HomeMy WebLinkAbout2026-01-07 Council Packet - Joint Work SessionPage 1
KENAI
A. CALL TO ORDER
Kenai City Council - Joint Work Session
With the City Commissions
January 07, 2026 — 4:00 PM
Kenai City Council Chambers
210 Fidalgo Avenue, Kenai, Alaska
www.kenai.city
** Telephonic / Virtual Information Below"
Agenda
B. INTRODUCTION - Terry Eubank, City Manager
C. DISCUSSION ITEM
1. Fiscal Year 2026 - 2030 - Capital Improvement Plan
2. Fiscal Year 2026 - Budgetary Goals
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/ZwezbcRNQ5SaKnTwxyTEeA
Kenai City Council - Joint Work Session Page 1 of 1
January 07, 2026
Page 2
The Best Place To ALASKA
Capital
Improvement
Plan
FISCAL YEARS 2027 - 2031
CITY OF KENAI TERRY EUBANK LEE FREY
CITY HALL CITY MANAGER PUBLIC WORKS DIRECTOR
210 FIDALGO AVENUE TEUBANK@KENAI.CITY LFREY@KENAI.CITY
KENAI, AK 99611 907-283-8223 907-283-8236
1
Page 3
TABLE OF CONTENTS
Page 3
INTRODUCTION
Page 5
AIRPORT FUND
Page 14
GENERAL FUND
Page 27
WATER & SEWER FUND
Page 38
CONGREGATE HOUSING FUND
Page 41
PERSONAL USE FISHERY FUND
APPENDIX A— CAPITAL PROJECT SCHEDULE
(INCLUDES PREVIOUSLY FUNDED PROJECTS AND FY27 PROPOSED PROJECTS)
2
Page 4
INTRODUCTION
The Public Works Department develops the City of Kenai's Five -Year Capital
Improvement Plan (CIP) in coordination with other City departments,
Administration, Boards, Commissions, and the City Council for the purpose of long-
range capital improvement planning and budgeting. A capital improvement project
is typically a one-time expenditure in excess of $35,000 that has a useful life
exceeding one year or is a major project for long-range planning or development.
Projects included in the plan are generally current needs or anticipated future
needs for items nearing the end of their useful life.
The CIP is divided into six parts based on the City Fund from which the project
would be funded. These include the Airport Fund, General Fund, Water & Sewer
Fund, Senior Citizens Fund, Congregate Housing Enterprise Fund, and Personal Use
Fishery Fund. Projects are not listed in priority order for each Fund by fiscal year.
Active projects funded in prior years are not included in the plan unless additional
capital funding is needed to fund another phase of the project.
Projects identified in the CIP are included for planning purposes and to recognize a
need. Not all projects receive the necessary funding to accomplish them in a
projected year, which is why the list is updated annually. Many projects are
dependent on non -City funding sources, which the City can expect to seek but are
not guaranteed to receive. The availability of outside funds can vary with local,
state, and federal economies. The list may change significantly from year to year as
needs, priorities, local funding, and availability of outside funding changes.
3
Page 5
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Page 6
AIRPORT FUND
FY2027
No IMIXIF)ect
Total11'r Grant
Name Project
1
Rehabilitate TW A/B/C/D/E/K/L/M - Design $380,100
$380,100 Note 1
2
Perimeter and Security Fenceline
Improvements $2,000,000 $2,000,000 Note 2
Totals $2,380,100 $2,000,000 $380,100
FY2028
No
ProjectGrant
.. Project3
Rehabilitate TW A/B/C/D/E/K/L/M -
$19,572,000
$19,572,000
Construction
4
Float Basin TW Sierra w/Access Control &
Lighting — Design
$642,900
$642,900
5
Runway Marking
$500,000
$468,750
$31,250
6
Airport Broom Replacement
$1,000,000
$937,500
$62,500
7
Terminal Road and Parking Lot Improvements
— Design
$200,000
$200,000
Totals
$21,914,900
$20,978,250
$936,650
FY2029
No
ProjectGrant
Float Basin TW Sierra w/Access Control &
Lighting — Construction
.. Project8
$9,644,100
$9,644,100
9
Airport Apron & Willow St Extension - Design
$465,500
$465,500
10
ARFF Building Roof Replacement — Design
$100,000
$100,000
11
Terminal Road and Parking Lot Improvements
— Construction
$1,800,000
$600,000
$1,200,000
Totals
$12,009,600
$10,244,100
$1,765,500
Page 7
FY2030
No
ProjectGrant
Airport Apron & Willow St Extension -
Construction
Project12
$6,982,500
$6,982,500
13
Rehabilitate TW F/J & GA Apron - Design
$1,595,600
$1,595,600
14
Rehabilitate TW G/H/J & City Apron - Design
$369,400
$369,400
15
Runway Marking
$500,000
$468,750
$31,250
16
ARFF Building Roof Replacement —
Construction
$900,000
$500,000
$400,000
17
Acquire ARFF Vehicle
$1,425,000
$1,425,000
Note 3
Totals
$11,772,500
$9,376,250
$2,396,250
FY2031
Note 1: $650,000 in City Funding has already been appropriated to this project and the $380,100 is the
expected remaining matching funds required.
Note 2: $247,500 in City Funding has already been appropriated to this project for matching funds.
Note 3: $62,500 in City Funding has already been appropriated to this project for matching funds.
0
Page 8
AIRPORT FUND PROJECTS
REHAB TW A/B/C/D/E/K/L/M
Department: Airport
Total Project Cost: $20,602,100
Project Phased: Yes
Project Type: Infrastructure
Funding Source(s): Grant / Airport Fund
Potential Grant Identified: Federal Aviation
Administration
Operating Budget Impact: Increase
r� a
YEAR: 2027 2028 2029 2030 J_ 2031
• 000
Details: This project will rehabilitate runway taxiways A, B, C, D, E, K, L, and M to current
standards. The work will involve milling the existing taxiways and placing new asphalt surfaces,
markings, and lighting. Design funds of $650,000 were forward funded already for this project.
This appropriation would be remaining match needed for construction.
PERIMETER FENCE LINE IMPROVEMENTS
Department: Airport
Total Project Cost: $2,000,000
Project Phased: Yes
Project Type: Infrastructure
Funding Source(s): Grant / Airport Fund
Potential Grant Identified: Federal Aviation
Administration
Operating Budget Impact: None
Details: This project will remove and replace existing chain link fencing around the airport's
perimeter to prevent wildlife from accessing the airfield. Local funding has already been
appropriated for this project and design work is ongoing.
7
Page 9
FLOAT BASIN TW SIERRA W/ACCESS
CONTROL & LIGHTING
Department: Airport
Total Project Cost: $10,287,000
Project Phased: No
Project Type: Infrastructure / Technology
Funding Source(s): Grant / Airport Fund
Potential Grant Identified: Federal Aviation
Administration
Operating Budget Impact: Increase
Details: The development of the Kenai Municipal Airport (ENA) Seaplane Base (SPB) is critical to
the growth of the airport. The SPB is fundamental to de -conflicting General Aviation (GA)
operations and Commercial Aircraft Operations. It allows for the continued development of GA
to the west and frees up prime commercial aviation property on the east side of the airport and
South Airpark. The project will establish the foundation for the continued growth of the SPB by
appropriately connecting the SPB to the main runway and making several plots available for
hangar, tie -down, and other GA services development.
RUNWAY MARKING
Department: Airport
Total Project Cost: $1,000,000
Project Phased: Yes
Project Type: Infrastructure
Funding Source(s): Grant / Airport Fund
Potential Grant Identified: Federal Aviation
Administration
Operating Budget Impact: None
Details: Project would redo paint markings at the airport every two years for the runway and
associated markings.
N
AIRPORT BROOM REPLACEMENT
Department: Airport
Total Project Cost: $1,000,000
Project Phased: No
Project Type: Equipment Replacement
Funding Source(s): Grant / Airport Fund
Potential Grant Identified: Federal Aviation
Administration
Operating Budget Impact: None
Details: Replacement of an Airport Broom used for clearing operations at the airport.
TERMINAL ROAD AND PARKING LOT IMPROVEMENTS
Department: Airport
Total Project Cost: $2,000,000
Project Phased: Yes
Project Type: Infrastructure
Funding Source(s): Grant / Airport Fund
Potential Grant Identified: Federal Aviation `
Administration
Operating Budget Impact: None '
Details: This project will rehabilitate the primary airport terminal access road and provide for
parking lot expansion to the south. Parking lot lighting will be included with this work within the
affected areas.
E
EA / DESIGN / CONSTRUCTION APRON & WILLOW ST. EXTENSION
Department: Airport
Total Project Cost: $7,448,000
Project Phased: No
Project Type: Land improvement/
Infrastructure
Funding Source(s): Grant / Airport Fund
Potential Grant Identified: Federal Aviation
Administration
Operating Budget Impact: Increase
Details: This project would extend the apron taxiway 600 feet for lease lots and N. Willow St.
extension (road and utilities) and provide for lease lot development (five acres).
ARFF BUILDING ROOF REPLACEMENT
Department: Airport
Total Project Cost: $1,000,000
Project Phased: Yes
Project Type: Infrastructure
Funding Source(s): Grant / Airport Fund
Potential Grant Identified: Federal Aviation
Administration
Operating Budget Impact: None
Details: The Kenai Municipal Airport's Aircraft Rescue Fire Fighting Operations Facility at 515 N.
Willow St. finished construction in 2001. The facility's EPDM roof system, encompassing
approximately 19,637 square feet, will be reaching the end of its intended useful life. This project
will provide design documents for a complete roof replacement. Design documents will be
prepared in FY2028, and construction is scheduled to take place in FY2029.
10
REHABILITATE TW F/J & GA APRON
Department: Airport
Total Project Cost: $25,528,900
Project Phased: Yes
Project Type: Infrastructure
Funding Source(s): Grant / Airport Fund
Potential Grant Identified: Federal Aviation
Administration
Operating Budget Impact: None
YEAR: 2027 2028 2029 2030 2031
Details: These sections of asphalt are anticipated to need replacement by the year 2030. The
Edges and lighting of these areas are nearing the end of their useful life and are expected to be
replaced as part of this project.
REHABILITATE TAXIWAYS G/H/J AND CITY APRON
Department: Airport
Total Project Cost: $5,910,500
Project Phased: Yes
Project Type: Infrastructure
Funding Source(s): Grant / Airport Fund
Potential Grant Identified: Federal Aviation
Administration
Operating Budget Impact: None
Details: These sections of asphalt are anticipated to need replacement by the year 2030. Taxiway
J and the City Apron are already in poor condition. The Edges and lighting of these areas are
nearing the end of their useful life and are expected to be replaced as part of this project.
11
ACQUIRE ARFF VEHICLE
Department: Airport
Total Project Cost: $1,425,000
Project Phased: No
Project Type: Equipment
Funding Source(s): Grant / Airport Fund
Potential Grant Identified: Federal Aviation Admin
Operating Budget Impact: Minimal or No Impact
Details: This project will replace an existing 1992 model year Oshkosh TA1500 unit to allow for
continued efficient airfield operations and safety standards. The unit will be purchased through
the State of Alaska AIP Fleet purchasing contract.
12
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13
GENERAL FUND
FY2027
1
Willow and Airport Way Repaving -
Construction
Total=ect Cost
$1,200,000
Grant/Bond
Funding
City Funding
$1,200,000
2
Comprehensive Plan
$250,000
$50,000
$200,000
3
Old Town Playground Replacement — Design
$100/000
$100,000
4
Rec Center Locker Room Refurbishment
$120,000
$120,000
5
Gravel Road Improvements
$100,000
$100,000
6
Street Light Decorations Replacement
$50,000
$50,000
7
Senior Center Door Project
$60,000
$60,000
Totals
$1,880,000
$50,000
$1,830,000
FY2028
No
•-
.
Public Safety Building
Replacement/Renovations
.. •.-
$35,000,000
Grant/Bond
$35,000,000
Note 1
8
9
Lawton, Tinker and Swires Repaving - Design
$250,000
$250,000
10
Old Town Playground Replacement -
Construction
$800,000
$800,000
11
City Hall Improvements — Construction
$800,000
$800,000
12
Relocation of Parks & Rec to Daubenspeck —
Design
$150,000
$150,000
13
Multipurpose Facility Roof Replacement —
Design
$75,000
$75,000
14
Stormwater Improvements
$500,000
$400,000
$100,000
15
Senior Center Landscaping Project Phase 1
$40,000
$40,000
Totals
$37,615,000
$35,400,000
$2,215,000
14
FY2029
No
Project Name
Lawton, Tinker and Swires Repaving -
Construction
TotalProject16
$1,900,000
Grant/Bond
$1,900,000
17
South Spruce Repaving - Design
$60,000
$60,000
18
Senior Housing Feasibility Study
$300,000
$300,000
19
Relocation of Parks & Rec to Daubenspeck —
Construction
$3,000,000
$2,400,000
$600,000
20
Multipurpose Facility Roof —Construction
$850,000
$750,000
$100,000
21
Senior Center Landscaping Project Phase II
$35,000
$35,000
Totals
$6,145,000
$3,150,000
$2,995,000
FY2030
FY2031
Grant/Bond
No
Project Name
Total Project Cost
Funding
City Funding
24
Frontage Street Repaving - Construction
$1,000,000
$1,000,000
25
First Avenue and Main Street Repaving -
Design
$70,000
$70,000
26
Multipurpose Facility Refrigeration System
Replacement
$5,300,000
$4,240,000
$1,060,000
27
Senior Center Roof Replacement Design
$100,000
$100,000
Totals
$6,470,000
$4,240,000
$2,230,000
Note 1: City will evaluate grant opportunities and bonding to fund this project.
15
GENERAL FUND PROJECTS
WILLOW AND AIRPORT WAY REPAVING - CONSTRUCTION
Department: Public Works
Total Project Cost: $1,200,000
Project Phased: No
Project Type: Infrastructure
Funding Source(s): General Fund
Potential Grant Identified: None
Operating Budget Impact: Decrease
Details: Previously appropriated funds will be used for design in summer of 2026. Project will
be designed and bid for construction in 2027. Seams in asphalt panels are unraveling and
deteriorating beyond repair. Project will repave Airport Way and Willow Street from the Kenai
Spur Highway to Granite Point Street.
COMPREHENSIVE PLAN
Department: Planning and Zoning
Total Project Cost: $250,000
Project Phased: No
Project Type: Planning
Funding Source(s): General Fund
Potential Grant Identified: None
Operating Budget Impact: None
Details: The Kenai 2050 Comprehensive Plan will be a long-range planning tool and the
foundational policy document that guides decisions on land use, transportation, housing,
economic development, and public facilities. This project will involve a comprehensive update
of the existing plan to reflect current community values and preferences, address new
challenges, and ensure compliance with federal and state planning laws. The final plan will be a
strategic roadmap for achieving a shared community vision for the next two decades.
16
OLD TOWN PLAYGROUND RECONSTRUCTION
Department: Parks and Recreation
Total Project Cost: $900,000
Project Phased: Yes
Project Type: Parks & Recreation
Funding Source(s): Grant / General Fund
Potential Grant Identified: State Capital Project
Submission and Federal Grants to Be Identified
Operating Budget Impact: No Effect
ii
- Town Park Reeenserueefen .�
Details: This project will replace aging equipment at the park on Peninsula Avenue, adjacent to
the Fine Arts Center in Old Town, a popular destination for visitors and locals. Located near the
Visitor's Center and several large housing complexes, the park serves as a key recreational space
for families and children. Design phase in FY27 will review necessary amenities for the park with
the goal of reducing construction costs and lowering future capital requests.
REC CENTER LOCKER ROOM REFURBISHMENT
Department: Parks & Recreation
Total Project Cost: $120,000
Project Phased: No
Project Type: Building Improvement
Funding Source(s): General Fund
Potential Grant Identified: None
Operating Budget Impact: No Effect
YEAR: 1=ZW7 2028
• off$
Details: Refurbishment of tile, plumbing fixtures and furnishings in the Rec Center locker rooms.
17
GRAVEL ROADWAY IMPROVEMENTS
Department: Public Works
Total Project Cost: $100,000
Project Phased: No
Project Type: Infrastructure
Funding Source(s): General Fund
Potential Grant Identified: None
Operating Budget Impact: Decrease
Details: Funding will be used to cap gravel roads in the City to improve the driving surface and
improve drainage. Street Assessment noted that gravel roads are in good condition. Funding
would be used by Streets staff to purchase gravel and rent equipment as needed to assist with
installation.
STREET LIGHT DECORATIONS REPLACEMENT
Department: Public Works
Total Project Cost: $50,000
Project Phased: No
Project Type: Beautification
Funding Source(s): General Fund
Potential Grant Identified: None
Operating Budget Impact: None
Details: Project will replace decorations that are mounted to the street lights along the Kenai
Spur Highway. Many decorations have been damaged and are in need of replacement.
18
SENIOR CENTER DOOR PROJECT
Department: Senior Center
Total Project Cost: $60,000
Project Phased: No
Project Type: Building Improvement
Funding Source(s): Senior Citizens Fund
Potential Grant Identified: None
Operating Budget Impact: No Effect
Details: This project remove and replace several doors in the Senior Center. Door replacements
will remedy egress issues, replace deteriorated doors and improve wheelchair access through
the facility.
PUBLIC SAFETY BUILDING REPLACEMENT
Department: Public Works
Total Project Cost: $35,000,000
Project Phased: Yes
Project Type: Infrastructure
Funding Source(s): State Grants / General Fund / Bond
Potential Grant Identified: None
Operating Budget Impact: Decrease
�ENA/ VOLICF
KENAI ALASKA
gLASKP
Details: Assessment has determined that Kenai Police and Fire are in need of new facilities or
significant renovations to their existing building. Further review is ongoing to determine a path
towards updated facilities for these departments. It is expected that grants will be applied for
and a bond proposition may proceed to fund project in the future.
19
LAWTON, TINKER AND SWIRES REPAVING
Department: Public Works
Total Project Cost: $2,150,000 j
Project Phased: Yes
Project Type: Infrastructure
Funding Source(s): General Fund
Potential Grant Identified: None
Operating Budget Impact: Decrease
Details: Project will repave Lawton Drive from Walker Lane to Tinker Lane, repave Tinker Lane
from Lawton Drive to Kaknu Way and repace Swires Road from the Kenai Spur Highway to the
start of Mountain View Elementary.
CITY HALL IMPROVEMENTS -
CONSTRUCTION
Department: Public Works
Total Project Cost: $800,000
Project Phased: Yes
Project Type: Building Improvement
Funding Source(s): Grant / General Fund
Potential Grant Identified: State Capital
Project Submission and Federal Grants to be
Identified
Operating Budget Impact: Decrease
Details: This project will replace the 40+ year -old exterior doors, windows. Make ADA
improvements to the front entrance, elevator and exterior siding.
20
RELOCATION OF PARKS & REC TO DAUBENSPECK
Department: Parks and Recreation
Total Project Cost: $3,150,000
Project Phased: Yes
Project Type: Building
Funding Source(s): Grant / General Fund
Potential Grant Identified: None
Operating Budget Impact: Increase
Details: This project will relocate Park & Rec facilities from their current location at 332 Airport
Way to 550 Daubenspeck where the Streets, Shop, and Building Maintenance division currently
resides. A new building including garage and office space shall be provided.
MULTIPURPOSE FACILITY ROOF
Department: Public Works
Total Project Cost: $925,000
Project Phased: No
Project Type: Building Maintenance
Funding Source(s): General
Potential Grant Identified: None
Operating Budget Impact: Decrease
Details: The Multipurpose facility was constructed in 1999. This project will replace the roof at
the expected end of life.
21
STORMWATER IMPROVEMENTS
Department: Public Works
Total Project Cost: $500,000
Project Phased: No
Project Type: Infrastructure
Funding Source(s): General Fund
Potential Grant Identified: None
Operating Budget Impact: Decrease
Details: This project will allow Public Works to continue addressing stormwater runoff, culvert,
and catch basin issues as they deteriorate throughout the City. Focus will be on flooding issues
in Inlet Woods Subdivision.
SENIOR CENTER LANDSCAPING
Department: Senior Center
Total Project Cost: $75,000
Project Phased: Yes
Project Type: Land Improvement
Funding Source(s): Senior Citizens Fund
Potential Grant Identified: None
Operating Budget Impact: No Effect
Details: This project would landscape the south lawn of the Senior Center to level the area,
replant grass and trees, and construct walkways for easy and safe maneuvering. This would
improve lost access to the perimeter of the building, yard, and bluff areas for private rentals
and the public, including wheelchair access. The project has been pushed back until the bluff
erosion has stabilized.
22
SOUTH SPRUCE REPAVING
Department: Public Works
Total Project Cost: $560,000
Project Phased: Yes
Project Type: Infrastructure
Funding Source(s): General Fund
Potential Grant Identified: None
Operating Budget Impact: Decrease
Details: Project will repave South Spruce Street from the Kenai Spur Highway to it's termination
at the beach.
SENIOR HOUSING FEASIBILITY STUDY
Department: Public Works
Total Project Cost: $300,000
Project Phased: No
Project Type: Planning
Funding Source(s): General Fund
Potential Grant Identified: None
Operating Budget Impact: None
Details: Feasibility Study to investigate the need for additional senior housing in our community
and the costs associated with the City of Kenai constructing and operating additional senior
housing.
23
FRONTAGE ROAD REPAVING
Department: Public Works
Total Project Cost: $1,120,000
Project Phased: Yes
Project Type: Infrastructure
Funding Source(s): General Fund
Potential Grant Identified: None
Operating Budget Impact: Decrease
Details: Project will repave Frontage Road from Maint Street to Bridge Access Road. Project
may include reduction in approaches onto the Kenai Spur Highway.
FIRST AVENUE AND MAIN STREET REPAVING
Department: Public Works
Total Project Cost: $70,000
Project Phased: Yes
Project Type: Infrastructure
Funding Source(s): General Fund
Potential Grant Identified: None
Operating Budget Impact: Decrease
Details: Project will repave Main Street from the Kenai Spur Highway to Cook Drive and First
Avenue from Main Street to Birch Street. Design funds in 2031. Construction would be FY2032.
24
MULTIPURPOSE FACILITY REFRIGERATION SYSTEM REPLACEMENT
Department: Parks & Recreation
Total Project Cost: $5,300,000
Project Phased: No
Project Type: Building Maintenance
Funding Source(s): Grant / General Fund
Potential Grant Identified: None
Operating Budget Impact: Decrease
COST: $ 5, 300, 000
Details: The refrigeration system for maintaining the ice rink during the winter is nearing the
end of life. Assessment with several replacement options was completed. Cost is to design and
replace existing system with a new carbon dioxide system to stop use of R-22 refrigerant.
Improvements to the mechanical room and replacement of the dasher boards would also occur
with this project.
SENIOR CENTER ROOF REPLACEMENT
DESIGN
Department: Senior Center
Total Project Cost: $100,000
Project Phased: Yes
Project Type: Building Improvement
Funding Source(s): Senior Citizens Fund
Potential Grant Identified: None
Operating Budget Impact: No Effect
� M -Val KVIEEL- 0
COST: $100,000
Details: The Senior Center roof is nearing 50 years old. Typical life span for a metal roof. Public
Works will monitor the roof to determine if this project can be shifted further away as we get
closer to the expected replacement timeline.
25
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26
WATER & SEWER FUND
FY2027
1
Name����
Water Main Line Improvements
TotalOrroject Project
$1,560,000
Grant/Bond
$1,400,000
$160,000
2
Airport Reservoir Pump House and Tank
Improvements — Design
$250,000
$250,000
3
Utility Truck
$100,000
$100,000
4
WWTP Effluent Flow Monitoring/Auto Dosing
$100,000
$100,000
5
Water Meter Equipment & Software
$100,000
$100,000
Totals
$2,110,000
$1,400,000
$710,000
FY2028
77m:.
W.—
.
,
ialw
6
Airport Reservoir Pump House and Tank
$3,000,000
$2,400,000
$600,000
Improvements - Construction
7
WWTP Operations/Headworks Renovation -
$400,000
$400,000
Design
8
Disinfectant Generation Equipment —
Construction
$500,000
$400,000
$100,000
9
Vac Truck Replacement
$600,000
$600,000
Totals
$4,500,000
$2,800,000
$1,700,000
FY2029
27
FY2030
FY2031
No
14
Project Name
Beaver Loop Water Main
Total Project Cost
$3,500,000
Grant/Bond
Funding
$3,000,000
City Funding
$500,000
15
Evergreen St Water and Sewer Mains
$1,250,000
$1,000,000
$250,000
16
Kenai Spur - Spruce to Forest Water Main
$500,000
$400,000
$100,000
17
Marathon and Willow Water and Sewer Main
Extensions
$1,100,000
$1,000,000
$100,000
Totals
$6,350,000
$5,400,000
$950,000
Note 1: City would complete design drawings for project prior to seeking grant funds and possible bond
proposition to complete construction.
28
WATER & SEWER PROJECTS
WATER MAIN LINE IMPROVEMENTS
Department: Public Works — Water & Sewer
Total Project Cost: $1,560,000
Project Phased: No
Project Type: Infrastructure
Funding Source(s): Water & Sewer Fund
Potential Grant Identified: State Revolving Fund
Operating Budget Impact: No Effect
Details: Funds will be used to improve and modify our water distribution system to improve
water quality in various areas throughout the City. The main areas to be targeted include the
installation of fire hydrants for improved flushing capability, water quality and fire coverage.
Work would also include looping of water mains to reduce dead ends, poor water quality and
water hammering issues. Project is currently shown as one large project with grant funding. If
grant funding is unavailable, work would be phased over several years with smaller
appropriations from Utility Fund to complete work.
29
AIRPORT RESERVOIR PUMP HOUSE AND TANK IMPROVEMENTS
Department: Public Works — Water & Sewer
Total Project Cost: $3,250,000
Project Phased: Yes
Project Type: Infrastructure
Funding Source(s): Water & Sewer Fund/Grant
Potential Grant Identified: State Revolving Fund
Operating Budget Impact: Decrease
Details: This project will provide equipment replacements at the Airport Reservoir Pump
House. This site has a three -million -gallon storage tank that provides the majority of the City's
water during daytime hours. This work will utilize the existing building but modify pumps and
controls to increase reliability and operations with our water plant. Project would include
replacement of existing insulation on the reservoir, modifications to the tank water lines and
modifications to reservoir connection to the water distribution system.
UTILITY TRUCK
Department: Public Works — Water & Sewer
Total Project Cost: $100,000
Project Phased: No
Project Type: Equipment
Funding Source(s): Water & Sewer Fund
Potential Grant Identified: None
Operating Budget Impact: Decrease
Details: Replacement of a truck for the Utility Department
30
WASTEWATER TREATMENT PLANT EFFLUENT FLOW MONITORING / DOSING
CONTROL
Department: Public Works — WWTP
Total Project Cost: $100,000
Project Phased: No
Project Type: Process Control
Funding Source(s): Water & Sewer Fund
Potential Grant Identified: None
Operating Budget Impact: Decrease
COST: $100,000
Details: This project will provide equipment to provide more accurate dosing of chemicals in the
treatment of wastewater effluent, which will result in savings in sodium hypochlorite and
sodium bisulfate. Chemical feed will vary based on the flow of effluent leaving the plant.
WATER METER EQUIPMENT AND
SOFTWARE
Department: Public Works — Water & Sewer
Total Project Cost: $100,000
Project Phased: No
Project Type: Information Technology
Funding Source(s): Water & Sewer Fund
Potential Grant Identified: None
Operating Budget Impact: Decrease
Smart later Metering
lw'�ff 2028 2029 2030 2031
Details: This project will standardize a software solution for reading meters for the department
for commercial facilities. This project will significantly reduce staff time in reading meters.
31
WWTP OPERATIONS/HEADWORKS RENOVATION
Department: Public Works — WWTP
Total Project Cost: $8,400,000
Project Phased: Yes
Project Type: Building/Infrastructure Improvement
Funding Source(s): Water & Sewer Fund/Grant/Bond
Potential Grant Identified: State Revolving Fund
Operating Budget Impact: Decrease
Details: This project will replace the primary operations building at the Waste Water Plant,
initially constructed in 1974, with additions in 1982. The facility is on the shore of Cook Inlet
and is subject to the constant presence of salt air. As a result, much of the facility doors,
windows, siding, hardware, etc., have rusted beyond repair. Due to the extent of remodel work
and other issues relating to the size of the facility, it has been determined that a new building is
in the City's best interest. In addition, the headworks of the plant is within this building and
replacing the influent manhole and screening system at the same time would be economical.
Costs will be determined through preliminary design efforts before full design and seeking grant
funds and possible bonding to complete project..
DISINFECTANT GENERATION EQUIPMENT
Department: Public Works — Water & Sewer
Total Project Cost: $500,000
Project Phased: No
Project Type: Equipment
Funding Source(s): Water & Sewer Fund / Grant
Potential Grant Identified: State Revolving Fund
Operating Budget Impact: Decrease
Details: This Project will allow the Public Works department to generate our own chlorine
disinfectant for use at the water and wastewater plants. This project will result in long-term
cost savings over purchasing liquid disinfectant.
32
VAC TRUCK
Department: Public Works — Water &
Sewer
Total Project Cost: $600,000
Project Phased: No
Project Type: Equipment
Funding Source(s): Water & Sewer Fund
Potential Grant Identified: None
Operating Budget Impact: No Effect
a
Details: This project will provide for the replacement of the City's existing Vac Truck. This
vehicle is an integral piece of equipment used regularly by the City. We have one, with no
backup other than contracting out the services at a significant expense to the utility. The truck
cleans and maintains wastewater lift stations and the overall sewer collection system. The truck
is also capable of jetting clogged lines.
FLORIDA AVE WATER MAIN
Department: Public Works — Water & Sewer
Total Project Cost: $460,000
Project Phased: Yes
Project Type: Infrastructure
Funding Source(s): Water & Sewer Fund
Potential Grant Identified: None
Operating Budget Impact: No Effect
i '
6.` N�� SB
t
S 4('��,cr)m�..4,
-
9
3,
0
2 _' 2
11
1
12
FLO Piya
AVE
6 _
7
5 - 5
8
2027 2028
2031
.0 000
$400,000
Details: Extend a new 12" water main connecting Fifth St. and Florida Ave and extending to
First St. This project is intended to remedy issues with 4" water mains installed 50+ years ago
as part of the old military base. With recent new construction in the area, the 4" mains are
limited in terms of how many homes can be served. The 12" main would reduce existing
bottlenecks in capacity. The total line extension is approximately 16001f.
33
BROAD STREET LIFT STATION GENERATOR
Department: Public Works — Water & Sewer
Total Project Cost: $600,000
Project Phased: No
Project Type: Infrastructure
Funding Source(s): Water & Sewer Fund
Potential Grant Identified: None
Operating Budget Impact: Decrease
Details: This project will provide backup power generation for the Broad Street lift station. This
station our highest priority during power outages as the high flows through it can cause fast
backups.
BEAVER LOOP WATER MAIN
Department: Public Works — Water & Sewer
Total Project Cost: $3,500,000
Project Phased: No
Project Type: Infrastructure
Funding Source(s): Water & Sewer Fund/Grant
Potential Grant Identified: State Revolving Fund
Operating Budget Impact: No Effect
Details: This project will install a 14" water down Beaver Loop Road to connect the main from
Togiak Street to Bridge Access Road. This main would supply an additional pathway to flow
water from the Water Treatment Plant through the City and greatly improve pressures in town.
In addition, this project would supply potential water usage on Beaver Loop, add fire hydrants
for fire fighting capabilities on Beaver Loop and increase water pressure and supply for fire
fighting through the City. Adding this loop to the system would reduce existing supply
bottlenecks as the water moves east to west through the City.
34
EVERGREEN STREET WATER AND SEWER
MAINS
Department: Public Works — Water & Sewer
Total Project Cost: $1,250,000
Project Phased: No
Project Type: Process Technology
Funding Source(s): Water & Sewer Fund
Potential Grant Identified: State Revolving Fund / CDBG
Operating Budget Impact: No Effect
COST: $1,250,000
Details: Construction of water and sewer mains through this area would provide additional
looping of water main and open adjacent lots for development with City infrastructure. Lift
station is expected for the sewer system.
KENAI SPUR —SPRUCE TO FOREST WATER � �P .16 j� J® � - � MAIN Iwo �� �-
Department: Public Works - Water & SewerJ?11rMW
Total Project Cost: $500,000
Project Phased: No ��
Project Type: Infrastructure
Funding Source(s): Water & Sewer Fund/Grant _ m
Potential Grant Identified: State Revolving Fund
Operating Budget Impact: No Effect
97"%Ex��Mnf
29 2031
Details: Construction of a 10" water main along the Kenai Spur Highway to provide another
loop for water to cross the creek to the west side of town. This would increase flows and
pressures to the west side of town.
35
MARATHON AND WILLOW WATER AND SEWER
MAIN EXTENSIONS
Department: Public Works - Water & Sewer
Total Project Cost: $1,100,000
Project Phased: No
Project Type: Infrastructure
Funding Source(s): Water & Sewer Fund/Grant
Potential Grant Identified: State Revolving Fund
Operating Budget Impact: No Effect
Details: Loop water main along right-of-way from Willow and Marathon to increase water
quality and reduce water pressure and water hammer issues in this area. Extension of both
utilites would enhance ability for future commercial development in this area.
36
Blank
37
CONGREGATE HOUSING FUND
FY2027
FY2028
FY2029
FY2030
FY2031
38
CONGREGATE HOUSING FUND PROJECTS
HALLWAY WALL REFINISHING
Department: Senior Center
Total Project Cost: $50,000
Project Phased: No
Project Type: Building Improvement
Funding Source(s): Congregate Housing Fund
Potential Grant Identified: None
Operating Budget Impact: No Effect
Details: This project would refinish hallways in Vintage Pointe. Wall paper is in poor condition
and needs replaced and existing painting needs redone.
APARTMENT KITCHEN AND BATHROOM REMODEL
Department: Senior Center
Total Project Cost: $450,000
Project Phased: Yes
Project Type: Building Improvement
Funding Source(s): Congregate Housing Fund
Potential Grant Identified: None
Operating Budget Impact: No Effect
COST: $50,000 $100,000 $100,000 $100,000 $100,000
Details: This project remodels the kitchen and bathrooms in three to six apartments each year
at Vintage Pointe. The project would replace original (1993) tile flooring, cabinetry, countertops,
and fixtures in kitchens and bathrooms to bring apartments into compliance with the Americans
with Disabilities Act. This project is not eligible for low-income housing grants.
39
40
PERSONAL USE FISHERY FUND
FY2027
FY2028
PON
Grant City Funding
Project Name snow Total Project Cost Funding
Nothing Currently Planned
FY2029
FY2030
FY2031
Grant City Funding
t Name
otal Project Cost Funding
LNothing-•
TotalOL . -
Personal Use Fishery Fund FY2027-2031
Grand Total
41
Blank
42
APPENDIX A -
CAPITAL PROJECT SCHEDULE
(INCLUDES PREVIOUSLY FUNDED PROJECTS AND FY27 PROPOSED PROJECTS)
FY27 Project Schedule
r
LL,
0
i
FY-2026
FY-2027
Project Cycle FY-2026-2027
J-26
F-26
M-26
A-26
M-26
J-26
J-26
A-26
S-26
0-26
N-26
D-26
J-27
F-27
M-27
A-27
M-27
J-27
Projects
Airport Fund
KMA Runway Rehabilitation
2021
Pre -Construction
Construction
Grant Closeout
KMA Airfield Marking, Crack Sealing, Sealcoat
2023
Pre -Construction
Construction Grant Closeout
Airport Master Plan Phase 1 & 2
2023
Phase 2
Perimeter Fenceline Improvements
2025
Design ITB Construction
Rehabilitate Taxiway
2026
Design
ITB
Animal Control Building Roof Replacement
2026
Design ITB
Construction
Flight Services RTU Replacement
2026
RFP Design
ITB Construction
General Fund
General Government
Bluff Stabilization Access Path
2015
35% Design Project On Hold
Cemetery Expansion Phase 1
2019
RFPJW"0 Design
ITB
Construction
Cemetery Expansion Phase 2
2022
Comprehensive Plan
2027
RFP
Plan Development
Public Safety
Repair Underground Water Tank
2023
On Hold for Public Safety Building Assessment
Community Wildfire Protection Mitigation Phase 3
2024
Construction - Phase 3
Fire Department Flooring Replacement
2024
On Hold for Public Safety Building Assessment
Emergency Services Facility Assessment
2025
Assessment Apply for Grants/Schematic Design
Public Works
Bridge Access Pedestrian Path
2020
On Hold awaiting DOT Funding
Wildwood Drive Rehabilitation
2021
Construction
City Hall HVAC Repairs
2021
Design
ITB Construction
Inlet Woods Storm Drain Repairs
2021
Public Works Evaluation RFP Design
City Hall Elevator
2024
On Hold to Design City Hall Improvements
Aliak Storm Water & Paving Repair Design
2024
ITB Construction
Street Lighting Improvements
2025
Assessment ITB Construction
0
Streets Assessment
2026
Assessment
1
1
1
GIS Mapping Improvements
2026
wim RFP Design
Downtown Asphalt Crack Sealing
2026
ITB Construction
Road Improvements and Repairs (Willow/Airport)
2026
RFP Design
ITB
Construction
Parking Lot Sealcoating and Repairs
2026
ITB Construction
City Hall Improvements - Design
2026
Design
Seek Grants / Future Budget
Parks, Recreation & Cultural
Slash Disposal Site
2023
Ongoing
Park Shelter Replacements
2023
Design ITB Construction
MPF Lighting and Exhaust Fans
2024
ITB Construction
Tractor Replacement
2026
Procurement
Parks & Recreation Master Plan
2025
Master Planning
Rec Center Gym Improvements
2026
ITB I Construction
Tractor Replacement
2026
Procurement
Old Town Playground Replacment Design
2027
RFP
Design
Seek Grant Funding
Rec Center Locker Room Refurbishment
2027
M
RFP Design Construction
FY27 Project Schedule
r
LL,
0
i
FY-2026
FY-2027
Project Cycle FY-2026-2027
J-26
F-26
M-26
A-26
M-26
J-26
J-26
A-26
S-26 0-26 N-26 D-26
J-27 F-27 M-27
A-27
M-27
J-27
Street Light Decoration Replacement
2027
Procurement
Water & Sewer Fund
Water & Sewer Projects
Lift Station Upgrades
2021
Construction
WTP Pump House Construction
2023
ITB Construction
Cemetery Creek Culvert
2024
Grant Dependent
Broad Street Lift Station Renovation
2025
Design ITB Construction
Disinfectant Generation Equipment - Design
2026
RFP I Design Seek Grant Funding
GIS Mapping Improvements
2026
RFP Design
WTP Fencing Improvements
2026
Grant Dependent
Water Main Line Improvements
2027
Grant Dependent
Airport Reservoir Pump House and Tank Improvements
2027
RFP Design
Utility Truck
2027
Procurement
Water Meter Equipment & Software
20.
Procurement
In -House Installation and Commisioning
Wastewater Facility Projects
Digester Blower Replacement and Building
2021
Contact Basin Repairs
2022
Construction
Electronic Gate and Controls
2023
Grant Dependent
WWTP Fencing Improvements
2026
Grant Dependent
Effluent Flow Monitoring and Auto -Dosing
2027
ITB Construction
Senior Center Fund
Senior Center Front Door Modifications
2022
Design
ITB Construction
Senior Center Canopy Roof Repair
2025
Design
ITB
Construction
Senior Center Door Project
2027
ITB Construction
Congregate Housing Fund
Vintage Kitchen/Bathroom Remodel
2023
Design
Phased Bidding and Construction TBD
Elevator Maintenance
2024
Design
ITB Construction
Hallway Wall Refinishing
2027
ITB
Construction
PU Fishery Fund
Personal Use Fishery Float Replacements
2023
In -House Construction
Boat Ramp Concrete Repairs
2025
ITB
Construction
Pronosed Fiscal Year 2027 Budaet Develoament Goals
Broad Statement of Puraose
The goal of the City is to prepare and adopt a fiscally responsible budget that meets the needs
and priorities of the community it serves. A fiscally responsible budget ensures revenues, taxes,
and fees are sufficient but not excessive to fund current operations and contribute to the long-
term maintenance of City infrastructure used to provide services. Meeting the needs and priorities
of the community means prioritizing essential services while being mindful that non -essential
services such as parks, recreation, arts, library, and senior services have significant importance
in creating a vibrant, well-balanced community in which individuals desire to live and businesses
seek to locate. Council's adoption of these goals is intended to guide the Administration through
its preparation of the City's FY2027 Annual Budget.
Specific Goals
1. Prepare a budget for consideration that meets the City's operational and long-term
financial obligations. The proposed budget should prioritize sustainability and consider
adjusting the City's current mill and sales tax rates only if necessary to ensure fiscal
stability and compliance with the General Fund, Fund Balance Policy codified in KMC
7.25.
2. Complete a review of the City's salary schedule and pay plan to ensure compensation
remains competitive with comparable public employers. The plan should support the
City's ability to recruit and retain qualified employees while protecting essential services
and infrastructure. Incorporate a salary increase not to exceed inflation, as measured by
the 2025 Alaska Consumer Price Index, second half over second half, if necessary to
maintain competitive compensation with other public employers.
3. Review the City's health, dental, and life insurance benefits to ensure long-term
sustainability while maintaining the current level and quality of coverage. Benefits should
remain comparable to those offered by other public employers, and employee cost -sharing
should likewise be comparable. If analysis indicates an increase in the employee cost
share is warranted, limit the increase to no more than 1 % of the premium costs
4. Identify opportunities for cost savings and operational efficiencies, while maintaining
service quality and effectiveness. Budget development shall be conducted through a
transparent process that incorporates performance measures and a comprehensive
review of past expenditures, future needs, and organizational priorities to support informed
decision -making and responsible resource allocation.
5. Compile a list of capital projects, which are projects that cost $35,000 or more, for Council
consideration and adoption to ensure that the minimum investment in maintaining City
infrastructure over time equals the depreciation, an accounting process by which the cost
of an asset is spread over its useful life, recorded annually on City capital assets and
infrastructure. The City's FY2025 depreciation by fund and function were:
General Fund $1,778,947
Airport Fund 2,306,604
Water & Sewer Fund 993,260
Total All Funds $5.0 88,811
6. Adjust rates, charges, and fees across all funds in line with inflation, as measured by the
Annual Alaska Consumer Price Index for All Urban Consumers. Any increase in the
monthly rents at Vintage Pointe for existing tenants as of June 30, 2025, shall be capped
at no more than $50.00 per month.
7. Utilize the results of the 2025 Community Survey to inform budget development by
identifying areas of high resident satisfaction to be maintained and priority service areas
where targeted investments or adjustments may be warranted. Budget recommendations
should reflect community priorities related to City services, economic development, quality
of life, and long-term community well-being, while remaining consistent with the City's
fiscal policies and overall financial capacity.
8. Project ending fund balance/retained earnings of at least 50% of the FY2026 budgeted
expenditures net of any projected lapse for the Airport, Water & Sewer, Personal Use
Fishery, and Congregate Housing Funds. Ensure any use of fund balance is for one-time
or capital purchases and not for recurring expenditures/expenses so that the ending fund
balance for each fund is not less than:
Airport Fund $1,864,079
Water & Sewer Fund 1,472,409
Personal Use Fishery Fund 277,698
Congregate Housing Fund 283,209
PUBLIC NOTICE
NOTICE of JOINT WORK SESSION
K E N A I January 7, 2026 at 4:00 p.m.
Notice is hereby given; the Kenai City Council will be conducting a
joint work session with the commissions of the City of Kenai on
Wednesday, January 7, 2026 for the purpose of discussing:
FY2026-2030 - Capital Improvement Plan
and
FY2026 - Budgetary Goals
The work session will begin at 4:00 p.m. and will be held in the Kenai
City Hall Council Chambers, 210 Fidalgo Avenue, Kenai, AK 99611.
The public is invited to attend and participate. Virtual and telephonic
options are available. Additional information is available through the
City Clerk's Office or by visiting the City of Kenai website at
Shellie Saner, MMC, City Clerk
Publish: 01/02/2026
CERTIFICATE OF PUBLICATION & POSTING
I, Shellie Saner, City Clerk of the City of Kenai, do hereby
certify that on the 26st 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 January 2,
2026 edition of their newspaper. On the 2nd day of
January, 2026, the Notice of Meeting and full meeting
agenda was -posted at Kenai City Hall and on the internet
.kenai.ci
5 le Sa r, MM , City Clerk
PUBLIC NOTICE
X. NOTICE of JOINT WORK SESSION
K E N A I January 7, 2026 at 4:00 p.m.
Notice is hereby given; the Kenai City Council will be conducting a
joint work session with the commissions of the City of Kenai on
Wednesday, January 7, 2026 for the purpose of discussing:
FY2026-2030 - Capital Improvement Plan
and
FY2026 - Budgetary Goals
The work session will begin at 4:00 p.m. and will be held in the Kenai
City Hall Council Chambers, 210 Fidalgo Avenue, Kenai, AK 99611.
The public is invited to attend and participate. Virtual and telephonic
options are available. Additional information is available through the
City Clerk's Office or by visiting the City of Kenai website at
www.kenai.ci�y.
Shellie Saner, MMC, City Clerk
Publish: 01 /02/2026
PUBLIC NOTICE
jC17--11
NOTICE OF WORK SESSION
KENAIWEDNESDAY� JANUARY 7, 2026 @ 4:00 P.M.
Notice is hereby given: the Kenai City Council will be conducting a work session on
Wednesday, January 7, 2026 for the purpose of discussing:
FY2026-2030 Capital Improvement Plan & FY2026 Budgetary Goals
The work session will begin at 4:00 p.m. and will be held in the Kenai City Hall Council Chambers,
210 Fidalgo Avenue, Kenai, AK 99611.
The public is invited to attend and participate. Virtual and telephonic options are available.
Additional information is available through the City Clerk's Office or by visiting the City of Kenai
website at www.kenai.city.
(KMC 1.10,0601 Shellie Saner, MMC, City Clerk
Posted:01/02/2026