HomeMy WebLinkAboutOrdinance No. 3496-2025Sponsored by: Administration
CITY OF KENAI
ORDINANCE NO. 3496-2026
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
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
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Ordinance No. 3496-2025
Page 2 of 2
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, 17T" rO�ECEMBER,
2025. Z�
Approved by Finance:
ackstedt, Mayor
Introduced: December 3, 2025
Enacted: December 17, 2025
Effective: December 17, 2025
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INAI
.enai 1 210 Pidalgo Ave, Kenai, AK 99611-7794 1907.283.7535 1 www kenai.city
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.