HomeMy WebLinkAboutOrdinance No. 3465-2025)CNI
KENAI
CITY OF KENAI
ORDINANCE NO. 3465-2026
Sponsored by: City Clerk
AN ORDINANCE AMENDING KENAI MUNICIPAL CODE, TITLE 2 - ALCOHOLIC BEVERAGE AND
MARIJUANA, STANDARDIZING HOW LICENSES ARE REVIEWED BY THE CITY, ALLOWING FOR
ADMINISTRATIVE NON -OBJECTIONS FOR RENEWAL OF EXISTING LICENSES WHEN NO
GROUNDS TO OBJECT TO THE RENEWAL ARE IDENTIFIED, UPDATING PUBLIC HEARINGS FOR
PROTESTS OR CONDITIONAL NON -OBJECTIONS, ALIGNING MUNICIPAL CODE WITH
REQUIREMENTS OF ALASKA STATUTES, AND OTHER HOUSEKEEPING AMENDMENTS.
WHEREAS, updating Kenai Municipal Code (KMC) by codifying license review practices will standardize
how licenses are reviewed by the City; and,
WHEREAS, allowing Non -Objections to be issued administratively for renewals when no grounds to
protest are identified, will promote efficiency and expedite the licensing process through the State of
Alaska Alcohol & Marijuana Control Office; and,
WHEREAS, providing clear public hearing processes for protests and conditional non -objections provides
transparency in process for the applicants and residents of the City; and,
WHEREAS, aligning the City's alcohol and marijuana licensing regulations with the State of Alaska
regulations provides consistency for the businesses operating within the City.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, AS
FOLLOWS:
Section 1. Amendment of Section of Kenai Municipal Code: That Kenai Municipal Code, Title 2 -
Alcoholic Beverages and Marijuana is hereby amended as follows:
Title 2
Alcoholic Beverages and Marijuana
2.05
Definitions
2.10
ITRANSFER] Review of License
2.15
Conformity to State Liquor Laws
2.20
Sales on Election Day
2.25
Consumption
2.35
Violation of Chapter
2.40
Approval of an Activity of a Licensee
Chapter 2.05 - Definitions
Sections:
2.05.010 Definitions.
2.06.010 Definitions.
Unless otherwise expressly stated, whenever used in this chapter, the following words shall have the
meanings given to them by this section:
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(a) "Board" means the Alaska Alcoholic Beverage Control Board or the Alaska Marijuana Control
Board.
"Intoxicating Liquor' includes but is not limited to whiskey, brandy, rum, gin, wine, ale, port, or
beer, and all other spirituous, vinous malt, and other fermented or distilled liquors intended for
human consumption and containing more than one percent (1 %) alcohol by volume.
(c) "License" means a liquor or marijuana license unless otherwise specified
(b) "Marijuana" means all parts of the plant of the genus Cannabis, whether growing or not; the seeds
thereof, the resin extracted from any part of the plant, and every compound, manufacture, salt,
derivative, mixture, or preparation of the plant, its seeds, or its resin, including marijuana
concentrate. The term does not include fiber produced from the stalks, oil, or cake made from the
seeds of the plant, sterilized seed of the plant which is incapable of germination, or the weight of
any other ingredient combined with marijuana to prepare topical or oral administrations, food,
drink, or other products.
Chapter 2.10 - [TRANSFER] Review of License.
Sections:
2.10.005 Active License Review.
2.10.010 Review of Application.
2.10.0[1]20 Public Hearing.
[2.10.020 POLICE TO INVESTIGATE.]
2.10.030 [HEARING] Review Standards.
2.10.006 Active License Review.
(a) To serve the public interest, the City Clerk or designee will annually prepare and present to the
City Council a list of all active licenses issued by the Board that are operating within the City of
Kenai. This list shall be presented no later than two months prior to the annual expiration date of
each license type and shall include the following information:
M License Number:
2 License Type;
License Status;
Business Name,
Business Location;
Licensee Name.
2.10.010 Review of Application.
(a) License application received from the Board for issuance, renewal, relocation, or transfer of
ownership will undergo an administrative review to determine whether the facility, licensee,
transferee or transferor has met all obligations to the City, as established within Kenai Municipal
Code.
Sb2 Administrative review will be completed within a timeframe that allows the item to be placed on a
City Council agenda within 60 days of receiving notice of application from the Board. Departments
or Officials responsible for the review include, but are not limited to. the following
(1) Building Official,
Finance Department;
Fire Marshall;
Legal Department;
Planning and Zoning Department:
Police Department.
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Lcj After completion of the administrative review. license applications will be placed on a City Council
agenda as an Action Approval item with the following exceptions:
Renewals. When a license renewal application is received without any modifications to the
existing license and the administrative review confirms that the applicant has fulfilled all
obligations to the City, the City Clerk or their designee may issue a letter of non-obnection
to the renewal for submission to the Board.
Protest or Conditions. If it is determined that the applicant has not fulfilled all obligations to
the City, the matter shall be placed on a City Council agenda in accordance with KMC
2.10.020.
2.10.0[1]20 Public Hearing.
[A PUBLIC HEARING MAY BE HELD PRIOR TO ANY CITY COUNCIL APPROVAL OF TRANSFER OR ISSUANCE OF
SUCH LICENSES AND ESTABLISHMENTS. SAID PUBLIC HEARING SHALL BE HELD BY THE CITY COUNCIL OF THE
CITY OF KENAI, ALASKA, AT ITS REGULAR MEETING TIMES OR SUCH OTHER SPECIAL HEARING DATE AS MAY
BE CONVENIENT TO ALL PARTIES CONCERNED. SUCH PUBLIC HEARINGS SHALL BE PUBLICLY ADVERTISED IN A
NEWSPAPER OF GENERAL CIRCULATION AT LEAST ONCE PRIOR TO THE HOLDING OF THE PUBLIC HEARING,
AND NOTICE THEREOF SHALL BE POSTED ON THE CITY COUNCIL BULLETIN BOARD, AND SUCH OTHER NOTICE
AS MAY BE DIRECTED BY THE CITY COUNCIL.]
(a) An application subiect to protest or conditions. will be placed on a City Council agenda as a
Resolution within 60 days of receipt of application from the Board. A written notice of public
hearing will be sent to the applicant, and include the following information:
(a) The date and time of the meeting at which the Council will consider the application: and.
A statement that the applicant may appear before the Council at the meeting to defend the
application: and.
(c) A summary of any unresolved obligations to the City. resultinq the protest or conditions.
Prior to taking action on the application under this section. the Council will provide the applicant
an ormortunity for public comment in defense of the application. and provide opportunity for citizen
comment.
[2.10.020 POLICE TO INVESTIGATE.
A POLICE INVESTIGATION OF THE PREMISES AND APPLICATION FOR TRANSFER OR ISSUANCE MAY BE
CONDUCTED PRIOR TO THE PUBLIC HEARING FORM THE PROPOSED TRANSFER OR ISSUANCE.]
2.10.030 [HEARING] Review Standards.
[A PUBLIC HEARING MAY BE HELD PRIOR TO ANY CITY COUNCIL APPROVAL OF TRANSFER OR ISSUANCE OF
SUCH LICENSES AND ESTABLISHMENTS. SAID PUBLIC HEARING SHALL BE HELD BY THE CITY COUNCIL OF THE
CITY OF KENAI, ALASKA, AT ITS REGULAR MEETING TIMES OR SUCH OTHER SPECIAL HEARING DATE AS MAY
BE CONVENIENT TO ALL PARTIES CONCERNED. SUCH PUBLIC HEARINGS SHALL BE PUBLICLY ADVERTISED IN A
NEWSPAPER OF GENERAL CIRCULATION AT LEAST ONCE PRIOR TO THE HOLDING OF THE PUBLIC HEARING,
AND NOTICE THEREOF SHALL BE POSTED ON THE CITY COUNCIL BULLETIN BOARD, AND SUCH OTHER NOTICE
AS MAY BE DIRECTED BY THE CITY COUNCIL.]
Review under this Cha -ter will examine the conduct of a liquor or commercial mariouana operation. The
Council may establish standards for individual licenses. such standards will be applied in accordance
with KMC 2.10.020.
(a) Conduct of the business by the transferee or applicant and employees, as well as past conduct
of the transferor;
(b) Maintenance of health standards on the premises in question or any improvements to be required;
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(c) Set an amount of public liability insurance to apply to the licensed premises which shall carry
reasonable limits consistent with industry standards;
(d) Payment to the City of all taxes or obligations of the premises involved and limited to such
premises;
(e) A requirement that the operations of the premises shall be for a period of not less than nine (9)
months out of each calendar year of operation;
(f) A finding that disorderly conduct has occurred on the premises at least three times in the course
of any one particular calendar year -such violations to include instances where the licensee has
failed to request assistance of the police in maintaining order;
(g) And such other aspects of the proposed operation as would reasonably be a matter for public
concern pursuant to the police powers of the City of Kenai, Alaska.
Chapter 2.15 - Conformity to State Liquor Laws
Sections:
2.15.010 Incorporation of State Statutes.
2.15.010 Incorporation of State Statutes.
[INCORPORATED AS THOUGH SET FORTH IN FULL HEREIN, ARE THE FOLLOWING QUOTED PROVISIONS OF THE
STATUTES OF THE STATE OF ALASKA WHICH ARE IDENTIFIED BY SECTION NUMBER AND CATCHLINE TITLE
BELOW:] The provisions of Alaska Statutes related to furnishing alcohol to persons under the age of 21
and purchase of alcoholic beverages by persons under the age of 21 are hereby incorporated as if fully
set forth herein.
[SEC. 04.16.052 - FURNISHING OF ALCOHOLIC BEVERAGES TO PERSONS UNDER THE AGE OF 21 BY
LICENSEES.
SEC. 04.16.060 - PURCHASE BY PERSONS UNDER THE AGE OF 21.]
Chapter 2.20 - Sales on Election Day
Sections:
2.20.010 Sales Permitted.
2.20.010 Sales Permitted.
The provisions of Alaska Statute f 04.16.070] related to sales of alcohol on election day do not apply
within the City of Kenai. [WHEN ELECTIONS ARE BEING HELD. AND 1] Intoxicating liquor and marijuana may
be sold or otherwise disposed of within the City of Kenai on election days in the same manner and
pursuant to the same regulations as on other days.
Chapter 2.26 - Consumption
Sections:
2.25.010 Prohibited in Certain Places.
2.26.010 Prohibited in Certain Places.
No person shall consume intoxicating liquor on the public streets, alleys, parks, or other public places,
unless specifically exempted in this chapter. A person shall not be held in violation of this section where
it is shown that:
(a) Such person obtained such intoxicating liquor from a holder of a caterer's permit, special events
permit, or recreational site license issued by the State of Alaska; and,
(b) Such person consumed such intoxicating liquor only while upon the premises described in the
license or permit referred to in (1) above.
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Chapter 2.36 - Violation of Chapter
Sections:
2.35.010 Penalty.
2.35.010 Penalty.
Any person, firm, or corporation who commits a violation as defined by this chapter or who otherwise
violates any provision of this chapter, shall be guilty of a [MISDEMEANOR] minor offence, and upon
conviction shall be punished [AS PROVIDED FOR MISDEMEANORS] in accordance with KMC 13.05.010.
Chapter 2.40 - Approval of an Activity of a Licensee
Sections:
2.40.010 Obligations to City.
2.40.020 Approval by Council.
2.40.010 Obligations to City.
[IT IS DETERMINED TO BE IN THE PUBLIC INTEREST THAT HOLDERS OF OR APPLICANTS FOR LICENSES ISSUED
BY THE ALCOHOLIC BEVERAGE CONTROL BOARD AND THE MARIJUANA CONTROL BOARD OF THE STATE OF
ALASKA SHALL HAVE ALL OBLIGATIONS TO THE CITY OF KENAI ON A SATISFACTORY BASIS PRIOR TO THE CITY
COUNCIL APPROVAL OF ANY ACTIVITY OF SAID LICENSE HOLDER OR APPLICANT.] To serve the public Interest.
holders and applicants of licenses issued by the Board must fulfill all financial and regulatory obligations
to the City of Kenai.
2.40.020 Approval by Council.
[THE COUNCIL MAY APPROVE A NOTICE OF NON -OBJECTION FOR THE ISSUANCE, TRANSFER, OR RENEWAL OF
ANY LICENSE OR PERMIT ISSUED BY THE ALCOHOLIC BEVERAGE CONTROL BOARD OR THE MARIJUANA
CONTROL BOARD IN THE CITY OF KENAI AS LONG AS THE LICENSEE(S) OR PERMITTEE(S) HAS SATISFIED ALL
OBLIGATION TO THE CITY OR ENTERED INTO A CITY APPROVED PAYMENT PLAN WITH THE BOROUGH OR CITY
ON ANY OBLIGATIONS OWED TO THE CITY AND THE LICENSEE(S) OR PERMITTEE(S) IS IN COMPLIANCE WITH
SUCH PAYMENT PLAN. IF THE LICENSEE(S) OR PERMITTEE(S) HAS AN OUTSTANDING OBLIGATION TO THE CITY
AND A CITY APPROVED PAYMENT PLAN HAS NOT BEEN ENTERED INTO, OR IF THE LICENSEE(S) OR
PERMITTEE(S) IS NOT IN COMPLIANCE WITH THE PLAN, THE COUNCIL MAY CAUSE A PROTEST TO BE FILED WITH
THE STATE ALCOHOLIC BEVERAGE CONTROL BOARD OR MARIJUANA CONTROL BOARD.] The City Council
may approve a notice of non -objection for the issuance. renewal, relocation. transfer of ownership or
continuation of a license operating within the City of Kenai, provided the applicant(st have satisfied all
obligations to the City or entered into a City approved plan with the Borough or City to satisfy unfulfilled
obligations. if the applicant is not in compliance with the plan, the Council may cause a protest to be
filed with the Board in accordance with KMC 2.10.020.
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 30 days
after enactment.
ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 7T" DAY OF MAY, 2025.
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ATTEST:
Michelle'M. Soer, ]AMC, City Clerk
Introduced: April 16, 2025
Enacted: May 7, 2025
Effective: June 6, 2025
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K N A I
City of Kenai 1 210 Fidalgo Ave, Kenai, AK 99611-7794 1907.283.7535 1 www.6naixity
MEMORANDUM
TO: Mayor Gabriel and Council Members
FROM: Shellie Saner, City Clerk
DATE: April 4, 2025
SUBJECT: Ordinance No. 3466-2025 - Amending Kenai Municipal Code, Title 2 -
Alcoholic Beverage and Marijuana, Standardizing How Licenses are
Reviewed by the City, Allowing for Administrative Non -Objections for
Renewal of Existing Licenses when No Grounds to Object to the Renewal
are Identified, Updating Public Hearings for Protests or Conditional Non -
Objections, Aligning Municipal Code with Requirements of Alaska
Statutes, and Other Housekeeping Amendments.
During the April 2, 2025 City Council provided direction to update Kenai Municipal Code (KMC)
Title 2. If approved the Ordinance will make the following changes to KMC Title 2:
Chapter 2.05 - Definitions: This chapter was updated to include new definitions for "Board" and
"License." These additions enable consistent reference throughout the code to the Alaska
Alcoholic Beverage Control Board and Alaska Marijuana Control Board simply as "Board," and to
Liquor and Marijuana Licenses collectively as "License."
Chapter 2.10 - Review of License: This chapter underwent substantial updates, including two
new sections, revisions to public hearing procedures for alignment with State statute, and general
housekeeping amendments:
2.10.005 - Active License Review. This section implements Council's request to receive an
annual list of active licenses operating in the city, submitted no later than:
October 31 for liquor licenses (expire December 31 every two years).
June 30 for marijuana licenses (expire August 31 annually).
This new section will allow timely review by City Council before the protest deadlines issued
by the Board.
2.10.010 - Review of Application. Formalizes the internal review process used when a license
application is received from the Board; allows for administrative issuance of non -objection
when no issues are identified; and clear guidance when a protest or conditional non -objection
are warranted.
2.10.020 - Public Hearings. Rewritten to align with the Alaska Administrative Code regarding
liquor license protests. Note: The provisions formarijuana licenses is fora hearing before the
Marjuana Control Board. Holding a public hearing during a City Council meeting would show
local process prior to the issuance of a protest.
2.10.020 - Police to Investigate. Proposed for repeal. Police review is now identified in the
new section 2.10.010.
2.10.030 - Review Standards. Rephrased for clarity and ease of interpretation.
Chapter 2.15 Conformity to State Liquor Laws: The single section within this chapter was
rewritten to refer to subject matter rather than referencing specific Alaska Statute sections, which
may change over time.
Chapter 2.20 - Sales on Election Day: The single section within this chapter was updated to
refer to the subject matter rather than referencing a specific Alaska Statue section, which may
change over time.
Chapter 2.25 - Consumption: No proposed changes to this chapter.
Chapter 2.35 - Violations of Chapter: Update to reflect that City only prosecutes minor offences
and to reference the appropriate section of KMC regarding penalties.
Chapter 2.40 - Approval of Activity of a Licensee: Both sections were rewritten to modernize
the language. The intent remains unchanged.
Thank you for your consideration.
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