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2025-12-03 City Council Packet
Kenai City Council - Regular Meeting Page 1 of 3 December 03, 2025 Kenai City Council - Regular Meeting December 03, 2025 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. Bluff Stabilization Project Completion Update, Ronny McPherson, P.E., HDR Alaska Inc. C. SCHEDULED PUBLIC COMMENTS (Public comments limited to ten (10) minutes per speaker; twenty (20) minutes aggregated) 1. Brandi Bell, Kenaitze Indian Tribe Transportation Manager D. UNSCHEDULED PUBLIC COMMENTS (Public comments limited to three (3) minutes per speaker; thirty (30) minutes aggregated) E. PUBLIC HEARINGS 1. Resolution No. 2025-67 - Authorizing the Purchase of Property Interests from the Kenai Native Association for the Wildwood Drive Rehabilitation Project and Determining that the Public Interest will not be Served by an Appraisal. (Administration) 2. Resolution No. 2025-68 - Adopting an Alternative Allocation Method for the Fiscal Year 2026 Shared Fisheries Business Tax Program and Certifying that This Allocation Method Fairly Represents the Distribution of Significant Effects of Fisheries Business Activity in Fisheries Management Area 14: Cook Inlet Area. (Administration) 3. Resolution No. 2025-69 - Authorizing a Contract Award for the City Of Kenai Architectural Services Project. (Administration F. MINUTES 1. *Regular Meeting of November 19, 2025. (City Clerk) G. UNFINISHED BUSINESS Page 1 Kenai City Council - Regular Meeting Page 2 of 3 December 03, 2025 H. NEW BUSINESS 1. *Action/Approval - Bills to be Ratified. (Administration) 2. *Action/Approval - Special Use Permit to American Red Cross for Office Space and Parking at the Alaska Regional Fire Training Facility. (Administration) 3. *Action/Approval - Special Use Permit to Echo Lake Meats, LLC for a Vending Machine in the Airport Terminal Building. (Administration) 4. *Action/Approval - Special Use Permit to Aleutian Airways for Warm Storage. (Administration) 5. *Action/Approval - Special Use Permit to Schillings Alaska, Inc. for Snow Storage. (Administration) 6. *Action/Approval - Special Use Permit to Alaska Sure Seal, Inc. for Snow Storage. (Administration) 7. *Ordinance No. 3496-2025 - Increasing Estimated Revenues and Appropriations in the General Fund to Provide Supplemental Funding for Utilities and Building Maintenance Costs in Excess of Budgeted Amounts for the Challenger Learning Center. (Administration) 8. Discussion/Action - Scheduling a Joint Work Session with the Kenaitze Indian Tribe. (Knackstedt) 9. Discussion/Action - Scheduling a Budget Goals and Capital Improvement Plan Work Session. (Administration) I. COMMISSION 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 1. Mayor Proclamation - In Recognition of Kenai Central High School Girls Varsity Volleyball Team at the Alaska Division 3A State Girls Champions for the Year 2025. 2. Mayoral Proclamation - In recognition of the Kenai Central High School Marching Band at the Bands of America Grand National Championships. 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 Page 2 Kenai City Council - Regular Meeting Page 3 of 3 December 03, 2025 M. EXECUTIVE SESSION 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 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/vQYOVbySQpGLmhllhjcGjg Page 3 Sponsored by: Administration New Text Underlined; [DELETED TEXT BRACKETED] CITY OF KENAI RESOLUTION NO. 2025-67 A RESOLUTION AUTHORIZING THE PURCHASE OF PROPERTY INTERESTS FROM THE KENAI NATIVE ASSOCIATION FOR THE WILDWOOD DRIVE REHABILITATION PROJECT AND DETERMINING THAT THE PUBLIC INTEREST WILL NOT BE SERVED BY AN APPRAISAL. WHEREAS, the City of Kenai has authorized the Wildwood Drive Rehabilitation Project in the Fiscal Year 2026 budget in the amount of $1,200,000; and, WHEREAS, the Wildwood Drive Rehabilitation Project is a high priority for the City, having been identified in prior Capital Improvement Plans and listed as the number one project in the FY2026-2030 Capital Improvement Plan; and, WHEREAS, the project requires acquisition of certain property interests from the Kenai Native Association, Inc. (KNA) to construct and maintain an outfall sewer and access road; and, WHEREAS, pursuant to Kenai Municipal Code 22.05.135 (a), the City may acquire property needed for a public use on such terms and conditions as the Council determines; however, no purchase shall be made until a qualified appraiser has appraised the property and given the Council an independent opinion as to the full and true value, unless the Council, by resolution, finds that the public interest will not be served by an appraisal; and, WHEREAS, the property underlying the Wildwood Drive and Cook Inlet Drive rights-of-way was appraised in 2011 by MacSwain Associates, LLC, with a market value estimate of $395,000; and, WHEREAS, the negotiated purchase price for the required right-of-way interests is $200,000 and the public interest will not be served by an appraisal; and, WHEREAS, a draft Quitclaim Deed, attached as Exhibit A, includes the legal description of the property interests to be conveyed; and, WHEREAS, the City has completed design plans and is coordinating with the Alaska Department of Transportation & Public Facilities to identify funding sources and align construction with the contractor’s schedule for the Kenai Spur Highway project, positioning Wildwood Drive improvements for construction during the 2026 season; and, WHEREAS, acquiring the required property interests from KNA is necessary for the completion of the project during the 2026 construction season and is in the best interests 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 negotiate and execute a purchase agreement with the Kenai Native Association, Inc., in a form approved by the City Attorney, for the acquisition of the property interests required for the Wildwood Drive Rehabilitation Project. Section 2. That the City Manager is further authorized to execute a Quitclaim Deed and any other documents necessary to complete the transfer of those property interests, in a form approved by the City Attorney. Page 4 Resolution No. 2025-67 Page 2 of 2 New Text Underlined; [DELETED TEXT BRACKETED] Section 3. That the Kenai City Council finds that acquisition of the subject property interests is in the best interests of the City, that the public interest will not be served by an appraisal, and that the City may acquiring the property for $200,000 plus any necessary closing costs. Section 4. That this Resolution takes effect immediately upon passage. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 3RD DAY OF DECEMBER, 2025. ___________________________________ Henry H. Knackstedt, Mayor ATTEST: ___________________________________ Michelle M. Saner, MMC, City Clerk Approved by Finance: _________________ Page 5 MEMORANDUM TO: Mayor Knackstedt and Council Members FROM: Terry Eubank, City Manager DATE: November 21, 2025 SUBJECT: Resolution 2025-67 – Acquisition of Property Interests from the Kenai Native Association for the Wildwood Drive Rehabilitation Project This resolution authorizes the City to purchase property interests from the Kenai Native Association, Inc. (KNA) needed for the Wildwood Drive Rehabilitation Project and finds that obtaining a new appraisal is not in the public interest. The Wildwood Drive Rehabilitation Project is the City’s top priority in the FY2026–2030 Capital Improvement Plan, with $1,200,000 appropriated for this project in the FY2026 budget. As part of the project design, it was determined that the City must acquire specific right-of-way interests from KNA. Without these property interests, the project cannot proceed to construction utilizing available funds during the 2026 construction year. Kenai Municipal Code 22.05.135(a) requires an appraisal before the purchase of property unless the Council finds it would not serve the public interest. In this case, the underlying property was previously appraised in 2011 by MacSwain Associates, LLC, for $395,000. Based on that prior valuation and the limited nature of the required interests, the Administration and KNA negotiated a proposed purchase price of $200,000. The City Attorney will review the final documents for form and legal compliance prior to execution. Project design is complete, and staff are coordinating with the Alaska Department of Transportation & Public Facilities to identify funding opportunities and align construction with the Kenai Spur Highway project. This coordination positions Wildwood Drive improvements for construction during the 2026 season. Acquisition of the property interests are necessary for the completion of the Wildwood Drive Rehabilitation Project and is in the City’s best interest. Given the prior appraisal and negotiated price, obtaining a new appraisal would not serve the public interest and would delay the project. Passage of this resolution will allow the City Manager to move forward with execution of the purchase agreement, Quitclaim Deed, and associated documents, with a total acquisition cost not to exceed $200,000 plus any necessary closing costs. Thank you for your consideration. Page 6 QUITCLAIM DEED The Kenai Native Association, Inc. (hereinafter GRANTOR), an Alaska Native Village Corp. organized under the laws of the State of Alaska, whose address is 215 Fidalgo Street, Suite 204B, Kenai, Alaska 99611, for and in consideration of the sum of TEN DOLLARS ($10.00) and other valuable consideration does hereby convey and quitclaim all right, title and interest to the City of Kenai, (hereinafter GRANTEE), whose address is 210 Fidalgo Ave., Kenai, Alaska 99611, for a road and outfall sewer right-of-way known as Wildwood Station Road, Wildwood Drive, Wildwood Road, Wildwood Extended, U.S. Military Right-of-Way, Military Reservation Road, Sanitary Outfall Sewer Line Right of Way, and Cook Inlet View Dr., including all water and sewer lines and improvements contained thereon extending as shown on Tract 4, Wildwood Corrections Plat KN 92-73, to the Cook Inlet, all within the Kenai Recording District, Alaska, more particularly described as follows: An 80-foot right-of-way for construction of and outfall sewer, being 40 feet each side of the centerline of manholes and more particularly described as: Starting from the center quarter corner of Sec. 25, T6N, R12W, Seward Meridian, thence North 74 feet along center section line to the centerline of outfall sewer which is the point of beginning , thence South 45 degrees 05 minutes West 1,290 feet to the center of Manhole No. 15; thence South 44 degrees 53 minutes West 1,161 feet to the centerline of the Kenai Spur Road; thence South 45 degrees13 minutes West 1,279 feet to the West line of sec. 25; thence South 45 degrees 11 minutes West 113 feet to the South line of Sec. 26; and, A 40 foot strip of land for an access road lying southeasterly and adjacent to the 80 foot right-of-way, ex tending from the military boundary at the quarter section corner of Sec. 25, T6N, R12W, Seward Meridian, to the easterly edge of Kenai Spur Road. Said right-of-way was conveyed to the Kenai Native Association Inc. by the United States of America in U. S. Patent 50-74-0109 dated March 28, 1974. Additionally, any interest conveyed by dedication or vacation of the following platting actions: Carl F. Ahlstrom Subdivision K-216, Black Gold Estates Subdivision Amended K-1399, Black Gold Estates Subd. No.2 KN-84-76, and any express easements of record. Page 7 Sponsored by: Administration New Text Underlined; [DELETED TEXT BRACKETED] CITY OF KENAI RESOLUTION NO. 2025-68 A RESOLUTION ADOPTING AN ALTERNATIVE ALLOCATION METHOD FOR THE FISCAL YEAR 2026 SHARED FISHERIES BUSINESS TAX PROGRAM AND CERTIFYING THAT THIS ALLOCATION METHOD FAIRLY REPRESENTS THE DISTRIBUTION OF SIGNIFICANT EFFECTS OF FISHERIES BUSINESS ACTIVITY IN FISHERIES MANAGEMENT AREA 14: COOK INLET AREA. WHEREAS, Alaska Statute 29.60.450 requires that for a municipality to participate in the FY26 Shared Fisheries Business Tax Program, the municipality must demonstrate to the Department of Community and Economic Development that the municipality suffered significant effects during calendar year 2024 from fisheries business activities; and, WHEREAS, regulation 3 AAC 134.060 provides the allocation method for available program funding to eligible municipalities located within fisheries management areas; and, WHEREAS, regulation 3 AAC 134.070 provides for the use, at the discretion of the Department of Community and Economic Development, of alternative allocation methods which may be used within fisheries management areas if all eligible municipalities within the area agree to use the method, and the method incorporates some measure of the relative significant effect of fisheries business activity on the respective municipalities in the area; and, WHEREAS, utilization of the alternative allocation method under 3 AAC 134.070 is in the best interest of the City. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1. City Council proposes to use an alternative allocation method for allocation of FY26 funding available within FMA 14: Cook Inlet Area in agreement with all other municipalities in this area participating in the FY26 Shared Fisheries Business Tax Program. Section 2. That the Council by this Resolution certifies that the following alternative allocation method fairly represents the distribution of significant effects during 2024 of fisheries business activity in FMA 14: Cook Inlet Area: • That all municipalities share equally 50% of the allocation; all municipalities share the remaining 50% on a per capita basis. Section 3. That this Resolution takes effect immediately upon passage. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 3RD DAY OF DECEMBER 2025. ___________________________________ Henry H. Knackstedt, Mayor ATTEST: ___________________________________ Michelle M. Saner, MMC, City Clerk Page 8 MEMORANDUM TO: Mayor Knackstedt and Council Members THROUGH: Terry Eubank, City Manager FROM: David Swarner, Finance Director DATE: December 3, 2025 SUBJECT: Resolution No. 2025-68 - Adopting an Alternative Allocation Method for the Fiscal Year 2026 Shared Fisheries Business Tax Program and Certifying that this Allocation Method Fairly Represents the Distribution of Significant Effects of Fisheries Business Activity in Fisheries Management Area 14: Cook Inlet Area. The City receives revenue from the State of Alaska for fish tax collected by the State in two different methods. The Department of Revenue (DOR) distributes “Raw Fish Tax,” fisheries business taxes, fishery resource landing taxes, salmon marketing tax, and other seafood taxes from licensed seafood processors, floating processors, and seafood exporters, to eligible municipalities as prescribed in AS 43.77.060. The second method by which the City receives fish tax revenue is through the Alaska Department of Commerce Community and Economic Development (ADCCED) Shared Fisheries Business Tax Program. ADCCED receives 50% of the undistributed Raw Fish Tax from the DOR to distribute to impacted communities. For the Cook Inlet Fisheries Management Area, which the City is a part of, the amount to be distributed in FY26 is $6,440.14. Ten communities will receive a portion of that amount with the City of Kenai estimated to receive $385.79. There are two methods of allocation for the Shared Fisheries Business Tax. The first method involves a lengthy application process in which the applicants must show the impact to their local community of the fishing industry. Once impact is shown, half of the total amount to be distributed ($3,220.07 for FY2026) is divided equally amongst the communities, and the remaining half ($3,220.07 for FY2026) is distributed based upon the impact shown in their application. The second method permits all communities in Fisheries Management Area to elect an alternate method of allocation. This alternate method eliminates the lengthy community application process. Since inception of the Share Fisheries Business Tax Program in fiscal year 1992, the communities of the Cook Inlet Fisheries Management Area have selected the alternate allocation method. A resolution like 2025-68 has been adopted every year since fiscal year 1992 and is a required step to elect the alternate allocation method. Page 9 Page 2 of 2 Resolution 2025-68 Page 2 of 2 The alternate method elected by the Cook Inlet Fisheries Management Area for FY26 will again include an equal distribution of one-half the total and the remaining half is distributed based upon population of the community. The ten communities in the Cook Inlet Fisheries Management Area are Anchorage, Homer, Kachemak, Kenai, Kenai Peninsula Borough, Seldovia, Seward, Soldotna, Houston, and Palmer. Allocations to each community under the alternative allocation method will be the following: Anchorage $2,776.90 Kenai Peninsula Borough $839.98 Homer 369.69 Seward 342.98 Kachemak 327.72 Soldotna 360.44 Kenai 385.79 Houston 340.70 Seldovia 324.05 Palmer 371.89 Thank you for your consideration. Page 10 Sponsored by: Administration New Text Underlined; [DELETED TEXT BRACKETED] CITY OF KENAI RESOLUTION NO. 2025-69 A RESOLUTION AUTHORIZING A CONTRACT AWARD FOR THE CITY OF KENAI ARCHITECTURAL SERVICES PROJECT. WHEREAS, a Request for Proposals was released on October 29, 2025 with proposals due on November 20, 2025 for the City of Kenai Architectural Services project; and, WHEREAS, two proposals were received Consultant Total Score K+A designstudios 289.50 MCG Explore Design 279.61; and, WHEREAS, K+A designstudios was the highest-ranking proposal with a cost of $363,730 for architectural design services; and, WHEREAS, the proposals were determined to be responsive and responsible; and, WHEREAS, the architectural services will design several improvements and renovations for the Senior Center, Vintage Pointe, Animal Control Building and City Hall; and, WHEREAS, it is in the best interest of the City to award the contract to K+A designstudios. 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 with K+A designstudios in the amount of $363,730 for the City of Kenai Architectural Services project. Section 2. That this Resolution takes effect immediately upon passage. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 3RD DAY OF DECEMBER 2025. ___________________________________ Henry Knackstedt, Mayor ATTEST: ___________________________________ Michelle M. Saner, MMC, City Clerk Approved by Finance: _________________ Page 11 MEMORANDUM TO: Mayor Knackstedt and Council Members THROUGH: Terry Eubank, City Manager FROM: Lee Frey, Public Works Director DATE: November 24, 2025 SUBJECT: Resolution No. 2025-69 - Authorizing a Contract Award for the City of Kenai Architectural Services Project. This memo requests Council’s approval to award a contract for the City of Kenai Architectural Services Contract. The project was released for proposals and two proposals were received. Proposals were reviewed and scored by and evaluation committee and scores are as follows: Consultant Total Score K+A designstudios 289.50 MCG Explore Design 279.61 K+A designstudios was the highest ranking proposer for the project with an associated cost of $363,730 for the architectural design services. The Architectural Services project will consist of design work for reroofing the canopy at the Senior Center, modifying the front entry at the Senior Center, kitchen, bathroom and elevator renovations at Vintage Pointe, reroofing the Animal Control Building and HVAC, exterior, front entry and elevator improvements at City Hall. Award of this agreement is in the best interest of the City. Council’s approval is respectfully requested. Page 12 KENAI CITY COUNCIL – REGULAR MEETING NOVEMBER 19, 2025 – 6:00 P.M. KENAI CITY COUNCIL CHAMBERS 210 FIDALGO AVE., KENAI, AK 99611 MAYOR HENRY H. KNACKSTEDT, PRESIDING City of Kenai Council Meeting Page 1 of 7 November 19, 2025 MINUTES A. CALL TO ORDER A Regular Meeting of the Kenai City Council was held on November 19, 2025, in City Hall Council Chambers, Kenai, AK. Mayor Knackstedt called the meeting to order at approximately 6:00 p.m. 1. Pledge of Allegiance Mayor Knackstedt led those assembled in the Pledge of Allegiance. 2. Roll Call There were present: Henry Knackstedt, Mayor Victoria Askin, Vice Mayor Phil Daniel Deborah Sounart Bridget Grieme Sovala Kisena A quorum was present. Absent: None Also in attendance were: **Josh Bolling, Student Representative Terry Eubank, City Manager Scott Bloom, City Attorney David Swarner, Finance Director Kevin Buettner, Planning Director Lee Frey, Public Works Director Dave Ross, Police Chief Logan Parks, Deputy City Clerk Shellie Saner, City Clerk 3. Agenda and Consent Agenda Approval Mayor Knackstedt noted the following additions to the Packet: Add to item E.1. Council Appointment • Public Comments Add to item F.2. Public Hearing - Ordinance No. 3493-2025 • Amendment Memo MOTION: Vice Mayor Askin MOVED to approve the agenda and consent agenda with the requested revisions. Council Member Phil Daniel SECONDED the motion. The items on the Consent Agenda were read into the record. Mayor Knackstedt opened the floor for public comment on consent agenda items; there being no one wishing to be heard, the public comment period was closed. Page 13 City of Kenai Council Meeting Page 2 of 7 November 19, 2025 UNANIMOUS CONSENT was requested. VOTE: There being no objection; SO ORDERED. *All items listed with an asterisk (*) are considered to be routine and non-controversial by the council and will be approved by one motion. There will be no separate discussion of these items unless a council member so requests, in which case the item will be removed from the consent agenda and considered in its normal sequence on the agenda as part of the General Orders. B. SCHEDULED ADMINISTRATIVE REPORTS - None. C. SCHEDULED PUBLIC COMMENTS - None. D. UNSCHEDULED PUBLIC COMMENTS - None. E. COUNCIL APPOINTMENT 1. Selection of Appointee with the Continuation of Interviews if Needed. [Clerk's Note: Council May Convene into Executive Session to Discuss this Agenda Item which May be a Subject that Tends to Prejudice the Reputation and Character of the Candidate for the Vacant City Council Seat. (AS 44.62.310(C)(2))] It was reported that a vacancy on City Council was declared on October 15, 2025, with an effective date of October 20, 2025. Pursuant to Kenai Municipal Charter Section 2-9, Council vacancies are filled by appointment. Four qualified applicants applied and were interviewed during a work session prior to the meeting; and a review of the voting procedures as established in Council Policy 20.220 was provided. MOTION: Vice Mayor Askin MOVED to begin the voting process by secret ballot. Council Member Sounart SECONDED the motion. UNANIMOUS CONSENT was requested on the motion. VOTE: There being no objection; SO ORDERED. FIRST VOTE: Douthit Miller Pettey Bannock 6 2 9 1 Applicants Alexander Douthit, Michelle Miller Obay, and Glenese Pettey were moved forward to the second Voting Cycle. SECOND VOTE: Douthit Miller Pettey 6 4 8 Applicants Alexander Douthit and Glenese Pettey were moved forward to the third Voting Cycle. THIRD VOTE: Douthit Pettey 2 4 MOTION: Page 14 City of Kenai Council Meeting Page 3 of 7 November 19, 2025 Vice Mayor Askin MOVED to appoint Glenese Pettey to City Council. Council Member Sounart SECONDED the motion. VOTE: YEA: Knackstedt, Sounart, Askin, Kisena NAY: Daniel, Grieme MOTION PASSED. 2. Appointee Oath of Office [Clerk’s Note: Newly appointed Council Member Pettey was administered her oath of office.] F. PUBLIC HEARINGS 1. Ordinance No. 3492-2025 - Increasing Estimated Revenues and Appropriations in the General Fund - Streets Department for Replacement of Damaged Guard Rail on Beaver Loop Road. (Administration) MOTION: Vice Mayor Askin MOVED to enact Ordinance No. 3492-2025. Council Member Sounart SECONDED the motion. Mayor Knackstedt opened the floor for public comment. There being no one wishing to be heard, the public comment period was closed. MOTION TO AMEND: Vice Mayor Askin MOVED to amend Ordinance No. 3492-2025 as follows: Insert a new fourth WHERAS clause to read, “the damage is covered by the City’s insurance less a $1,000 deductible; and,” Amend Section 1, to read, “That estimated revenues and appropriations in the General Fund – Streets Department are hereby increased as follows: General Fund: Increase Estimated Revenues - [APPROPRIATION OF FUND BALANCE] Restitution $19,000 Increase Appropriations – Street Department - Repair and Maintenance $19,000” Council Member Sounart SECONDED the motion. VOTE ON MOTION TO AMENDED: YEA: Sounart, Askin, Grieme, Kisena, Pettey, Knackstedt, Daniel NAY: None **Student Representative Bolling: YEA MOTION TO AMEND PASSED. Clarification was provided regarding price increases; damage to City property; and restitution claims. VOTE ON MAIN MOTION AS AMENDED: YEA: Sounart, Askin, Grieme, Kisena, Pettey, Knackstedt, Daniel NAY: None **Student Representative Bolling: YEA MAIN MOTION AS AMENDED PASSED. Page 15 City of Kenai Council Meeting Page 4 of 7 November 19, 2025 2. Ordinance No. 3493-2025 - Increasing Estimated Revenues and Appropriations in the General Fund - Buildings Department for Replacement of the Cooling System in the City’s Data Center. (Administration) MOTION: Vice Mayor Askin MOVED to enact Ordinance No. 3493-2025. Council Member Sounart SECONDED the motion. Mayor Knackstedt opened the floor for public comment. There being no one wishing to be heard, the public comment period was closed. MOTION TO AMEND: Vice Mayor Askin MOVED to amend Ordinance No. 3493-2025 as follows: Amend the third Whereas clause to read, “the cost to replace the cooling system is estimated at $[20,000] 25,000 which was not budgeted; and” Council Member Pettey SECONDED the motion. UNANIMOUS CONSENT was requested on the motion to amend. VOTE: There being no objection; SO ORDERED. VOTE ON MAIN MOTION AS AMENDED: YEA: Askin, Grieme, Kisena, Pettey, Knackstedt, Daniel, Sounart NAY: None **Student Representative Bolling: YEA MAIN MOTION AS AMENDED PASSED. 3. Ordinance No. 3494-2025 - Amending the Official Zoning Map by Rezoning Seven Lots and One Tract to Urban Residential and Two Tracts to Suburban Residential Along Redoubt Avenue, from 4th Street to Floatplane Road. (Administration) MOTION: Vice Mayor Askin MOVED to enact Ordinance No. 3494-2025. Council Member Pettey SECONDED the motion. Mayor Knackstedt opened the floor for public comment. There being no one wishing to be heard, the public comment period was closed. Clarification was provided regarding rural residential and urban residential zoning. VOTE: YEA: Grieme, Kisena, Pettey, Knackstedt, Daniel, Sounart, Askin NAY: None **Student Representative Bolling: YEA MOTION PASSED. 4. Ordinance No. 3495-2025 - Authorizing the Reallocation of Capital Project Funds, an Increase to Estimated Revenue and Expenditures, and Approving the Sole-Source Purchase of Two Patient Power Load Systems for Ambulances. (Administration) MOTION: Vice Mayor Askin MOVED to enact Ordinance No. 3495-2025. Council Member Sounart SECONDED the motion. Mayor Knackstedt opened the floor for public comment. There being no one wishing to be heard, the public comment period was closed. Page 16 City of Kenai Council Meeting Page 5 of 7 November 19, 2025 Clarification was provided regarding the purpose of the devices and future eligibility of the City for grant funding for the purchases. VOTE: YEA: Kisena, Pettey, Knackstedt, Daniel, Sounart, Askin, Grieme NAY: None **Student Representative Bolling: YEA MOTION PASSED. G. MINUTES 1. *Regular Meeting of November 5, 2025. (City Clerk) H. UNFINISHED BUSINESS - None. I. NEW BUSINESS 1. *Action/Approval - Bills to be Ratified. (Administration) Approved by the consent agenda. 2. *Action/Approval - Purchase Orders and Purchase Order Amendments Requiring Council Approval in Accordance with KMC 7.15.020. (Administration) Approved by the consent agenda. 3. *Action/Approval - Amending Special Use Permit for Weaver Brothers, Inc. for Truck Trailer Storage. (Administration) Approved by the consent agenda. 4. Action/Approval - Directing the Administration to Bring Forward the Legislation Necessary to Sunset the City of Kenai Harbor Commission. (City Clerk) MOTION: Vice Mayor Askin MOVED to direct the Administration to bring forward the necessary legislation. Council Member Sounart SECONDED the motion. Clarification was provided that the City would still be eligible for grant funding for improvements at the City Dock; and the Harbor Commission could be reinstated if needed in the future. UNANIMOUS CONSENT was requested on the motion. VOTE: There being no objection; SO ORDERED. 5. Discussion/Action - Scheduling a Work Session to Discuss Challenger Center. (Administration) The work session was scheduled for December 17, 2025 at 5:00pm. J. COMMISSION / COMMITTEE REPORTS 1. Council on Aging Commission Vice Mayor Askin reported on the November 13, 2025 meeting, next meeting December 11, 2025. 2. Airport Commission Council Member Sounart reported on the November 13, 2025 meeting, next meeting December 11, 2025. 3. Harbor Commission Council Member Kisena reported on the November 10, 2025 meeting, next meeting December 8, 2025. Page 17 City of Kenai Council Meeting Page 6 of 7 November 19, 2025 4. Parks and Recreation Commission No report, next meeting December 4, 2025. 5. Planning and Zoning Commission Council Member Kisena reported on the November 12, 2025 meeting, next meeting December 10, 2025. 6. Beautification Commission No report. K. REPORT OF THE MAYOR Mayor Knackstedt reported on the following: • Congratulated Council Member Pettey on her appointment and thanked all applicants for their interest. • Attending the November 19, 2025 Chamber of Commerce Meeting; the Bronze Bear Project unveiling; and a transportation meeting with Kenaitze Indian Tribe. • Meeting with the City’s auditor team, noting the annual audit report was anticipated to be complete in January. • Recognized the Kenai Central High School Girls’ Varsity Volleyball team for their accomplishments. L. ADMINISTRATION REPORTS 1. City Manager - City Manager Eubank reported on the following: • Police Officer Herrin resigned after ten-years of service. • Welcomed Laura Russel to the Library, Dawson Shangin to the Streets Department, and Christina Case to the W astewater plant. • Ongoing recruitment for Airport Manager and Police Officer. • Attending the 2025 Municipal Tax Conference in Anchorage. • The community survey reached its target sample of 300 responses; it will be opened to the public next week. • Meeting with the Federal Aviation Administration to discuss Airport capital planning, compliance, and updates. • Grant Aviation has resumed a normal schedule; added a third daily plane on weekends surrounding Thanksgiving; and added additional weekday round. • Aleutian has reduced flights to three per week due to aircraft availability and pending FAA approval of an alternative aircraft; service is expected to increase once approval is received. • A conditional offer has been extended for the Chief Animal Control Officer. 2. City Attorney - No report. 3. City Clerk - City Clerk Saner reported on the following: • December 3, 2025 Work Session City election preparations. M. ADDITIONAL PUBLIC COMMENTS 1. Citizen Comments (Public comments limited to (5) minutes per speaker) Page 18 City of Kenai Council Meeting Page 7 of 7 November 19, 2025 Duane Bannock congratulated Council Member Pettey and thanked the Council for the opportunity to speak; expressed concerns about the City’s condition; thanked the Council for their service; and said he will continue providing input in the coming year. Samantha Springer, Executive Director of the Kenai Chamber of Commerce, provided an update on Christmas Comes to Kenai; and the Kenai Chamber’s angel tree program is experiencing a significant increase. 2. Council Comments Council Member Pettey stated it was an honor to be on the Council and she was looking forward to a productive year. Council Member Grieme noted she was excited about the upcoming Christmas Comes to Kenai event; reported attending the Bronze Bear statue unveiling; and stated her appreciation for the City’s road maintenance. Student Representative Bolling provided an update on Kenai Central High School sports activities, theater activities; and thanked the Council and Administration for their continued support to students. Council Member Sounart thanked all who applied for the Council appointment; reported attending the Bronze Bear statue unveiling and stated her appreciation for all who were involved in the Bronze Bear project. Vice Mayor Askin thanked all who applied for the Council appointment; reported attending the Bronze Bear statue unveiling and the Boys and Girls Club annual fundraiser; and wished everyone a Happy Thanksgiving. Council Member Daniel congratulated Council Member Pettey on her appointment; thanked all who applied for the Council appointment and Mr. Bannock for his comments. Council Member Kisena welcomed Council Member Pettey; and thanked all who applied for Council appointment. N. EXECUTIVE SESSION - None. O. PENDING ITEMS P. ADJOURNMENT Q. INFORMATIONAL ITEMS - None. There being no further business before the Council, the meeting was adjourned at 7:32 p.m. I certify the above represents accurate minutes of the Kenai City Council meeting of November 19, 2025. ___________________________________ 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 will not affect the outcome of the official council vote. Advisory votes will be recorded in the minutes. A student representative may not move or second items during a council meeting. Page 19 PAYMENTS OVER $35,000.00 WHICH NEED COUNCIL RATIFICATION COUNCIL MEETING OF: DECEMBER 3, 2025 VENDOR DESCRIPTION DEPARTMENT ACCOUNT AMOUNT PERS PERS VARIOUS LIABILITY 124,361.54 HOMER ELECTRIC ELECTRIC USAGE VARIOUS UTILITIES 116,646.15 INVESTMENTS VENDOR DESCRIPTION MATURITY DATE AMOUNT Effect. Int. Page 20 MEMORANDUM TO: Mayor Knackstedt and Council Members THROUGH: Terry Eubank, City Manager FROM: Mary Bondurant, Interim Airport Manager DATE: November 20, 2025 SUBJECT: Action/Approval - Special Use Permit American Red Cross American Red Cross is requesting to renew their Special Use Permit that expires on November 30, 2025. The American Red Cross is a nonprofit corporation that provides services to the Kenai Peninsula including house and forest fire response, smoke alarm installation, preparedness training, etc. The permit is for approximately 475 square feet of office space on the second floor of the Alaska Regional Fire Training Center. The permit fee is $1.00 per month plus $211.44 per month for utility costs plus applicable tax. The Special Use Application fee of $100 has been paid and the Airport has a current Certificate of Insurance on file. The American Red Cross is current in all fees owed to the City Airport Commission reviewed the application at the November 13, 2025 and recommends City Council approval. Does Council recommend the City Manager enter into a Special Use Permit with the American Red Cross? Thank you for your consideration. attachment Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 MEMORANDUM TO: Mayor Knackstedt and Council Members THROUGH: Terry Eubank, City Manager FROM: Mary Bondurant, Interim Airport Manager DATE: November 20, 2025 SUBJECT: Action/Approval - Special Use Permit Echo Lake Meats, LLC Echo Lake Meats, LLC is requesting to renew their Special Use Permit that expires on December 31, 2025 under the same terms and conditions. The permit is for approximately 20 square feet on the first floor of the terminal building for a vending machine. The semi-annual permit fee is $535.00 plus applicable tax. The Special Use Application fee of $100 has been paid and the Airport has a current Certificate of Insurance on file. Echo Lake Meats LLC is current on all fees owed to the City. Airport Commission reviewed the application at the November 13, 2025 and recommends City Council approval. Does Council recommend the City Manager enter into a Special Use Permit with Echo Lake Meats LLC? Thank you for your consideration. attachment Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40 MEMORANDUM TO: Mayor Knackstedt and Council Members THROUGH: Terry Eubank, City Manager FROM: Mary Bondurant, Interim Airport Manager DATE: November 20, 2025 SUBJECT: Action/Approval - Special Use Permit Aleutian Airways Warm Storage Aleutian Airways, is requesting a Special Use Permit for 1,200 square feet in Warm Storage 1 for heated storage of their de-icing vehicle. This Special Use Permit will be effective December 1, 2025 through April 30, 2026 for a monthly fee of $1,200 plus applicable tax. The Special Use Application Fee of $100 has been paid. Aleutian Airways is current in all fees owed to the City and a Certificate of Insurance is on file. Does Council recommend the City Manager enter into a Special Use Permit with Aleutian Airways? Thank you for your consideration. attachment Page 41 Page 42 Page 43 Page 44 Page 45 Page 46 Page 47 Page 48 MEMORANDUM TO: Mayor Henry Knackstedt and Kenai City Council THROUGH: Terry Eubank, City Manager THROUGH: Kevin Buettner, Planning Director FROM: Brandon McElrea, Land Management Analyst DATE: November 14, 2025 SUBJECT: Action /Approval - Special Use Permit for Snow Storage for Schilling Alaska, Inc. Schilling Alaska, Inc. (“Schilling”) has requested a Special Use Permit to store snow on approximately 7,500 square feet on Tract C of Daubenspeck Property Subdivision, located at 170 Bridge Access Road. Schilling has been granted special use permits for the Uptown Motel to store snow since 2018. Schilling has been compliant with the terms of their special use permits. The proposed permit fee is $493.00 plus applicable sales tax for certain periods in 2026, a six- month period from January through April, and November through December 2026. Schilling will be required to carry adequate insurance, use the premises only for snow storage, store snow in a manner that would not limit sight lines for drivers or impact City snow clearing, and remove any trash or debris remaining after the snow has melted, such that the premises are returned to their initial condition. If City Council approves the Special Use Permit, the City Manager will be authorized to execute the Special Use Permit Agreement. Thank you for your consideration. Attachments Location Map Special Use Permit Agreement Page 49 Page 50 Special Use Permit – Schilling Alaska, Inc. – 2026 Snow Storage Page 1 of 6 SPECIAL USE PERMIT The CITY OF KENAI (City), for the consideration, and pursuant to the conditions set out below, hereby grants to SCHILLING ALASKA, INC. (PERMITTEE), the non-exclusive right to use 7,500 square feet of area as described below: TRACT C, DAUBENSPECK PROPERTY SUBDIVISION and as further shown in the attached Location Map. 1. TERM. This special use permit shall be for approximately six (6) months from January 1, 2026 to April 30, 2026, and from November 1, 2026 to December 31, 2026. 2. PERMIT FEES. The Permittee shall be charged an annual permit fee of $493.00 plus applicable sales tax. The Permittee shall pay the City the permit fee on or before January 1, 2026. Checks, bank drafts, or postal money orders shall be made payable to the City of Kenai and delivered to the City Hall, 210 Fidalgo Avenue, Kenai, Alaska 99611. In addition to the permit fee specified above, the Permittee agrees to pay to the appropriate parties all levies, assessments, and charges as hereinafter provided: A. Sales tax nor enforced, or levied in the future, computed upon the permit fee payable in monthly installments whether said fee is paid on a monthly or yearly basis; B. All necessary licenses and permits; all lawful taxes and assessments which, during the term hereof may become a lien upon or which may be levied by the State, Borough, City, or by any other tax levying body, upon any taxable possessory right which Permittee may have in or to the Premises by reason of its use or occupancy or by reason of the terms of this Permit, provided however, that nothing herein contained shall prevent Permittee from contesting any increase in such tax or assessment through procedures provided by law. C. Interest at the rate of eight percent (8%) per annum and penalties of ten percent (10%) of any amount of money owed under this Special Use Permit which are not paid on or before the due date. D. Costs and expenses incident to this Special Use Permit, including but not limited to recording costs. 3. USE. The use by the Permittee of the Premises is limited to the purpose of Snow Storage. This use is subject to City, Borough, and State laws and regulations and the reasonable administrative actions of the City for the protection and maintenance of the Premises and of adjacent and contiguous lands or facilities. Use of the Premises is subject to the following conditions: Page 51 Special Use Permit – Schilling Alaska, Inc. – 2026 Snow Storage Page 2 of 6 A. Permittee shall use the Premises only for snow storage. B. Snow must be stored in a manner that will not limit sight lines or create other unsafe driving conditions on adjacent right-of-ways. C. The premises shall be returned to its current condition prior to the end of the term of this Special Use Permit. This shall include the removal of any trash or debris that remains after the snow has melted in the spring. Failure to do so will result in Permittee being ineligible for future Special Use Permits for snow storage. D. Snow must be stored in a manner that will not impact any City snow clearing or moving activities. 4. 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, the City is entitled to coverage to the extent of the higher limits. A. Garage Liability or 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 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 for snow moving and storage activities to, from, or on the Premises. 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, 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. Page 52 Special Use Permit – Schilling Alaska, Inc. – 2026 Snow Storage Page 3 of 6 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 within 30 days of the effective date of the Special Use Permit. The effective date of the insurance shall be no later than January 1, 2026. vi. This insurance shall be primary and exclusive of any other insurance carried by the City of Kenai. This insurance shall be without limitation on the time within which the resulting loss, damage, or injury is actually sustained. 5. INDEMNITY, DEFEND, AND HOLD HARMLESS AGREEMENT. The Permittee shall fully indemnify, hold harmless, and defend the City of Kenai, its officers, agents, employees, and volunteers at its own expense from and against any and all actions, damages, costs, liability, claims, losses, judgments, penalties, including reasonable Attorney’s fees of or for liability for any wrongful or negligent acts, errors, or omissions of the Permittee, its officers, agents or employees, or any subcontractor under this Permit. The Permittee shall not be required to defend or indemnify the City for any claims of or liability for any wrongful or negligent act, error, or omission solely due to the independent negligence of the City. If there is a claim of or liability for the joint negligence of the Permittee and the independent negligence of the City, the indemnification and hold harmless obligation shall be apportioned on a comparative fault basis. Apportionment shall be established upon final determination of the percentage of fault. If any such determination is by settlement, the percentage of fault attributed to each party for purposes of this indemnification provision shall only be binding upon the parties included in the settlement agreement. “Permittee” and “City” as used in this article include the employees, agents, officers, directors, and other contractors who are directly responsible, respectively, for each party. The term “independent negligence of the City” is negligence other than in the City’s selection, administration, monitoring, or controlling of the Permittee. 6. PERMITTEE’S OBLIGATION TO PREVENT AND REMOVE LIENS. Permittee will not permit any liens, including mechanic’s, laborer’s, construction, supplier’s, mining, or any other liens obtainable or available under existing law, to stand against the Premises or improvements on the Premises for any labor or material furnished to Permittee or to any related entity or claimed entity. The Permittee shall have the right to provide a bond as contemplated by State of Alaska law and contest the validity or amount of any such lien or claimed lien. Upon the final determination of the lien or claim for lien, the Permittee will immediately pay any judgment rendered with all proper costs and charges and shall have such lien released or judgment satisfied at Permittee’s own expense. 7. PERSONALTY. Permittee shall remove any and all personal property, including all vehicles, from the Premises at the termination of this Permit. Personal property placed or used upon the Premises and not removed upon termination of this Permit will be removed and/or impounded by the City. Property removed or impounded by the City may be redeemed by the owner thereof only upon the payment to the City of the costs of removal plus a storage fee of $25 per day. The City of Kenai is not responsible for any damage to or theft of any personalty of Permittee or its customers. Page 53 Special Use Permit – Schilling Alaska, Inc. – 2026 Snow Storage Page 4 of 6 8. FORBEARANCE. Failure to insist upon a strict compliance with the terms, conditions, and/or any requirement 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. 9. TERMINATION, DEFAULT. This Permit may be terminated by either party hereto by giving 30 days advance written notice to the other party. The City may terminate the Permit immediately, or upon notice shorter than 30 days, to protect public health and safety. The City may also terminate this Permit immediately, or upon notice shorter than 30 days, due to a failure of Permittee to comply with conditions and terms of this Permit, which failure remains uncured after notice by City to Permittee providing Permittee with a reasonable time period to correct the violation or breach. 10. NO DISCRIMINATION. Permittee 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. Permittee recognizes the right of the City to take any action necessary to enforce this requirement. 11. ASSIGNMENT. Permittee may not assign, by grant or implication, the whole any part of this Permit, the Premises, or any improvement on the Premises without the written consent of the City. Unless the City specifically releases the Permittee in writing, the City may hold the Permittee responsible for performing any obligation under this permit which an assignee fails to perform. 12. ASSUMPTION OF RISK. Permittee shall provide all proper safeguards and shall assume all risks incurred in its activities on the Premises and its exercise of the privileges granted in this Permit. 13. NO JOINT VENTURE. The 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. 14. SURVIVAL. The obligations and duties of Permittee under paragraphs 5 and 6 of this Permit shall survive the cancellation, termination, or expiration of this Permit. 15. AUTHORITY. By signing this Permit, Permittee represents that is has read this agreements and consents to be bound by the terms and conditions herein and that the person signing this Permit is duly authorized by the business to bind the business hereunder. CITY OF KENAI SCHILLING ALASKA, INC. By:____________________________ By:_______________________________ Terry Eubank David Schilling City Manager President Page 54 Special Use Permit – Schilling Alaska, Inc. – 2026 Snow Storage Page 5 of 6 ACKNOWLEDGMENTS STATE OF ALASKA ) ) ss THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this ____day of ________, 2025, the foregoing instrument was acknowledged before me by Terry Eubank, City Manager of the City of Kenai, Alaska, an Alaska home rule municipality, 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 ________, 2025, the foregoing instrument was acknowledged before me by David Schilling, Director of Schilling Alaska, Inc., an Alaska Corporation, on behalf of the corporation. Notary Public for Alaska My Commission Expires: Page 55 Special Use Permit – Schilling Alaska, Inc. – 2026 Snow Storage Page 6 of 6 ATTEST: Michelle M. Saner, MMC, City Clerk SEAL: APPROVED AS TO FORM: Scott Bloom, City Attorney Page 56 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Terry Eubank, City Manager THROUGH: Kevin Buettner, Planning Director FROM: Brandon McElrea, Planning Technician DATE: November 20, 2025 SUBJECT: Action /Approval - Special Use Permit for Snow Storage for Alaska Sure Seal, Inc. Alaska Sure Seal, Inc. (“Sure Seal”) has requested a Special Use Permit to store snow on approximately 7,500 square feet on Tract C of Daubenspeck Property Subdivision, located at 170 Bridge Access Road. Sure Seal was granted a special use permit to store snow this year. Sure Seal has been compliant with the terms of their special use permit this year. The proposed permit fee is $493.00 plus applicable sales tax for certain periods in 2026, a six-month period from January through April, and November through December 2026. Sure Seal will be required to carry adequate insurance, use the premises only for snow storage, store snow in a manner that would not limit sight lines for drivers or impact City snow clearing, and remove any trash or debris remaining after the snow has melted, such that the premises are returned to their initial condition. If City Council approves the Special Use Permit, the City Manager will be authorized to execute the Special Use Permit Agreement. Thank you for your consideration. Attachments Location Map Special Use Permit Agreement Page 57 K�NAI N Alaska Sure Seal Special Use Permit -Snow Storage Tract C, Daubenspeck Property Subdivision 170 Bridge Access Road KPB Parcel ID: 04705602 Map for Reference Only NOT A LEGAL DOCUMENT A o.---�-18,.....5-----r-37,.....0-----r-�--r------.7 40 Feet Page 58 Special Use Permit – Alaska Sure Seal, Inc. – 2026 Snow Storage Page 1 of 6 SPECIAL USE PERMIT The CITY OF KENAI (City), for the consideration, and pursuant to the conditions set out below, hereby grants to ALASKA SURE SEAL, INC. (PERMITTEE), the non-exclusive right to use 7,500 square feet of area as described below: TRACT C, DAUBENSPECK PROPERTY SUBDIVISION and as further shown in the attached Location Map. 1. TERM. This special use permit shall be for approximately six (6) months from January 1, 2026 to April 30, 2026, and from November 1, 2026 to December 31, 2026. 2. PERMIT FEES. The Permittee shall be charged an annual permit fee of $493.00 plus applicable sales tax. The Permittee shall pay the City the permit fee on or before January 1, 2026. Checks, bank drafts, or postal money orders shall be made payable to the City of Kenai and delivered to the City Hall, 210 Fidalgo Avenue, Kenai, Alaska 99611. In addition to the permit fee specified above, the Permittee agrees to pay to the appropriate parties all levies, assessments, and charges as hereinafter provided: A. Sales tax nor enforced, or levied in the future, computed upon the permit fee payable in monthly installments whether said fee is paid on a monthly or yearly basis; B. All necessary licenses and permits; all lawful taxes and assessments which, during the term hereof may become a lien upon or which may be levied by the State, Borough, City, or by any other tax levying body, upon any taxable possessory right which Permittee may have in or to the Premises by reason of its use or occupancy or by reason of the terms of this Permit, provided however, that nothing herein contained shall prevent Permittee from contesting any increase in such tax or assessment through procedures provided by law. C. Interest at the rate of eight percent (8%) per annum and penalties of ten percent (10%) of any amount of money owed under this Special Use Permit which are not paid on or before the due date. D. Costs and expenses incident to this Special Use Permit, including but not limited to recording costs. 3. USE. The use by the Permittee of the Premises is limited to the purpose of Snow Storage. This use is subject to City, Borough, and State laws and regulations and the reasonable administrative actions of the City for the protection and maintenance of the Premises and of adjacent and contiguous lands or facilities. Use of the Premises is subject to the following conditions: Page 59 Special Use Permit – Alaska Sure Seal, Inc. – 2026 Snow Storage Page 2 of 6 A. Permittee shall use the Premises only for snow storage. B. Snow must be stored in a manner that will not limit sight lines or create other unsafe driving conditions on adjacent right-of-ways. C. The premises shall be returned to its current condition prior to the end of the term of this Special Use Permit. This shall include the removal of any trash or debris that remains after the snow has melted in the spring. Failure to do so will result in Permittee being ineligible for future Special Use Permits for snow storage. D. Snow must be stored in a manner that will not impact any City snow clearing or moving activities. 4. 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, the City is entitled to coverage to the extent of the higher limits. A. Garage Liability or 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 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 for snow moving and storage activities to, from, or on the Premises. 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, or a combination thereof, and signed by a person authorized by the insurer to bind coverage on its behalf. Page 60 Special Use Permit – Alaska Sure Seal, Inc. – 2026 Snow Storage Page 3 of 6 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 within 30 days of the effective date of the Special Use Permit. The effective date of the insurance shall be no later than January 1, 2026. vi. This insurance shall be primary and exclusive of any other insurance carried by the City of Kenai. This insurance shall be without limitation on the time within which the resulting loss, damage, or injury is actually sustained. 5. INDEMNITY, DEFEND, AND HOLD HARMLESS AGREEMENT. The Permittee shall fully indemnify, hold harmless, and defend the City of Kenai, its officers, agents, employees, and volunteers at its own expense from and against any and all actions, damages, costs, liability, claims, losses, judgments, penalties, including reasonable Attorney’s fees of or for liability for any wrongful or negligent acts, errors, or omissions of the Permittee, its officers, agents or employees, or any subcontractor under this Permit. The Permittee shall not be required to defend or indemnify the City for any claims of or liability for any wrongful or negligent act, error, or omission solely due to the independent negligence of the City. If there is a claim of or liability for the joint negligence of the Permittee and the independent negligence of the City, the indemnification and hold harmless obligation shall be apportioned on a comparative fault basis. Apportionment shall be established upon final determination of the percentage of fault. If any such determination is by settlement, the percentage of fault attributed to each party for purposes of this indemnification provision shall only be binding upon the parties included in the settlement agreement. “Permittee” and “City” as used in this article include the employees, agents, officers, directors, and other contractors who are directly responsible, respectively, for each party. The term “independent negligence of the City” is negligence other than in the City’s selection, administration, monitoring, or controlling of the Permittee. 6. PERMITTEE’S OBLIGATION TO PREVENT AND REMOVE LIENS. Permittee will not permit any liens, including mechanic’s, laborer’s, construction, supplier’s, mining, or any other liens obtainable or available under existing law, to stand against the Premises or improvements on the Premises for any labor or material furnished to Permittee or to any related entity or claimed entity. The Permittee shall have the right to provide a bond as contemplated by State of Alaska law and contest the validity or amount of any such lien or claimed lien. Upon the final determination of the lien or claim for lien, the Permittee will immediately pay any judgment rendered with all proper costs and charges and shall have such lien released or judgment satisfied at Permittee’s own expense. 7. PERSONALTY. Permittee shall remove any and all personal property, including all vehicles, from the Premises at the termination of this Permit. Personal property placed or used upon the Premises and not removed upon termination of this Permit will be removed and/or impounded by the City. Property removed or impounded by the City may be Page 61 Special Use Permit – Alaska Sure Seal, Inc. – 2026 Snow Storage Page 4 of 6 redeemed by the owner thereof only upon the payment to the City of the costs of removal plus a storage fee of $25 per day. The City of Kenai is not responsible for any damage to or theft of any personalty of Permittee or its customers. 8. FORBEARANCE. Failure to insist upon a strict compliance with the terms, conditions, and/or any requirement 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. 9. TERMINATION, DEFAULT. This Permit may be terminated by either party hereto by giving 30 days advance written notice to the other party. The City may terminate the Permit immediately, or upon notice shorter than 30 days, to protect public health and safety. The City may also terminate this Permit immediately, or upon notice shorter than 30 days, due to a failure of Permittee to comply with conditions and terms of this Permit, which failure remains uncured after notice by City to Permittee providing Permittee with a reasonable time period to correct the violation or breach. 10. NO DISCRIMINATION. Permittee 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. Permittee recognizes the right of the City to take any action necessary to enforce this requirement. 11. ASSIGNMENT. Permittee may not assign, by grant or implication, the whole any part of this Permit, the Premises, or any improvement on the Premises without the written consent of the City. Unless the City specifically releases the Permittee in writing, the City may hold the Permittee responsible for performing any obligation under this permit which an assignee fails to perform. 12. ASSUMPTION OF RISK. Permittee shall provide all proper safeguards and shall assume all risks incurred in its activities on the Premises and its exercise of the privileges granted in this Permit. 13. NO JOINT VENTURE. The 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. 14. SURVIVAL. The obligations and duties of Permittee under paragraphs 5 and 6 of this Permit shall survive the cancellation, termination, or expiration of this Permit. 15. AUTHORITY. By signing this Permit, Permittee represents that is has read this agreements and consents to be bound by the terms and conditions herein and that the person signing this Permit is duly authorized by the business to bind the business hereunder. CITY OF KENAI ALASKA SURE SEAL, INC. By:____________________________ By:_______________________________ Page 62 Special Use Permit – Alaska Sure Seal, Inc. – 2026 Snow Storage Page 5 of 6 Terry Eubank Johnathan Paramore City Manager Director 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, Alaska, an Alaska home rule municipality, 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 Johnathan Paramore, Director of Alaska Sure Seal, Inc., an Alaska C Corporation, on behalf of the corporation. Notary Public for Alaska My Commission Expires: Page 63 Special Use Permit – Alaska Sure Seal, Inc. – 2026 Snow Storage Page 6 of 6 ATTEST: Michelle M. Saner, MMC, City Clerk SEAL: APPROVED AS TO FORM: Scott Bloom, City Attorney Page 64 Sponsored by: Administration New Text Underlined; [DELETED TEXT BRACKETED] CITY OF KENAI ORDINANCE NO. 3496-2025 AN ORDINANCE INCREASING ESTIMATED REVENUES AND APPROPRIATIONS IN THE GENERAL FUND TO PROVIDE SUPPLEMENTAL FUNDING FOR UTILITIES AND BUILDING MAINTENANCE COSTS IN EXCESS OF BUDGETED AMOUNTS FOR THE CHALLENGER LEARNING CENTER. WHEREAS, on May 20, 1999 the City entered into a 99-year lease with the Alaska Center for Space Technology, Inc. (Challenger Center), recorded in the Kenai Recording District at Book 0559 Page 796 through 807, for the operation of the “Challenger Learning Center”; and, WHEREAS, on October 24, 2025, the Board of Directors of the Challenger Center formally notified the City of its request to terminate the lease with the City effective November 15, 2025; and, WHEREAS, on November 5, 2025, the City authorized the City Manager to execute a lease termination effective November 15, 2025; and, WHEREAS, upon termination of the Lease, title to the building vested in the City, and the City assumed responsibility for all utilities, operating expenses, and other obligations necessary for the continued operation and preservation of the facility; and, WHEREAS, the City’s assumption of natural gas, electricity, internet services, insurance, and routine building maintenance costs for the period from November 15, 2025, through June 30, 2026, is estimated to total approximately $82,950, and an appropriation is required to cover these unbudgeted expenditures; and, WHEREAS, providing for the continued operation and preservation of the former Challenger Center building 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: General Fund: Increase Estimated Revenues Appropriation of Fund Balance $82,950 Increase Appropriations – Land Administration Insurance $16,000 Utilities $53,680 Repair and Maintenance $ 3,270 Small Tools/Minor Equipment $10,000 $82,950 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 Page 65 Ordinance No. 3496-2025 Page 2 of 2 New Text Underlined; [DELETED TEXT BRACKETED] 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 17TH DAY OF DECEMBER, 2025. ___________________________________ Henry H. Knackstedt, Mayor ATTEST: ___________________________________ Michelle M. Saner, MMC, City Clerk Approved by Finance: _________________ Introduced: December 3, 2025 Enacted: December 17, 2025 Effective: December 17, 2025 Page 66 MEMORANDUM TO: Mayor Knackstedt and Council Members FROM: Terry Eubank, City Manager DATE: November 21, 2025 SUBJECT: Ordinance No. 3496-2025 – Supplemental Funding for Challenger Learning Center This ordinance provides supplemental funding to cover utilities, insurance, and routine maintenance for the former Challenger Learning Center following the termination of its lease. As Council is aware, the Challenger Learning Center provided formal notice to the City that it would cease operations and terminate its lease, which occurred on November 15, 2025. Administration has worked cooperatively with Challenger Learning Center representatives to ensure a smooth transition. Upon termination of the lease, title to the building vested in the City, and the City assumed responsibility for all utilities, insurance, routine building maintenance, and related costs necessary to preserve the facility. The City’s estimated costs for the period from November 15, 2025, through June 30, 2026, are: • Electric – approximately $3,250 per month • Gas – approximately $3,300 per month • City of Kenai Water/Sewer – approximately $160 per month • Fire alarm/satellite connection – approximately $55 per month • Building Automation – approximately $1,550 annually • Internet – approximately $160 per month • Insurance – approximately $16,000 • Chairs, Tables, and Equipment – $10,000 The total estimated cost for this period is approximately $82,950, which was not included in the adopted FY26 budget. An appropriation from the General Fund balance is necessary to cover these unbudgeted expenditures. Approval of this ordinance will provide the City with the funding necessary to maintain the former Challenger Learning Center building until Council can consider options for its future use. The City Council will discuss potential uses of the facility at a Work Session scheduled for December 17, 2025. Thank you for your consideration. Page 67 MEMORANDUM TO: Mayor Knackstedt and Kenai City Council FROM: Terry Eubank, City Manager DATE: November 25, 2025 SUBJECT: Discussion/Action – Scheduling a Joint Work Session with the Kenaitze Tribal Council. The City and the Kenaitze Indian Tribe have worked collaboratively on multiple projects in the past and formally documented this collaboration in a Memorandum of Understanding (MOU) entered into earlier this year. The MOU recognizes areas of mutual concern, establishes a framework for cooperative relations, and promotes government-to-government communication for the benefit of the community of Kenai as a whole. Under the MOU, the parties are expected to meet at least annually to discuss cooperative guidelines and potential joint initiatives. Since 2023, the City and the Kenaitze Indian Tribe have held an annual Joint Work Session. City Administration reached out to Rudy Wilson, Executive Director and City liaison for the Kenaitze Indian Tribe, to request possible dates for the next joint work session. At their regular meeting on November 25, the Tribal Council proposed hosting this year’s work session and proposed the following dates: • January 7 at 5:00 p.m. • January 28 at 5:00 p.m. • January 29 at 5:00 p.m. The purpose of a joint work session is to provide an opportunity for the Tribal Council and City Council to discuss items important to both organizations and explore potential partnerships on future projects. Administration respectfully requests that the City Council schedule a joint work session with the Kenatize Indian Tribe for one of the proposed. Your consideration is appreciated. Page 68 MEMORANDUM TO: Mayor Knackstedt and Council Members THROUGH: Terry Eubank, City Manager THROUGH: Lee Frey, Public Works Director FROM: Dave Swarner, Finance Director DATE: November 25, 2025 SUBJECT: Setting of FY2027 Budget Goals and FY2027-2031 Capital Improvement Plan Work Session As the Administration begins preparations for the FY2027 Annual Budget, we are requesting a work session to discuss and establish the Council's budget goals, along with the FY2027-2031 Capital Improvement Plan. The Administration will provide a draft of the proposed budget goals and a draft version of the capital plan ahead of the work session to help facilitate a productive discussion. Budget goals are typically broad in nature, setting clear objectives at this stage is valuable in providing direction to the Administration for the budget development process. This approach has proven beneficial since the FY2023, and the Administration recommend continuation of this practice for the FY2027 Budget. For your reference, I have attached the Council-adopted budget goals for FY2026, which can serve as a starting point for our discussion. If there are any specific goals you would like to see incorporated or discussed during the work session, please do not hesitate to share them with me ahead of time. The Administration is completing a draft version of the FY2027-2031 Capital Improvement Plan. Departments and Commissions have reviewed their specific project priorities and made recommendations for the draft version of the plan. Public Works has worked to develop a draft document encompassing all projects for the City of Kenai, with the intention of the FY2027 projects being included in the capital budget for next year or to seek grant funds for applicable projects. Administration respectfully request a work session for January 7, 2026 at 4:00 pm. Resolutions will be presented for adoption at a subsequent City Council meeting to finalize the FY2027 Budget Goals and FY2027-2031 Capital Improvement Plan. Your support in scheduling a work session to discuss the FY2027 Budget Goals and Capital Plan is greatly appreciated. Page 69 KENAI AIRPORT COMMISSION – REGULAR MEETING NOVEMBER 13, 2025 – 6:00 P.M. KENAI CITY COUNCIL CHAMBERS 210 FIDALGO AVE., KENAI, AK 99611 CHAIR GLENDA FEEKEN, PRESIDING Airport Commission Meeting Page 1 of 3 November 13, 2025 MINUTES A. CALL TO ORDER A Regular Meeting of the Airport Commission was held on November 13, 2025, 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 Cody Whicker A quorum was present. Absent: James Zirul Jacob Caldwell Dan Knesek Also in attendance were: Mary Bondurant, Interim Airport Manager Julie Semmens, Airport Administrative Assistant Logan Parks, Deputy City Clerk Deborah Sounart, City Council Liaison 3. Agenda Approval MOTION: Commissioner Bielefeld MOVED to approve the agenda as presented. Commissioner Minelga SECONDED the motion. VOTE: There being no objection; SO ORDERED. B. SCHEDULED PUBLIC COMMENTS - None. C. UNSCHEDULED PUBLIC COMMENTS - None. D. APPROVAL OF MINUTES 1. October 9, 2025 Regular Meeting Minutes MOTION: Commissioner Bielefeld MOVED to approve the October 9, 2025 Airport Commission minutes. Commissioner Whicker SECONDED the motion. VOTE: There being no objection; SO ORDERED. Page 70 Airport Commission Meeting Page 2 of 3 November 13, 2025 E. UNFINISHED BUSINESS - None. F. NEW BUSINESS 1. Discussion/Recommendation - Special Use Permit to American Red Cross MOTION: Commissioner Minelga MOVED to recommend City Council approval of a Special Use Permit to American Red Cross. Commissioner Whicker SECONDED the motion. Interim Airport Manager Bondurant provided a staff report summarizing information provided in the packet. There was discussion regarding the upkeep of the American Red Cross facility at the airport. UNANIMOUS CONSENT was requested on the motion. VOTE: There being no objection; SO ORDERED. MOTION PASSED. 2. Discussion/Recommendation - Special Use Permit to Echo Lake Meats. MOTION: Commissioner Bielefeld MOVED to recommend City Council approval of a Special Use Permit to Echo Lake Meats. Commissioner Minegla SECONDED the motion. There was discussion on the popularity of Echo Lake’s vending machine at the airport. UNANIMOUS CONSENT was requested on the motion. VOTE: There being no objection; SO ORDERED. MOTION PASSED. G. REPORTS 1. Airport Manager - Interim Airport Manager Bondurant reported on the following: • The FAA-required emergency drill was successfully completed with about 60 participants. • A pre-season winter operations meeting was held on October 22, 2025. • Floatplane basin is being drained to control aquatic plant growth. • The Bronze Bears were unveiled on November 6, 2025. • Julie Semmens was hired as the new Airport Administrative Assistant. • Lease lot inspections will begin in December by Planning & Zoning staff along with airport personnel. • Regarding next summer’s runway project, the FAA confirmed it was too late to create new instrument procedures for landing on the taxiway. • There was discussion on fueling options at the airport. 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. Page 71 Airport Commission Meeting Page 3 of 3 November 13, 2025 I. NEXT MEETING ATTENDANCE NOTIFICATION - December 11, 2025 J. COMMISSION QUESTIONS AND COMMENTS There was discussion on the following: • Location and status of previous murals. • Airport Director recruitment. • Thanked Interim Airport Manager Bondurant for her work on the Bronze Bear Project. • Welcomed Julie Semmens. • Signage for pet relief areas. K. ADJOURNMENT L. INFORMATIONAL ITEMS 1. September 2025 Midmonth Report 2. 2025 Float Plane Seasonal Activity There being no further business before the Airport Commission, the meeting was adjourned at approximately 6:40 p.m. I certify the above represents accurate minutes of the Airport Commission meeting of November 13, 2025. ___________________________________ Logan Parks Deputy City Clerk Page 72 KENAI PLANNING & ZONING COMMISSION – REGULAR MEETING NOVEMBER 12, 2025 – 7:00 P.M. KENAI CITY COUNCIL CHAMBERS 210 FIDALGO AVE., KENAI, AK 99611 VICE CHAIR EARSLEY, PRESIDING Planning & Zoning Commission Page 1 of 4 November 12, 2025 MINUTES A. CALL TO ORDER A Regular Meeting of the Kenai Planning & Zoning Commission was held on November 12, 2025, in City Hall Council Chambers, Kenai, AK. Vice Chair Earsley called the meeting to order at approximately 7:00 p.m. 1. Pledge of Allegiance Vice Chair Earsley led those assembled in the Pledge of Allegiance. 2. Roll Call There were present: Sonja Earsley, Vice Chair Gwen Woodard Glenese Pettey Jeanne Keaton Stacie Krause Diane Fikes A quorum was present. Absent: None Also in attendance were: Kevin Buettner, Planning Director Jessica See, Planning Administrative Assistant Sovala Kisena, City Council Liaison 3. Agenda and Consent Agenda Approval MOTION: Commissioner Woodard MOVED to approve the agenda and consent agenda. Commissioner Krause SECONDED the motion. The items on the Consent Agenda were read into the record. Vice Chair Earsley opened the floor for public comment on consent agenda items; there being no one wishing to be heard, the public comment period was closed. Vice Chair Earsley opened the floor for public comment on consent agenda items. There being no one wishing to comment, the public comment period was closed. UNANIMOUS CONSENT was requested. VOTE: There being no objection; SO ORDERED. *All items listed with an asterisk (*) are considered to be routine and non-controversial by the council and will be approved by one motion. There will be no separate discussion of these items unless a Page 73 Planning & Zoning Commission Page 2 of 4 November 12, 2025 Commissioner 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 October 22, 2025. C. SCHEDULED PUBLIC COMMENTS - None. D. UNSCHEDULED PUBLIC COMMENTS - None. E. CONSIDERATION OF PLATS - None. F. PUBLIC HEARINGS 1. Resolution PZ2025-30 - Recommending the Approval of a Conditional Use Permit for the Operation of a Small Automotive Sales Business at 4586 Kenai Spur Highway, Davidson Homestead Tract A, in the Rural Residential Zoning District. MOTION: Commissioner Woodard MOVED to approve Resolution PZ2025-30. Commissioner Krause SECONDED the motion. Director Buettner read into the record the staff report as included in the packet and attached to Resolution PZ2025-30. Vice Chair Earsley opened the floor for public comment. Laurin Lee-Ensey (applicant), provided the Commission with a packet of information related to her business, noting that all permits were in place, including a surety bond; the conditional use permit request pertained to approximately seven-percent of the parcel; the business would be a limited, by appointment only operation; this would improve an overgrown corner of her lot, improving safety and visibility; the use would be small-scale, quiet and compatible with the residential character of the area; the application met all requirements, complied with regulations, and this would be a well maintained business on her property. Commissioner Fikes thanked the applicant for the thorough presentation, noting she was excited to hear that lighting would be added the corner addressing visibility concerns. Dan Verkuilen addressed the Commission with concerns related to clutter and potential decrease in the value of the neighborhood. Ms. Lee-Ensley clarified that access was immediately off of Strawberry road, not the Spur Highway; there would be a maximum of ten vehicles; the current plan is to rotate five to ten cars regularly; and it would be organized and not cluttered. Mr. Verkuilen stated he did not oppose entrepreneurs; and his concerns were related to the value of homes in the area. Sherry Inness addressed the Commission in opposition, noting the neighborhood is zone residential; this would change the rural character of the neighborhood; this would set a precedent for future commercial development; and she felt the business was not compatible with the residential zoning of the area. There was discussion regarding neighboring properties that were not within City limits which could be developed commercially; and the conditional use process. Connie Taplin addressed the commission requesting clarification of the conditional use permit could be transferred if the property were sold. Page 74 Planning & Zoning Commission Page 3 of 4 November 12, 2025 Clarification was provided that the matter would come back before the commission and if there were no changes to the use, yes it could be transferred. Diane Taplin addressed the Commission in opposition, noting she was unaware of the corner being unsafe or of accidents happening there; there are other businesses on Strawberry road, those are outside of City limits; and that she supported the testimony of Ms. Inness. Ms. Lee-Ensey provided additional testimony, noting she respected the opinions shared; emphasized her personal investment in the property and community; a conditional use permit is not permanent; and she had spoken with neighbors who did support this. There being no one else wishing to be heard, the public comment period was closed. Clarification was provided that any properties within 300-feet were mailed notices of public hearing; the public hearing noticed was published in the Peninsula Clarion; and published on the City website. Commissioner Keaton spoke in support of the conditional use permit, noting the property went through the application process and has met the required criteria. Commissioner Woodard spoke in support, noting the applicant met the required criteria; it was conditional and not permanent; the location was not within the subdivisions; and it was not uncommon to have business just outside of a subdivision. VOTE: YEA: Askin, Keaton, Pettey, Krause, Fikes, Woodard, Earsley NAY: None ABSENT: None MOTION PASSED. Vice Chair Earsley noted the 15-day appeal period. G. UNFINISHED BUSINESS - None. H. NEW BUSINESS 1. Discussion - Direction from Kenai City Council to Review and Make Recommendations to Update Kenai Municipal Code 14.10 – Subdivision Regulations. Director Buettner provided an overview of the memo as provided in the packet, noting the Administration has identified housing as a high priority; and the City has been approached by large- and small-scale developers. There was discussion regarding removing explicit standards from code and instead referring to policies that are adopted by Council; the goal is to have clear communicable standards to provide to developers. Support for this process was expressed by the Commission. I. REPORTS 1. Planning Director Planning Director Buettner – No report. 2. Commission Chair - No report. 3. Kenai Peninsula Borough Planning Commissioner Fikes reported on recent actions of the Kenia Peninsula Borough Planning Commission. 4. City Council Liaison Page 75 Planning & Zoning Commission Page 4 of 4 November 12, 2025 Council Member Kisena reported on recent actions of the City Council. J. ADDITIONAL PUBLIC COMMENTS - None. K. NEXT MEETING ATTENDANCE NOTIFICATION 1. Next Meeting: December 10, 2025 L. COMMISSION COMMENTS AND QUESTIONS Commission Members stated appreciation for public participation and welcomed Commissioner Askin. M. PENDING ITEMS - None. N. ADJOURNMENT O. INFORMATIONAL ITEMS - None. There being no further business before the Planning & Zoning Commission, the meeting was adjourned at approximately 8:21 p.m. I certify the above represents accurate minutes of the Kenai City Council meeting of November 12, 2025. ___________________________________ Logan Parks Deputy City Clerk Page 76 PROCLAMATION IN RECOGNITION OF Kenai Central High School Girls Varsity Volleyball Team as the Alaska Division 3A State Girls Champions for the Year 2025. WHEREAS, the Girls Division 3A Alaska State Volleyball Championships were held at the Alaska Airlines Center in Anchorage on November 13-15, 2025; and, WHEREAS, the Kenai Kardinals Girls Varsity Volleyball Team won their third state championship in the last four years; and, WHEREAS, under the direction of Head Coach Tracie Beck and Assistant Coaches Bruce King, Susan Darr, Camilla Gonzalez and Dani Akana; and, WHEREAS, 2025 3A State Championship awards were presented to Region MVP and Best Hitter Sophie Tapley; Best Server Gracee Every; All-Tournament Team Sophie Tapley, Gracee Every and Savannah Hershberger; and, WHEREAS, members of the Volleyball team were: Sophie Tapley, Brynnen Hanson, Ellsi Miller, Allie List, Seylor Tomrdle, Gracee Every, Savannah Hershberger, Katie Van Sky, Sage Wilson, Selah Coots, Bryleigh Williams, Aija Gravley, Maci Miller, and Mia Settlemyer. WHEREAS, we also commend Team Manager Pepper Noel. NOW, THEREFORE, I, HENRY H. KNACKSTEDT, MAYOR OF THE CITY OF KENAI, ALASKA, on behalf of the City of Kenai, do recognize and commend the Kenai Central High School Girls Varsity Volleyball Team for their exemplary performance. DATED: This 3rd day of December, 2025. ____________________________________________________ Henry H. Knackstedt, Mayor ATTEST: ___________________________________________________ Michelle M. Saner, MMC, City Clerk Page 77 PROCLAMATION IN RECOGNITION OF Kenai Marching Band at the Bands of America Grand National Champoinships WHEREAS, the Kenai Marching Band proudly represented the City of Kenai at the 2025 Bands of America Grand National Championships held in Indianapolis, Indiana; and, WHEREAS, this prestigious national event brought together 108 high school marching bands from across the United States for three days of rigorous and inspiring competition; and, WHEREAS, the Kenai Marching Band distinguished itself not only through musical excellence and performance but through its exemplary character and spirit; and, WHEREAS, the Band was awarded the Al Castronovo Esprit de Corps Award, presented to the ensemble that best embodies pride, spirit, enthusiasm, friendliness, camaraderie, and unity of purpose—qualities that reflect the highest ideals of the marching band community; and, WHEREAS, this achievement is a testament to the dedication, teamwork, and leadership demonstrated by each member of the Kenai Marching Band under the direction of Christian Stephanos; and, WHEREAS, the City of Kenai proudly recognizes the following student musicians for their commitment, discipline, and representation of our community on a national stage: Eva Anderson, Madeline Barrett- Nash, Ben Brighton, Emma Castimore, Mattie Castimore, Aidan Cole, Zoe Cole, Bridger Copple, Gavin Davis, Kylie Davis, Shawn Davis, Lawrence Dean, Lilly Gray, Natalie James, Madyson Martin, Dylan Moss Charlie Naranjo, Cecil Newcomb-Hammer, Gavin Real, Thomas Robinson, Kobi Rodgers-Whipple, Jacob Semeraro, Keziah Simons, Andrew Stein, Zach Talbot, Lily Taliesin, Xiling Tanner, Gage Van Vleet, Raymond Wilkie. NOW, THEREFORE, I, HENRY KNACKSTEDT, MAYOR OF THE CITY OF KENAI, ALASKA, on behalf of the City of Kenai, do recognize and commend the Kenai Marching Band for their exemplary performance. DATED: This 3rd day of December, 2025. ____________________________________________________ Henry Knackstedt, Vice Mayor ATTEST: ___________________________________________________ Michelle M. Saner, MMC, City Clerk Page 78 MEMORANDUM TO: Mayor Knackstedt and Council Members THROUGH: Terry Eubank, City Manager FROM: Kevin Buettner, Planning Director DATE: November 26, 2025 SUBJECT: Storefront & Streetscape Improvement Grant FY 2026 The Storefront & Streetscape Improvement Grant has been administered by the Planning & Zoning Department under the supervision of the City Manager since the initial appropriation in 2023. To date, there have been four funding rounds to allocate up to $130,000 in available funding over the past three years. The fourth round was the most recent appropriation for the program. This current round opened in late summer and closed on October 17, 2025. The City received three grant applications. All three applications were subject to a thorough review by all Planning & Zoning staff and recommendations were made to the City Manager for final approval. Two have been conditionally approved for $18,000 and one is still pending for $10,000. Page 79 NOTICE OF PUBLIC HEARING DECEMBER 03, 2025 CITY OF KENAI COUNCIL MEETING NOTICE IS HEREBY GIVEN the City Council of the City of Kenai will conduct a public hearing on the following Ordinance(s) and/or Resolution(s) on the above -noted meeting date: 1. Resolution No. 2025-67 - Authorizing the Purchase of Property Interests from the Kenai Native Association for the Wildwood Drive Rehabilitation Project and Determining that the Public Interest will not be Served by an Appraisal. (Administration) 2. Resolution No. 2025-68 - Adopting an Alternative Allocation Method for the Fiscal Year 2026 Shared Fisheries Business Tax Program and Certifying that This Allocation Method Fairly Represents the Distribution of Significant Effects of Fisheries Business Activity in Fisheries Management Area 14: Cook Inlet Area. (Administration) 3. Resolution No. 2025-69 - Authorizing a Contract Award for the City Of Kenai Architectural Services Project. (Administration) The public hearing will commence at 6:00 p.m., or as soon thereafter as business permits. All interested persons are invited to attend the meeting telephonically/virtually or in -person and participate in the public discussion. See the agenda for additional information. Written comments may be sent to the Kenai City Council, c/o Kenai City Clerk, 210 Fidalgo Avenue, Kenai, AK, 99611. Copies of the ordinances and/or resolutions are available in the Office of the Kenai City Clerk and will be available at the meeting for public review. Please be advised, subject to legal limitations, ordinances and/orAsolutions may be amended by the Council prior to adoption without further public notice. ShelVe Sa Posted: N, U&-\' City Clerk 26, 2025 i CITY OF KENAI Council � City KENAI Notice of Meeting City Hall Council Chambers, 210 Fidalgo Ave, Kenai, AK The Kenai City Council will hold a regular meeting on December 3, 2025, beginning at 6:00 p.m. Visit the City Meeting web page for information regarding this meeting: httas:///www.kenai.city/meetings/meetings The public is invited to attend and participate. Virtual and telephonic options for participation are available. Additional information is available through the City Clerk's Office or by visiting our website at www.kenai.city Shellie Saner, MMC, City Clerk Publish: 11 /28/2025 CERTIFICATE OF PUBLICATION & POSTING I, Shellie Saner, City Clerk of the City of Kenai, do hereby certify that on the 18th day of November 2025, 1 electronically mailed or caused to be published the foregoing Notice of Meeting to the Peninsula Clarion and requested that this Notice be published in the November 28, 2025 edition of their newspaper. On the 25th day of November, 2025, the Notice of Public Hearing and full meeting agenda was posted at Kenai City Hall and on the internet-dTWvvw.kenai.city. he~Saner VIMC, City Clerk ■2w�§He � rn (}tee#J0 k\}-o 0 — t,-e=#s §2a _0EE66_Er ) EaE�. },a2«\ o kCL &;w a z -a£ o ,-a�I9° IS / °�#�q�� %00 Jig3- ■@Pq .gym £g\[ƒA§ ■�z U� Q�k§��> a \� °_©�\�� 0 § e R 3. m c �g %]E�m § � C-2, ■o=,cC §9 Ems; °m mRL KEa 4® DECEMBER 3, 2025 CITY COUNCIL MEETING ADDITIONAL MATERIAL/REVISIONS REQUESTED ADDITIONS TO THE PACKET: ACTION ITEM REQUESTED BY PAGE Add to item E. 1. Resolution No. 2025-67 - Wildwood Dr. Map Administration 1 CITY OF KENAI NOTICE OF ORDINANCES AND RESOLUTIONS ADOPTED AT THE DECEMBER 03, 2025 KENAI CITY COUNCIL REGULAR MEETING NOTICE IS HEREBY GIVEN the City of Kenai Council passed or took other actions as identified below on the following Ordinance(s) and/or Resolution(s) at the above -referenced meeting. E. PUBLIC HEARINGS 1. ADOPTED UNANIMOUSLY. Resolution No. 2025-67 - Authorizing the Purchase of Property Interests from the Kenai Native Association for the Wildwood Drive Rehabilitation Project and Determining that the Public Interest will not be Served by an Appraisal. (Administration) 2. ADOPTED UNANIMOUSLY. Resolution No. 2025-68 - Adopting an Alternative Allocation Method for the Fiscal Year 2026 Shared Fisheries Business Tax Program and Certifying that This Allocation Method Fairly Represents the Distribution of Significant Effects of Fisheries Business Activity in Fisheries Management Area 14: Cook Inlet Area. (Administration) 3. ADOPTED UNANIMOUSLY. Resolution No. 2025-69 - Authorizing a Contract Award for the City of Kenai Architectural Services Project. (Administration) 00 tD 1 ` gan Parks, Deputy City Clerk 060,0*0,00, Posted: December 04, 2025; E D '� City of Kenai 1 210 Ficlalgo Ave, Kenai, AK 99611-7794 1 907.283.7535 ( www.6nai.city MEMORANDUM TO: Mayor Knackstedt and Council Members THROUGH: Terry Eubank, City Manager FROM: Mary Bondurant, Interim Airport Manager DATE: November 20, 2025 SUBJECT: Action/Approval - Special Use Permit American Red Cross American Red Cross is requesting to renew their Special Use Permit that expires on November 30, 2025. The American Red Cross is a nonprofit corporation that provides services to the Kenai Peninsula including house and forest fire response, smoke alarm installation, preparedness training, etc. The permit is for approximately 475 square feet of office space on the second floor of the Alaska Regional Fire Training Center. The permit fee is $1.00 per month plus $211.44 per month for utility costs plus applicable tax. The Special Use Application fee of $100 has been paid and the Airport has a current Certificate of Insurance on file. The American Red Cross is current in all fees owed to the City Airport Commission reviewed the application at the November 13, 2025 and recommends City Council approval. Does Council recommend the City Manager enter into a Special Use Permit with the American Red Cross? Thank you for your consideration. attachment APPROVED BY COUNCIL Date: t 21317 S �. . K FN. A City of Kenai 1 210 Fidaigo Ave, Kenai, AK 99611-7794 1 907.283.7535 ( www.6nai.city MEMORANDUM TO: Mayor Knackstedt and Council Members THROUGH: Terry Eubank, City Manager FROM: Mary Bondurant, Interim Airport Manager DATE: November 20, 2025 SUBJECT: Action/Approval - Special Use Permit Echo Lake Meats, LLC Echo Lake Meats, LLC is requesting to renew their Special Use Permit that expires on December 31, 2025 under the same terms and conditions. The permit is for approximately 20 square feet on the first floor of the terminal building for a vending machine. The semi-annual permit fee is $535.00 plus applicable tax. The Special Use Application fee of $100 has been paid and the Airport has a current Certificate of Insurance on file. Echo Lake Meats LLC is current on all fees owed to the City. Airport Commission reviewed the application at the November 13, 2025 and recommends City Council approval. Does Council recommend the City Manager enter into a Special Use Permit with Echo Lake Meats LLC? Thank you for your consideration. attachment APPROVED BY COUNCIL Date: C 2 I -� 12,5 _._, _.. ,enai 1 210 Fidalan Ave, Kenai, AK 99611-7794 1 907.283.7535 ( wwwkenaixity TO: Mayor Henry Knackstedt and Kenai City Council THROUGH: Terry Eubank, City Manager THROUGH: Kevin Buettner, Planning Director FROM: Brandon McElrea, Land Management Analyst DATE: November 14, 2025 SUBJECT: Action/Approval - Special Use Permit for Snow Storage for Schilling Alaska, Inc. Schilling Alaska, Inc. ("Schilling") has requested a Special Use Permit to store snow on approximately 7,500 square feet on Tract C of Daubenspeck Property Subdivision, located at 170 Bridge Access Road. Schilling has been granted special use permits for the Uptown Motel to store snow since 2018. Schilling has been compliant with the terms of their special use permits. The proposed permit fee is $493.00 plus applicable sales tax for certain periods in 2026, a six- month period from January through April, and November through December 2026. Schilling will be required to carry adequate insurance, use the premises only for snow storage, store snow in a manner that would not limit sight lines for drivers or impact City snow clearing, and remove any trash or debris remaining after the snow has melted, such that the premises are returned to their initial condition. If City Council approves the Special Use Permit, the City Manager will be authorized to execute the Special Use Permit Agreement. Thank you for your consideration. Attachments Location Map Special Use Permit Agreement APPROVED BY COUNCIL Date: t Z (312 5 K.. City of Kenai 1 210 Fidalgo Ave, Kenai, AK 99611-7794 1907.283.75351 www kenaixity TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Terry Eubank, City Manager THROUGH: Kevin Buettner, Planning Director FROM: Brandon McElrea, Planning Technician DATE: November 20, 2025 SUBJECT: Action/Approval - Special Use Permit for Snow Storage for Alaska Sure Seal, Inc. Alaska Sure Seal, Inc. ("Sure Seal") has requested a Special Use Permit to store snow on approximately 7,500 square feet on Tract C of Daubenspeck Property Subdivision, located at 170 Bridge Access Road. Sure Seal was granted a special use permit to store snow this year. Sure Seal has been compliant with the terms of their special use permit this year. The proposed permit fee is $493.00 plus applicable sales tax for certain periods in 2026, a six-month period from January through April, and November through December 2026. Sure Seal will be required to carry adequate insurance, use the premises only for snow storage, store snow in a manner that would not limit sight lines for drivers or impact City snow clearing, and remove any trash or debris remaining after the snow has melted, such that the premises are returned to their initial condition. If City Council approves the Special Use Permit, the City Manager will be authorized to execute the Special Use Permit Agreement. Thank you for your consideration. Attachments Location Map Special Use Permit Agreement C . . ! FARE,f�C10�o Full Fare G S_n le Rice SS Day Pass? Sio Monthly lass" S OC Children ages 0-4 ride `ree� Half -Price Faive4 Single fide' $2.50 Day Rass2 SS Monthiy, Pass3 55 C Children aeles 0-4 ride $ree �, Single bide' $10 1. Single Ride fares are cash only. Exact change is required. 2.Day passes are good for unlimited rides on the day of use. 3. Monthly passes are good for 30 days from date of purchase or chosen effective date. 4. Youth ages 5-17, Medicare Cardholders, Veterans, Elders ages 55 and older are eligible for half-price fares. (Proof of eligibility is required (government issued photo ID, Medicare card with photo ID, photo ID indicating Veteran status). 5. Paratransit eligibility form and documentation must be completed. BUS SERVICE HOURS Monday - Friday 6.30am - 8:00pm KAHTNU AREA TRANSIT CONNECTING COMMUNITY, ONE R1FJ__ AT A TIMJ_!!. Stops 1st Run 2nd Run 3rd Run 4th Run North Kenai Cor-rnunilty Club 7:0S AM 10:/i 9 ANI 2:58 PM 7:03 PNI BUS STOPS North Peninsula Qecreation Cer)(Qr 7712 AM 10:56 AM 3:OS PM 710 Pm Dena'ma "Aiel [rw4ss Cefi,e r 732,"M P�-r6 ANI S:25 PM NO slcp North Kenai Community Club T rar,.sit Cen"e-, 7:5C ANI 2:0' C 745 pi'". North Pen,.nsula Pecreat;on 'Center K-2 Drive ' 3ye',,vay 3:CS ANI 2P r, 1 e4:2S 8:0.0 D"I i ace 8:"� 0, /,� k", ',2:213 PrO Dena'ha Wellness Center Comr-j�,;;ty Col2c.ge Pd ,"Qear Fcod wank 8:-a A"', 12:30 71M, P',,, Transit Center Cen! ra I Peninsj!a i .nita! 8:38 AV 12,: 8 P N4 K-B Drive & Bye My 8: f 0 AM 1-):50; Pt,,: 51" 'A PtA ", 5fy 3cn's 6:5-5 At-� .1c.5 pm! 5:15 PM Alaska Christ'W College/ Poyal Place stops Tst Run 2nd Run 3rd Run 4th Run Final Stop Sip Fr r is Sterling SS AN' 1: 0 5 P, M 5:7! PN! Community College Pd Near Food Bank Crrltral Pef,,'r-,,.:ul;-i i lcspi,:al -9.11 0 ANI 1:20 E: 3 0 11: M; Central Peninsula Hospital Sol-jotria Library I,:Z',-,' 53,2 Pr, -I Com.,nuniLy Col; egE Pd /Near 7ood' Gank 9:29 A M 1: ,, 0 DM, 5149 PI,, Soldotna Library /Vaska Chfisuart Cut'cqe/ Z<cNya€ Piace 9:-141 AM 1:50 PMf 6:01 PM Big John's Sterling K-B Driver &Bye Way /15 9: AM 1:53 ;)M 6:05 pt,4 Trariso, Center 6.-3'-,^,M 10:10 Ak-,,, 220 PM 62S P'A 8:' S P,*, I Dena`na Weilness CQnLa-f 6:40 AM 10:20 Al,,' 2:30 pt-1 6:35 PIA C, C C 0 North 0--ninsulaPecre-ation Center No SL,.)p 10:61 AM. ISO PM 6:55 P" Norlh t<enai Corrimunity Club 705 MIA 10.,49 AM 258 PM T03 P-M L C Gi 0