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HomeMy WebLinkAbout2025-12-17 Council Packet - Work SessionKenai City Council - Work Session Challenger Center December 17, 2025 — 5:00 PM Kenai City Council Chambers KENAI210 Fidalgo Avenue, Kenai, Alaska www.kenai.city ** Telephonic / Virtual Information on Page 1** Agenda A. CALL TO ORDER B. INTRODUCTION - Terry Eubank, City Manager C. DISCUSSION ITEM 1. Challenger Center D. COUNCIL COMMENTS E. PUBLIC COMMENTS (Public comments limited to five (5) minutes per speaker) F. ADJOURNMENT The agenda and supporting documents are posted on the City's website at www.kenai.city. Copies of resolutions and ordinances are available at the City Clerk's Office or outside the Council Chamber prior to the meeting. For additional information, please contact the City Clerk's Office at 907-283-8231. Registration is required to join the meeting remotely through Zoom. Please use the following link to register: https://us02web.zoom.us/meeting/register/3JHsNKKuRIubmELa2-iRMA Kenai City Council - Work Session Page 1 of 1 December 17, 2025 CITY OF KENAI City Council -Work Session KENAI PUBLIC NOTICE Notice is hereby given; the Kenai City Council will be conducting a work session on Wednesday, December 17, 2025 to discuss the Challenger Center. The work session will begin at 5:00 p.m. and will be held in Council Chambers at City Hall, 210 Fidalgo Avenue, Kenai Alaska. Visit the City Meeting web page for information regarding this work session: https://www.kenai.city/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.cit,, Shellie Saner, MMC, City Clerk Publish: 12/12/2025 CERTIFICATE OF PUBLICATION & POSTING I, Shellie Saner, City Clerk of the City of Kenai, do hereby certify that on the 4th day of December 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 December 12, 2025 edition of their newspaper. On the 12th day of December, 2025, the full meeting agenda was posted at Kenai a d on the internet at www.kenai.city ellie Saner, MC, City Clerk J CITY OF KENAI �. City Council -Work Session K E N A I PUBLIC NOTICE Notice is hereby given; the Kenai City Council will be conducting a work session on Wednesday, December 17, 2025 to discuss the Challenger Center. The work session will begin at 5:00 p.m. and will be held in Council Chambers at City Hall, 210 Fidalgo Avenue, Kenai Alaska. Visit the City Meeting web page for information regarding this work session: iftps://www.kenai.ci�. 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.,,i!--, Shellie Saner, MMC, City Clerk Publish: 12/12/2025 DECEMBER 17, 2025 CITY COUNCIL WORK SESSION ADDITIONAL MATERIAL/REVISIONS REQUESTED ADDITIONS TO THE PACKET: ACTION ITEM REQUESTED BY Add to item C.1 Challenger Center • Slideshow Presentation City Manager Lfl N O N Background � Transition The Challenger Learning Center formally notified the City that it would cease operations and terminate its lease, which took effect on November 15, 2025. Administration worked cooperatively with Challenger representatives to ensure a smooth transition. Upon termination, title to the building vested in the City, which now assumes responsibility for utilities, insurance, and routine maintenance. Lj S. iE0 AND CATHERME STEYENS CENTER rOR SCIENCE AND TECHNOLOGY EDIT CATION _A-15- The City is now responsible for all operational costs associated with the building. Estimated costs from November 15, 2025 through June 30, 2026 are $82,950 Estimated Costs include: • Electric --$3,250/month • Gas --$3,300/month • Water/Sewer --$160/month • Fire alarm/satellite --$55/month • Building automation-$1,550 annually • Internet --$160/month • Insurance-$16,000 annually • Chairs, tables, equipment $10,000 (one-time) A supplemental appropriation to cover these unbudgeted costs is scheduled for a public hearing at the December 17 Council Meeting Annual estimated costs are $100,650 Public Works Facility Assessment Public Works has reviewed the facility history and completed walkthroughs with previous operations staff. Major findings from their assessment are as follows: Building Interior/Exterior: The facility is in good condition and well maintained. No immediate issues were identified. The roof will likely need replacement in appoximately seven years at an estimated cost of $2-3 million. Lighting was recently converted to LED. Fire Alarm System: The system will be evaluated during the City's annual building inspections next summer. Minor repairs or component replacements may be needed due to normal wear. Mechanical Systems: Staff completed repairs on boilers and they are operational, with an expected remaining life of 10+ years. Some pumps may need replacement as well as repairs to the air handling and controls systems at an estamated cost of $100,000. A mechanical contractor is scheduled to perform full boiler servicing and identify any issues. Accessibility and Code Compliance: No current or anticipated concerns. Buildings staff will continue to monitor facility for issues through regular walkthroughs and inspections. Deed Restriction The Borough's deed includes a restrictive covenant limiting the property to "government purposes." This includes uses by federal, state, or local government that provide a public benefit. Some potential uses may fit within this definition; others may require the City to request modification or removal of the restriction. Administration plans to seek removal of the deed restriction to provide the greatest flexibility moving forward. Zoning Considerations The property is zoned Educational. Potential future uses may or may not be compatible with this zoning. Administration recommends no action on zoning at this time. Zoning will be reviewed for any potential use and needed adjustments will be made at that time. The City previously engaged a professional design consultant to assess long-term needs for Police, Fire, and Dispatch. The current public safety building, built in QoL1 1973, has seen multiple additions and is FEqP aging. KENAI ALASKA The former Challenger facility may be suitable as a future Police or Fire Department location. If Council is interested, Administration can `�SN4/ request that the design consultant assess the *** * facility as part of the public safety needs * * assessment and bring findings back at a future meeting. ��LASK� Request for Interest Administration is considering a Request for Interest (RFI) to solicit letters of interest from businesses or nonprofit organizations that may want to lease or use the facility. An RFI would help gauge the range of externally driven options available for Council consideration. The City's Land Management Plan currently classifies the property as "Dispose — Lease Only" based on the long-term lease to the Challenger Center through 2098. With the lease now terminated, this designation in the Land Management Plan may need to be updated. As part of the RFI process, Administration could host an open house or guided tours for interested parties. Coordination with Educational Partners The facility's location near Kenai Central High School may make educational partnerships feasible. Administration has had preliminary conversations and can continue outreach where appropriate. Potential educational partners include: • Kenai Peninsula College/UAA, for academic or workforce training use • The Kenai Peninsula Borough School District • Alaska Vocational Technical Center (AVTEC), for workforce training programs • Charter Schools :w ,MOON%.0offEft, -qdMh . _ ..... . _- �= - Potential Use for School or Athletic Team Lodging Community members have asked whether the facility could again host visiting school or athletic teams, as occurred under Challenger's operation. This use would likely require a third -party operator, such as a nonprofit or partner organization, to manage scheduling and supervision under a Special Use Permit. Operational needs include heating, lighting, custodial services, and other City -incurred costs during periods of occupancy, as well as identifying any required purchases such as furnishings or equipment. FV next Steps Administration will use feedback from tonight's discussion to prepare information, analysis, or proposals for future Council meetings. No decisions are being made tonight; this is an opportunity to clarify interests and identify which possibilities warrant deeper evaluation.