - Authorizing a Service Agreement for the Personal Use Fishery
Dumpsters and Portable Restrooms. (Administration)
10. Resolution No. 2024-30 - Authorizing a Contract Award and Corresponding Purchase Order
for the 2024 Recreation Center Epoxy Flooring Project. (Administration)
11. Resolution No. 2024-31 - Approving a Twelve-Month Extension of Time for Good Cause for
the Completion of Permanent Improvements for a Lease between the City of Kenai and Joel
Caldwell for Airport Reserve Lands Described as Lot 3, Block 4, General Aviation Apron
Subdivision No. 1, Plat No. 73-68. (Administration)
F. MINUTES
1. *Regular Meeting of June 5, 2024. (City Clerk)
G. UNFINISHED BUSINESS
1. Resolution No. 2024-17 - Renaming Cook Inlet View Drive to Cook Inlet Drive. (Sounart) [On
05/15/24 this item was referred to the Planning and Zoning Commission for recommendation to
Council and postponed to 06/05/24; on 06/05/24 this item was postponed as amended to the
06/19/24 City Council meeting.]
H. NEW BUSINESS
1. *Action/Approval - Bills to be Ratified. (Administration)
2. *Action/Approval - Special Use Permit to the State of Alaska, Division of Forestry for Use of
30,000 Square Feet of Apron Space at the Kenai Municipal Airport. (Administration)
3. *Action/Approval - Special Use Permit to Echo Lake Meats for Use of 20 Square Feet of
Terminal Space at the Kenai Municipal Airport. (Administration)
4. *Action/Approval - Special Use Permit to Kenai Aviation Operations, LLC for Use of 1200
Square Feet of Apron Space at the Kenai Municipal Airport. (Administration)
5. *Action/Approval - Special Use Permit to Weaver Brothers, Inc. for Trucks and Trailers
Storage. (Administration)
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Kenai City Council - Regular Meeting Page 3 of 3
June 19, 2024
6. *Action/Approval - Special Use Permit to Kenai Chamber of Commerce and Visitor Center -
Moose Meat John Cabin. (Administration)
7. *Action/Approval - Special Use Permit to Shane Morgan for Sheet Pile Storage.
(Administration)
I. COMMISSION / COMMITTEE REPORTS
1. Council on Aging Commission
2. Airport Commission
3. Harbor Commission
4. Parks and Recreation Commission
5. Planning and Zoning Commission
6. Beautification Commission
J. REPORT OF THE MAYOR
K. ADMINISTRATION REPORTS
1. City Manager
2. City Attorney
3. City Clerk
L. ADDITIONAL PUBLIC COMMENTS
1. Citizens Comments (Public comments limited to five (5) minutes per speaker)
2. Council Comments
M. EXECUTIVE SESSION
1. Discussion of Potential Payroll Settlement. [AS 44.62.310(c)(1) and AS 44.62.310(c)(3)]
N. PENDING ITEMS
O. ADJOURNMENT
P. INFORMATION ITEMS
The agenda and supporting documents are posted on the City’s website at www.kenai.city. Copies of
resolutions and ordinances are available at the City Clerk’s Office or outside the Council Chamber prior
to the meeting. For additional information, please contact the City Clerk’s Office at 907-283-8231.
Registration is required to join the meeting remotely through Zoom. Please use the following link to
register:
https://us02web.zoom.us/meeting/register/tZUof--uqjwuGNA9TpWjiuD5xasJk-leXjY_
Page 3
Parrish, Blessing & Associates, Inc.
Economic Consultants
1 | Page
Anchorage Office: Main Office:
2100 Atwood Drive 3975 University Avenue, Suite 215
Anchorage, AK 99517 Fairfax, VA 22030
Telephone (907) 242-0659 Telephone (703) 352-4830
TECHNICAL MEMORANDUM
To: Scott Curtin
Director of Public Works Date: May 21, 2024
City of Kenai, Alaska
From: William Wilks, Parrish, Blessing & Associates
Alaska Public Utility Operations
RE: City of Kenai Water and Wastewater Rate Study
This memorandum documents the objectives, assumptions, findings, and
recommendations for the water and wastewater utility rate studies for the City of
Kenai, Alaska (“City”). Major study elements include:
• Evaluation of Financial Policies
• Development of Capital Financing Strategies
• Assessment of Revenue Needs
• Forecast of Rate Adjustments
Further detail can be found in the following appendices:
Appendix A – Water Utility Spreadsheet Model
Appendix B – Wastewater Utility Spreadsheet Model
EXECUTIVE SUMMARY
Parrish Blessing and Associates (“PBA”) prepared these Revenue
Requirement rate studies for the City’s water and wastewater utility in compliance
with generally accepted rate making principles using a 10-year forward-looking
methodology. As such, the revenue requirement study answers the questions, “is the
utility operating at a surplus or deficiency and will the required percent change in
rates, upwards or downwards, applied on an across-the-board basis achieve the
revenue requirement”. In short, the overall goal of a rate study is to assess the
financial health of a utility and what is required in terms of adjustments to rates so
that a utility can provide safe and reliable service to its customers at just and
reasonable rates.
In these rate studies we determined that without the recommended modest
rate increases beginning at 5% in 2024 and a 4% year-over-year rate adjustment
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Parrish, Blessing & Associates, Inc.
Economic Consultants
2 | Page
Anchorage Office: Main Office:
2100 Atwood Drive 3975 University Avenue, Suite 215
Anchorage, AK 99517 Fairfax, VA 22030
Telephone (907) 242-0659 Telephone (703) 352-4830
thereafter that both the water and wastewater utility may likely incur significant
financial losses that could impair their ability to meet operating needs and fund
capital projects, thereby impacting utility service to customers. This technical
memorandum provides the support to adjust rates as recommended and the financial
consequences of not adjusting rates at all.
Before we address the major elements of a rate study as listed on page 1, we
present the components that make up the revenue requirement and the formula for
determining if a utility is operating at a surplus or deficiency. Elements that make up
the revenue requirement calculation consist of operating costs plus a return on rate
base (net plant in service multiplied by cost of capital). The formula below illustrates
the concept and calculation:
Operating Costs + (Rate Base x Cost of Capital) = Revenue Requirement
Revenue Requirement – Revenues = Surplus if negative or Deficiency if
positive
Typically, the components of operating costs include both cash and non-cash
expenditures (depreciation expense). However, for computing the revenue
requirement for the City’s water and wastewater utility we excluded depreciation
expense and the return on rate base at the request of the City. The results of
excluding these components results in a lower revenue requirement, and likewise, a
lower overall impact to utility rates. We address herein the financial policies
concerning down the road implications of excluding these costs in the revenue
requirement and make recommendations on how they should be considered in the
future.
In developing these revenue requirement studies we further discovered that
the current governance structure requires voter approval for the City to incur debt
service as a financing option. As a result, the revenue requirement is developed
assuming financing options for water and wastewater capital projects are limited to
grants or unrestricted capital fund balance from the water and wastewater fund. This
type of capital structure puts upward pressure on utility reserves, and ultimately rates
to be sufficient each year to fund capital projects. It also conflicts with standard
practice. Utilities in Alaska typically use a healthy balance of debt and equity to
finance capital projects resulting in overall lower rates when compared to 100%
equity financing.
Given the City’s operating and capital costs projected over a 10-year forecast
period we make the following recommendations:
• Apply a strategy of modest increases to water and wastewater rates as
more fully described herein to balance the need for just and
reasonable rates on the one hand with the need to maintain and
operate the infrastructure to provide safe and reliable utility service.
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Parrish, Blessing & Associates, Inc.
Economic Consultants
3 | Page
Anchorage Office: Main Office:
2100 Atwood Drive 3975 University Avenue, Suite 215
Anchorage, AK 99517 Fairfax, VA 22030
Telephone (907) 242-0659 Telephone (703) 352-4830
• The operating reserve should follow Best Practices to maintain the
equivalent of 90-days cash operating expenses on hand.
• Capital reserves should be set to cover anticipated capital projects
over the forecast period.
• Perform reviews of the revenue requirement results over time to
assess if prospective rate increases are on target to achieve the
revenue requirement.
We now turn our attention to the major study elements of this memorandum that
documents the objectives, assumptions, findings, and recommendations for the water
and wastewater utility rate studies for the City of Kenai, Alaska (“City”).
Page 6
Parrish, Blessing & Associates, Inc.
Economic Consultants
4 | Page
Anchorage Office: Main Office:
2100 Atwood Drive 3975 University Avenue, Suite 215
Anchorage, AK 99517 Fairfax, VA 22030
Telephone (907) 242-0659 Telephone (703) 352-4830
TECHNICAL MEMORANDUM
A. FINANCIAL POLICIES
In order to establish adequate utility rates, a utility must define its
benchmark(s) for financial performance. Typically, several different standards are
necessary to satisfy all financial objectives. Like any business, a municipal utility
requires certain minimum levels of cash reserves to operate; these reserves address
variability and timing of expenditures and receipts, as well as occasional disruptions
in activities, costs or revenues. In addition, as a public service provider, a municipal
utility has a commitment to provide an essential service at a certain standard.
Therefore, protection against financial disruption is very important.
This section recommends best practice financial policies that the City might
consider in the context of this mission. These policies form the foundation of utility
management and, with routine application, can act as overarching guidelines for
consistent decision making. The following policies are evaluated:
• Self-Supporting Special Revenue Fund
• Cash Reserves
• System Reinvestment Funding
1. SELF SUPPORTING SPECIAL REVENUE FUND
A fund is an accountability unit used to maintain control over resources
segregated for specific activities or objectives. Proprietary, or Special Revenue,
funds report services for which a utility charges customers a fee. These funds are
generally self-supporting, receiving revenues for payment of services on a user fee
basis as opposed to property taxes or other general fund revenue sources.
Conceptually, and by accounting convention, each utility is divided into two
primary activity centers; operating and capital. For financial forecasting purposes,
operating costs tend to be ongoing and predictable, while capital costs are highly
variable in comparison. In addition, each of these has specific funding sources and
mechanisms available to them.
When determining the amount of rate revenue required, we necessarily
separate these cost centers to reflect these differences. Note, however, that there is
some interaction between the two centers – for example, capital projects may be
funded through a policy of system reinvestment funding from rates, direct rate
funding, or through debt issuance. In each case, rates are paying for capital projects.
These demands on operational resources (primarily rates) thus become expenditures
from that perspective.
This ideal separation is illustrated in the exhibit below.
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Parrish, Blessing & Associates, Inc.
Economic Consultants
5 | Page
Anchorage Office: Main Office:
2100 Atwood Drive 3975 University Avenue, Suite 215
Anchorage, AK 99517 Fairfax, VA 22030
Telephone (907) 242-0659 Telephone (703) 352-4830
Though virtually all utilities maintain reserves in some form, the segregation of
those reserves can vary greatly between utilities. While a complete delineation of the
functions of reserves is not always documented, the underlying purposes remain
valid components of reserve management. Further, as reserve objectives are
identified, the mechanisms for managing, using and replenishing those reserves
become important elements of financial management.
When evaluating reserve levels and objectives, it is vital to recognize that the
value of reserves lies in their use. It goes without saying that a strategy that
deliberately avoids the use of reserves negates their purpose. Fluctuations of reserve
levels merely indicate that the system is working, while lack of variation strongly
suggests that the reserves are, in fact, unnecessary.
The City maintains a single combined Special Revenue fund for its water and
wastewater utility in which operating, and capital-related cash deposits and
withdrawals are made. However, we were not able to identify a specific policy to
establish the desired level of cash reserves for the utility and present below their
importance.
2. OPERATING (WORKING CAPITAL) RESERVES
An operating reserve is essentially a minimum unrestricted fund balance used
to accommodate the short-term cycles of revenues and expenses. For rate modeling,
it would be a minimum balance that is maintained through rate increases as
necessary; for budgeting, it would be a minimum ending balance for the utility
operating fund; and for accounting, the balance would simply appear as part of
unrestricted cash and investments.
Operating or working capital reserves provide a “cushion” that can be used to
cover cash balance fluctuations. These reserves are intended to address both
anticipated and unanticipated changes in revenues and expenses. Examples of the
former include billing and receipt cycles, payroll cycles, and other payables;
Sources of Funding Sources of Funding
Debt Proceeds User Rates
Transfers from Operations Interest Earnings
Interest Earnings Miscellaneous Service Fees
Grants
Miscellaneous Proceeds Uses
Operating & Maintenance Expenses
Uses Administrative Expenses
Capital Project Funding Rate-Funded Capital
System Reinvestment (R&R) Funding
Debt Service
Addition to Operating Reserves
Capital Account Operating Account
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Parrish, Blessing & Associates, Inc.
Economic Consultants
6 | Page
Anchorage Office: Main Office:
2100 Atwood Drive 3975 University Avenue, Suite 215
Anchorage, AK 99517 Fairfax, VA 22030
Telephone (907) 242-0659 Telephone (703) 352-4830
examples of the latter include droughts, economic cycles, and other periods of low
demand.
Target funding levels are often characterized in terms of a recommended
number of days of cash operating and maintenance expenses (O&M), with the
minimum number of days varying with the expected risk of unanticipated needs –
these are likely to vary among the utilities based on the relative volatility of revenues
and expenses.
Industry practice ranges from 30 days to 120 days of O&M, with the lower end
more appropriate for utilities with very stable revenue streams and the higher end
more appropriate for utilities with significant seasonal variations. This study
incorporates a minimum and maximum balance in the operating account equal to 60
and 90 days respectively of annual operating & maintenance (O&M) expense
sustained from rate revenue for the water and wastewater utility. These target levels
are consistent with industry practices.
The target balance should be evaluated as of June 30 of each fiscal year, with
the balance expected to vary during the course of a year. In any year where the cash
balance exceeds the target, we recommend transferring the excess to the capital
account to help pay for capital projects.
3. CAPITAL CONTINGENCY
In addition to protecting against variations in operating costs and revenues, it is
prudent to establish and maintain a capital contingency reserve to meet unexpected
emergency capital outlays. While it would be impractical to reserve against major
system-wide failures such as earthquake or other catastrophic events, it is
reasonable and prudent to identify and quantify possible failures of individual system
components. There are several methods used in the industry to set the level of these
types of reserves, including:
Percentage of Utility Plant: As a rule of thumb, a utility may elect to hold a
contingency reserve equal to a percentage of the total costs of its fixed
assets, usually 1% to 4% of asset original cost.
Most Costly Piece of Equipment: A utility may predict the cost of replacing the
most expensive piece of equipment or facility that each utility relies on, such
as its largest or most powerful pump, and reserve an amount equal to the cost
of a major repair of that facility.
Average Annual Cost of Capital Program: Alternatively, a utility may use a
percentage of its 5- or 10-year capital program, or set the reserve equal to the
average annual costs of it capital program.
Use of Replacement Reserves: Essentially, the contingency reserve becomes
a minimum balance in the utility capital fund. If a system reinvestment funding
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Parrish, Blessing & Associates, Inc.
Economic Consultants
7 | Page
Anchorage Office: Main Office:
2100 Atwood Drive 3975 University Avenue, Suite 215
Anchorage, AK 99517 Fairfax, VA 22030
Telephone (907) 242-0659 Telephone (703) 352-4830
policy has been established, those cash resources can also be relied on for
this purpose (nesting system reinvestment funding monies within the
contingency reserve). Again, this would avoid the need for multiple reserve
policies when they can serve overlapping purposes.
Reliance on Other Reserve Resources: Many cities maintain “rainy day” funds
as hedges against emergencies or unusual circumstances. In such cases,
extending the applicability of these funds to utility emergency repairs could
preclude the need for a separate utility contingency.
While the rate strategy for these studies does not force funding of a capital
contingency, varying levels of cash reserves are generated for each utility based on
interest earnings of excess operating reserves. We suggest the City evaluate its
capital funding resources on a regular basis and consider implementing this policy in
conjunction with system reinvestment funding over time.
4. SYSTEM REINVESTMENT FUNDING
System reinvestment funding from rates provides for: (1) ongoing system
integrity through reinvestment in the system – replacing physical assets with cash
assets; (2) rate stability through regular accumulation of cash toward funding future
replacement costs; and (3) charging customers commensurate with their
consumption of system facilities.
Each year, system assets lose value, and as they lose value they are moving
toward eventual replacement. That accumulating loss in value and future liability is
measured for financial purposes as annual depreciation expense, which is based on
the original cost of the asset over its anticipated useful life. While this expense
reflects the consumption of the existing asset at its original investment, the
replacement of that asset will likely cost much more, factoring in inflation and
construction conditions. Therefore, the added annual replacement liability is even
greater than the recorded annual depreciation. Given the integrated nature of system
assets, it is likely that multiple assets will have to be replaced concurrently. This
further exacerbates the issue of capital investment “spikes”. It is prudent to develop a
long-term replacement funding strategy for each system to mitigate the impacts to
ratepayers during these periods of substantial system investment.
System reinvestment funding specifically addresses the concept of funding
repair and replacements (R&R) through a regular and predictable rate provision. By
establishing a steady funding mechanism, a system reinvestment funding program
can then be structured, which takes into account the defined funding source,
accumulation of funds when funding exceeds near term needs, and augmentation of
funds (for example through debt) when R&R needs exceed available cash resources.
A common approach of municipal utilities is to establish a policy of system
reinvestment funding through rates using depreciation expense as the benchmark for
the appropriate level of funding. Depreciation is a commonly used accounting
Page 10
Parrish, Blessing & Associates, Inc.
Economic Consultants
8 | Page
Anchorage Office: Main Office:
2100 Atwood Drive 3975 University Avenue, Suite 215
Anchorage, AK 99517 Fairfax, VA 22030
Telephone (907) 242-0659 Telephone (703) 352-4830
measure of the decline in asset value attributable to the wear and tear associated
with routine use. Depreciation expense is recorded as a system expense for
purposes of financial reporting. However, because depreciation expense is a non-
cash expense, it generally does not appear in cash-based budgets, thus potentially
disguising a very real and accumulating cost of the systems.
Collecting the amount of annual depreciation expense through rates provides
a stable funding source for capital expenditures, especially those related to repair
and replacement of existing system plant. It is important to note that depreciation is
not equal to the future replacement cost of the utility systems, but serves simply as a
starting point for addressing long-term replacement needs. As noted previously,
actual system replacement costs will be significantly higher than the cost originally
incurred to build the systems.
The city’s historical practice has been to fund capital needs through a
combination of grants, and “pay-as-you-go” funding from rates. PBA further
understands that voter approval is required to fund the city’s capital projects using
debt financing. These rate study models assume no debt financing, thereby requiring
the availability of unrestricted fund balance as the only other funding source should
grant funds not be available. It is worth noting that as State grant and low-cost loans
are becoming more and more competitive, eligibility criterion are expanding to
include review of best management practices such as system reinvestment funding
policies.
5. CUMULATIVE IMPACT OF FISCAL POICIES
Satisfying all of these policy objectives might seem daunting at first, but the
outcome is that multiple benchmarks overlap, resulting in the simultaneous
achievement of multiple objectives within the same level of rates. For example, the
policy for system reinvestment funding through rates serves several beneficial
purposes: it provides a cash resource to the capital accounts that helps build capital
contingency reserves; it contributes to the cash funding of capital, helping to maintain
healthy debt-to-equity ratios; and it helps to avoid rate spikes during periods of
significant replacement needs.
Each criterion provides a different perspective on how much revenue is
appropriate, and satisfying them all generally results in higher rates than if only a
single standard is considered. However, this approach reduces financial risk and
increases financial stability – any near term increases that result will help to promote
more stable, and lower, long-term rates.
In summary, utility reserves are intended to absorb fluctuation in revenues or
expenditures without abrupt rate impacts. As reserve levels vary, a policy structure
can define the mechanisms for regulating those levels and returning them to intended
targets. The general objectives of these and other policy elements are stable and
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Parrish, Blessing & Associates, Inc.
Economic Consultants
9 | Page
Anchorage Office: Main Office:
2100 Atwood Drive 3975 University Avenue, Suite 215
Anchorage, AK 99517 Fairfax, VA 22030
Telephone (907) 242-0659 Telephone (703) 352-4830
predictable rates and funding sources, along with equitable recovery of costs from
customers as they are being incurred.
A. Study Assumptions
In addition to the financial policies summarized above, the following major
assumptions were used in preparing this analysis:
The study period includes the fiscal year (FY) 2024 approved operating budget
with FY years 2025-2033 inflated during the forecast period.
Revenue under existing rates is assumed to increase less than 1% per year over
the study period.
FY 2024 beginning unrestricted cash balances as reported in the City’s FY 2024
final approved operating and capital budget $1,197,850 split 50%/50% between
water and wastewater. The interest rate on available cash balances are
estimated at 2.0% per year.
Operating and maintenance (O&M) expenditures are based on the FY 2024
operating budget, escalated for inflation.
Capital programs were provided by the City with support from HDL Engineering
Consultants, LLC, the City’s engineering consultant, in current day dollars and
escalated for inflation each year to the date of anticipated construction for each
project.
B. Revenue Requirement Analysis
The revenue requirement analysis determines the total amount of revenue
needed each year of the study period to pay operating & maintenance costs, capital-
related costs, and impacts of financial policies. A capital funding analysis, revenue
needs assessment, rate forecast and reserves analysis was prepared for the water
and wastewater utility. Forecasted total financial requirements were compared
against forecasted total rate revenue under existing rates to determine annual and
cumulative rate adjustments needed to ensure financial sustainability over time.
Results are summarized below for the water and wastewater utility.
WATER UTILITY
a) Capital Financing Strategy
As shown in Exhibit 1 below, the City has identified approximately $8,660,338
(escalated) in capital improvement and replacement projects planned for construction
over the study period. Exhibit 1 also shows the funding source by year for the
proposed water utility capital projects consisting of $960,000 in grants, $379,453 in
reserve transfers from the wastewater utility and $7,320,885 in unrestricted capital
fund balance. The City has instructed us not to consider debt financing as a capital
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Parrish, Blessing & Associates, Inc.
Economic Consultants
10 | Page
Anchorage Office: Main Office:
2100 Atwood Drive 3975 University Avenue, Suite 215
Anchorage, AK 99517 Fairfax, VA 22030
Telephone (907) 242-0659 Telephone (703) 352-4830
financing option in these rate studies given the current governance structure
requiring voter approval for the City to incur debt.
Exhibit 1: Capital Financing Plan – Water Utility “With Approved Rate
Increases”
b) Revenue Needs Assessment
There are two critical financial goals that we proposed in these rate studies.
First, utility rates must be just and reasonable. Second, the operating reserve should
be sufficient to cover 90 days cash operating expenses and the capital reserve
should be sufficient to cover capital projects necessary to provide safe and reliable
water service to the City’s customers. Our recommended rate increases provides a
reasonable balance between rates customers pay for utility service and ability of the
City to provide safe and reliable service. As shown in Exhibit 2 below, revenues at
proposed rates increases result in positive cash flow sufficient to meet forecasted
water utility financial obligations over the study period to include operating and
capital expenses and sufficient reserves to cover 90 days operating expenses
following best practices.
Exhibit 2: Revenue Needs Assessment – Water Utility “With Approved Rate
Increases”
Capital Funding 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Total
Total Capital Projects 1,550,000$ 182,070$ 493,228$ 1,991,084$ 645,411$ 382,130$ 809,190$ 838,422$ 868,710$ 900,092$ 8,660,338$
Project Specific Grants / Developer Donations 960,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 960,000$
Reserve Transfer Required - - - 379,453 - - - - - - 379,453
Capital Fund Balance 590,000 182,070 493,228 1,611,631 645,411 382,130 809,190 838,422 868,710 900,092 7,320,885
Total Funding Sources 1,550,000$ 182,070$ 493,228$ 1,991,084$ 645,411$ 382,130$ 809,190$ 838,422$ 868,710$ 900,092$ 8,660,338$
Cash Flow Summary FYE 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033
Revenue Under Existing Rates 1,439,846$ 1,435,630$ 1,438,212$ 1,442,145$ 1,445,899$ 1,449,453$ 1,453,362$ 1,457,071$ 1,460,910$ 1,464,765$
Revenue with Proposed Increase 1,565,985$ 1,622,139$ 1,687,811$ 1,757,670$ 1,830,308$ 1,905,830$ 1,984,923$ 2,067,170$ 2,153,045$ 2,242,584$
Annual Expenditures 1,169,122$ 1,010,715$ 1,069,800$ 1,098,466$ 1,093,138$ 1,143,849$ 1,160,634$ 1,196,932$ 1,234,410$ 1,273,106$
Net Cash Flow After Increase 396,863$ 611,424$ 618,011$ 659,203$ 737,170$ 761,981$ 824,289$ 870,238$ 918,635$ 969,478$
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Parrish, Blessing & Associates, Inc.
Economic Consultants
11 | Page
Anchorage Office: Main Office:
2100 Atwood Drive 3975 University Avenue, Suite 215
Anchorage, AK 99517 Fairfax, VA 22030
Telephone (907) 242-0659 Telephone (703) 352-4830
Finally, we show the impact to water utility operations under the scenario rate
increases are not implemented. If we assume capital projects over the forecast
period remain at $8.66 million, a “no rate increase” scenario does not generate
sufficient cash flow to build up operating and capital reserve levels to meet best
practices. Under this scenario Exhibit 3 below shows that capital fund balance drops
from $7,320,885 (Exhibit 1 Capital Fund Balance) to $2,231,931 over the forecast
period, requiring the City to either issue $5,088,954 in debt service to cover the
deficiency, use other financing options to fund capital projects, or to simply defer the
project until capital fund balance is sufficient to cover the capital costs.
Exhibit 3: Capital Financing Plan Without Rate Increases – Water Utility
As shown in Exhibit 4 below assuming a “No Rate Increase” scenario, we believe the
water utility may likely experience significant negative operating cash flows, resulting
in the number of days of cash operating expenses dropping from the recommended
90 days to a negative 830 days. Further capital reserves are depleted by 2027.
Fund Balances - Projected Y-E 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033
Operating Reserves 288,277$ 249,217$ 263,786$ 270,855$ 269,541$ 282,045$ 286,184$ 295,134$ 304,375$ 313,917$
Capital Reserves 934,667 1,426,447 1,572,323 652,135 761,510 1,147,895 1,187,552 1,240,107 1,311,793 1,404,432
Debt Reserves - - - - - - - - - -
Total 1,222,944$ 1,675,665$ 1,836,109$ 922,990$ 1,031,051$ 1,429,940$ 1,473,736$ 1,535,241$ 1,616,168$ 1,718,348$
Combined Minimum Target Balance 626,749$ 607,992$ 637,434$ 721,789$ 746,730$ 770,351$ 805,478$ 844,981$ 885,891$ 928,255$
Number of Days of Cash Operating Expense 90 90 90 90 90 90 90 90 90 90
Capital Funding 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Total
Total Capital Projects 1,550,000$ 182,070$ 493,228$ 1,991,084$ 645,411$ 382,130$ 809,190$ 838,422$ 868,710$ 900,092$ 8,660,338$
Project Specific Grants / Developer Donations 960,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 960,000$
Reserve Transfer Required - - - 379,453 - - - - - - 379,453
Capital Fund Balance 590,000 182,070 493,228 966,633 - - - - - - 2,231,931
ADEC & Other Loans [NOTE A]- - - - - - - - - - -
Rates - - - 644,998 645,411 382,130 809,190 838,422 868,710 900,092 5,088,954
Total Funding Sources 1,550,000$ 182,070$ 493,228$ 1,991,084$ 645,411$ 382,130$ 809,190$ 838,422$ 868,710$ 900,092$ 8,660,338$
Page 14
Parrish, Blessing & Associates, Inc.
Economic Consultants
12 | Page
Anchorage Office: Main Office:
2100 Atwood Drive 3975 University Avenue, Suite 215
Anchorage, AK 99517 Fairfax, VA 22030
Telephone (907) 242-0659 Telephone (703) 352-4830
Exhibit 4: Revenue Needs Assessment – Water Utility “Without Approved Rate
Increases”
WASTEWATER UTILITY
a) Capital Financing Strategy
As shown in Exhibit 5 below, the City has identified $19,973,126 (escalated)
in capital improvement and replacement projects planned for construction over the
study period. Exhibit 5 also shows the funding source by year for the proposed
wastewater utility capital projects consisting of $13,274,914 in grants, $1,220,454 in
reserve transfers and $5,477,758 in unrestricted capital fund balance. Consistent
with the water utility, the City has instructed us not to consider debt financing as a
capital financing option in these rate studies given the current governance structure
requiring voter approval for the City to incur debt.
Exhibit 5: Capital Financing Plan – Wastew ater Utility “With Approved Rate
Increases”
Cash Flow Summary FYE 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033
Revenue Under Existing Rates 1,439,846$ 1,435,630$ 1,438,212$ 1,442,145$ 1,439,128$ 1,442,715$ 1,446,311$ 1,449,916$ 1,453,531$ 1,457,155$
Revenue with Proposed Increase 1,439,846$ 1,435,630$ 1,438,212$ 1,442,145$ 1,439,128$ 1,442,715$ 1,446,311$ 1,449,916$ 1,453,531$ 1,457,155$
Annual Expenditures 1,169,122$ 1,010,715$ 1,069,800$ 1,743,464$ 1,738,550$ 1,525,979$ 1,969,825$ 2,035,354$ 2,103,120$ 2,173,198$
Net Cash Flow After Increase 270,724$ 424,915$ 368,412$ (301,319)$ (299,422)$ (83,264)$ (523,514)$ (585,438)$ (649,589)$ (716,043)$
Fund Balances - Projected Y-E 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033
Operating Reserves 288,277$ 249,217$ 263,786$ (37,533)$ (336,954)$ (420,219)$ (943,732)$ (1,529,170)$ (2,178,759)$ (2,894,802)$
Capital Reserves 755,254 1,056,040 943,056 - - - - - - -
Debt Reserves - - - - - - - - - -
Total 1,043,531$ 1,305,257$ 1,206,843$ (37,533)$ (336,954)$ (420,219)$ (943,732)$ (1,529,170)$ (2,178,759)$ (2,894,802)$
Combined Minimum Target Balance 626,749$ 607,992$ 637,434$ 721,789$ 746,730$ 770,351$ 805,478$ 844,981$ 885,891$ 928,255$
Number of Days of Cash Operating Expense 90 90 90 (12) (113) (134) (297) (466) (644) (830)
Capital Funding 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Total
Total Capital Projects 4,100,000$ 728,280$ 8,316,047$ 278,084$ 1,296,585$ 2,388,310$ 678,780$ 703,300$ 728,707$ 755,032$ 19,973,126$
Project Specific Grants / Developer Donations 3,380,000$ 462,672$ 6,469,311$ 222,467$ 829,815$ 1,910,648$ -$ -$ -$ -$ 13,274,914$
Reserve Transfer Required 318,611 - 901,843 - - - - - - - 1,220,454
Capital Fund Balance 401,389 265,608 944,893 55,617 466,771 477,662 678,780 703,300 728,707 755,032 5,477,758
Total Funding Sources 4,100,000$ 728,280$ 8,316,047$ 278,084$ 1,296,585$ 2,388,310$ 678,780$ 703,300$ 728,707$ 755,032$ 19,973,126$
Page 15
Parrish, Blessing & Associates, Inc.
Economic Consultants
13 | Page
Anchorage Office: Main Office:
2100 Atwood Drive 3975 University Avenue, Suite 215
Anchorage, AK 99517 Fairfax, VA 22030
Telephone (907) 242-0659 Telephone (703) 352-4830
b) Revenue Needs Assessment
As with the water utility, there are also two critical financial goals that we
proposed for the wastewater rate study. First, utility rates must be just and
reasonable. Second, the operating reserve should be sufficient to cover 90 days
cash operating expenses and the capital reserve should be sufficient to cover capital
projects necessary to provide safe and reliable water service to the City’s customers.
Our recommended rate increases provides a reasonable balance between rates
customers pay for utility service and ability for the City to provide safe and reliable
service. As shown in Exhibit 6 below, revenues at proposed rates increases are
sufficient to meet forecasted water and wastewater utility financial obligations over
the study period to include operating and capital expenses and sufficient reserves to
cover 90 days operating expenses following best practices.
Exhibit 6: Revenue Needs Assessment – Wastewater Utility “With Approved
Rate Increases”
Finally, we show the impact to wastewater utility operations under the
scenario rate increases are not implemented. If we assume capital projects over the
forecast period remain at $19,973,126, a “no rate increase” scenario does not
generate sufficient capital fund balance to achieve our proposed two critical goals of
these rate studies (just and reasonable rates to utility customers at levels allowing
the City to provide safe and reliable service). Under this scenario Exhibit 7 below
shows that capital fund balance drops from $5,477,758 (Exhibit 5 Capital Fund
Balance) to $1,018,144 over the forecast period, requiring the City to either issue
$4,459,614 in debt service to cover the deficiency, rely on other financing options to
fund capital projects or to simply defer the project until capital fund balance is
sufficient to cover the capital costs.
Cash Flow Summary FYE 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033
Revenue Under Existing Rates 1,972,604$ 1,973,472$ 1,977,566$ 1,983,031$ 1,988,285$ 1,993,346$ 1,998,767$ 2,003,996$ 2,009,362$ 2,014,752$
Revenue with Proposed Increase 2,147,757$ 2,232,453$ 2,324,151$ 2,421,160$ 2,522,063$ 2,627,056$ 2,736,877$ 2,851,162$ 2,970,441$ 3,094,808$
Annual Expenditures 1,770,113$ 1,632,527$ 1,715,364$ 1,761,773$ 1,774,699$ 1,844,190$ 1,880,296$ 1,936,473$ 1,994,405$ 2,054,148$
Net Cash Flow After Increase 377,644$ 599,925$ 608,788$ 659,387$ 747,365$ 782,867$ 856,581$ 914,689$ 976,036$ 1,040,660$
Fund Balances - Projected Y-E 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033
Operating Reserves 436,466$ 402,541$ 422,966$ 434,410$ 437,597$ 454,732$ 463,635$ 477,487$ 491,771$ 506,502$
Capital Reserves 540,103 921,848 588,363 1,195,398 1,502,690 1,828,327 2,042,934 2,291,544 2,581,877 2,917,321
Debt Reserves - - - - - - - - - -
Total 976,569$ 1,324,389$ 1,011,329$ 1,629,808$ 1,940,287$ 2,283,059$ 2,506,569$ 2,769,031$ 3,073,648$ 3,423,823$
Combined Minimum Target Balance 827,542$ 834,056$ 1,180,315$ 1,199,067$ 1,253,055$ 1,360,011$ 1,393,097$ 1,430,464$ 1,469,135$ 1,509,157$
Number of Days of Cash Operating Expense 90 90 90 90 90 90 90 90 90 90
Page 16
Parrish, Blessing & Associates, Inc.
Economic Consultants
14 | Page
Anchorage Office: Main Office:
2100 Atwood Drive 3975 University Avenue, Suite 215
Anchorage, AK 99517 Fairfax, VA 22030
Telephone (907) 242-0659 Telephone (703) 352-4830
Exhibit 7: Capital Financing Plan Without Rate Increases – Wastewater
As shown in Exhibit 8 below under a “No Rate Increase” scenario, we believe the
wastewater utility may likely experience significant negative operating cash flows,
resulting in the number of days of cash operating expenses dropping from the
recommended 90 days to a negative 541 days. Furthermore, capital reserves are
depleted by 2026.
Exhibit 8: Revenue Needs Assessment – Wastewater Utility “Without Approved
Rate Increases”
Capital Funding 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Total
Total Capital Projects 4,100,000$ 728,280$ 8,316,047$ 278,084$ 1,296,585$ 2,388,310$ 678,780$ 703,300$ 728,707$ 755,032$ 19,973,126$
Project Specific Grants / Developer Donations 3,380,000$ 462,672$ 6,469,311$ 222,467$ 829,815$ 1,910,648$ -$ -$ -$ -$ 13,274,914$
Reserve Transfer Required 318,611 - 901,843 - - - - - - - 1,220,454
Capital Fund Balance 331,034 265,608 421,502 - - - - - - - 1,018,144
Rates 70,355 - 523,391 55,617 466,771 477,662 678,780 703,300 728,707 755,032 4,459,614
Total Funding Sources 4,100,000$ 728,280$ 8,316,047$ 278,084$ 1,296,585$ 2,388,310$ 678,780$ 703,300$ 728,707$ 755,032$ 19,973,126$
Cash Flow Summary FYE 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033
Revenue Under Existing Rates 1,972,604$ 1,973,472$ 1,977,566$ 1,975,991$ 1,984,924$ 1,983,491$ 1,987,399$ 1,992,406$ 1,997,425$ 2,002,457$
Revenue with Proposed Increase 1,972,604$ 1,973,472$ 1,977,566$ 1,975,991$ 1,984,924$ 1,983,491$ 1,987,399$ 1,992,406$ 1,997,425$ 2,002,457$
Annual Expenditures 1,840,468$ 1,632,527$ 2,238,754$ 1,817,390$ 2,241,470$ 2,321,852$ 2,559,075$ 2,639,774$ 2,723,112$ 2,809,179$
Net Cash Flow After Increase 132,136$ 340,945$ (261,188)$ 158,601$ (256,546)$ (338,361)$ (571,676)$ (647,368)$ (725,687)$ (806,722)$
Fund Balances - Projected Y-E 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033
Operating Reserves 436,466$ 402,541$ 141,352$ 299,954$ 43,408$ (294,953)$ (866,629)$ (1,513,997)$ (2,239,684)$ (3,046,406)$
Capital Reserves 294,595 411,222 - - - - - - - -
Debt Reserves - - - - - - - - - -
Total 731,061$ 813,763$ 141,352$ 299,954$ 43,408$ (294,953)$ (866,629)$ (1,513,997)$ (2,239,684)$ (3,046,406)$
Combined Minimum Target Balance 827,542$ 834,056$ 1,180,315$ 1,199,067$ 1,253,055$ 1,360,011$ 1,393,097$ 1,430,464$ 1,469,135$ 1,509,157$
Number of Days of Cash Operating Expense 90 90 30 62 9 (58) (168) (285) (410) (541)
Page 17
Parrish, Blessing & Associates, Inc.
Economic Consultants
15 | Page
Anchorage Office: Main Office:
2100 Atwood Drive 3975 University Avenue, Suite 215
Anchorage, AK 99517 Fairfax, VA 22030
Telephone (907) 242-0659 Telephone (703) 352-4830
SUMMARY
In this Technical Memorandum describing the revenue requirement rate study
models developed for the City of Kenai water and wastewater utility we have
discussed the underlying financial assumptions relied on and the impact those
assumptions have on revenue needs and rate adjustments. W e provided our
recommendations to adjust rates using a modest rate increase strategy. We have
also illustrated the results of operations when taking a “No Rate Increase Scenario”
has on a going forward basis. This scenario, by itself, may likely impair the water
and wastewater utility from being able to fund both its operating and capital projects
going forward. We expect that our recommended rate adjustments will allow the
water and wastewater utility to continue to provide critical services to the City of
Kenai at just and reasonable rates.
PBA recommends regular review of all underlying assumptions and an update
of the rate analysis as necessary to meet financial obligations of your water and
wastewater utility.
Page 18
CITY OF KENAI
WATER AND WASTEWATER
RATE STUDIES
Page 19
AGENDA
INTRODUCTION
RATE STUDY RESULTS
• EXECUTIVE SUMMARY
• WATER UTILITY RESULTS
• WASTEWATER UTILITY RESULTS
FINDINGS AND RECOMMENDATIONS
QUESTIONS AND ANSWERS
Page 20
II NTRODUCTION-YOU RR
CONSULTANT
64-year Alaska resident
Over 35-years of professional work experience in setting rates for some of the largest and smallest utilities in Alaska:
• Water and wastewater utilities • Solid Waste utilities• Airport operations• Port operations• Electric utilities• Gas utilities• Telecommunication companies
Considerable experience in developing cost allocation studies for local city governments to allocate central services costs to departments within the city.
Filed and supported rate and other cost studies with state public utility commissions or local city councils that determine if the cost studies produce just and reasonable rates.
Hobbies include flying (private pilot) and fishing the Kenai River.
Page 21
EXECUTIVE SUMMARY
•Rate Study developed individually for both the City’s water and wastewater utility using a 10-year forward looking revenue requirement approach.
•Determined if water and wastewater utility are operating with a surplus or deficiency and percent change in rates, upwards or downwards applied on an across-the-board basis, to achieve the revenue requirement.
•Developed two rate study scenarios for both water and wastewater to assess their financial health:
•Scenario one: financial health if rates “ARE NOT INCREASED”.
•Scenario two: rate adjustments to achieve revenue requirements and meet recommended operating and capital reserves.
Applied a strategy of modest increases of 5% for 2024 and 4% thereafter (2025 – 2033) to meet proposed operating and capital costs and achieve operating and capital reserve requirements.
Revenue requirement calculation excludes depreciation and return requirement on rate base.
Recommend periodic review of revenue requirement to assess if rate recommendations continue to provide desired results.
Page 22
WATER UTILITY
REVENUE NEEDS ASSESSMENT – “WITH RATE INCREASES”
Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection
WATER FUND FYE 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033
OPERATING RESERVES
Beginning Balance 598,925$ 288,277$ 249,217$ 263,786$ 270,855$ 269,541$ 282,045$ 286,184$ 295,134$ 304,375$
plus: Net Cash Flow after Rate Increase 396,863 611,424 618,011 659,203 737,170 761,981 824,289 870,238 918,635 969,478
less: Transfer of Surplus to Capital Fund (707,511) (650,483) (603,442) (652,135) (738,483) (749,476) (820,150) (861,288) (909,394) (959,936)
Ending Balance 288,277$ 249,217$ 263,786$ 270,855$ 269,541$ 282,045$ 286,184$ 295,134$ 304,375$ 313,917$
Minimum Target Balance 192,184 166,145 175,858 180,570 179,694 188,030 190,789 196,756 202,917 209,278
Maximum Funds to be Kept as Operating Reserves 288,277 249,217 263,786 270,855 269,541 282,045 286,184 295,134 304,375 313,917
Info: No of Days of Cash Operating Expenses 90 90 90 90 90 90 90 90 90 90
CAPITAL RESERVES
Beginning Balance [b]797,225$ 934,667$ 1,426,447$ 1,572,323$ 652,135$ 761,510$ 1,147,895$ 1,187,552$ 1,240,107$ 1,311,793$
plus: Rate Funded System Reinvestment - - - - - - - - - -
plus: Grants / Developer Donations / Other Outside Sources 960,000 - - 379,453 - - - - - -
plus: Net Debt Proceeds Available for Projects - - - - - - - - - -
plus: Interest Earnings 19,931 23,367 35,661 39,308 16,303 19,038 28,697 29,689 31,003 32,795
plus: Transfer of Surplus from Operating Fund 707,511 650,483 603,442 652,135 738,483 749,476 820,150 861,288 909,394 959,936
plus: Direct Rate Funding - - - - - - - - - -
less: Capital Expenditures (1,550,000) (182,070) (493,228) (1,991,084) (645,411) (382,130) (809,190) (838,422) (868,710) (900,092)
Ending Balance 934,667$ 1,426,447$ 1,572,323$ 652,135$ 761,510$ 1,147,895$ 1,187,552$ 1,240,107$ 1,311,793$ 1,404,432$
Page 23
WATER UTILITY
REVENUE NEEDS ASSESSMENT – “WITHOUT RATE INCREASES”
Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection
WASTEWATER FUND FYE 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033
OPERATING RESERVES
Beginning Balance 598,925$ 288,277$ 249,217$ 263,786$ (37,533)$ (336,954)$ (420,219)$ (943,732)$ (1,529,170)$ (2,178,759)$
plus: Net Cash Flow after Rate Increase 270,724 424,915 368,412 (301,319) (299,422) (83,264) (523,514) (585,438) (649,589) (716,043)
less: Transfer of Surplus to Capital Fund (581,373) (463,975) (353,843) - - - - - - -
Ending Balance 288,277$ 249,217$ 263,786$ (37,533)$ (336,954)$ (420,219)$ (943,732)$ (1,529,170)$ (2,178,759)$ (2,894,802)$
Minimum Target Balance 192,184 166,145 175,858 180,570 179,694 188,030 190,789 196,756 202,917 209,278
Maximum Funds to be Kept as Operating Reserves 288,277 249,217 263,786 270,855 269,541 282,045 286,184 295,134 304,375 313,917
Info: No of Days of Cash Operating Expenses 90 90 90 (12) (113) (134) (297) (466) (644) (830)
CAPITAL RESERVES
Beginning Balance [b]745,250$ 755,254$ 1,056,040$ 943,056$ -$ -$ -$ -$ -$ -$
plus: Rate Funded System Reinvestment - - - - - - - - - -
plus: Grants / Developer Donations / Other Outside Sources 960,000 - - 379,453 - - - - - -
plus: Net Debt Proceeds Available for Projects - - - - - - - - - -
plus: Interest Earnings 18,631 18,881 26,401 23,576 - - - - - -
plus: Transfer of Surplus from Operating Fund 581,373 463,975 353,843 - - - - - - -
plus: Direct Rate Funding - - - 644,998 645,411 382,130 809,190 838,422 868,710 900,092
less: Capital Expenditures (1,550,000) (182,070) (493,228) (1,991,084) (645,411) (382,130) (809,190) (838,422) (868,710) (900,092)
Ending Balance 755,254$ 1,056,040$ 943,056$ -$ -$ -$ -$ -$ -$ -$
Page 24
WASTEWATER UTILITY
REVENUE NEEDS ASSESSMENT – “WITH RATE INCREASES”
Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection
WASTEWATER FUND FYE 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033
OPERATING RESERVES
Beginning Balance 598,925$ 436,466$ 402,541$ 422,966$ 434,410$ 437,597$ 454,732$ 463,635$ 477,487$ 491,771$
plus: Net Cash Flow after Rate Increase 377,644 599,925 608,788 659,387 747,365 782,867 856,581 914,689 976,036 1,040,660
less: Transfer of Surplus to Capital Fund (540,102) (633,850) (588,362) (647,943) (744,177) (765,732) (847,678) (900,837) (961,751) (1,025,929)
Ending Balance 436,466$ 402,541$ 422,966$ 434,410$ 437,597$ 454,732$ 463,635$ 477,487$ 491,771$ 506,502$
Minimum Target Balance 290,977 268,361 281,978 289,607 291,731 303,154 309,090 318,324 327,847 337,668
Maximum Funds to be Kept as Operating Reserves 436,466 402,541 422,966 434,410 437,597 454,732 463,635 477,487 491,771 506,502
Info: No of Days of Cash Operating Expenses 90 90 90 90 90 90 90 90 90 90
CAPITAL RESERVES
Beginning Balance [b]391,599$ 540,103$ 921,848$ 588,363$ 1,195,398$ 1,502,690$ 1,828,327$ 2,042,934$ 2,291,544$ 2,581,877$
plus: Rate Funded System Reinvestment - - - - - - - - - -
plus: Grants / Developer Donations / Other Outside Sources 3,698,611 462,672 7,371,154 222,467 829,815 1,910,648 - - - -
plus: Net Debt Proceeds Available for Projects - - - - - - - - - -
plus: Interest Earnings 9,790 13,503 23,046 14,709 29,885 37,567 45,708 51,073 57,289 64,547
plus: Transfer of Surplus from Operating Fund 540,102 633,850 588,362 647,943 744,177 765,732 847,678 900,837 961,751 1,025,929
plus: Direct Rate Funding - - - - - - - - - -
less: Capital Expenditures (4,100,000) (728,280) (8,316,047) (278,084) (1,296,585) (2,388,310) (678,780) (703,300) (728,707) (755,032)
Ending Balance 540,103$ 921,848$ 588,363$ 1,195,398$ 1,502,690$ 1,828,327$ 2,042,934$ 2,291,544$ 2,581,877$ 2,917,321$
Page 25
WASTEWATER UTILITY
REVENUE NEEDS ASSESSMENT – “WITHOUT RATE INCREASES”
Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection
WASTEWATER FUND FYE 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033
OPERATING RESERVES
Beginning Balance 598,925$ 436,466$ 402,541$ 141,352$ 299,954$ 43,408$ (294,953)$ (866,629)$ (1,513,997)$ (2,239,684)$
plus: Net Cash Flow after Rate Increase 132,136 340,945 (261,188) 158,601 (256,546) (338,361) (571,676) (647,368) (725,687) (806,722)
less: Transfer of Surplus to Capital Fund (294,595) (374,870) - - - - - - - -
Ending Balance 436,466$ 402,541$ 141,352$ 299,954$ 43,408$ (294,953)$ (866,629)$ (1,513,997)$ (2,239,684)$ (3,046,406)$
Minimum Target Balance 290,977 268,361 281,978 289,607 291,731 303,154 309,090 318,324 327,847 337,668
Maximum Funds to be Kept as Operating Reserves 436,466 402,541 422,966 434,410 437,597 454,732 463,635 477,487 491,771 506,502
Info: No of Days of Cash Operating Expenses 90 90 30 62 9 (58) (168) (285) (410) (541)
CAPITAL RESERVES
Beginning Balance [b]322,960$ 294,595$ 411,222$ -$ -$ -$ -$ -$ -$ -$
plus: Rate Funded System Reinvestment - - - - - - - - - -
plus: Grants / Developer Donations / Other Outside Sources 3,698,611 462,672 7,371,154 222,467 829,815 1,910,648 - - - -
plus: Net Debt Proceeds Available for Projects - - - - - - - - - -
plus: Interest Earnings 8,074 7,365 10,281 - - - - - - -
plus: Transfer of Surplus from Operating Fund 294,595 374,870 - - - - - - - -
plus: Direct Rate Funding 70,355 - 523,391 55,617 466,771 477,662 678,780 703,300 728,707 755,032
less: Capital Expenditures (4,100,000) (728,280) (8,316,047) (278,084) (1,296,585) (2,388,310) (678,780) (703,300) (728,707) (755,032)
Ending Balance 294,595$ 411,222$ -$ -$ -$ -$ -$ -$ -$ -$
Page 26
FINDINGS AND
RECOMMENDATIONS
Both water and wastewater utility without recommended
rate increases may likely result in negative cash flows
and depletion of capital fund balance.
Adopt a strategy of modest rate increases
Consider assessing governance policy requiring voter
approval for capital projects and why.
Review your revenue requirement annually by updating
your rate study cost models
• Work product ownership allows
you to assess how you are doing
on rates going forward.
Page 27
QUESTIONS AND
ANSWERS
Page 28
•
•
•
•
•
•
•
Rank Airport Code Airport Location and Name O&D Passengers PDEW Share RDEW Fare
1 ANC Anchorage International Airport 302,481 414.4 92.5%$163,197 $394
2 ENA Kenai Municipal Airport 23,604 32.3 7.2%$10,835 $335
3 HOM Homer Airport 781 1.1 0.2%$81 $76
4
5
6
7
8
All Airports 326,867 447.8 100.0%$174,113 $389
Rank Airport Code Airport Location and Name O&D Passengers PDEW Share RDEW Fare
1 ANC Anchorage International Airport 279,532 382.9 92.0%$136,128 $356
2 ENA Kenai Municipal Airport 23,438 32.1 7.7%$10,640 $331
3 HOM Homer Airport 781 1.1 0.3%$81 $76
4
5
6
7
8
All Airports 303,751 416.1 100.0%$146,849 $353
Rank Airport Code Airport Location and Name O&D Passengers PDEW Share RDEW Fare
1 ANC Anchorage International Airport 22,950 31.4 99.3%$27,069 $861
2 ENA Kenai Municipal Airport 166 0.2 0.7%$195 $858
3
4
5
6
7
8
All Airports 23,116 31.7 100.0%$27,264 $861
International Traffic
Domestic Traffic
Leakage and Retention Study
Kenai Regional Airport
Year-End Third Quarter 2023 - Published April 2024
The catchment area of Kenai Regional Airport consists of eight zip codes in and around Kenai.
A sample of 1,757 tickets booked for travel in the year-end third quarter 2023 in the eight zip codes of the catchment
area were combined with year-end third quarter 2023 Department of Transportation DB1A data to determine the
number of passengers traveling to and from the Kenai catchment area. The 1,757 tickets were extrapolated to a total
market size of 326,867 origin and destination (O&D) passengers in the catchment area.
The number of tickets purchased over the one-year period of the survey translates to demand of 447.8 passengers
per day each way (PDEW) generated in the Kenai catchment area.
Domestic travel accounts for 92.9% of the traffic, and international traffic accounts for 7.1% of the traffic.
Anchorage International Airport captured 92.0% of the domestic traffic and 100.0% of the international traffic; Kenai
Municipal Airport captured 7.7% of the domestic traffic and none of the international traffic; Homer Airport captured
0.3% of the domestic traffic and none of the international traffic.
Seattle/Tacoma, Minneapolis/St. Paul, Denver, Chicago and Dallas/Ft. Worth are the catchment area's five largest
markets.
Delta captured 29.7% of the traffic generated in the catchment area; Alaska captured 28.6%, United captured 14.2%,
American captured 13.6%, Ravn Alaska captured 7.0%, Sun Country captured 2.0%, and Grant Aviation captured
0.9% of the traffic.
Domestic + International Traffic
Page 29
Kenai Regional Airport
Leakage and Retention Study
Year-End Second Quarter 2023
Summary Cover
Kenai Regional Airport Zip Code Catchment Area Map 3
Kenai Regional Airport Zip Code Population and Ticket Sample List 4
Kenai Regional Airport ARC Sample Tickets and Share by Zip Code and Point of Origin 5
Kenai Regional Airport ARC Sample Tickets and Share by City and Point of Origin 6
Kenai Regional Airport ARC Sample Tickets and Share by County and Point of Origin 7
Kenai Regional Airport Drive Time Map 8
Distribution of Traffic among Airports in the Region 9
15 Largest O&D Markets and Average Fares in the Catchment Area 10
Domestic Market Size Rankings by Airport (Markets 1-50)11
Domestic Market Size Rankings by Airport (Markets 51-100)12
Domestic Market Size Rankings by Airline 13
Metro Area Multiple Airport Detail 14
Domestic Resident and Visitor Point of Origin PDEW and Percentage by Airport (1-50)15
Domestic Resident and Visitor Point of Origin PDEW and Percentage by Airport (51-100)16
International Market Size Rankings by Airport 17
International Market Size Rankings by Airline 18
Domestic + International Airline Rankings by Airport 19
Domestic Airline Rankings by Airport 20
International Airline Rankings by Airport 21
Distribution of Traffic among Airlines - Anchorage International Airport 22
15 Largest O&D Markets and Average Fares - Anchorage International Airport 23
Nonstop Routes Flown - Anchorage International Airport 24
Market Size Rankings and Airline Detail (Mkts 1-50) - Anchorage International Airport 25
Market Size Rankings and Airline Detail (Mkts 51-100) - Anchorage International Airport 26
Distribution of Traffic among Airlines - Kenai Municipal Airport 27
15 Largest O&D Markets and Average Fares - Kenai Municipal Airport 28
Nonstop Routes Flown - Kenai Municipal Airport 29
Market Size Rankings and Airline Detail - Kenai Municipal Airport 30
Distribution of Traffic among Airlines - Homer Airport 31
15 Largest O&D Markets and Average Fares - Homer Airport 32
Nonstop Routes Flown - Homer Airport 33
Market Size Rankings and Airline Detail - Homer Airport 34
Distribution of Traffic among Airlines - Anchorage International Airport 35
15 Largest O&D Markets and Average Fares - Anchorage International Airport 36
Nonstop Routes Flown - Anchorage International Airport 37
Market Size Rankings and Airline Detail - Anchorage International Airport 38
Distribution of Traffic among Airlines - Anchorage International Airport 39
15 Largest O&D Markets and Average Fares - Anchorage International Airport 40
Nonstop Routes Flown - Anchorage International Airport 41
Market Size Rankings and Airline Detail - Anchorage International Airport 42
Table of Contents
Page 30
Kenai Regional Airport
Leakage and Retention Study
Year-End Second Quarter 2023
Kenai Regional Airport Zip Code Catchment Area Map
Page 3
Page 31
Kenai Regional Airport
Leakage and Retention Study
Year-End Second Quarter 2023
Rank Zip Code City
P.O. Box
Only 2022 Population
Population
Share
Sample
Tickets Ticket Share
Extrapolated
Market Size
1 99669 SOLDOTNA 11,401 45.4%667 38.0%124,087
2 99611 KENAI 11,358 45.2%564 32.1%104,925
3 99672 STERLING 1,240 4.9%188 10.7%34,975
4 99556 ANCHOR POINT 549 2.2%120 6.8%22,324
5 99610 KASILOF 376 1.5%119 6.8%22,138
6 99639 NINILCHIK 104 0.4%28 1.6%5,209
7 99568 CLAM GULCH 73 0.3%19 1.1%3,535
8 99635 NIKISKI 0 0.0%52 3.0%9,674
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
25,101 100.0%1,757 100.0%326,867
Kenai Regional Airport Zip Code Population and Ticket Sample List
Page 4
Page 32
Kenai Regional Airport
Leakage and Retention Study
Year-End Second Quarter 2023
Rank Zip Code City ANC % ANC ENA % ENA HOM % HOM
Total
Total Total
1 99669 SOLDOTNA 569 85.3%98 14.7%0 0.0%667 100.0%667
2 99611 KENAI 492 87.2%72 12.8%0 0.0%564 100.0%564
3 99672 STERLING 184 97.9%4 2.1%0 0.0%188 100.0%188
4 99556 ANCHOR POINT 103 85.8%9 7.5%8 6.7%120 100.0%120
5 99610 KASILOF 102 85.7%17 14.3%0 0.0%119 100.0%119
6 99639 NINILCHIK 24 85.7%4 14.3%0 0.0%28 100.0%28
7 99568 CLAM GULCH 19 100.0%0 0.0%0 0.0%19 100.0%19
8 99635 NIKISKI 45 86.5%7 13.5%0 0.0%52 100.0%52
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
TOTALS 1,538 87.5%211 12.0%8 0.5%1,757 100.0%1,757
Kenai Regional Airport ARC Sample Tickets and Share by Zip Code and Point of Origin
ARC Sample Tickets and Share by Airport
Page 5
Page 33
Kenai Regional Airport
Leakage and Retention Study
Year-End Second Quarter 2023
Rank City ANC % ANC ENA % ENA HOM % HOM Total
1 SOLDOTNA 569 85.3%98 14.7%0 0.0%667
2 KENAI 492 87.2%72 12.8%0 0.0%564
3 STERLING 184 97.9%4 2.1%0 0.0%188
4 ANCHOR POINT 103 85.8%9 7.5%8 6.7%120
5 KASILOF 102 85.7%17 14.3%0 0.0%119
6 NIKISKI 45 86.5%7 13.5%0 0.0%52
7 NINILCHIK 24 85.7%4 14.3%0 0.0%28
8 CLAM GULCH 19 100.0%0 0.0%0 0.0%19
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
TOTALS 1,538 87.5%211 12.0%8 0.5%1,757
Kenai Regional Airport ARC Sample Tickets and Share by City and Point of Origin
ARC Sample Tickets and Share by Airport
Page 6
Page 34
Kenai Regional Airport
Leakage and Retention Study
Year-End Second Quarter 2023
Kenai Regional Airport Drive Time Map
Page 7
Page 35
Kenai Regional Airport
Leakage and Retention Study
Year-End Second Quarter 2023
Distribution of Traffic among Airports in the Region
92.5%
7.2%
0.2%
ANC
ENA
HOM
279,532
23,438 781
22,950
166
ANC ENA HOM
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
O&
D
P
a
s
s
e
n
g
e
r
s
Domestic International
Page 8
Page 36
Kenai Regional Airport
Leakage and Retention Study
Year-End Second Quarter 2023
15 Largest O&D Markets and Average Fares in the Catchment Area
4,167
4,737
5,310
5,538
5,765
5,767
5,917
7,439
8,355
9,094
10,658
12,527
15,519
15,913
50,129
5.7
6.5
7.3
7.6
7.9
7.9
8.1
10.2
11.4
12.5
14.6
17.2
21.3
21.8
68.7
0 10,000 20,000 30,000 40,000 50,000 60,000
Orlando/Sanford
Sacramento
Portland, OR
Houston
Salt Lake City
Kansas City
Los Angeles Basin
Phoenix/Mesa
Anchorage
Las Vegas
Dallas/Ft. Worth
Chicago
Denver
Minneapolis/St. Paul
Seattle/Everett
Annual O&D
PDEW
$430
$337
$287
$461
$353
$407
$326
$294
$47
$258
$427
$312
$348
$302
$241
$0 $100 $200 $300 $400 $500
Orlando/Sanford
Sacramento
Portland, OR
Houston
Salt Lake City
Kansas City
Los Angeles Basin
Phoenix/Mesa
Anchorage
Las Vegas
Dallas/Ft. Worth
Chicago
Denver
Minneapolis/St. Paul
Seattle/Everett
One-Way Fare
Page 9
Page 37
Kenai Regional Airport
Leakage and Retention Study
Year-End Second Quarter 2023
Rank Metro Area ANC ENA HOM Total ANC ENA HOM ANC ENA HOM Total
1 Seattle/Everett 65.3 3.4 68.7 95.1%4.9%$232 $399 $241
2 Minneapolis/St. Paul 21.4 0.4 21.8 98.3%1.7%$301 $363 $302
3 Denver 21.0 0.3 21.3 98.6%1.4%$346 $466 $348
4 Chicago 17.0 0.2 17.2 99.0%1.0%$312 $300 $312
5 Dallas/Ft. Worth 14.2 0.4 14.6 97.4%2.6%$426 $450 $427
6 Las Vegas 11.9 0.5 12.5 95.8%4.2%$247 $513 $258
7 Anchorage 10.4 1.1 11.4 90.7%9.3%$44 $76 $47
8 Phoenix/Mesa 10.0 0.2 10.2 98.2%1.8%$287 $702 $294
9 Los Angeles Basin 7.1 1.0 8.1 87.1%12.9%$304 $475 $326
10 Kansas City 7.7 0.2 7.9 96.9%3.1%$404 $517 $407
11 Salt Lake City 7.0 0.9 7.9 89.1%10.9%$335 $502 $353
12 Houston 6.9 0.7 7.6 91.3%8.7%$449 $586 $461
13 Portland, OR 6.4 0.9 7.3 87.6%12.4%$275 $377 $287
14 Sacramento 5.8 0.7 6.5 90.0%10.0%$321 $481 $337
15 Orlando/Sanford 5.7 0.0 5.7 99.5%0.5%$428 $805 $430
16 Fairbanks 4.0 1.7 5.7 69.7%30.3%$137 $251 $172
17 South Florida 5.5 0.1 5.7 97.4%2.6%$542 $566 $543
18 Indianapolis 5.5 0.1 5.6 98.4%1.6%$465 $523 $466
19 Tulsa 4.9 0.1 5.0 98.1%1.9%$450 $462 $451
20 Honolulu 4.5 0.3 4.8 93.5%6.5%$313 $545 $329
21 Philadelphia/Trenton 4.6 4.6 99.3%$465 $467
22 Boise 3.9 0.4 4.3 90.3%9.7%$283 $459 $300
23 San Antonio 4.0 0.2 4.2 95.8%4.2%$461 $389 $458
24 Charlotte/Concord 3.7 3.7 100.0%$478 $478
25 Spokane 3.1 0.4 3.5 88.6%11.4%$317 $571 $346
26 Memphis 3.4 0.0 3.5 99.1%0.9%$443 $467 $443
27 New York/Newark 3.3 0.2 3.4 95.1%4.9%$447 $732 $460
28 Fargo 3.2 0.1 3.3 97.3%2.7%$405 $564 $409
29 San Francisco Bay Area 2.6 0.6 3.3 80.7%19.3%$299 $520 $341
30 Rapid City 3.2 3.2 100.0%$442 $442
31 Des Moines 3.1 0.1 3.1 98.1%1.9%$380 $619 $385
32 St. Louis/Belleville 3.0 0.1 3.1 96.1%3.9%$424 $448 $425
33 Omaha 3.0 0.1 3.1 97.1%2.9%$400 $483 $403
34 Boston 2.9 0.1 2.9 97.9%2.1%$464 $655 $468
35 Pittsburgh 2.9 0.0 2.9 99.0%1.0%$445 $354 $444
36 Washington/Baltimore 2.7 0.2 2.9 94.8%5.2%$472 $409 $469
37 Ft. Myers/Punta Gorda 2.7 0.1 2.8 97.2%2.8%$455 $522 $457
38 Spingfield, MO 2.6 0.0 2.6 98.9%1.1%$476 $704 $479
39 Sioux Falls 2.6 2.6 100.0%$411 $411
40 Richmond 2.6 2.6 100.0%$459 $459
41 Reno 2.4 2.4 100.0%$347 $347
42 Cleveland 2.3 2.3 100.0%$438 $438
43 Little Rock 2.2 0.1 2.3 97.1%2.9%$458 $572 $461
44 Chattanooga 2.2 2.2 100.0%$511 $511
45 Tampa/St. Petersburg 2.0 0.1 2.1 95.8%4.2%$460 $610 $466
46 Buffalo 2.1 0.0 2.1 98.8%1.2%$410 $749 $415
47 Billings 2.0 0.0 2.1 98.5%1.5%$407 $434 $407
48 Maui 2.0 0.0 2.0 98.6%1.4%$306 $386 $307
49 Atlanta 1.6 1.9 85.2%$361 $385
50 Grand Junction 1.7 0.1 1.8 95.1%4.9%$393 $598 $403
Markets 1-50 315.4 25.3 1.1 342.1 92.2%7.4%0.3%$341 $281 $76 $336
Other Markets 67.5 6.8 0.0 74.0 91.2%9.2%0.0%$423 $520 $432
All Markets 382.9 32.1 1.1 416.1 92.0%7.7%0.3%$356 $331 $76 $353
Passengers per Day Each Way Market Share One-Way Fare
Domestic Market Size Rankings by Airport (Markets 1-50)
Page 10
Page 38
Kenai Regional Airport
Leakage and Retention Study
Year-End Second Quarter 2023
Rank Metro Area ANC ENA HOM Total ANC ENA HOM ANC ENA HOM Total
51 Gulfport 1.7 0.0 1.8 98.5%1.5%$404 $885 $411
52 Wichita 1.7 1.7 100.0%$407 $407
53 Burlington 1.7 0.1 1.7 96.9%3.1%$490 $834 $501
54 Jacksonville 1.6 1.6 100.0%$426 $426
55 New Orleans 1.5 0.2 1.6 90.8%9.2%$462 $650 $479
56 San Juan 1.6 1.6 100.0%$622 $622
57 Tri-Cities 1.6 1.6 100.0%$502 $502
58 Appleton 1.6 1.6 100.0%$449 $449
59 Detroit 1.3 0.2 1.6 84.1%15.9%$436 $530 $451
60 Birmingham 1.5 0.1 1.5 96.0%4.0%$444 $479 $445
61 Nashville 1.4 0.1 1.5 91.9%8.1%$440 $467 $442
62 Duluth 1.5 0.0 1.5 98.0%2.0%$410 $571 $413
63 San Diego 1.2 0.2 1.5 83.6%16.4%$308 $648 $364
64 Homer 1.3 0.0 1.4 97.6%2.4%$76 $48 $75
65 Northwest Arkansas 1.3 0.0 1.3 96.6%3.4%$378 $656 $388
66 Knoxville 1.3 1.3 100.0%$409 $409
67 Kodiak 1.1 0.2 1.3 82.5%17.5%$173 $351 $204
68 Louisville 1.2 0.0 1.2 98.0%2.0%$441 $668 $446
69 Grand Rapids 1.2 1.2 100.0%$428 $428
70 Harrisburg 1.2 1.2 100.0%$524 $524
71 Greenville/Spartanburg 1.1 1.1 100.0%$430 $430
72 Albuquerque 1.1 1.1 100.0%$442 $442
73 Juneau 0.5 0.5 1.1 50.5%49.5%$200 $339 $269
74 Raleigh/Durham 0.9 0.1 1.0 94.0%6.0%$417 $356 $414
75 Kona 0.9 0.0 1.0 96.9%3.1%$308 $474 $313
76 Gainesville 1.0 1.0 100.0%$606 $606
77 Green Bay 1.0 1.0 100.0%$489 $489
78 Norfolk/Newport News 1.0 1.0 100.0%$482 $482
79 Lansing 0.9 0.9 100.0%$569 $569
80 Bethel 0.8 0.2 0.9 81.7%18.3%$170 $280 $190
81 Augusta 0.9 0.9 100.0%$439 $439
82 Columbus, OH 0.9 0.9 100.0%$414 $414
83 Portland, ME 0.8 0.0 0.9 96.5%3.5%$498 $709 $505
84 Charleston, SC 0.8 0.1 0.8 93.0%7.0%$423 $489 $428
85 Corpus Christi 0.8 0.8 100.0%$399 $399
86 Hartford 0.8 0.8 100.0%$570 $570
87 Austin 0.6 0.2 0.8 71.0%29.0%$404 $550 $446
88 King Salmon 0.6 0.2 0.8 77.8%22.2%$125 $367 $178
89 Bozeman 0.6 0.2 0.8 76.5%23.5%$365 $461 $387
90 Madison 0.8 0.8 100.0%$364 $364
91 Traverse City 0.7 0.7 100.0%$421 $421
92 Minot 0.5 0.2 0.7 70.0%30.0%$543 $472 $522
93 South Texas 0.7 0.0 0.7 96.6%3.4%$486 $840 $499
94 Tallahassee 0.7 0.7 100.0%$511 $511
95 Rochester 0.7 0.7 100.0%$490 $490
96 Wrangell 0.7 0.7 100.0%$367 $367
97 Marquette 0.7 0.7 100.0%$523 $523
98 Albany 0.6 0.1 0.7 91.0%9.0%$500 $727 $520
99 Fresno 0.6 0.1 0.7 86.2%13.8%$374 $538 $397
100 Evansville 0.6 0.6 100.0%$548 $548
Markets 51-100 51.9 3.1 0.0 55.0 94.3%5.7%0.0%$425 $477 $428
Other Markets 15.7 3.7 0.0 19.0 82.3%19.3%0.0%$418 $557 $442
All Markets 382.9 32.1 1.1 416.1 92.0%7.7%0.3%$356 $331 $76 $353
Domestic Market Size Rankings by Airport (Markets 51-100)
Passengers per Day Each Way Market Share One-Way Fare
Page 11
Page 39
Kenai Regional Airport
Leakage and Retention Study
Year-End Second Quarter 2023
Rank Metro Area AS DL UA AA 7H SY Total AS DL UA AA 7H SY Total
1 Seattle/Everett 32.8 32.5 3.4 68.7 $241 $223 $399 $241
2 Minneapolis/St. Paul 4.1 8.2 1.4 0.4 7.8 21.8 $283 $389 $208 $363 $235 $302
3 Denver 3.7 5.2 12.0 0.3 0.0 21.3 $333 $282 $378 $466 $271 $348
4 Chicago 13.6 0.6 2.8 0.2 17.2 $300 $305 $369 $300 $312
5 Dallas/Ft. Worth 3.8 1.6 0.9 7.8 0.4 0.0 14.6 $377 $366 $382 $467 $450 $305 $427
6 Las Vegas 3.7 7.5 0.6 0.2 0.5 0.0 12.5 $289 $224 $208 $454 $513 $303 $258
7 Anchorage 6.8 11.4 $49 $47
8 Phoenix/Mesa 4.7 5.4 0.2 10.2 $291 $283 $702 $294
9 Los Angeles Basin 3.0 3.8 0.3 1.0 0.0 8.1 $314 $293 $340 $475 $294 $326
10 Kansas City 1.0 2.9 1.9 1.9 0.2 7.9 $369 $416 $439 $366 $517 $407
11 Salt Lake City 1.0 4.7 1.3 0.9 7.9 $302 $352 $303 $502 $353
12 Houston 1.0 1.3 2.6 2.0 0.7 0.0 7.6 $409 $398 $531 $392 $586 $312 $461
13 Portland, OR 4.3 1.7 0.3 0.9 7.3 $276 $259 $348 $377 $287
14 Sacramento 1.8 2.3 1.8 0.7 6.5 $321 $290 $360 $481 $337
15 Orlando/Sanford 1.7 2.4 1.3 0.2 0.0 0.1 5.7 $392 $451 $441 $417 $805 $311 $430
16 Fairbanks 4.0 1.7 5.7 $137 $251 $172
17 South Florida 0.7 0.5 1.0 3.4 0.1 5.7 $407 $554 $611 $547 $566 $543
18 Indianapolis 2.6 1.0 1.9 0.1 0.0 5.6 $400 $495 $537 $523 $240 $466
19 Tulsa 0.3 1.9 2.6 0.1 5.0 $388 $461 $450 $462 $451
20 Honolulu 4.5 0.3 4.8 $313 $545 $329
21 Philadelphia/Trenton 1.6 1.0 1.9 0.0 0.1 4.6 $446 $465 $486 $845 $371 $467
22 Boise 0.3 3.6 0.4 4.3 $327 $279 $459 $300
23 San Antonio 0.5 0.3 2.3 1.0 0.2 4.2 $384 $441 $475 $471 $389 $458
24 Charlotte/Concord 2.2 0.4 1.1 0.0 3.7 $458 $469 $526 $356 $478
25 Spokane 2.0 1.1 0.4 3.5 $332 $290 $571 $346
26 Memphis 1.7 0.7 1.0 0.0 3.5 $394 $546 $456 $467 $443
27 New York/Newark 2.3 0.3 0.7 0.2 0.1 3.4 $415 $477 $549 $732 $290 $460
28 Fargo 2.5 0.7 0.1 3.3 $405 $404 $564 $409
29 San Francisco Bay Area 2.4 0.3 0.6 3.3 $304 $253 $520 $341
30 Rapid City 2.4 0.4 0.4 3.2 $442 $460 $428 $442
31 Des Moines 0.4 0.4 2.3 0.1 3.1 $440 $429 $362 $619 $385
32 St. Louis/Belleville 0.6 2.1 0.3 0.1 3.1 $396 $429 $441 $448 $425
33 Omaha 0.3 2.6 0.1 0.0 3.1 $397 $401 $483 $287 $403
34 Boston 0.6 1.7 0.6 0.1 0.1 2.9 $435 $462 $519 $655 $316 $468
35 Pittsburgh 0.3 1.2 1.2 0.0 0.1 2.9 $500 $430 $458 $354 $260 $444
36 Washington/Baltimore 0.8 1.2 0.7 0.2 0.1 2.9 $456 $488 $479 $409 $333 $469
37 Ft. Myers/Punta Gorda 1.6 0.8 0.3 0.1 0.0 2.8 $410 $533 $478 $522 $570 $457
38 Spingfield, MO 0.3 2.3 0.0 2.6 $473 $477 $704 $479
39 Sioux Falls 1.5 0.4 0.8 2.6 $425 $410 $383 $411
40 Richmond 1.1 1.4 0.1 2.6 $477 $452 $299 $459
41 Reno 0.5 1.6 0.3 2.4 $352 $299 $627 $347
42 Cleveland 0.3 1.6 0.3 2.3 $391 $461 $367 $438
43 Little Rock 0.6 1.6 0.1 2.3 $401 $480 $572 $461
44 Chattanooga 0.9 1.3 2.2 $529 $499 $511
45 Tampa/St. Petersburg 0.3 1.8 0.1 2.1 $487 $456 $610 $466
46 Buffalo 0.3 0.3 1.4 0.0 0.0 2.1 $464 $501 $377 $749 $288 $415
47 Billings 2.0 0.0 2.1 $407 $434 $407
48 Maui 2.0 0.0 2.0 $306 $386 $307
49 Atlanta 1.6 0.3 1.9 $361 $520 $385
50 Grand Junction 1.0 0.7 0.1 1.8 $382 $411 $598 $403
50 Largest Markets 111.7 107.4 51.1 36.7 22.0 8.6 342.1 $300 $316 $420 $452 $325 $242 $336
Other Markets 15.5 18.4 9.7 20.2 9.1 0.4 74.0 $356 $492 $484 $438 $396 $350 $432
All Markets 127.2 125.8 60.8 56.8 31.1 8.9 416.1 $306 $342 $431 $447 $346 $247 $353
Domestic Market Size Rankings by Airline
Passengers per Day Each Way One-Way Fare
Page 12
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Kenai Regional Airport
Leakage and Retention Study
Year-End Second Quarter 2023
Rank Metro Area ANC ENA HOM Total ANC ENA HOM ANC ENA HOM Total
1 Seattle/Everett 65.3 3.4 68.7 95.1%4.9%$232 $399 $241
2 Minneapolis/St. Paul 21.4 0.4 21.8 98.3%1.7%$301 $363 $302
3 Denver 21.0 0.3 21.3 98.6%1.4%$346 $466 $348
4 Chicago 17.0 0.2 17.2 99.0%1.0%$312 $300 $312
5 Dallas/Ft. Worth 14.2 0.4 14.6 97.4%2.6%$426 $450 $427
6 Las Vegas 11.9 0.5 12.5 95.8%4.2%$247 $513 $258
7 Anchorage 10.4 1.1 11.4 90.7%9.3%$44 $76 $47
8 Phoenix/Mesa 10.0 0.2 10.2 98.2%1.8%$287 $702 $294
9 Los Angeles Basin 7.1 1.0 8.1 87.1%12.9%$304 $475 $326
10 Kansas City 7.7 0.2 7.9 96.9%3.1%$404 $517 $407
11 Salt Lake City 7.0 0.9 7.9 89.1%10.9%$335 $502 $353
12 Houston 6.9 0.7 7.6 91.3%8.7%$449 $586 $461
13 Portland, OR 6.4 0.9 7.3 87.6%12.4%$275 $377 $287
14 Sacramento 5.8 0.7 6.5 90.0%10.0%$321 $481 $337
15 Orlando/Sanford 5.7 0.0 5.7 99.5%0.5%$428 $805 $430
16 Fairbanks 4.0 1.7 5.7 69.7%30.3%$137 $251 $172
17 South Florida 5.5 0.1 5.7 97.4%2.6%$542 $566 $543
18 Indianapolis 5.5 0.1 5.6 98.4%1.6%$465 $523 $466
19 Tulsa 4.9 0.1 5.0 98.1%1.9%$450 $462 $451
20 Honolulu 4.5 0.3 4.8 93.5%6.5%$313 $545 $329
21 Philadelphia/Trenton 4.6 4.6 99.3%$465 $467
22 Boise 3.9 0.4 4.3 90.3%9.7%$283 $459 $300
23 San Antonio 4.0 0.2 4.2 95.8%4.2%$461 $389 $458
24 Charlotte/Concord 3.7 3.7 100.0%$478 $478
25 Spokane 3.1 0.4 3.5 88.6%11.4%$317 $571 $346
26 Memphis 3.4 0.0 3.5 99.1%0.9%$443 $467 $443
27 New York/Newark 3.3 0.2 3.4 95.1%4.9%$447 $732 $460
28 Fargo 3.2 0.1 3.3 97.3%2.7%$405 $564 $409
29 San Francisco Bay Area 2.6 0.6 3.3 80.7%19.3%$299 $520 $341
30 Rapid City 3.2 3.2 100.0%$442 $442
31 Des Moines 3.1 0.1 3.1 98.1%1.9%$380 $619 $385
32 St. Louis/Belleville 3.0 0.1 3.1 96.1%3.9%$424 $448 $425
33 Omaha 3.0 0.1 3.1 97.1%2.9%$400 $483 $403
34 Boston 2.9 0.1 2.9 97.9%2.1%$464 $655 $468
35 Pittsburgh 2.9 0.0 2.9 99.0%1.0%$445 $354 $444
36 Washington/Baltimore 2.7 0.2 2.9 94.8%5.2%$472 $409 $469
37 Ft. Myers/Punta Gorda 2.7 0.1 2.8 97.2%2.8%$455 $522 $457
38 Bangkok 2.7 2.7 100.0%$810 $810
39 Spingfield, MO 2.6 0.0 2.6 98.9%1.1%$476 $704 $479
40 Sioux Falls 2.6 2.6 100.0%$411 $411
41 Richmond 2.6 2.6 100.0%$459 $459
42 Manila 2.4 2.4 100.0%$866 $866
43 Reno 2.4 2.4 100.0%$347 $347
44 Cleveland 2.3 2.3 100.0%$438 $438
45 Little Rock 2.2 0.1 2.3 97.1%2.9%$458 $572 $461
46 Chattanooga 2.2 2.2 100.0%$511 $511
47 Tampa/St. Petersburg 2.0 0.1 2.1 95.8%4.2%$460 $610 $466
48 Aguascalientes 2.1 2.1 100.0%$522 $522
49 Buffalo 2.1 0.0 2.1 98.8%1.2%$410 $749 $415
50 Billings 2.0 2.1 98.5%$407 $407
Markets 1-50 317.3 25.1 1.1 343.6 92.4%7.3%0.3%$350 $279 $76 $344
Other Markets 97.1 7.2 0.0 104.2 93.2%6.9%0.0%$537 $531 $537
All Markets 414.4 32.3 1.1 447.8 92.5%7.2%0.2%$394 $335 $76 $389
Domestic and International Market Size Rankings by Airport (Markets 1-50)
Passengers per Day Each Way Airport Share One-Way Fare
Page 13
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Kenai Regional Airport
Leakage and Retention Study
Year-End Second Quarter 2023
Metro Area Airport ANC ENA Total ANC ENA ANC ENA Total
Chicago ORD 17.0 0.2 17.2 99.0%1.0%$312 $300 $312
17.0 0.2 17.2 99.0%1.0%$312 $300 $312
Dallas/Ft. Worth DAL 1.6 0.1 1.7 96.5%3.5%$377 $309 $375
DFW 12.6 0.3 12.9 97.5%2.5%$432 $477 $433
14.2 0.4 14.6 97.4%2.6%$426 $450 $427
Phoenix/Mesa PHX 10.0 0.2 10.2 98.2%1.8%$287 $702 $294
10.0 0.2 10.2 98.2%1.8%$287 $702 $294
Los Angeles Basin BUR 0.3 0.1 0.3 82.0%18.0%$314 $287 $310
LAX 5.5 0.4 5.9 93.5%6.5%$301 $502 $314
ONT 0.6 0.3 0.9 63.0%37.0%$317 $475 $375
SNA 0.7 0.3 1.0 72.4%27.6%$314 $479 $360
7.1 1.0 8.1 87.1%12.9%$304 $475 $326
Houston HOU 0.0 0.0 100.0%$606 $606
IAH 6.9 0.6 7.6 91.6%8.4%$449 $585 $460
6.9 0.7 7.6 91.3%8.7%$449 $586 $461
South Florida FLL 0.5 0.0 0.5 94.1%5.9%$554 $478 $550
MIA 2.7 0.1 2.8 95.7%4.3%$563 $587 $564
PBI 2.4 2.4 100.0%$516 $516
5.5 0.1 5.7 97.4%2.6%$542 $566 $543
New York/Newark EWR 2.4 0.1 2.6 94.6%5.4%$454 $730 $468
LGA 0.1 0.1 100.0%$290 $290
JFK 0.8 0.0 0.8 96.4%3.6%$436 $743 $447
3.3 0.2 3.4 95.1%4.9%$447 $732 $460
San Francisco Bay Area OAK 0.1 0.1 100.0%$511 $511
SFO 2.1 0.3 2.4 88.6%11.4%$304 $499 $326
SJC 0.5 0.2 0.7 71.7%28.3%$278 $551 $356
2.6 0.6 3.3 80.7%19.3%$299 $520 $341
St. Louis/Belleville STL 3.0 0.1 3.1 96.1%3.9%$424 $448 $425
3.0 0.1 3.1 96.1%3.9%$424 $448 $425
Washington/Baltimore BWI 1.0 1.0 100.0%$471 $471
DCA 0.8 0.0 0.9 96.5%3.5%$455 $495 $457
IAD 0.9 0.1 1.1 88.6%11.4%$488 $387 $476
2.7 0.2 2.9 94.8%5.2%$472 $409 $469
Ft. Myers/Punta Gorda RSW 2.7 0.1 2.8 97.2%2.8%$455 $522 $457
2.7 0.1 2.8 97.2%2.8%$455 $522 $457
London LHR 1.4 1.4 100.0%$956 $956
1.4 1.4 100.0%$956 $956
Norfolk/Newport News ORF 1.0 1.0 100.0%$482 $482
1.0 1.0 100.0%$482 $482
Columbus, OH CMH 0.9 0.9 100.0%$414 $414
0.9 0.9 100.0%$414 $414
South Texas BRO 0.7 0.0 0.7 96.6%3.4%$486 $840 $499
0.7 0.0 0.7 96.6%3.4%$486 $840 $499
Paris CDG 0.6 0.6 100.0%$816 $816
0.6 0.6 100.0%$816 $816
Metro Area Multiple Airport Detail
Passengers per Day Each Way Airport Share One-Way Fare
Page 14
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Kenai Regional Airport
Leak Leakage and Retention Study
Year-End Second Quarter 2023
Rank Metro Area ANC ENA HOM ANC ENA HOM ANC ENA HOM
1 Seattle/Everett 32.0 0.8 33.3 2.6 49.0%22.4%
2 Minneapolis/St. Paul 8.2 0.1 13.2 0.2 38.5%39.0%
3 Denver 8.9 0.0 12.1 0.2 42.4%15.3%
4 Chicago 7.2 0.0 9.8 0.2 42.3%0.0%
5 Dallas/Ft. Worth 6.0 0.1 8.2 0.3 42.0%26.7%
6 Las Vegas 8.4 0.2 3.6 0.3 70.1%43.4%
7 Anchorage 5.4 0.5 5.0 0.5 52.0%51.2%
8 Phoenix/Mesa 5.6 0.1 4.4 0.1 56.1%33.3%
9 Los Angeles Basin 3.7 0.4 3.4 0.7 51.9%37.1%
10 Kansas City 3.1 0.1 4.5 0.2 41.0%26.5%
11 Salt Lake City 2.7 0.1 4.3 0.7 39.0%15.8%
12 Houston 2.8 0.2 4.2 0.5 39.8%31.6%
13 Portland, OR 2.9 0.1 3.5 0.8 45.1%12.7%
14 Sacramento 2.6 0.1 3.2 0.6 44.8%9.2%
15 Orlando/Sanford 3.5 0.0 2.2 0.0 60.8%0.0%
16 Fairbanks 2.0 0.9 2.0 0.8 49.6%51.3%
17 South Florida 3.1 0.1 2.4 0.0 56.1%79.6%
18 Indianapolis 2.2 0.0 3.3 0.1 40.4%0.0%
19 Tulsa 2.0 0.0 2.9 0.1 40.3%0.0%
20 Honolulu 3.1 0.0 1.4 0.3 69.7%0.0%
21 Philadelphia/Trenton 1.9 2.7 40.7%
22 Boise 1.6 0.0 2.4 0.4 39.9%0.0%
23 San Antonio 2.1 0.1 2.0 0.1 51.6%34.4%
24 Charlotte/Concord 1.3 2.4 35.2%
25 Spokane 1.4 0.0 1.6 0.4 46.7%8.0%
26 Memphis 1.3 0.0 2.1 0.0 38.0%100.0%
27 New York/Newark 1.4 0.0 1.9 0.2 41.8%0.0%
28 Fargo 1.2 0.1 2.0 0.0 36.6%100.0%
29 San Francisco Bay Area 1.0 0.1 1.6 0.6 39.7%9.3%
30 Rapid City 1.0 2.1 32.8%
31 Des Moines 1.0 0.0 2.0 0.0 33.9%50.0%
32 St. Louis/Belleville 1.3 0.0 1.6 0.1 44.2%25.0%
33 Omaha 1.2 0.0 1.8 0.1 39.7%31.3%
34 Boston 1.3 0.0 1.5 0.1 46.8%0.0%
35 Pittsburgh 1.2 0.0 1.7 0.0 42.0%100.0%
36 Washington/Baltimore 1.2 0.1 1.5 0.1 44.7%60.0%
37 Ft. Myers/Punta Gorda 1.3 0.0 1.4 0.1 49.1%0.0%
38 Spingfield, MO 1.2 0.0 1.4 0.0 45.1%0.0%
39 Sioux Falls 0.9 1.7 34.8%
40 Richmond 0.9 1.6 36.2%
41 Reno 1.2 1.2 50.0%
42 Cleveland 0.9 1.4 40.1%
43 Little Rock 0.9 0.1 1.3 0.0 41.7%100.0%
44 Chattanooga 0.7 1.5 29.7%
45 Tampa/St. Petersburg 1.0 0.0 1.0 0.1 51.2%0.0%
46 Buffalo 0.8 0.0 1.3 0.0 38.2%0.0%
47 Billings 0.9 0.0 1.1 0.0 44.8%0.0%
48 Maui 1.7 0.0 0.3 0.0 85.7%100.0%
49 Atlanta 0.7 1.0 39.8%
50 Grand Junction 0.7 0.0 1.0 0.1 38.5%34.4%
Markets 1-50 145.2 9.3 0.5 170.2 16.0 0.5 46.0%36.8%51.2%
All Markets 185.6 15.9 0.5 197.4 16.2 0.6 48.5%49.6%46.8%
Domestic Resident and Visitor Point of Origin PDEW and Percentage by Airport (Markets 1-50)
Resident Point of Origin PDEW Visitor Point of Origin PDEW Resident Point of Origin %
Page 15
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Kenai Regional Airport
Leakage and Retention Study
Year-End Second Quarter 2023
Rank Metro Area ANC ENA HOM ANC ENA HOM ANC ENA HOM
51 Gulfport 0.8 0.0 1.0 0.0 45.0%0.0%
52 Wichita 0.8 1.0 44.9%
53 Burlington 0.6 0.0 1.1 0.1 35.4%0.0%
54 Jacksonville 0.7 1.0 40.2%
55 New Orleans 0.8 0.0 0.7 0.1 53.0%20.0%
56 San Juan 1.0 0.5 65.5%
57 Tri-Cities 0.5 1.1 33.0%
58 Appleton 0.4 1.2 24.9%
59 Detroit 0.5 0.1 0.8 0.2 40.0%24.2%
60 Birmingham 0.5 0.0 0.9 0.1 35.7%0.0%
61 Nashville 0.7 0.0 0.7 0.1 47.5%25.0%
62 Duluth 0.4 0.0 1.1 0.0 26.9%100.0%
63 San Diego 0.7 0.0 0.6 0.2 53.1%0.0%
64 Homer 0.7 0.0 0.7 0.0 48.5%54.2%
65 Northwest Arkansas 0.5 0.0 0.7 0.0 41.4%0.0%
66 Knoxville 0.5 0.8 40.0%
67 Kodiak 0.5 0.1 0.5 0.1 49.6%40.5%
68 Louisville 0.5 0.0 0.7 0.0 43.3%0.0%
69 Grand Rapids 0.4 0.8 32.3%
70 Harrisburg 0.4 0.8 32.7%
71 Greenville/Spartanburg 0.4 0.7 36.0%
72 Albuquerque 0.5 0.6 48.0%
73 Juneau 0.3 0.2 0.3 0.3 48.8%33.4%
74 Raleigh/Durham 0.4 0.0 0.5 0.1 41.9%0.0%
75 Kona 0.8 0.0 0.2 0.0 83.4%0.0%
76 Gainesville 0.3 0.7 27.0%
77 Green Bay 0.3 0.7 27.3%
78 Norfolk/Newport News 0.4 0.6 41.4%
79 Lansing 0.1 0.8 14.0%
80 Bethel 0.3 0.0 0.5 0.2 34.4%0.0%
81 Augusta 0.3 0.7 28.6%
82 Columbus, OH 0.4 0.5 43.0%
83 Portland, ME 0.3 0.0 0.5 0.0 36.7%0.0%
84 Charleston, SC 0.4 0.1 0.4 0.0 50.7%100.0%
85 Corpus Christi 0.4 0.4 46.6%
86 Hartford 0.3 0.6 32.2%
87 Austin 0.3 0.2 0.3 0.1 44.1%62.7%
88 King Salmon 0.4 0.0 0.3 0.1 60.4%24.4%
89 Bozeman 0.3 0.1 0.3 0.1 43.0%32.4%
90 Madison 0.3 0.5 34.0%
91 Traverse City 0.3 0.5 36.3%
92 Minot 0.1 0.0 0.4 0.2 25.8%13.9%
93 South Texas 0.3 0.0 0.4 0.0 42.9%0.0%
94 Tallahassee 0.3 0.4 36.8%
95 Rochester 0.3 0.4 37.8%
96 Wrangell 0.3 0.4 38.3%
97 Marquette 0.4 0.3 57.5%
98 Albany 0.3 0.0 0.4 0.1 42.7%0.0%
99 Fresno 0.3 0.1 0.3 0.0 46.2%100.0%
100 Evansville 0.3 0.4 40.2%
Markets 51-100 21.3 0.9 0.0 30.5 2.3 0.0 41.2%27.8%
All Markets 185.6 15.9 0.5 197.4 16.2 0.6 48.5%49.6%46.8%
Domestic Resident and Visitor Point of Origin PDEW and Percentage by Airport (Markets 51-100)
Resident Point of Origin PDEW Visitor Point of Origin PDEW Resident Point of Origin %
Page 16
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Kenai Regional Airport
Leakage and Retention Study
Year-End Second Quarter 2023
Rank Metro Area ANC ENA Total ANC ENA ANC ENA Total
1 Bangkok 2.7 2.7 100.0%$810 $810
2 Manila 2.4 2.4 100.0%$866 $866
3 Aguascalientes 2.1 2.1 100.0%$522 $522
4 Frankfurt 1.8 1.8 100.0%$683 $683
5 Cebu 1.7 1.7 100.0%$850 $850
6 Dublin 1.6 1.6 100.0%$943 $943
7 London 1.4 1.4 100.0%$956 $956
8 Ho Chi Minh City 1.2 1.2 100.0%$811 $811
9 Cancun 1.0 1.0 100.0%$386 $386
10 Windhoek 0.9 0.9 100.0%$1,222 $1,222
11 Stavanger 0.8 0.8 100.0%$2,535 $2,535
12 Tel Aviv 0.8 0.8 100.0%$1,085 $1,085
13 Dubai 0.7 0.7 100.0%$1,546 $1,546
14 Toronto 0.7 0.7 100.0%$409 $409
15 Vancouver 0.7 0.7 100.0%$296 $296
16 Johannesburg 0.7 0.7 100.0%$1,142 $1,142
17 Dhaka 0.6 0.6 100.0%$837 $837
18 Paris 0.6 0.6 100.0%$816 $816
19 Roatan 0.5 0.5 100.0%$907 $907
20 Copenhagen 0.5 0.5 100.0%$448 $448
21 Mexico City 0.5 0.5 100.0%$514 $514
22 Prague 0.5 0.5 100.0%$775 $775
23 Oaxaca 0.4 0.4 100.0%$454 $454
24 Brisbane 0.4 0.4 100.0%$2,092 $2,092
25 Zacatecas 0.4 0.4 100.0%$603 $603
26 Stockholm 0.4 0.4 100.0%$908 $908
27 Rome 0.3 0.3 100.0%$722 $722
28 Reykjavík 0.3 0.3 100.0%$1,046 $1,046
29 Puerto Vallarta 0.3 0.3 100.0%$378 $378
30 Liberia 0.3 0.3 100.0%$464 $464
31 Edmonton 0.2 0.1 0.3 78.4%21.6%$421 $962 $538
32 Managua 0.3 0.3 100.0%$529 $529
33 Naples 0.2 0.2 100.0%$728 $728
34 0 0.2 0.2 100.0%$949 $949
35 Capetown 0.2 0.2 100.0%$1,206 $1,206
36 Milan 0.2 0.2 100.0%$1,615 $1,615
37 Buenos Aires 0.2 0.2 100.0%$1,187 $1,187
38 Bogata 0.2 0.2 100.0%$376 $376
39 Osaka 0.2 0.2 100.0%$924 $924
40 Lima 0.2 0.2 100.0%$580 $580
41 Santa Cruz 0.2 0.2 100.0%$828 $828
42 San Jose 0.2 0.2 100.0%$379 $379
43 Lisbon 0.2 0.2 100.0%$1,022 $1,022
44 Phnom Penh 0.2 0.2 100.0%$777 $777
45 San Salvadore 0.2 0.2 100.0%$394 $394
46 Athens 0.1 0.1 100.0%$1,030 $1,030
47 Los Cabos 0.1 0.1 100.0%$348 $348
48 Calgary 0.1 0.1 100.0%$825 $825
49 Luzon Island 0.1 0.1 100.0%$872 $872
50 Vilnius 0.1 0.1 100.0%$643 $815
50 Largest Markets 30.9 0.2 31.1 99.4%0.6%$853 $867 $853
Other Markets 0.5 0.0 0.5 94.3%5.7%$1,379 $797 $1,306
All Markets 31.4 0.2 31.7 99.3%0.7%$861 $858 $861
International Market Size Rankings by Airport
Passengers per Day Each Way Market Share One-Way Fare
Page 17
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Kenai Regional Airport
Leakage and Retention Study
Year-End Second Quarter 2023
Rank Metro Area DL AA BR UA LH VS Total DL AA BR UA LH VS Total
1 Bangkok 1.3 0.3 0.3 2.7 $846 $801 $890 $810
2 Manila 0.9 0.8 2.4 $903 $843 $866
3 Aguascalientes 1.4 0.7 2.1 $566 $434 $522
4 Frankfurt 1.0 1.8 $518 $683
5 Cebu 1.0 1.7 $824 $850
6 Dublin 1.1 0.5 1.6 $1,097 $559 $943
7 London 1.4 1.4 $956 $956
8 Ho Chi Minh City 1.2 1.2 $811 $811
9 Cancun 0.4 0.6 1.0 $400 $376 $386
10 Windhoek 0.6 0.9 $1,196 $1,222
11 Stavanger 0.8 $2,535
12 Tel Aviv 0.5 0.8 $1,065 $1,085
13 Dubai 0.7 $1,546
14 Toronto 0.5 0.7 $389 $409
15 Vancouver 0.2 0.7 $231 $296
16 Johannesburg 0.7 0.7 $1,142 $1,142
17 Dhaka 0.6 $837
18 Paris 0.6 0.6 $816 $816
19 Roatan 0.5 0.5 $907 $907
20 Copenhagen 0.3 0.5 $303 $448
21 Mexico City 0.2 0.2 0.5 $584 $445 $514
22 Prague 0.5 0.5 $775 $775
23 Oaxaca 0.4 0.4 $454 $454
24 Brisbane 0.4 $2,092
25 Zacatecas 0.4 $603
26 Stockholm 0.4 0.4 $908 $908
27 Rome 0.3 $722
28 Reykjavík 0.3 $1,046
29 Puerto Vallarta 0.1 0.3 $438 $378
30 Liberia 0.3 0.3 $464 $464
31 Edmonton 0.3 $538
32 Managua 0.3 0.3 $529 $529
33 Naples 0.2 $728
34 0 0.2 $949
35 Capetown 0.2 0.2 $1,206 $1,206
36 Milan 0.2 0.2 $1,615 $1,615
37 Buenos Aires 0.2 0.2 $1,187 $1,187
38 Bogata 0.2 $376
39 Osaka 0.2 $924
40 Lima 0.2 0.2 $580 $580
41 Santa Cruz 0.2 $828
42 San Jose 0.2 0.2 $379 $379
43 Lisbon 0.2 0.2 $1,022 $1,022
44 Phnom Penh 0.2 0.2 $777 $777
45 San Salvadore 0.2 0.2 $394 $394
46 Athens 0.1 0.1 $1,030 $1,030
47 Los Cabos 0.1 0.1 $348 $348
48 Calgary 0.1 $825
49 Luzon Island 0.1 0.1 $872 $872
50 Vilnius 0.1 0.1 $643 $815
50 Largest Markets 7.2 3.9 3.4 2.9 2.5 1.4 31.1 $841 $541 $819 $775 $739 $956 $336
Other Markets 0.0 0.1 0.0 0.0 0.1 0.0 0.5 $1,146 $1,411 $432
All Markets 7.2 4.0 3.4 2.9 2.7 1.4 31.7 $841 $560 $819 $775 $771 $956 $861
International Market Size Rankings by Airline
Passengers per Day Each Way One-Way Fare
Page 18
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Kenai Regional Airport
Leakage and Retention Study
Year-End Second Quarter 2023
Rank Code Airline ANC ENA HOM Total Share ANC ENA HOM ANC ENA HOM Total
1 DL Delta 133.0 133.0 29.7%100.0%$369 $369
2 AS Alaska 128.1 128.1 28.6%100.0%$307 $307
3 UA United 63.7 63.7 14.2%100.0%$447 $447
4 AA American 60.9 60.9 13.6%100.0%$455 $455
5 7H Ravn Alaska 2.7 27.6 1.1 31.3 7.0%8.5%88.1%3.4%$92 $385 $76 $349
6 SY Sun Country 8.9 8.9 2.0%100.0%$247 $247
7 GV Grant Aviation 4.2 4.2 0.9%100.0%$44 $44
8 BR Eva 3.4 3.4 0.8%100.0%$819 $819
9 LH Lufthansa 2.7 2.7 0.6%100.0%$771 $771
10 VS Virgin Atlantic 1.4 1.4 0.3%100.0%$956 $956
11 DE Condor 1.3 1.3 0.3%100.0%$826 $826
12 PR Phillipine 1.0 1.0 0.2%100.0%$1,029 $1,029
13 KL KLM 0.8 0.8 0.2%100.0%$2,535 $2,535
14 JL Japan Air Lines 0.8 0.8 0.2%100.0%$865 $865
15 EK Emirites 0.7 0.7 0.2%100.0%$1,546 $1,546
15 Largest Airlines 409.4 31.8 1.1 442.4 98.8%92.6%7.2%0.2%$389 $340 $76 $384
All Other Airlines 4.9 0.5 0.0 5.4 1.2%90.9%9.1%0.0%$817 $45 $747
All Airlines 414.4 32.3 1.1 447.8 100.0%92.5%7.2%0.2%$394 $335 $76 $389
Domestic + International Airline Rankings by Airport
Passengers per Day Each Way Airport Share Average One-Way Fare
0.7
0.8
0.8
1.0
1.3
1.4
2.7
3.4
4.2
8.9
31.3
60.9
63.7
128.1
133.0
0.2%
0.2%
0.2%
0.2%
0.3%
0.3%
0.6%
0.8%
0.9%
2.0%
7.0%
13.6%
14.2%
28.6%
29.7%
0 20 40 60 80 100 120 140 160
Emirites
Japan Air Lines
KLM
Phillipine
Condor
Virgin Atlantic
Lufthansa
Eva
Grant Aviation
Sun Country
Ravn Alaska
American
United
Alaska
Delta
Passengers per Day Each Way
Market Share
Page 19
Page 47
Kenai Regional Airport
Leakage and Retention Study
Year-End Second Quarter 2023
Rank Code Airline ANC ENA HOM Total ANC ENA HOM ANC ENA HOM 0
1 AS Alaska 127.2 127.2 100.0%$306 $306
2 DL Delta 125.8 125.8 100.0%$342 $342
3 UA United 60.8 60.8 100.0%$431 $431
4 AA American 56.8 56.8 100.0%$447 $447
5 7H Ravn Alaska 2.7 27.4 1.1 31.1 8.5%88.0%3.4%$92 $381 $76 $346
6 SY Sun Country 8.9 8.9 100.0%$247 $247
7 GV Grant Aviation 4.2 4.2 100.0%$44 $44
8 VC Via Air 0.6 0.6 100.0%$125 $125
9 JRQ Kenai Aviation 0.5 0.5 100.0%$45 $45
10
11
12
13
14
15
15 Largest Airlines 382.9 32.1 1.1 416.1 92.0%7.7%0.3%$356 $332 $76 $353
All Other Airlines
All Airlines 382.9 32.1 1.1 416.1 92.0%7.7%0.3%$356 $331 $76 $353
Domestic Airline Rankings by Airport
Passengers per Day Each Way Airport Share One-Way Fare
0.5
0.6
4.2
8.9
31.1
56.8
60.8
125.8
127.2
0.1%
0.2%
1.0%
2.2%
7.5%
13.7%
14.6%
30.2%
30.6%
0 20 40 60 80 100 120 140
Kenai Aviation
Via Air
Grant Aviation
Sun Country
Ravn Alaska
American
United
Delta
Alaska
Passengers per Day Each Way
Market Share
Page 20
Page 48
Kenai Regional Airport
Leakage and Retention Study
Year-End Second Quarter 2023
Rank Code Airline ANC ENA Total ANC ENA ANC ENA Total
1 DL Delta 7.2 7.2 100.0%$841 $841
2 AA American 4.0 4.0 100.0%$560 $560
3 BR Eva 3.4 3.4 100.0%$819 $819
4 UA United 2.9 2.9 100.0%$775 $775
5 LH Lufthansa 2.7 2.7 100.0%$771 $771
6 VS Virgin Atlantic 1.4 1.4 100.0%$956 $956
7 DE Condor 1.3 1.3 100.0%$826 $826
8 PR Phillipine 1.0 1.0 100.0%$1,029 $1,029
9 AS Alaska 0.8 0.8 100.0%$409 $409
10 KL KLM 0.8 0.8 100.0%$2,535 $2,535
11 JL Japan Air Lines 0.8 0.8 100.0%$865 $865
12 EK Emirites 0.7 0.7 100.0%$1,546 $1,546
13 KE Korean 0.6 0.6 100.0%$774 $774
14 SQ Singapore 0.6 0.6 100.0%$837 $837
15 QF Qantas 0.4 0.4 100.0%$2,092 $2,092
15 Largest Airlines 28.9 0.0 28.9 100.0%0.0%$868 $868
All Other Airlines 2.6 0.2 2.8 91.8%8.2%$782 $858 $788
All Airlines 31.4 0.2 31.7 99.3%0.7%$861 $858 $861
International Airline Rankings by Airport
Passengers per Day Each Way Airport Share One-Way Fare
0.4
0.6
0.6
0.7
0.8
0.8
0.8
1.0
1.3
1.4
2.7
2.9
3.4
4.0
7.2
1.4%
2.0%
2.0%
2.3%
2.6%
2.6%
2.7%
3.0%
4.2%
4.4%
8.4%
9.3%
10.8%
12.7%
22.9%
0 1 2 3 4 5 6 7 8
Qantas
Singapore
Korean
Emirites
Japan Air Lines
KLM
Alaska
KLM
Condor
Virgin Atlantic
Lufthansa
United
Eva
American
Delta
Passengers per Day Each Way
Market Share
Page 21
Page 49
Kenai Regional Airport
Leakage and Retention Study
Year-End Second Quarter 2023
Distribution of Traffic among Airlines - Anchorage International Airport
133.0 128.1
63.7 60.9
8.9 3.4 2.7 2.7 10.9
Delta Alaska United American Sun
Country
Eva Lufthansa Ravn
Alaska
Others
0
20
40
60
80
100
120
140
Pa
s
s
e
n
g
e
r
s
p
e
r
D
a
y
E
a
c
h
W
a
y
(
P
D
E
W
)
32.1%
30.9%
15.4%
14.7%
2.2%
0.8%0.6%0.6%2.6%
Delta
Alaska
United
American
Sun Country
Eva
Lufthansa
Ravn Alaska
Others
Page 22
Page 50
Kenai Regional Airport
Leakage and Retention Study
Year-End Second Quarter 2023
15 Largest O&D Markets and Average Fares - Anchorage International Airport
4,025
4,145
4,261
4,649
5,054
5,139
5,152
5,586
7,307
8,714
10,381
12,405
15,304
15,646
47,655
5.5
5.7
5.8
6.4
6.9
7.0
7.1
7.7
10.0
11.9
14.2
17.0
21.0
21.4
65.3
0 10,000 20,000 30,000 40,000 50,000 60,000
Indianapolis
Orlando/Sanford
Sacramento
Portland, OR
Houston
Salt Lake City
Los Angeles Basin
Kansas City
Phoenix/Mesa
Las Vegas
Dallas/Ft. Worth
Chicago
Denver
Minneapolis/St. Paul
Seattle/Everett
Annual O&D
PDEW
$465
$428
$321
$275
$449
$335
$304
$404
$287
$247
$426
$312
$346
$301
$232
$0 $100 $200 $300 $400 $500
Indianapolis
Orlando/Sanford
Sacramento
Portland, OR
Houston
Salt Lake City
Los Angeles Basin
Kansas City
Phoenix/Mesa
Las Vegas
Dallas/Ft. Worth
Chicago
Denver
Minneapolis/St. Paul
Seattle/Everett
One-Way Fare
Page 23
Page 51
Leakage and Retention Study
Year-End Second Quarter 2023
c
Airlines operated 42 nonstop routes from Anchorage in YE 3Q 2023
Nonstop Routes Flown - Anchorage International Airport
Page 24
Page 52
Kenai Regional Airport
Leakage and Retention Study
Year-End Second Quarter 2023
Rank Metro Area PDEW Fare PDEW Fare PDEW Fare PDEW Fare PDEW Fare PDEW Fare
1 Seattle/Everett 32.5 $223 32.8 $241 65.3 $232
2 Minneapolis/St. Paul 8.2 $389 4.1 $283 1.4 $208 7.8 $235 21.4 $301
3 Denver 5.2 $282 3.7 $333 12.0 $378 0.0 $271 21.0 $346
4 Chicago 0.6 $305 13.6 $300 2.8 $369 17.0 $312
5 Dallas/Ft. Worth 1.6 $366 3.8 $377 0.9 $382 7.8 $467 0.0 $305 14.2 $426
6 Las Vegas 7.5 $224 3.7 $289 0.6 $208 0.2 $454 0.0 $303 11.9 $247
7 Phoenix/Mesa 5.4 $283 4.7 $291 10.0 $287
8 Kansas City 2.9 $416 1.0 $369 1.9 $439 1.9 $366 7.7 $404
9 Los Angeles Basin 3.8 $293 3.0 $314 0.3 $340 0.0 $294 7.1 $304
10 Salt Lake City 4.7 $352 1.0 $302 1.3 $303 7.0 $335
11 Houston 1.3 $398 1.0 $409 2.6 $531 2.0 $392 0.0 $312 6.9 $449
12 Portland, OR 1.7 $259 4.3 $276 0.3 $348 6.4 $275
13 Sacramento 2.3 $290 1.8 $321 1.8 $360 5.8 $321
14 Orlando/Sanford 2.4 $451 1.7 $392 1.3 $441 0.2 $417 0.1 $311 5.7 $428
15 Indianapolis 1.0 $495 2.6 $400 1.9 $537 0.0 $240 5.5 $465
16 South Florida 0.5 $554 0.7 $407 1.0 $611 3.4 $547 5.5 $542
17 Tulsa 0.3 $388 1.9 $461 2.6 $450 4.9 $450
18 Philadelphia/Trenton 1.0 $465 1.6 $446 1.9 $486 0.1 $371 4.6 $465
19 Honolulu 4.5 $313 4.5 $313
20 San Antonio 0.3 $441 0.5 $384 2.3 $475 1.0 $471 4.0 $461
21 Fairbanks 4.0 $137 4.0 $137
22 Boise 3.6 $279 0.3 $327 3.9 $283
23 Charlotte/Concord 2.2 $458 0.4 $469 1.1 $526 0.0 $356 3.7 $478
24 Memphis 0.7 $546 1.7 $394 1.0 $456 3.4 $443
25 New York/Newark 0.3 $477 2.3 $415 0.7 $549 0.1 $290 3.3 $447
26 Fargo 2.5 $405 0.7 $404 3.2 $405
27 Rapid City 2.4 $442 0.4 $460 0.4 $428 3.2 $442
28 Des Moines 0.4 $440 0.4 $429 2.3 $362 3.1 $380
29 Spokane 1.1 $290 2.0 $332 3.1 $317
30 Omaha 0.3 $397 2.6 $401 0.0 $287 3.0 $400
31 St. Louis/Belleville 2.1 $429 0.6 $396 0.3 $441 3.0 $424
32 Pittsburgh 0.3 $500 1.2 $430 1.2 $458 0.1 $260 2.9 $445
33 Boston 1.7 $462 0.6 $435 0.6 $519 0.1 $316 2.9 $464
34 Washington/Baltimore 1.2 $488 0.8 $456 0.7 $479 0.1 $333 2.7 $472
35 Ft. Myers/Punta Gorda 0.8 $533 1.6 $410 0.3 $478 0.0 $570 2.7 $455
36 Bangkok 1.3 $846 0.3 $890 2.7 $810
37 San Francisco Bay Area 0.3 $253 2.4 $304 2.6 $299
38 Sioux Falls 1.5 $425 0.4 $410 0.8 $383 2.6 $411
39 Spingfield, MO 0.3 $473 2.3 $477 2.6 $476
40 Richmond 1.1 $477 1.4 $452 0.1 $299 2.6 $459
41 Manila 0.9 $903 2.4 $866
42 Reno 1.6 $299 0.5 $352 0.3 $627 2.4 $347
43 Cleveland 1.6 $461 0.3 $391 0.3 $367 2.3 $438
44 Chattanooga 0.9 $529 1.3 $499 2.2 $511
45 Little Rock 0.6 $401 1.6 $480 2.2 $458
46 Aguascalientes 0.7 $434 1.4 $566 2.1 $522
47 Buffalo 0.3 $501 0.3 $464 1.4 $377 0.0 $288 2.1 $410
48 Billings 2.0 $407 2.0 $407
49 Tampa/St. Petersburg 0.3 $487 1.8 $456 2.0 $460
50 Maui 2.0 $306 2.0 $306
Markets 1-50 109.6 $327 110.7 $299 49.8 $426 38.1 $456 8.6 $242 319.3 $350
Other Markets 23.4 $564 17.4 $360 13.9 $521 22.8 $452 0.4 $350 95.1 $542
All Markets 133.0 $369 128.1 $307 63.7 $447 60.9 $455 8.9 $247 414.4 $394
All Carriers
Market Size Rankings and Airline Detail (Mkts 1-50) - Anchorage International Airport
Delta Alaska United American Sun Country
Page 25
Page 53
Kenai Regional Airport
Leakage and Retention Study
Year-End Second Quarter 2023
Rank Metro Area PDEW Fare PDEW Fare PDEW Fare PDEW Fare PDEW Fare PDEW Fare
51 Frankfurt 1.8 $683
52 Wichita 0.9 $429 0.9 $385 1.7 $407
53 Gulfport 0.6 $558 1.2 $327 1.7 $404
54 Cebu 1.7 $850
55 Grand Junction 1.0 $382 0.7 $411 1.7 $393
56 Burlington 0.7 $505 0.7 $504 0.2 $368 1.7 $490
57 Atlanta 1.6 $361 1.6 $361
58 Jacksonville 0.3 $388 1.3 $434 0.0 $513 1.6 $426
59 San Juan 0.6 $684 1.0 $585 1.6 $622
60 Tri-Cities 0.8 $574 0.8 $430 1.6 $502
61 Dublin 1.1 $1,097 1.6 $943
62 Appleton 1.0 $488 0.5 $371 1.6 $449
63 New Orleans 0.5 $489 0.7 $428 0.2 $511 0.0 $376 1.5 $462
64 Birmingham 1.5 $444 1.5 $444
65 Duluth 1.5 $410 1.5 $410
66 London 1.4 $956
67 Nashville 0.5 $430 0.8 $447 0.0 $320 1.4 $440
68 Homer 1.3 $76
69 Detroit 0.7 $482 0.3 $377 0.3 $406 0.0 $311 1.3 $436
70 Knoxville 0.3 $418 1.0 $406 1.3 $409
71 Northwest Arkansas 0.3 $334 0.9 $393 1.3 $378
72 San Diego 0.7 $286 0.5 $341 1.2 $308
73 Louisville 0.6 $468 0.6 $419 0.0 $264 1.2 $441
74 Grand Rapids 0.4 $481 0.4 $364 0.4 $441 1.2 $428
75 Harrisburg 1.2 $524 1.2 $524
76 Ho Chi Minh City 1.2 $811
77 Greenville/Spartanburg 0.4 $435 0.7 $427 1.1 $430
78 Albuquerque 0.5 $424 0.5 $459 1.1 $442
79 Kodiak 1.1 $173 1.1 $173
80 Cancun 0.4 $400 0.6 $376 1.0 $386
81 Gainesville 1.0 $606 1.0 $606
82 Green Bay 1.0 $489 1.0 $489
83 Norfolk/Newport News 0.3 $516 0.6 $465 1.0 $482
84 Kona 0.3 $331 0.6 $297 0.9 $308
85 Raleigh/Durham 0.3 $425 0.6 $414 0.0 $340 0.9 $417
86 Lansing 0.9 $569 0.9 $569
87 Augusta 0.9 $439 0.9 $439
88 Columbus, OH 0.6 $396 0.3 $450 0.9 $414
89 Windhoek 0.9 $1,222
90 Corpus Christi 0.3 $344 0.6 $427 0.8 $399
91 Hartford 0.8 $576 0.0 $391 0.8 $570
92 Portland, ME 0.7 $523 0.1 $330 0.8 $498
93 Stavanger 0.8 $2,535
94 Tel Aviv 0.5 $1,065 0.8 $1,085
95 Charleston, SC 0.3 $389 0.5 $443 0.0 $304 0.8 $423
96 Madison 0.4 $359 0.4 $368 0.8 $364
97 Bethel 0.8 $170 0.8 $170
98 Dubai 0.7 $1,546
99 Traverse City 0.4 $406 0.4 $444 0.0 $203 0.7 $421
100 Toronto 0.5 $389 0.2 $447 0.7 $409
Markets 51-100 15.8 $525 10.0 $345 8.6 $487 14.3 $432 0.4 $351 59.6 $539
Other Markets 7.7 $642 7.4 $379 5.3 $575 8.5 $485 0.0 $315 35.5 $548
All Markets 133.0 $369 128.1 $307 63.7 $447 60.9 $455 8.9 $247 414.4 $394
All Carriers
Market Size Rankings and Airline Detail (Mkts 51-100) - Anchorage International Airport
Delta Alaska United American Sun Country
Page 26
Page 54
Kenai Regional Airport
Leakage and Retention Study
Year-End Second Quarter 2023
Distribution of Traffic among Airlines - Kenai Municipal Airport
27.6
4.2 0.5 0.0
Ravn Alaska Grant Aviation Kenai Aviation Ravn Connect
0
5
10
15
20
25
30
Pa
s
s
e
n
g
e
r
s
p
e
r
D
a
y
E
a
c
h
W
a
y
(
P
D
E
W
)
85.4%
13.0%
1.4%0.1%
Ravn Alaska
Grant Aviation
Kenai Aviation
Ravn Connect
Page 27
Page 55
Kenai Regional Airport
Leakage and Retention Study
Year-End Second Quarter 2023
15 Largest O&D Markets and Average Fares - Kenai Municipal Airport
267
277
289
307
380
383
460
476
484
626
661
765
1,252
2,474
7,574
0.4
0.4
0.4
0.4
0.5
0.5
0.6
0.7
0.7
0.9
0.9
1.0
1.7
3.4
10.4
0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000
Minneapolis/St. Paul
Dallas/Ft. Worth
Spokane
Boise
Las Vegas
Juneau
San Francisco Bay Area
Sacramento
Houston
Salt Lake City
Portland, OR
Los Angeles Basin
Fairbanks
Seattle/Everett
Anchorage
Annual O&D
PDEW
$363
$450
$571
$459
$513
$339
$520
$481
$586
$502
$377
$475
$251
$399
$44
$0 $100 $200 $300 $400 $500 $600 $700
Minneapolis/St. Paul
Dallas/Ft. Worth
Spokane
Boise
Las Vegas
Juneau
San Francisco Bay Area
Sacramento
Houston
Salt Lake City
Portland, OR
Los Angeles Basin
Fairbanks
Seattle/Everett
Anchorage
One-Way Fare
Page 28
Page 56
Kenai Regional Airport
Leakage and Retention Study
Year-End Second Quarter 2023
Airlines operated nonstop service from Kenai to Anchorage in YE 3Q 2023
Nonstop Routes Flown - Kenai Municipal Airport
Page 29
Page 57
Kenai Regional Airport
Leakage and Retention Study
Year-End Second Quarter 2023
Rank Metro Area PDEW Fare PDEW Fare PDEW Fare PDEW Fare PDEW Fare PDEW Fare
1 Anchorage 5.7 $44 4.2 $44 0.4 $44 0.0 $44 10.4 $44
2 Seattle/Everett 3.4 $399 3.4 $399
3 Fairbanks 1.7 $251 1.7 $251
4 Los Angeles Basin 1.0 $475 1.0 $475
5 Portland, OR 0.9 $377 0.9 $377
6 Salt Lake City 0.9 $502 0.9 $502
7 Houston 0.7 $586 0.7 $586
8 Sacramento 0.7 $481 0.7 $481
9 San Francisco Bay Area 0.6 $520 0.6 $520
10 Juneau 0.5 $339 0.5 $339
11 Las Vegas 0.5 $513 0.5 $513
12 Boise 0.4 $459 0.4 $459
13 Spokane 0.4 $571 0.4 $571
14 Dallas/Ft. Worth 0.4 $450 0.4 $450
15 Minneapolis/St. Paul 0.4 $363 0.4 $363
16 Deadhorse 0.3 $471 0.3 $471
17 Pasco 0.3 $472 0.3 $472
18 Honolulu 0.3 $545 0.3 $545
19 Medford 0.3 $514 0.3 $514
20 Denver 0.3 $466 0.3 $466
21 Atlanta 0.3 $520 0.3 $520
22 Detroit 0.2 $530 0.2 $530
23 Kansas City 0.2 $517 0.2 $517
24 Austin 0.2 $550 0.2 $550
25 Eugene 0.2 $645 0.2 $645
26 San Diego 0.2 $648 0.2 $648
27 Kodiak 0.2 $351 0.2 $351
28 Minot 0.2 $472 0.2 $472
29 Bozeman 0.2 $461 0.2 $461
30 Missoula 0.2 $435 0.2 $435
31 King Salmon 0.2 $367 0.2 $367
32 Phoenix/Mesa 0.2 $702 0.2 $702
33 San Antonio 0.2 $389 0.2 $389
34 Bethel 0.2 $280 0.2 $280
35 New York/Newark 0.2 $732 0.2 $732
36 Chicago 0.2 $300 0.2 $300
37 Ketchikan 0.2 $418 0.2 $418
38 Washington/Baltimore 0.2 $409 0.2 $409
39 New Orleans 0.2 $650 0.2 $650
40 Redmond 0.2 $566 0.2 $566
41 South Florida 0.1 $566 0.1 $566
42 Calgary 0.1 $825 0.1 $825
43 San Luis Obispo 0.1 $494 0.1 $494
44 St. Louis/Belleville 0.1 $448 0.1 $448
45 Nashville 0.1 $467 0.1 $467
46 Palm Springs 0.1 $573 0.1 $573
47 Tulsa 0.1 $462 0.1 $462
48 Tampa/St. Petersburg 0.1 $610 0.1 $610
49 Indianapolis 0.1 $523 0.1 $523
50 Fresno 0.1 $538 0.1 $538
50 Largest Markets 24.9 $358 4.2 $44 0.4 $44 0.0 $44 29.5 $309
Other Markets 2.8 $621 0.0 $119 0.0 $48 2.8 $613
All Markets 27.6 $385 4.2 $44 0.5 $45 0.0 $44 32.3 $335
All Carriers
Market Size Rankings and Airline Detail - Kenai Municipal Airport
Ravn Alaska Grant Aviation Kenai Aviation Ravn Connect
Page 30
Page 58
Kenai Regional Airport
Leakage and Retention Study
Year-End Second Quarter 2023
Distribution of Traffic among Airlines - Homer Airport
100.0%
Ravn Alaska
1.1
Ravn Alaska
0
0
0
1
1
1
1
Pa
s
s
e
n
g
e
r
s
p
e
r
D
a
y
E
a
c
h
W
a
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(
P
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Page 31
Page 59
Kenai Regional Airport
Leakage and Retention Study
Year-End Second Quarter 2023
15 Largest O&D Markets and Average Fares - Homer Airport
781 1.1
781 781 781 781 781 782 782 782 782 782
Anchorage
Annual O&D
PDEW
$76
$0 $10 $20 $30 $40 $50 $60 $70 $80
Anchorage
One-Way Fare
Page 32
Page 60
Kenai Regional Airport
Leakage and Retention Study
Year-End Second Quarter 2023
Nonstop Routes Flown - Homer Airport
Airlines operated nonstop service from Homer to Anchorage in YE 3Q 2023
Page 33
Page 61
Kenai Regional Airport
Leakage and Retention Study
Year-End Second Quarter 2023
Rank Metro Area PDEW Fare PDEW Fare PDEW Fare PDEW Fare PDEW Fare PDEW Fare
1 Anchorage 1.1 $76 1.1 $76
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
50 Largest Markets 1.1 $76 1.1 $76
Other Markets
All Markets 1.1 $76 1.1 $76
Market Size Rankings and Airline Detail - Homer Airport
Ravn Alaska All Carriers
Page 34
Page 62
Volaire Aviation 8500 East 116th Street Suite 728 Fishers, Indiana 46038
Page 63
Sponsored by: Administration
New Text Underlined; [DELETED TEXT BRACKETED]
CITY OF KENAI
ORDINANCE NO. 3421-2024
AN ORDINANCE INCREASING ESTIMATED REVENUES AND APPROPRIATION IN THE KENAI CITY
AIRPORT SNOW REMOVAL EQUIPMENT, VISITOR CENTER, AND PUBLIC SAFETY CAPITAL
PROJECT FUNDS TO TRANSFER RESIDUAL BALANCE FROM COMPLETED PROJECTS BACK TO
THEIR ORIGINAL FUNDING SOURCES.
WHEREAS, $336.64 remains in Airport Snow Removal Equipment Capital Project Funds from completed
capital projects for a snow removal attachment and gate installation; and,
WHEREAS, transfer of the residual $336.64 to the Airport Fund, the fund from which the funds originated
will allow future appropriation of the funds for operations or future capital projects and is in the best
interest of the city; and,
WHEREAS, $1,191.66 remains in Visitor Center Capital Project Funds from completed capital project for
roof replacement at the Visitor Center; and,
WHEREAS, transfer of the residual $1,191.66 to the General Fund, the fund from which the funds
originated will allow future appropriation of the funds for operations or future capital projects and is in the
best interest of the city; and,
WHEREAS, $11,966.90 remains in Visitor Center Capital Project Funds from completed capital project
for the HVAC Control upgrade at the Visitor Center; and,
WHEREAS, transfer of the residual $11,966.90 to the General Fund, the fund from which the funds
originated will allow future appropriation of the funds for operations or future capital projects and is in the
best interest of the city; and,
WHEREAS, $2,843.10 remains in Public Safety Capital Project Funds from completed capital project for
flooring replacement at the Fire Department; and,
WHEREAS, transfer of the residual $2,843.10 to the General Fund, the fund from which the funds
originated will allow future appropriation of the funds for operations or future capital projects and is in the
best interest of the city; and,
WHEREAS, $9,367.71 remains in Public Safety Capital Project Funds from completed capital project for
the apparatus bay painting at the Fire Department; and,
WHEREAS, transfer of the residual $9,367.71 to the General Fund, the fund from which the funds
originated will allow future appropriation of the funds for operations or future capital projects and is in the
best interest of the city.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, AS
FOLLOWS:
Section 1. That the estimated revenues and appropriations be increased as follows:
Airport Improvement Capital Project Fund:
Page 64
Ordinance No. 3421-2024
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New Text Underlined; [DELETED TEXT BRACKETED]
Increase Estimated Revenues-
Appropriation of Fund Balance $336.64
Increase Appropriations –
Transfer to Airport Fund $336.64
Section 2. That the estimated revenues and appropriations be increased as follows:
Visitor Center Improvement Capital Project Fund:
Increase Estimated Revenues –
Appropriation of Fund Balance $13,158.56
Increase Appropriations –
Transfer to General Fund
$13,158.56
Section 3. That the estimated revenues and appropriations be increased as follows:
Public Safety Capital Project Fund:
Increase Estimated Revenues –
Appropriation of Fund Balance $12,210.81
Increase Appropriations –
Transfer to General Fund $12,210.81
Section 4. Severability: That if any part or provision of this ordinance or application thereof to any
person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall
be confined in its operation to the part, provision, or application directly involved in all controversy in
which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder
of this title or application thereof to other persons or circumstances. The City Council hereby declares
that it would have enacted the remainder of this ordinance even without such part, provision, or
application.
Section 5. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect
immediately upon enactment.
ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 19TH DAY OF JUNE, 2024.
___________________________________
Brian Gabriel Sr., Mayor
ATTEST:
___________________________________
Michelle M. Saner, MMC, City Clerk
Approved by Finance: _________________
Introduced: June 5, 2024
Enacted: June 19, 2024
Effective: June 19, 2024
Page 65
MEMORANDUM
TO: Mayor Gabriel and Council Members
THROUGH: Terry Eubank, City Manager
FROM: Dave Swarner, Finance Officer
DATE: May 25, 2024
SUBJECT: Ordinance 3421-2024 Residual Capital Project Balance Transfer
The purpose of this memo it to recommend the enactment of Ordinance 3421-2024 that will
transfer remaining balances from completed projects back to their original funding source. These
transfers will allow the residual funds to be appropriated for operations or new capital projects in
the future.
In total $25,369.37 will be returned to the General Fund from these completed capital projects:
1. Public Safety Capital Project – Apparatus bay painting at the Fire Department, $9,367.71
2. Public Safety Capital Project – Flooring replacement at the Fire Department, $2,843.10
3. Visitor Center Capital Project – HVAC control upgrade, $11,966.90
4. Visitor Center Capital Project – Roof replacement, $1,191.66
$336.64 will be returned to the Airport Fund from this completed project:
1. Airport Snow Removal Equipment Capital Project – Snow removal attachment and gate
installation, $336.64
With the enactment of Ordinance 3421-2024, these funds will be returned to their original funding
source, where they will reside in fund balance until the passage of future ordinances appropriating
the funds for operations or other capital projects. No authorization to spend is created by this
appropriation, rather only the authority to transfer between funds is being provided.
Your support for the enactment of Ordinance 3421-2024 is respectfully requested.
Page 66
Sponsored by: Administration
New Text Underlined; [DELETED TEXT BRACKETED]
CITY OF KENAI
ORDINANCE NO. 3422-2024
AN ORDINANCE INCREASING ESTIMATED REVENUES AND APPROPRIATIONS IN THE GENERAL
FUND AND PUBLIC SAFETY CAPITAL PROJECT FUND FOR COST IN EXCESS OF PROJECTED
BUDGETED AMOUNTS FOR FIRE DEPARTMENT FLOORING REPLACEMENT PHASE 2.
WHEREAS, the FY24 budget was approved with a $100,000 Capital project for Fire Department Flooring
Replacement Phase 2; and,
WHEREAS, it was estimated that $4,488 would come from a residual balance from a prior capital project;
and,
WHEREAS, the residual balance did not materialize; and,
WHEREAS, the $4,488 is needed to fully fund the Capital project for the Fire Department Flooring
Replacement Phase 2; and,
WHEREAS, this remains a priority project for the Department and provides appropriate maintenance in
the continued protection of a City asset.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, AS
FOLLOWS:
Section 1. That the estimated revenues and appropriations be increased as follows:
General Fund:
Increase Estimated Revenues –
Appropriation of Fund Balance $4,488
Increase in Appropriations –
Transfer to Public Safety Capital Project Fund $4,488
Public Safety Capital Project Fund:
Increase Estimated Revenues –
Transfer from General Fund $4,488
Increase in Appropriations –
Fire Department Flooring Replacement Phase 2 $4,488
Section 2. Severability: That if any part or provision of this ordinance or application thereof to any
person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall
be confined in its operation to the part, provision, or application directly involved in all controversy in
which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder
of this title or application thereof to other persons or circumstances. The City Council hereby declares
that it would have enacted the remainder of this ordinance even without such part, provision, or
application.
Page 67
Ordinance No. 3422-2024
Page 2 of 2
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Section 3. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect
immediately upon enactment.
ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 19TH DAY OF JUNE, 2024.
___________________________________
Brian Gabriel Sr., Mayor
ATTEST:
___________________________________
Michelle M. Saner, MMC, City Clerk
Approved by Finance: _________________
Introduced: June 5, 2024
Enacted: June 19, 2024
Effective: June 19, 2024
Page 68
MEMORANDUM
TO: Mayor Gabriel and Council Members
THROUGH: Terry Eubank, City Manager
FROM: Dave Swarner, Finance Director
DATE: May 25, 2024
SUBJECT: Ordinance 3422-2024 for Kenai Fire Department Flooring Replacement
Phase 2
The purpose of this Ordinance is to provide supplemental funding in support of the Kenai Fire
Departments Flooring Replacement Phase 2, approved and as detailed on page 299 of the FY24
budget. It was projected that $4,488 of the funds would come from residual funding from prior
projects. Thus only $95,512 was budgeted in the FY24 budget for transfer from the General Fund,
as detailed on page 298 of the FY24 budget. The residual funds did not materialize as expected.
The additional $4,488 requested is intended to bring the total capital amount of the Fire
Department Flooring Replacement Phase 2 up to the projected project cost of $100,000.
The Fire Department, Public Works Department and Administration are in support of the project.
Council’s approval is respectfully requested.
Page 69
Sponsored by: Administration
New Text Underlined; [DELETED TEXT BRACKETED]
CITY OF KENAI
ORDINANCE NO. 3423-2024
AN ORDINANCE INCREASING ESTIMATED REVENUES AND APPROPRIATIONS IN THE
PERSONAL USE FISHERY FUND FOR THE BUDGETED ANNUAL TRANSFER FROM PERSONAL
USE FISHERY FUND TO THE GENERAL FUND.
WHEREAS, the FY24 General Fund annual budget included a $75,000 transfer from the Personal Use
Fishery Fund, but the companion transfer from the Personal Use Fishery Fund was inadvertently omitted
from the FY24 budget; and,
WHEREAS, the Personal Use Fishery Fund requires an additional appropriation of $75,000 to complete
the FY24 intended transfer and correct the omission.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, AS
FOLLOWS:
Section 1. That the estimated revenues and appropriations be increased as follows:
Personal Use Fishery Fund:
Increase Estimated Revenues –
Appropriation of Fund Balance $75,000
Increase in Appropriations –
Transfer to General Fund $75,000
Section 2. Severability: That if any part or provision of this ordinance or application thereof to any
person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall
be confined in its operation to the part, provision, or application directly involved in all controversy in
which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder
of this title or application thereof to other persons or circumstances. The City Council hereby declares
that it would have enacted the remainder of this ordinance even without such part, provision, or
application.
Section 3. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect
immediately upon enactment.
ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 19TH DAY OF JUNE, 2024.
___________________________________
Brian Gabriel Sr., Mayor
ATTEST:
___________________________________
Michelle M. Saner, MMC, City Clerk
Page 70
Ordinance No. 3423-2024
Page 2 of 2
New Text Underlined; [DELETED TEXT BRACKETED]
Approved by Finance: _________________
Introduced: June 5, 2024
Enacted: June 19, 2024
Effective: June 19, 2024
Page 71
MEMORANDUM
TO: Mayor Gabriel and Council Members
THROUGH: Terry Eubank, City Manager
FROM: Dave Swarner, Finance Director
DATE: May 25, 2024
SUBJECT: Ordinance 3423-2024 for PU Fishery transfer from PU Fishery Fund
Balance
The purpose of this Ordinance is to authorize funding for the annual transfer from the Personal
Use Fishery Fund to the General Fund to cover Non-Departmental expenses. In the FY24 budget,
$75,000 was allocated for this transfer into the General Fund. However, the Transfer Out from
the Personal Use Fishery Fund was inadvertently omitted from the FY24 budget.
The requested $75,000 will be allocated to the Personal Use Fishery budget to facilitate the
transfer. Completing this transfer will ensure that the City’s budgeted revenues cover Non-
Departmental expenses for FY24.
Council’s approval is respectfully requested.
Page 72
Sponsored by: Administration
New Text Underlined; [DELETED TEXT BRACKETED]
CITY OF KENAI
ORDINANCE NO. 3424-2024
AN ORDINANCE INCREASING FY2025 ESTIMATED REVENUES AND APPROPRIATIONS IN THE
GENERAL FUND AND AUTHORIZING RENEWAL OF THE CITY’S PROPERTY, LIABILITY,
WORKERS’ COMPENSATION, AIRPORT AND OTHER ANCILLARY POLICIES WITH THE ALASKA
MUNICIPAL LEAGUE JOINT INSURANCE ASSOCIATION FOR JULY 1, 2024 THROUGH JUNE 30,
2025.
WHEREAS, with the assistance of its broker, the City solicited quotes for General Liability & Automobile,
Property & Mobile Equipment, Airport Liability, and Workers’ Compensation from the two public entity
risk pools operating in Alaska; and,
WHEREAS, Alaska Municipal League Joint Insurance Association (AMLJIA) provided the lowest total
quote of $929,159 for General Liability & Automobile, Property & Mobile Equipment, Airport Liability,
Workers’ Compensation and other ancillary policies; and,
WHEREAS, the City has been a member of Alaska Municipal League Joint Insurance Association
(AMLJIA) since July 1, 2020 receiving competitive rates and quality insurance coverage for the City; and,
WHEREAS, the FY2025 renewal is higher than projected and in excess of what was included in the
adopted FY2025 Budget requiring supplemental funding; and,
WHEREAS, in order to bind coverage effective July 1, 2024 a double reading of this Ordinance is being
requested; and,
WHEREAS, pursuant to KMC 1.15.70(d) the City may introduce and finally pass on the same day, an
ordinance making, repealing, transferring or otherwise changing an appropriation; and,
WHEREAS, maintaining quality and sufficient amounts of insurance coverage is in the best interest of
the City and its residents.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, AS
FOLLOWS:
Section 1. That estimated revenues and appropriations are increased as follows:
General Fund:
Increase estimated revenues –
Appropriation of Fund Balance $24,631
Increase expenditures – Non-Departmental
Insurance $24,631
Section 2. That the City Manager is authorized to renew the City’s insurance coverage for FY2025
with AMLJIA for an estimated annual premium of $929,159.
Section 3. Severability: That if any part or provision of this ordinance or application thereof to any
person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall
be confined in its operation to the part, provision, or application directly involved in all controversy in
Page 73
Ordinance No. 3424-2024
Page 2 of 2
New Text Underlined; [DELETED TEXT BRACKETED]
which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder
of this title or application thereof to other persons or circumstances. The City Council hereby declares
that it would have enacted the remainder of this ordinance even without such part, provision, or
application.
Section 4. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect
immediately upon enactment.
ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 19TH DAY OF JUNE, 2024.
___________________________________
Brian Gabriel Sr., Mayor
ATTEST:
___________________________________
Michelle M. Saner, MMC, City Clerk
Approved by Finance: _________________
Introduced: June 19, 2024
Enacted: June 19, 2024
Effective: June 19, 2024
Page 74
MEMORANDUM
TO: Mayor Gabriel and Council Members
THROUGH: Terry Eubank, City Manager
FROM: David Swarner, Finance Director
DATE: June 12, 2024
SUBJECT: Ordinance 3424-2024 - Increasing Fy2025 Estimated Revenues and
Appropriations in the General Fund and Authorizing Renewal of the
City’s Property, Liability, Workers’ Compensation, Airport and Other
Ancillary Policies With the Alaska Municipal League Joint Insurance
Association for July 1, 2024 Through June 30, 2025.
Each year the City goes through a process of renewing its property, liability, workers’
compensation, airport, and other ancillary insurance coverages. As part of the renewal process,
the City obtained a quote, through its insurance broker, from Alaska Municipal League Joint
Insurance Association (AMLJIA). Alaska Public Entity Insurance (APEI) was unable to quote
when requested.
The quote from AMLJIA was for a total of $929,159. The Finance Department, with the assistance
of the City’s broker, determined that the rates and the insurance offered by AMLJIA for FY25 are
in the best interest of the City and recommend renewing coverage with AMLJIA. In addition,
AMLJIA has provided the City’s insurance coverage since July 1, 2020 and has provided
satisfactory coverage.
A double reading at the June 19, 2024 City Council Meeting is being requested to provides
supplemental funding in FY2025 as the amount estimated in the adopted FY2025 Budget is
insufficient in the City’s General Fund to bind coverage. Additional funding in the amount of
$24,631 is needed at this time.
Thank you for your consideration.
Page 75
Sponsored by: Administration
New Text Underlined; [DELETED TEXT BRACKETED]
CITY OF KENAI
RESOLUTION NO. 2024-25
A RESOLUTION AUTHORIZING THE USE OF THE FLEET REPLACEMENT FUND FOR THE
PURCHASE OF EQUIPMENT TO UPFIT THREE NEW POLICE VEHICLES.
WHEREAS, Resolution 2024-01 and Resolution 2024-11 authorized the purchase of three new vehicles
to replace existing police vehicles and those vehicles are expected to arrive in the coming months and
will require police equipment to be installed; and,
WHEREAS, upfitting the police vehicles requires a number of vendors for things such as push bumpers,
light bars, siren controllers, consoles, gun locks, partitions, transport seats, window barriers, decals,
winter tires and rims, and other accessories; and,
WHEREAS, the police department has worked closely with the City shop, where the vehicle equipment
will be installed, to determine the cost utilizing a number of vendors and it is anticipated that $40,000
should be adequate to complete the upfitting of the three police vehicles; and,
WHEREAS, the purchases were planned in the Fleet Replacement Fund where sufficient funding is
available.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA:
Section 1. That the City Manager is authorized to use the Fleet Replacement Fund to upfit these
three vehicles at an estimated cost of $40,000.
Section 2. That this Resolution takes effect immediately upon passage.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 19TH DAY OF JUNE, 2024.
___________________________________
Brian Gabriel Sr., Mayor
ATTEST:
___________________________________
Michelle M. Saner, MMC, City Clerk
Approved by Finance: _________________
Page 76
MEMORANDUM
TO: Mayor Gabriel and Council Members
THROUGH: Terry Eubank, City Manager
FROM: Dave Ross, Police Chief
DATE: May 30, 2024
SUBJECT: Resolution 2024-25 – Authorizing the Use of the Fleet Replacement
Fund for the Purchase of Equipment to Upfit Three New Police Vehicles
Resolution 2024-01 previously authorized the purchase of two Ford Responders (Trucks) and
Resolution 2024-11 previously authorized the purchase of one Ford Interceptor (SUV) to replace
existing police vehicles. This resolution would authorize the use of the Fleet Replacement Fund
for the equipment necessary to upfit those three vehicles into police vehicles. The purchase of
the equipment will come from various vendors.
Needed equipment and services for upfitting those vehicles includes but is not limited to: push
bumpers, light bars, siren controllers, consoles, gun locks, partitions, transport seats, window
barriers, decals and the installation of decals, winter tires and rims, etc.
The total anticipated cost to upfit the three vehicles is anticipated to be less than $40,000 and this
resolution would authorize the use of the Fleet Replacement Fund up to that amount.
Thank you for your consideration.
Page 77
Sponsored by: Administration
New Text Underlined; [DELETED TEXT BRACKETED]
CITY OF KENAI
RESOLUTION NO. 2024-26
A RESOLUTION APPROVING A TWELVE-MONTH EXTENSION OF TIME FOR GOOD CAUSE FOR
THE COMPLETION OF PERMANENT IMPROVEMENTS FOR A LEASE BETWEEN THE CITY OF
KENAI AND STATE OF ALASKA, DIVISION OF FORESTRY FOR AIRPORT RESERVE LANDS
DESCRIBED AS LOT 4A, FBO SUBDIVISION NO.11, PLAT NO. 2021-44.
WHEREAS, Resolution No. 2022-10 approved a lease between the City of Kenai and the State of Alaska,
Division of Forestry, for Lot 4A, FBO Subdivision No.11; and,
WHEREAS, the lease requires space lessee to construct electrical service improvements and a concrete
containment barrier by June 30,2024 with an aggregate cost of at least $10,000; and,
WHEREAS, the lessee has requested a one-year extension to complete the improvements due to
challenges related to designing and scheduling the work during the summer construction season without
disruptions to fire related activities; and,
WHEREAS, KMC 21.10.080(g)(5) allows the Council to extend the time for completion of permanent
improvements required in a lease for up to twelve months for good cause; and,
WHEREAS, the Airport Commission at its regularly scheduled meeting of June 13, 2024 recommended
City Council approval; and,
WHEREAS, the coordination with Homer Electric and construction of a barrier system during fire season
in Alaska constitute good cause justifying a twelve-month lease extension.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA:
Section 1. That the City Council agrees to amend the Lease with the State of Alaska, Division of
Forestry for Lot 4A, FBO Subdivision No. 11, Plat 2021-44 to extend the date that improvements are
required to be completed to June 30, 2025 for good cause as described above. The Council further
authorizes the City Manager to execute a lease amendment with the State of Alaska, Division of Forestry
to effectuate the extension.
Section 2. That this Resolution takes effect immediately upon passage.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 19TH DAY OF JUNE, 2024.
___________________________________
Brian Gabriel Sr., Mayor
ATTEST:
___________________________________
Michelle M. Saner, MMC, City Clerk
Page 78
MEMORANDUM
TO: Mayor Gabriel and Council Members
THROUGH: Terry Eubank, City Manager
FROM: Derek Ables, Airport Manager
DATE: June 9, 2024
SUBJECT: Resolution No. 2024-26 – Granting a 1-year extension to the State of
Alaska, Department of Natural Resources, Division of Forestry and Fire
Protection for Land Lease Improvements.
Administration has had conversations with the Division of Forestry regarding options moving
forward to complete the intended improvement on the subject lease lot on the airport reserve
consisting of a containment barrier and electrical work. Due to the short summer construction
season and scheduling the disruptions outside of fire season the physical construction has not
begun. As you can see from the letter from the attached letter from the Division of Forestry, they
have requested a one-year extension to complete their improvements and plan to complete them
in 2024. Administration is supportive of a one-year extension as allowed in code pursuant to KMC
21.10.080 (g)(5).
Thank you for your consideration.
Attachment- Request Letter.
Page 79
Department of Natural Resources
DIVISION OF FORESTY & FIRE PROTECTION
550 West 7th Avenue, Suite 1450
Anchorage, AK 99501-3561
Main: 907.269-8431
Fax: 907-269-8918
June 5, 2024
FROM: Michael Burkhead, State of Alaska, Division of Forestry & Fire Protection, Procurement
Specialist 3.
TO: Derek Ables, City of Kenai (COK), Airport Manager
SUBJECT: Request for extension of deadline for improvements.
The Alaska State, Division of Forestry & Fire Protection (DOF) is requesting a one-year
extension to the deadline for completion of improvements as per Article XIV (B) (1) of COK-
DOF lease for Lot 4A, FBO Subdivision No.11, Plat No. 2021-44. This request, if granted,
would extend the deadline for completion of improvements from June 30, 2024, to June 30,
2025.
DOF intends to complete the following permanent improvements to the DOF Air Tanker Reload
Base.
• Upgrading the electric power supply to the lot. This entails bringing 3-phase high voltage
power from the utility onto the lease lot and adding a transformer and new meter base.
Work to be performed by Homer Electric.
• Constructing a concrete containment system to prevent spills (Hazardous materials to
include, but not limited to; oil, fuels, and retardant) from leaking into the ground. Work
to be performed by DOF tanker base staff.
The total amount for this work is estimated to be $60,000.00 for the electrical work and
$10,000.00 for the barrier construction. DOF intends to complete all work in calendar year 2024.
This schedule is contingent on Homer Electric availability and the timing and severity of the
2024 fire season. All work will be completed prior to June 30, 2025.
Cc: Jason Jordet, State of Alaska, Division of Forestry & Fire Protection, Fixed-Wing Manager
Page 80
Sponsored by: Administration
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CITY OF KENAI
RESOLUTION NO. 2024-27
A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO AN ATM CONCESSION
AGREEMENT FOR THE KENAI MUNICIPAL AIRPORT.
WHEREAS, on May 8, 2024, the City requested bids to place an ATM in the Airport Terminal for an initial
period of one year beginning on July 1, 2024 through June 30, 2025; with an option of four successive
one-year terms by mutual written consent of the Owner and Concessionaire; and,
WHEREAS, one responsive bid was received on May 30, 2024, and evaluated on percentage of gross
sales; and,
WHEREAS, Tyler Distributing submitted a responsible bid for an ATM concession at the Kenai Municipal
Airport with the highest percentage of gross sales of 15%; and,
WHEREAS, City Administration has determined that this proposal meets all requirements; and,
WHEREAS, the Airport Commission at its regularly scheduled meeting of June 13, 2024 recommended
City Council approval.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA:
Section 1. That the City Manager is authorized to enter into an ATM concession agreement with Tyler
Distributing for the Kenai Municipal Airport for the period July 1, 2024 through June 30, 2025.
Section 2. That this Resolution takes effect immediately upon passage.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 19TH DAY OF JUNE, 2024.
___________________________________
Brian Gabriel Sr., Mayor
ATTEST:
___________________________________
Michelle M. Saner, MMC, City Clerk
Page 81
MEMORANDUM
TO: Mayor Gabriel and Council Members
THROUGH: Terry Eubank, City Manager
FROM: Derek Ables, Airport Manager
DATE: June 9, 2024
SUBJECT: Resolution No. 2024-27 - Authorizing the City Manager to Enter Into an
ATM Concession Agreement for the Kenai Municipal Airport
On May 8th ,2024, the airport released an Invitation to Bid for an ATM in the Kenai Municipal
Airport Terminal building. The goal of the bid is to provide a service to the traveling public. On
May 30th, one responsive bid was received from Tyler Distributing who bid 15% of gross sales.
The concession agreement will be effective July 1,2024 through June 30, 2025 with four one-year
renewals by mutual agreement between the City and Tyler Distributing.
Your support for an ATM Concession with Tyler Distributing is respectfully requested.
Attachments- Agreement
Page 82
ATM Concession 6/14/2024
-1-
CITY OF KENAI
KENAI MUNICIPAL AIRPORT
AUTOMATIC TELLER MACHINE
CONCESSION AGREEMENT
THIS AGREEMENT is made this day of , between the City
of Kenai, (City) whose address is 210 Fidalgo, Kenai, AK 99611, and ,
(Concessionaire) whose address is .
In consideration of the rights and obligations under this agreement, the parties
agree as follows:
INTRODUCTION
A. The City owns and operates the Kenai Municipal Airport, located in Kenai,
Alaska.
B. In connection with the Kenai Municipal Airport, the City owns the terminal
buildings and adjacent areas.
C. The Concessionaire desires to operate an Automatic Teller Machine (ATM)
concession business in the terminal.
ARTICLE I
DEFINITIONS
The following definitions apply for this agreement:
A. Agreement: This Concession Agreement, together with the exhibits and all future
amendments or supplements executed by the parties to this agreement.
B. Airport: The real property and facilities of the Kenai Municipal Airport, Kenai,
Alaska, as they exist on the execution date of this agreement, together with any future
changes. Exhibit "A," sheet 1 of 1, shows the Terminal facility.
C. Gross Receipts: The total amount of money or the value of other consideration
received from performing the services provided by the Concessionaire.
D. Premises: The location approved by the City for the placement of ATM is shown
on Exhibit A.
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ARTICLE II
TERM
A. The term of this Agreement is 1-year, beginning on July 1, 2024, and ending
on June 30, 2025.
B. Extension. This agreement may be extended for four successive one-year
terms by mutual written consent of Concessionaire and City.
C. If the Concessionaire holds over and remains in possess of the Premises after
this Agreement expires, the holding over will not operate as an extension of the term of
this Agreement, but only creates a day-to-day tenancy, regardless of any concession
payments accepted by the City. The Concessionaire’s obligation for performance under
this Agreement will continue during the holdover tenancy. Either party may terminate
the holdover at any time by giving the other party at least 24 hours prior written notice.
When this Agreement terminates, if the Concessionaire holds over, the Concessionaire
will pay the then-current ATM rate.
ARTICLE III
PREMISES
A. The City provides to the Concessionaire and the Concessionaire accepts from
the City, the following described property, (Premises), within the City’s Airport Terminal,
located at the Kenai Municipal Airport:
Approximately 10 square feet of designated space in the Terminal against the
wall.
B. The Concessionaire accepts the Premises in an as-is condition. The City makes
no specific warranties, expressed or implied, concerning the Premises' title, access,
condition, or suitability for any use, including those uses authorized by this Agreement.
The Concessionaire accepts the Premises subject to any covenant, term, or condition
affecting the City’s title to the Premises.
ARTICLE IV
RIGHTS GRANTED
Subject to the obligations under this agreement, the City grants the Concessionaire the
authority to exercise the following:
A. Non-Exclusive Rights
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ATM Concession 6/14/2024
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1. The non-exclusive right and obligation to operate ATM machines in the
terminal. The ATM machine will be free standing.
2. The non-exclusive right to occupy the premises for the purposes
authorized under this agreement.
B. General Rights
1. The right to ingress, egress, and occupy the premises by the
Concessionaire, its officers, contractors, suppliers, service personnel, guests, patrons,
and invitees, subject to the security rules of the airport.
C. Reservations and Prohibitions
1. The City reserves the right to require the Concessionaire to add, delete, or
relocate any ATM to best serve the interest of the public or the City.
2. The City reserves the right to grant others any right or privilege specifically
granted the Concessionaire. The rights and privileges granted the Concessionaire
under this agreement is the only rights and privileges granted the Concessionaire. The
Concessionaire has no easements, rights, or privileges, express or implied, other than
those specifically granted under this agreement.
3. The Concessionaire will not sell any service or product unless described in
this agreement without the advance written approval of the City. If a question or dispute
arises concerning the sale of any service or product, the Concessionaire may submit a
written request to the City asking for a review and decision. The City will deliver a
written decision to the Concessionaire and the decision of the City is final.
ARTICLE V
FEES AND PAYMENTS
A. Concession Fee: For the rights and privileges granted under this agreement, the
Concessionaire will pay the City the following Concession Fee:
Concessionaire agrees to pay 15 % of Gross Receipts to the City on a
quarterly basis for the privilege of conducting the business authorized herein, plus any
applicable tax.
B. Payments to the City:
1. Concessionaire shall provide a Certified Gross Receipts Report for each
month of the preceding quarter for audit purposes. Concessionaire will pay the
percentage payment within 10 days following each quarter of service. Such payment
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will be made for the previous calendar quarter by October 10th, January 10th, April 10th,
and July 10th of each calendar year.
The Concessionaire will make payments payable to the City of Kenai, 210 Fidalgo
Avenue, Kenai, Alaska, 99611, in United States of America currency either by check,
cash, bank draft, or money order. The Concessionaire will submit payments free from
any claim, demand, setoff, or counterclaim of any kind against the City.
On or before the 10th day, beginning October 2024, the City must receive a Certified
Activity Report. The form shall reflect the Concessionaire’s total gross receipts and the
total fees due the City for the previous calendar month for each ATM machine. If any
such certified statements are found to be incorrect statements of gross receipts for the
month involved, any additional amount determined to be due the City shall be
immediately paid to the City by the Concessionaire and any amount of overpayment by
the Concessionaire shall be credited against the next monthly payment due to the City
under this agreement.
Fees are due on or before the 10th for the preceding quarter and delinquent after the
due date. Time is of the essence in meeting these requirements and the City will
impose interest at the rate of eight percent (8%) per annum and ten percent (10%)
penalties of any amount of money owed under this agreement which is not paid on or
before the date it becomes due.
B. Fees Vest in the City: On completion of each ATM transaction authorized under
this agreement, whether for cash or credit, the fees due the City immediately vest in and
become the property of the City. The Concessionaire is responsible for these fees until
delivered to the City.
D. Unpaid Fees: Any rent, charge, fee, or other consideration due but unpaid at the
expiration, voluntary or involuntary termination, or cancellation of this agreement is a
charge against the Concessionaire and its real or personal property. The City has any
lien rights allowed by law. Either the City or its authorized agent may provide
enforcement.
ARTICLE VI
OPERATION OF CONCESSION SERVICES
The Concessionaire's operation under this agreement is a service to the general public,
airline passengers, and other users of the airport. The Concessionaire acknowledges
that the ability of the City to effectively operate the airport and promote tourism to the
State of Alaska depends, in part, on the Concessionaire's equipment and service.
Accordingly, the Concessionaire will conduct its operation in a first-class, businesslike,
efficient, courteous, accommodating manner, and will comply with the following:
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A. Business Development: The Concessionaire will take all reasonable measures
to maintain, develop, and increase its business in the terminals.
B. Orderly Operation: The Concessionaire will conduct all business in an orderly
and peaceful manner without interfering with other tenants, users, or occupants of the
airport.
C. Equipment and Service Requirements: The City desires to provide the general
public, airline passengers, and other users of the terminal with ATM machines of the
highest quality.
D. Reasonable Pricing: The Concessionaire will furnish the service authorized
under this agreement to its customers on a fair and nondiscriminatory basis and at fair,
reasonable, and nondiscriminatory prices. Any transaction fees charged to ATM
customers shall be no higher than the highest fee charged for similar services at any
other ATMs within the City of Kenai.
E. Hours of Operation: The Concessionaire will provide ATM machines on a
continuous basis to serve the needs of the general public, airline passengers, and other
users of the airport.
This section will not apply to any period when the Concessionaire is unable to operate
its business because of an act or directive of the City or other higher authority, or as a
direct result of a natural disaster that affects the tenantability of the terminal or the
premises, or as a result of a closure of the airport to all commercial passenger aircraft.
Except in an emergency, the Concessionaire will obtain written approval from the City
before closing the business for repair, maintenance, construction, or other reason.
F. Closure Damages: With 24 hour notice the City may require the Concessionaire
to promptly remove (within 48 hours) any ATM machine which is determined by the City
to not be operational for three consecutive days. The City may then offer the location to
another ATM provider.
G. Foreign Currency: Currency offered to the public through the ATMs authorized in
this agreement shall be U.S. currency.
H. Maintenance: The Concessionaire will keep the ATM machines in good repair,
appearance, and in a safe condition at all times at its own expense. The
Concessionaire will repair or replace ATM machines as their conditions may require.
The Concessionaire will not delay any action the City determines necessary for safety
or to maintain the ATMs in good repair and appearance.
The Concessionaire will pay for any extraordinary power or cleaning services caused by
the Concessionaire which, in the City’s determination, is beyond the scope of normal
services provided by the City. The Concessionaire is responsible for the cost and
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installation of any electrical conduit or wiring beyond that is available on the premises as
of July 1, 2024.
If the Concessionaire causes damage to the City or an airport tenant due to inadequate
maintenance by the Concessionaire of any of its equipment, fixtures, or systems, the
Concessionaire will repair the damage at its own expense. If the Concessionaire does
not repair the damage, the City will repair the damage and bill the Concessionaire for
the City’s costs. The Concessionaire will pay the City within 30 days of the billing date.
I. Signs: The Concessionaire will not install any sign, emblem, or advertising on
the airport, in the terminals, on the ATM machines, without the prior written approval of
the City.
J. Smoking: Neither the Concessionaire nor its employees may smoke in the
terminal except in designated smoking areas, if any.
K. Business Solicitation: The Concessionaire will only solicit and conduct business
on the premises authorized under this agreement.
L. Security Program: The Concessionaire will comply with all applicable
responsibilities of the airport security program, the airport certification manual, and the
airport emergency program required by the Code of Federal Regulations (CFR) Part
139.
ARTICLE VII
AUDITS, REPORTS, BOOKS, AND RECORDS
A. Maintenance of Books and Records: To provide a satisfactory basis for
confirming the accuracy of the Concessionaire's certified activity reports, the
Concessionaire will establish and maintain books and records concerning the business
authorized under this agreement in accordance with generally accepted accounting
principles. The Concessionaire's books and records must, in the determination of the
City, enable the Concessionaire to accurately report, and the City to easily check,
payments due the City under this agreement.
B. Audit: The Concessionaire will permit the City to inspect, copy, and audit the
Concessionaire's books, records, and supporting data at the City's request during
regular business hours. The City may either transport the necessary books and records
to a location on the airport for inspection, copying, or audit, or perform the audit at the
location where the Concessionaire maintains the records.
C. Concession Underpayments: If any City inspection or audit of the
Concessionaire's books and records discloses a Concessionaire underpayment, the
Concessionaire will pay the difference within 30 days of the billing date plus interest
from the original due date.
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C. Public Information: All books, figures, records, reports, statements, or similar
items the Concessionaire submits to the City are public records and available for public
inspection.
ARTICLE VIII
CONSTRUCTION
A. General Construction Requirements: The Concessionaire will obtain the written
approval of the City in the form of a City Building Permit that includes all applicable
attachments and detailed drawings of the proposed construction before beginning any
alteration, construction, or improvement of the premises.
ARTICLE IX
ADDITION, REDUCTION, OR RELOCATION OF CONCESSION SPACE
A. ATM Locations: The Concessionaire will submit a written request to the City to
add, delete, or relocate any ATM. The City will approve or disapprove in writing. The
City will base any approval or disapproval on reasonable and justifiable grounds.
The City will not change the monthly concession fee if the Concessionaire adds,
deletes, or relocates any ATM during the term of this agreement.
ARTICLE X
CITY DIRECTED RELOCATION
The Concessionaire acknowledges that the City may require the relocation of the
premises, in whole or in part, if the City determines that relocation is necessary to meet
the needs of the traveling public or the City.
Any relocation under this article will be solely at the Concessionaire’s expense.
The City is not responsible for any financial loss the Concessionaire may incur because
of relocation under this article.
ARTICLE XI
CITY’S RIGHTS OF ACCESS AND INSPECTION
A. Inspection: The City may at all reasonable times enter and inspect the premises
or observe the Concessionaire's performance of its obligations under this agreement, or
take any action that the City is obligated to take under this agreement, or otherwise.
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The Concessionaire will neither claim nor the City allow any abatement of fees if the
City exercises this right. Except for an emergency, the City will take all reasonable
steps to minimize interference with the Concessionaire's activity on the premises.
B. The City reserves the right to enter the premises to repair, replace, alter, install,
or maintain any mechanical, electrical, plumbing, heating, cooling, ventilation, fire
protection, telecommunication, or other system necessary to the proper functioning of
the terminal without liability to the Concessionaire for any damage to the premises. As
a result of any entry under this section, the City is only liable for its own negligence and
for returning the premises to their former condition using standard materials. Any City
repair, replacement, alteration, installation, or maintenance will not unreasonably
interfere with the Concessionaire's use of the premises. Nothing in this section in any
way relieves the Concessionaire of any obligation to maintain its lease space and
improvements.
ARTICLE XII
CITY SERVICES
A. City Services: The City will perform the following:
1. Maintain the structure of the terminals, the roof, and exterior walls.
2. Provide standard terminal lighting and replacement bulbs only for those
fixtures; space heating and cooling; electricity; and air ventilation.
3. Wash all exterior terminal windows as well as clean and maintain the
public areas in the terminals.
4. Maintain the terminals’ electrical, public address, plumbing, and heating
systems in good condition and repair. However, the City may refuse to maintain any
system installed by the Concessionaire and may charge the Concessionaire for any
repair resulting from the Concessionaire's negligence. The Concessionaire will pay the
City within 30 days of the billing date for any such repair charge.
B. Hold Harmless: The Concessionaire will waive any claim and hold the City
harmless for damages arising out of or resulting from any failure or interruption of utility
services furnished by the City including, but not limited to, stoppage in electrical energy,
space heating, or the failure or interruption of any public or passenger convenience.
ARTICLE XIII
LAWS AND TAXES
This agreement is subject to all regulations, including those relating to leasing facilities
and granting privileges at the Kenai Municipal Airport.
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A. Laws: At no expense to the City, the Concessionaire will comply with all federal,
State of Alaska, and local laws, ordinances, regulations, and airport rules, that are either
now, or in the future, in force that may apply to the business authorized under this
agreement, or to the use, care, operation, maintenance, and protection of the airport,
including matters of health, safety, sanitation, and pollution. The City is neither liable to
the Concessionaire for any diminution or deprivation of the Concessionaire's rights due
to the exercise of any authority, nor is the Concessionaire entitled to terminate the
whole or any portion of this agreement by reason of the City’s exercise of any authority.
B. Taxes: The Concessionaire will obtain all necessary licenses and permits, pay
all taxes lawfully imposed on its business, and pay any other fee or charge assessed
under any applicable public statute, regulation, or ordinance.
C. Disputes: In any dispute between the parties, the laws of the State of Alaska will
govern. If any such dispute results in a lawsuit, the parties will bring the lawsuit before
the courts of the State of Alaska.
D. Claims: The Concessionaire will notify the City of any claim, demand, or lawsuit
arising out of the Concessionaire's rights granted or the operations authorized under
this agreement. At the City’s request, the Concessionaire will cooperate and assist in
the investigation and litigation of any claim, demand, or lawsuit that affects the rights
granted the Concessionaire under this agreement.
ARTICLE XIV
INSURANCE AND INDEMNIFICATION
The following is the City’s indemnification and insurance requirements:
(a) All concession agreements shall include a provision requiring the concessionaire to
indemnify the City from claims related to the concession and the concessionaire.
(b) Except as provided in (c) of this section, all concession agreements shall require the
concessionaire to provide insurance coverage of the following types and minimum
coverage limits. If a concessionaire’s policy contains higher limits, the City will be
entitled to coverage to the extent of the higher limits.
(1) Commercial General Liability, including premises, all operations, property
damage, personal injury and death, broad-form contractual, with a per-
occurrence limit of not less than $1,000,000 combined single limit. The policy
must name the City as an additional insured.
(2) Commercial Automobile Coverage with not less than $1,000,000 combined
single limit per occurrence. This insurance must cover all owned, hired, and non-
owned motor vehicles the concessionaire uses on the Airport.
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(3) Workers Compensation Insurance. For all the concessionaire’s
employees, coverage as required under AS 23.30.045, and, where applicable,
any other statutory obligations. The policy must waive subrogation against the
City.
(c) The City Manager may, with the counsel of the City Attorney, waive or reduce the
insurance requirements under (b) of this section for a concession granted for strictly
non-commercial, individual use purposes.
(d) The concessionaire will provide the City with proof of insurance coverage in the form
of an insurance policy or a certificate of insurance, together with proof that the
premiums have been paid, showing the types and monetary limits of coverage secured.
All insurance required by this section must provide that the City be notified at least 30
days prior to any termination, cancellation, or material change in the insurance
coverage.
(e) A concession shall include a provision allowing the City, at intervals of not less than
five (5) years from the beginning date of the term of the concession and upon written
notice to lessee, revise the insurance requirements required under the concession
agreement. The determination to revise the insurance requirements will be made by the
City Manager with the counsel of the City Attorney and shall be based on the risks
relative to the lessee's operations, any insurance guidelines adopted by the City, and
any change in applicable law.
(g) All policies will be by a company/corporation currently rated “A-“or better by A.M.
Best.
ARTICLE XV
CANCELLATION BY CITY
A. Breach of Agreement
The City may cancel this agreement and recover possession of the premises by giving
the Concessionaire 30 days advance written notice if any of the following events occur,
unless the breach is cured within the 30 days:
1. The Concessionaire does not pay any rent, fee, penalty, or other charge
when due under this agreement.
2. A check for any payment is returned for insufficient funds.
3. The Concessionaire uses the premises for purposes not authorized under
this agreement.
4. A petition in bankruptcy is filed by or against the Concessionaire.
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5. A court enters a judgment of insolvency against the Concessionaire.
6. A trustee or receiver is appointed for the Concessionaire's assets in a
proceeding brought by or against the Concessionaire.
7. A lien is filed against the premises because of any act or omission of the
Concessionaire and the lien is not removed, enjoined, or a bond of
satisfaction of the lien is not posted within 60 days.
8. The Concessionaire does not operate the business authorized under this
agreement on a continuous basis without the City’s advance written
approval.
9. The cessation or deterioration of any service that, in the City’s
determination, materially and adversely affects the service the
Concessionaire is required to perform under this agreement.
10. The Concessionaire does not perform any provision or covenant under
this agreement.
A cancellation notice issued by the City under this article is stayed if, within the 30-day
notice period, the Concessionaire begins and continues expeditious action to cure the
breach in the case of a breach, which is not reasonably curable within 30 days. The
determination of "expeditious action" and "not reasonably curable" is in the City’s sole
discretion.
The Concessionaire will not construe any waiver by the City of any default on the part of
the Concessionaire in the performance of any provision, covenant, or condition to be
performed, kept, or observed by the Concessionaire as a waiver by the City at any time
thereafter of any other default or subsequent default in performance of any provision,
covenant, or condition of this agreement. After a City waiver of default in one or more
instances, the City is not required to provide notice to the Concessionaire to restore or
revive that time is of the essence under this agreement. The waiver of any right or
obligation under this agreement is not effective nor binding on the Concessionaire
unless it is in writing and signed on behalf of the City.
B. Additional Rights of the City: On termination or cancellation of this agreement or
on reentry, the City may regain or resume possession of the premises, may occupy the
premises, and may permit any person, firm, or corporation to enter on and use the
premises. The City may also repair or make any structural or other change in the
premises that are necessary, in the City’s sole determination, to maintain the suitability
of the premises for uses similar to those granted under this agreement without affecting,
altering, or diminishing the obligations of the Concessionaire under this agreement. The
City will charge the Concessionaire the cost of these repairs and the Concessionaire will
pay these charges within 30 days of the billing date.
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C. Ownership of Equipment and Improvements: If the City cancels this agreement
due to a Concessionaire default, all of the Concessionaire's title and interest in
furnishings, fixtures, equipment, and improvements installed in or adjacent to the
terminal under this agreement vest in the City. The City may dispose of these items as
it sees fit. The Concessionaire will reimburse the City within 60 days of the billing date
for any cost the City incurs in removing and disposing of these items.
D. Survival of Concessionaire's Obligations: If the City cancels or terminates this
agreement, all of the Concessionaire's obligations under this agreement will survive in
full force for the entire period of this agreement. Subject to the City's obligation to
mitigate damages, the fees and charges become due and payable to the City to the
same extent, at the same time, and in the same manner as if no termination or
cancellation had occurred. The City may maintain separate actions to recover any
monies then due, or at its option and at any time, may sue to recover the full deficiency.
E. Surrender of Possession: The Concessionaire will yield possession of the
premises to the City on the date of the termination, cancellation, or normal expiration of
this agreement promptly, peaceably, quietly, and in as good order and condition as the
same now or later improved by the Concessionaire or the City, reasonable use and
wear-and-tear accepted.
The City will allow the Concessionaire a maximum of five calendar days after the
effective date of the expiration of this agreement to remove all of its personal property,
equipment, furniture, and fixtures from the premises. The Concessionaire
acknowledges that as part of the consideration for this agreement, all property
remaining on the premises after these five calendar days becomes the sole property of
the City. The City may remove, modify, sell, or destroy the property as it sees fit. The
Concessionaire will pay the City within 30 days of the billing date for any cost the City
incurs in property removal and disposal.
ARTICLE XVI
CANCELLATION BY CONCESSIONAIRE
The Concessionaire may cancel this agreement by giving the City 30 days advance
written notice if any of the following events occur:
A. Abandonment: The permanent abandonment of the airport by all passenger
airlines or the removal of all passenger airline service from the airport for a period of at
least 90 consecutive days.
B. Assumption: The lawful assumption by the United States government or its
authorized agent, of the operation, control, or use of the airport, or any substantial part
of the airport, that restricts the Concessionaire from operating its business under this
agreement for a period of at least 90 consecutive days.
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C. Injunction: A court of competent jurisdiction issues an injunction that prevents or
restrains the use of the airport by all airlines provided the injunction remains in force for
at least 90 consecutive days.
ARTICLE XVII
SUBSEQUENT CONTRACT
A. Subsequent Contract Award: The Concessionaire acknowledges that on the
expiration, cancellation, or termination of this agreement, the City may aw3ard any
subsequent ATM contract by any legal means then available to the City.
B. Transition Schedule at Normal Expiration: The Concessionaire understands that
it is neither practical nor possible for the City to predict the exact transition schedule and
procedure to best serve the needs of the traveling public and the City at the normal
expiration of this agreement.
The City will provide the Concessionaire a written notice of the transition plan
determined by the City to best serve the needs of the traveling public and the City at
least 30 days before turning the business over to a succeeding Concessionaire.
The Concessionaire will diligently execute the transition plan determined by the City,
abide by its time schedule, and cooperate with the City and the succeeding
concessionaire in carrying out the transition plan. In any dispute between the
Concessionaire and the succeeding concessionaire during the transition period, the
Concessionaire will abide by the decision of the City.
At the normal expiration of this agreement, the Concessionaire will either remove its
furniture, fixtures, equipment, and improvements or sell them to the succeeding
Concessionaire. If the Concessionaire neither sells nor removes these items within five
calendar days after expiration, the City may remove, sell, modify, or destroy these items
as it sees fit. The Concessionaire will reimburse the City for any cost the City incurs in
removal and disposal within 30 days after the billing date.
ARTICLE XVIII
ASSIGNMENT OR SUBCONTRACT
A. Prohibition: The Concessionaire will not mortgage, hypothecate, nor otherwise
encumber or assign the concession rights created under this agreement, in whole or in
part, without the advance written consent of the City.
Any attempted assignment, mortgage, hypothecation, or encumbrance of the
concession rights, or other violation of this article is void and will confer no right, title, or
interest neither in nor to this agreement, on any assignee, mortgagee, encumbrancer,
pledgee, lienholder, subtenant, successor, or purchaser.
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B. Approval by City: The Concessionaire will submit three copies of any proposed
assignment or subcontract to the City for advance written approval. Each copy must
bear the original notarized signature of all parties. All covenants and provisions of this
agreement extend to and bind the legal representatives, successors, and assignees of
the parties.
C. Merger, Consolidation, or Reorganization: The City will not unreasonably
withhold its consent to an assignment of this agreement by the Concessionaire to a
corporation that results from a merger, consolidation, or reorganization of the
Concessionaire to a corporation that purchases all or substantially all of the assets of
the Concessionaire or to any corporation that controls or is controlled by or is under
common control with the Concessionaire.
For purposes of this section, "control" of any corporation is deemed vested in the
person or persons owning more than 50 percent of the voting power for the election of
the board of directors of the corporation.
ARTICLE XIX
GENERAL COVENANTS
A. Execution by City: This agreement is not effective until signed by the City
Manager of City of Kenai, or a designated representative.
B. Approval by City: The City will not unreasonably withhold any approval required
under this agreement.
C. Notices: Any notice required under this agreement must be hand delivered, sent
by registered or certified mail, or delivered by a reliable overnight delivery service to the
appropriate party at the address set forth on page one of this agreement or to any other
address that the parties subsequently designate in writing. All notice periods begin on
the date the notice is mailed.
D. Modification: The Concessionaire acknowledges that the City may modify this
agreement to meet the revised requirements of federal or State grants, to operate the
airport, or to conform to the requirements of any revenue bond covenant to which the
City of Kenai, and may do so without formal amendment. However, a modification may
neither reduce the rights or privileges granted the Concessionaire under this agreement
nor cause the Concessionaire financial loss.
E. Interrelationship of Provisions: All provisions of this agreement and the
associated bid documents are essential parts of this agreement and are intended to be
cooperative, to provide for the use of the premises, and to describe the respective rights
and obligations of the parties to this agreement.
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F. Validity of Parts: The remaining parts continue in full force if a court of competent
jurisdiction declares any part of this agreement invalid.
G. Radio Interference: At the City's request, the Concessionaire will discontinue the
use of any machine or device that interferes with any government-operated transmitter,
receiver, or navigation aid until the cause of the interference is eliminated.
H. Discrimination: The Concessionaire will not discriminate on the grounds of race,
color, religion, national origin, ancestry, age, or sex against any patron, employee,
applicant for employment, or other person or group of persons in any manner prohibited
by federal or State law. The Concessionaire recognizes the right of the City to take any
action necessary to enforce this covenant, including actions required by any federal or
State law.
I. Affirmative Action: The Concessionaire will undertake any affirmative action
program required by 14 CFR, Part 23, Subpart F, to insure that the Concessionaire will
not exclude any person from participating in any employment activity on the grounds of
race, creed, color, national origin, or sex. The Concessionaire will not exclude any
person on these grounds from participating in or receiving the services or benefits of
any program or activity covered by the subpart. The Concessionaire further
understands that it will require its covered sub organizations to provide assurances to
the City that they will also undertake affirmative action programs and require
assurances from their sub organizations.
J. National Emergency: If the federal government declares a national emergency,
the Concessionaire will not hold the City liable for the inability to perform any part of this
agreement resulting from the national emergency.
K. No Waiver: If the City does not insist in any one or more instances on the strict
performance by the Concessionaire of any provision or article under this agreement, it is
not a waiver or relinquishment for the future, but the provision or article will continue in
full force. A City waiver of any provision or article in this agreement cannot be enforced
nor relied on unless the waiver is in writing and signed on behalf of the City.
L. Disasters: If in the determination of the City, fire, flood, earthquake or other
casualty damages the airport so extensively as to render it untenantable, either party
may elect to terminate this agreement on 30 days written notice to the other party. If
this agreement is terminated because of a disaster, the City will prorate the fees
payable under this agreement up to the time the airport becomes untenantable.
M. Condemnation: If any proper authority condemns the airport, this agreement
ends on the date the Concessionaire is required to leave the premises. The City is
entitled to all condemnation proceeds. However, the City will pay the Concessionaire
the portion of proceeds attributable to the fair market value of any improvements placed
on the premises by the Concessionaire.
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N. Quiet Enjoyment: The City covenants that it has full, unencumbered title to the
airport; that it has the right and lawful authority to execute this agreement; and that the
Concessionaire will have, hold, and enjoy peaceful and uninterrupted use of the
premises.
O. Bid Documents: The Invitation for Bids, the Instructions to Bidders, the Bid
Questionnaire, the Bidder's Affidavit, the Bid Submittal form, any addenda, and the
required bid deposit are part of this agreement, and each party will fully perform all
provisions of these documents.
P. Entire Agreement: This agreement, including any amendment, constitutes the
entire agreement between the parties. No modification or amendment of this
agreement is effective unless in writing and signed by both parties, except as stipulated
in section D. of this article.
Q. Time: Time is of the essence in the performance of all rights and obligations of
the parties to this agreement.
R. Laws: The Concessionaire shall ensure that all requirements of the City, State
and Federal laws and regulations adopted by the City, State, Federal or any
governmental legal authority and the rules and regulations promulgated by the City as
same may be amended from time to time, are fully complied with at all times.
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WITNESS WHEREOF, the parties have set their hands and day and year as stated in
the acknowledgments below:
CITY OF KENAI:
By: ___________________________
Terry Eubank – City Manager
CONCESSIONAIRE:
By: ___________________________
Concessionaire – Title
STATE OF ALASKA )
) ss
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this ___ day of , 2024, Terry Eubank, City
Manager of the City of Kenai, Alaska, being personally known to me or having produced
satisfactory evidence of identification, appeared before me and acknowledged the
voluntary and authorized execution of the foregoing instrument on behalf of the City.
Notary Public for Alaska
My Commission Expires:
STATE OF ALASKA )
) ss
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this ___ day of , 2024, ,
Concessionaire, of the ATM, being personally known to me or having produced
satisfactory evidence of identification, appeared before me and acknowledged the
voluntary and authorized execution of the foregoing instrument.
Notary Public in and for Alaska
My Commission Expires:
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Sponsored by: City Clerk
New Text Underlined; [DELETED TEXT BRACKETED]
CITY OF KENAI
RESOLUTION NO. 2024-28
A RESOLUTION AMENDING CITY COUNCIL POLICY NO. 20.020 COMMISSIONS, COMMITTEES
AND COUNCIL ON AGING PROCEDURES TO AMEND THE MEETING LOCATION FOR THE
AIRPORT COMMISSION AND MAKING OTHER HOUSEKEEPING AMENDMENTS.
WHEREAS, the Airport Commission during their March 14, 2024 meeting recommended the meeting
location for the Airport Commission be relocated from the Airport Terminal Building Conference Room to
the City Hall Council Chambers; and,
WHEREAS, multiple housekeeping amendments are need to align with changes made to Kenai Municipal
Code with the enactment of Ordinance No. 3416-2024 Substitute, which repealed Kenai Municipal Code
1.90 - Standard Procedures for Boards, Commissions and Committees, replaced it with 1.90 - General
Standards for Standing Advisory Commissions and enacted Chapter 1.95 - Standing Advisory
Commissions; and,
WHEREAS, the effective date of Ordinance No. 3416-2024 was June 14, 2024; and,
WHEREAS, the amendments as proposed to Policy No. 20.020 would incorporate the recommendation
from the Airport Commission and make other housekeeping amendments.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA:
Section 1. That City Council Policy No. 20.020 Commissions, Committees and Council on Aging
Procedures as amended and attached is hereby adopted.
Section 2. That this Resolution takes effect immediately upon passage.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 19TH DAY OF JUNE, 2024.
___________________________________
Brian Gabriel Sr., Mayor
ATTEST:
___________________________________
Michelle M. Saner, MMC, City Clerk
Page 100
Page 1 of 4
CITY COUNCIL – 20.020
STANDING COMMISSIONS[, COMMITTEES AND COUNCIL ON AGING] AND
OTHER ADVISORY BODY PROCEDURES
Effective Date: March 5, 2014 Last Action Date: April 19, 2023
See Also: Approved by: City Council
POLICY – 20.020 Standing Commissions [, COMMITTEES AND COUNCIL ON
AGING] and other Advisory Body Procedures.
Purpose
The purpose of this policy is to establish procedures, other than those provided in KMC 1.90, for Standing
Commission[S, COMMITTEES AND COUNCIL ON AGING] and other Advisory Bodies established by the Council.
Scope
This policy applies to all standing commissions or other advisory bodies appointed by the City Council. In
addition to this policy the following Kenai Municipal Code (KMC) provisions are applicable:
Airport Commission is also regulated by KMC [21.20] 1.95.010
Beautification Commission is also regulated by KMC 1.95.020
Council on Aging Commission is also regulated by KMC 1.95.030 and the Council on Aging By-Laws
Harbor Commission is also regulated by KMC [11.10] 1.95.040
Parks and Recreation Commission is also regulated by KMC [19.05] 1.95.050
Planning and Zoning Commission is also regulated by KMC 14.05.
Policy
A. Appointment and Reappointments
1. An application for consideration of appointment or reappointment to a Standing Commission [,
COMMITTEE OR COUNCIL ON AGING] or other Advisory Body of the Council must be submitted to the
City Clerk.
2. The Mayor nominates an applicant for appointment or reappointment and by motion, the City Council
confirms.
B. Establishing Subcommittees
1. A subcommittee of a Standing [C]Commission [OR COMMITTEE] or other advisory body may be
established for a specific function upon approval of Council.
C. Meeting Schedules
1. Standing Commission[, COMMITTEE AND COUNCIL ON AGING MEETING] schedules [IS] are as follows:
Commission / Committee /
Council on Aging Meeting Schedule Scheduled Meeting Days
Airport Commission Monthly Second Thursday of the month
Beautification Meetings held January, April,
May, September and October
Second Tuesday of the month
Council on Aging Monthly Second Thursday of the month
Harbor Commission Meetings held February,
March, April, May, June,
August, September and
November
First Monday after first Council
meeting of the month
Library Commission (Suspended as of 2015, Ordinance No. 2815-2015)
Page 101
Parks & Recreation
Commission
Monthly, except for July First Thursday of the month
Planning & Zoning Commission Twice monthly Second & fourth Wednesday
2. All regular meetings will be held in the Kenai City Hall Council Chambers with the exception of the
Council on Aging Commission who shall meet at the Senior Center [ AND THE AIRPORT COMMISSION
WHO SHALL MEET IN THE CONFERENCE ROOM OF THE KENAI MUNICIPAL AIRPORT TERMINAL BUILDING],
unless offsite arrangements are approved by the Clerk. Exceptions for subcommittee meetings may
be made with the advance notice of the City Clerk.
3. Regularly scheduled meeting times will be approved by Council.
4. [COMMISSIONS, COMMITTEES AND COUNCIL ON AGING MAY, WITH THE CITY CLERK'S APPROVAL AND
NOTIFICATION TO COUNCIL AND THE CITY MANAGER, HOLD S]Special meetings (for a specific purpose)
on an as-needed basis may be scheduled with the Clerk’s approval and notification to the Council
and City Manager.
5. [COMMISSIONS, COMMITTEES AND COUNCIL ON AGING M]Meetings may be cancelled or rescheduled by
the City Clerk, with notification to Council and the City Manager, if cancellation or rescheduling is
warranted, i.e. lack of agenda items, pre-knowledge of lack of a quorum, etc.
6. Any additional commissions or [COMMITTEES] or other advisory bodies established by Council will be
set and incorporated into the meeting schedule by the City Council.
D. Minutes & Meeting Recordings
1. With exception of the Planning & Zoning Commission, taking notes and electronically recording
meetings shall be the responsibility of department liaison to the specific [MEETING] Standing
Commission or advisory body. The Clerk's Office shall take notes and record the meeting for the
Planning and Zoning Commission.
2. Action minutes will be produced by the Clerk's Office from the department liaisons notes and provided
to the City Council as official records of the meetings. Summary minutes will be produced by the
Clerk’s Office for Planning and Zoning Commission items when the item is quasi-judicial.
3. Regularly scheduled meetings shall be electronically recorded and with the exception of Planning &
Zoning Commission, shall be kept for two years.
4. Planning & Zoning Commission meeting recordings shall be kept for 6 years.
E. Work Sessions
1. Work sessions may not be held without the approval of the City Clerk unless they occur on the night
of and at the time of a regularly scheduled advertised meeting. Notification of scheduled work session
shall be provided to City Council and the City Manager. Work session may be requested by Council,
the liaison or Chair of the body.
2. During work sessions, only items on the work session agenda may be discussed and no formal
actions may be taken.
3. At a minimum, work sessions shall be posted on the Official City Bulletin Board in Kenai City Hall and
on the city website at least five days prior to the meeting.
F. Basic Meeting Information
1. All meetings shall be open to the public.
2. At a minimum, meeting notices shall be posted on the Official City Bulletin Board in Kenai City Hall
and on the city website at least five days prior to the meeting.
3. Meeting agendas shall be established by the Chair and the department liaison and shall be relevant
to the authority of the [BOARD, ]Standing Commission or other advisory body [OR COMMITTEE] as
designated within the bylaws or Kenai Municipal Code. Items requiring [COMMITTEE, ]commission [OR
Page 102
COUNCIL ON AGING] action under applicable municipal code prior to final action by the Council, as
distinguished from advisory recommendations, will be referred to the respective body prior to any
final Council action. The City Council, by motion, may refer any other item to be placed on an agenda
seeking a recommendation from the respective [COMMITTEE,] Standing Commission[, OR COUNCIL ON
AGING]or other advisory body.
4. The department liaison shall submit items for the agenda and supporting documentation to the Clerk's
Office one week prior to a meeting, no later than 2:00 p.m. The Clerk's Office will compile meeting
material and distribute. The Planning & Zoning Commission is exempt from this requirement as the
Planning Department advertises, compiles meeting material and distributes for its commission.
5. Rules of Order: Pursuant to KMC 1.15.120(b) and KMC 1.90.050(c), in all matters of parliamentary
procedure, Robert's Rules of Order, as revised shall be applicable and govern all meetings, except
as specified in KMC 1.15.060 (Motions), KMC 1.15.100 (Speaking), and KMC 1.15.110 (Voting).
6. Quorum: No meeting may proceed in the absence of a quorum, i.e. a quorum is more than one-half
of the board/commission (quorum of the whole).
7. Motion: Pursuant to KMC 1.15.060(k), all motions require a second. A majority of votes is required to
pass a motion.
8. Speaking: In a meeting, members should be recognized by the Chair before speaking.
9. When is it a Meeting: If any public business is discussed collectively by four or a majority of members
of one body.
10. Representation of the body: Members of a City of Kenai [Board,] Standing Commissions[, COMMITTEE
OR COUNCIL ON AGING ]or other advisory bodies may only speak on behalf of the body when approved
to do so by a majority vote of the body; at which time their basic responsibility is to carry out the
body’s directives identified within the approved motion.
G. Council Participation
1. Any Council Member may attend a meeting or work session of any Standing Commission[,
COMMITTEE OR THE COUNCIL ON AGING]or other advisory body; however, no more than three Council
Members may attend any one meeting without additional public notice.
2. Only the Council Liaison to the respective[,] Standing Commission[, COMMITTEE OR COUNCIL ON
AGING] or other advisory body may speak on behalf of the Council to the relevant body if approved
to do so by a majority vote of the City Council. Participation of the Liaison at Standing Commission[,
COMMITTEE AND COUNCIL ON AGING] or other advisory body meetings is limited to updating the body
on the actions of the Council and reporting back to the Council the actions of the Commission[,
COMMITTEE OR COUNCIL ON AGING]. The Liaison is a non-voting member and may not participate in
the debate of an advisory body.
3. Participation by Council Members (acting as a Council Member) other than the Liaison should be
limited to ONE Council Member who is a sponsor of a legislative item to be considered for
recommendation from the advisory body. The sponsors participation should be limited to three-minute
testimony and answering questions from the body. The sponsor of the legislation may not participate
in debate of the advisory body. When speaking to the advisory body as the legislate sponsor the
following additional rules apply:
a. The legislative sponsor will not testify from the Dais, testimony from the sponsor shall be made
from the area designated for public comment.
b. If the legislative sponsor is the Liaison to the advisory body, the legislative sponsor will remove
themselves from the dais and seat themselves in the public area of the chambers. The legislative
sponsor will remain in the public seating area during the discussion, debate and voting on the
legislative item in which they sponsored.
4. Exception: Council Members may fully participate in any joint work session or other meeting with a
Standing Commission[, COMMITTEE, OR THE COUNCIL ON AGING] or other advisory body when it has
been noticed that the City Council will be in attendance, or there has been a specific delegation of
authority by the Council for a member(s) to represent the Council.
Page 103
__________________________________
Brian Gabriel Sr., Mayor
ATTEST:
___________________________________
Shellie Saner, MMC, City Clerk
Policy History: Action Approval on 08-04-2004; R2017-24; R2018-19; 2019-03; 2023-26; R2024-28
Note: Between 2004 and 2017 other amendments to the policy were made through the action approval process.
Page 104
MEMORANDUM
TO: Mayor Gabriel and Council Members
FROM: Shellie Saner, City Clerk
Derek Ables, Airport Manager
DATE: June 13, 2024
SUBJECT: Resolution No. 2024-28 - Amending City Council Policy No. 20.020
Commissions, Committees and Council on Aging Procedures to
Amend the Meeting Location for the Airport Commission and Making
Other Housekeeping Amendments.
Airport Commission Meeting Location: In 2023 the location of the Airport Commission
meetings was changed from the City Hall Council Chambers to the Conference Room at the
Airport Terminal Building. The change of location was not optimal for meetings of a governmental
body and during the March 14, 2024 Airport Commission meeting the Airport Commission
unanimously recommended relocating the meetings back to the City Hall Council Chambers.
Housekeeping Amendments: These amendments are proposed to bring the policy in alignment
with the changes made with the enactment of Ordinance 3416-2024 Substitute. The Ordinances
was enacted by Council on May 15, 2024 with an effective date of June 14, 2024. The Ordinance
repealed KMC 1.90 - Standard Procedures for Boards, Commissions and Committees, renamed
and reenacted KMC 1.90 - General Standards for Standing Advisory Commissions; repealed code
sections specific to individual Commissions of the City and enacted a new section of KMC 1.95 -
Standing Advisory Commissions. The following identifies the housekeeping amendments:
• Renames the policy to “Standing Commissions and other Advisory Body Procedures”
• Establishes that the policy applies to Standing Commissions and other Advisory Bodies
established by the Council.
• Deletes the “Commissions, Committees and Council on Aging” throughout and replaces
with “Standing Commissions or other Advisory Bodies”.
• Updates references in the policy to the new sections of code for each Standing
Commission.
Your consideration is appreciated.
Page 105
Sponsored by: Administration
New Text Underlined; [DELETED TEXT BRACKETED]
CITY OF KENAI
RESOLUTION NO. 2024-29
A RESOLUTION AUTHORIZING A SERVICE AGREEMENT FOR THE PERSONAL USE FISHERY
DUMPSTERS AND PORTABLE RESTROOMS.
WHEREAS, a formal Invitation to Bid was released on May 31, 2024 with bids dues on June 11, 2024 for
the City’s annual 2024 Personal Use Fishery Dumpsters & Portable Toilets service contract; and,
WHEREAS, one bid was received by the City as detailed below:
Bidders Schedule A Schedule B Schedule C Schedule D
Peninsula Pumping, Inc. $30,000 $31,350 $6,600 $15,950
; and,
WHEREAS, the total combined bid for all schedules is $83,900; where Schedule A is for all road
accessible restrooms, Schedule B is for all non-road accessible restrooms, Schedule C is for all road
accessible dumpsters and Schedule D is for all non-road accessible dumpsters; and,
WHEREAS, this represents a $4,900 increase over last year’s bid of $79,000, an approximately 6.25%
increase; and,
WHEREAS, Peninsula Pumping, Inc., having performed these same services last year as well as other
previous years, is known to be a reliable and capable firm; and,
WHEREAS, award to Peninsula Pumping is in the best interest of the City.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA:
Section 1. That the City Manager is authorized to execute a service agreement and issue a
corresponding purchase order to Peninsula Plumbing, Inc., in the amount of $83,900 for the 2024
Personal Use Fishery Dumpsters & Portable Toilets.
Section 2. That this Resolution takes effect immediately upon passage.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 19TH DAY OF JUNE, 2024.
___________________________________
Brian Gabriel Sr., Mayor
ATTEST:
___________________________________
Michelle M. Saner, MMC, City Clerk
Approved by Finance: _________________
Page 106
MEMORANDUM
TO: Mayor Gabriel and Council Members
THROUGH: Terry Eubank, City Manager
FROM: Scott Curtin, Public Works Director
DATE: June 11, 2024
SUBJECT: Resolution 2024-29 – Personal Use Fishery Service Agreement
This memo requests Council’s approval to award a service agreement to Peninsula Pumping Inc.
to supply and service dumpsters and portable restrooms for the Personal Use Fishery from July
10th-31st. These are recurring services the City provides annually in support of the fishery.
There were no changes to last year’s request for services. We continue to provide dumpster and
restroom facilities at South Beach, City Dock, North Beach, and the S. Spruce St. Ball Fields.
Peninsula Pumping Inc. was the only vendor to provide a bid toward these services, they were
the same company that provided services last year. Fees this year are $83,900, an approximately
6.25% increase over last year. Based on the current inflationary environment the cost increase
is reasonable.
Award of this agreement is in the best interest of the City. Council’s approval is respectfully
requested.
Page 107
Sponsored by: Administration
New Text Underlined; [DELETED TEXT BRACKETED]
CITY OF KENAI
RESOLUTION NO. 2024-30
A RESOLUTION AUTHORIZING A CONTRACT AWARD AND CORRESPONDING PURCHASE
ORDER FOR THE 2024 RECREATION CENTER EPOXY FLOORING PROJECT.
WHEREAS, a formal Invitation to Bid was released on May 29, 2024 with bids due on June 11, 2024 for
the 2024 Recreation Center Epoxy Flooring Project; and,
WHEREAS, this project continues on with other recent improvements at the facility utilizing grant funds
from the Healthy & Equitable Communities MOA # C0622-584-K; and,
WHEREAS, work will include refinishing of the lower level concrete / tile floors with an epoxy floor coating
system throughout the men’s and women’s locker rooms and corridor; and,
WHEREAS, six bids were received by the City as detailed below:
Bidders Total Bid
Rainbow Builders Inc. $91,995.00
Alaska Concrete & Restoration LLC $93,156.90
JNL Painting $97,888.00
Pro Grind Alaska Rental LLC $98,470.00
Alaska Paint Company LLC $218,300.00
Orion Construction Inc. $324,000.00
; and,
WHEREAS, Rainbow Builders Inc. was determined to be the lowest responsive responsible bidder at a
total bid cost of $91,995; and,
WHEREAS, award to Rainbow Builders Inc. is in the best interest of the City.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA:
Section 1. That the City Manager is authorized to execute a contract award and corresponding
purchase order to Rainbow Builders Inc. in the amount of $91,995.
Section 2. That this Resolution takes effect immediately upon passage.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 19TH DAY OF JUNE, 2024.
___________________________________
Brian Gabriel Sr., Mayor
ATTEST:
___________________________________
Michelle M. Saner, MMC, City Clerk
Approved by Finance: _________________
Page 108
MEMORANDUM
TO: Mayor Gabriel and Council Members
THROUGH: Terry Eubank, City Manager
FROM: Scott Curtin, Public Works Director
DATE: June 19, 2024
SUBJECT: Resolution 2024-30 – 2024 Recreation Center Epoxy Flooring
This memo is to recommend a contract award and corresponding purchase order to Rainbow
Builders Inc. in the amount of $91,995 in support of the 2024 Recreation Center Epoxy Flooring
Project. This project is a continuation of other work at the facility, further utilizing available grant
funding through the Healthy & Equitable Communities program.
The pictures below reference the specified product as well as the locations within the facility the
work will take place. Work is expected to take place over the summer months and will affect facility
operations similar to the recent gymnasium floor refinishing work. Completion of this work is
catching up with much needed maintenance at the facility. We appreciate everyone’s patience as
we work through these improvements.
Please take a moment and stop by the facility to see the recent improvements to your rec center!
Council’s approval is respectfully requested.
Page 109
Page 2 of 2
Page 110
Sponsored by: Administration
New Text Underlined; [DELETED TEXT BRACKETED]
CITY OF KENAI
RESOLUTION NO. 2024-31
A RESOLUTION APPROVING A TWELVE-MONTH EXTENSION OF TIME FOR GOOD CAUSE FOR
THE COMPLETION OF PERMANENT IMPROVEMENTS FOR A LEASE BETWEEN THE CITY OF
KENAI AND JOEL CALDWELL FOR AIRPORT RESERVE LANDS DESCRIBED AS LOT 3, BLOCK 4,
GENERAL AVIATION APRON SUBDIVISION NO. 1, PLAT NO. 73-68.
WHEREAS, Resolution No. 2022-27 approved a lease between the City of Kenai and Joel Caldwell, for
Lot 3, Block 4, General Aviation Apron Subdivision No. 1; and,
WHEREAS, the lease requires the lessee to construct additional storage space, restroom facilities, and
paving by June 30,2024 with an aggregate cost of at least $100,000; and,
WHEREAS, the lessee has requested a one-year extension to complete the improvements due to
challenges related to sustaining and growing of Kenai Aviation flight services in and out of Kenai
Municipal Airport; and,
WHEREAS, KMC 21.10.080(g)(5) allows the Council to extend the time for completion of permanent
improvements required in a lease for up to twelve months for good cause; and,
WHEREAS, the Airport Commission at its regularly scheduled meeting of June 13, 2024 recommended
City Council approval; and,
WHEREAS, the coordination between Peter Heinrichsohn, CEO of Kenai Aviation, and paving
contractors constitute a good cause justifying a twelve-month lease extension.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA:
Section 1. That the City Council agrees to amend the Lease with Joel Caldwell for Lot 3, Block 4,
General Aviation Apron Subdivision No. 1, Plat 73-68 to extend the date that improvements are required
to be completed to June 30, 2025 for good cause as described above. The Council further authorizes the
City Manager to execute a lease amendment Joel Caldwell to effectuate the extension.
Section 2. That this Resolution takes effect immediately upon passage.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 19TH DAY OF JUNE, 2024.
___________________________________
Brian Gabriel Sr., Mayor
ATTEST:
___________________________________
Michelle M. Saner, MMC, City Clerk
Page 111
MEMORANDUM
TO: Mayor Gabriel and Council Members
THROUGH: Terry Eubank, City Manager
THROUGH: Linda Mitchell, Planning Director
FROM: Brandon McElrea, Planning Technician
DATE: June 11, 2024
SUBJECT: Resolution No. 2024-31 – Joel Caldwell Lease Extension
With the departure of Ravn Air, Kenai Aviation had to scramble to fill the demand of flight services
and redirect project funding in order to sustain and grow Kenai Aviation flight services. As a result,
the construction of the required improvements has been delayed. Peter Heinrichsohn, CEO of
Kenai Aviation, has requested a one-year extension to complete the required improvements on
Lot 3, Block 4, General Aviation Apron Subdivision No. 1 (see request letters). Administration is
supportive of a one-year extension as allowed in code pursuant to KMC 21.10.080(g)(5).
Thank you for your consideration.
Attachments
Extension Request Letter
Follow-Up Letter
Page 112
From:Terry Eubank
To:Linda Mitchell
Cc:Brandon McElrea
Subject:FW: Applying for a one (1) year extension for Kenai Aviation/ Lot 3, Block 4, GAA No. 1 to complete
improvements
Date:Wednesday, May 15, 2024 2:35:32 PM
From: Peter Heinrichsohn <peter@kenaiaviation.com>
Sent: Wednesday, May 15, 2024 12:08 PM
To: Terry Eubank <TEubank@kenai.city>
Cc: Joel Caldwell <joel@kenaiaviation.com>; Craig Walls <craig@kenaiaviation.com>
Subject: Applying for a one (1) year extension for Kenai Aviation/ Lot 3, Block 4, GAA No. 1 to
complete improvements
CAUTION: This email originated from outside your organization. Exercise caution when opening
attachments or clicking links, especially from unknown senders.
14 May 2024
Mr. Terry Eubank
City Manager
City of Kenai
210 Fidalgo Aveneu
Kenai, AK 99611-7794
Dear Mr. Eubank,
I recently met with Brandon McElrea, who provided me with an update on the status of the above-
referenced lease and informed me of Joel Caldwell’s requirements for compliance with Article XIV.
I am writing to formally request a one-time extension of 12 months to complete the necessary
improvements. Mr. McElrea is currently assisting me with answering some questions I had during
our last meeting, which will help me develop a comprehensive plan moving forward.
The reasons for my request to extend this agreement/lease are as follows:
1. We have been diligently working to sustain and grow Kenai Aviation, which has required all
available funds. As a result, we have not had the financial capacity to fund the required
improvements.
Moving forward, our plan includes the following steps:
I will personally manage the project to ensure all deliverables are completed by the end of
May 2025 or earlier if possible.
I have already contacted paving contractors to discuss timelines and costs.
Page 113
Thank you very much for your time and consideration of this matter.
Respectfully,
Peter Heinrichsohn | 907 230 3060
CEO
Kenai Aviation
Sent via Superhuman
Page 114
From:Peter Heinrichsohn
To:Brandon McElrea
Subject:Re: Lot 3, Block 4, GAA No. 1 extension/definition of storage space.
Date:Monday, June 10, 2024 3:33:42 PM
CAUTION: This email originated from outside your organization. Exercise caution when
opening attachments or clicking links, especially from unknown senders.
Hello Brandon,
I am well. After I left our last meeting, I came down with the worst upper respiratory infection
I have ever had. It took me almost three weeks to be able to breathe normally again. I
hope you had an easier time of it and that you are well. The same goes for the lady I met, your
supervisor.
As to your email above, thank you for allowing me to try to elaborate. Since I started in my
current position on January 1st I can only comment on what I have found since then. The last
few years have been a struggle for many Alaskan airline operators, and Kenai Aviation is no
different. Then Ravn left Kenai, and we had to scramble to fill the demand. All I can say is
that while growth is good, it can also be challenging. We are all working hard to grow
sustainably.
Thank you for clarifying the hangar storage issue. We should be able to work with that.
I am sorry, but I cannot find contact details for the planning manager. Would you please share
it with me?
Many thanks,
Best regards,
Peter Heinrichsohn | 907 230 3060
CEO
Kenai Aviation
Page 115
KEN AI CITY COUNCIL – REGULAR MEETING
JUNE 5, 2024 – 6:00 P.M.
KENAI CITY COUNCIL CHAMBERS
210 FIDALGO AVE., KENAI, AK 99611
VICE MAYOR HENRY KNACKSTEDT, PRESIDING
City of Kenai Council Meeting Page 1 of 15
June 5, 2024
MINUTES
A. CALL TO ORDER
A Regular Meeting of the Kenai City Council was held on June 5, 2024, in City Hall Council Chambers,
Kenai, AK. Vice Mayor Knackstedt called the meeting to order at approximately 6:00 p.m.
1. Pledge of Allegiance
Vice Mayor Knackstedt led those assembled in the Pledge of Allegiance.
2. Roll Call
There were present:
Henry Knackstedt, Vice Mayor James Baisden
Phil Daniel Deborah Sounart
Alex Douthit Victoria Askin
A quorum was present.
Absent:
Brian Gabriel, Mayor
Also in attendance were:
**Xinlan Tanner, Student Representative (remote participation)
Terry Eubank, City Manager
Scott Bloom, City Attorney
David Swarner, Finance Director
Linda Mitchell, Planning Director
Stephanie Randall, Human Resource Director
Katja Wolf, Library Director
Tyler Best, Parks and Recreation Director
Scott Curtin, Public Works Director
Kathy Romain, Senior Services Director
Derek Ables, Airport Manager
Dave Ross, Police Chief
Shellie Saner, City Clerk
3. Agenda Approval
Vice Mayor Knackstedt noted the following additions to the Packet:
Add to item E.1. Public Hearing – Ordinance No. 3418-2024
• Amendment Memo - Radio Advertising
Add to item E.5. Public Hearing – Resolution No. 2024-20
• Attachment to Recreation Center Fees Amendment Memo
• Amendment Memo - Adopt-A-Bench Fees
Add to item E.6. Public Hearing – Resolution No 2024-21
• Request to Postpone Indefinitely Memo
Page 116
City of Kenai Council Meeting Page 2 of 15
June 5, 2024
Add to item G.1. Unfinished Business - Public Hearing – Resolution No. 2024-17
• Public Comments
• Request to Postpone Memo
Add to item H.15. Discussion - Scheduling a Joint Work Session with the Planning and
Zoning Commission on the Comprehensive Safety Action Plan (CSAP
MOTION:
Council Member Baisden MOVED to approve the agenda and consent agenda with the requested
revisions. Council Member Askin SECONDED the motion.
The items on the Consent Agenda were read into the record.
Vice 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: Motion APPROVED, without objection.
*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
1. Fiscal Year 2023 Audit Report, Joy Merriner, BDO USA, LLP.
Joy Merriner, Assurance Office Managing Partner of BDO USA, LLP reported on the FY23 Audit Wrap-up
Document, providing an overview of the Status of Audit Report; Audit Standards; and summarized the
Annual Comprehensive Financial Report.
C. SCHEDULED PUBLIC COMMENTS - None.
D. UNSCHEDULED PUBLIC COMMENTS
Samantha Springer, Executive Director of the Kenai Chamber of Commerce and Visitor Center noted that
the Visitor Center is currently open seven-days a week; provided an update on current activities; reminded
everyone about that June 8, 2024 is Lemonade Day; and stated they were still in need of volunteers for
events.
Marion Nelson, Board Member of the Kenai Art Center provided an update on ongoing Work Shops;
summarized the Summer Show line-up; and reported that Sandra Lewis was the new Board President.
E. PUBLIC HEARINGS
1. Ordinance No. 3418-2024 - Adopting the Annual Budget, Salary Schedule and Employee
Classification Plan for the Fiscal Year Commencing July 1, 2024 and Ending June 30,
2025 and Committing $4,499,039 of General Fund, Fund Balance for Future Capital
Improvements. (Administration)
MOTION:
Council Member Baisden MOVED to enact Ordinance No. 3418-2024. Council Member Askin
SECONDED the motion.
Vice Mayor Knackstedt opened the floor for public comment.
Page 117
City of Kenai Council Meeting Page 3 of 15
June 5, 2024
Tim Dillon, Central Area Rural Transit System, Board of Directors Vice President addressed the Council
regarding the ability to leverage local funding for additional grants; the operational changes which were
made to improve services; the number one request of CARTS is for weekend service; and that Walmart
in Kenai is the number-one destination.
There being no else one wishing to be heard, the public comment period was closed.
MOTION TO AMEND:
Council Member Douthit MOVED to include funding for radio advertising and amend the Draft FY2025
Annual Budget as follows:
General Fund, Legislative, page 84
Increase Account Number 4534, Advertising by $7,920; and,
General Fund, Non-Departmental, page 110
Increase Account Number 4534, Advertising by $5,832.
For an overall increase of $13,752 to the Draft FY2025 Annual Budget Document.
Council Member Daniel SECONDED the motion to amend.
There was Council discussion regarding a portion or the funds being utilized for advertising the meetings
of the City and Elections and a portion being utilized for other City type events; the importance of getting
information about the City out to the public; and that radio is an important advertising tool.
UNANIMOUS CONSENT was requested on the motion to amend.
VOTE: Motion APPROVED, without objection.
MOTION TO AMEND: (Primary)
Council Member Askin MOVED to include funding of $2,500 for Central Area Rural Transit Systems, Inc.
and amend the FY2025 Annual Budget as follows:
General Fund - Legislative, page 84
Increase Account Number 5047, Grants to Agencies by $2,500; and,
General Fund - Legislative, page 85
Include in 5047 - Grants to Agencies list: Central Area Rural Transit System, Inc. $2,500.
Council Member Daniel SECONDED the motion to amend.
There was discussion regarding the request from Central Area Rural Transit Systems, Inc. being for
$5,000.
MOTION TO AMEND: (Secondary)
Council Member Douthit MOVED to amend the primary amendment and increase the amount of funding
from $2,500 to $5,000. Council Member Daniel SECONDED the secondary motion to amend.
UNANIMOUS CONSENT was requested on the secondary motion to amend.
VOTE: Motion APPROVED, without objection.
UNANIMOUS CONSENT was requested on the primary motion to amend, as amended.
VOTE: Motion APPROVED, without objection.
MOTION TO AMEND:
Council Member Askin MOVED to decrease funding to the Kenai Watershed Forum from $5,000 to
$1,500 and amend the Draft FY2025 Annual Budget as follows:
General Fund, Legislative, page 84
Decrease Account Number 5047, Grants to Agencies by $3,500; and,
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General Fund, Legislative, page 85
Amend in 5047 - Grants to Agencies list: Kenai Watershed Forum [$5,000] $1,500
Council Member Baisden SECONDED the motion to amend.
There was discussion regarding other members of the Kenai Watershed Forum who do not donate; and
consideration regarding the City allowing testing by the Forum at the City Plant.
VOTE ON MOTION TO AMEND:
YEA: Knackstedt, Daniel, Sounart, Baisden, Askin
NAY: Douthit
ABSENT: Gabriel
**Student Representative Tanner: Yea
MOTION TO AMEND PASSED.
MOTION TO AMEND:
Council Member Baisden MOVED to increase the amount of donations received from Senior Connection,
Inc. and amend Ordinance No. 3418-2024 and the Draft FY2025 Annual Budget as follows:
Ordinance 3418-2024:
Section 2, Decrease the General Fund appropriation by $20,000; and,
Draft FY2025 Annual Budget Document:
General Fund - Non-Departmental, page 110
Decrease Account Number 9090, Transfers by $20,000; and,
Senior Citizens Fund - Title III Summary, page 237
Increase Revenue, Donation - Senior Connection, Inc. by $20,000; and,
Decrease Revenue, Transfers from General Fund - Operations by $20,000.
Council Member Askin SECONDED the motion to amend.
UNANIMOUS CONSENT was requested on the motion to amend.
VOTE: Motion APPROVED, without objection.
MOTION TO AMEND:
Council Member Baisden MOVED to increase the range for Fire Captain from 21 to 22, amend Ordinance
3418-2025 and the FY2025 Draft Annual Budget as follows:
Ordinance 3418-2024, Section 5, Cass Code 311 - Fire Captain
Increase the range from 21 to 22; and,
Draft FY2025 Annual Budget Document:
General Fund - Fire, page 132
Increase the Salaries and Benefits section, by 7,483; and,
Draft FY2025 Annual Budget Document:
Increase the Class Code for Fire Captain from range 21 to range 22 throughout the Draft
FY2025 Annual Budget Document accordingly.
Council Member Askin SECONDED the motion to amend.
There was discussion regarding the recent Classification Study done by the City; the difficulty maintain
and keeping employees; and this will keep the City comparable with other nearby governments.
UNANIMOUS CONSENT was requested on the motion to amend.
VOTE: Motion APPROVED, without objection.
MOTION TO AMEND:
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Council Member Baisden MOVED to include qualification pay for Public Safety Dispatchers; adjust
recognition entitlements for Paramedic Certification for eligible Fire Department grades and amend the
FY2025 Annual Budget as follows:
General Fund, Fire, page 132
Increase the Salaries and Benefits Section by an additional $25,504; and,
General Fund, Communications, page 137
Increase the Salaries and Benefit Section by an additional $2,996
For an overall increase of $28,500 to the Draft FY2025 Annual Budget Document.
Council Member Daniel SECONDED the motion to amend.
UNANIMOUS CONSENT was requested on the motion to amend.
VOTE: Motion APPROVED, without objection.
MOTION TO AMEND:
Council Member Baisden MOVED to include funding for a Veterans Columbarium at the Kenai Cemetery
and amend Ordinance No. 3418-2024 and the Draft FY2025 Annual Budget as follows:
Ordinance 3418-2024:
Section 2, Increase the General Fund appropriation by $25,000; and,
Draft FY2025 Annual Budget Document:
General Fund - Non-Departmental, page 110
Increase Account Number 9090, Transfers by $25,000; and,
General Fund - Non-Departmental, page 111
Include in 9090 Transfers list: Veterans Columbarium $25,000; and,
Fund 118- Cemetery Improvement Capital Project Fund, page 284
Increase Revenues, Transfer from General Fund, by $25,000; and,
Increase Expenditures, Current Year Authorizations - Veterans Columbarium by $25,000.
Council Member Askin SECONDED the motion to amend.
UNANIMOUS CONSENT was requested on the motion to amend.
VOTE: Motion APPROVED, without objection.
MOTION TO AMEND:
Council Member Douthit MOVED to reduce the Storefront and Streetscapes Improvement Grant amount
by $20,000 and amend the FY2025 Annual Budget as follows:
General Fund - Land Administration, page 107
Decrease Account Number 5047, Grants to Agencies by $20,000.
Council Member Askin SECONDED the motion to amend.
A summary of the previous two-years of use of the funding was provided in support of the reduction.
UNANIMOUS CONSENT was requested on the motion to amend.
VOTE: Motion APPROVED, without objection.
MOTION TO AMEND:
Council Member Askin MOVED to amend Ordinance 3418-2024 as follows:
Title to read, “Adopting the Annual Budget, Salary Schedule and Employee Classification Plan for
the Fiscal Year Commencing July 1, 2024 and Ending June 30, 2025 and Committing $[4,499,039]
4,451,423 of General Fund, Fund Balance for Future Capital Improvements.”
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Section 2 to read,
“General Fund $ [20,226,392] 20,262,232
Enterprise Fund –
Congregate Housing Fund 793,714
Internal Service Funds:
Equipment Replacement Fund 272,476
Fleet Replacement Fund 93,332
Employee Health Care Fund 3,209,541
Total Internal Service Funds 3,575,349
Special Revenue Funds:
Personal Use Fishery Fund 537,796
Water & Sewer Fund 3,746,439
Airport Fund 3,709,963
Senior Citizen Fund 1,067,727
Total Special Revenue Funds 9,061,925
Permanent Funds:
Airport Land Sale Permanent Fund 1,090,387
General Land Sale Permanent Fund 151,278
Total Permanent Revenue Funds 1,241,665
Capital Project Funds:
Cemetery Improvements 25,000
Park Improvement 150,000
Kenai Senior Center Improvement 50,000
Kenai Public Safety Improvement 150,000
Municipal Roadway Improvement 440,000
Congregate Housing Improvement 215,000
Airport Improvement 125,000
Water & Sewer Improvement 662,000
Water & Sewer vehicle replacements 145,000
Waste Water Treatment Plant Equipment 100,000
Total Capital Project Funds [2,037,000] 2,062,000
Debt Service Fund – Library Expansion Bonds 130,750
Total All Funds $[37,066,795] 37,127,635”
Section 3 to read, “Council hereby commits $[4,499,039] 4,451,423 of Unassigned General Fund,
Fund Balance for future renovations and improvements to City facilities.”
Council Member Baisden SECONDED the motion to amend.
UNANIMOUS CONSENT was requested on the motion to amend.
VOTE: Motion APPROVED, without objection.
VOTE ON MAIN MOTION AS AMENDED:
YEA: Daniel, Sounart, Baisden, Askin, Douthit, Knackstedt
NAY: None
ABSENT: Gabriel
MAIN MOTION AS AMENDED PASSED.
[Clerk’s Note: Due to audio difficulties Student Representative Tanner was unable to vote at times during the
meeting.]
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2. Ordinance No. 3419-2024 - Amending Sections of Kenai Municipal Code Title 23 -
Personnel Regulations, Sections 23.05.070 - Definitions, 23.25.070 - Acting Positions,
23.30.030 - Probationary Period for Employees in the Classified Service, 23.30.110 –
Travel Expense, 23.40.040 - Terminal Leave, 23.55.020 - Compensation Structure by
Grade for Employees in the Classified Service, 23.55.030 - Qualification Pay, and
23.55.080 - Longevity Pay for Employees in the Classified Service, to Ensure Appropriate
Compensation and Benefits to City Employees Comparable to Other Places of Public
Employment Improving Recruitment and Retention of Qualified Employees.
(Administration)
MOTION:
Council Member Baisden MOVED to enact Ordinance No. 3419-2024. Council Member Sounart
SECONDED the motion.
Vice 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:
Council Member Baisden MOVED to amend Ordinance 3419-2024 as follows:
Section 7, Section 23.55.030 - Qualifications Pay to include a new subparagraph (b)(1)(v) to read:
“Recognition pay for qualified Public Safety Dispatcher personnel for employees temporarily
assigned dispatcher training duties for eligible shifts only as follows:
An additional five percent (5%) of the employee’s current range and step.”
Council Member Askin SECONDED the motion to amend.
UNANIMOUS CONSENT was requested on the motion to amend.
VOTE: Motion APPROVED, without objection.
MOTION TO AMEND:
Council Member Baisden MOVED to amend Ordinance 3419-2024 as follows:
Section 7, Section 23.55.030 - Qualifications Pay, paragraph (b)(2)(ii), to read:
“Recognition entitlements for EMT certification for eligible grades of fire fighter, engineer, captain,
Fire Marshal, Deputy Fire Chief, and Fire Chief are as follows:
EMT / EMS [I] Instructor An additional one-half percent (.5%) of step A of the
firefighter range.
EMT III / Advanced Emergency Medical Technician (AEMT)
An additional two and one-quarter percent (2.25%) of step
A of the Firefighter range.
[EMT -] Paramedic An additional [3.75% OF STEP A FIREFIGHTER RANGE
(INCLUDES EMT III PAY)] five percent (5%) the employee’s
current range and step (includes AEMT Pay.”
Council Member Daniel SECONDED the motion to amend.
UNANIMOUS CONSENT was requested on the motion to amend.
VOTE: Motion APPROVED, without objection.
VOTE MAIN MOTION AS AMENDED:
YEA: Sounart, Baisden, Askin, Douthit, Knackstedt, Daniel
NAY: None
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ABSENT: Gabriel
**Student Representative Tanner: Yea
MAIN MOTION AS AMENDED PASSED.
3. Ordinance No. 3420-2024 - Increasing Estimated Revenues and Appropriations in the
General Fund and Municipal Roadway Improvements Capital Fund and Awarding a
Construction Agreement and Corresponding Purchase Order for the 2024 Lilac Lane
Roadway Improvement Project. (Administration)
MOTION:
Council Member Baisden MOVED to enact Ordinance No. 3420-2024. Council Member Douthit
SECONDED the motion.
Vice Mayor Knackstedt opened the floor for public comment. There being no one wishing to be heard,
the public comment period was closed.
It was reported that this project would correct failing portions of Lilac Lane; two bids were received under
the Engineer estimate; and this would allow the City to enter into contract.
VOTE:
YEA: Baisden, Askin, Douthit, Knackstedt, Daniel, Sounart
NAY: None
ABSENT: Gabriel
**Student Representative Tanner: Yea
MOTION PASSED.
4. Resolution No. 2024-19 - Fixing the Rate of Levy of Property Tax for the Fiscal Year
Commencing July 1, 2024 and Ending June 30, 2025. (Administration)
MOTION:
Council Member Askin MOVED to adopt Resolution No. 2024-19. Council Member Sounart SECONDED
the motion.
Vice Mayor Knackstedt opened the floor for public comment. There being no one wishing to be heard,
the public comment period was closed.
It was reported that the mill rate had not changed since Fiscal Year 2015.
UNANIMOUS CONSENT was requested.
VOTE: Motion APPROVED, without objection.
5. Resolution No. 2024-20 - Amending the Comprehensive Schedule of Rates, Charges,
and Fees to Incorporate Changes Included in the FY2025 Budget to Include Adjusting
Airport Fees, Water Fees, Sewer Fees, and Adjusting the Monthly Rental Rates at Vintage
Pointe. (Administration)
MOTION:
Council Member Baisden MOVED to adopt Resolution No. 2024-20. Council Member Daniel
SECONDED the motion.
Vice 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:
Council Member Askin moved to amend the Parks and Recreation Schedule of Rates, Charges and Fees
for the Weights/Cardio/Sauna and Basketball Pickleball sections as follows:
Multipurpose Facility
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hourly rate (reservation) $165.00
Kenai Recreation Center
Weights/Cardio/Sauna - includes weight/cardio room, shower,
sauna and gym. (When using the weight room, must be 16 or older
unless accompanied by guardian)
Day Pass: Adults $5.00
Day Pass: College Students, Veterans & Seniors (55 and older) $2.50
High School Students and younger FREE
[VETERANS AND SENIORS (55 AND OLDER) $2.50]
[ADULT ]10 visit punch card: Adults $40.00
10 visit punch card: College Students, Veterans & Seniors (55 and older) $20.00
[ADULT ]Monthly Pass: Adults $50.00
Monthly Pass: College Student, Veterans & Senior [MONTHLY PASS] (55
and older) $25.00
[BASKETBALL/PICKLEBALL - INCLUDES BASKETBALL GYM AND SHOWERS
ADULTS $3.00
COLLEGE STUDENTS $3.00
HIGH SCHOOL STUDENTS AND YOUNGER FREE
ADULT & COLLEGE STUDENT MONTHLY PASS (ALL AGES) $25.00
GYM PUNCH CARD - 12 VISITS (ALL AGES) $25.00]
City League Basketball (per team) $325.00
Council Member Baisden Seconded the motion to amend.
It was reported that this would establish a standard user fee, regardless of the intended use.
UNANIMOUS CONSENT was requested on the motion to amend.
VOTE: Motion APPROVED, without objection.
MOTION TO AMEND:
Council Member Askin moved to amend the Parks and Recreation Schedule of Rates, Charges and Fees
for the Racquetball & Wallyball Court Rentals section follows:
Racquetball & Wallyball Court Rentals - per hour and includes showers for
participants.
Adult Racquetball or Wallyball $[10.00] 15.00
Racquetball or Wallyball Punch Card (10 hours all ages) $[80.00] 120.00
[ADULT WALLYBALL $12.00
WALLYBALL PUNCH CARD (10 HOURS ALL AGES) $100.00]
Council Member Baisden SECONDED the motion to amend.
It was reported that the fee increase aligned with other facilities.
UNANIMOUS CONSENT was requested on the motion to amend.
VOTE: Motion APPROVED, without objection.
MOTION TO AMEND:
Council Member Askin moved to amend the Parks and Recreation Schedule of Rates, Charges and Fees
for the Facility Rental section follows:
Facility Rental - per hour
Gym $50.00
1/2 Gym $25.00
[NON-PROFIT YOUTH ATHLETIC PROGRAMS FREE]
Council Member Baisden Seconded the motion to amend.
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There was discussion regarding the youth non-profits affected by the proposed amendment; the
proposed amendment would establish that the Recreation Center be managed similarly with the fee
charge to Hockey organizations using ice; that school groups would be charged when transferred to the
Rec Center because the school gym was unavailable; and that user fees collected at the Rec Center only
covered roughly twenty percent of the operational costs.
UNANIMOUS CONSENT was requested on the motion to amend.
VOTE: Motion APPROVED, without objection.
MOTION TO AMEND:
Council Member Askin moved to amend the Parks and Recreation Fee Schedule for
Parks/Gazebos/Gardens - Adopt-A-Bench as follows:
“Adopt-A-Bench (Maintenance [I]included[S].) [B]Bench,
freight, and installation [AND MAINTENANCE. FREIGHT CHARGES
ADDITIONAL] at actual cost.) $[595.00] Actual Costs”
Council Member Baisden SECONDED the motion to amend.
It was reported that the actual cost for a bench, freight and installation exceeds $1000.
UNANIMOUS CONSENT was requested on the motion to amend.
VOTE: Motion APPROVED, without objection.
UNANIMOUS CONSENT was requested on the main motion as amended.
VOTE: Motion APPROVED, without objection.
6. Resolution No. 2024-21 - Authorizing a Budget Transfer in the Airfield Fund, Airport
Department for Amounts in Excess of Budget. (Administration)
MOTION:
Council Member Baisden MOVED to adopt Resolution No. 2024-21. Council Member Douthit
SECONDED the motion.
Vice Mayor Knackstedt opened the floor for public comment. There being no one wishing to be heard,
the public comment period was closed.
It was reported that since the enactment of Ordinance No. 3307-2022 a budget transfers within a fund
may be authorized by the City Manager and this Resolution was not necessary.
MOTION:
Council Member Baisden MOVED to postpone indefinitely Resolution No. 2024-21. Council Member
Daniel SECONDED the motion.
UNANIMOUS CONSENT was requested on the motion to postpone indefinitely.
VOTE: Motion APPROVED, without objection.
7. Resolution No. 2024-22 - Authorizing a Budget Transfer in the Airport Terminal
Improvements Capital Fund, and Awarding a Construction Contract and Corresponding
Purchase Order for the Airport Landscaping Project. (Administration)
MOTION:
Council Member Douthit MOVED to adopt Resolution No. 2024-22. Council Member Daniel SECONDED
the motion.
Vice Mayor Knackstedt opened the floor for public comment. There being no one wishing to be heard,
the public comment period was closed.
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It was reported that this would install shrubbery and rocks completing the landscaping portion of the
Terminal Rehabilitation project; the amount of grass was minimal and due to the costs sprinkler systems
were not included; and current funding is only $10,000 short the other $15,000 is for contingency.
VOTE:
YEA: Askin, Douthit, Knackstedt, Daniel, Sounart
NAY: Baisden
ABSENT: Gabriel
MOTION PASSED.
8. Resolution No. 2024-23 - Authorizing the City Manager to Execute a Lease of Airport
Reserve Lands Between the City of Kenai and D & M Land Company, Limited Liability
Corporation for Lot 9A, Block 5, General Aviation Apron Subdivision No. 5.
(Administration)
MOTION:
Council Member Baisden MOVED to adopt Resolution No. 2024-23. Council Member Douthit
SECONDED the motion.
Vice Mayor Knackstedt opened the floor for public comment.
Duane Bannock representing D & M Land Company addressed the Council regarding the legal
requirements being met for this lease; and stated that the building for the lease associated with the next
Resolution No. 2024-24 is in transit.
There being no one else wishing to be heard, the public comment period was closed.
UNANIMOUS CONSENT was requested.
VOTE: Motion APPROVED, without objection.
9. Resolution No. 2024-24 - Authorizing the City Manager to Execute a Lease of Airport
Reserve Lands Between the City of Kenai and Schilling Rentals, Limited Liability
Corporation for Lot 5A, Block 1, FBO Subdivision 2018 Replat. (Administration)
MOTION:
Council Member Daniel MOVED to adopt Resolution No. 2024-24. Council Member Douthit SECONDED
the motion.
Vice 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.
F. MINUTES
1. *Regular Meeting of May 15, 2024. (City Clerk)
G. UNFINISHED BUSINESS
1. Resolution No. 2024-17 - Renaming Cook Inlet View Drive to Cook Inlet Drive. (Sounart) [On
05/15/24 this item was referred to the Planning and Zoning Commission for recommendation to
Council and postponed to 06/05/24.]
[Clerk’s Note: The motion to adopt Resolution No. 2024-17 was on the floor from the May 15, 2024 City Council
Meeting.]
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Vice Mayor Knackstedt opened the floor for public comment. There being no one wishing to be heard,
the public comment period was closed.
MOTION:
Council Member Sounart MOVED to amend Resolution No. 2024-17 as follows:
Fifth whereas clause to read, “adjacent property owners have provided written support to
changing the street name to Cook Inlet Drive; and”
Seventh whereas clause to read, “the Planning and Zoning Commission during their May [22] 29,
2024 regular meeting recommended Council approve this resolution renaming Cook Inlet View
Drive to Cook Inlet Drive; and”
Council Member Baisden SECONDED the motion to amend.
UNANIMOUS CONSENT was requested on the motion to amend.
VOTE: Motion APPROVED, without objection.
MOTION:
Council Member Sounart MOVED to postpone Resolution No. 2024-17 until the June 19, 2024 City
Council Meeting. Council Member Askin SECONDED the motion to postpone.
UNANIMOUS CONSENT was requested on the motion to postpone.
VOTE: There being no objection; SO ORDERED.
H. NEW BUSINESS
1. *Action/Approval - Bills to be Ratified. (Administration)
Approved by the consent agenda.
2. *Action/Approval - Special Use Permit to Crowley Fuels, LLC for Use of 35,000 Square Feet of
Apron Space at the Kenai Municipal Airport for Aviation Fueling. (Administration)
Approved by the consent agenda.
3. *Action/Approval - Special Use Permit to Empire Airlines, Inc. for Use of 11,250 Square Feet of
Apron Space at the Kenai Municipal Airport for Aircraft Parking. (Administration)
Approved by the consent agenda.
4. *Action/Approval - Special Use Permit to Everts Air Fuel, Inc. for Use of 30,000 Square Feet of
Apron Space at the Kenai Municipal Airport Aircraft Parking. (Administration)
Approved by the consent agenda.
5. *Action/Approval - Fourth Amendment to Agreement for Janitorial Services with Reborn Again
Janitorial Service at the Kenai Municipal Airport. (Administration)
Approved by the consent agenda.
6. *Action/Approval - Special Use Permit to Kenai Aviation Operations, LLC. for Use of 2,714
Square Feet of Apron Space at the Kenai Municipal Airport for Aircraft Parking. (Administration)
Approved by the consent agenda.
7. *Action/Approval - Special Use Permit to United Parcel Service Co., Inc. for Use of 4,000 Square
Feet of Apron Space at the Kenai Municipal Airport for Aircraft Loading and Parking.
(Administration)
Approved by the consent agenda.
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8. *Action/Approval - Confirmation of Mayoral Nomination for a Partial Term Appointment of
Joshua Belter to the Airport Commission. (Gabriel)
Approved by the consent agenda.
9. *Action/Approval - Confirmation of Mayoral Nomination for a Partial Term Appointment of
Samantha Springer to the Beautification Committee. (Gabriel)
Approved by the consent agenda.
10. *Ordinance No. 3421-2023 - Increasing Estimated Revenues and Appropriation in the Kenai City
Airport Snow Removal Equipment, Visitor Center, and Public Safety Capital Project Funds to
Transfer Residual Balance from Completed Projects Back to their Original Funding Sources.
(Administration)
Introduced by the consent agenda and Public Hearing set for June 19, 2024.
11. *Ordinance No. 3422-2023 - Increasing Estimated Revenues and Appropriations in the General
Fund and Public Safety Capital Project Fund for Cost in Excess of Projected Budgeted Amounts
for Fire Department Flooring Replacement Phase 2. (Administration)
Introduced by the consent agenda and Public Hearing set for June 19, 2024.
12. *Ordinance No. 3423-2023 - Increasing Estimated Revenues and Appropriations in the General
Fund and Personal Use Fishery Fund for Annual Transfer from Personal Use Fishery Fund to the
General Fund for Non-Departmental Expenses. (Administration)
Introduced by the consent agenda and Public Hearing set for June 19, 2024.
13. Action/Approval - Airport Commission 2024 Work Plan. (City Clerk)
MOTION:
Council Member Askin MOVED to approve the Airport Commission 2024 Work Plan. Council Member
Douthit SECONDED the motion.
UNANIMOUS CONSENT was requested on the motion.
VOTE: Motion APPROVED, without objection.
14. Action/Approval - Beautification Committee 2024 Work Plan. (City Clerk)
MOTION:
Council Member Daniel MOVED approve the Beautification Committee 2024 Work Plan. Council Member
Douthit SECONDED the motion.
UNANIMOUS CONSENT was requested on the motion.
VOTE: Motion APPROVED, without objection.
15. Discussion - Scheduling a Joint Work Session with the Planning and Zoning Commission on the
Comprehensive Safety Action Plan (CSAP)
A Joint Work Session with the Planning and Zoning Commission was scheduled for June 19, 2024 at
4:30 p.m.
I. COMMISSION / COMMITTEE REPORTS
1. Council on Aging
No report, next meeting June 13, 2024.
2. Airport Commission
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No report, next meeting June 13, 2024.
3. Harbor Commission
No report, next meeting cancelled.
4. Parks and Recreation Commission
No report, next meeting June 6, 2024.
5. Planning and Zoning Commission
Council Member Douthit reported on the May 29, 2024 meeting.
6. Beautification Committee
No report, next meeting September 10, 2024.
J. REPORT OF THE MAYOR
Vice Mayor Knackstedt reported on the following:
• Attending the Ribbon Cutting Ceremony for 5150 Audio.
K. ADMINISTRATION REPORTS
1. City Manager – City Manager Eubank reported on the following:
• June 10, 2024 at 9:00 a.m. Bluff Stabilization Project Ribbon Cutting Ceremony.
• June 10, 2024 at 2:00 p.m. Swearing in of new Police Officer Jonathyn Saravia.
• June 8, 2024 is the Kenai Peninsula Air Fair.
• June 15, 2024 is the Kite Festival.
• Welcomed the new City Building Official Joe Fisher.
• Animal Control Officer Kris Giordano accepted the promotion to Chief Animal Control Officer.
• Fire Chief interviews are being conducted.
• Recruiting for two Senior Center part time drivers.
• Property owner from Toyon Way requested an easement for installation of a retaining wall.
• June 19, 2024 City Council meeting will include a presentation on the Leakage Study Report
from Volaire, the Airport Commission will be invited to attend.
• Thanked staff for their work on the FY2025 Annual Budget
2. City Attorney – City Attorney Bloom reported on the following:
• Provided a summary report on Minor Offense Citations
3. City Clerk – City Clerk Saner reported on the following:
• Thanked the Council for the opportunity to attend the International Institute of Municipal Clerks
Conference in Calgary Canada.
L. ADDITIONAL PUBLIC COMMENTS
1. Citizen Comments (Public comments limited to (5) minutes per speaker)
2. Council Comments
Council Member Douthit noted that the Division of Elections new office at the Kenai Mall was now open.
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City of Kenai Council Meeting Page 15 of 15
June 5, 2024
Council Member Sounart noted that Council Member Askin would be covering for her at the Parks and
Recreation Commission meeting so she could rehearse with the Kenai Peninsula Orchestra who are
back together and doing summer concerts.
Council Member Askin thanked the administration and staff for all the great work on the budget; and
thanked Parks and Recreation Director Best for helping with the amendments to the fee scheduled.
Council Member Daniel thanked the administration and staff for the work on the budget.
Council Member Baisden reported that Kenai Central High School won five individual titles at the Division
II State Invitational Track and Field; the Girls Soccer Team won State; and Coach Verkuilen is retiring
after coaching for 25-years.
M. EXECUTIVE SESSION - None.
N. PENDING ITEMS
O. ADJOURNMENT
P. INFORMATIONAL ITEMS - None.
There being no further business before the Council, the meeting was adjourned at 8:53 p.m.
I certify the above represents accurate minutes of the Kenai City Council meeting of June 5, 2024.
___________________________________
Michelle M. Saner, MMC
City Clerk
** The student representative may cast advisory votes on all matters except those subject to executive
session discussion. Advisory votes shall be cast in the rotation of the official council vote and shall not
affect the outcome of the official council vote. Advisory votes shall be recorded in the minutes. A student
representative may not move or second items during a council meeting.
Page 130
Sponsored by: Sounart
New Text Underlined; [DELETED TEXT BRACKETED]
CITY OF KENAI
RESOLUTION NO. 2024-17
A RESOLUTION RENAMING COOK INLET VIEW DRIVE TO COOK INLET DRIVE.
WHEREAS, Kenai Municipal Code Section 14.15.140 authorizes City Council to name and rename an
existing street or newly established street within City limits upon recommendation from the Planning and
Zoning Commission and after consultation with the Kenai Peninsula Borough (KPB) or any other affected
municipality; and,
WHEREAS, there has been an increase in complaints over the years that the existing street name, Cook
Inlet View Drive, suggests the road has a scenic view, which has resulted in visitors, tourists,
motorhomes, and tour buses/vans driving through the residential neighborhood and on the unimproved
dead-end street that leads to the edge of the bluff; and,
WHEREAS, the removal of “view” from Cook Inlet View Drive would deter visitors, tourists, motorhomes,
and tour buses/vans from driving through the residential neighborhood and lingering at the edge of the
bluff; and,
WHEREAS, the KPB Planning Department has no objection to renaming Cook Inlet View Drive to Cook
Inlet Drive; and,
WHEREAS, adjacent property owners have provided written support to changing the street name to Cook
Inlet Drive; and,
WHEREAS, the street name assignment would not adversely impact 911 navigation; and,
WHEREAS, the Planning and Zoning Commission during their May 29, 2024 regular meeting
recommended Council approve this resolution renaming Cook Inlet View Drive to Cook Inlet Drive; and,
WHEREAS, it is in the best interest of the City of Kenai to rename the street to protect the residential
neighborhood from increased tourist traffic and activities.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA:
Section 1. That Cook Inlet View Drive in the City of Kenai is renamed as Cook Inlet Drive.
Section 2. That this Resolution takes effect immediately upon passage.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 19TH DAY OF JUNE, 2024.
___________________________________
Brian Gabriel Sr., Mayor
ATTEST:
___________________________________
Michelle M. Saner, MMC, City Clerk
Page 131
MEMORANDUM
TO: Mayor Gabriel and Council Members
THROUGH: Terry Eubank, City Manager
FROM: Deborah Sounart, Council Member
DATE: May 9, 2024
SUBJECT: Resolution No. 2024-17 – Street Renaming of Cook Inlet View Drive to
Cook Inlet Drive
This resolution seeks to change the street name of Cook Inlet View Drive to Cook Inlet Drive.
There has been an increase in complaints over the years that the existing street name, Cook Inlet
View Drive, suggests the road has a scenic view, which has resulted in visitors, tourists,
motorhomes, and tour buses/vans driving through the residential neighborhood and on the
unimproved dead-end street, known as 1st NW that leads to the edge of the bluff. The removal of
“view” from Cook Inlet View Drive would these deter visitors and tourists from driving down
through the residential neighborhood on an already busy street and lingering at the edge of the
dangerously eroding bluff.
Pursuant to Kenai Municipal Code Section 14.15.140, City Council may change, rename, or name
an existing street or newly established street within City limits upon recommendation from the
Planning and Zoning Commission and after consultation with the Kenai Peninsula Borough (KPB)
or any other affected municipality.
This resolution will be referred to Planning and Zoning Commission for their recommendation at
their regularly scheduled meeting on May 22, 2024.
With staff’s recommendations, all property owners along Cook Inlet View Drive will be notified of
the proposed street renaming and the scheduled public meetings to provide several opportunities
for submissions of comments. In addition, staff will request for comments from the Public Works
Department, Police Department, Fire Department, and local United States Post Office.
Thank you for your consideration.
Attachment
Aerial Map
Page 132
1
Linda Mitchell
From:Valerie Williams <vaheath@hotmail.com>
Sent:Thursday, May 23, 2024 2:30 PM
To:Planning Department
Subject:Cook Inlet view drive to Cook Inlet drive comment
CAUTION: This email originated from outside your organization. Exercise caution when opening attachments or clicking
links, especially from unknown senders.
I live on wells way, at the end of Cook Inlet view drive. I have so appreciated the concrete barriers and signs placed at
the end of Cook Inlet view drive. It has made a big difference! We still have people going down the bluff with ropes, but
it has cut it down dramatically. It has also seemed to stop the parties that used to be common place.
I believe that changing the name of the road will also help keep people from thinking this is a viewpoint. Changing the
big green road signs on the spur leaving out the word “view” would make a big difference.
Another thing that would help is having a sign beyond the concrete barriers that just says “keep off the bluff”, or maybe
something about no trespassing, erosion control in process. Many people climb down the bluff on ropes not only
causing erosion to city property and my property but it is dangerous and a safety hazard that could cause a serious
injury.
Thank you so much for everything you have done about this issue. It has been appreciated.
Valerie and Wister Williams
1105 Wells Way
Page 134
1
Linda Mitchell
From:Timothy Cole <timberprints@gmail.com>
Sent:Monday, May 27, 2024 3:08 PM
To:Planning Department
Subject:Resolution 2024-17 Testimony, Timothy Cole
CAUTION: This email originated from outside your organization. Exercise caution when opening attachments or clicking links,
especially from unknown senders.
Dear Kenai Planning and Zoning Commission,
I'm writing to you to offer testimony concerning Resolution 2024-17 concerning the change of the street name from Cook Inlet
View Drive to Cook Inlet Drive; omitting the word view.
I am in favor of this resolution. I live and own property on this street and I feel that the word "view" when left in the street
name invites unnecessary traffic into our neighborhood. I feel this is most evident in the summertime when many large RVs
enter the neighborhood and drive to the end of the road expecting a traditional viewpoint with an established parking area,
etc. Instead they find themselves at the end of a road intersecting with the dead-end street Wells Way and with limited room to
turn their often rented RV around. They rarely park the RVs and get out to enjoy the view but rather they too must feel this is
not a viewpoint and that they are congesting a neighborhood.
This neighborhood does have children at play present in all seasons and I feel that changing the name and signage of the street
to Cook Inlet Drive will decrease the amount of traffic experienced in the neighborhood and will improve safety for our
residents, especially the children. Additionally, it's one less word to fit on all the paperwork where we list our address.
I kindly thank you for considering my comments on this resolution.
Sincerely,
Timothy Cole
Kenai Resident
2907 Cook Inlet View Drive
Page 135
1
Linda Mitchell
From:Roxanne Colyer <roxanne@colyerart.com>
Sent:Tuesday, May 28, 2024 5:48 PM
To:Planning Department
Subject:RE: Proposed Resolution 2024-17
CAUTION: This email originated from outside your organization. Exercise caution when opening attachments or clicking
links, especially from unknown senders.
I fully support and encourage the proposed name change of Cook Inlet [View] Drive to Cook Inlet Drive.
Why?
1) The name change will not interfere to any extent with existing mail addresses.
2) Removing the word “View” from the street name will hopefully discourage a percentage of speeding tourists/dip
netters who assume beach access and have little to no respect for the children who feel safe enough to play in their
neighborhood or respect the surrounding personal properties.
3) The word “view” implies a point of access where no safe or legal access exists. The Jersey barriers are already
breached by four wheelers. The bluff continues to erode as the site is used by persons seeking beach access (DOT???
employees staying at the B&B were the latest.)
4) The local Police force and Fish and Game capacities are stretched in June and July. Posting a large, visible “No Beach
Access” sign on the Spur and removing “view” from the street signs may reduce the number of incidents and take some
of the pressure off local authorities.
If you have questions please contact me. roxanne@colyerart.com
Page 136
PAYMENTS OVER $35,000.00 WHICH NEED COUNCIL RATIFICATION
COUNCIL MEETING OF: JUNE 19, 2024
VENDOR DESCRIPTION
PERS PERS
HOMER ELECTRIC ELECTRIC USAGE
INVESTMENTS
VENDOR DESCRIPTION
DEPARTMENT
VARIOUS
VARIOUS
MATURITY DATE
ACCOUNT
LIABILITY
UTILITIES
AMOUNT
AMOUNT
114,543.32
104 ,165.32
Effect. Int
Page 137
MEMORANDUM
TO: Mayor Gabriel and Council Members
THROUGH: Terry Eubank, City Manager
FROM: Derek Ables, Airport Manager
DATE: June 9, 2024
SUBJECT: Action/Approval – Special Use Permit to the State of Alaska, Division of
Forestry for use of 30,000 square feet of apron space at the Kenai
Municipal Airport
The State of Alaska, Division of Forestry is requesting a Special Use Permit for approximately
30,000 square feet for aircraft loading and parking related to firefighting activities. The Special
Use Permit will be effective from May 1, 2024 through July 31,2024.
The Division of Forestry has submitted the Special Use Permit application and paid the fee. They
are current in all fees owed to the City and a current Certificate of Insurance is on file.
The Airport Commission reviewed the application at their regularly scheduled meeting on June
13th, and recommended approval.
Your support for a Special Use Permit to the State of Alaska, Division of Forestry is respectfully
requested.
Page 138
Special Use Permit—DNR/Forestry (Parking) Page 1 of 7
SPECIAL USE PERMIT
The CITY OF KENAI (City) grants to STATE OF ALASKA DEPARTMENT OF
NATURAL RESOURCES/DIVISION OF FORESTRY (Permittee), whose address is
550 W. Seventh Avenue, Suite 1450, Anchorage, AK 99501-3566, a Special Use Permit
to conduct aeronautical and/or aviation-related activities at the Kenai Municipal Airport
subject to the requirements and the conditions set forth below.
1. Premises. Permittee shall have the non-exclusive right to use 30,000 square feet as
described in the attached diagram shown in the attached Exhibit A for the uses identified in
this Permit.
2. Term. The term of this Permit shall be for three months commencing on May 1, 2024,
and ending on July 31, 2024. Regardless of the date of signature, this Permit shall be effective
as of May 1, 2024.
3. Permit Fees. Permittee shall pay the following fees for the privileges extended to
Permittee under this Permit:
A. Permit: Permittee shall pay a monthly fee plus applicable sales tax as follows:
May - June $1,525.00 ($0.61/SF/Year)
July $1,600.00 ($0.64/SF/Year)
B. Proximity Card for Gate Access: In addition to the general permit fee,
Permittee shall pay a deposit of One Hundred Dollars ($100.00) for the use of each
proximity card issued to Permittee by City to allow for gate access to the Airport to
conduct the uses permitted hereunder. City shall refund this deposit to Permittee
when the card is returned to City. City may exercise a right of offset to apply the
deposit to any outstanding balance due to City from Permittee at the termination of
this Permit.
C. Other Fees: City may assess additional fees for aviation or aviation support
activities and uses not defined in this Permit. If a fee has not been established for
those activities or services, a fee will be established by the Airport Manager.
Payment shall be directed to City of Kenai, ATTN: Finance Department, 210 Fidalgo
Avenue, Kenai, AK 99611 and a courtesy notice of payment provided to Airport
Administration at 305 North Willow Street, Suite 200, Kenai, AK 99611. All permit fees
are payable in advance of each month unless otherwise provided. In the event of
delinquency, interest at the rate of 10% per annum, and penalty of 10% shall also be due
(KMC 1.75.010). Interest shall accrue from the date due until the date paid in full. Failure
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Special Use Permit—DNR/Forestry (Parking) Page 2 of 7
to timely make payments is grounds for termination of this Permit. (See ¶ 22, Termination).
4. Use. City authorizes Permittee’s non-exclusive use of the Premises for the
following purpose(s):
Aircraft loading and parking.
NOTE: This permit does not guarantee the exclusive use of the area
identified in Exhibit A. City reserves the right to re-assign Permittee, upon
reasonable notice, to other areas as airport needs may require.
Permittee shall have the right of ingress and egress to the Airport using only designated
gate access locations (which may require a proximity card) for the use of the Premises.
This Permit, and any access rights allowed hereunder, are for Permittee’s use only and may
not be transferred or assigned.
Use of the Premises by Permittee is subject to the reasonable administrative actions of the
City of Kenai for the protection and maintenance of the Premises and of adjacent and
contiguous lands or facilities and is further subject to the following conditions:
Permittee acknowledges that the use granted herein is subject to the Kenai
Municipal Code and municipal regulations governing the Kenai Municipal
Airport and as those laws and regulations may be amended from time to time.
Solicitation of donations or operation of a business or other commercial
enterprise not contemplated by this Permit is prohibited without the written
consent of City.
No person may repair an aircraft, aircraft engine, propeller, or apparatus in
an area of the Airport other than that specifically designated for that purpose
by the Airport Manager or designated representative. The Airport Manager
or designated representative reserves the right to designate reasonable areas
where aircraft owners may perform services on their own aircraft.
5. Airport Operations. Permittee shall ensure that the Permittee, its employees, and
guests, and anyone else acting by, on behalf of, or under the authority of Permittee on the
Airport, that perform any repairs or activities authorized under this Permit act in a manner
that ensures the safety of people and the Airport, the protection of public health and the
environment, and the safety and integrity of the Airport and any premises on the Airport.
Permittee shall employ qualified personnel and maintain equipment sufficient for the
purposes of this provision. The Permittee shall immediately notify City of any condition,
Page 140
Special Use Permit—DNR/Forestry (Parking) Page 3 of 7
problem, malfunction, or other occurrence that threatens the safety of the Airport, the safety
of persons using the Airport, the public health or the environment, or the safety or integrity
of any premises on the Airport.
6. Inspection. The Federal Aviation Administration (FAA) and/or City shall have the
right and authority to inspect, at any time for any purpose whatsoever, the Premises as well
as any and all equipment used by the Permittee under this Permit.
7. Coordination with Airport Management. Permittee shall coordinate all activities
on the Airport with Airport Management, or a designated representative, and shall abide
by all reasonable decisions and directives of the Airport Management regarding general
use of the Airport by Permittee.
8. Radio Transmitting Equipment. Permittee shall discontinue the use of any
machine or device which interferes with any government-operated transmitter, receiver, or
navigation aid until the cause of the interference is eliminated.
9. Insurance. Permittee shall secure and keep in force adequate insurance, as stated
below, to protect City and Permittee. Where specific limits are stated, the limits are the
minimum acceptable limits. If Permittee’s insurance policy contains higher limits, City is
entitled to coverage to the extent of the higher limits.
A. Commercial General Liability insurance, including premises, all operations,
property damage, personal injury and death, broad-form contractual, with a per-
occurrence limit of not less than $1,000,000 combined single limit. The policy must
include an endorsement under which the insurer extends coverage to Permittee’s
fuel handling activities. The policy must name the City as an additional insured.
B. Worker’s compensation insurance with coverage for all employees engaged
in work under this Permit or at the Premises as required by AS 23.30.045. Permittee
is further responsible to provide worker’s compensation insurance for any
subcontractor who directly or indirectly provides services to Permittee under this
Permit.
C. Commercial Automobile Coverage with not less than $1,000,000 combined
single limit per occurrence. This insurance must cover all owned, hired, and non-
owned motor vehicles the Permittee uses on the Airport. The policy must name the
City as an additional insured.
D. All insurance required must meet the following additional requirements:
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Special Use Permit—DNR/Forestry (Parking) Page 4 of 7
i. All policies will be by a company/corporation currently rated “A-”or
better by A.M. Best.
ii. Permittee shall submit to the City proof of continuous insurance
coverage in the form of insurance policies, certificates, endorsements,
or a combination thereof, and signed by a person authorized by the
insurer to bind coverage on its behalf.
iii. Permittee shall request a waiver of subrogation against City from
Permittee’s insurer and the waiver of subrogation, where possible,
shall be provided at no cost to City.
iv. Provide the City with notification at least 30 days before any
termination, cancellation, or material change in insurance coverage of
any policy required hereunder.
v. Evidence of insurance coverage must be submitted to City by May 1,
2024. The effective date of the insurance shall be no later than May
1, 2024.
City may increase the amount or revise the type of required insurance on written demand
without requiring amendments to this Permit. City will base any increase or revision on
reasonable and justifiable grounds. Within two weeks of the written demand, Permittee
shall submit to City evidence of insurance coverage that meets the requirements of the City.
10. Assumption of Risk. Permittee assumes full control and sole responsibility as
between Permittee and City for the activities of Permittee, its personnel, employees, and
persons acting on behalf of or under the authority of the Permittee anywhere on the Airport.
Permittee shall provide all proper safeguards and shall assume all risks incurred in its
activities on and access to the Kenai Municipal Airport and its exercise of the privileges
granted in this Permit.
11. Indemnity, Defend, and Hold Harmless Agreement. Permittee agrees to fully
indemnify, defend, and hold harmless, the City of Kenai, its officers, agents, employees,
and volunteers from and against all actions, damages, costs, liability, claims, losses,
judgments, penalties, and expenses of every type and description, including any fees and/or
costs reasonably incurred by the City’s staff attorneys and outside attorneys and any fees
and expenses incurred in enforcing this provision (hereafter collectively referred to as
“Liabilities”), to which any or all of them may be subjected, to the extent such Liabilities
are caused by or result from any negligent act or omission or willful misconduct of the
Permittee in connection with or arising from or out of Permittee’s activities on or use of
Page 142
Special Use Permit—DNR/Forestry (Parking) Page 5 of 7
the Premises, Permittee’s access to the Kenai Municipal Airport, and/or Permittee’s
exercise of the privileges granted in this Permit. This shall be a continuing obligation and
shall remain in effect after termination of this Permit.
12. Hazardous Substances and Materials. Permittee shall conform and be subject to
the requirements of 14 CFR § 139.321 regarding the handling and storage of hazardous
substances and materials.
13. No Discrimination. Permittee shall not discriminate against any person because of
the person’s race, creed, color national origin, sex, age, or handicap. Permittee recognizes
the right of City to take any action necessary to enforce this requirement of the Permit.
Permittee will furnish services provided under this Permit on a reasonable, and not unjustly
discriminatory, basis to all users of the Airport and shall charge reasonable, and not
unjustly discriminatory, prices for each product or service provided at the Airport.
14. Licenses and Permits. Permittee shall obtain and maintain all required federal,
state, and local licenses, certificates, and other documents required for its operations under
the Permit. Permittee shall provide proof of compliance to City upon request by the City.
15. Compliance with Law/Grant Assurances. This Permit, and Permittee’s activities
conducted under this Permit, is subject to all executive orders, policies and operational
guidelines and all applicable requirements of federal, state, and City statutes, ordinances,
and regulations in effect during the term of this Permit. Further, Permittee shall comply
with all applicable requirements imposed on the Airport by federal law to ensure that the
Airport’s eligibility for federal money or for participation in federal aviation programs is
not jeopardized. This Permit is subordinate to the City’s grant assurances and federal
obligations.
16. No Exclusivity. The privileges granted under this Permit are not exclusive to
Permittee. City has the right to grant to others any right or privilege on the Airport.
17. Assignment. The privileges granted under this Permit are personal to Permittee and
may not be assigned by Permittee.
18. No Joint Venture. City shall not be construed or held to be a partner or joint
venturer of Permittee in the conduct of its business or activities on the Premises or
elsewhere at the Kenai Municipal Airport.
19. No Waiver. Failure to insist upon a strict compliance with the terms, conditions,
and requirements herein contained, or referred to, shall not constitute or be construed as a
waiver or relinquishment of the right to exercise such terms, conditions, or requirements.
Page 143
Special Use Permit—DNR/Forestry (Parking) Page 6 of 7
20. Personality. Permittee shall remove any and all personal property, including all
vehicles, from the Premises at the termination of this Permit (or any renewal thereof).
Personal property placed or used upon the Premises will be removed and/or impounded by
the City, if not removed upon termination of this Permit and when so removed and/or
impounded, such property may be redeemed by the owner thereof only upon the payment
to the City of the costs of removal plus storage charges of $25.00 per day. The City of
Kenai is not responsible for any damage to or theft of any personalty of Permittee or of its
customers.
21. Termination; Default. This Permit may be terminated by either party hereto by
giving 30 days advance written notice to the other party. City may terminate the Permit
immediately, or upon notice shorter than 30 days, to protect public health and safety or due
to a failure of Permittee to comply with condition or term of this Permit which failure
remains uncured after notice by City to Permittee providing Permittee with a reasonable
time period under the circumstances to correct the violation or breach.
22. Landing Fees; Fee Schedule. Timely payment of landing fees and other required
Airport fees is a condition of this Permit and, as such, failure to timely pay landing and
other airport fees is grounds for termination. Without limiting the foregoing, Permittee
shall pay landing fees for aircraft landings as set out in the City’s comprehensive schedule
of rates, charges and fees. Permittee shall make payment within 30 days following the end
of each month and without demand or invoicing from City. Permittee shall also provide
Airport Administration with monthly certified gross take-off weight reports within ten days
following the end of each month for landings for the preceding month. Airport landing
fees shall be paid at the Airport Administration Building, 305 North Willow Street, Suite
200, Kenai, AK 99611.
23. Impoundment. At the discretion of the Airport Manager, City may impound any
aircraft parked on the Premises after termination of this Permit. Impoundment may be
accomplished by affixing a seal to the door of the aircraft or the moving of the aircraft for
impoundment purposes. Inconvenience or damage that may result from such movement
will be at the risk of Permittee. An impoundment fee plus a towage fee shall be charged
on each aircraft impounded. In addition, a daily storage fee shall be charged for each day
the aircraft remains impounded. Any impounded aircraft that is not redeemed within 90
days after impoundment shall be considered abandoned and shall be subject to sale at
public auction. Notice of any auction shall be published. Publication shall be in a
newspaper of general circulation in that area for at least once during each of three
consecutive weeks not more than 30 days nor less than seven days before the time of the
auction.
Page 144
Special Use Permit—DNR/Forestry (Parking) Page 7 of 7
CITY OF KENAI SOA DNR, DIVISION OF FORESTRY
By: By:
Terry Eubank Date Michael Burkhead Date
City Manager Procurement Specialist,
Division of Forestry
ACKNOWLEDGMENTS
STATE OF ALASKA )
) ss.
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this ____ day of _____________, 2024, the foregoing
instrument was acknowledged before me by Terry Eubank, City Manager, of the City of
Kenai, an Alaska municipal corporation, on behalf of the City.
Notary Public for Alaska
My Commission Expires:
STATE OF ALASKA )
) ss.
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this ____ day of ______________, 2024, the foregoing
instrument was acknowledged before me by Michael Burkhead, Procurement Specialist,
DNR/Division of Forestry, on behalf of the State of Alaska.
Notary Public for Alaska
My Commission Expires:
APPROVED AS TO FORM:
Scott M. Bloom, City Attorney
Page 145
MEMORANDUM
TO: Mayor Gabriel and Council Members
THROUGH: Terry Eubank, City Manager
FROM: Derek Ables, Airport Manager
DATE: June 9, 2024
SUBJECT: Action/Approval – Special Use Permit to Echo Lake Meats for use of 20
square feet of terminal space at the Kenai Municipal Airport
Echo Lake Meats is requesting a Special Use Permit for 20 square feet of Airport Terminal space
for a vending machine that will sell meat sticks, jerky, and cheese spread. Echo Lake Meats has
submitted the Special Use Application and paid the $100 application fee. The Special Use Permit
will be effective for 6 months, commencing on July 1, 2024 and ending on December 31, 2024.
The Airport Commission reviewed the application at their regularly scheduled meeting on June
13th, and recommended approval.
Your support for a Special Use Permit to Echo Lake Meats, LLC is respectfully requested.
Page 146
Special Use Permit – Vending Machine Page 1 of 7
SPECIAL USE PERMIT 2024
The CITY OF KENAI (City) grants to Erick Watkins with Echo Lake Meats, LLC
(Permittee), whose address is P.O. Box 2536, Soldotna, AK 99669, a Special Use Permit
(Permit) for a vending machine inside the Kenai Municipal Airport terminal building
subject to the requirements and the conditions set forth below.
1. Premises. Permittee shall have the non-exclusive right to use an area in the terminal
approximately 5 feet by 4 feet in size (20 SF)
2. Term. The term of this Permit shall be for 6 months commencing on July 1, 2024 and
ending on December 31, 2024. Regardless of the date of signature, this Permit shall be
effective as of July 1, 2024.
3. Permit Fees. Permittee shall pay the following fees for the privileges extended to
Permittee under this Permit: In-terminal Concession Certified Activity Report attached.
(Exhibit B)
The semi-annual fee for this permit is $535.00 ($53.50/SF/Year) plus applicable sales
tax.
Payment shall be directed to City of Kenai, ATTN: Finance Department, 210 Fidalgo
Avenue, Kenai, AK 99611 and a courtesy notice of payment provided to Airport
Administration at 305 North Willow Street, Suite 200, Kenai, AK 99611. Failure to timely
make the payment is grounds for termination of this Permit.
4. Use. The use of the Premises by Permittee is for the purpose of placing a vending
kiosk to sell meat and cheese products.
Use of the Premises by Permittee is subject to the reasonable administrative actions of the
City of Kenai for the protection and maintenance of the Premises and of adjacent and
contiguous lands or facilities and is further subject to the following conditions:
Permittee acknowledges that the use granted herein is subject to the Kenai Municipal Code
and municipal regulations governing the Kenai Municipal Airport and as those laws and
regulations may be amended from time to time.
Solicitation of donations or operation of a business or other commercial enterprise not
contemplated by this Permit is prohibited without the written consent of City.
Page 147
Special Use Permit – Vending Machine Page 2 of 7
5. Airport Operations. Permittee shall ensure that the Permittee, its employees, their
guests, and anyone else acting by, on behalf of, or under the authority of Permittee on the
Airport, that perform any repairs or activities authorized under this Permit act in a manner
that ensures the safety of people and the Airport, the protection of public health and the
environment, and the safety and integrity of the Airport and any premises on the Airport.
Permittee shall employ qualified personnel and maintain equipment sufficient for the
purposes of this provision. The Permittee shall immediately notify City of any condition,
problem, malfunction, or other occurrence that threatens the safety of the Airport, the safety
of persons using the Airport, the public health or the environment, or the safety or integrity
of any premises on the Airport.
6. Inspection. The Federal Aviation Administration (FAA) and/or City shall have the
right and authority to inspect, at any time for any purpose whatsoever, the Premises as well
as any and all equipment used by the Permittee under this Permit.
7. Coordination with Airport Management. Permittee shall abide by all reasonable
decisions and directives of the Airport Management regarding general use of the Airport
by Permittee germane to a commercial entity.
8. Insurance. Permittee shall secure and keep in force adequate insurance, as stated
below, to protect City and Permittee. Where specific limits are stated, the limits are the
minimum acceptable limits. If Permittee’s insurance policy contains higher limits, City is
entitled to coverage to the extent of the higher limits.
A. Commercial General Liability insurance, including premises, all operations,
property damage, personal injury and death, broad-form contractual, with a per-
occurrence limit of not less than $1,000,000 combined single limit. The policy must
include an endorsement under which the insurer extends coverage to Permittee’s
fuel handling activities. The policy must name the City as an additional insured.
B. Worker’s compensation insurance with coverage for all employees engaged
in work under this Permit or at the Premises as required by AS 23.30.045. Permittee
is further responsible to provide worker’s compensation insurance for any
subcontractor who directly or indirectly provides services to Permittee under this
Permit.
C. Commercial Automobile Coverage with not less than $1,000,000 combined
single limit per occurrence. This insurance must cover all owned, hired, and non-
owned motor vehicles the Permittee uses on the Airport. The policy must name the
City as an additional insured.
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Special Use Permit – Vending Machine Page 3 of 7
D. All insurance required must meet the following additional requirements:
i. All policies will be by a company/corporation currently rated “A-” or
better by A.M. Best.
ii. Permittee shall submit to the City proof of continuous insurance
coverage in the form of insurance policies, certificates, endorsements,
or a combination thereof, and signed by a person authorized by the
insurer to bind coverage on its behalf.
iii. Permittee shall request a waiver of subrogation against City from
Permittee’s insurer and the waiver of subrogation, where possible,
shall be provided at no cost to City.
iv. Provide the City with notification at least 30 days before any
termination, cancellation, or material change in insurance coverage of
any policy required hereunder.
v. Evidence of insurance coverage must be submitted to City by July 1,
2024. The effective date of the insurance shall be no later than July
1, 2024.
City may increase the amount or revise the type of required insurance on written demand
without requiring amendments to this Permit. City will base any increase or revision on
reasonable and justifiable grounds. Within two weeks of the written demand, Permittee
shall submit to City evidence of insurance coverage that meets the requirements of the City.
9. Assumption of Risk. Permittee assumes full control and sole responsibility as
between Permittee and City for the activities of Permittee, its personnel, employees, and
persons acting on behalf of or under the authority of the Permittee anywhere on the Airport.
Permittee shall provide all proper safeguards and shall assume all risks incurred in its
activities on and access to the Kenai Municipal Airport and its exercise of the privileges
granted in this Permit.
10. Indemnity, Defend, and Hold Harmless Agreement. Permittee agrees to fully
indemnify, defend, and hold harmless, the City of Kenai, its officers, agents, employees,
and volunteers from and against all actions, damages, costs, liability, claims, losses,
judgments, penalties, and expenses of every type and description, including any fees and/or
costs reasonably incurred by the City’s staff attorneys and outside attorneys and any fees
and expenses incurred in enforcing this provision (hereafter collectively referred to as
“Liabilities”), to which any or all of them may be subjected, to the extent such Liabilities
are caused by or result from any negligent act or omission or willful misconduct of the
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Special Use Permit – Vending Machine Page 4 of 7
Permittee in connection with or arising from or out of Permittee’s activities on or use of
the Premises, Permittee’s access to the Kenai Municipal Airport, and/or Permittee’s
exercise of the privileges granted in this Permit. This shall be a continuing obligation and
shall remain in effect after termination of this Permit.
11. No Discrimination. Permittee shall not discriminate against any person because of
the person’s race, creed, color national origin, sex, age, or handicap. Permittee recognizes
the right of City to take any action necessary to enforce this requirement of the Permit.
Permittee will furnish services provided under this Permit on a reasonable, and not unjustly
discriminatory, basis to all users of the Airport and shall charge reasonable, and not
unjustly discriminatory, prices for each product or service provided at the Airport.
12. Licenses and Permits. Permittee shall obtain and maintain all required federal,
state, and local licenses, certificates, and other documents required for its operations under
the Permit. Permittee shall provide proof of compliance to City upon request by the City.
13. Compliance with Law/Grant Assurances. This Permit, and Permittee’s activities
conducted under this Permit, is subject to all executive orders, policies and operational
guidelines and all applicable requirements of federal, state, and City statutes, ordinances,
and regulations in effect during the term of this Permit. Further, Permittee shall comply
with all applicable requirements imposed on the Airport by federal law to ensure that the
Airport’s eligibility for federal money or for participation in federal aviation programs is
not jeopardized. This Permit is subordinate to the City’s grant assurances and federal
obligations.
14. No Exclusivity. The privileges granted under this Permit are not exclusive to
Permittee. City has the right to grant to others any right or privilege on the Airport.
15. Assignment. The privileges granted under this Permit are personal to Permittee and
may not be assigned by Permittee.
16. No Joint Venture. City shall not be construed or held to be a partner or joint
venturer of Permittee in the conduct of its business or activities on the Premises or
elsewhere at the Kenai Municipal Airport.
17. No Waiver. Failure to insist upon a strict compliance with the terms, conditions,
and requirements herein contained, or referred to, shall not constitute or be construed as a
waiver or relinquishment of the right to exercise such terms, conditions, or requirements.
18. Personal Property. Permittee shall remove any and all personal property,
including all vehicles, from the Premises at the termination of this Permit (or any renewal
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Special Use Permit – Vending Machine Page 5 of 7
thereof). Personal property placed or used upon the Premises will be removed and/or
impounded by the City, if not removed upon termination of this Permit and when so
removed and/or impounded, such property may be redeemed by the owner thereof only
upon the payment to the City of the costs of removal plus storage charges of $25 per day.
The City is not responsible for any damage to or theft of any personalty of Permittee or of
its customers.
19. Termination; Default. This Permit may be terminated by either party hereto by
giving fourteen (14) days advance written notice to the other party. City may terminate the
Permit immediately, or upon notice shorter than fourteen (14) days, to protect public health
and safety or due to a failure of Permittee to comply with conditions or terms of this Permit
which failure remains uncured after notice by City to Permittee providing Permittee with a
reasonable time period under the circumstances to correct the violation or breach.
20. Definitions. As used in this Permit, “Permittee” means Erik Watkins with Echo
Lake Meats LLC, and where the context reasonably indicates, its officers, agents, and
employees. “Airport” means the Kenai Municipal Airport.
18. Janitorial and Cleaning Services. Permittee will provide, at its own expense, the
day-to-day janitorial cleaning services and supplies necessary to maintain the premises in
a clean, neat, and sanitary condition.
19. Security. Permittee will adhere to all applicable responsibilities of the federal
airport security program set out in Federal Aviation Regulations Part 107 and the Airport
Master Security Program. Permittee will procure any required identification badges should
it be necessary to access the premises or Permittee’s operations authorized under this
Permit.
20. Smoking. Neither the Permittee employees, nor customers may smoke in or around
the terminal except in designated smoking areas.
21. Employee Parking. Employees may use non-exclusive employee vehicle parking
spaces at no charge. All employees must register their vehicle(s) in the Airport Manager’s
office to receive a vehicle-parking permit to park while on the job. Permittee shall be held
accountable for Permittee’s employees’ use of designated vehicle parking facilities and
assure that employees comply with all Airport directives.
22. Signs. Permittee may, after consent by the Airport Manager, install signs at its
premises identifying its business. Permittee will request the Airport Manager’s advance
written approval before installation of any signage.
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CITY OF KENAI
By:
Terry Eubank Date
Erik Watkins, Echo Lake Meats, LLC
By:
Erik Watkins Date
STATE OF ALASKA )
) ss.
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this ____ day of _____________, 2024, the foregoing
instrument was acknowledged before me by Terry Eubank, City Manager, of the City of
Kenai, an Alaska municipal corporation, on behalf of the City.
________________________________
Notary Public for Alaska
My Commission Expires: ____________
STATE OF ALASKA )
) ss.
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this ____ day of ______________, 2024, the foregoing
instrument was acknowledged before me by Erik Watkins, Owner, Echo Lake Meats, LLC.
________________________________
Notary Public for Alaska
My Commission Expires: ____________
Approved as to form:
Page 152
Special Use Permit – Vending Machine Page 7 of 7
___________________
Scott Bloom
City Attorney
Page 153
MEMORANDUM
TO: Mayor Gabriel and Council Members
THROUGH: Terry Eubank, City Manager
FROM: Derek Ables, Airport Manager
DATE: June 10, 2024
SUBJECT: Action/Approval – Special Use Permit to Kenai Aviation Operations,
LLC for use of 1200 square feet of apron space at the Kenai Municipal
Airport
Kenai Aviation Operations, LLC. is requesting a Special Use Permit for 1,200 square feet for
shipping of fish boxes. Kenai Aviation Operations, LLC has submitted the Special Use Application
and paid the $100 application fee. The Special Use Permit will be effective June 20, 2024 –
September 20, 2024.
Airport Commission reviewed the request at the June 13, 2024 Commission meeting and
recommends Council approval.
Your support for a Special Use Permit to Kenai Aviation Operations, LLC is respectfully requested.
Attachments- SUP
Page 154
Special Use Permit—Kenai Aviation(Fish) Page 1 of 8
SPECIAL USE PERMIT
The CITY OF KENAI (City) grants to Kenai Aviation Operations LLC (Permittee), whose
address is 101 N Willow Street, Kenai, AK 99611, a Special Use Permit to conduct
aeronautical and/or aviation-related activities at the Kenai Municipal Airport subject to the
requirements and the conditions set forth below.
1. Premises. Permittee shall have the non-exclusive right to use 1200 square feet as
described in the attached Exhibit A for the uses identified in this Permit.
2. Term. The term of this Permit shall be for three months commencing on June 20,
2024 and ending on September 20, 2024. Regardless of the date of signature, this Permit shall
be effective as of June 20, 2024.
3. Permit Fees. Permittee shall pay the following fees for the privileges extended to
Permittee under this Permit:
A. Permit: Permittee shall pay a monthly fee plus applicable sales tax as follows:
$64.00 ( $0.64 per square foot/per year)
B. Proximity Card for Gate Access: In addition to the general permit fee,
Permittee shall pay a deposit of one hundred dollars ($100.00) for the use of each
proximity card issued to Permittee by City to allow for gate access to the Airport to
conduct the uses permitted hereunder. City shall refund this deposit to Permittee
when the card is returned to City. City may exercise a right of offset to apply the
deposit to any outstanding balance due to City from Permittee at the termination of
this Permit.
C. Other Fees: City may assess additional fees for aviation or aviation support
activities and uses not defined in this Permit. If a fee has not been established for
those activities or services, a fee will be established by the Airport Manager.
Payment shall be directed to City of Kenai, ATTN: Finance Department, 210 Fidalgo
Avenue, Kenai, AK 99611 and a courtesy notice of payment provided to Airport
Administration at 305 North Willow Street, Suite 200, Kenai, AK 99611. All permit fees
are payable in advance of each month unless otherwise provided. In the event of
delinquency, interest at the rate of ten percent (10%) per annum, and penalty of ten percent
(10%) shall also be due (KMC 1.75.010). Interest shall accrue from the date due until the
date paid in full. Failure to timely make payments is grounds for termination of this Permit.
(See ¶ 22, Termination)
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Special Use Permit—Kenai Aviation(Fish) Page 2 of 8
4. Use. City authorizes Permittee’s non-exclusive use of the Premises for the
following purpose(s):
Shipping fish boxes by aircraft. NOTE: This permit does not guarantee the exclusive use
of the area identified in Exhibit A. City reserves the right to re-assign Permittee, upon
reasonable notice, to other areas as airport needs may require.
Permittee shall have the right of ingress and egress to the Airport using only designated
gate access locations (which may require a proximity card) for the use of the Premises.
This Permit, and any access rights allowed hereunder, are for Permittee’s use only and may
not be transferred or assigned.
Use of the Premises by Permittee is subject to the reasonable administrative actions of the
City of Kenai for the protection and maintenance of the Premises and of adjacent and
contiguous lands or facilities and is further subject to the following conditions:
Permittee acknowledges that the use granted herein is subject to the Kenai Municipal Code
and municipal regulations governing the Kenai Municipal Airport and as those laws and
regulations may be amended from time to time.
Solicitation of donations or operation of a business or other commercial enterprise not
contemplated by this Permit is prohibited without the written consent of City.
No person may repair an aircraft, aircraft engine, propeller, or apparatus in an area of the
Airport other than that specifically designated for that purpose by the Airport Manager or
designated representative. The Airport Manager or designated representative reserves the
right to designate reasonable areas where aircraft owners may perform services on their
own aircraft.
5. Airport Operations. Permittee shall ensure that the Permittee, its employees, and
guests, and anyone else acting by, on behalf of, or under the authority of Permittee on the
Airport, that perform any repairs or activities authorized under this Permit act in a manner
that ensures the safety of people and the Airport, the protection of public health and the
environment, and the safety and integrity of the Airport and any premises on the Airport.
Permittee shall employ qualified personnel and maintain equipment sufficient for the
purposes of this provision. The Permittee shall immediately notify City of any condition,
problem, malfunction, or other occurrence that threatens the safety of the Airport, the safety
of persons using the Airport, the public health or the environment, or the safety or integrity
of any premises on the Airport.
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Special Use Permit—Kenai Aviation(Fish) Page 3 of 8
6. Inspection. The Federal Aviation Administration (FAA) and/or City shall have the
right and authority to inspect, at any time for any purpose whatsoever, the Premises as well
as any and all equipment used by the Permittee under this Permit.
7. Coordination with Airport Management. Permittee shall abide by all reasonable
decisions and directives of the Airport Management regarding general use of the Airport
by Permittee germane to a commercial entity.
8. Radio Transmitting Equipment. Permittee shall discontinue the use of any
machine or device which interferes with any government-operated transmitter, receiver, or
navigation aid until the cause of the interference is eliminated.
9. Insurance. Permittee shall secure and keep in force adequate insurance, as stated
below, to protect City and Permittee. Where specific limits are stated, the limits are the
minimum acceptable limits. If Permittee’s insurance policy contains higher limits, City is
entitled to coverage to the extent of the higher limits.
A. Commercial General Liability insurance, including premises, all operations,
property damage, personal injury and death, broad-form contractual, with a per-
occurrence limit of not less than $1,000,000 combined single limit. The policy must
include an endorsement under which the insurer extends coverage to Permittee’s fuel
handling activities. The policy must name the City as an additional insured.
B. Worker’s compensation insurance with coverage for all employees engaged in
work under this Permit or at the Premises as required by AS 23.30.045. Permittee is
further responsible to provide worker’s compensation insurance for any
subcontractor who directly or indirectly provides services to Permittee under this
Permit.
C. Commercial Automobile Coverage with not less than $1,000,000 combined
single limit per occurrence. This insurance must cover all owned, hired, and non-
owned motor vehicles the Permittee uses on the Airport. The policy must name the
City as an additional insured.
D. All insurance required must meet the following additional requirements:
i. All policies will be by a company/corporation currently rated “A-” or
better by A.M. Best.
ii. Permittee shall submit to the City proof of continuous insurance
coverage in the form of insurance policies, certificates, endorsements,
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Special Use Permit—Kenai Aviation(Fish) Page 4 of 8
or a combination thereof, and signed by a person authorized by the
insurer to bind coverage on its behalf.
iii. Permittee shall request a waiver of subrogation against City from
Permittee’s insurer and the waiver of subrogation, where possible,
shall be provided at no cost to City.
iv. Provide the City with notification at least thirty (30) days before any
termination, cancellation, or material change in insurance coverage of
any policy required hereunder.
v. Evidence of insurance coverage must be submitted to City by June 20,
2024. The effective date of the insurance shall be no later than June
20, 2024.
City may increase the amount or revise the type of required insurance on written demand
without requiring amendments to this Permit. City will base any increase or revision on
reasonable and justifiable grounds. Within two weeks of the written demand, Permittee
shall submit to City evidence of insurance coverage that meets the requirements of the City.
10. Assumption of Risk. Permittee assumes full control and sole responsibility as
between Permittee and City for the activities of Permittee, its personnel, employees, and
persons acting on behalf of or under the authority of the Permittee anywhere on the Airport.
Permittee shall provide all proper safeguards and shall assume all risks incurred in its
activities on and access to the Kenai Municipal Airport and its exercise of the privileges
granted in this Permit.
11. Indemnity, Defend, and Hold Harmless Agreement. Permittee agrees to fully
indemnify, defend, and hold harmless, the City of Kenai, its officers, agents, employees,
and volunteers from and against all actions, damages, costs, liability, claims, losses,
judgments, penalties, and expenses of every type and description, including any fees and/or
costs reasonably incurred by the City’s staff attorneys and outside attorneys and any fees
and expenses incurred in enforcing this provision (hereafter collectively referred to as
“Liabilities”), to which any or all of them may be subjected, to the extent such Liabilities
are caused by or result from any negligent act or omission or willful misconduct of the
Permittee in connection with or arising from or out of Permittee’s activities on or use of
the Premises, Permittee’s access to the Kenai Municipal Airport, and/or Permittee’s
exercise of the privileges granted in this Permit. This shall be a continuing obligation and
shall remain in effect after termination of this Permit.
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Special Use Permit—Kenai Aviation(Fish) Page 5 of 8
12. Fuel Spill Prevention and Response Plan. Areas of the Apron have been seal coated
to protect asphalt from adverse effects of petroleum product spills. The City requires that
Permittee provide adequate absorbent materials and tools available on the Premises and at the
airport in order to maintain a fuel spill and response capability. Permittee shall be liable for
any damage caused by and costs associated with any spill, the cleanup of any spill, or the
discharge of petroleum products or hazardous materials due to Permittee’s use of the Apron
and/or use of the Airport.
Permittee shall provide to City an acceptable fuel spill prevention and response plan and
will maintain fuel spill and response capability. Permittee further agrees to have a copy of
the fuel spill prevention and response plan located in the Permittee’s fuel dispensing
equipment at all times. Permittee must comply with the Airport’s Storm Water Pollution
Prevention Plan as appropriate to Permittee’s activities.
Permittee shall not store any personal property, solid waste, petroleum products, Hazardous
Material as defined by 14 CFR § 171.8, hazardous waste (ignitable, corrosive, reactive, or
toxic) or any hazardous substance on any portion of the Airport. Permittee is aware that
there are significant penalties for improperly disposing of the Hazardous Materials and
other waste and for submitting false information regarding Hazardous Materials, including
the possibility of fine and imprisonment for knowing violations.
Permittee shall immediately remove the material in the event of spillage or dripping of
gasoline, oil, grease, or any other material which may be unsightly or detrimental to the
pavement or surface in or on any area of the Airport.
Permittee may not construct or install any above-ground or underground fuel storage tanks
or dispensing systems at the Airport.
No person shall smoke on an aircraft-parking ramp, inside an aircraft hangar, or within
fifty feet (50’) of any aircraft fuel facility or fuel truck.
Permittee is subject to FAA Advisory Circular 150/5230-4 Aircraft Fuel Storage,
Handling, and Dispensing on Airports, the National Fire Protection Associations’
“Standard for Aircraft Fueling Servicing” in NFPA 407 (1996 version), and the current
version of the International Fire Codes. All inspections of fuel facilities, by City or other
regulating entities to which Permittee is subject, shall be conducted to assure compliance
with the fire safety practices listed in these referenced documents.
13. Hazardous Substances and Materials. Permittee shall conform and be subject to
the requirements of 14 CFR § 139.321 regarding the handling and storage of hazardous
substances and materials.
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Special Use Permit—Kenai Aviation(Fish) Page 6 of 8
14. No Discrimination. Permittee shall not discriminate against any person because of
the person’s race, creed, color national origin, sex, age, or handicap. Permittee recognizes
the right of City to take any action necessary to enforce this requirement of the Permit.
Permittee will furnish services provided under this Permit on a reasonable, and not unjustly
discriminatory, basis to all users of the Airport and shall charge reasonable, and not
unjustly discriminatory, prices for each product or service provided at the Airport.
15. Licenses and Permits. Permittee shall obtain and maintain all required federal,
state, and local licenses, certificates, and other documents required for its operations under
the Permit. Permittee shall provide proof of compliance to City upon request by the City.
16. Compliance with Law/Grant Assurances. This Permit, and Permittee’s activities
conducted under this Permit, is subject to all executive orders, policies and operational
guidelines and all applicable requirements of federal, state, and City statutes, ordinances,
and regulations in effect during the term of this Permit. Further, Permittee shall comply
with all applicable requirements imposed on the Airport by federal law to ensure that the
Airport’s eligibility for federal money or for participation in federal aviation programs is
not jeopardized. This Permit is subordinate to the City’s grant assurances and federal
obligations.
17. No Exclusivity. The privileges granted under this Permit are not exclusive to
Permittee. City has the right to grant to others any right or privilege on the Airport.
18. Assignment. The privileges granted under this Permit are personal to Permittee and
may not be assigned by Permittee.
19. No Joint Venture. City shall not be construed or held to be a partner or joint
venturer of Permittee in the conduct of its business or activities on the Premises or
elsewhere at the Kenai Municipal Airport.
20. No Waiver. Failure to insist upon a strict compliance with the terms, conditions,
and requirements herein contained, or referred to, shall not constitute or be construed as a
waiver or relinquishment of the right to exercise such terms, conditions, or requirements.
21. Personality. Permittee shall remove any and all personal property, including all
vehicles, from the Premises at the termination of this Permit (or any renewal thereof).
Personal property placed or used upon the Premises will be removed and/or impounded by
the City, if not removed upon termination of this Permit and when so removed and/or
impounded, such property may be redeemed by the owner thereof only upon the payment
to the City of the costs of removal plus storage charges of $25.00 per day. The City of
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Special Use Permit—Kenai Aviation(Fish) Page 7 of 8
Kenai is not responsible for any damage to or theft of any personality of Permittee or of its
customers.
22. Termination; Default. This Permit may be terminated by either party hereto by
giving thirty (30) days advance written notice to the other party. City may terminate the
Permit immediately, or upon notice shorter than thirty (30) days, to protect public health
and safety or due to a failure of Permittee to comply with condition or term of this Permit
which failure remains uncured after notice by City to Permittee providing Permittee with a
reasonable time period under the circumstances to correct the violation or breach.
23. Landing Fees; Fee Schedule. Timely payment of landing fees and other required
Airport fees is a condition of this Permit and, as such, failure to timely pay landing and
other airport fees is grounds for termination. Without limiting the foregoing, Permittee
shall pay landing fees for aircraft landings as set out in the City’s comprehensive schedule
of rates, charges and fees. Permittee shall make payment within thirty (30) days following
the end of each month and without demand or invoicing from City. Permittee shall also
provide Airport Administration with monthly certified gross take-off weight reports within
ten (10) days following the end of each month for landings for the preceding month.
Airport landing fees shall be paid at the Airport Administration Building, 305 North
Willow Street, Suite 200, Kenai, AK 99611.
24. Impoundment. At the discretion of the Airport Manager, City may impound any
aircraft parked on the Premises after termination of this Permit. Impoundment may be
accomplished by affixing a seal to the door of the aircraft or the moving of the aircraft for
impoundment purposes. Inconvenience or damage that may result from such movement
will be at the risk of Permittee. An impoundment fee plus a towage fee shall be charged
on each aircraft impounded. In addition, a daily storage fee shall be charged for each day
the aircraft remains impounded. Any impounded aircraft that is not redeemed within ninety
(90) days after impoundment shall be considered abandoned and shall be subject to sale at
public auction. Notice of any auction shall be published. Publication shall be in a
newspaper of general circulation in that area for at least once during each of three (3)
consecutive weeks not more than thirty (30) days nor less than seven (7) days before the
time of the auction.
25. Definitions. As used in this Permit, “Permittee” means Kenai Aviation and where
the context reasonably indicates, its officers, agents, and employees. “Airport” means the
Kenai Municipal Airport.
Page 161
Special Use Permit—Kenai Aviation(Fish) Page 8 of 8
CITY OF KENAI KENAI AVIATION
By: By:
Terry Eubank Date Peter Heinrichsohn Date
City Manager President
ACKNOWLEDGMENTS
STATE OF ALASKA )
) ss.
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this ____ day of _____________, 2024, the foregoing
instrument was acknowledged before me by TERRY EUBANK, City Manager, of the City
of Kenai, an Alaska municipal corporation, on behalf of the City.
Notary Public for Alaska
My Commission Expires:
STATE OF ALASKA )
) ss.
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this ____ day of ______________, 2024, the foregoing
instrument was acknowledged before me by Peter Heinrichsohn, President, on behalf of
Kenai Aviation Operations, LLC.
Notary Public for Alaska
My Commission Expires:
Approved as to Form:
___________________
Scott Bloom
City Attorney
Page 162
MEMORANDUM
TO: Mayor Gabriel and Council Members
THROUGH: Terry Eubank, City Manager
THROUGH: Linda Mitchell, Planning Director
FROM: Brandon McElrea, Planning Technician
DATE: June 6, 2024
SUBJECT: Action/Approval – Special Use Permit to Weaver Brothers, Inc. for Truck
and Trailer Storage
James C. Doyle, Individually, d/b/a Weaver Brothers, Inc. has requested a Special Use Permit
(SUP) for truck and trailer storage on several city-owned parcels (see Exhibits A & B). Weaver
Brothers, Inc. has a SUP for truck and trailer storage set to expire on June 20, 2024. Weaver
Brothers, Inc. has been storing trucks and trailers at 400, 415, 425, 435 Coral Street and 700 First
Avenue under a SUP since June 2020. The other portion located at 410 and 420 Coral Street has
been operating under a SUP since 2023 but previously operated under a lease since 1984.
The Coral Street Airport Zone of the City was most recently appraised at a rate of $0.50 per
square foot. The total square footage of the combined area is 162,982 square feet (3.74 acres).
The annual permit fee will be $7,156.51 and includes the Consumer Price Index (CPI)
adjustments to date. The indicated lot area is based on the recorded plats with the exception of
the portions, which used the calculated areas in the survey dated 8/17/2020 (Exhibit B).
Below is a breakdown of the calculations by parcel.
Address Legal Description Parcel
ID Acres Square
Footage (SF)
400 Coral Street Portion of Tract C-1, Gusty Sub No. 7 4327034 0.09 3,754
410 Coral Street Tract A of Gusty Sub No. 3 4327021 1.38 60,113
415 Coral Street Lot 3, Block 3 Gusty Sub No. 4 4327032 0.86 37,500
420 Coral Street Tract B of Gusty Sub No. 6 Amended 4327035 0.37 15,924
425 Coral Street Lot 2, Block 3 Gusty Sub No. 4 4327031 0.46 20,000
435 Coral Street Lot 1, Block 3 Gusty Sub No. 4 4327030 0.23 10,050
700 First venue Portion of Lot 4, Block 2 Gusty Sub
Addition No. 1 Amended 4327036 0.36 15,641
Total 3.74 162,982
City of Kenai I 210 ~idalgo Ave , Kenai , AK 99611-7794 I 907.283.7535 I www.kenai .city
Page 163
Page 2 of 2
Permit Fee = (8% of Market Rate) (Appraised Rate) (SF) (CPI)
= (8%) ($0.50) (162,982 SF) (2022 CPI 8.11%) (2023 CPI 1.54%)
= $7,156.51
The SUP is requested for one-year from June 21, 2024 to June 20, 2025. Weaver Brothers, Inc.
is in compliance with their current SUP. The proposed SUP meets the intent of Chapter 21.10
Leasing and Acquisition of Airport Reserve Lands, Section .025 Special Use Permits in parking
and temporary cargo staging and handling. There are no permanent improvements on the
premises.
The parcels and portions of parcels are within the Airport Light Industrial (ALI) Zone, Airport
Reserve, and Runway Protection Zone (RPZ). Pursuant to the requirements of the Federal
Aviation Administration, the City would reserve the right to cancel this SUP with a 90-day notice.
If the City Council approves the Special Use Permit, the City Manager will be authorized to
execute the Special Use Permit Agreement for truck and trailer storage for 12 months to Weaver
Brothers, Inc.
Thank you for your consideration.
Attachment
Application
Exhibit A – Map of subject Parcels
Exhibit B – Map of Portions of Parcels
The City of Kenai I www.kenai.city
Page 164
N
EXHIBIT A
Special Use Permit (SUP)
Truck Trailer Storage
400, 410, 415, 420, 425, 435 Coral Street
and 700 First Avenue
Map for Reference Only
NOT A LEGAL DOCUMENT
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Page 166
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Page 167
MEMORANDUM
TO: Mayor Gabriel and Council Members
THROUGH: Terry Eubank, City Manager
THROUGH: Linda Mitchell, Planning Director
FROM: Brandon McElrea, Planning Technician
DATE: June 6, 2024
SUBJECT: Action/Approval – Special Use Permit for Kenai Chamber of Commerce
and Visitor Center for the Moosemeat John Cabin
The Kenai Chamber of Commerce and Visitor Center (KCCVC) has requested a Special Use
Permit to use and operate the Moosemeat John Cabin located on approximately 10,000 square
feet (100 feet x 100 feet) of Lot 1, Gusty Subdivision No. 8, where the KCCVC is located. Since
2013, the KCCVC has allowed the use of the Moosemeat John Cabin during the summer months
by the Kenai Historical Society in conjunction with its operations in Old Town Kenai. The Kenai
Chamber of Commerce operated on the premises from 1977 until 2012. In 2012, the Kenai
Chamber of Commerce merged with the Kenai Convention and Visitor’s Bureau to form the new
entity, “Kenai Chamber of Commerce and Visitor Center”.
A Special Use Permit (SUP) was granted for the use of the Moosemeat John Cabin for 12 months
from July 31, 2023 to July 30, 2024. The KCCVC would like a SUP for the same use of the
Moosemeat John Cabin from July 31, 2024 to July 30, 2025. The KCCVC complied with the terms
of the SUP for the Moosemeat John Cabin for previous years of issuance.
If the City Council approves the Special Use Permit, the City Manager will be authorized to
execute the Special Use Permit Agreement for the continued use of the cabin for 12 months to
Kenai Chamber of Commerce and Visitor Center.
Thank you for your consideration.
Attachments
Application
Aerial Map
City of Kenai I 210 ~idalgo Ave, Kenai , AK 99611-7794 I 907.283.7535 I www.kenai.cily
Page 168
X City of Kenai
Specia l Use Permit
Application Ki;NAI Application Date : 6/4/2024
Applicant Information
Name of Applicant: Kenai Chamber of Commerce & Visitor Center
Mailing Address: 114 71 Kenai Spur Hwy City : Kenai State: AK Zip Code: 99611
Phone Number(s): Home Phone: ( ) Wor'Af Message Phone: ( )9072831991
E-mail: (Optional) info@kenaichamber.org
Name to Appear on Permit: Kenai Chamber of Commerce & V isito r Center
Mailing Address: 11471 Kenai Spur Hwy City: Kenai State: AK Zip Code: 9961 1
Phone Number(s): Home Phone: ( ) Work/ Message Phone: ( )9072831991
E-mail: (Optional)
Type of Applicant: 0 lndi\idual (at least 18 years of age) O Partnership !iii Corporation O Govern ment
0 Limi'.ed Liability Company (LLC) 0 Other
Property Information
Legal or physical description of the property:
Southeast 100'x100' portion of lot 1, Gusty Subdivision, Add ition No. 8
Description of the proposed business or activity intende d : Moose Meat John Cabin
Is the area to be used in front of or immediately adj acent to any established business offering
th e same or similar nroducts or services upon a fi xed location? D YES Ii NO
Would the use under this permit interfere with other businesses through excessive noise ,
odor, or other nui sances? DYES Ii NO
If you answered yes to any of the above questions, please explai n :
What is the term requested (not lo exceed one year)? July 30, 2024-July 30, 2025
Requested Starting Dale: July 30, 2024
Signature : , r}(-}-_o Date: 6/4/24
Prin t Name: Samantha Springer Title: Executive Director
For City Use Only: Dale Application Fee Received :
O General Fund □ Airport Reserve land City Council Action/Resolution:
□,Airport Fund □ Outsile Airport Reserve Account Number:
Page 169
MEMORANDUM
TO: Mayor Gabriel and Council Members
THROUGH: Terry Eubank, City Manager
THROUGH: Linda Mitchell, Planning Director
FROM: Brandon McElrea, Planning Technician
DATE: June 6, 2024
SUBJECT: Action/Approval – Special Use Permit for Shane Morgan for Sheet Pile
Storage
Shane Morgan has requested a Special Use Permit (SUP) of an approximately 1,400 square foot
portion of the City owned parcel described as Tract B, Kenai Bluff Stabilization Subdivision for
sheet piling storage. The purpose of the sheet piling storage is to stage the sheet pile for the
installation of a seawall, in an attempt to minimize the eroding bluff. The storage of the sheet pile
will be adjacent to the applicant’s property and the following properties, described as Lots 9-12A,
Block 6, of Redoubt Terrace Subdivision Addition No. 3. The approximate storage location and
area are shown on Exhibits A & B, provided by the applicant.
In the interest of preserving the stability of the eroding bluff, as well as the short term of requested
use, the City and the applicant have agreed that the City will collect no fees from the proposed
SUP. During the transportation of the sheet piling, the applicant has agreed to not disturb the
protected vegetated dunes. While the sheet piling is being stored, the applicant has agreed to
erect a barrier surrounding the storage area for public safety.
The requested term is three (3) months twenty-nine (29) days, from July 3, 2024 to November 1,
2024, during which time the sheet piling will be installed. Pursuant to Kenai Municipal Code
Section 22.05.130 Special Use Permits, the proposed use is compatible with the Conservation
Zone intent to preserve open areas and watersheds. The only improvements on the premises are
other installed seawalls and this is strictly limited to temporary storage.
The subject parcel encompasses 7.8 acres along the north beach near the City water treatment
plant and is zoned Conservation (C). It is comprised of steep bluff, beach sand dunes, and beach.
Access is possible from the stairs at the end of South Forest Drive, as well as from the beach.
The applicant will be required to coordinate with the City to ensure no disruption affects City
functions and operations.
City of Kenai I 210 ~idalgo Ave , Kenai , AK 99611-7794 I 907.283.7535 I www.kenai .city
Page 171
Page 2 of 2
If the City Council approves the Special Use Permit, the City Manager will be authorized to
execute the Special Use Permit Agreement for sheet piling storage for three (3) months twenty-
nine (29) days to Shane Morgan.
Thank you for your consideration.
Attachments
Application
Exhibit A – Map of Proposed Area of Use
Exhibit B – Plat Map with Proposed Area of Use
The City of Kenai I www.kenai.city
Page 172
Exhibit A
Page 174
Exhibit B
Page 175
KENAI AIRPORT COMMISSION – REGULAR MEETING
MAY 9,2024 – 6:00 P.M.
KENAI CITY COUNCIL CHAMBERS
210 FIDALGO AVE., KENAI, AK 99611
CHAIR GLENDA FEEKEN, PRESIDING
Airport Commission Meeting Page 1 of 5
May 9, 2024
ACTION MINUTES
A. CALL TO ORDER
A Regular Meeting of the Airport Commission was held on May 9, 2024, in the Kenai City Council
Chambers, Kenai, AK. Chair Feeken called the meeting to order at approximately 6:00 p.m.
1. Pledge of Allegiance
Chair Feeken led those assembled in the Pledge of Allegiance.
2. Roll Call
There were present:
Glenda Feeken, Chair Paul Minelga, Vice Chair
James Bielefeld Jacob Caldwell
James Zirul Daniel Knesek
A quorum was present.
Also in attendance were:
Derek Ables, Airport Manager
Sarah Conley, Airport Administrative Assistant
Shellie Saner, City Clerk
Scott Bloom, City Attorney
Deborah Sounart, City Council Member
3. Agenda Approval
Chair Feeken noted that staff had requested items F.5. and F.6. be moved to the front of New Business
on the agenda, along with the following additions to the packet:
Add Item F.11 Discussion/Recommendation – Recommending Council Award a
Special Use Permit to Kenai Aviation, LLC for 2,714 Square Feet of
Apron Space for Aircraft Parking.
• Memo
• Application
• Exhibit A
• Special Use Permit
MOTION:
Commissioner Bielefeld MOVED to approve the agenda as revised. Vice Chair Minelga SECONDED
the motion.
VOTE: There being no objection; SO ORDERED.
B. SCHEDULED PUBLIC COMMENTS
1. Scott Bloom, Contracts – Leases and Special Use Permits
Page 176
Airport Commission Meeting Page 2 of 5
May 9, 2024
City Attorney Bloom gave a presentation on the City’s standard contract forms for leases and special use
permits on airport land.
C. UNSCHEDULED PUBLIC COMMENTS - None.
D. APPROVAL OF MINUTES
1. April 4, 2024
MOTION:
Vice Chair Minelga MOVED to approve the April 4, 2024 Airport Commission minutes. Commissioner
Bielefeld SECONDED the motion.
VOTE: There being no objection; SO ORDERED.
E. UNFINISHED BUSINESS – None.
F. NEW BUSINESS
5. Discussion/Recommendation – Recommending Council Approve a Lease of Airport Reserve
Land for Property Described as Lot 5A, Block 1, FBO Subdivision 2018 Replat to Schilling Rentals,
LLC.
MOTION:
Commissioner Bielefeld MOVED to recommend City Council approve a lease of Airport Reserve Land to
Schilling Rentals, LLC. Commissioner Zirul SECONDED the motion.
Airport Manager Ables gave a staff report from information provided in the packet.
UNANIMOUS CONSENT was requested on the motion.
VOTE: There being no objection; SO ORDERED.
6. Discussion/Recommendation – Recommending Council Approve a Lease of Airport Reserve
Land for the Property Described as Lot 9A, Block 5, General Aviation Apron Subdivision No. 5 to
D & M Land Company, LLC.
MOTION:
Commissioner Bielefeld MOVED to recommend City Council approve a lease of Airport Reserve Land to
D & M Land Company, LLC. Commissioner Zirul SECONDED the motion.
Airport Manager Ables gave a staff report from information provided in the packet.
UNANIMOUS CONSENT was requested on the motion.
VOTE: There being no objection; SO ORDERED.
1. Discussion/Recommendation - Recommendation to Council on Enactment of Ordinance No.
3415-2024 - Authorizing a Donation of Surplus Sand from the Kenai Municipal Airport to the
Triumvirate Theatre for the Construction of a New Theatre.
MOTION:
Commissioner Caldwell MOVED to recommend City Council enact Ordinance No. 3415-2024.
Commissioner Bielefeld SECONDED the motion.
Clarification was provided on why the sand was not suitable for use at the airport.
UNANIMOUS CONSENT was requested on the motion.
VOTE: There being no objection; SO ORDERED.
Page 177
Airport Commission Meeting Page 3 of 5
May 9, 2024
2. Discussion/Recommendation - Recommendation to Council on Enactment of Ordinance No.
3416-2024 - An Ordinance Repealing, Reenacting and Renaming Kenai Municipal Code Chapter
1.90 - Standard Procedures For Boards, Commissions and Committees, Enacting Chapter 1.95 -
Standing Advisory Commissions, Repealing Chapters 11.10 - Harbor Commission, Chapter 19.05
Parks And Recreation Commission, Chapter 21.20 Airport Commission, Enacting Section
14.05.050 - Planning and Zoning Commission - Qualifications and Membership, and Approving
Amendments to the Council on Aging Commission’s By-Laws to Organize Streamline, and
Improve the Efficiency of the City’s Standing Commissions.
MOTION:
Commissioner Bielefeld MOVED to recommend City Council enact Ordinance No. 3416-2024.
Commissioner Caldwell SECONDED the motion.
City Clerk Saner summarized the report as provided in the packet, noting that the proposed new code
had substantial structural changes; however, the intent of the Commission’s March recommendation
remained in the new code. Further clarification was provided on designated seats for membership.
UNANIMOUS CONSENT was requested on the motion.
VOTE: There being no objection; SO ORDERED.
3. Discussion/Recommendation – Recommending Council Approve the Fourth Amendment,
Extending the Reborn Again Janitorial Contract in the Airport Terminal for One Additional Year.
MOTION:
Vice Chair Minelga MOVED to recommend City Council approve the Fourth Amendment to agreement
for janitorial services with Reborn Again Janitorial. Commissioner Knesek SECONDED the motion.
Airport Manager Ables gave a staff report from information provided in the packet.
UNANIMOUS CONSENT was requested on the motion.
VOTE: There being no objection; SO ORDERED.
4. Discussion/Recommendation – Recommending Council Approve Airport Commission 2024
Annual Work Plan.
MOTION:
Vice Chair Minelga MOVED to recommend City Council approval of Airport Commission 2024 Work Plan
as discussed during the work session prior to the meeting. Commissioner Caldwell SECONDED the
motion.
Airport Manager Ables thanked the Commission for their work developing the plan. Support was
expressed for moving forward with the work plan.
Vice Chair Minelga clarified that Goal #1 had been reworded so the language reflected the previous
version.
UNANIMOUS CONSENT was requested on the motion.
VOTE: There being no objection; SO ORDERED.
7. Discussion/Recommendation – Recommending Council Award a Special Use Permit to
Crowley Fuels LLC for 35,000 Square Feet of Apron Space.
MOTION:
Vice Chair Minelga MOVED to recommend City Council award a Special Use Permit to Crowley Fuels
LLC. Commissioner Caldwell SECONDED the motion.
Airport Manager Ables gave a staff report from information provided in the packet.
Page 178
Airport Commission Meeting Page 4 of 5
May 9, 2024
UNANIMOUS CONSENT was requested on the motion.
VOTE: There being no objection; SO ORDERED.
8. Discussion/Recommendation – Recommending Council Award a Special Use Permit to United
Parcel Service Co., Inc. for 4,000 Square Feet of Apron Space for Aircraft Loading and Parking.
MOTION:
Vice Chair Minelga MOVED to recommend City Council approval of Award a Special Use Permit to United
Parcel Service Co., Inc. Commissioner Bielefeld SECONDED the motion.
Airport Manager Ables gave a staff report from information provided in the packet.
UNANIMOUS CONSENT was requested on the motion.
VOTE: There being no objection; SO ORDERED.
9. Discussion/Recommendation – Recommending Council Award a Special Use Permit to Empire
Airlines, Inc. for 11,250 Square Feet of Apron Space for Aircraft Parking.
MOTION:
Commissioner Bielefeld MOVED to recommend City Council award a Special Use Permit to Empire
Airlines, Inc. Vice Chair Minelga SECONDED the motion.
Airport Manager Ables gave a staff report from information provided in the packet.
UNANIMOUS CONSENT was requested on the motion.
VOTE: There being no objection; SO ORDERED.
10. Discussion/Recommendation – Recommending Council Award a Special Use Permit to Everts
Air Fuel, Inc. for 30,000 Square Feet of Apron Space.
MOTION:
Commissioner Caldwell MOVED to recommend City Council award a Special Use Permit to Everts Air
Fuel, Inc. Commissioner Bielefeld SECONDED the motion.
Airport Manager Ables gave a staff report from information provided in the packet.
UNANIMOUS CONSENT was requested on the motion.
VOTE: There being no objection; SO ORDERED.
11. Discussion/Recommendation – Recommending Council Award a Special Use Permit to Kenai
Aviation, LLC for 2,714 Square Feet of Apron Space for Aircraft Parking.
MOTION:
Commissioner Zirul MOVED to recommend City Council award a Special Use Permit to Kenai Aviation,
LLC. Commissioner Knesek SECONDED the motion.
Airport Manager Ables gave a staff report from information provided in the packet.
Commissioner Caldwell clarified that he is one of the owners on this LLC and abstained from voting.
UNANIMOUS CONSENT was requested on the motion.
VOTE: There being no objection; SO ORDERED.
MOTION:
Commissioner Bielefeld NOMINATED Paul Minelga to attend the June 5, 2024 City Council Meeting for
the purpose of representing the recommendation of the majority of the Airport Commission regarding the
Airport Commission 2024 Work Plan. Commissioner Caldwell SECONDED the motion.
Page 179
Airport Commission Meeting Page 5 of 5
May 9, 2024
UNANIMOUS CONSENT was requested on the motion.
VOTE: There being no objection; SO ORDERED.
G. REPORTS
1. Airport Manager – Airport Manager Ables gave a report from information provided in the packet.
2. Commission Chair – No report.
3. City Council Liaison – Council Member Sounart reported on recent actions of the City Council.
H. ADDITIONAL PUBLIC COMMENTS – None.
I. NEXT MEETING ATTENDANCE NOTIFICATION – June 13, 2024
J. COMMISSION QUESTIONS AND COMMENTS
Commissioner Daniel Knesek introduced himself and he was welcomed by the Commission.
Joshua Daily was thanked for his service to the Commission.
K. ADJOURNMENT
L. INFORMATIONAL ITEMS
1. Airport Administrative Report
There being no further business before the Airport Commission, the meeting was adjourned at 7:05 p.m.
I certify the above represents accurate minutes of the Airport Commission meeting of May 9, 2024.
___________________________________
Meghan Thibodeau
Deputy City Clerk
Page 180
r
A. CALL TO ORDER
KENAI PLANNING & ZONING COMMISSION
REGULAR MEETING
MAY 29, 2024-7:00 P.M.
KENAI CITY COUNCIL CHAMBERS
210 FIDALGO AVE., KENAI, AK 99611
CHAIR PRO TEM JEFF TWAIT, PRESIDING
MINUTES
A Regular Meeting of the Kenai Planning & Zoning Commission was held on May 29, 2024, in City Hall
Council Chambers, Kenai, AK. Commissioner Twait called the meeting to order at approximately 7:00
p.m.
As no presiding officer was present, an election of Chair Pro Tern was requested.
MOTION:
Commissioner Pettey NOMINATED Commissioner Twait to be Chair Pro Tern for the meeting.
VOTE: There being no objection; SO ORDERED.
1. Pledge of Allegiance
Chair Pro Tern Twait led those assembled in the Pledge of Allegiance.
2. Roll Call
There were present:
Jeff Twait
Glenese Pettey
Gwen Woodard
A quorum was present.
Absent:
Joe Halstead, Chair
Also in attendance were:
Linda Mitchell, Planning Director
Diane Fikes
Sonja Barbaza
John Coston, Vice Chair
Alex Douthit, City Council Liaison
Meghan Thibodeau, Deputy City Clerk
3. Approval of Agenda and Consent Agenda
Chair Pro Tern Twait noted the following additions to the Packet:
Add Item H. 1. Action/Approval -Resolution No. 2024-17
• Public Comments
MOTION:
Commissioner Woodard MOVED to approve the agenda and consent agenda with the requested
revisions. Commissioner Pettey SECONDED the motion.
The items on the Consent Agenda were read into the record.
Chair Pro Tern Twait opened the floor for public comment on consent agenda items.
Planning & Zoning Commission Meeting
May 29, 2024
Page 1 of 5
Page 181
Council Member Deborah Sounart explained that she sponsored Council Resolution No . 2024-17 after
hearing feedback from constituents in the affected area.
There being no one else wishing to be heard, the public comment period was closed.
UNANIMOUS CONSENT was requested.
There being no objection; SO ORDERED.
*All items listed with an asterisk(*) are considered to be routine and non-controversial by the Commission
and will be approved by one motion. There will be no separate discussion of these items unless a
Commission 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. APPROVAL OF MINUTES
1. *Regular Meeting of May 8, 2024
Approved by the consent agenda.
C. SCHEDULED PUBLIC COMMENTS -None.
D. UNSCHEDULED PUBLIC COMMENTS -None.
E. CONSIDERATION OF PLATS
1. Resolution No. PZ2024-10 -Recommending Approval on Preliminary Plat -Thompson
Park 2024 Replat for a Replat of Lots 14, 15, 16, and 17, Block 5 of Thompson Park
Subdivision within the Suburban Residential (RS) Zoning District.
MOTION:
Commissioner Woodard MOVED to approve Resolution PZ2024-10. Commissioner Pettey SECONDED
the motion.
Director Mitchell gave a staff report as provided in the packet, and explained that the replat would merge
four lots into two lots. Staffs findings were reviewed, and it was noted that staff's recommendation is
approval.
Clarification was provided that the merged parcels would have one address each.
VOTE:
YEA: Pettey, Barbaza, Woodard, Twait, Fikes
NAY: None
ABSENT: Halstead, Coston
MOTION PASSED WITHOUT OBJECTION.
2. Resolution No. PZ2024-11 -Recommending Approval on Preliminary Plat -Shoreline
Heights 2014 Addition Phase 1 Bowlin Replat to Replat Lots 34 and 35 of Shoreline Heights
2014 Addition Phase 1 within the Rural Residential (RR) Zoning District.
MOTION:
Commissioner Woodard MOVED to approve Resolution PZ2024-11 . Commissioner Barbaza
SECONDED the motion.
Director Mitchell gave a staff report as provided in the packet, and explained that the replat would merge
two lots into one lot. Staffs findings were reviewed, and it was noted that staff's recommendation is
approval.
Planning & Zoning Commission Meeting
May 29, 2024
Page 2 of 5
Page 182
Jason Young noted he was the applicant representing the land owners , and that he was available for
questions.
VOTE:
YEA: Fikes, Twait, Woodard, Barbaza, Pettey
NAY: None
ABSENT: Halstead, Coston
MOTION PASSED WITHOUT OBJECTION.
F. PUBLIC HEARINGS
1. Resolution No. PZ2024-12 -Granting a Conditional Use Permit Amendment for a Retail
Marijuana Store Within the Existing Marijuana Cultivation Facility (PZ2021-44) on the
Property Described as Lot 1 of Yragui Subdivision, Located at 8847 Kenai Spur Highway
within the General Commercial (CG) Zoning District.
MOTION:
Commissioner Woodard MOVED to approve Resolution PZ2024-12. Commissioner Pettey SECONDED
the motion.
Director Mitchell presented her staff report with information provided in the packet, and explained that
the applicant had requested an amendment to their conditional use permit (CUP) for a marijuana
cultivation facility to allow for a portion of the facility to be used as a retail marijuana store. The criteria
for CUPs were reviewed; it was noted that the existing CUP had previously received one complaint, which
was researched by staff and AMCO and determined to be unfounded. Mitchell explained that the
application met the CUP criteria and City staff recommends approval subject to the following condition:
1. Any development or use of the property shall comply with all applicable Federal, State of Alaska,
and City regulations regardless of whether or not the requirements are listed as conditions for the
approval of the Conditional Use Permit.
Nicholas Mann, applicant and current cultivation license holder, stated that he had not yet begun the
AMCO application as he was waiting for CUP approval, and noted that he was open to questions.
In response to questions from the Commission, Mann clarified the hours and days of retail store
operation; that he had changed his intent for the business to include retail after finding that standalone
cultivation may not be profitable enough; that he had learned when applying for his cultivation facility
license that the City's CUP process should be approved prior to AMCO's review process; AMCO security
requirements; and that marijuana delivery was not currently legal. Director Mitchell explained the City's
process for reviewing AMCO applications, and clarified that City code limits hours of retail operation,
prohibits marijuana drive-through operations, and had recently been amended to expand noticing of
marijuana establishments to a minimum of 30 neighboring property owners.
Chair Pro Tern Twait opened the floor for public hearing; there being no one wishing to be heard, the
public hearing period was closed.
Clarification was provided that amending the CUP to include retail would not change parking
requirements. Sign requirements and lighting were discussed, and it was noted that because this site
may be challenging for signage and a variance may be needed in the future. Mitchell noted that she had
received no feedback from neighboring properties.
VOTE:
YEA: Twait, Pettey, Fikes
NAY: Woodard, Barbaza
ABSENT: Halstead, Coston
MOTION PASSED.
Chair Pro Tern Twait noted the 15-day appeal period.
Planning & Zoning Commission Meeting
May 29, 2024
Page 3 of 5
Page 183
G. UNFINISHED BUSINESS -None.
H. NEW BUSINESS
1. Action/Approval -Resolution No. 2024-17 -Recommending Approval on the Street
Renaming of Cook Inlet View Drive to Cook Inlet Drive.
Approved by the consent agenda.
2. Action/Approval -Approving the Transfer of a Conditional Use Permits PZ1989-06 for
Guide Service, PZ1995-01 for Bed and Breakfast, and 1PZ2003-42 for Lodging on the
Property Described as Lot 29, Block 1 of Anglers Acres Subdivision Part 2, Located at 1535
Angler Drive within the Rural Residential (RR) Zoning District.
MOTION:
Commissioner Fikes MOVED to approve the transfer of a Conditional Use Permits PZ1989-06, PZ1995-
01 and PZ2003-42. Commissioner Woodard SECONDED the motion.
Director Mitchell presented her staff report with information provided in the packet; she reviewed the
history of CUPs granted to the property and explained that the transfer would be within the family and
would be operated in the same way as it had been since 2003.
Applicant Brittany Harding explained that she was the third generation within her family to operate this
business, and noted that she was available for questions.
In response to questions from the Commission, Harding clarified plan for parking and traffic, and that
occupants with RVs may be allowed on a case-by-case basis.
VOTE:
YEA: Barbaza, Pettey, Woodard, Fikes, Twait
NAY : None
ABSENT: Halstead, Coston
MOTION PASSED WITHOUT OBJECTION.
I. REPORTS
1. Planning Director -Planning Director Mitchell reported on the following:
• Safe Streets for All Survey to close in 2 days.
• New City Building Official starts June 3rd .
• Several CUPs and plats are in process for upcoming meetings.
• Reviewed KMC 14 .05 .025 Remote Electronic Participation at Planning and Zoning
Commission Meetings, including what items a commissioner joining remotely can and
cannot participate in and why.
• Introduced Brandon McElrea, Planning Technician.
• Storefront & Streetscape Improvement Grant period is closed, award letters to be issued
within the week.
2 . Commission Chair -No report.
3. Kenai Peninsula Borough Planning -Commissioner Fikes reported on recent actions of the
Kenai Peninsula Borough Planning Commission .
4 . City Council Liaison -Council Member Douthit reported on recent actions of the City Council.
J. ADDITIONAL PUBLIC COMMENT
Planning & Zoning Commission Meeting
May 29 . 2024
Page 4 of 5
Page 184
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Terry Eubank, City Manager
FROM: Derek Ables, Airport Manager
DATE: June 9, 2024
SUBJECT: Airport Mid-month Report May 2024
TSA Security Inspection – The airport underwent its annual Transportation Security Inspection on
May 8th. This comprehensive review included the following key activities:
Inspection and Updates of the Airport Security Plan: The existing Airport Security Plan was
meticulously examined, and necessary updates were made to ensure it meets current security
standards and regulations.
Perimeter Check: A thorough inspection of the airport’s perimeter was conducted to identify and
address any potential security vulnerabilities.
Records Inspection: Various security-related records were scrutinized to ensure compliance
with regulatory requirements and to verify that all security measures are properly documented.
Response Time Evaluation by KPD: The response times of the KPD were assessed to ensure
they meet the required standards for prompt and effective action in case of security incidents.
Land Use Inspection- The FAA conducted a land use inspection at Kenai Municipal Airport to
ensure compliance with federal regulations and grant assurances related to the proper utilization
of airport property. This inspection focused on verifying adherence to grant terms, assessing
safety and security standards, evaluating efficient land use for aviation purposes, reviewing lease
and property management practices, and ensuring public accessibility.
Retirement- On May 30th the airport hosted a retirement party` for the Airport Operations
Supervisor Jim Lackey celebrating his contributions and achievements. The event brought
together colleagues, friends, and family to honor his dedication and service to the airport. It was
a memorable occasion, filled with shared memories, and expressions of gratitude, reflecting the
strong sense of community and camaraderie among the airport staff. We also welcomed Mike
Beals into this role who has been an Airport Operations Specialist in Kenai.
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Airport Mid-Month Report
Page 2 of 2
Post-Season Snow and Ice Control Meeting- On May 7th the airport held its post season snow
and ice control meeting. Stakeholders and employees were invited to come together to share
their thoughts on the season. The meeting is a way to address concerns, talk about the
successes, and make corrections for the next year.
.
Page 187
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Terry Eubanks, City Manager
THROUGH: Dave Ross, Police Chief
FROM: Kris Giordano, Animal Control Chief
DATE: June 4th, 2024
SUBJECT: May 2024 Monthly Report
This month the Kenai Animal Shelter took in 50 animals. Animal intake and disposition:
DOGS:
INTAKE 16 DISPOSITION 18
Waiver 9 Adopted 5
Stray 4 Euthanized 2
Impound 1 Claimed 10
Protective Custody 0 Field Release 1
Quarantine 1 Transferred 1
Other Intakes 0 Other Dispositions 0
CATS:
INTAKE 34 DISPOSITION 18
Waiver 10 Adopted 13
Stray 7 Euthanized 2
Impound 0 Claimed 3
Protective Custody 3 Field Release 0
Quarantine 0 Transferred 0
Other Intakes 0 Other Dispositions 0
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3 Animal dropped with After Hours (days we are closed but cleaning and with KPD)
13 Field Investigations & patrols
14 Volunteer Hours Logged
1 Citations
0 Educational Outreach
0 Microchip
Total Animal Contacts:
30 Animals are known borough animals
39 Animals are known City of Kenai
4 Animals are known City of Soldotna
0 Animals are unknown location
Statistical Data:
164 2022 YTD Intakes
231 2023 YTD Intakes
198 2024 YTD Intakes
OTHER ANIMALS:
INTAKE 0 DISPOSITION 0
Guinea Pig 0 Rabbit 0
Rabbit 0 Bird 0
Other 0 Guinea Pig 0
DOA: 3 OTHER STATISTICS:
Dog 1 Licenses (City of Kenai Dog Licenses) 22
Cat 2 Rabies Clinic 41
Rabbit 0
Page 189
MEMORANDUM
TO: Mayor Gabriel and Council Members
THROUGH: Terry Eubank, City Manager
FROM: Dave Swarner, Finance Director
DATE: June 7, 2024
SUBJECT: Finance Department Mid-Month Report – May 2024
With the passage of the FY25 Budget at the June 5th Council Meeting, the department has been
making changes and compiling the document for printing. The document is expected to be
available for distribution the week of the 17th. The Department will be preparing for all the
personnel changes approved in the budget to include, changes in classifications, CIP
adjustments, and incentive pays.
Then the Department’s will switch it’s focus to closing FY24 and preparing of the City’s Annual
Comprehensive Financial Report. This process includes closing of the FY24 financial records,
fiscal year end grant reporting and finally financial statement preparation.
The Cyber Security Audit is nearing completion an should receive the initial draft within the next
two weeks.
The 2024 Personal Use Fishery is quickly approaching and we will be working to assist Parks and
Recreation staff to train seasonal employees to work in the dipnet shacks. We have been working
closely with our software programmer to update the shack attendant software and to update the
dipnet app.
Page 190
MEMORANDUM
TO: Mayor Gabriel and Council Members
THROUGH: Terry Eubank, City Manager
FROM: John Harris, Deputy Chief (Acting Fire Chief)
DATE: June 11, 2024
SUBJECT: Fire Department Mid-Month Report – May
For May, we experienced a -7.1% call volume decrease from the previous year. This was a
departure from our annual call volume increase of 5.3%. During the month of May, the Kenai Fire
Department experienced eleven (11) incidents of multiple calls in which at least two (2) rescue
units were engaged in simultaneous emergency responses.
May 2023 2024 % change
Month totals 112 104 -7.1%
EMS 86 81 -5.8%
All Other 26 23 -11.5%
Year total 599 631 5.3%
Training:
• DC Harris conducted ARFF Hot Drills (live fire training) for all KFD members over the
course of four (4) days (5/6, 5/7, 5/15, 5/16).
• “B” shift engaged in E-2 training (drafting scenarios), in which FF Garrick Martin
completed his check off process for E-2.
• All KFD members engaged in aerial apparatus training (T-1).
• All testing for the new firefighter position was completed on 5/17. Ultimately, Ruth
Nelson was selected for the position.
Projects/Grants:
• KFD members participated in three separate Station Tours, involving forty-five (45)
children of various ages.
• A Car Seat Event was held at KFD Station One on 5/23. This was in conjunction with
Brad Nelson (Safe Kids – Kenai Peninsula).
Page 191
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Terry Eubank, City Manager
FROM: Stephanie Randall, Human Resources Director
DATE: June 3, 2024
SUBJECT: Human Resources Activity – May 2024
Recruitment
Human Resources continued working with the City Manager’s office to interview candidates for
the Fire Chief position. Two applicants were brought onsite for a second interview. The Police
Department successfully recruited for a Chief Animal Officer and two Dispatchers and the Airport
successfully recruited for an Airport Operations Specialist. Twenty-seven positions were offered
and accepted for temporary summer hires in the Parks and Recreation Department and Police
departments.
Safety
There were no accidents reported in May.
Special Projects
Human Resources and the City Manager visited each City department to share the results amd
recommendations of the Classification and Compensation Study with employees, and to offer
them a chance to provide feedback.
Human Resources and Administration met with the City’s new Benefits’ Consultant, Parker Smith
& Feek for a discovery meeting. In the coming months, Human Resources will work with the
Consultant and Administration to develop a communications plan to provide benefits information
to employees.
Page 192
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Terry Eubank, City Manager
FROM: Katja Wolfe, Library Director
DATE: June 6, 2024
SUBJECT: Library Report for May
CIRCULATION
PROGRAMS AND EVENTS
268
37
3
21
125
0-5
6-11
12-18
19 and up
All ages
SERVICES
5055 Visitors
62 New Members
531 Computer Sessions
480 AWE Sessions
5843 WiFi Sessions
118 Room Reservations
245 Hours of Use
476 Participants
38 Programs
Program Attendance
5300 1356
1917 196
127
PRINT DVD DIGITAL OTHER AUDIO
5611
6822 70361576
1683 1917
2022 2023 2024
Physical Checkouts May Digital Checkouts May
Page 193
MEMORANDUM
TO: Mayor Gabriel and Council Members
THROUGH: Terry Eubank, City Manager
FROM: Tyler Best, Parks and Recreation Director
DATE: June 10th
SUBJECT: Mid-Month Report-May
The Kenai Recreation Facility gymnasium, wall yball, and racquetball courts have been refinished.
The facility is now open for its regular summer hours, Monday through Saturday, 8 am-10 pm.
During May, the Parks and Recreation Department, in partnership with the Kenai Chamber, held
a cleanup day on May 11th. Parks and Recreation provided bags, trash grabbers, and snacks for
volunteers. It was windy, rainy, and cold, but there were enough volunteers to fill up two truckloads
of garbage. The friends of the Kenai Community Library could not attend the official day but got
grabbers and trash bags from the department and cleaned up some parks the Sunday following
the event, where another truckload of garbage was picked up!
Parks and Recreation have almost filled all of its summer hire positions. The seasonal hires who
have already started are outstanding and are working hard to keep Kenai safe and beautiful.
Kenai Rec. Center Visits-May
Weight Room/Cardio Room 1135
Racquetball 27
Wallyball 86
Shower/Sauna 13
Gymnasium 930
Other 0
Gym Rental Visits 180
Total Number of Visits 2371
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The courts were sanded down and repainted, and 2 coats of finish were put on.
A volunteer picking up trash, and the Parks Director handed out supplies
on the trash pickup day
Page 195
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Terry Eubank, City Manager
THROUGH: Linda Mitchell, Planning Director
FROM: Beth McDonald, Planning Assistant
DATE: June 11, 2024
SUBJECT: Planning and Zoning – May 2024 Monthly Report
General Information
• Storefront & Streetscape Improvement Program (SSIP) Grant Application period closed
on Friday, May 17, 2024 at 5 PM. The City received four (4) applications but one (1)
application did not meeting the program eligibility due to the property location.
• A joint work session with City Council has been scheduled for June 19th at 4:30 PM on the
Comprehensive Safety Action Plan (CSAP), which will be presented by R&M Consultants.
Public Inquiry
See attached report.
Application Summary
• Lands - See attached report.
• Leases – See attached report.
• Planning & Zoning – See attached report.
Code Enforcement and Compliance
In May, Planning and Zoning received twelve (12) new complaints, with four (4) of the complaints
on the same property and issue. Two (2) complaints were active cases and one (1) case was
closed. There is a cumulative total of 30 open cases.
Planning assisted Police Department on coordinating towing service for the motorhome off Bridge
Access Road.
Due to other priorities, the implementation of the code enforcement solution was temporarily
placed on-hold. It is now anticipated a go-live date during the first week of July 2024.
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Planning and Zoning Commission
Two (2) public meetings were held in the month of May with the following
actions/recommendations.
o Resolution PZ2024-08 - Granted a Conditional Use Permit to Two (2) Six-Unit Apartment
Buildings on the Property Located at 2150 Redoubt Avenue within the Rural Residential
(RR) Zoning District.
o Resolution PZ2024-09 - Granted an Encroachment Permit for a Residential Detached
Accessory Structure to Encroach into the Required (West) Side Yard Setback on the
Property Located at 3018 Bree Avenue within the Rural Residential (RR) Zoning District.
o Resolution PZ2024-10 – Recommended Approval on Preliminary Plat – Thompson Park
2024 Replat for a Replat of Lots 14, 15, 16, and 17, Block 5 of Thompson Park Subdivision
within the Suburban Residential (RS) Zoning District.
o Resolution PZ2024-11 - Recommended Approval on Preliminary Plat – Shoreline Heights
2014 Addition Phase 1 Bowlin Replat to Replat Lots 34 and 35 of Shoreline Heights 2014
Addition Phase 1 within the Rural Residential (RR) Zoning District.
o Resolution PZ2024-12 - Granted a Conditional Use Permit Amendment for a Retail
Marijuana Store Within the Existing Marijuana Cultivation Facility (PZ2021-44) on the
Property Described as Lot 1 of Yragui Subdivision, Located at 8847 Kenai Spur Highway
within the General Commercial (CG) Zoning District.
o Action/Approval – Recommended Approval of a Lease of Airport Reserve Land for the
Property Described as Lot 9A, Block 5, General Aviation Apron Subdivision No. 5.
o Action/Approval – Recommended Approval of a Lease of Airport Reserve Land for the
Property Described as Lot 5A, Block 1, FBO Subdivision 2018 Replat.
o Discussion/Recommendation – Recommended Approval to Council on Enactment of
Ordinance No. 3416-2024 - An Ordinance Repealing, Reenacting and Renaming Kenai
Municipal Code Chapter 1.90 - Standard Procedures For Boards, Commissions and
Committees, Enacting Chapter 1.95 - Standing Advisory Commissions, Repealing
Chapters 11.10 - Harbor Commission, Chapter 19.05 Parks And Recreation Commission,
Chapter 21.20 Airport Commission, Enacting Section 14.05.050 - Planning and Zoning
Commission - Qualifications and Membership, and Approving Amendments to the Council
on Aging Commission’s By-Laws to Organize Streamline, and Improve the Efficiency of
the City’s Standing Commissions.
o Action/Approval – Resolution No. 2024-17 - Recommended Approval on the Street
Renaming of Cook Inlet View Drive to Cook Inlet Drive.
o Action/Approval – Approved the Transfer of a Conditional Use Permits PZ1989-06 for
Guide Service, PZ1995-01 for Bed and Breakfast, and PZ2003-42 for Lodging on the
Property Described as Lot 29, Block 1 of Anglers Acres Subdivision.
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Page 201
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Terry Eubank, City Manager
FROM: David Ross, Police Chief
DATE: June 6, 2024
SUBJECT: Police & Communications Department Activity – May 2024
Police handled 526 calls for service in May and 225 calls were received by dispatch via 911.
Officers made 38 arrests. Traffic enforcement resulted in 254 traffic contacts with 44 traffic
citations issued and there were 10 DUI arrests. There were 10 reported motor vehicle collisions
in May.
The newest officer has started at KPD and will be sworn in on June 10th. He is currently in field
training. The Department has filled two vacant dispatch positions and both individuals are set to
start in June. One Temporary Enforcement Officers (TEO) started in May and the other four are
set to start in June.
The School Resource Officer (SRO) conducted bike rodeos at both Kaleidoscope and Mountain
View Elementary. He conducted a DARE graduation at Kaleidoscope. This year will complete
Investigator Dan Smith’s time as the School Resource Officer, where he has done an outstanding
job since 2016 and has been instrumental in helping train the next SRO, Investigator Josh Hall.
KPD’s new SRO spent a week at SRO school in Oregon. One officer spent three days at a
surveillance class in Anchorage. One officer spent two weeks at SWAT training in Fairbanks.
One officer spent three days at a Street Crimes class in Wasilla. The chief spent four days at a
class covering station feasibility studies and designs, in Arizona.
2802
1254
2542
1218
2220
1130
0
1000
2000
3000
Total Police Service Calls 911 Calls Received
2022(Jan 1 - May 31)2023(Jan 1 - May 31)2024(Jan 1 - May 31)
Page 202
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Terry Eubank, City Manager
FROM: Scott Curtin, Public Works Director
DATE: June 2024
SUBJECT: Mid-Month Report; Public Works / Capital Projects
Airport Fund Projects:
• Kenai Municipal Airport Runway Rehabilitation Project – Currently in Preconstruction Design
Phase, with HDL Engineering Consultants currently under contract at a total to date cost of
$1,081,589. This project known as Task 4 within HDL Engineering Consultants LLC term
service agreement will provide bid ready construction documents to rehabilitate Runway
2L/20R as well as Taxiways A/B/C/D/E/K/L/M under a second construction phase. Work is
currently between 35% & 65% design effort. On April 1, 2024 the City received the
Environmental Investigation Report conducted by Shannon & Wilson. On May 20th, 2024 a
microsoft teams meeting was held in coordination with DEC representatives where the
environmental report was reviewed. On a good note the water and soil sampling conducted
at the airport did not find PFAS above actionable levels. It was requested by DEC to conduct
additional sampling in several ditchline locations to determine if any restrictions would be
necessary within those areas. The additional samplng work will take place during the summer
months. The project continues toward a grant application in 2025 and dependent upon timing
of receipt of grant funds ground breaking may not be until spring 2026 for the runway and
2027 for the taxiway.
• Kenai Municipal Airport (KMA) Terminal Landscaping Project – Construction contract
documents are currently being circulated for signature. Moore’s Landscaping was the
successful bidder at a total contract amount of $94,733 as approved by Council on June 5th,
2024 through passage of Resolution 2024-22. Earthscape LLC provided the landscape
design at a cost of $28,255 and has completed their contracted efforts. Construction will take
place throughout the summer months. Fund raising for the bronze bears will continue and will
complement the work if and when they become available.
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Public Works Mid-Month Report
• Kenai Municipal Airport (KMA) Operations Building HVAC Controls Upgrade & Boiler
Replacement Project – Currently entering construction bid phase. This project will replace
existing mechanical equipment including boilers, pumps and controls that have reached the
end of their intended life cycle. Project was not originally started as being grant eligible,
however after coordinations with Airport Managers past and present as well as our FAA
counterparts, the project is now grant eliglible at a 65% FAA and 35% City of Kenai financial
cost share. Project design documents are completed. Grant applications our in process, and
once funding is in place the project will be released for bids anticipated within the next 60
days.
• Kenai Municipal Airport (KMA) Apron Crack Seal and Seal Coat Project – Currently awaiting
grant funding to enter construction bid phase. HDL Engineering Consultants currently
contracted at a total of $121,730 in support of the project, is now finalizing the construction
bid documents. The project is awaiting FAA receipt of their anticipated cost share funding
which may be delayed until late summer. Project may be delayed until early spring 2025 for
construction bid release with spring/summer 2025 construction. Map below defines the
anticipated project area.
• Kenai Municipal Airport (KMA) Master Plan Update – Currently entering the design phase.
The City received word from the Federal Aviation Administration that grant funds are now
available and final grant application forms are now being executed. Phase 1 work will
continue over the next year. HDL Engineering Consultants initial contract to date will be
$727,445. Airport Master Plans are typically updated approximately every ten years to
clearly communicate the direction of the airport. Completion of this work allows the City to
continue to coordinate and receive federal grant funds in support of airport operations.
General Fund Projects:
• USACE Kenai Bluff Bank Stabilization Project – Currently in the construction phase. This
project encompasses approximately 5000 lineal feet of coastal bluff starting at the mouth of
the Kenai river extending upriver along the northern river bank. The bluff in this area varies
from 55’-70’ above the toe. A protective armored rock berm with a crest elevation of
approximately 12’ in height is planned. The Design and Bid phases have now concluded and
Construction is anticipated to continue through the 2024 & 2025 construction seasons.
Milestones to date listed below.
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Public Works Mid-Month Report
o This project was formally released through USACE for Construction Bids on 11/29/23 with
a Pre-Bid Meeting conducted on 12/12/23.
o On February 7th, 2024 the City received word from USACE that Western Marine
Construction Inc, based out of Seattle, Washington was awarded a construction contract
for $19,321,000 as a firm fixed price. There is an additional construction element related
to an inspection path that was requested, by the City and our design team, to be included
within the project. That element will cost $864,000 and will be funded 100% by the City.
The larger amount has a 90/10 cost share split with the City share costing $1,932,100 +
$864,000 for a total anticipated City share of $2,796,100, USACE total cost share of
$17,388,900.
o Western Marine Construction Inc was provided a Notice to Proceed on February 20, 2024.
o Ground Breaking Ceremony scheduled with USACE for June 11, 2024
o Diagram below is from the current set of drawings and represents a typical section of the
revetment.
o The Initial Construction Kick-off Meeting took place in Anchorage on March 28, 2024.
Project submittals and RFIs have not started. Contractor currently is not anticipated to
mobilize to the site until spring 2025.
o Rock Production is now underway in Sand Point, AK.
o Formal Ribbon Cutting Ceremony was well attended on June 10th, 2024.
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Public Works Mid-Month Report
• Community Wildfire Prevention Plan (CWPP) Mitigation Project Phase One – Currently in
closeout. This is Phase One of our mitigation efforts. Doug Koch Professional Tree Service
was contracted with the City on February 28, 2023 in the amount of $282,000 to mitigate 105
acres within the no name creek drainage extending from Redoubt Avenue down to the City’s
North Beach through Municipal Park. To date the project has completed and invoiced
$246,264.45 of work. The project has proceeded well and was completed on time and on
budget. There is a significant amount of beetle kill trees that have been brought out to the
edge of the right of way along Float Plane Rd. which is available for public use firewood.
• Multi-purpose Facility Project – Design documents have now been completed and were
received on May 30, 2024. MBA Consulting Engineers have completed their work at a total
cost of $30,580. Design work covers ventilation, lighting, bleacher radiant heating. Currently
project estimates exceed budgeted amounts. The department is coordinating with the
administration on next steps. We will likely be bidding the ventilation and radiant heating
components later this summer, with additional fund raising to complete the lighting portions of
the project.
• Cemetery Expansion – Currently back in design phase. This project is located at the corner
of First Ave and Float Plane Rd and will provide for additional burial space as the existing
adjacent cemetery has reached capacity. The Public Works Department using in house
personnel has already cleared, leveled and graded the site, and placed and compacted gravel
sub-base for the parking area. Staff has successfully surveyed in 64 adult plot sites and 12
infant plot sites. These sites are available through the Clerk’s office. Cemetery Phase 2
Fencing was released for bids on July 26th with bids due on August 9th. AAA Fence, Inc was
the successful bidder at a cost of $147,595, their contract was fully executed on September
8, 2023. All fencing materials have now been installed, final closeout docs received and final
invoices paid. Staff is coordinating with Parks and Rec and the design team to finalize parking
lot paving as well as HEA power being brought into the property. Paving is anticipated to take
place in the summer 2024.
• Softball Shelter Dugouts – Larsen Engineering has been awarded the design work for the
dugouts. Design requirements are being discussed with the engineer, however this project
is moving slowly as staff and engineer are heavily involved in other projects. Project will
move forward shortly as staff time becomes available. Parks & Rec Director and Public
Works Director had phone conference with design engineer on April 30th. Draft plans were
received on May 30, 2024, final comments are expected to be incorporated prior to June 30,
2024 after which time the project will be released for construction bids.
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Public Works Mid-Month Report
• Lilac Ln. Roadway Improvements Project – Construction contract documents are routing for
final signatures as of June 12th. To date Nelson Engineering has completed their design
efforts at a total cost of $38,840. Peninsula Construction, the successful bidder at a total cost
of $637,765, as approved by council on June 5th through passage of Ordinance 3420-2024.
Construction mobilization is anticipated for the week of June 24th with work expected to
continue through the summer months. Map below highlights the project area.
• Cemetery Creek Culvert Replacement – Currently on hold in design phase awaiting grant
funding. RFP was released on 8/8/23 for Professional Civil Engineering and CA Services to
develop 35% design documents for this project. Proposals are due on 8/28/23. This project
is in coordination with the US Fish & Wildlife. Work involves replacement of several aging
culverts with fish passage type culverts. 35% design documents will be used to apply for
grant funding. Two proposals were received by the Department with PND Engineer’s
receiving the highest scoring proposal at a total cost of $29,577. PND is now under contract.
9/28/23 a site meet was conducted with PND, City staff, & US Fish & Wildlife to discuss and
review the project. 10/11/23-10/12/23 surveyors are on site developing an existing conditions
field survey. Coordination with the USFW on grant funding opportunities is underway. On
November 13, 2023 staff received the draft Hydrologic and Hydraulic (H&H) Report from PND
Engineers. On December 1, 2023 the complete draft 35% design documents were received.
On December 8, 2023 meeting with USFW, Engineering team and PW staff was held to
review the documents. USFW have requested some additional information to be included in
the design above our contracted scope of work with PND Engineers. On December 12, 2023
we received an amendment request of $4,838 to cover the costs associated with the
additional work. The additional design effort will extend the final deliverable into the mid-
January 2024. These documents will be used to apply for grants in the first quarter of 2024.
The project is proceeding well and as expected. The costs associated with Amendment 1
will be covered with Silver Salmon derby funds, council will see an appropriation Ordinance
in February to acquire these funds. Documents will be provided to the Kenaitze and
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Public Works Mid-Month Report
Salamatof tribes to assist with grant opportunities. On March 1st, 2024 a meeting was held
with representatives from the Kenai Watershed Forum, US Fish Wildlife, and the Kenaitze
tribe to discuss where project grant applications currently reside. We anticipate hearing about
a potential grant opportunity in late April. We are not sure if we will be successful or not with
this round of applications. As of June 12, 2024 no news of available grant funding yet.
• Community Wildfire Prevention Plan (CWPP) Mitigation Phase Two – Currently in
construction phase. Doug Koch Professional Tree Service was the low bidder on this project
that was released for bids on November 1, 2023 with bids due on November 29, 2023. His
bid in the amount of $177,700 to mitigate 84.75 acres within the Cemetery Creek drainage
extending from Float Plane Basin down to the Lee Shore Center. Resolution 2023-67 is in
the 12/20/23 Council Packet to award the project. Work will continue throughout the next
year. Contractor was out of state for some time, Contract was fully executed on January 29,
2024. Contractor is anticipating starting work in February. To date much of the airport side
of the project is now complete with the drainage extending down Spruce St.
• Public Safety Building Tower Guy Wire System Upgrade – Currently in construction bid phase.
This project is intended to replace the existing guy wires with new larger cables and relocating
the top two runs to ground anchors in lieu of the current attachments to the building. The
project was released for construction bids on January 17, 2024 with bids due on February 6,
2024. Unfortunately, no bids were received by the Department. Staff is reaching back out to
the three various firms contacted to determine why. Project was re-released for bids on March
12th with bids due on March 26th. One bid was received by Foster’s Construction totaling
$112,888, well over anticipated amounts. The department is researching our options, and
may contract pieces of the work ourselves. Webex meeting with Motorola and Police Chief
was held on May 8th. Public Works is working toward contracting out individual components
of the work to allow the project to move forward.
Water & Sewer Fund Projects:
• Lift Station Renovations – Currently in design phase. Resolution 2021-58 awarded HDL
Engineering agreement in the amount of $59,560 to provide bid ready construction documents
for three lift stations. These locations included the stations at mile posts 13 and 14, which are
near the soccer fields and Spur / Redoubt Ave respectively, as well as a station on Lawton
Drive. These locations are intended to receive new pumps and pump control panels as part
of this project. After determination of which lift stations would receive renovations to start, a
design meeting was held on 12/3/21 to discuss pump and control panel design. Basis of
design memo received on January 6, 2022. Design documents are approaching 95%. Design
is finally approaching completion. Challenges with our current SCADA team required some
changes to different lift station controllers which has now been resolved. Supplemental
funding will be needed to complete these three locations, staff is working on finalizing those
estimated costs, with upcoming legislation to be expected. Construction expected for summer
2024. Resolution 2024-16 in the May 15th council packet is transferring funds in support of
this project.
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Public Works Mid-Month Report
• Wastewater Plant Digester Blowers Replacements – Currently awaiting finalization of grant
application to enter construction bid phase, funds are available. HDL Engineering was
authorized to proceed on design documents for this project through passage of Resolution
2022-29 on May 18, 2022. Design Agreement is currently in the amount of $382,513 and will
provide bid ready construction documents for the replacement of two 40+ year old blowers at
the WWTP. The Department received 35% Design Study Report on September 23, 2022 and
the project is currently moving toward 65% design documents. A grant for this project has
been applied for through Senator Murkowski’s office through the Congressional Directed
Spending (CDS) program. We are awaiting word on if we were successful in receiving grant
funds. This is a high priority project for the department and is anticipated to provide further
energy savings similar to the aeration basin blower replacement project completed a few years
ago. Final 65% plan reviews are being conducted on site with HDL on 12/19/22, bid
documents are expected to be ready 5/1/23 and if funding is in place will be bid immediately,
if not will be delayed until funding arrives. Environmental review process is delayed as we
are not sure of the grant requirements at this time, and may not know until a future grant is
executed. Until then this will be a shovel ready project waiting on funding. May 5th a
Community Grants Webinar was held to discuss the pending grant requirements, the Public
Works Director and HDL Engineering participated in the webinar. Consultants are reviewing
requirements and hope to have the design moving forward shortly. Project will not be able to
be bid until funding formally arrives. Design team is actively working with granting agency.
Construction expected for summer 2024. This project is behind schedule due to difficulties
with grant application process, staff is working to remedy.
• Water Treatment Plant Pumphouse – Grant application was successfully submitted to DEC
on April 30th, 2024. This project will construct a new pumphouse building and provide
replacement distribution pumps for the City’s Water System. On August 1, 2023 received
letter that the State of Alaska Department of Environmental Conservation (ADEC) has
awarded the City of Kenai a $1,200,000 loan through the state’s revolving fund program and
that the loan would receive 100% forgiveness in support of this project. Resolution 2023-56
was approved by Council at the September 20, 2023 Council Meeting to allow access to these
funds. Ordinance 3384-2023 is being introduced 12/20/23 to move funding into place for the
design work to proceed. HDL Engineering Consultant’s pending design agreement as
detailed within Resolution 2024-14 up for council approval at the April 17, 2024 meeting totals
$187,461. Currently working on additional grant requested environmental paperwork and
financial statements.
• WWTP & WTP Electronic Access Gate & Controls – On August 13, 2023 HDL Engineering
provided a proposal under their term agreement to begin design work on the Electronic
Access Gates projects at both the Water and Wastewater Plants. The project identified as
Task 13 under their agreement has a proposed design cost of $24,902. Design work will
continue over the winter months for construction to take place summer 2024. HDL working
under purchase order 127771 is now actively working on this project.
Page 209
Page 8 of 10
Public Works Mid-Month Report
Senior Citizens Fund Projects:
• Senior Center Front Entry Modifications – Capital Project Manager has completed the
construction bid documents for this work, which is now under review. Hope to release this
project for bid by end of June. This work will make repairs to the automatic doors entering the
facility.
Congregate Housing Fund Projects:
• Vintage Pointe Boiler Replacement – A RFP for design services was released on October 6,
2022 with proposals due on November 3, 2022. This project will replace outdated boiler
heat systems for the facility as well as providing a direction on backup power generation to
support the heating system when grid power is unavailable. No proposals were received,
the Department is requesting approval to enter negotiations with RSA Engineering in the
hopes of moving the project forward. RSA Engineering is now under contract and is
expected to start design in early January 2023. On February 3, 2023 RSA Engineering
provided draft 65% Design Documents. Staff is currently reviewing. Engineering has a
planned site visit for February 15, 2023 scheduled. We are anticipating bid documents
being ready for an April Construction Bid release. 100% Design Documents are were
received from the RSA Engineering on April 14th. Council approved Resolution 2023-30 on
May 3rd to reallocate funds for the project. Invitation to Bid was released on August 2, 2023
with bids due on August 23, 2023. Council approved Resolution 2023-53 at the September
6, 2023 meeting which awarded construction agreement to Orion Construction in the total
amount of $503,850. Contract has now been executed and submittals are actively in
progress in support of the project. Boiler work is not expected to take place until spring
when work will be less impactful on residents. Boilers are now in Alaska and work is
schedule to begin on April 1st 2024 at the facility. Generator is expected to follow one month
behind, approximately May 1st. Staff is coordinating with the contractor and the senior
center to minimize impacts to the facility. Temporary boilers will be installed and operated
throughout the duration of the demolition and installation of the new equipment. Work is
expected to go quickly with all work completed likely by the end of June 2024. Work is
progressing well as of May 7th, 2024. Boilers have now been completely installed along with
the new generator as indicated in the photos below. Enstar is staged to run a new gas line
to feed the new meter. That work is anticipated to be completed prior to June 30th. Only
remaining work will be to final commission the operation of the boilers, testing of the
generator system, and any necessary asphalt repairs needed after Enstar’s work. Orion
Construction
Page 210
Page 9 of 10
Public Works Mid-Month Report
Other Projects Information:
• DOT Kenai Spur Highway to Sports Lake Rd – This project continues to wait for appropriation
of state funds. Reached out to DOT staff on September 13, 2023, no new information
provided at this time.
• DOT Bridge Access Road Bike Path – Council passed Resolution 2021-53 on August 4, 2021
authorizing the City Manager execute a memorandum of agreement with DOT for design,
construction, and maintenance of the Kenai Bridge Access Road Pathway project. In speaking
with representatives from DOT the state has not provided funding as yet for this project to
move forward. To date the City has appropriated $294,947 in support of this project which is
intended to provide a 1.2 mile path connecting the paths between the Spur Highway and
Beaver Loop. Total cost of project per DOT estimates equals $3,266,301. Per
communications with the DOT, design funding is in place and they are waiting on final
signatures for the Reimbursable Services Agreement (RSA) with DNR. Once the RSA is
approved they will be able to begin design work. Process is expected to be completed by the
end of January. Update: Formal kickoff meeting took place on March 30th with the City
Manager and Public Works Director in attendance. From appearances this design process will
be a slow one, we are not anticipating seeing construction on the path this calendar year. Will
continue to update as more information becomes available. Update: A site meeting will be
taking place between the City, DNR, & DOT on 6/9/22 to review the project. HDL Engineering
appears to conducting surveying services in support of the project, crews were in the area on
6/7/22. On June 29, 2022 the City Manager & Public Works Director met with DOT
Page 211
Page 10 of 10
Public Works Mid-Month Report
representatives and discussed projects. State funding continues to be an issue. Reached out
to DOT staff on September 13, 2023, no new information provided at this time.
Page 212
1
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Terry Eubank, City Manager
THROUGH: Kathy Romain, Senior Center Director
FROM: Astrea Piersee, Administrative Assistant III
DATE: June 3, 2024
SUBJECT: May 2024 Monthly Report
May was bustling with activities at the Kenai Senior Center. The festivities included a Mother's
Day luncheon, which featured a fashion show where Senior Center participants modeled fashions
provided by local vendors. The Center observed Memorial Day, with a joint Honor Guard provided
by the VFW and American Legion. Honoring Veterans through a salute and prayer. Additionally,
a Health and Wellness Fair was held, hosting 15 local vendors who provided information on
services and healthy aging. This event was followed by a walk through old-town Kenai. To close
out the month, there was a day trip to the Anchor Point Greenhouse, complete with a no-host
lunch at Roscoe's.
2024 2023
Home Delivered Meals 2307 1849
Individuals 106 90
Dining Room (Congregate) Meals 1265 1176
Individuals 179 280
Transportation (1-way rides) 206 165
Individuals 38 18
Grocery Shopping Assistance 22/39 14/48
Writers Group 40 46
Caregiver Support Group 18 13
Growing Stronger Exercise 328 350
Tai Chi Class 60 44
TOPS Weight Loss Class 67 67
Bluegrass & Music Sessions 73 74
Card Games 112 109
Wii Bowling 27 40
Arts & Crafts 36 43
Total Event Sign-ins * 2396 2540
Individuals * 225 245
Vintage Pointe Manor Vacancies 1 0
*(not including home meals clients)
Page 213
MEMORANDUM
TO: Mayor Gabriel and Council Members
FROM: Shellie Saner, City Clerk
DATE: June 12, 2024
SUBJECT: City Elections Update
The City of Kenai 2024 Regular Election will be held on Tuesday, October 1, 2024. The following
is a summary of the 2024 Election schedule.
Proposition & Questions
Propositions may be placed on the ballot by Resolution or Ordinance of the City Council at least
53-days before the regular election. If the Council would like to place a question before the
voters by Ordinance, the Ordinance must be introduced at the July 3, 2024 City Council meeting,
with the public hearing held on August 7, 2024. If the Council would like to place a question
before the voters by Resolution, the public hearing on the Resolution must be held during the
August 7, 2024 City Council meeting.
Candidate Filings
Candidate Filing Packets will be available on the City website or may be picked up at the City
Clerk’s Office by July 17, 2024. The candidate filing period will open Thursday, August 1, 2024
at 8:00 a.m. and closes on Thursday, August 15, 2024 at 4:30 p.m.
Voter Registration
The deadline to register to vote or update your voter registration for the 2024 City Election is
September 1, 2024.
Election Board Approval
Council Confirmation of the City of Kenai Election Board Members will during the September 4
or September 18, 2024 City Council meeting.
Absentee Voting
Absentee In-Person voting will begin on Monday, September 16, 2024 and ends on Election
Day, October 1, 2024 at 8:00 p.m. Eligible Voters of the City of Kenai may vote absentee in
person at Kenai City Hall or any of the Kenai Peninsula Borough Absentee Voting Locations.
An application to receive a ballot by mail must be received no later September 24, 2024 at 5:00
p.m. and an application to receive a ballot by electronic transmission September 30, 2024 at
5:00 p.m.
Election Canvass
The City of Kenai Canvass Board will meet on October 8, 2024 for the purpose of canvassing
the absentee, questioned and special needs voted ballots.
Election Certification
Tentatively scheduled for October 16, 2024. The term of office for re-elected or newly elected
Council members begins the Monday following certification.
Page 214
JUNE 19, 2024
CITY COUNCIL MEETING
ADDITIONAL MATERIAL/REVISIONS
REQUESTED ADDITIONS TO THE PACKET
ACTION ITEM REQUESTED BY PAGE
Add to Item E. 6. Resolution No. 2024-26
•Aerial Map Administration 2
Add to Item E. 11. Resolution No. 2024-31
•Aerial Map Administration 3
Add to Item H. 7. Action/Approval - Special Use Permit to
Shane Morgan for Sheet Pile Storage
•Amendment Memo Administration 4
1
2
3
MEMORANDUM
TO: Mayor Gabriel and Council Members
THROUGH: Terry Eubank, City Manager
THROUGH: Linda Mitchell, Planning Director
FROM: Brandon McElrea, Planning Technician
DATE: June 19, 2024
SUBJECT: Amendment to New Business Item No. 7, Special Use Permit to Shane
Morgan
Staff is requesting agenda item H.7 under New Business for a Special Use Permit to Shane
Morgan for Sheet Pile Storage, be removed from the consent agenda to amend the effective date
from July 3, 2024 to June 20, 2024. All other aspects of the project will remain the same.
Your consideration is appreciated.
4
KENAI MARKET DETAIL AND STRATEGY
PREPARED BY VOLAIRE AVIATION CONSULTING JUNE 2024
2
NINE TEAM MEMBERS
200+ YEARS COMBINED EXPERIENCE
3
AGENDA
KENAI TODAY
PRIMARY MARKET AREA
CURRENT AIR SERVICE
PASSENGER RETENTION AND LEAKAGE
INDUSTRY HEADWINDS
PILOT SHORTAGE
INCREASING COST OF SERVICE
AIR SERVICE OUTLOOK
INDUSTRY CONSOLIDATION
SEATTLE SERVICE
MITIGATING AIRLINE RISK
TOPIC ONE
KENAI TODAY
5SOURCE: VOLAIRE AVIATION CONSULTING ANALYSIS OF US CENSUS DATA
KENAI HAS A HIGH INCOME, MOBILE POPULATION
KENAI MUNICIPAL AIRPORT CATCHMENT AREA
AS OF JUNE 2024
ALMOST 17,000 RESIDENTS
MEDIAN INCOME: $82,628 (11% ABOVE AVG)
LARGEST PROFESSIONS:
AG, FISHING, FORESTRY
CONSTRUCTION
HIGH HOUSEHOLD INCOME ($95K AVG)
6
KENAI AVERAGES 217 PASSENGERS PER DAY EACH WAY
KENAI MUNICIPAL AIRPORT PASSENGERS PER DAY EACH WAY (PDEW)
CALENDAR YEAR 1995 – CALENDAR YEAR 2023
322
279 294 287 265 271 266
126
205 206 219 232 237 242 213 222 242 256 264 260 260 246 247 250 253
87
179 199 217
0
50
100
150
200
250
300
350
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
STILL 14% BELOW PRE-PANDEMIC LEVELS
SOURCE: AIRLINE DATA, INC.
7SOURCE: VOLAIRE AVIATION CONSULTING ANALYSIS OF AIRLINE DATA, INC.
KENAI HAS AS MANY AS 44 DAILY DEPARTURES
KENAI MUNICIPAL AIRPORT CURRENT SCHEDULED SERVICE AND PERFORMANCE ANALYSIS
AS OF JUNE 2024
ENA
ANC
26 PEAK DAY DEPARTURES
UP TO 234 DAILY DEPARTING SEATS
18 PEAK DAY DEPARTURES
UP TO 162 DAILY DEPARTING SEATS
55% OF SEATS FILLED IN 2023
8SOURCE: VOLAIRE AVIATION CONSULTING
KENAI RETAINS POORLY WITH LIMITED SERVICE
AIRPORTS USED BY KENAI CATCHMENT AREA PASSENGERS
YEAR ENDED THIRD QUARTER 2023
95% of passengers who buy tickets on airlines flying
between Kenai and Anchorage buy a separate ticket to
their final destination beyond Anchorage – just 5%
terminate their trip at ANC.
ENA: 7.2%
HOM: 0.2%
ANC: 92.5%
Rank Airport Code Airport Location and Name O&D Passengers PDEW Share
1 ANC Anchorage International Airport 302,481 414.4 92.5%
2 ENA Kenai Municipal Airport 23,604 32.3 7.2%
3 HOM Homer Airport 781 1.1 0.2%
All Airports 326,867 447.8 100.0%
9SOURCE: VOLAIRE AVIATION CONSULTING
KENAI PASSENGERS PAY EXCEPTIONALLY HIGH FARES
AVERAGE ONE WAY FARE FOR KENAI CATCHMENT AREA PASSENGERS BY AIRPORT USED
YEAR ENDED THIRD QUARTER 2023
95% of passengers flying from Kenai have to
buy a second ticket at Anchorage, resulting in a
fare that’s closer to the sum of both the Kenai
and Anchorage fares, or roughly $750 one way.
ENA: $335
HOM: $76
ANC: $394
Rank Airport Code Airport Location and Name RDEW Fare
1 ANC Anchorage International Airport $163,197 $394
2 ENA Kenai Municipal Airport $10,835 $335
3 HOM Homer Airport $81 $76
All Airports $174,113 $389
10SOURCE: VOLAIRE AVIATION CONSULTING
KENAI’S TOP MARKET IS SEATTLE/TACOMA
TOP 10 O&D MARKETS FOR KENAI CATCHMENT AREA PASSENGERS
YEAR ENDED THIRD QUARTER 2023
3
0
0
0
0
1
10
0
1
0
65
21
21
17
14
12
1
10
7
8
0 10 20 30 40 50 60 70 80
Seattle/Everett
Minneapolis/St. Paul
Denver
Chicago
Dallas/Ft. Worth
Las Vegas
Anchorage
Phoenix/Mesa
Los Angeles Basin
Kansas City
Kenai Passengers
Other Airport Passengers
11SOURCE: VOLAIRE AVIATION CONSULTING
55% OF PASSENGERS ARE INBOUND TO KENAI
POINT-OF-ORIGIN IN TOP 10 O&D MARKETS FOR KENAI CATCHMENT AREA PASSENGERS
YEAR ENDED THIRD QUARTER 2023
47.7%
38.5%
42.1%
41.9%
41.6%
68.9%
51.9%
55.7%
50.0%
40.5%
52.3%
61.5%
57.9%
58.1%
58.4%
31.1%
48.1%
44.3%
50.0%
59.5%
0%10%20%30%40%50%60%70%80%90%100%
Seattle/Everett
Minneapolis/St. Paul
Denver
Chicago
Dallas/Ft. Worth
Las Vegas
Anchorage
Phoenix/Mesa
Los Angeles Basin
Kansas City
Outbound Inbound
TOPIC TWO
INDUSTRY HEADWINDS
13SOURCE: REGIONAL AIRLINE ASSOCIATION (RAA)
CURRENT PILOT SHORTAGE WILL WORSEN
NORTH AMERICAN PILOT SUPPLY VERSUS DEMAND
CY2020 – CY2023
60,000
70,000
80,000
90,000
100,000
110,000
120,000
130,000
140,000
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
Pilot Supply Pilot Demand
CURRENT GAP: 13,500
2026: 24,000
2032: 17,000
14
MORE PLANES ARE HEADED TO THE DESERT
REGIONAL JETS PARKED DUE TO PILOT SHORTAGE
PROJECTED FOR 2026
SOURCE: REGIONAL AIRLINE ASSOCIATION (RAA)
500 700+ REGIONAL JETS PARKED SINCE 2019 BY 2026
15
REMAINING JETS ARE FLYING LESS
SOURCE: VOLAIRE AVIATION CONSULTING
16SOURCE: VOLAIRE AVIATION CONSULTING
AIRCRAFT USED TO FLY AS MUCH AS POSSIBLE
TYPICAL DAILY SCHEDULE FOR BOEING 737-800 AIRCRAFT
CALENDAR YEAR 2019
PDX SEA SEA GEG GEG SEA SEA ANC
6.00 7.30 9.30 11.30 13.00 15.30 17.30 19.30 21.30
ANC SEA
▪ SIX SEGMENTS PER DAY ▪ 11 “BLOCK HOURS” PER DAY
SEA PDX
17SOURCE: VOLAIRE AVIATION CONSULTING
NOW, PILOT CONSTRAINTS REDUCE FLYING
TYPICAL DAILY SCHEDULE FOR BOEING 737-800 AIRCRAFT
CALENDAR YEAR 2019
TYPICAL DAILY SCHEDULE FOR BOEING 737-800 AIRCRAFT
JUNE 2024
6.00 7.30 9.30 11.30 13.00 15.30 17.30 19.30 21.30
▪ THREE SEGMENTS PER DAY ▪ 8 “BLOCK HOURS” PER DAY
PDX SEA SEA GEG GEG SEA SEA ANC
6.00 7.30 9.30 11.30 13.00 15.30 17.30 19.30 21.30
ANC SEA
▪ SIX SEGMENTS PER DAY ▪ 11 “BLOCK HOURS” PER DAY
SEA PDX
PDX SEA SEA ANC ANC SEA
18
COSTS HAVE MORE THAN DOUBLED
AMORTIZED LEASE COST OF AN BOEING 737-800 JET
CALENDAR YEAR 2019 VS. FEBRUARY 2024
$7,400 PER DAY
$1,235 PER SEGMENT
$8 PER SEAT
LEASE COST:
2019
SOURCE: VOLAIRE AVIATION CONSULTING
19
COSTS HAVE MORE THAN DOUBLED
AMORTIZED LEASE COST OF AN BOEING 737-800 JET
CALENDAR YEAR 2019 VS. FEBRUARY 2024
$7,400 PER DAY
$1,235 PER SEGMENT
$2,470 PER SEGMENT
$8 PER SEAT
$15 PER SEAT
LEASE COST:
2019
2024
SOURCE: VOLAIRE AVIATION CONSULTING
20
PILOT PAY ALSO PUTS PRESSURE ON COSTS
US REGIONAL AIRLINE STARTING PILOT PAY
CY2022 – CY2023
SOURCE: REGIONAL AIRLINE ASSOCIATION (RAA)
$62,000
$108,000
$0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000
2022
2023
ALMOST DOUBLED IN LAST TWO YEARS
EXTRA $400 IN COST ON AVERAGE FLIGHT
$5.27 IN EXTRA COST PER SEAT
21SOURCE: DEPARTMENT OF TRANSPORTATION FORM 41
INCREASED COSTS = INCREASED RISK
COST OF AN AIRLINE SERVING SEATTLE – KENAI
AS OF JUNE 2024
2019 ESTIMATED COST
$15,000 PER SEGMENT
$121 PER SEAT
ENA
SEA
22SOURCE: DEPARTMENT OF TRANSPORTATION FORM 41
INCREASED COSTS = INCREASED RISK
COST OF AN AIRLINE SERVING SEATTLE – KENAI
AS OF JUNE 2024
2019 ESTIMATED COST
$15,000 PER SEGMENT
$121 PER SEAT
2024 ESTIMATED COST
$24,500 PER SEGMENT
$198 PER SEAT
ENA
SEA
23SOURCE: AIRLINE DATA, INC.
INCREASED COSTS MAKE FLYING UNPROFITABLE
US AIRPORTS THAT HAVE LOST A CARRIER
SINCE JANUARY 2020
131 AIRPORTS HAVE LOST AN AIRLINE
TOPIC THREE
AIR SERVICE OUTLOOK
25SOURCE: VOLAIRE AVIATION CONSULTING, UPDATED FEBRUARY 2024
FEWER AIRLINES TO WORK WITH
1985 1990 1995 2000 2005 2010 2015 2020 2025
26SOURCE: DEPARTMENT OF TRANSPORTATION FORM 41
SEATTLE RECRUITMENT: POTENTIAL AIRLINES
KENAI’S TOP PRIORITY: SEATTLE NONSTOPS
AS OF JUNE 2024
TWO PLAYERS
ENA
SEA
27SOURCE: DEPARTMENT OF TRANSPORTATION FORM 41
SEATTLE RECRUITMENT: EXTREME RISK
KENAI’S TOP PRIORITY: SEATTLE NONSTOPS
AS OF JUNE 2024
ENA
SEA
2024 ESTIMATED COST
$24,500 PER SEGMENT
FINANCIALS IF LEAKAGE CONTINUES
$11,200 REVENUE PER SEGMENT
($13,300) LOSS PER SEGMENT
($9.7 MILLION) LOSS PER YEAR
28
LOWER 48 AIRPORTS OFFER LARGE INCENTIVES
AIRPORTS OFFERING SIX-FIGURE INCENTIVES FOR NEW AIRLINE SERVICE
AS OF APRIL 2024
VIRTUALLY ALL US AIRPORTS
OFFER LARGE INCENTIVES
SOURCE: VOLAIRE AVIATION CONSULTING
29
REVENUE GUARANTEES REQUIRED
ROUTES LAUNCHED IN LAST NINE MONTHS WITH MINIMUM REVENUE GUARANTEES (MRGs)
AS OF APRIL 2024
PLATTSBURGH
TAMPA
GRAND JUNCTION
NEW HAVEN
WILMINGTON
BURBANK
LAS VEGASSAN LUIS OBISPO
SALEM
ORLANDO
SPRINGFIELD
DAYTONA BEACH
DUBUQUE
WASHINGTON, DC
BATON ROUGE
SOURCE: VOLAIRE AVIATION CONSULTING REVIEW OF NEWS ARTICLES
30SOURCE: DEPARTMENT OF TRANSPORTATION FORM 41
SEATTLE RECRUITMENT: MITIGATING RISK
KENAI’S TOP PRIORITY: SEATTLE NONSTOPS
AS OF JUNE 2024
ENA
SEA
RISK MITIGATION PLAN
SMALL COMMUNITY AIR SERVICE GRANT
AIRPORT FEE WAIVERS (TWO YEARS)
LOCAL MARKETING PLAN
JACK PENNING
MANAGING PARTNER
JACK.PENNING@VOLAIREAVIATION.COM
Kenai City Council - Regular Meeting Page 1 of 3
June 19, 2024
Kenai City Council - Regular Meeting
June 19, 2024 ꟷ 6:00 PM
Kenai City Council Chambers
210 Fidalgo Avenue, Kenai, Alaska
www.kenai.city
**Telephonic/Virtual Information on Page 3**
Action Agenda
A. CALL TO ORDER
1. Pledge of Allegiance
2. Roll Call
3. Approval of the Agenda and Consent Agenda (Public comments on Consent Agenda Items
limited to three (3) minutes per speaker; thirty (30) minutes aggregated)
*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
1. Water and Wastewater Rate Study, Public Works Director Curtin
2. Kenai Regional Airport - Leakage and Retention Study, Volaire Aviation Consulting
C. SCHEDULED PUBLIC COMMENTS (Public comments limited to ten (10) minutes per speaker)
D. UNSCHEDULED PUBLIC COMMENTS (Public comments limited to three (3) minutes per speaker;
thirty (30) minutes aggregated)
E. PUBLIC HEARINGS
1. ENACTED WITHOUT OBJECTION. Ordinance No. 3421-2024 - Increasing Estimated
Revenues and Appropriation in the Kenai City Airport Snow Removal Equipment, Visitor Center,
and Public Safety Capital Project Funds to Transfer Residual Balance from Completed Projects
Back to their Original Funding Sources. (Administration)
2. ENACTED WITHOUT OBJECTION. Ordinance No. 3422-2024 - Increasing Estimated
Revenues and Appropriations in the General Fund and Public Safety Capital Project Fund for
Cost in Excess of Projected Budgeted Amounts for Fire Department Flooring Replacement
Phase 2. (Administration)
3. ENACTED WITHOUT OBJECTION. Ordinance No. 3423-2024 - Increasing Estimated
Revenues and Appropriations in the General Fund and Personal Use Fishery Fund for Annual
Transfer from Personal Use Fishery Fund to the General Fund for Non-Departmental Expenses.
(Administration)
4. ENACTED WITHOUT OBJECTION. Ordinance No. 3424-2024 - Increasing FY2025
Estimated Revenues and Appropriations in the General Fund and Authorizing Renewal of the
City’s Property, Liability, Workers’ Compensation, Airport and Other Ancillary Policies with the
Alaska Municipal League Joint Insurance Association for July 1, 2024 through June 30, 2025.
(Administration) [KMC 1.15.070(d)]
Kenai City Council - Regular Meeting Page 2 of 3
June 19, 2024
1. Motion for Introduction
2. Motion for Second Reading (Requires a Unanimous Vote)
3. Motion for Enactment (Requires Five Affirmative Votes)
5. ADOPTED WITHOUT OBJECTION. Resolution No. 2024-25 - Authorizing the Use of the Fleet
Replacement Fund for the Purchase of Equipment to Upfit Three New Police Vehicles.
(Administration)
6. ADOPTED WITHOUT OBJECTION. Resolution No. 2024-26 - Approving a Twelve-Month
Extension of Time for Good Cause for the Completion of Permanent Improvements for a Lease
Between the City of Kenai and State of Alaska, Division of Forestry for Airport Reserve Lands
Described as Lot 4A, FBO Subdivision No.11, Plat No. 2021-44. (Administration)
7. ADOPTED WITHOUT OBJECTION. Resolution No. 2024-27 - Authorizing the City Manager
to Enter into an ATM Concession Agreement for the Kenai Municipal Airport. (Administration)
8. ADOPTED WITHOUT OBJECTION. Resolution No. 2024-28 - Amending City Council Policy
No. 20.020 Commissions, Committees and Council on Aging Procedures to Amend the Meeting
Location for the Airport Commission and Making Other Housekeeping Amendments. (City
Clerk)
9. ADOPTED WITHOUT OBJECTION. Resolution No. 2024-29 - Authorizing a Service
Agreement for the Personal Use Fishery Dumpsters and Portable Restrooms. (Administration)
10. ADOPTED WITHOUT OBJECTION. Resolution No. 2024-30 - Authorizing a Contract Award
and Corresponding Purchase Order for the 2024 Recreation Center Epoxy Flooring Project.
(Administration)
11. ADOPTED WITHOUT OBJECTION. Resolution No. 2024-31 - Approving a Twelve-Month
Extension of Time for Good Cause for the Completion of Permanent Improvements for a Lease
between the City of Kenai and Joel Caldwell for Airport Reserve Lands Described as Lot 3,
Block 4, General Aviation Apron Subdivision No. 1, Plat No. 73-68. (Administration)
F. MINUTES
1. *Regular Meeting of June 5, 2024. (City Clerk)
G. UNFINISHED BUSINESS
1. ADOPTED AS AMENDED WITHOUT OBJECTION. Resolution No. 2024-17 - Renaming
Cook Inlet View Drive to Cook Inlet Drive. (Sounart) [On 05/15/24 this item was referred to the
Planning and Zoning Commission for recommendation to Council and postponed to 06/05/24;
on 06/05/24 this item was postponed as amended to the 06/19/24 City Council meeting.]
H. NEW BUSINESS
1. *Action/Approval - Bills to be Ratified. (Administration)
2. *Action/Approval - Special Use Permit to the State of Alaska, Division of Forestry for Use of
30,000 Square Feet of Apron Space at the Kenai Municipal Airport. (Administration)
3. *Action/Approval - Special Use Permit to Echo Lake Meats for Use of 20 Square Feet of
Terminal Space at the Kenai Municipal Airport. (Administration)
4. *Action/Approval - Special Use Permit to Kenai Aviation Operations, LLC for Use of 1200
Square Feet of Apron Space at the Kenai Municipal Airport. (Administration)
Kenai City Council - Regular Meeting Page 3 of 3
June 19, 2024
5. *Action/Approval - Special Use Permit to Weaver Brothers, Inc. for Trucks and Trailers
Storage. (Administration)
6. *Action/Approval - Special Use Permit to Kenai Chamber of Commerce and Visitor Center -
Moose Meat John Cabin. (Administration)
7. APPROVED AS AMENDED WITHOUT OBJECTION. *Action/Approval - Special Use Permit
to Shane Morgan for Sheet Pile Storage. (Administration)
I. COMMISSION / COMMITTEE REPORTS
1. Council on Aging Commission
2. Airport Commission
3. Harbor Commission
4. Parks and Recreation Commission
5. Planning and Zoning Commission
6. Beautification Commission
J. REPORT OF THE MAYOR
K. ADMINISTRATION REPORTS
1. City Manager
2. City Attorney
3. City Clerk
L. ADDITIONAL PUBLIC COMMENTS
1. Citizens Comments (Public comments limited to five (5) minutes per speaker)
2. Council Comments
M. EXECUTIVE SESSION
1. Discussion of Potential Payroll Settlement. [AS 44.62.310(c)(1) and AS 44.62.310(c)(3)]
N. PENDING ITEMS
O. ADJOURNMENT
P. INFORMATION ITEMS
The agenda and supporting documents are posted on the City’s website at www.kenai.city. Copies of
resolutions and ordinances are available at the City Clerk’s Office or outside the Council Chamber prior
to the meeting. For additional information, please contact the City Clerk’s Office at 907-283-8231.
Registration is required to join the meeting remotely through Zoom. Please use the following link to
register:
https://us02web.zoom.us/meeting/register/tZUof--uqjwuGNA9TpWjiuD5xasJk-leXjY_