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HomeMy WebLinkAbout2026-02-04 Council PacketPage 1 KENAI Kenai City Council - Regular Meeting February 04, 2026 — 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 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. Annual Review of City of Kenai Permanent and Custody Funds, 2025 Financial Performance, Financial Projections and Recommend 2026 Asset Allocation for the City's Permanent and Custody Funds, Chief Executive Officer Bill Lierman and Chief Investment Officer Brandy Niclai, from Alaska Permanent Capital Management. C. SCHEDULED PUBLIC COMMENTS (Public comments limited to ten (10) minutes per speaker; twenty (20) minutes aggregated) 1. Kenai Chamber of Commerce and Visitor Center Annual Report, Samantha Springer, Executive Director. D. UNSCHEDULED PUBLIC COMMENTS (Public comments limited to three (3) minutes per speaker; thirty (30) minutes aggregated) E. PUBLIC HEARINGS 1. Ordinance No. 3500-2026 - Sunsetting the Harbor Commission, Amending Kenai Municipal Code 1.90.010 - General Standards for Standing Advisory Commissions, Repealing Kenai Municipal Code 1.95.040 - Harbor Commission, Repealing Kenai Municipal Code 11.20 - Leasing of Tidelands, Amending Kenai Municipal Code 14.05.010 - Duties and Powers, Enacting Kenai Municipal Code 22.05.016 - Tidelands Available for Leasing, Enacting Kenai Municipal Code Chapter 22.10 - Tideland Leases for Shore Fisheries, and Amending Council Policy 20.020 to Reflect the Sunsetting of The Harbor Commission. (Administration) 2. Ordinance No. 3501-2026 - Determining Four City -Owned Properties in the Beaver Loop Area are Not Needed for a Public Purpose and Authorizing Sale by Public Sealed Bid Auction. (Administration) Kenai City Council - Regular Meeting Page 1 of 3 February 04, 2026 Page 2 3. Ordinance No. 3502-2026 - Authorizing the City Manager to Reimburse Annual Leave Used by Firefighter Garrick Martin for Attending a Paramedic Internship Program. (Administration) 4. Ordinance No. 3503-2026 - Increasing Estimated Revenues and Appropriations in the Water & Sewer Capital Project Fund and Accepting a Loan from the State Revolving Fund Program for the Water Treatment Pumphouse Project. (Administration) 5. Resolution No. 2026-10 - Authorizing the Use of the Equipment Replacement Fund for the Purchase of a New Trackless MT7 with Snow Blower Attachment. (Administration) 6. Resolution No. 2026-11 - Designating the Investment and Allocation Plan for the City's Permanent Funds and Establishing Appropriate Benchmarks to Measure Performance for Calendar Year 2026. (Administration) F. MINUTES 1. *Regular Meeting of January 21, 2026. (City Clerk) G. UNFINISHED BUSINESS H. NEW BUSINESS 1. *Action/Approval - Bills to be Ratified. (Administration) 2. *Ordinance No. 3504-2026 - Accepting and Appropriating an Increase in the Title III Grant from the State of Alaska Department of Health, Division of Senior and Disabilities Services, for Nutrition, Transportation, and Support Services. (Administration) 3. Action/Approval - Confirmation of Mayoral Nomination for a Partial Term Appointment of Scott Bremer to the Airport Commission. (Knackstedt) 4. Discussion - Scheduling a Work Session with Alaska Permanent Capital Management to Discuss Potential Amendments to Kenai Municipal Code Investment Options. (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 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 Kenai City Council - Regular Meeting Page 2 of 3 February 04, 2026 Page 3 M. EXECUTIVE SESSION New Gas Storage Facility within the City of Kenai. Pursuant to AS 44.62.310(c)(1) a Matter of which the Immediate Knowledge may have an Adverse Effect upon the Finance of the City and AS 44.62.310(c)(3) a Matter which by Law, Municipal Charter, or Ordinance are required to be Confidential. (Administration) 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:Hus02web.zoom.us/meeting/register/Olf3n PBTH-GazGogdvgug Kenai City Council - Regular Meeting Page 3 of 3 February 04, 2026 Page 4 ALASKA PERMANENT CAPITAL MANAGEMENT Registered investment Adviser Staying focused on your goals City of Kenai Permanent Funds As of December 31, 2025 Page 5 APCM September 2008 $22,9231732 $1816191071 $39,9311916 +7.79% 0.15% 54% 29% 17% 2 1 TRUSTED ADVISORS • MORE EXPERTS • BETTER ACCESS *Performance is gross of management fees, net of internal fund fees, and annualized for periods greater than one year. The power of consistency in cumulative earnings Page 6 APCM $45 Current Market Value: Contributions: Withdrawals: Net Earnings: - $39.9M $22.9M $18.6M __p$35.6M t $35�� �i 01, 0 $25 -+ �- $15 $5 15.6% 17.0% 13.1% 12.0% 13.5% ° 7.5% 12.0% 10.8% 11.9% 12.8% 9.3% 13.4% 1� 6.0'° 1 1 1� 1 -4.5% 13.6% 2008 2010 2012 2014 2016 2018 2020 2022 2024 3 1 TRUSTED ADVISORS • MORE EXPERTS • BETTER ACCESS Chart shows month -end portfolio market values and calendar year returns from inception to December 31, 2025. 2025 Market Recap Total Returns by Asset Class - Calendar year 2025 Cash o L International Bonds Y U Tips 1-5 G/C U.S. Fixed Income Alt. Beta Gold v '— Commodities F- v REIT a Datacenters 4.2% 3.0% ] 6.1% ] 6.1% 7 7.1% J 6.0% Page 7 APCM Despite these concerns, markets ultimately proved resilient. Trade fears faded, recession risks failed 64.6% to materialize, and investor focus shifted toward 15.5% the supportive effects of fiscal and monetary 1.9% stimulus in the second half of the year. 28.9% Infrastructure 18.1% Emerging Markets 1 1 32.1% Japan 25.9% European Financials 65.2% Developed Markets 31.8% Cybersecurity -5.2% v U.S. Small Cap 0 5.9% Electrical Grid 29.6% U.S. Mid Cap 0 7.5% Semiconductors 40.7% U.S. Large Cap 17.8% High Yield 8,5% Risk -on sentiment broadened as the year progressed, producing an "everything rally" and marking the first year since the pandemic in which all major asset classes delivered positive returns. While medium -term inflation risks remain, fears of a tariff -driven price shock similar to 2022 proved unfounded, allowing central banks to continue the gradual normalization of interest rates. 4 1 TRUSTED ADVISORS • MORE EXPERTS • BETTER ACCESS Source: Bloomberg and Oxford Economics. Returns are representative of market returns, and do not reflect actual portfolio performance. Evaluating returns against strategic goals Page 8 APCM Rolling 12 Month Total Return Since Inception 40% Upper bound of expected range of returns within one year (28.5%) 30% ................................ ...... ...... 20% 10% 0% -10% -20% Lower bound of expected range of returns within one year (-14.1%) -30% Avg. loss in extreme conditions within one year (-25.8%) -40 % ,ti0 ,LO ,y0 ,y0 ,LO ,y0 ,LO ,LO ,LO ,LO ,LO ,LO ,LO ,LO ,LO ,LO ,LO ,LO Account Performance December 31, 2025 15.0% 13.5% 13.0% 10.0% 7.8% 7.9% 7.3% 7.4% 6.2% 6.2% 5.0% 0.0 % Since Inception 10 Year 5 Year ■ Permanent Fund 5 1 TRUSTED ADVISORS • MORE EXPERTS • BETTER ACCESS 11.8% 12.1% 3 Year 1 Year Quarter to Date Strategic Benchmark 0.4% 0.3% Month to Date Portfolio performance is gross of management fees and net of fund fees. Aligning near -term tactical adjustments with your long-term strategy U.S. FIXED INCOME ; 0 u Y CASH U.S. HIGH YIELD FIXED INCOME U.S. LARGE CAP EQUITY v U.S. MID CAP EQUITY a Y K U.S. SMALL CAP EQUITY DEVELOPED INTERNATIONAL EQUITY EMERGING MARKET EQUITY R EITS v M v INFRASTRUCTURE a ALTERNATIVE BETA 16M Risk Control 29.0% U.S. FIXED INCOME 26.0% CAS H 3.0% Risk Assets 54.0% U.S. HIGH YIELD FIXED INCOME 4.0% U.S. LARGE CAP EQUITY 22.0% U.S. MID CAP EQUITY 10.0% U.S. SMALL CAP EQUITY 5.0% DEVELOPED INTERNATIONAL EQUITY 8.0% EMERGING MARKET EQUITY 5.0% Alternatives 17.0% ■ Core Weight REITS 2.0% ■ Tilt Weight - INFRASTRUCTURE 5.0% ALTERNATIVE BETA 10.0% Page 9 APCM 0.6% 29.6% -1.3% _X 24.7% 6 - 36% 1.9% 4.9% 0 - 10% im. 54.1% 0 -0.2% 3.8% 0 - 8% 0.0% -0.4% 0.0% 22.0% 12 - 32% 9.6% 0 - 18% 5.0% 0 - 10% 0.5% 8.5% 4 - 16% 0.2% 5.2% 0 - 10% -0.7% 16.3% -0.1% 1.9% 0 - 4% -0.3% 4.7% 0 - 10% -0.3% 9.7% 0 - 15% 6 1 TRUSTED ADVISORS • MORE EXPERTS • BETTER ACCESS 2026 Returns Will Be Driven by Earnings Strength and Ongoing Economic Growt page 10 Global Growth Proved Resilient in 2025, with Expansion Earnings Growth Across Major Markets Supports Equity Expected to Continue Return Potential Earnings growth: Pandemic to presenVoonsensus estimWAs Real GDP Growth (%YoY) Jan 2020 = 100, last 12 months, local currency, monthly 3 5.0 00 4.5 i —tndia 275 j 4.0 -Japan issnaus 3.9 z5❑ -Eurozone 3.5 —China / � 225 � 3.0 l l 200 � T 2.5 4-- Recession / 175 2.0 1.9 1.5 1.5 150 1.0 i 125 � 0.5 100 0.0 2022 2023 2024 2025 2026 2027 75 T Advanced economies — Emerging market and developing economies United States 50 20 21 '22 '23 '24 Semiconductor Margins Remain Strong, Reinforcing the Al Investment Cycle 45 EBITDA Markin 35 `k7 15 5 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 US Large Cap Semiconductor Stocks 7 1 TRUSTED ADVISORS • MORE EXPERTS • BETTER ACCESS Emerging Markets Combine Attractive Valuations, Stronger Earnings Growth, and Al Exposure 25 20 15 10 5 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Developed International Emerging Markets US Large Cap Source: Factset and JP Morgan 1%* lilive", Forward -looking return and risk characteristics The City of Kenai Permanent Funds' current asset allocation is expected to meet the goals of the portfolio over the long term. The expected real return of the portfolio is in line with the maximum distribution (4.2%) from either Permanent Fund per code. There are no recommended changes at this time. Current Allocation ■ Risk Assets ■ Alternatives ■ Risk Control Assets LPage 12 APCM Expected Range* Annual Return (Gross) 7.2% -14.1% to 28.5% Long -Term Return (Gross) 6.7% 6.4%to 7.0% Real Return (Gross) 4.2% 3.9% to 4.5% Long -Term Return Less 2.S Expected Inflation Avg. Loss in Extreme Conditions (Gross) -25 8% Within a 1-Year Horizon 9 1 TRUSTED ADVISORS • MORE EXPERTS • BETTER ACCESS * Range denotes the 95%confidence interval. Risk and return data from Windham Portfolio Advisor. Airport Land Sale Permanent Fund Inflation and goals Preservation of Capital $26.1 $25.0 $25.6 $23.4 Inflation Protection Sustain a 3.8% to 4.2% withdrawal Pre Covid Inception—12/31/2020 Post Covid 12/31/2020 - 12/31/2025 AP('M'-, FxnPrtatinn Airport Land Sale Permanent Fund $31.0 $31.3 $30.2 $28.6 $28.4 $26.5 $26.1 $28.3 ♦Market Value ♦Inflation Adjusted Principal 20.0 Dec-18 Dec-19 Dec-20 Dec-21 Dec-22 Dec-23 10 1 TRUSTED ADVISORS • MORE EXPERTS • BETTER ACCESS $32.2 $29.9 Page 13 APCM Inflation Rate Annualized 1.49% $33.3 $32.9 YoY, the deficit has been reduced by 85% Dec-24 Dec-25 ALSPF withdrawal projections 10-year horizon City of Kenai Municipal Code 7.30.020(5)(i) Appropriations from the ALSPF may be made as follows: In any fiscal year, the amount available for appropriation for airport operations and capital needs will be based upon the five (5) year average of the fund's calendar year end market value. An amount not to exceed three and four -fifths percent (3.8%) of the five (5) year average market value may be distributed if the average market value is less than the fund's inflation adjusted principal balance. An amount not the exceed four and one -fifth percent (4.2%) of the five (5) year average market value may be distributed if the average market value is greater than the fund's inflation adjusted principal balance. $1.77 $1.61 $1.94 $2.11 $2.26 $2.41 Page 14 APCM $2.55 $1.32 — $1.40 — $1.44 � $1.47 � $1.52 $1.33 � $1.36 $1.19 — $1.21 $1.13 51.21 51.13 � 51.15 � 51.13 Sl.11 51.13 51.13 Sl.11 $1.07 $1.05 $1.02 $1.01 $1.01 The probability that the ALSPF may withdraw at the 4.2% rate begins at 0% and increases to 43% (vs. 36% estimate from 2025) over the simulation horizon. 2026 2027 2028 2029 95th Percentile 75th Percentile 2030 2031 2032 2033 2034 2035 50th Percentile 25th Percentile 5th Percentile 11 1 TRUSTED ADVISORS • MORE EXPERTS • BETTER ACCESS Airport Land Sale Permanent Fund Wealth Simulations 10-year horizon ■ All simulations utilized a $32.9M starting market value for the ALSPF. No contributions were included. ■ Withdrawals for the ALSPF conformed to City of Kenai Municipal Code 7.30.020(5)(i) using the actual change in CPI-U when available and APCM's forward -looking CPI expectation of 2.5% for all future dates. ■ Utilizing APCM's records of historical market values and the spending policy per Kenai Municipal Code 7.30.020(5)(i), APCM's calculation of the 2026 ALSPF distribution is $1.13M. Projected Ending Wealth $80 O 5% Cl $70 $60 $50 50% of _ outcomes $40 $30 — 95% Cl $20 ■ $73.5 pq $25.5 Expected Inflation Adjusted Principal Expected (50%) $42.9 Airport Land Sale Permanent Fund (ALSPF) Page 15 own APCM 12 1 TRUSTED ADVISORS • MORE EXPERTS • BETTER ACCESS Risk and return data from Windham Portfolio Advisor. Withdrawals shown at the 501h percentile. Market values for each sub fund derived from the breakout provided by City of Kenai. All distributions simulated at the 501h percentile were at the 3.8% rate. General Fund Land Sale Permanent Fund Inflation and goals Preservation of Capital $2.9 000 - $2.8 $3.4 $2.9 Inflation Protection Sustain a 4% withdrawal 0 � Period Pre Covid Inception—12/31/2020 Post Covid 12/31/2020 - 12/31/2025 APCM's Expectation 10 Year Projection General Fund Land Sale Permanent Fund $3.9 $3.6 $3.- $3.0 Dec-18 Dec-19 Dec-20 Dec-21 13 1 TRUSTED ADVISORS • MORE EXPERTS • BETTER ACCESS Page 16 APCM Inflation Rate Annualized 1.49% me I •N 2.50% $4.3 $3.8 $3.7 $3.4 $3.7 $3.5 $3.6 $3.2 YoY, the surplus has increased by 116% Market Value +Inflation Adjusted Principal Dec-22 Dec-23 Dec-24 Dec-25 General Fund Land Sale Permanent Fund Wealth Simulations 10-year horizon ■ All simulations utilized a $4.3M for the GLSPF. No contributions were $10 included. $9 ■ Withdrawals for the GLSPF conformed to City of Kenai Municipal Code 7.30.020(6) using the actual change in CPI-U when available and $g APCM's forward -looking CPI expectation of 2.5% for all future dates. ■ Per Kenai Municipal Code 7.30.020(6) distributions will be the lesser of $7 the cumulative earnings at calendar year end for the fund or four percent (4%) of the fund's fair market value. "Cumulative earnings" is $6 defined as the market value at calendar year end minus the fund's inflation adjusted principal balance. $5 ■ Utilizing APCM's records of historical market values and the spending $4 policy APCM's calculation of the 2026 GLSPF distribution is $171K. In any given year within the simulation, the probability that a $3 distribution can be made is 84%. Projected Ending Wealth $9.1 5% CI Page 17 APCM General Fund Land Sale Permanent Fund (GLSPF) Distributions 171 175 179 183 189 194 200 206 214 220 Cumulative 570 576 594 628 666 717 757 832 863 924 Earnings 14 TRUSTED ADVISORS MORE EXPERTS BETTER ACCESS Risk and return data from Windham Portfolio Advisor. Withdrawals shown at the 50th percentile. Market values for each sub fund derived from the breakout provided by City of Kenai. GLSPF cumulative earnings projections 10-year horizon In any given year within the simulation, the probability that a distribution can be made is 84%. 0 LPage 18 APCM $4,331 $4,032 $666 $717 - $757 $832 � $863 � $924 $594 =' $628 -$251 0 -$365 -$431 $516 -$541 -$583 5637 -$688 -$704 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 95th Percentile 75th Percentile 50th Percentile 25th Percentile 5th Percentile 15 1 TRUSTED ADVISORS • MORE EXPERTS • BETTER ACCESS Delivering value through efficient beta and selective alpha APCM defines our investment philosophy on two key pillars: customized asset allocation and controlling expenses. Adhering to these concepts is the Firm's area of specialization and expertise. LPage 19 APCM Broad market Exposure to emphasize Manager driven exposure / market segment compensated risk premia non-systematic risk FLEXSHARES STOXX GLOBAL INFRA GLOBAL X DATA CENTER JPM BETABLDRS MSCI US REIT ISHARES CORE MSCI EAFE ETF FIRST TRST NASD CL EDG SGIIF ISHARES CORE MSCI EMERGING SS SPDR P HIGH YIELD ETF SPDR S&P 500 ETF TRUST ISHARES SEMICONDUCTOR ETF ISHARES CORE S&P MIDCAP ETF ISHARES CORE S&P SMALL -CAP E GLOBAL X CYBERSECURITY ETF Due to APCM's overall AUM size, we Calamos are able to access institutional share classes of mutual funds for our clients, Vanguard which typically have lower fees. Blackrock JPMORGAN HEDGED EQUITY ETF NYLI HDG MLT-STR TRC ETF-USD Market Neutral Income Fund High -Yield Corporate Fund BLCKRCK SYST MULTI-STR-INST CALAMOS MRKT NEU INC-I VANGUARD HI YLD CORP-ADM 0.97% 0.12% Systematic Multi - Strategy Fund >t0.93% 1.22% 0.22% A 1.20% J 16 1 TRUSTED ADVISORS • MORE EXPERTS • BETTER ACCESS *Employer -sponsored retirement plan exclusive share classes were excluded Independent manager & strategy selection An open -architecture approach focused solely on what serves clients best There Are Now More ET / Number ul US -Listed Campanle; 2010 2015 • Access to both index -based and active strategies • Ability to select specialists across asset classes • No reliance on proprietary funds or products • Continuous evaluation of managers and strategies • Willingness to resize, replace, or exit • Decisions grounded in risk and forward -looking expectations LPage 20 APCM IJ zo fi0 sa 4.a 30 2.0 1.0 0 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2019 • Strategy selection driven by objectives • Flexibility as leadership evolves • No embedded incentives 17 1 TRUSTED ADVISORS • MORE EXPERTS • BETTER ACCESS Sources Morningstar, Bloomberg, McKinsey, Prequin, Moonfare and World Bank ALASKA PERMANENT CAPITAL MANAGEMENT Registered investment Adviser City Of Kenai — Custody (as of December 31, 2025) 6% 5% 4% 3% 2% m T - a Ln Ln Ln Ln ui Ln Ln Ln Ln Ln Ln Ln N N N N N N N N N N N N N N N N N N N N N N N N N V C i ? C - bD Q > v i ? C - bn O- > U Q1 f6 N O- 7 7 N U O N l0 N O- 7 7 N U O a) o L Q Q v, o z o—� a Q(�n o z o Kenai - Custody Bench* Allspring MMF *Bench: Bloomberg 1-3 Gov What has happened: ■ As securities mature and cash becomes available for reallocation, we have extended the portfolio's duration the extent possible in US Treasuries and Callable Agencies. ■ The portfolio duration (sensitivity to interest rates) now stands at 1.46 years vs the bench at 1.88 years ■ There has been no liquidity needs from the portfolio since inception. Going forward: Annual coupon income over the next 12 months is expected to be $1,062,925 on the current portfolio. Work with staff and council to identify possible work session dates to explore options to align liquidity, risk, and recommend changes to the investment policy statement. Page 22 APCM Kenai - Bench* GVIXX Custody Market Value $35,127,630 - - Annual Yield ** 3.71% 3.50% 3.68% Average Quality AA+ AA+ AAA Average Maturity (Years) �i 1.72MA 1.98 L *Bench: Bloomberg 1-3 Gov **YTM for port/bench, 7-day SEC Yield for GVIXX Gross Bench* GVIXX QTD 1.10% 1.14% 0.97% 1 Year 5.02% 5.17% 4.17% Since Inception 4.63% 4.72% 4.23% (111612024) *Bench: Bloomberg 1-3 Yr Gov Performance annualized for periods greater than one year. 19 1 TRUSTED ADVISORS • MORE EXPERTS • BETTER ACCESS City of Kenai - Custody (as of December 31, 2025) 0-1 Years 43.5% $15,297,414 1-2 Years 24.0% $8,417,490 2-3 Years 10.2% $3,568,230 3-5 Years 22.3% $7,844,496 Total 100% $35,127,630 Portfolio Composition 100% 1 2% 2% 1% 60% 40% ' 20% 0% 12/31/2024 6/30/2025 12/31/2025 ■ Treasuries ■ MBS ■ Agencies ■ Cash ■ CDs May not add to 100% due to rounding LPage 23 APCM ■ Investments shall have maturities less than 5 years ■ At least 20% of the portfolio shall be held in maturities of 1-year or less ■ No more than 30% of the portfolio may be invested in securities with maturities of longer than 2-years ■ Authorized instruments shall be limited to the obligations of the US Government, its agencies, repurchase agreements, and government money market funds ■ The Federal Reserve decreased its benchmark rate three times over 2025 to 3.50-3.75%. Fed Fund Futures markets currently price in two rate cuts by end of 2026. ■ The FOMC terminal target rate decreases to 3.15% in 2026 and in 2027 stays flat to 3.18%. ■ Interest rates steepened across the curve during the quarter. The 2yr decreased by 13 basis points ending December at 3.48%. The 10yr increased 2 by basis points ending December at 4.17%. 20 1 TRUSTED ADVISORS • MORE EXPERTS • BETTER ACCESS 7Pag7e24 ] Disclosures Page 25 APCM Important Assumptions IMPORTANT: The projections or other information generated by Alaska Permanent Capital Management Company (APCM) regarding the likelihood of various outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. There can be no assurance that the projected or simulated results will be achieved or sustained. The charts and data only present a range of possible outcomes. Actual results will vary over time, and such results may be better or worse than the simulated scenarios. Clients should be aware that the potential for loss (or gain) may be greater than that demonstrated in the simulations. Please note that the analysis does not take into consideration all asset classes, and other asset classes not considered may have characteristics similar or superior to those being analyzed. Important Legal Information These calculations are designed to be informational and educational only, and when used alone, do not constitute investment advice. APCM encourages investors to review their investment strategy periodically as financial circumstances do change. Model results are provided as a rough approximation of future financial performance. Actual results could produce different outcomes (either better or worse) than those illustrated by the model, since it is not possible to anticipate every possible combination of financial market returns. APCM is not responsible for the consequences of any decisions or actions taken in reliance upon or as a result of the information provided by the results of the model. Other Influences on Rates of Return Investment management fees: Returns are presented gross of management fees and include the reinvestment of all income. Actual returns will be reduced by investment advisory fees and other expenses that may be incurred in the management of the account. The collection of fees produces a compounding effect on the total rate of return net of management fees. As an example, the effect of investment management fees on the total value of a client's portfolio assuming (a) quarterly fee assessment, (b) $1,000,000 investment, (c) portfolio return of 8% a year, and (d) 1.00% annual investment advisory fee would be $10,416 in the first year, and cumulative effects of $59,816 over five years and $143,430 over ten years. Actual investment advisory fees incurred by clients may vary. Taxes: Unless noted otherwise, model results have not been adjusted for any state or federal taxes or penalties. Inflation: Unless noted otherwise, model results do not adjust any inputs or outcomes for inflation. Inflation is assumed to be constant over the investment horizon. Limitations Inherent in Model Results Limitations include but are not restricted to the following: Model results do not represent actual trading and may not reflect the impact that material economic and market factors might have had on APCM's decision making if the actual client money were being managed. Extreme market movements may occur more frequently than represented in the model. Some asset classes have relatively limited histories. While future results for all asset classes in the model may materially differ from those assumed in APCM's calculations, the future results for asset classes with limited histories may diverge to a greater extent than the future results of asset classes with longer track records. Market crises can cause asset classes to perform similarly over time; reducing the accuracy of the projected portfolio volatility and returns. The model is based on the long-term behavior of the asset classes and therefore is less reliable for short-term periods. This means that the model does not reflect the average periods of "bull" and "bear" markets, which can be longer than those modeled. The model represent APCM's best view of the next 7-10 years, but is unlikely to reflect actual investment returns worldwide over this period. 22 1 TRUSTED ADVISORS • MORE EXPERTS • BETTER ACCESS KENAI CITY OF KENAI ORDINANCE NO. 3500-2026 Sponsored by: Administration AN ORDINANCE SUNSETTING THE HARBOR COMMISSION, AMENDING KENAI MUNICIPAL CODE 1.90.010 - GENERAL STANDARDS FOR STANDING ADVISORY COMMISSIONS, REPEALING KENAI MUNICIPAL CODE 1.95.040 - HARBOR COMMISSION, REPEALING KENAI MUNICIPAL CODE 11.20 - LEASING OF TIDELANDS, AMENDING KENAI MUNICIPAL CODE 14.05.010 - DUTIES AND POWERS, ENACTING KENAI MUNICIPAL CODE 22.05.016 - TIDELANDS AVAILABLE FOR LEASING, ENACTING KENAI MUNICIPAL CODE CHAPTER 22.10 - TIDELAND LEASES FOR SHORE FISHERIES, AND AMENDING COUNCIL POLICY 20.020 TO REFLECT THE SUNSETTING OF THE HARBOR COMMISSION. WHEREAS, the Harbor Commission was originally established as a Port Commission in 1975; and, WHEREAS, the Harbor Commission has held an instrumental role in planning and developing the City's tideland leases; and, WHEREAS, within the last several years, due to a lack of agenda items or lack of quorum, the Harbor Commission has cancelled numerous meetings and with the completion of the City's Bluff Erosion Project and few other known Harbor activities in the near future, it is reasonable to expect the Harbor Commission will have few other agenda items; and, WHEREAS, on November 10, 2025, the Harbor Commission met in a work session and a regular meeting for the purpose of discussing its role, future status and possible sunset of the Commission; and, WHEREAS, during the regular meeting on November 10, 2025, the Harbor Commission Members unanimously approved a motion to recommend the City Council sunset the Commission; and, WHEREAS, the City Council during their November 19, 2025, meeting approved a motion directing the Administration to bring forward the legislation necessary to sunset the Commission; and, WHEREAS, the Harbor Commission during their December 8, 2025, Special Meeting recommended the City Council enact this Ordinance; and, WHEREAS, the Planning and Zoning Commission during their December 10, 2025, Meeting recommended the City Council enact this Ordinance; and, WHEREAS, while the Harbor Commission can be reestablished if needed, this Ordinance shifts its prior duties and obligations to other sections of code including the duties of the Planning Commission; and, WHEREAS, Kenai Municipal Code 1.90.010-Creation, provides that the Council may create or dissolve standing advisory commissions and it is in the best interest of the City to enact this ordinance. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, AS FOLLOWS: Section 1. Amendment of Section 1.90.010 of Kenai Municipal Code: That Kenai Municipal Code, Section 1.90.010 - General Standards for Advisory Commissions, Creation, paragraph (a) is hereby amended as follows: New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 3500-2026 Page 2 of 9 1.90.010 Creation. (a) Standing advisory commissions of the City may be created or dissolved by an ordinance of the City Council. The following standing advisory commissions have been created by the Council: (1) Airport Commission, as established in KMC 1.95.010; (2) Beautification Commission, as established in KMC 1.95.020; (3) Council on Aging Commission, as established in KMC 1.95.030; [(4) HARBOR COMMISSION, AS ESTABLISHED IN KMC 1.95.040;] [(5)] (4) Parks and Recreation Commission, as established in KMC 1.95.050. Section 2. Repeal of Section 1.95.040 of Kenai Municipal Code: That Kenai Municipal Code, Section 1.95.040 - Standard Advisory Commissions, Harbor Commission, is hereby repealed as follows: f 1.95.040 HARBOR COMMISSION. (A) PURPOSE. THE PURPOSE OF THE HARBOR COMMISSION IS TO ADVISE THE COUNCIL AND ADMINISTRATION ON ISSUES INVOLVING CITY HARBOR FACILITIES AND TIDAL OR SUBMERGED LANDS OWNED BY THE CITY. (B) DUTIES AND POWERS. THE HARBOR COMMISSION WILL: (1) REVIEW AND PROVIDE RECOMMENDATIONS ON ANY MASTER PLANS FOR THE DEVELOPMENT OF HARBOR OR PORT FACILITIES FOR THE CITY. THIS MAY INCLUDE: (I) DEVELOPMENT OF THE TYPE, LOCATION, AND SEQUENCE OF ALL PUBLIC HARBOR FACILITIES; AND (II) THE RELOCATION, REMOVAL, EXTENSION, OR CHANGE OF USE OF EXISTING HARBOR FACILITIES; (2) ACT IN AN ADVISORY CAPACITY TO THE COUNCIL AND ADMINISTRATION REGARDING MATTERS RELATED TO CITY HARBOR FACILITIES, TIDE OR SUBMERGED LANDS. MAKE RECOMMENDATIONS TO THE COUNCIL AND ADMINISTRATION RELATIVE TO THE CARE, CONTROL, AND DEVELOPMENT OF TIDE AND SUBMERGED LANDS; AND (3) SUBMIT ANNUALLY TO THE CITY MANAGER AND COUNCIL, NOT LESS THAN NINETY (90) DAYS PRIOR TO THE BEGINNING OF THE BUDGET YEAR, A LIST OF THE RECOMMENDED CAPITAL IMPROVEMENTS WHICH, IN THE OPINION OF THE COMMISSION, ARE NECESSARY OR DESIRABLE TO BE CONSTRUCTED DURING THE FORTHCOMING FIVE (5) YEAR PERIOD. SUCH LIST WILL BE ARRANGED IN ORDER OF PREFERENCE, WITH RECOMMENDATIONS AS TO WHICH PROJECTS ARE RECOMMENDED FOR CONSTRUCTION IN WHICH YEAR; AND (4) REVIEW ALL CITY LEASES OF CITY -OWNED TIDE AND SUBMERGED LANDS AND MAKE RECOMMENDATIONS TO THE CITY COUNCIL AND ADMINISTRATION; AND (5) PROVIDE INFORMATION AND RECOMMENDATIONS AS REQUESTED BY THE CITY COUNCIL AND ADMINISTRATION; AND (6) ADVISE AND PROVIDE RECOMMENDATIONS TO THE ADMINISTRATION AS REQUESTED ON THE QUALIFICATIONS FOR A HARBOR MASTER. (C) QUALIFICATIONS AND MEMBERSHIP. MEMBERS OF THE HARBOR COMMISSION WILL CONFORM TO THE REQUIREMENTS OF KMC CHAPTER 1.90, EXCEPT THE COMMISSION MAY AT THE DISCRETION OF THE COUNCIL HAVE UP TO TWO (2) NONRESIDENT MEMBERS.] Section 3. Repeal of Chapter 11.20 of Kenai Municipal Code: That Kenai Municipal Code, Chapter 11.20 - Leasing of Tidelands, is hereby repealed as follows: New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 3500-2026 Page 28 Page 3 of 9 [CHAPTER 11.20 LEASING OF TIDELANDS 11.20.020 LANDS AVAILABLE FOR LEASING. ALL CLASSIFIED TIDE AND CONTIGUOUS SUBMERGED LANDS WITHIN THE LIMITS OF THE CITY TO WHICH THE CITY HOLDS TITLE MAY BE LEASED FOR SURFACE USE ONLY, AND UNDER THE CONDITION THAT SAID LEASE IS SUBJECT AND INFERIOR TO PREFERENCE RIGHT CLAIMS AND SUBJECT TO THE RIGHTS OF EXISTING SET NET HOLDERS WITHIN THE CITY LIMITS. 11.20.650 TIDELANDS CLAIMS. THE CITY SHALL LEASE THE LAND SUBJECT TO ANY PREFERENCE RIGHTS CLAIMS MADE PURSUANT TO THE PROVISIONS OF ALASKA STATUTES 38.05.820 OR ORDINANCE 455-78, DATED SEPTEMBER 5, 1979, OF THE CITY OF KENAI, ADOPTED PURSUANT THERETO, AND THE LESSEE HOLDS LESSOR HARMLESS FOR ANY DAMAGES, LEGAL EXPENSES, OR COMPENSATION NECESSITATED BY THE RESOLUTION OR SATISFACTION OF SAID TERMS OF SAID CLAIMS, IF ANY. 11.20.660 SUBJECTION TO HARBOR ORDINANCE. ALL LEASES ARE SUBJECT TO THE TERMS, CONDITIONS, AND REGULATIONS IMPOSED BY TITLE 11, HARBOR AND HARBOR FACILITIES, OF THE 1979 KENAI CODE OF ORDINANCES AS AMENDED OF WHICH THIS SECTION IS PART. 11.20.680 PROVISIONS REGULATING PUBLIC USE PURPOSE. THE CITY COUNCIL REALIZES THAT ONLY A LIMITED AREA OF TIDELANDS BORDERING NAVIGABLE WATERS IS AVAILABLE WITHIN THE CITY OF KENAI AND WHICH IS OWNED BY THE CITY OF KENAI. IT WOULD BE IN THE PUBLIC INTEREST TO INSURE THAT THESE LANDS DO NOT PASS OUT OF COMMUNITY CONTROL AT LEAST TO THE EXTENT THAT THE PUBLIC WOULD NOT BE DEPRIVED OF HARBOR SERVICES AT REASONABLE RATES IN THE FUTURE. THEREFORE, AREAS OF CITY -OWNED TIDELANDS WHICH ARE DEVELOPABLE FOR THE BONA FIDE PUBLIC PURPOSES AS ENUMERATED BELOW SHALL BE LEASED ONLY WITH THE FOLLOWING COVENANTS DEFINED TO INSURE PUBLIC USE AND ACCESS AT REASONABLE RATES. 11.20.690 PROVISION TO BE INCLUDED IN PUBLIC USE LEASE. KMC 11.20.700 SHALL BE INCLUDED IN LEASES WHERE HARBOR FACILITIES ARE CONSTRUCTED TO BE UTILIZED ALL OR IN PART FOR BONA FIDE PUBLIC USES. 11.20.700 PUBLIC USE: DEFINED. (A) PUBLIC USE SHALL MEAN A USE LIMITED IN PART OR IN WHOLE TO THE FOLLOWING: (1) IN GENERAL, THE LESSEE MAY USE THE DEMISED PREMISES OR PART THEREOF FOR ANY OF THE FOLLOWING PURPOSES ONLY: (I) PUBLIC DOCK FACILITIES. (II) MARITIME COMMERCE. (III) TRANSPORTATION. (IV) FISHING. (V) BOAT HARBOR. (VI) PORT AND WATERFRONT DEVELOPMENT PURPOSES. (B) BEFORE LESSEE MAY CONDUCT ANY ACTIVITIES WHICH FALL UNDER THESE GENERAL CRITERIA, BUT ARE NOT SPECIFICALLY MENTIONED ABOVE, LESSEE MUST OBTAIN WRITTEN CONSENT OF THE CITY. New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 3500-2026 Page 4 of 9 11.20.710 CONTROLLED ACCESS. LESSEE, FOR ITS OWN PROTECTION, MAY CONSTRUCT OR INSTALL FENCES, GATES, OR OTHER TYPES OF BARRIERS TO RESTRICT ACCESS TO PORTIONS OF THE DEMISED PREMISES THAT ARE NOT DESIGNATED FOR A PUBLIC USE AND MAY PROVIDE REASONABLE CONTROLS FOR ACCESS TO PUBLIC USE AREAS TO ALLOW FOR SECURITY FOR SUCH AREAS WHILE INSURING REASONABLE PUBLIC ACCESS. REASONABLE PUBLIC ACCESS INCLUDES ACCOMMODATIONS MADE FOR FISHING OPERATIONS DURING FISHING SEASON. ANY CONTROLLED ACCESS MEASURES SHALL BE INDICATED ON THE LESSEE'S DEVELOPMENT PLAN. 11.20.720 USE CHARGES. LESSEE SHALL MAKE REASONABLE AND NONDISCRIMINATORY CHARGES TO THE PUBLIC FOR USE OF ANY OF ITS FACILITIES. 11.20.780 PENALTIES. (A) IT IS UNLAWFUL FOR ANY PERSON TO VIOLATE ANY OF THE PROVISIONS OF THIS CHAPTER AND UPON CONVICTION THEREOF SHALL BE FINED AS PROVIDED FOR VIOLATIONS IN KMC 13.05.010. EACH DAY SUCH VIOLATION IS COMMITTED OR PERMITTED TO CONTINUE SHALL CONSTITUTE A SEPARATE OFFENSE AND SHALL BE PUNISHABLE AS SUCH HEREUNDER. (B) IN ADDITION TO OR AS AN ALTERNATIVE TO THE ABOVE PENALTY PROVISION, THE CITY MAY IMPOSE A CIVIL PENALTY IN AN AMOUNT AS PROVIDED BY KMC 13.05.010 PER DAY FOR THE VIOLATION OF ANY PROVISION OF THIS CHAPTER AND SEEK INJUNCTIVE RELIEF FOR ANY INFRACTION THEREOF FOR WHICH THE OFFENDING PARTY WILL BE CHARGED FOR REASONABLE ATTORNEY'S FEES AND COSTS INCURRED BY THE CITY AS AWARDED BY THE COURT. (C) NOTHING IN THIS SECTION SHALL BE DEEMED TO RESTRICT THE CITY'S EXERCISE OF ANY OF ITS RIGHTS PURSUANT TO THE LEASE AGREEMENT. 11.20.790 TIDELANDS LEASES FOR SHORE FISHERIES. NOTWITHSTANDING OTHER PROVISIONS OF THE CITY'S CODE OF ORDINANCES, THE ANNUAL MINIMUM RENTAL RATE FOR TIDELAND LEASES USED PRIMARILY FOR SHORE FISHERIES SHALL BE AN ANNUAL FEE AS SET FORTH IN THE CITY'S SCHEDULE OF FEES ADOPTED BY THE CITY COUNCIL. HOWEVER, SHOULD THE STATE OF ALASKA SET AN ANNUAL LEASE RATE HIGHER THAN THAT ESTABLISHED BY THE CITY FOR SIMILAR TIDELAND LEASES FOR SHORE FISHERIES ON LAND OWNED BY THE STATE, THE CITY MAY AMEND THE ANNUAL RENTAL TO A RATE EQUAL TO THAT CHARGED BY THE STATE OF ALASKA. Section 4. Amendment of Section 14.05.010 of Kenai Municipal Code: That Kenai Municipal Code, Section 14.05.010 - Planning and Zoning Commission, Duties and Powers, is hereby amended as follows: 14.05.010 Duties and Powers. (a) The Commission shall be required to perform the following duties: (1) Review and act upon requests for variance permits, conditional use permits, planned unit residential development permits, and other matters requiring consideration under the Kenai Zoning Code. (2) Interpret the provisions of the Kenai Zoning Code and make determinations when requested by the Administrative Official. (3) Review the City of Kenai Comprehensive Plan on an annual basis and conduct a minimum of one (1) public hearing. Said recommendations shall be forwarded to the Council for consideration. New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 3500-2026 Page 30 Page 5 of 9 (4) Promote public interest and understanding of comprehensive planning, platting, zoning, land management, and other issues relating to community planning and development. (5) Proposed plans for the rehabilitation or redevelopment of any area or district within the City. (6) Perform historic preservation reviews and duties as set forth in KMC 14.20.105. (7) Review and provide recommendations on any master plans for the development of harbor or Dort facilities for the Citv. This may include: (A) Development of the type, location, and sequence of all public harbor facilities; and (B) The relocation, removal, extension, or change of use of existing harbor facilities; 8) Submit annuallv to the Citv Manaaer and Council, not less than ninetv (90) days Drior to the beginning of the budget year, a list of the recommended capital improvements which, in the opinion of the Commission, are necessary or desirable to be constructed during the forthcoming five (5) year period. Such list will be arranged in order of preference, with recommendations as to which Droiects are recommended for construction in which vear (b) The Commission shall act in an advisory capacity to the Kenai City Council regarding the following matters: (1) Kenai Zoning Code and Official City of Kenai Zoning Map amendments (2) City and airport land lease or sale petitions. (3) Capital Improvements Programming. The Commission shall submit annually to the Council a list of recommended capital improvements which, in the opinion of the Commission, are necessary and desirable to be constructed during the forthcoming three (3) year period. Such list shall be arranged in order of preference, with recommendations as to which projects shall be constructed in which year. (4) Related to Citv Harbor facilities. tide or submeraed lands. Make recommendations to the Council and Administration relative to the care. control. and develoDment of tide and submerged lands. (c) The Commission shall act in an advisory capacity to the Kenai Peninsula Borough Planning Commission regarding the following matters: (1) Subdivision plat proposals. (2) Right-of-way and easement vacation petitions. (3) City of Kenai Comprehensive Plan amendments. (d) Members of the Planning and Zoning Commission shall be compensated at the rate of one hundred dollars ($100.00) per month. Section 5. Enactment of Section 22.05.016 of Kenai Municipal Code: That Kenai Municipal Code, Section 22.05.016 — Tidelands Available for Leasing is hereby amended as follows: 22.05.016 Tidelands Available for Leasing. a) All classified tide and contiauous submeraed lands within the limits of the Citv to which the Cit holds title may be leased for surface use only, and under the condition that said lease is subject and inferior to preference right claims. The City will lease the land subject to any preference rights claims made pursuant to the provisions of Alaska Statutes 38.05.820 or Ordinance 455-78, dated September 5, 1979, of the City of Kenai, adopted pursuant thereto, and the lessee holds lessor harmless for anv damaaes. leaal exDenses. or compensation necessitated by the resolution or satisfaction of said terms of said claims, if any. New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 3500-2026 Page 6 of 9 (b) Only a limited area of tidelands bordering navigable waters is available within the City of Kenai and which is owned by the City of Kenai. It is in the public interest to ensure that these lands do not pass out of community control at least to the extent that the public would not be deprived of harbor services at reasonable rates in the future. Therefore, areas of City -Owned tidelands which are developable for the bona fide public purposes as enumerated below will be leased only with the following covenants defined to ensure public use and access at reasonable rates. (c) The following will be included in leases where harbor facilities are constructed to be utilized all or in part for bona fide public uses: (1) Public use will mean a use limited in part or in whole to the following: (A) In general, the lessee may use the demised premises or part thereof for any of the following purposes only: (i) Public dock facilities. (ii) Maritime commerce. (iii) Transportation. (iv) Fishing. Boat harbor. NO Port and waterfront development purposes. (2) Before lessee may conduct any activities which fall under these general criteria, but are not specifically mentioned above, lessee must obtain written consent of the City. (d) Lessee, for its own protection, may construct or install fences, gates, or other types of barriers to restrict access to portions of the demised premises that are not designated for a public use and may provide reasonable controls for access to public use areas to allow for security for such areas while insuring reasonable public access. Reasonable public access includes accommodations made for fishing operations during fishing season. Any controlled access measures shall be indicated on the lessee's development plan. (e) Lessee shall make reasonable and nondiscriminatory charges to the public for use of any of its facilities. Section 6. Enactment of Chapter 22.10 of Kenai Municipal Code: That Kenai Municipal Code, Chapter 22.10 — Tideland Leases for Shore Fisheries is hereby enacted as follows: Chapter 22.10 Tideland Leases for Shore Fisheries 22.10.010 Tideland Leases for Shore Fisheries. (a) The annual minimum rental rate for tideland leases used primarily for shore fisheries will be an annual fee as set forth in the City's schedule of fees adopted by the City Council. However, should the State of Alaska set an annual lease rate higher than that established by the City for similar tideland leases for shore fisheries on land owned by the State. the Citv may amend the annual rental to a rate equal to that charged by the State of Alaska. (b) The maximum term of a lease for tidelands used for shore fisheries may not exceed ten (10) years, in accordance with Alaska Statute 38.05.24. (c) A Lessee under an existing lease will, upon the expiration or the termination by mutual agreement of said Lease, be allowed a preference right to re -lease those lands previously leased if all other sections of the Kenai Municipal Code are complied with. Re -leasing will not necessarily be under the same terms and conditions of the prior lease. When the lease is offered to the preference right holder, the preference right holder will exercise their right within thirty (30) calendar days after New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 3500-2026 Page 7 of 9 said lease is offered by the City. Failure to do so will result in forfeiture and cancellation of the preference right. No preference right will inure to a Lessee whose lease has been terminated by cause. (d) Lessee with City's written consent, which will not be unreasonably denied, may assign for other than collateral purposes, in whole or in part, its rights as Lessee. Any assignee of part or all of the leased premises will assume the duties and obligations of the Lessee as to such part or all of the leased premises. No such assignment, however, will discharge Lessee from its duties and obligations outlined in the original lease agreement. (e) Rent will be paid annually in advance. The City of Kenai's fiscal year beginning July 1st and ending June 30th. (f) The lease applicant will execute and return the appropriate lease agreement with the City of Kenai within forty-five (45) days of mailing the agreement to the applicant. The lease agreement will be prepared in accordance with the requirements of this title. Failure to execute and return the lease agreement within the specified period will result in the forfeiture of all leasing rights. (q) A Lessee under an existing lease will, upon expiration or the termination by mutual agreement of said Lease, be allowed a preference right to re -Lease those lands previously leased by them if all other sections of the Kenai Municipal Code are complied with. Re -leasing will not necessarily be under the same terms and conditions as the prior lease. When the lease is offered to the preference right holder, they will exercise their right within thirty (30) calendar days after said lease is offered by the City. Failure to do so will result in forfeiture and cancellation of the preference right. No preference right will inure to a Lessee whose lease has been terminated by cause. 22.10.015 Qualifications of Lease Applicants or Bidders. An applicant or bidder for a lease is qualified if the applicant or bidder: (a) Is an individual at least eighteen (18) years of age; or (b) Is a legal entity which is authorized to conduct business under the laws of Alaska; or (c) Is acting as an agent for another meeting the requirements of subsection (a) or (b) of this section and has qualified by filing with the City a proper power of attorney or a letter of authorization creating such agency. 22.10.020 Initial Lease Application. All applications for initial leases of lands must be submitted to the City Manager or designee on an application form provided by the City. Applications will be dated on receipt and must include payment of the nonrefundable application fee as set forth in the City's schedule of fees approved by the City Council. 22.10.025 Lease Application Review. (a) Applications will be reviewed by City staff for application completeness and conformance with City ordinances. (b) Based on the initial review, if the City Manager determines the application is complete, the aDDlication will be referred to the Plannina and Zonina Commission for review and comment. together with the City Manager's recommendation for approval or resection. (c) Notice of complete applications for new leases, renewals or extensions will be published by the City and posted on the property. The notice must contain the name of the applicant, a brief descriDtion of the land. and the date uDon which anv comDetina aDDlications must be submitted (thirty (30) days from the date of publication). New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 3500-2026 Page 8 of 9 (d) The recommendations of the City Manager and the Planning and Zoning Commission will be provided to the City Council. The City Council shall determine whether the lease, renewal, amendment or extension is consistent with the intent of this chapter and in the best interest of the City. The decision whether or not to lease land or authorize a lease extension, renewal, amendment or assianment rests in the sole discretion of the Citv Council. (e) If the applicant is in default of any charges, fees, rents, taxes, or other sums due and payable to the City or the applicant is in default of a requirement of any lease or contract with the City a lease will not be entered into until the deficiencies are remedied. 22.10.030 Application for Lease Amendment, Assignment, or Renewal Applications for amendment, assignment, extension or renewal will be processed in accordance with the lease application review provisions of this chapter. Only applications that change the use of the tidelands will be referred to the Planning and Zoning Commission. All others are not subject to review by the Planning & Zoning Commission. The City has no obligation to amend, assign, renew or extend a lease and may decline to do so upon making specific findings as to why a lease amendment, assignment, renewal, or extension is not in the best interest of the City. 22.10.035 Competing Lease Applications If another application for a initial lease is received for the same property within thirty (30) days from the notice of application publication date by a different applicant, City staff will process the application and forward the application, the City Manager's recommendation and Planning and Zoning Commission recommendations to the City Council for approval of the application anticipated to best serve the interest of the City. The City Council may approve one (1) of the applications, reject all the applications or direct the City Manager to award a lease of the property by sealed bid. 22.10.040 Form of Lease. When leasing land under this chapter, the City Manager will use a standard lease form that: (a) Provides a reasonable basis for the lessee's use of the premises; (b) Complies with the intent of this chapter; (c) Provides for the best interest of the City; (d) Is approved as to form by the City Attorney; and (e) Is adopted by resolution of the City Council. Section 7. That City Council Policy No. 20.020 - Standing Commissions and other Advisory Body Procedures as amended and attached is hereby adopted. Section 8. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application. Section 9. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect 30 days after enactment. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 41" DAY OF FEBRUARY, 2026. New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 3500-2026 Page 9 of 9 ATTEST: Michelle M. Saner, MMC, City Clerk Henry H. Knackstedt, Mayor Introduced: Enacted: Effective: January 21, 2026 February 4, 2026 March 6, 2026 New Text Underlined; [DELETED TEXT BRACKETED] Pagel K E N A I CITY COUNCIL - 20.020 Page35 STANDING COMMISSIONS AND OTHER ADVISORY BODY PROCEDURES Effective Date: March 5, 2014 Last Action Date: June 19, 2024 See Also: Approved bv: City Council POLICY - 20.020 Standing Commissions and other Advisory Body Procedures. Purpose The purpose of this policy is to establish procedures, other than those provided in KMC 1.90, for Standing Commission and other Advisory Bodies established by the Council. Scope This policy applies to all standing commissions or other advisory bodies appointed by the City Council. In addition to this policy the following Kenai Municipal Code (KMC) provisions are applicable: Airport Commission is also regulated by KMC 1.95.010 Beautification Commission is also regulated by KMC 1.95.020 Council on Aging Commission is also regulated by KMC 1.95.030 and the Council on Aging By -Laws [HARBOR COMMISSION IS ALSO REGULATED BY KMC 1.95.040] Parks and Recreation Commission is also regulated by KMC 1.95.050 Planning and Zoning Commission is also regulated by KMC 14.05. Policy A. Appointment and Reappointments 1. An application for consideration of appointment or reappointment to a Standing Commission or other Advisory Body of the Council must be submitted to the City Clerk. 2. The Mayor nominates an applicant for appointment or reappointment and by motion, the City Council confirms. B. Establishing Subcommittees 1. A subcommittee of a Standing Commission or other advisory body may be established for a specific function upon approval of Council. C. Meeting Schedules 1. Standing Commission schedules are as follows: Commission / Committee / Council on Aging Airport Commission Beautification Council on Aging [HARBOR COMMISSION Meeting Schedule Monthly Meetings held January, April, May, September and October Monthly MEETINGS HELD FEBRUARY, MARCH, APRIL, MAY, JUNE, AUGUST, SEPTEMBER AND NOVEMBER Harbor Commission (Sunset as of 2026, Ordinance No. 3500-2026) Scheduled Meeting Days Second Thursday of the month Second Tuesday of the month Second Thursday of the month FIRST MONDAY AFTER FIRST COUNCIL MEETING OF THE MONTH] 20.020 Standing Commissions & Other Advisory Body Procedures Page 1 of 4 Library Commission (Suspended as of 2015, Ordinance No. 2815-2015) Parks & Recreation Monthly, except for July First Thursday of the month Commission Planning & Zoning Commission I Twice monthly I Second & fourth Wednesday 2. All regular meetings will be held in the Kenai City Hall Council Chambers with the exception of the Council on Aging Commission who shall meet at the Senior Center, unless offsite arrangements are approved by the Clerk. Exceptions for subcommittee meetings may be made with the advance notice of the City Clerk. 3. Regularly scheduled meeting times will be approved by Council. 4. Special meetings (for a specific purpose) on an as -needed basis may be scheduled with the Clerk's approval and notification to the Council and City Manager. 5. Meetings may be cancelled or rescheduled by the City Clerk, with notification to Council and the City Manager, if cancellation or rescheduling is warranted, i.e. lack of agenda items, pre -knowledge of lack of a quorum, etc. 6. Any additional commissions or other advisory bodies established by Council will be set and incorporated into the meeting schedule by the City Council. D. Minutes & Meeting Recordings With exception of the Planning & Zoning Commission, taking notes and electronically recording meetings shall be the responsibility of department liaison to the specific Standing Commission or advisory body. The Clerk's Office shall take notes and record the meeting for the Planning and Zoning Commission. 2. Action minutes will be produced by the Clerk's Office from the department liaisons notes and provided to the City Council as official records of the meetings. Summary minutes will be produced by the Clerk's Office for Planning and Zoning Commission items when the item is quasi-judicial. 3. Meetings shall be electronically recorded retained in accordance with the City of Kenai records management schedule and record retention policy as adopted by the City Council pursuant to KMC 10.30.030. E. Work Sessions 1. Work sessions may not be held without the approval of the City Clerk unless they occur on the night of and at the time of a regularly scheduled advertised meeting. Notification of scheduled work session shall be provided to City Council and the City Manager. Work session may be requested by Council, the liaison or Chair of the body. 2. During work sessions, only items on the work session agenda may be discussed and no formal actions may be taken. 3. At a minimum, work sessions shall be posted on the Official City Bulletin Board in Kenai City Hall and on the city website at least five days prior to the meeting. F. Basic Meeting Information 1. All meetings shall be open to the public. 2. At a minimum, meeting notices shall be posted on the Official City Bulletin Board in Kenai City Hall and on the city website at least five days prior to the meeting. 3. Meeting agendas shall be established by the Chair and the department liaison and shall be relevant to the authority of the Standing Commission or other advisory body as designated within the bylaws or Kenai Municipal Code. Items requiring commission action under applicable municipal code prior 20.020 Standing Commissions & Other Advisory Body Procedures Page 2 of 4 to final action by the Council, as distinguished from advisory recommendations, will be referred to the respective body prior to any final Council action. The City Council, by motion, may refer any other item to be placed on an agenda seeking a recommendation from the respective Standing Commission or other advisory body. 4. The department liaison shall submit items for the agenda and supporting documentation to the Clerk's Office one week prior to a meeting, no later than 2:00 p.m. The Clerk's Office will compile meeting material and distribute. The Planning & Zoning Commission is exempt from this requirement as the Planning Department advertises, compiles meeting material and distributes for its commission. 5. Rules of Order: Pursuant to KMC 1.15.120(b) and KMC 1.90.050(c), in all matters of parliamentary procedure, Robert's Rules of Order, as revised shall be applicable and govern all meetings, except as specified in KMC 1.15.060 (Motions), KMC 1.15.100 (Speaking), and KMC 1.15.110 (Voting). 6. Quorum: No meeting may proceed in the absence of a quorum, i.e. a quorum is more than one-half of the board/commission (quorum of the whole). 7. Motion: Pursuant to KMC 1.15.060(k), all motions require a second. A majority of votes is required to pass a motion. 8. Speaking: In a meeting, members should be recognized by the Chair before speaking. 9. When is it a Meeting: If any public business is discussed collectively by four or a majority of members of one body. 10. Representation of the body: Members of a City of Kenai Standing Commissions or other advisory bodies may only speak on behalf of the body when approved to do so by a majority vote of the body; at which time their basic responsibility is to carry out the body's directives identified within the approved motion. G. Council Participation 1. Any Council Member may attend a meeting or work session of any Standing Commission or other advisory body; however, no more than three Council Members may attend any one meeting without additional public notice. 2. Only the Council Liaison to the respective Standing Commission or other advisory body may speak on behalf of the Council to the relevant body if approved to do so by a majority vote of the City Council. Participation of the Liaison at Standing Commission or other advisory body meetings is limited to updating the body on the actions of the Council and reporting back to the Council the actions of the Commission. The Liaison is a non -voting member and may not participate in the debate of an advisory body. 3. Participation by Council Members (acting as a Council Member) other than the Liaison should be limited to ONE Council Member who is a sponsor of a legislative item to be considered for recommendation from the advisory body. The sponsors participation should be limited to three -minute testimony and answering questions from the body. The sponsor of the legislation may not participate in debate of the advisory body. When speaking to the advisory body as the legislate sponsor the following additional rules apply: a. The legislative sponsor will not testify from the Dais, testimony from the sponsor shall be made from the area designated for public comment. b. If the legislative sponsor is the Liaison to the advisory body, the legislative sponsor will remove themselves from the dais and seat themselves in the public area of the chambers. The legislative sponsor will remain in the public seating area during the discussion, debate and voting on the legislative item in which they sponsored. 4. Exception: Council Members may fully participate in any joint work session or other meeting with a Standing Commission or other advisory body when it has been noticed that the City Council will be in attendance, or there has been a specific delegation of authority by the Council for a member(s) to represent the Council. 20.020 Standing Commissions & Other Advisory Body Procedures Page 3 of 4 Henry H. Knackstedt, Mayor ATTEST: Shellie Saner, MMC, City Clerk Policy History: Action Approval on 08-04-2004; R2017-24; R2018-19; 2019-03; 2023-26; R2024-28; R2025-21; Ordinance 3500-2026 Note: Between 2004 and 2017 other amendments to the policy were made through the action approval process. 20.020 Standing Commissions & Other Advisory Body Procedures Page 4 of 4 L I000, City of Kenai MEMORANDUM K E N 4 210 Fidalgo Ave, Kenai, AK 99611-7794 1907.283.75351 www.kenai.city TO: Mayor Knackstedt and Council Members THROUGH: Terry Eubank, City Manager THROUGH: Lee Frey, Public Works Director FROM: Kevin Buettner, Planning Director DATE: January 12, 2026 SUBJECT: Ordinance No. 3500-2026 - Sunsetting the Harbor Commission and Amending Kenai Municipal Code. The following sectional analysis is in regards to the code changes recommended in the Ordinance 3500-2026. Comments regarding the changes are in red. In November 2025, the Harbor Commission approved a motion to sunset, or suspend, the Harbor Commission due to a variety of reasons. Kenai City Council accepted the recommendation and instructed administrative staff to work with the Commissioners to bring forth appropriate legislation. On December 8, 2025, the Harbor Commission approved a motion to recommend adoption of the proposed ordinance. On December 10, 2025, the Planning & Zoning Commission also approved a motion to recommend adoption of the proposed ordinance. The proposed changes fall under three general categories, outlined below: • Repeal o Removes references to the Harbor Commission in various sections of Kenai Municipal Code o Removes Section 11.20 —Leasing of Tidelands from Kenai Municipal Code (KMC), to be enacted in another section, see below. • Amendment o Makes changes to Kenai Municipal Code to remove references to the Harbor Commission in various sections of Kenai Municipal Code o Transfers powers and duties from the Harbor Commission to the Planning & Zoning Commission o Makes changes to Kenai City Council Policy 20.020 to reflect the sunsetting of the Harbor Commission • Enactment o Enacts KMC 22.10 - Leasing of Tidelands transferring components of KMC 11.20 and aligned the leasing procedures to current practice with other City -owned land, as outlined in KMC 22.05 - Disposition of City Lands. These changes, as proposed, would streamline the land and tideland leasing and reduces confusion for all parties. By transferring many of the powers and duties to the Planning & Zoning Commission, this puts all City -owned lands under the primary oversight of one commission, with advice and consent from the Airport Commission being sought for decisions regarding airport lands. Page 2 of 11 (Cj- The City of Kenai I www.kenai.city Section 1. Amendment of Section 1.90.010 of Kenai Municipal Code: That Kenai Municipal Code, Section 1.90.010 - General Standards for Advisory Commissions, Creation, paragraph (a) is hereby amended as follows: 1.90.010 Creation. (a) Standing advisory commissions of the City may be created or dissolved by an ordinance of the City Council. The following standing advisory commissions have been created by the Council: (1) Airport Commission, as established in KMC 1.95.010; (2) Beautification Commission, as established in KMC 1.95.020; (3) Council on Aging Commission, as established in KMC 1.95.030; [(4)] HARBOR COMMISSION, AS ESTABLISHED IN KMC 1.95.040;] [(5)] (4) Parks and Recreation Commission, as established in KMC 1.95.050. Removes Harbor Commission as a standing advisory commission from Kenai Municipal Code. Section 2. Repeal of Section 1.95.040 of Kenai Municipal Code: That Kenai Municipal Code, Section 1.95.040 - Standard Advisory Commissions, Harbor Commission, is hereby repealed as follows: f1.95.040 HARBOR COMMISSION. (A) PURPOSE. THE PURPOSE OF THE HARBOR COMMISSION IS TO ADVISE THE COUNCIL AND ADMINISTRATION ON ISSUES INVOLVING CITY HARBOR FACILITIES AND TIDAL OR SUBMERGED LANDS OWNED BY THE CITY. (B) DUTIES AND POWERS. THE HARBOR COMMISSION WILL: (1) REVIEW AND PROVIDE RECOMMENDATIONS ON ANY MASTER PLANS FOR THE DEVELOPMENT OF HARBOR OR PORT FACILITIES FOR THE CITY. THIS MAY INCLUDE: (1) DEVELOPMENT OF THE TYPE, LOCATION, AND SEQUENCE OF ALL PUBLIC HARBOR FACILITIES; AND (II) THE RELOCATION, REMOVAL, EXTENSION, OR CHANGE OF USE OF EXISTING HARBOR FACILITIES; (2) ACT IN AN ADVISORY CAPACITY TO THE COUNCIL AND ADMINISTRATION REGARDING MATTERS RELATED TO CITY HARBOR FACILITIES, TIDE OR SUBMERGED LANDS. MAKE RECOMMENDATIONS TO THE COUNCIL AND ADMINISTRATION RELATIVE TO THE CARE, CONTROL, AND DEVELOPMENT OF TIDE AND SUBMERGED LANDS; AND (3) SUBMIT ANNUALLY TO THE CITY MANAGER AND COUNCIL, NOT LESS THAN NINETY (90) DAYS PRIOR TO THE BEGINNING OF THE BUDGET YEAR, A LIST OF THE RECOMMENDED CAPITAL IMPROVEMENTS WHICH, IN THE OPINION OF THE COMMISSION, ARE NECESSARY OR DESIRABLE TO BE CONSTRUCTED DURING THE FORTHCOMING FIVE (5) YEAR PERIOD. SUCH LIST WILL BE ARRANGED IN ORDER OF PREFERENCE, WITH RECOMMENDATIONS AS TO WHICH PROJECTS ARE RECOMMENDED FOR CONSTRUCTION IN WHICH YEAR; AND (4) REVIEW ALL CITY LEASES OF CITY -OWNED TIDE AND SUBMERGED LANDS AND MAKE RECOMMENDATIONS TO THE CITY COUNCIL AND ADMINISTRATION; AND Page 3 of 11 The City of Kenai I www.kenai.city (5) PROVIDE INFORMATION AND RECOMMENDATIONS AS REQUESTED BY THE CITY COUNCIL AND ADMINISTRATION; AND (6) ADVISE AND PROVIDE RECOMMENDATIONS TO THE ADMINISTRATION AS REQUESTED ON THE QUALIFICATIONS FOR A HARBOR MASTER. (C) QUALIFICATIONS AND MEMBERSHIP. MEMBERS OF THE HARBOR COMMISSION WILL CONFORM TO THE REQUIREMENTS OF KMC CHAPTER 1.90, EXCEPT THE COMMISSION MAY AT THE DISCRETION OF THE COUNCIL HAVE UP TO TWO (2) NONRESIDENT MEMBERS.] Formally removes Harbor Commission as a standing advisory commission from Kenai Municipal Code. This preserves a record of the Harbor Commission and allows for the reestablishment of the Commission, should City Council decide to do so in the future. Section 3. Repeal of Chapter 11.20 of Kenai Municipal Code: That Kenai Municipal Code, Chapter 11.20 - Leasing of Tidelands, is hereby repealed as follows: [CHAPTER 11.20 LEASING OF TIDELANDS 11.20.020 LANDS AVAILABLE FOR LEASING. ALL CLASSIFIED TIDE AND CONTIGUOUS SUBMERGED LANDS WITHIN THE LIMITS OF THE CITY TO WHICH THE CITY HOLDS TITLE MAY BE LEASED FOR SURFACE USE ONLY, AND UNDER THE CONDITION THAT SAID LEASE IS SUBJECT AND INFERIOR TO PREFERENCE RIGHT CLAIMS AND SUBJECT TO THE RIGHTS OF EXISTING SET NET HOLDERS WITHIN THE CITY LIMITS. 11.20.650 TIDELANDS CLAIMS. THE CITY SHALL LEASE THE LAND SUBJECT TO ANY PREFERENCE RIGHTS CLAIMS MADE PURSUANT TO THE PROVISIONS OF ALASKA STATUTES 38.05.820 OR ORDINANCE 455-78, DATED SEPTEMBER 5, 1979, OF THE CITY OF KENAI, ADOPTED PURSUANT THERETO, AND THE LESSEE HOLDS LESSOR HARMLESS FOR ANY DAMAGES, LEGAL EXPENSES, OR COMPENSATION NECESSITATED BY THE RESOLUTION OR SATISFACTION OF SAID TERMS OF SAID CLAIMS, IF ANY. 11.20.660 SUBJECTION TO HARBOR ORDINANCE. ALL LEASES ARE SUBJECT TO THE TERMS, CONDITIONS, AND REGULATIONS IMPOSED BY TITLE 1 1 , HARBOR AND HARBOR FACILITIES, OF THE 1979 KENAI CODE OF ORDINANCES AS AMENDED OF WHICH THIS SECTION IS PART. 11.20.680 PROVISIONS REGULATING PUBLIC USE PURPOSE. THE CITY COUNCIL REALIZES THAT ONLY A LIMITED AREA OF TIDELANDS BORDERING NAVIGABLE WATERS IS AVAILABLE WITHIN THE CITY OF KENAI AND WHICH IS OWNED BY THE CITY OF KENAI. IT WOULD BE IN THE PUBLIC INTEREST TO INSURE THAT THESE LANDS DO NOT PASS OUT OF COMMUNITY CONTROL AT LEAST TO THE EXTENT THAT THE PUBLIC WOULD NOT BE DEPRIVED OF HARBOR SERVICES AT REASONABLE RATES IN THE FUTURE. THEREFORE, AREAS OF CITY -OWNED TIDELANDS WHICH ARE DEVELOPABLE FOR THE BONA FIDE PUBLIC PURPOSES AS ENUMERATED BELOW SHALL BE LEASED ONLY WITH THE FOLLOWING COVENANTS DEFINED TO INSURE PUBLIC USE AND ACCESS AT REASONABLE RATES. Page 4 of 11 The City of Kenai I www.6nai.city 11.20.690 PROVISION TO BE INCLUDED IN PUBLIC USE LEASE. KMC 1 1.20.700 SHALL BE INCLUDED IN LEASES WHERE HARBOR FACILITIES ARE CONSTRUCTED TO BE UTILIZED ALL OR IN PART FOR BONA FIDE PUBLIC USES. 11.20.700 PUBLIC USE: DEFINED. (A) PUBLIC USE SHALL MEAN A USE LIMITED IN PART OR IN WHOLE TO THE FOLLOWING: (1) IN GENERAL, THE LESSEE MAY USE THE DEMISED PREMISES OR PART THEREOF FOR ANY OF THE FOLLOWING PURPOSES ONLY: (I) PUBLIC DOCK FACILITIES. (II) MARITIME COMMERCE. (III) TRANSPORTATION. (IV) FISHING. (V) BOAT HARBOR. (VI) PORT AND WATERFRONT DEVELOPMENT PURPOSES. (B) BEFORE LESSEE MAY CONDUCT ANY ACTIVITIES WHICH FALL UNDER THESE GENERAL CRITERIA, BUT ARE NOT SPECIFICALLY MENTIONED ABOVE, LESSEE MUST OBTAIN WRITTEN CONSENT OF THE CITY. 11.20.710 CONTROLLED ACCESS. LESSEE, FOR ITS OWN PROTECTION, MAY CONSTRUCT OR INSTALL FENCES, GATES, OR OTHER TYPES OF BARRIERS TO RESTRICT ACCESS TO PORTIONS OF THE DEMISED PREMISES THAT ARE NOT DESIGNATED FOR A PUBLIC USE AND MAY PROVIDE REASONABLE CONTROLS FOR ACCESS TO PUBLIC USE AREAS TO ALLOW FOR SECURITY FOR SUCH AREAS WHILE INSURING REASONABLE PUBLIC ACCESS. REASONABLE PUBLIC ACCESS INCLUDES ACCOMMODATIONS MADE FOR FISHING OPERATIONS DURING FISHING SEASON. ANY CONTROLLED ACCESS MEASURES SHALL BE INDICATED ON THE LESSEE'S DEVELOPMENT PLAN. 11.20.720 USE CHARGES. LESSEE SHALL MAKE REASONABLE AND NONDISCRIMINATORY CHARGES TO THE PUBLIC FOR USE OF ANY OF ITS FACILITIES. 11.20.780 PENALTIES. (A) IT IS UNLAWFUL FOR ANY PERSON TO VIOLATE ANY OF THE PROVISIONS OF THIS CHAPTER AND UPON CONVICTION THEREOF SHALL BE FINED AS PROVIDED FOR VIOLATIONS IN KMC 13.05.010. EACH DAY SUCH VIOLATION IS COMMITTED OR PERMITTED TO CONTINUE SHALL CONSTITUTE A SEPARATE OFFENSE AND SHALL BE PUNISHABLE AS SUCH HEREUNDER. (B) IN ADDITION TO OR AS AN ALTERNATIVE TO THE ABOVE PENALTY PROVISION, THE CITY MAY IMPOSE A CIVIL PENALTY IN AN AMOUNT AS PROVIDED BY KMC 13.05.010 PER DAY FOR THE VIOLATION OF ANY PROVISION OF THIS CHAPTER AND SEEK INJUNCTIVE RELIEF FOR ANY INFRACTION THEREOF FOR WHICH THE OFFENDING PARTY WILL BE CHARGED FOR REASONABLE ATTORNEY'S FEES AND COSTS INCURRED BY THE CITY AS AWARDED BY THE COURT. Page 5 of 11 The City of Kenai I www.6nai.city (C) NOTHING IN THIS SECTION SHALL BE DEEMED TO RESTRICT THE CITY'S EXERCISE OF ANY OF ITS RIGHTS PURSUANT TO THE LEASE AGREEMENT. 11.20.790 TIDELANDS LEASES FOR SHORE FISHERIES. NOTWITHSTANDING OTHER PROVISIONS OF THE CITY'S CODE OF ORDINANCES, THE ANNUAL MINIMUM RENTAL RATE FOR TIDELAND LEASES USED PRIMARILY FOR SHORE FISHERIES SHALL BE AN ANNUAL FEE AS SET FORTH IN THE CITY'S SCHEDULE OF FEES ADOPTED BY THE CITY COUNCIL. HOWEVER, SHOULD THE STATE OF ALASKA SET AN ANNUAL LEASE RATE HIGHER THAN THAT ESTABLISHED BY THE CITY FOR SIMILAR TIDELAND LEASES FOR SHORE FISHERIES ON LAND OWNED BY THE STATE, THE CITY MAY AMEND THE ANNUAL RENTAL TO A RATE EQUAL TO THAT CHARGED BY THE STATE OF ALASKA. This section is repealed from Title 11 in KMC and moved into a newly enacted KMC Section 22.10 - Leasing of Tidelands, below. Some sections are in a different order in the new chapter to alleviate potential confusion, but all sections are transferred in whole, with the exception of KMC 11.20.660 - Subjection to Harbor Ordinance which is not transferred. Section 4. Amendment of Section 14.05.010 of Kenai Municipal Code: That Kenai Municipal Code, Section 14.05.010 - Planning and Zoning Commission, Duties and Powers, is hereby amended as follows: 14.05.010 Duties and Powers. (a) The Commission shall be required to perform the following duties: (1) Review and act upon requests for variance permits, conditional use permits, planned unit residential development permits, and other matters requiring consideration under the Kenai Zoning Code. (2) Interpret the provisions of the Kenai Zoning Code and make determinations when requested by the Administrative Official. (3) Review the City of Kenai Comprehensive Plan on an annual basis and conduct a minimum of one (1) public hearing. Said recommendations shall be forwarded to the Council for consideration. (4) Promote public interest and understanding of comprehensive planning, platting, zoning, land management, and other issues relating to community planning and development. (5) Proposed plans for the rehabilitation or redevelopment of any area or district within the City. (6) Perform historic preservation reviews and duties as set forth in KMC 14.20.105. (7) Review and provide recommendations on any master plans for the development of harbor or port facilities for the City. This may include: (i) Development of the type, location, and sequence of all public harbor facilities; and (ii) The relocation, removal, extension, or change of use of existing harbor facilities; (8) Submit annually to the City Manager and Council, not less than ninety (90) days prior to the beginning of the budget year, a list of the recommended capital improvements which, in the opinion of the Commission, are necessary or desirable to be constructed Page 6 of 11 The City of Kenai I www.kenai.city during the forthcoming five (5) year period. Such list will be arranged in order of preference, with recommendations as to which projects are recommended for construction in which year (b) The Commission shall act in an advisory capacity to the Kenai City Council regarding the following matters: (1) Kenai Zoning Code and Official City of Kenai Zoning Map amendments. (2) City and airport land lease or sale petitions. (3) Capital Improvements Programming. The Commission shall submit annually to the Council a list of recommended capital improvements which, in the opinion of the Commission, are necessary and desirable to be constructed during the forthcoming three (3) year period. Such list shall be arranged in order of preference, with recommendations as to which projects shall be constructed in which year. (4) Related to City Harbor facilities, tide or submerged lands. Make recommendations to the Council and Administration relative to the care, control, and development of tide and submerged lands. (c) The Commission shall act in an advisory capacity to the Kenai Peninsula Borough Planning Commission regarding the following matters: (1) Subdivision plat proposals. (2) Right-of-way and easement vacation petitions. (3) City of Kenai Comprehensive Plan amendments. (d) Members of the Planning and Zoning Commission shall be compensated at the rate of one hundred dollars ($100.00) per month. Transfers powers and duties from the Harbor Commission in KMC 1.95.040 - Harbor Commission to the Planning & Zoning Commission. The Planning & Zoning Commission is empowered by Kenai City Council to make certain quasi-judicial decisions. As such, the Planning & Zoning Commission is not solely an advisory commission and derives its duties and powers from KMC 14.05.010 - Duties and Powers. Section 5. Enactment of Section 22.05.016 of Kenai Municipal Code: That Kenai Municipal Code, Section 22.05.016 — Tidelands Available for Leasing is hereby amended as follows: Provides specifics for tidelands, and refers to prior legislation authorizing the City to lease tidelands. 22.05.016 Tidelands Available for Leasing. (a) All classified tide and contiguous submerged lands within the limits of the City to which the City holds title may be leased for surface use only, and under the condition that said lease is subject and inferior to preference right claims. The City will lease the land subject to any preference rights claims made pursuant to the provisions of Alaska Statutes 38.05.820 or Ordinance 455-78, dated September 5, 1979, of the City of Kenai, adopted pursuant thereto, and the lessee holds lessor harmless for any damages, legal expenses, or compensation necessitated by the resolution or satisfaction of said terms of said claims. if anv. Page 7 of 11 (Cj- The City of Kenai I www.kenai.city Transferred directly from KMC 11.20.020 - Lands Available for Leasing and KMC 11.20.650 — Tidelands Claims (b) Only a limited area of tidelands bordering navigable waters is available within the City of Kenai and which is owned by the City of Kenai. It is in the public interest to ensure that these lands do not pass out of community control at least to the extent that the public would not be deprived of harbor services at reasonable rates in the future. Therefore, areas of City -Owned tidelands which are developable for the bona fide public purposes as enumerated below will be leased only with the following covenants defined to ensure public use and access at reasonable rates. Transferred directly from KMC 11.20.680 — Provisions Regulating Public Use Purpose. (c)The following will be included in leases where harbor facilities are constructed to be utilized all or in part for bona fide public uses. Transferred directly from KMC 11.20.680 — Provisions to be Included in Public Use Lease. (A) Public use will mean a use limited in part or in whole to the following: (i) In general, the lessee may use the demised premises or part thereof for any of the following purposes only: (i) Public dock facilities. (ii) Maritime commerce. (iii) Transportation. Ov) Fishing_ (v) Boat harbor. NO Port and waterfront development purposes. (B) Before lessee may conduct any activities which fall under these general criteria, but are not specifically mentioned above, lessee must obtain written consent of the City. "Lease renewal" means a new lease of property currently under an existing or expiring lease to an existina lessee or a purchaser. Transferred directly from KMC 11.20.700 — Public Use: Defined. (d) Lessee, for its own protection, may construct or install fences, gates, or other types of barriers to restrict access to portions of the demised premises that are not designated for a public use and may provide reasonable controls for access to public use areas to allow for security for such areas while insuring reasonable public access. Reasonable public access includes accommodations made for fishing operations during fishing season. Any controlled access measures shall be indicated on the lessee's development plan. Transferred directly from KMC 11.20.710 — Controlled Access. (e) Lessee shall make reasonable and nondiscriminatory charges to the public for use of any of its facilities. Transferred directly from KMC 11.20.720 — Use Charges. Page 8 of 11 The City of Kenai I www.kenai.city Section 6. Enactment of Chapter 22.10 of Kenai Municipal Code: That Kenai Municipal Code, Chapter 22.10 — Tideland Leases for Shore Fisheries is hereby enacted as follows: Chapter 22.10 Tideland Leases for Shore Fisheries Establishes a chapter dedicated to shore fishery tideland leases. There are noticeable differences between shore fishery tideland leases and other tideland leases within the City. To reduce confusion, this separate chapter is created. 22.15.010 Tideland Leases for Shore Fisheries. (a) The annual minimum rental rate for tideland leases used primarily for shore fisheries will be an annual fee as set forth in the City's schedule of fees adopted by the City Council. However, should the State of Alaska set an annual lease rate higher than that established by the City for similar tideland leases for shore fisheries on land owned by the State, the City may amend the annual rental to a rate equal to that charged by the State of Alaska. Transferred directly from KMC 11.20.790 — Tideland Leases for Shore Fisheries (b) The maximum term of a lease for tidelands used for shore fisheries may not to exceed ten (10) years, in accordance with Alaska Statute 38.05.24. (c) A Lessee under an existing lease will, upon the expiration or the termination by mutual agreement of said Lease, be allowed a preference right to re -lease those lands previously leased if all other sections of the Kenai Municipal Code are complied with. Re -leasing will not necessarily be under the same terms and conditions of the prior lease. When the lease is offered to the preference right holder, the preference right holder will exercise their right within thirty (30) calendar days after said lease is offered by the City. Failure to do so will result in forfeiture and cancellation of the preference right. No preference right will inure to a Lessee whose lease has been terminated by cause. (d) Lessee with City's written consent, which will not be unreasonably denied, may assign for other than collateral purposes, in whole or in part, its rights as Lessee. Any assignee of part or all of the leased premises will assume the duties and obligations of the Lessee as to such part or all of the leased premises. No such assignment, however, will discharge Lessee from its duties and obligations outlined in the original lease agreement. (e) Rent will be paid annually in advance. The City of Kenai's fiscal year beginning July 1st and ending June 30th. (f) The lease applicant will execute and return the appropriate lease agreement with the City of Kenai within forty-five (45) days of mailing the agreement to the applicant. The lease agreement will be prepared in accordance with the requirements of this title. Failure to execute and return the lease agreement within the specified period will result in the forfeiture of all leasing rights. A Lessee under an existina lease will. upon expiration or the termination by mutual agreement of said Lease, be allowed a preference right to re -Lease those lands previously leased by them if all other sections of the Kenai Municipal Code are complied with. Re - Leasing will not necessarily be under the same terms and conditions as the prior lease. When the lease is offered to the preference right holder, they will exercise their right within thirty (30) calendar days after said lease is offered by the City. Failure to do so will result in forfeiture and cancellation of the preference riaht. No preference riaht will inure to a Lessee whose lease has been terminated by cause. Page 9 of 11 The City of Kenai I www.kenai.city Sections (b) through (g) are added to outline specific requirements that apply only to shore fishery leases. There are certain provisions in previous chapters that are not carried over here due to the nature of the use of these specific tidelands. 22.15.015 Qualifications of Lease Applicants or Bidders. An applicant or bidder for a lease is qualified if the applicant or bidder: (a) Is an individual at least eighteen (18) years of age; or (b) Is a legal entity which is authorized to conduct business under the laws of Alaska; or (c) Is acting as an agent for another meeting the requirements of subsection (a) or (b) of this section and has qualified by filing with the City a proper power of attorney or a letter of authorization creating such agency. Copied from KMC 22.05.020 - Qualifications of Lease Applicants and Bidders for consistency. 22.15.020 Initial Lease Application. All applications for initial leases of lands must be submitted to the City Manager or designee on an application form provided by the City. Applications will be dated on receipt and must include Payment of the nonrefundable application fee as set forth in the City's schedule of fees approved by the City Council. Aligned with KMC 22.05.025 - Initial Lease Application for consistency. 22.15.025 Lease Application Review. (a) Applications will be reviewed by City staff for application completeness and conformance with Citv ordinances. (b) Based on the initial review, if the City Manager determines the application is complete, the application will be referred to the Planning and Zoning Commission for review and comment, together with the City Manager's recommendation for approval or rejection. c) Notice of complete applications for new leases, renewals or extensions will be published by the City and posted on the property. The notice must contain the name of the applicant, a brief description of the land, and the date upon which any competing applications must be submitted (thirty (30) days from the date of publication). d) The recommendations of the City Manager and the Planning and Zoning Commission will be provided to the City Council. The City Council shall determine whether the lease, renewal, amendment or extension is consistent with the intent of this chapter and in the best interest of the City. The decision whether or not to lease land or authorize a lease extension, renewal, amendment or assignment rests in the sole discretion of the Citv Cmincil_ (e) If the applicant is in default of any charges, fees, rents, taxes, or other sums due and payable to the City or the applicant is in default of a requirement of any lease or contract with the City a lease will not be entered into until the deficiencies are remedied. Aligned with KMC 22.05.040 - Lease Application Review for consistency. Page 10 of 11 The City of Kenai I www.kenai.city 22.15.030 Aaalication for Lease Amendment. Assianment. or Renewal Applications for amendment, assignment, or renewal will be processed in accordance with the lease application review provisions of this chapter. Only applications that change the use of the tidelands will be referred to the Planning and Zoning Commission. All others are not subject to review by the Planning & Zoning Commission. The City has no obligation to amend, assign, or renew a lease and may decline to do so upon making specific findings as to why a lease amendment, assignment, or renewal is not in the best interest of the City. Aligned with KMC 22.05.045 — Application for Lease Amendment, Assignment, Extension, or Renewal for consistency. Alaska Statute 38.05.082(c) states, "a lease for setnet fishing may be issued for any period not exceeding [ten] 10 years". City of Kenai leases are for ten years and are not eligible for extension. 22.15.035 Comaetina Lease Aaalications If another application for an initial lease is received for the same property within thirty (30) days from the notice of application publication date by a different applicant, City staff will process the application and forward the application, the City Manager's recommendation and Planning and Zoning Commission recommendations to the City Council for approval of the application anticipated to best serve the interest of the City. The City Council may approve one (1) of the applications, reject all the applications or direct the City Manager to award a lease of the property by sealed bid. Aligned with KMC 22.05.050 — Competing Land Applications for consistency. 22.15.040 Form of Lease. When leasing land under this chapter, the City Manager will use a standard lease form that: (a) Provides a reasonable basis for the lessee's use of the premises; (b) Complies with the intent of this chapter; (c) Provides for the best interest of the City- (d) Is approved as to form by the City Attorney; and (e) Is adopted by resolution of the City Council. Aligned with KMC 22.05.086 — Form of Lease for consistency. Page 11 of 11 The City of Kenai I www.kenai.city City of Kenai 1210 Fidalgo Ave, Kenai, AK 99611-77941907.283.75351 www.kenai.city TO: Mayor Knackstedt and Council Members FROM: Shellie Saner, City Clerk DATE: November 12, 2025 SUBJECT: Action/Approval - Directing the Administration to Bring Forward the Legislation Necessary to Sunset the City of Kenai Harbor Commission. On November 10, 2025 the Harbor Commission met in a work session for the purpose of discussing the Commission Role, Future Status and Possible Sunset. Commission discussion during the work session included the following: • Over the last two -and -a -half years there was nothing required of the commission; the commission had been trying to create agenda items. • Numerous meetings cancelled due to lack of a quorum or lack of agenda items. • Difficulty keeping commissioners. • Now that the Bluff Stabilization project was complete, there were no foreseeable future project for the commission. • Activities of the commission overlapped and duplicated activities of other commissions. During the regular meeting, immediately following the work session the Harbor Commission unanimously approved a motion recommending the City Council sunset the Harbor Commission. If the Council approves a motion directing the Administration to draft the necessary legislation, the draft legislation will be presented to the Harbor Commission at a Special Meeting for recommendation to Council, and brought forward to Council for final action. APPROVED BY COUNCIL Date: KENAI HARBOR COMMISSION — REGULAR MEETING Page 51 DECEMBER 8, 2025 — 6:00 P.M. KENAI CITY COUNCIL CHAMBERS 210 FIDALGO AVE., KENAI, AK 99611 CHAIR JEANNE KEATON, PRESIDING MINUTES A. CALL TO ORDER A Special Meeting of the Harbor Commission was held on December 8, 2025, in the Kenai City Council Chambers, Kenai, AK. Chair Reveal called the meeting to order at approximately 6:00 p.m. 1. Pledge of Allegiance Chair Keaton led those assembled in the Pledge of Allegiance. 2. Roll Call There were present: Reveal, Chair Lisa Gabriel Zachary Rohr Matthew Moffis, Vice Chair A quorum was present. Also in attendance were: Lee Frey, Public Works Director Kevin Buettner, Planning & Zoning Director Lisa List, Public Works Administrative Assistant 3. Agenda Approval MOTION: Commissioner Moffis MOVED to approve the agenda as presented. Commissioner Rohr 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. November 10, 2025 Regular Meeting Minutes MOTION: Commissioner Moffis MOVED to approve the November 10, 2025 Harbor Commission minutes. Commissioner Rohr SECONDED the motion. VOTE: There being no objection; SO ORDERED. E. UNFINISHED BUSINESS - None. F. NEW BUSINESS 1. Action/Approval - Recommending Approval of Proposed Ordinance to City Council Regarding Sunsetting the Harbor Commission Harbor Commission Meeting Page 1 of 2 December 8, 2025 Page 52 MOTION: Commissioner Moffis MOVED to recommend approval of proposed ordinance to City Council regarding sunsetting the Harbor Commission. Commissioner Rohr SECONDED the motion. Planning Director Buettner reported the following: • November 10, 2025 - The Harbor Commission during a Special Meeting, recommended that the City Council consider sunsetting the Harbor Commission. • November 19, 2025 - The City Council during their Regular Meeting approved a motion directing the Administration to draft the necessary legislation to sunset the Harbor Commission and to present that legislation to the Harbor Commission for recommendation. • The proposed Ordinance amends Kenai Municipal Code (KMC) to remove reference to the Harbor Commission, repealing provisions related to its duties and powers; moves leasing of tideland provisions to a new chapter; and transfers powers formerly delegated to the Harbor Commission to the Planning and Zoning Commission. UNANIMOUS CONSENT was requested on the motion. VOTE: There being no objection; SO ORDERED. MOTION PASSED. G. REPORTS 1. Public Works Director Frey Thanked Commissioners for their time and efforts serving on the Harbor Commission. 2. Commission Chair Keaton Thanked the City for their support of the Harbor Commission. 3. City Council Liaison - No report H. ADDITIONAL PUBLIC COMMENTS - None. I. COMMISSION QUESTIONS AND COMMENTS - None. J. ADJOURNMENT K. INFORMATIONAL ITEMS - None. There being no further business before the Harbor Commission, the meeting was adjourned at 6:09 p.m. I certify the above represents accurate minutes of the Harbor Commission meeting of December 8, 2025. Logan Parks Deputy City Clerk Harbor Commission Meeting Page 2 of 2 December 8, 2025 KENAI CITY OF KENAI ORDINANCE NO. 3501-2026 Sponsored by: Administration AN ORDINANCE DETERMINING FOUR CITY -OWNED PROPERTIES IN THE BEAVER LOOP AREA ARE NOT NEEDED FOR A PUBLIC PURPOSE AND AUTHORIZING SALE BY PUBLIC SEALED BID AUCTION. WHEREAS, the City's Land Management Plan identified City -owned property in the Beaver Loop area for potential disposal, noting that wetlands on the property should be protected, while areas suitable for development may be leased following subdivision; and, WHEREAS, the City retained an engineering consultant to excavate test holes, confirming the presence of a marketable quantity of gravel on the southern portion of the property; and, WHEREAS, Ordinance 3431-2024 authorized the purchase of survey services, and a subdivision of the property was completed, creating four parcels with identified gravel resources and one tract consisting primarily of wetlands; and, WHEREAS, the properties proposed for sale are: 1. KPB Parcel 04901068, Lot 1, Beaver Loop Acres Addn No 3 Subdivision 2. KPB Parcel 04901069, Lot 2, Beaver Loop Acres Addn No 3 Subdivision 3. KPB Parcel 04901070, Lot 3, Beaver Loop Acres Addn No 3 Subdivision 4. KPB Parcel 04901071, Lot 4, Beaver Loop Acres Addn No 3 Subdivision; and, WHEREAS, the highest and best use of these parcels is gravel extraction; and, WHEREAS, the parcels are zoned Rural Residential, which allows surface extraction of natural resources by conditional use permit; and, WHEREAS, these properties are not needed for a public purpose and may be utilized to support community development and generate revenue; and, WHEREAS, opening these parcels for sale and utilizing the gravel resources represents an efficient use of City assets, supports local construction and infrastructure projects, and encourages private development; and, WHEREAS, sale by public sealed bid auction is an authorized method of sale pursuant to KMC 22.05.095 (b) (2) (ii); and, WHEREAS, establishing the minimum bid based on the estimated quantity of gravel above the water table for each parcel, calculated using the State of Alaska's Department of Natural Resources Southcentral Region gravel base price of $3.50 per unit and discounted over twenty years at a five percent (5%) discount rate, provides a reasonable base value for public sale purposes; and, WHEREAS, at their regularly scheduled meeting on January 28, 2026, the City of Kenai Planning and Zoning Commission reviewed the proposed sale of the properties and recommended to the City Council; and, New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 3501-2026 Page 2 of 2 WHEREAS, offering these properties for public sale under the outlined terms will encourage development, generate revenue, and 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 Council determines that the following properties are no longer needed for a public purpose and are available for sale: 1. KPB Parcel 04901068, Lot 1, Beaver Loop Acres Addn No 3 Subdivision 2. KPB Parcel 04901069, Lot 2, Beaver Loop Acres Addn No 3 Subdivision 3. KPB Parcel 04901070, Lot 3, Beaver Loop Acres Addn No 3 Subdivision 4. KPB Parcel 04901071, Lot 4, Beaver Loop Acres Addn No 3 Subdivision; Section 2. The Council authorizes these properties to be sold by public sealed bid auction to the highest bidder and that the minimum bid for each parcel will be based on the estimated quantity of gravel above the water table for each parcel, calculated using the State of Alaska's Department of Natural Resources Southcentral Region gravel base price of $3.50 per unit and discounted over twenty years at a five percent (5%) discount rate. Section 3. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application. Section 4. 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 4T" DAY OF FEBRUARY, 2026. ATTEST: Michelle M. Saner, MMC, City Clerk Henry H. Knackstedt, Mayor Introduced: Enacted: Effective: January 21, 2026 February 4, 2026 February 4, 2026 New Text Underlined; [DELETED TEXT BRACKETED] L I000, City of Kenai MEMORANDUM K E N 4 210 Fidalgo Ave, Kenai, AK 99611-7794 1907.283.75351 www.kenai.city TO: Mayor Knackstedt and Council Members FROM: Terry Eubank, City Manager DATE: December 19, 2025 SUBJECT: Ordinance No. 3501-2026 - Determining Four City -Owned Properties in the Beaver Loop Area are Not Needed for a Public Purpose and Authorizing Sale by Public Sealed Bid Auction. The City owns four parcels in the Beaver Loop area that were formerly part of a 320-acre parcel. The City's Land Management Plan identified these lands as suitable for potential disposal, with wetlands protected and developable areas evaluated separately. An engineering consultant completed test holes and confirmed a marketable quantity of gravel on the southern portion of the property. Pursuant to Ordinance 3431-2024, the City subdivided the property into four parcels containing gravel resources and a separate tract consisting primarily of wetlands, which is not proposed for sale. The highest and best use of the four parcels is gravel extraction, which aligns with the Rural Residential zoning and prior City policy supporting resource development along this corridor. The proposed public sale would place underutilized City land into productive use, support local construction and infrastructure needs, encourage private investment, and generate revenue. Sale by public sealed bid auction is authorized under Kenai Municipal Code. Establishing the minimum bid based on the estimated quantity of gravel above the water table for each parcel, calculated using the State of Alaska's Department of Natural Resources' Southcentral Region base price of $3.50 per unit and discounted over twenty years at a 5% discount rate ensures a fair and transparent starting value. Minimum bids would be as follows: If approved, the parcels would be marketed and the sale conducted this spring. The City of Kenai Planning and Zoning Commission is scheduled to review the proposed sale and provide a recommendation to the City Council at its January 28, 2026 meeting. Exhibit A showing the four proposed parcels is attached for reference. The Administration recommends this approach as an efficient use of City assets in support of community development and in the best interest of the City. Your consideration is appreciated. Page 2 of 2 (Cj- The City of Kenai I www.kenai.city Exhibit A Aw t lil� L.t 4V -1- L I000, City of Kenai MEMORANDUM K E N 4 210 Fidalgo Ave, Kenai, AK 99611-7794 1907.283.75351 www.kenai.city TO: Mayor Knackstedt and Council Members THROUGH: Terry Eubank, City Manager FROM: Kevin Buettner, Planning Director DATE: January 29, 2026 SUBJECT: Ordinance 3501-2026 Requested Amendment This memo requests an amendment to Ordinance 3501-2026 which will determine if four City - owned properties in the Beaver Loop Area are not needed for a public purpose and authorizing the sale by public sealed bid auction. At the regularly scheduled Planning & Zoning Commission meeting of January 28, 2026, the Commission voted to recommend that City Council enact Ordinance 3501-2026. The following amendment is respectfully requested. Motion Amend the eleventh WHEREAS by filling in the blank with "enactment". The amended WHEREAS, after amendment will read: WHEREAS, at their regularly scheduled meeting on January 28, 2026, the City of Kenai Planning and Zoning Commission reviewed the proposed sale of the properties and recommended enactment to the City Council; and, Thank you for your consideration. KENAI CITY OF KENAI ORDINANCE NO. 3502-2026 Sponsored by: Administration AN ORDINANCE AUTHORIZING THE CITY MANAGER TO REIMBURSE ANNUAL LEAVE USED BY FIREFIGHTER GARRICK MARTIN FOR ATTENDING A PARAMEDIC INTERNSHIP PROGRAM. WHEREAS, Firefighter Garrick Martin recently completed his paramedic certification program; and, WHEREAS, as part of the certification process, Firefighter Garrick Martin utilized his GI Bill educational benefit, grant funds, approximately $13,000 of his own funds, and 384 hours of annual leave to attend a paramedic internship at Montgomery County Hospital District in Houston, Texas from October 4, 2025 through November 16, 2025; and, WHEREAS, the City benefits from having certified paramedics in the Fire Department who provide a higher level of emergency medical service; and, WHEREAS, as a certified paramedic, Firefighter Martin receives additional compensation; and, WHEREAS, consistent with past City practice, it is in the best interests of the City to reimburse Firefighter Garrick Martin's leave account for the 384 hours of annual leave used to attend the paramedic internship; and, WHEREAS, an ordinance is necessary to accomplish this reimbursement, as the City Code does not contain a specific method for reimbursing leave time for this purpose. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, AS FOLLOWS: Section 1. Form: That this is a non -code ordinance. Section 2. Authorizing the Reimbursement of Leave: That the City Manager is authorized to enter into an agreement to reimburse 384 hours of annual leave utilized by Firefighter Garrick Martin for attending a paramedic internship program over a period of two months. Section 3. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application. Section 4. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect 30 days after enactment. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 4T" DAY OF FEBRUARY, 2026. Henry H. Knackstedt, Ma New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 3502-2026 Page 2 of 2 ATTEST: Michelle M. Saner, MMC, City Clerk Approved by Finance: c Introduced: Enacted: Effective: January 21, 2026 February 4, 2026 February 4, 2026 New Text Underlined; [DELETED TEXT BRACKETED] L I000, City of Kenai MEMORANDUM K E N 4 210 Fidalgo Ave, Kenai, AK 99611-7794 1907.283.75351 www.kenai.city TO: Mayor Knackstedt and Council Members THROUGH: Terry Eubank, City Manager FROM: Stephanie Randall, Human Resources Director DATE: January 13, 2026 SUBJECT: Ordinance No. 3502-2026 - Authorizing the City Manager to Reimburse Annual Leave Used by Firefighter Garrick Martin for Attending a Paramedic Internship Program. This memo provides additional information in support of the referenced ordinance. Firefighter Garrick Martin participated in the Paramedic program through Kenai Peninsula College. The program consisted of classroom sessions, ride -a -longs, labs, hospital clinical rotations and culminated with a 6-week field internship at Montgomery County Hospital District in Houston, Texas. Firefighter Martin has completed the program as of December 3, 2025 and is a Nationally Registered Paramedic. As a licensed paramedic, Firefighter Martin expands the Kenai Fire Department's advanced life support capabilities and increases the level of emergency medical care the department is able to provide to our community. Kenai Fire Department firefighters are not required to become paramedics and are not eligible for a leave of absence with pay under KMC 23.40.060 to attend paramedic school since it is not a requirement of their positions. However, in recognition of professional development, personal time, and effort of the individual to achieve the same, a recognition entitlement is paid to Fire Department employees who obtain a paramedic certification as an additional 5% of the employee's current hourly pay. The City of Kenai has previously reimbursed leave for two other firefighters who used leave when completing paramedic training out-of-state. Reimbursing leave taken to attend paramedic school is also typical of what other similarly -situated departments are doing nationwide. Based upon the recommendation of Fire Chief Jay Teague, the attached Ordinance provides for the City Manager to reimburse Firefighter Garrick Martin for the 384 hours of leave he utilized to attend paramedic training. Thank you for your consideration. KENAI CITY OF KENAI ORDINANCE NO. 3503-2026 Sponsored by: Administration AN ORDINANCE INCREASING ESTIMATED REVENUES AND APPROPRIATIONS IN THE WATER & SEWER CAPITAL PROJECT FUND AND ACCEPTING A LOAN FROM THE STATE REVOLVING FUND PROGRAM FOR THE WATER TREATMENT PUMPHOUSE PROJECT. WHEREAS, the City of Kenai applied for and received a $1,200,000 forgivable loan from the State of Alaska Department of Environmental Conservation State Revolving Fund Program for the Water Treatment Pumphouse Project; and, WHEREAS, the City of Kenai applied for and received an additional $1,500,000 forgivable loan from the State of Alaska Department of Environmental Conservation State Revolving Fund Program for the Water Treatment Pumphouse Project for a total loan of $2,700,000; and, WHEREAS, this project will design and construct a new pumphouse, replace pumps and piping and install a new backup generator and pressure tanks; and, WHEREAS, the City previously appropriated $1,200,000 in Water & Sewer funds to the project; and, WHEREAS, it is in the best interest of the City to accept the forgivable loan funds to complete the project. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, AS FOLLOWS: Section 1. That the City Manager is authorized to accept a forgivable loan from the State of Alaska Department of Environmental Conservation State Revolving Fund Program in the amount of $2,700,000 and expend the funds in accordance with the provisions of the grant. Section 2. That estimated revenues and expenditures be increased as follows: Water & Sewer Capital Protects Fund: Increase Estimated Revenues - State Grants - Increase Appropriations - Construction $2 700 000 $2,700,000 Section 3. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application. New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 3503-2026 Page 2 of 2 Section 4. 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 4T" DAY OF FEBRUARY, 2026. ATTEST: Michelle M. Saner, MMC, City Clerk Approved by Finance: Henry H. Knackstedt, Mayor Introduced: Enacted: Effective: January 21, 2026 February 4, 2026 February 4, 2026 New Text Underlined; [DELETED TEXT BRACKETED] L I000, City of Kenai MEMORANDUM K E N 4 210 Fidalgo Ave, Kenai, AK 99611-7794 1907.283.75351 www.kenai.city TO: Mayor Knackstedt and Council Members THROUGH: Terry Eubank, City Manager FROM: Lee Frey, Public Works Director DATE: January 12, 2026 SUBJECT: Ordinance 3503-2026 - Increasing Estimated Revenues and Appropriations in the Water & Sewer Capital Project Fund and Accepting a Loan from the State Revolving Fund Program for the Water Treatment Pumphouse Project. The memo requests Council's approval to accept a forgivable loan from the State of Alaska Department of Environmental Conservation State Revolving Fund (SRF) Program to complete the Water Treatment Pumphouse Project. The project will consist of design and construction of a new pumphouse, replacement of pumps and piping and installation of a new backup generator and pressure tanks to maintain system pressure during power outages. The SRF loan is 100% forgivable and has been reviewed by legal counsel. Accepting this loan is not considered to be causing the City to take on debt. Originally, we received $1,200,000 from the SRF program. Upon completion of design work, it was determined that additional funding was needed to complete the project and an additional request was submitted. We received an additional $1,500,000 from the SRF program, totaling a $2,700,000 forgivable loan for the City. The City had previously appropriated $1,200,000 of Utility funds for this project with the intention of forward funding the project and apply to reimburse the original $1,200,000 loan received. Current designs and cost estimates have increased the scope and the $1,200,000 is expected to be needed to complete the project. Any remaining unused funds will be returned to the Utility Fund. The Utility Fund is able to handle the funds being used on this project with the Capital Improvement Plan projections. The Public Works Department recommends accepting the loan from the SRF Program to complete the Water Treatment Plan Improvement Project. KENAI CITY OF KENAI RESOLUTION NO. 2026-10 Sponsored by: Administration A RESOLUTION AUTHORIZING THE USE OF THE EQUIPMENT REPLACEMENT FUND FOR THE PURCHASE OF A NEW TRACKLESS MT7 WITH SNOW BLOWER ATTACHMENT. WHEREAS, the purchase of a new Trackless MT7 with snow blower attachment was previously authorized for the price of $202,920.48 through Resolution 2025-66; and, WHEREAS, prior to the purchase being completed additional tariff surcharges were added for this equipment manufactured in Canada; and, WHEREAS, adequate funding from the Equipment Replacement Fund is available to cover the increased price for this purchase; and, WHEREAS, the new purchase price inclusive of tariffs is $205,149.43; and, WHEREAS, purchase of this Trackless unit will maintain standardization of equipment for use of existing attachments and maintenance and the increase in price related to new tariffs cannot be avoided. 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 Yukon Equipment, Inc. in the amount of $205,149.43 for the purchase of a Trackless MT7 with snow blower attachment utilizing Equipment Replacement Funds. Section 2. That this Resolution takes effect immediately upon passage. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 4T" DAY OF FEBRUARY, 2026. Henry H. Knackstedt, Mayor ATTEST: Michelle M. Saner, MMC, City Clerk Approved by Finance: 'cam New Text Underlined; [DELETED TEXT BRACKETED] L I000, City of Kenai MEMORANDUM K E N 4 210 Fidalgo Ave, Kenai, AK 99611-7794 1907.283.75351 www.kenai.city TO: Mayor Knackstedt and Council Members THROUGH: Terry Eubank, City Manager FROM: Lee Frey, Public Works Director DATE: January 26, 2026 SUBJECT: Resolution No. 2026-10 - Authorizing the Use of the Equipment Replacement Fund for the Purchase of a New Trackless MT7 with Snow Blower Attachment. This memo requests Council's approval to increase the purchase price of a Trackless MT7 with snow blower attachment with Yukon Equipment, Inc. for the purchase of a new Trackless MT7 with snow blower attachment utilizing the Equipment Replacement Fund. The purchase price has been revised to reflect additional costs due to tariff charges associated with the equipment being manufactured in Canada. The tariffs went into effect prior to completions of the purchase. The Public Works Department recommends increasing the purchase price for the Trackless MT7 unit with snow blower attachment from Yukon Equipment, Inc.in the amount of $2,228.95. Council's approval is respectfully requested. KENAI CITY OF KENAI RESOLUTION NO. 2026-11 Sponsored by: Administration A RESOLUTION DESIGNATING THE INVESTMENT AND ALLOCATION PLAN FOR THE CITY'S PERMANENT FUNDS AND ESTABLISHING APPROPRIATE BENCHMARKS TO MEASURE PERFORMANCE FOR CALENDAR YEAR 2026. WHEREAS, pursuant to KMC 7.30.020 (a) (2) the Council of the City of Kenai annually approves an Asset Allocation Plan for investment of the City's Permanent Funds; and, WHEREAS, Kenai Municipal Code 7.30.020 (b) permits investment of the Permanent Funds in various asset classes and the Council believes that establishing asset allocation criteria for these various asset classes is in the best interest of the City of Kenai; and, WHEREAS, the annually approved Asset Allocation Plan provides benchmarks to measure investment performance. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, Section 1. That the Council adopts the Asset Allocation Plan for calendar year 2026 as follows: The Asset Allocation Plan and Target Weightings with range restrictions are: ASSET CLASS TARGET % WEIGHTING RANGE % Cash 3 0-10 Fixed Income: Investment Grade Domestic Bonds 26 16-36 High Yield Domestic Bonds 4 0-8 Domestic Equity: Large -Cap Domestic Equity 22 12-32 Mid -Cap Equities 10 0-18 Small -Cap Equities 5 0-10 International Emerging Markets 5 0-10 International Equity 8 4-16 Real-estate equities 2 0-4 Infrastructure equities 5 0-10 Alternative Beta 10 0-15 Section 2. The performance of the Fund and investment managers will be measured as follows: Performance measurement of the Cash allocation will be measured against the target weighting, using the Citi Group 90 Day T-Bill Index as the benchmark. New Text Underlined; [DELETED TEXT BRACKETED] Resolution No. 2026-11 Page 2 of 2 Performance measurement of the Investment Grade Domestic Bond allocation will be measured against the Target weighting, using the Bloomberg Barclays U.S. Aggregate Bond Index for the benchmark. Performance measurement of the High Yield Domestic Bond allocation will be measured against the Target weighting, using the Bloomberg Barclays U.S. Corporate High Yield Very Liquid Bond index for the benchmark. Performance measurement of the Large -Cap Domestic Equity allocation will be measured against the Target weighting, using the Standard & Poor's 500 Index for the benchmark. Performance measurement of the Mid -Cap Equity allocation will be measured against the Target weighting, using the Standard & Poor's 400 Mid -Cap Index as the benchmark. Performance measurement of the Small -Cap Equity allocation will be measured against the Target weighting, using the Standard & Poor's 600 Small -Cap Index as the benchmark. Performance measurement of the International Emerging Markets allocation will be measured against the Target weighting, using the Morgan Stanley Capital International Emerging Markets index as the benchmark. Performance measurement of the International Equity allocation will be measured against the Target weighting, using the Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE) index for the benchmark. Performance measurement of the Real -Estate Equities allocation will be measured against the target weighting, using the Standard & Poor's US REIT Index as the benchmark. Performance measurement of the Infrastructure Equities allocation will be measured against the target weighting, using the STOXX Global Broad Infrastructure Index as the benchmark. Performance measurement of the Alternative Beta allocation will be measured against the target weighting, using the Wilshire Liquid Alternatives Index as the benchmark. Section 3. That this Resolution takes effect on immediately upon passage. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 4T" DAY OF FEBRUARY, 2026. ATTEST: Michelle M. Saner, MMC, City Clerk Approved by Finance: Henry H. Knackstedt, Mayor New Text Underlined; [DELETED TEXT BRACKETED] L I000, City of Kenai MEMORANDUM K E N 4 210 Fidalgo Ave, Kenai, AK 99611-7794 1907.283.75351 www.kenai.city TO: Mayor Knackstedt and Council Members THROUGH: Terry Eubank, City Manager FROM: Dave Swarner, Finance Director DATE: January 28, 2026 SUBJECT: Resolution No. 2026-11 - Designating the Investment and Allocation Plan for the City's Permanent Funds and Establishing Appropriate Benchmarks to Measure Performance for Calendar Year 2026. Pursuant to KMC 7.30.020 the Council annually designates by resolution, the authorized investments and allocation plan for the City's Permanent Funds. Resolution No. 2026-11 establishes the allocation plan and evaluation benchmarks to be used for calendar year 2026. There is no recommended change to the asset allocation from 2025. The portfolio is projected to yield 6.67% on average, a 0.12% decrease from last year. The portfolio is projected to have an annual risk of 10.66% compared to last year's risk of 10.45%. This represents an increase in expected annual risk of 0.21 %. Annual risk is the variation in the expected return of the portfolio at one standard deviation, approximately 68% of all occurrences. The risk of the portfolio is doubled at two standard deviation, 95% of all occurrences. For the proposed portfolio which has an expected annual return of 7.20% and a ten-year expected return of 6.67%, 68% of the time the portfolio should annually return between (3.46)% and 17.86% and 95% of the time the portfolio should return annually between (14.12)% and 28.52% In addition to no change in the portfolio's asset allocation, there is also no change in the portfolio's benchmarks. Benchmarks are used to evaluate the portfolio's return as compared to the return of the market. The following is the recommended 2026 asset allocation for your review. 2026 Asset Allocation Cash 3% Fixed Income Domestic Investment Grade Bonds 26% High Yield Domestic Bonds 4% Total Cash and Fixed Income 30% Domestic Equities US Large Cap 22% US Mid Cap 10% US Small Cap 5% International Equities 8% Emerging Market Equities 5% Total Equities 50% Alternative Investments Real Estate 2% Infrastructure 5% Alternative Beta 10% Total Alternative Investments 17% Total Portfolio 100% Expected Average Annual Return 7.20% Expected Risk (one Standard Deviation) 10.66% Return Range (14.12)% to 28.52% Long-term Expected Return 6.67% Your support for adoption of Resolution 2026-11 is respectfully requested. Page 2 of 2 The City of Kenai I www.kenai.city KENAI CITY COUNCIL — REGULAR MEETING Page 71 JANUARY 21, 2026 — 6:00 P.M. KENAI CITY COUNCIL CHAMBERS 210 FIDALGO AVE., KENAI, AK 99611 MAYOR HENRY H. KNACKSTEDT, PRESIDING MINUTES A. CALL TO ORDER A Regular Meeting of the Kenai City Council was held on January 21, 2026, 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 Sovala Kisena Bridget Grieme Deborah Sounart Glenese Pettey Phil Daniel A quorum was present. Also in attendance were: **Josh Bolling, Student Representative Terry Eubank, City Manager Scott Bloom, City Attorney David Swarner, Finance Director Kevin Buettner, Planning Director (remote participation) Lee Frey, Public Works Director Mary Bondurant, Interim Airport Manager Dave Ross, Police Chief Ryan Coleman, Police Sergeant Shellie Saner, City Clerk 3. Agenda and Consent Agenda Approval Mayor Knackstedt noted the following additions to the Packet: Add to item E. 10. Public Hearing - Resolution No. 2026-09 • Amendment Memo MOTION: Vice Mayor Askin MOVED to approve the agenda and consent agenda with the requested revisions. Council Member 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. UNANIMOUS CONSENT was requested. VOTE: There being no objection; SO ORDERED. City of Kenai Council Meeting Page 1 of 9 January 21, 2026 *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. Kenai Municipal Airport Small Community Air Service Development Program (SCASDP) Application, Jack Penning, Managing Partner, Volaire Aviation Consulting. Mr. Penning provided an update on the air service development efforts for Kenai Municipal Airport, including an analysis of current passenger demand, seat capacity, fare levels and industry conditions; information provided showed a long-term decline in available seats and daily departures. He provided an overview of changes in local air services; national and regional trends affecting small and regional airports, including aircraft shortage, airline consolidation, a shift toward larger aircrafts and higher yield markets; summarized air service development strategies; the use of the Small Community Air Service Development Grant program; airport fee waivers and marketing partnerships with surrounding communities. C. SCHEDULED PUBLIC COMMENTS - None. D. UNSCHEDULED PUBLIC COMMENTS - None. E. PUBLIC HEARINGS 1. Ordinance No. 3498-2026 - Increasing Estimated Revenues and Appropriations in the General Fund to Provide Supplemental Funding for Election Costs in Excess of Budgeted Amounts for the Purpose of Conducting a Special Election. (City Clerk) MOTION: Vice Mayor Askin MOVED to enact Ordinance No. 3498-2026. 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. VOTE: YEA: Askin, Pettey, Kisena, Sounart, Knackstedt, Daniel, Grieme NAY: None **Student Representative Bolling: Yea MOTION PASSED. 2. Ordinance No. 3499-2026 - Increasing Estimated Revenues and Appropriations by $6,500 in the General Fund for Expenditures Which Could Influence the Outcome of the City of Kenai Ballot Proposition No. 2026-A at the April 14, 2026 Special Election. (City Clerk) MOTION: Vice Mayor Askin MOVED to enact Ordinance No. 3499-2026. 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. VOTE: YEA: Pettey, Kisena, Sounart, Knackstedt, Daniel, Grieme, Askin NAY: None **Student Representative Bolling: Yea MOTION PASSED. City of Kenai Council Meeting Page 2 of 9 January 21, 2026 3. Resolution No. 2026-02 - Adopting the City's Capital Improvement Plan for Fiscal Years 2027-2031. (Administration) MOTION: Vice Mayor Askin MOVED to adopt Resolution No. 2026-02. 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. UNANIMOUS CONSENT was requested. VOTE: There being no objection; SO ORDERED. 4. Resolution No. 2026-03 - Adopting Goals to Guide the Preparation of the Fiscal Year 2027 Annual Budget. (Administration) MOTION: Vice Mayor Askin MOVED to adopt Resolution No. 2026-03. Council Member Grieme 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. UNANIMOUS CONSENT was requested. VOTE: There being no objection; SO ORDERED. 5. Resolution No. 2026-04 - Authorizing a Budget Transfer Within the Kenai Recreation Center Improvements Capital Project Fund. (Administration) MOTION: Vice Mayor Askin MOVED to adopt Resolution No. 2026-04. 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. A summary overview of the memo as attached to Resolution No. 2026-04 was provided. There was discussion regarding existing projects in the Capital Improvement Plan; funding opportunities; and the need for a drop curtain. UNANIMOUS CONSENT was requested. VOTE: There being no objection; SO ORDERED. 6. Resolution No. 2026-05 - Declaring a 20-Foot Pedestrian Easement on Lot 48, Shoreline Heights 2023 Addition (Plat KN 2024-83), and as Set Forth on the Attached Exhibit "A" is Not Needed for a Public Purpose and Consenting to Vacation of The Easement. (Administration) MOTION: Vice Mayor Askin MOVED to adopt Resolution No. 2026-05. 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. A summary overview of the memo as attached to Resolution No. 2026-05 was provided. UNANIMOUS CONSENT was requested. VOTE: There being no objection; SO ORDERED. City of Kenai Council Meeting Page 3 of 9 January 21, 2026 7. Resolution No. 2026-06 - Scheduling a Special Election for April 14, 2026, for the Purpose of Providing for Submission to the Qualified Voters of the City the Question(s) of Amending Kenai Municipal Charter, Section 10-1 Annual Election - Time. (Askin, Sounart, Daniel, Kisena, Grieme, Pettey, Knackstedt) MOTION: Vice Mayor Askin MOVED to adopt Resolution No. 2026-06. 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. An overview of tasks between now and the Special Election was provided. UNANIMOUS CONSENT was requested. VOTE: There being no objection; SO ORDERED. 8. Resolution No. 2026-07 - Providing for Submission to the Qualified Voters of the City of Kenai, at the Special Election to be Held on April 14, 2026, the Question of Amending Kenai Municipal Charter, Section 10-1 Annual Election - Times, to Provide that the Annual Date of the City's General Election is Aligned with the Current Annual Election Date of the Kenai Peninsula Borough. (Askin, Sounart, Daniel, Kisena, Grieme, Pettey, Knackstedt) MOTION: Vice Mayor Askin MOVED to adopt Resolution No. 2026-07. Council Member Grieme 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 that the Special Election was required due to the date of the City's election being established in Charter; the City of Soldotna was able to move their election to align with the Kenai Peninsula Borough (KPB) because their election date is established in code; holding City elections separately from KPB would increase the cost of City elections. UNANIMOUS CONSENT was requested. VOTE: There being no objection; SO ORDERED. 9. Resolution No. 2026-08 - Providing for Submission to the Qualified Voters of the City of Kenai, at the Special Election to be Held on April 14, 2026, the Question of Amending Kenai Municipal Charter, Section 10-1 Annual Election - Times, to Set the Fixed Date of the City's Annual General Election in 2026 and Thereafter Remove the Fixed Date of the City's Annual General Election and Authorize the City Council to Establish the Annual General Election Date by Ordinance. (Askin, Sounart, Daniel, Kisena, Grieme, Pettey, Knackstedt) MOTION: Vice Mayor Askin MOVED to adopt Resolution No. 2026-08. 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. There was Council discussion in support of the two questions being separate; clarification was provided that the first question would align the City election with the KPB election and the second question would align the City election with the KPB for 2026 and allow the Council by ordinance to establish future election dates in municipal code. City of Kenai Council Meeting Page 4 of 9 January 21, 2026 UNANIMOUS CONSENT was requested. VOTE: There being no objection; SO ORDERED. 10. Resolution No. 2026-09 - Authorizing a Contract for Design of a New Approach Procedure for the Temporary Runway to be Used During the Main Runway Rehabilitation Project. (Administration) MOTION: Vice Mayor Askin MOVED to adopt Resolution No. 2026-09. Council Member Sounart SECONDED the motion. Mayor Knackstedt opened the floor for public comment. Travis Penrod addressed the Council with concerns regarding the temporary loss of instrument approach during the runway rehabilitation project; the importance of maintaining safe airport access; and general questions related completion of the new approach prior to the start of the runway rehabilitation project. Alex Agosti addressed the Council with concerns regarding the temporary loss of instrument approach, provided an overview of past weather patterns and the critical need for instrument approaches; and highlighted the potential operational, economic and public safety impacts if there were delays in implementing the new approach. Garret Block address the Council with concerns regarding the temporary loss of instrument approach, noting the importance of aligning the project timeline with the summer flight schedule; and summarizing the potential disruptions to flights operations and passenger access if the new approach is delayed. There being no one else wishing to be heard, the public comment period was closed. MOTION TO AMEND: Vice Mayor Askin MOVED to amend Resolution No. 2026-09 and the attached memo as follows: Delete the seventh whereas clause to read "[IT IS IN THE BEST INTEREST OF THE CITY TO CONTRACT WITH IN THE AMOUNT OF $ TO DESIGN A NEW APPROACH PROCEDURE FOR THE TEMPORARY RUNWAY.]" Insert a new seventh whereas clause to read, "it is in the best interest of the City to contract with Hughes Aerospace Corporation in the amount of $43,850 to design a new approach procedure for the temporary runway as this cost is fair and reasonable based on comparison of the two quotes." Section 1 to read, "That the City Manager is authorized to execute a contract with Hughes Aerospace Corporation in the amount of $43,850 for the design of a new approach procedure for the temporary runway utilizing Airport Improvement Capital Project Funds." Attached Memo, first paragraph to read, "This memo requests Council's approval to contract with Hughes Aerospace Corporation in the amount of $43,850 for the design of new flight procedures for the temporary runway during the Runway Rehabilitation Project occurring this summer." Attached Memo, seventh paragraph to read, "The Public Works Department recommends contracting with Hughes Aerospace Corporation in the amount of $43,850 for design of new flight procedures for the temporary runway during the Runway Rehabilitation Project." Council Member Grieme SECONDED the motion amend. UNANIMOUS CONSENT was requested on the motion to amend. VOTE: There being no objection; SO ORDERED. Clarification was provided that in 2008 a sidestep approach was authorized by the FAA, allowing aircraft to transition from runway to taxiway; however, this was no longer allowed by the FAA. He further confirmed that staff would monitor the contractor to ensure the approaches are produced on time; and City of Kenai Council Meeting Page 5 of 9 January 21, 2026 noted the potential government shutdown affecting the FAA could delay the project, local control. UNANIMOUS CONSENT was requested on the main motion as amended. VOTE: There being no objection; SO ORDERED. F. MINUTES G I:I 1. *Regular Meeting of January 7, 2026. (City Clerk) UNFINISHED BUSINESS - None. NEW BUSINESS 1. *Action/Approval - Bills to be Ratified. (Administration) Approved by the consent agenda. Page 76 which was beyond 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. *Ordinance No. 3500-2026 - Sunsetting the Harbor Commission, Amending Kenai Municipal Code 1.90.010 - General Standards for Standing Advisory Commissions, Repealing Kenai Municipal Code 1.95.040 - Harbor Commission, Repealing Kenai Municipal Code 11.20 - Leasing of Tidelands, Amending Kenai Municipal Code 14.05.010 - Duties and Powers, Enacting Kenai Municipal Code 22.05.016 - Tidelands Available for Leasing, Enacting Kenai Municipal Code Chapter 22.10 - Tideland Leases for Shore Fisheries, and Amending Council Policy 20.020 to Reflect the Sunsetting of The Harbor Commission. (Administration) Introduced by the consent agenda and Public Hearing set for February 04, 2026. 4. *Ordinance No. 3501-2026 - Determining Four City -Owned Properties in the Beaver Loop Area are Not Needed for a Public Purpose and Authorizing Sale by Public Sealed Bid Auction. (Administration) Introduced by the consent agenda and Public Hearing set for February 04, 2026. 5. *Ordinance No. 3502-2026 - Authorizing the City Manager to Reimburse Annual Leave Used by Firefighter Garrick Martin for Attending a Paramedic Internship Program. (Administration) Introduced by the consent agenda and Public Hearing set for February 04, 2026. 6. *Ordinance No. 3503-2026 - Increasing Estimated Revenues and Appropriations in the Water & Sewer Capital Project Fund and Accepting a Loan from the State Revolving Fund Program for the Water Treatment Pumphouse Project. (Administration) Introduced by the consent agenda and Public Hearing set for February 04, 2026. 7. Action/Approval -Confirmation of Mayoral Nomination for a Partial Term Appointment of Autumn Carlson to the Beautification Commission and the Parks and Recreation Commission. (Knackstedt) MOTION: Vice Mayor Askin MOVED to confirm the appointment of Autumn Carlson to the Beautification Commission and the Parks and Recreation Commission. Council Member Sounart SECONDED the motion. City of Kenai Council Meeting Page 6 of 9 January 21, 2026 UNANIMOUS CONSENT was requested on the motion. VOTE: There being no objection; SO ORDERED. 8. Action/Approval - Authorizing the Use of City Facility People Counter Cameras for Operational and Safety Purposes. (Administration) MOTION: Vice Mayor Askin MOVED to authorize the use of City Facility People Counter Cameras for operational and safety purposes. Council Member Daniel SECONDED the motion. It was reported the cameras were installed during the COVID-19 pandemic for the purpose of counting individuals coming into and leaving facilities; Council previously restricted the camera use to counting people only and Council approval was required to expand camera use; and there were licensing requirements associated with the expanded use. Clarification was provided that staff had created a camera policy which was reviewed by IT, legal and department heads; the cameras would be city hosted, not web based; the cameras could be used in cases of employee discipline; access would be limited to facility manager or Human Resources if applicable, and any public information request would be reviewed by legal. UNANIMOUS CONSENT was requested on the motion. VOTE: There being no objection; SO ORDERED. 9. Discussion - International Pacific Halibut Commission (IPHC) Proposed Fishery Regulations Reducing Sport Caught Halibut in Alaska from Two (2) Fish to One (1) Fish a Day. (Grieme, Askin) There was discussion regarding the recent IPHC meeting; the impact on residents who rely on halibut; the importance of science based decisions, noting the proposal lacked scientific support; and the authority of IPHC to do this was questioned. I. COMMISSION / COMMITTEE REPORTS 1. Council on Aging Commission Vice Mayor Askin reported on the January 8, 2026 meeting, next meeting February 12, 2026. 2. Airport Commission Vice Mayor Askin reported on the January 8, 2026 meeting, next meeting February 12, 2026. 3. Harbor Commission No report. 4. Parks and Recreation Commission No report, next meeting February 5, 2026. 5. Planning and Zoning Commission Council Member Kisena reported on the January 14, 2026 meeting, next meeting January 28, 2026. 6. Beautification Commission Council Member Grieme reported there was no quorum present. J. REPORT OF THE MAYOR Mayor Knackstedt reported on the following: • Meeting with the Salamatof Tribal Council. City of Kenai Council Meeting Page 7 of 9 January 21, 2026 Page 78 • Thanked the Fire Department for their response to the Cannery Lodge Fire; the Streets Department for maintaining roads considering the recent conditions; and the Clerk for delivering the Special Election legislation. K. ADMINISTRATION REPORTS 1. City Manager - City Manager Eubank reported on the following: • Staffing update: Chandra Mayeux new Building Official starts the first week of February; three conditional offers were made for two utility operator positions and one janitor position; active recruitment for Airport Manager, Firefighter, part time Senior Center driver and additional janitor positions. • Recognized Officer of the Year Chad Larson and Dispatcher of the Year Jen Savely. • Attending a housing briefing organized by Senator Sullivan. • Staff review of multiple lease and purchase applications for potential city developments. • Planning Director Buettner is scheduled to present at the Kenai Chamber Business Symposium on February 18, 2026. • Received and approved architects quote to analyze the Challenger Center as a potential public safety solution; pending the analysis the Request for Interest has not been released. • The Fire Department coordinated with the Streets department for water supply, sand trucks and apparatus movement during the Cannery Lodge fire. • Streets and Airport staff were busy maintaining roads and runway conditions during the sever weather events. 2. City Attorney - No report. 3. City Clerk - No report. L. ADDITIONAL PUBLIC COMMENTS 1. Citizen Comments (Public comments limited to (5) minutes per speaker) 2. Council Comments Student Representative Bolling thanked Council Member Grieme for visiting the leadership class; stated because of her visit multiple students have expressed interest in serving on commissions; and provided an update on high school sport activities. Council Member Grieme stated her appreciation for the ability to attend the Salamatof Tribal Council work session remotely; she was looking forward to this weekend's basketball tournament; and she enjoyed her time with the KCHS leadership class. Council Member Kisena stated he was sorry he missed the work session with Salamatof Tribal Council; he attended the Voyager Cup tournament last week to cheer for the KPHA 12U Girls Hockey Team, who took third place; stated his appreciation for the road conditions in Kenai; and noted he looked forward to being able to fly directly to Seattle from Kenai in the future. Council Member Pettey thanked Council Member Grieme for filling in for her at the Beautification Commission meeting; the Clerk for the election legislation; and restated the importance to our community for the implementation of approaches to the airport. Council Member Sounart thanked the Streets Department for keeping up with the roads; the Clerk for the election legislation; Vice Mayor Askin for filling in at the Airport Commission meeting; and noted the positive outcome from the joint work session with the Salamatof Tribal Council. City of Kenai Council Meeting Page 8 of 9 January 21, 2026 Vice Mayor Askin noted the quality of roads in Kenai compared to the conditions in Anchorage; noted the cooperative efforts from the joint work session with the Salamatof Tribal Council; congratulated Officer Larson and Dispatcher Savely; thanked the Administration and Airport Manager for their work on the approach; and thanked the Clerk for the election legislation. M. EXECUTIVE SESSION - None. N. PENDING ITEMS - None. O. ADJOURNMENT P. INFORMATIONAL ITEMS - None. There being no further business before the Council, the meeting was adjourned at 8:08 p.m. I certify the above represents accurate minutes of the Kenai City Council meeting of January 21, 2026. 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. City of Kenai Council Meeting Page 9 of 9 January 21, 2026 PAYMENTS OVER $35,000.00 WHICH NEED COUNCIL RATIFICATION COUNCIL MEETING OF: FEBRUARY 4, 2026 VENDOR DESCRIPTION DEPARTMENT ACCOUNT AMOUNT PERS PERS VARIOUS LIABILITY 118,981.53 ENSTAR NATURAL GAS GAS USAGE VARIOUS UTILITIES 64,843.63 KENAI CITY OF KENAI ORDINANCE NO. 3504-2026 Sponsored by: Administration AN ORDINANCE ACCEPTING AND APPROPRIATING AN INCREASE IN THE TITLE III GRANT FROM THE STATE OF ALASKA DEPARTMENT OF HEALTH, DIVISION OF SENIOR AND DISABILITIES SERVICES, FOR NUTRITION, TRANSPORTATION, AND SUPPORT SERVICES. WHEREAS, annually the City receives a grant from the State of Alaska Department of Health, Division of Senior and Disabilities Services, to provide the Senior Citizen Nutrition, Transportation, and Support Services; and, WHEREAS, the original Title III Nutrition, Transportation, and Support Services grant amount of $237,000 was appropriated through Budget Ordinance No. 3471-2025; and, WHEREAS, additional funds were appropriated by the State of Alaska and dispersed among Title III grantees; and, WHEREAS, the City of Kenai was awarded an increase of $72,706.88 to support senior nutrition, transportation, and support services from July 1, 2025, through June 30, 2026; and, WHEREAS, these additional funds will enhance services that support the health, independence, and well-being of older adults in the Kenai communities; and, WHEREAS, acceptance of these funds is in the best interest of the City of Kenai. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, AS FOLLOWS: Section 1. That the City Manager is authorized to accept an increase of $72,706.88 to the FY26 NTS grant from the State of Alaska, Department of Health, Division of Senior and Disabilities Services for the Kenai Senior Center. Section 2. That the estimated revenues and appropriations be increased as follows: Senior Citizen Fund: Increase Estimated Revenues State Grants $72,706.88 Increase Appropriations Access - Salaries $4,664.00 Transportation — Operating & Repair Supplies 6,000.00 Congregate Meals — Operating & Repair Supplies 31,021.44 Home Meals — Operating & Repair Supplies 31,021.44 $72, 006.88 Section 3. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The Citv Council herebv declares New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 3504-2026 Page 2 of 2 that it would have enacted the remainder of this ordinance even without such part, provision, or application. Section 4. 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 18T" DAY OF February, 2026. ATTEST: Michelle M. Saner, MMC, City Clerk Approved by Finance: Henry H. Knackstedt, Mayor Introduced: Enacted: Effective: February 4, 2026 February 18, 2026 February 18, 2026 New Text Underlined; [DELETED TEXT BRACKETED] L I000, City of Kenai MEMORANDUM K E N 4 210 Fidalgo Ave, Kenai, AK 99611-7794 1907.283.75351 www.kenai.city TO: Mayor Knackstedt and Council Members THROUGH: Terry Eubank, City Manager FROM: Kathy Romain, Senior Center Director DATE: January 26, 2026 SUBJECT: Ordinance 3504-2026 -Accepting and Appropriating an Increase in the Title III Grant from the State of Alaska Department of Health, Division of Senior and Disabilities Services, for Nutrition, Transportation, and Support Services. The Kenai Senior Center receives a yearly grant from the State of Alaska under the Title III Nutrition, Transportation, and Services (NTS) Program. The original Title III Nutrition, Transportation, and Support Services (NTS) grant amount of $237,000 appropriated through Budget Ordinance No. 3471-2025. Our program has been given an increase of $72,706.88 for services from July 1, 2025, through June 30, 2026 (FY26). These additional funds will be used to purchase operating supplies for congregate and home - delivered meals, increase the fuel budget, and support salaries associated with Homemaker Services provided through the Title III NTS grant. The estimated revenues and appropriations would be increased as follows: Senior Citizen Fund: Increase Estimated Revenues State Grants $72, 006.88 Increase Appropriations Access - Salaries $4,664.00 Transportation — Operating & Repair Supplies 6,000.00 Congregate Meals — Operating & Repair Supplies 31,021.44 Home Meals — Operating & Repair Supplies 31,021.44 $72, 006.88 Your support is greatly appreciated. Page 84 • 0/ KENAI City of Kenai 1 210 Fidalgo Ave, Kenai, AK 99611-7794 1907.283.75351 www.kenai.city MEMORANDUM TO: City Council Members FROM: Henry Knackstedt, Mayor DATE: January 23, 2026 SUBJECT: Action/Approval - Council Confirmation of Mayoral Nominations of Scott Bremer to the Airport Commission. A vacancy currently exists on the Airport Commission; an application for a partial term on the Lessee seat has been received and is attached for consideration. Pursuant to Kenai Municipal Code 1.90.010 members are nominated by the Mayor and confirmed by the City Council. Council confirmation of the following appointment is requested: • Scott Bremer - Airport Commission partial term ending on December 31, 2026. Your consideration is appreciated. KENAI Commission Application Application for Appointments to the Airport, Beautification, Council on Aging, Harbor, Parks & Recreation, and Planning and Zoning Commissions First Name: Scott Primary Phone:* Residence Address: Street Number & Street Name Mailing Address* Street Address Address Line 2 city Kenai Postal/Zip Code 99611 Are you a Resident of the City of Kenai?* Yes No Last Name:* Bremer Home Phone: State/Province/Region AK Country USA Name of Spouse: E-mail* If resident, how long? Name of Employer: 35 yrs Peninsula Aero Technology, Inc. Commission Membership Requirements: Airport Commission: The Airport Commission has four designated seats and three at large seats. lfappiying for the Airport Commission, he sure and select the Sear you are applying for in the next column. Beautification, Harbor and Parks & Recreation Commissions: May at the discretion of the Council have up to two non-resident members. Council on Aging Commission: Members need only to reside on the Kenai Peninsula and 51 % of whom must be 55-years or older. Planning & Zoning Commission: May have 1 member that is not a resident of the City if that member has controlling ownership in a business physically located in the City. Commission in which you are interested:* Airport Commission Airport Commission Designated Seats: Lessee of Airport Lands or Terminal Why do you want to be involved with this Commission? I'd like to have input on how the airport is managed, and for future planning of airport development List Current Organization Memberships: List Past Organization Memberships: What background, experience or other credentials do you possess to bring to the Commission? I've been working on the airport for over 30 years, I'm a business owner that leases property on the airport as well. My business has been operating on the Kenai airport since 1999. If appointed, select items approved for publication on City Website: Primary Phone Home Phone Email K I N A I City of Kenai 1 210 Fidalgo Ave, Kenai, AK 99611-7794 1907.283.7535 1 www.kenaixity MEMORANDUM TO: Mayor Knackstedt and Council Members THROUGH: Terry Eubank, City Manager FROM: Dave Swarner, Finance Director DATE: January 28, 2026 SUBJECT: Scheduling Work Session with Alaska Permanent Capital Management to Amend Kenai Municipal Code Investment Options Alaska Permanent Capital Management (APCM) would like to coordinate with staff and Council to identify a suitable date for a work session focused on aligning the City's investment liquidity, risk profile, and Investment Policy Statement (IPS) with long-term portfolio objectives. The goal of this session is to outline potential enhancements that support continued optimization of the City's investment program. APCM has managed the City's investment Permanent fund since 2008 and, as of November 2024, assumed management of the Custody account. Over the full period of management, the Custody portfolio has not experienced liquidity needs, providing a strong foundation for evaluating potential adjustments. Any recommendations presented will continue to uphold the City's established investment objectives: 1. Safety of principal 2. Maintaining sufficient liquidity to meet cash flow requirements 3. Achieving a reasonable, market -average rate of return During the work session, APCM will outline potential enhancements within three sections of the municipal code: • 7.22.030 Authorized Investments 7.22.040 Maturities 7.22.060 Liquidity Two strategies that may improve yield over a full market cycle include extending the portfolio's maturity profile and broadening the range of permitted investment -grade securities. APCM will provide examples from other Alaska governmental entities to illustrate how similar adjustments have supported stronger long-term outcomes. APCM looks forward to discussing these opportunities and answering any questions as the City considers potential updates to its investment framework. Administration respectfully request a work session with APCM on March 181", 2026 at 4:00 pm. Resolutions will be presented for adoption at a subsequent City Council meeting. Your support in scheduling a work session to discuss the City's investment program is greatly appreciated. KENAI PLANNING & ZONING COMMISSION — REGULAR MEETING Page ss JANUARY 14, 2026 — 7:00 P.M. KENAI CITY COUNCIL CHAMBERS 210 FIDALGO AVE., KENAI, AK 99611 VICE CHAIR EARSLEY, PRESIDING MINUTES A. CALL TO ORDER A Regular Meeting of the Kenai Planning & Zoning Commission was held on January 14, 2026, in City Hall Council Chambers, Kenai, AK. Commissioner Keaton called the meeting to order at approximately 7:00 p.m. 1. Pledge of Allegiance Commissioner Keaton led those assembled in the Pledge of Allegiance. 2. Roll Call There were present: Jeanne Keaton Sonja Earsley, Vice Chair (remote participation) Gwen Woodard Alex Douthit Stacie Krause Diane Fikes Marty Askin (remote participation) A quorum was present. Also in attendance were: Kevin Buettner, Planning Director Sovala Kisena, City Council Liaison Logan Parks, Deputy City Clerk 3. Election of Chair and Vice Chair Commissioner Fikes nominated Commissioner Douthit as Chair. Commissioner Woodard nominated Commissioner Keaton as Chair. A secret ballot vote took place; Commissioner Keaton received four votes and Commissioner Douthit received three votes. Commissioner Keaton was elected Chair. Commissioner Woodard nominated Commissioner Douthit as Vice Chair. There were no other nominations; and having no objections, Commissioner Douthit was elected Vice Chair. 4. Agenda and Consent Agenda Approval Chair Keaton noted the following additions to the Packet: Add to item F.1. Conditions, Restrictions, and Covenants • Redoubt Terrace MOTION: Commissioner Woodard MOVED to approve the agenda and consent agenda with the requested revisions. Commissioner Douthit SECONDED the motion. The items on the Consent Agenda were read into the record. Chair Keaton opened the floor for public comment on consent agenda items; there being no one wishing to be heard, the public comment period was closed. Planning & Zoning Commission Page 1 of 4 January 14, 2026 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 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 December 10, 2026. C. SCHEDULED PUBLIC COMMENTS - None. D. UNSCHEDULED PUBLIC COMMENTS - None. E. CONSIDERATION OF PLATS - None. F. PUBLIC HEARINGS 1. Resolution PZ2026-01 - Granting a Conditional Use Permit to Operate an Automotive Repair Business on the Parcel Described as Lot 23, Block 3, Redoubt Terrace Subdivision, Located at 1606 Salmo Circle, Within the Suburban Residential (RS) Zoning District. MOTION: Commissioner Douthit MOVED to approve Resolution PZ2026-01. Commissioner Woodard SECONDED the motion. Chair Keaton opened the floor for public comment. Troy and Kiersten Consiel, applicants, addressed the commission noting that the application had been revised to address feedback received during the prior meeting, which including limiting the number of vehicles stored on -site; no on street parking to maintaining neighborhood appearance and minimizing disruptions. In response to questions from the Commission, the applicants clarified the following: • The one lift in the garage was installed four years ago; inspections on the lift were done regularly by the applicant, not done by an outside inspector; and the lift was installed by a professional. • Regarding hazard mitigation, there was no drain in the garage floor; spills would be cleaned up with absorbs then stored in containers to be picked up by a provider qualified to handle the materials. • The homeowner insurance company had not been contacted regarding the home business; there currently was no business insurance in place; however, the applicant was working with a company for shopkeeper insurance. • The address of the adjacent lot listed in the application was not included in the application. • Vehicles may be dropped off or picked up outside of business hours established in the Conditional Use Permit. • The applicant stated they had been doing side work and no complaints were received from neighbors. MOTION: Commissioner Douthit MOVED to amend the Conditional Use Permit to include the address 1604 Salmo Circle. Commissioner Woodard SECONDED. [Clerk's Note: The vote of the motion to amend was not called, therefore, the motion to amend fell to the floor.] Planning & Zoning Commission Page 2 of 4 January 14, 2026 There was Commission discussion regarding concerns with the increased traffic from vehicle drop off, pick up and hazardous chemical removal; the application had not identified the number of clients per day; no established lift inspection requirements; and the proposed activities would be disruptive to the harmony and quality of life in the residential neighborhood. There was additional discussion regarding covenant restrictions; and the proposed location was in a cul- de-sac. Jan Kornstad addressed the Commission in opposition to the conditional use permit, questioning the need of an adequate fire suppression systems for an automotive shop; expressed concerns related to the introduction of a business in a residential subdivision; and the City's role in enforcement on future businesses. Judy Buffington addressed the Commission in opposition to the conditional use permit, noting concerns with existing traffic patterns and if approved there would be an increase of traffic within the subdivision. Vern Kornstad addressed the Commission in opposition to the conditional use permit, noting concerns regarding potential impacts on the surrounding property values; and future buyers' perception of purchasing a home in a residential area adjacent to an automotive shop. MOTION: Commissioner Fikes MOVED to enter into adjudicative session in accordance with Alaska Statutes 44.62.310(d)(1), for the purpose of performing judicial or quasi-judicial functions related to findings of fact, Planning Commissioners and Planning Director Buettner will be included in the adjudicative session. Commissioner Douthit SECONDED. MOTION: Commissioner Douthit MOVED to enter back into regular session. Commissioner Fikes SECONDED. UNANIMOUS CONSENT was requested. VOTE: There being no objection; SO ORDERED. [Clerk's Note: Hearing no objections to the motions, the Commission entered into adjudicative session at 7:59 p.m. and reconvened into regular session at approximately 8:25pm.] Planning Director Buettner read the following findings into the record: The proposed use would not meet the requirements of KMC 14.20.150(d)(5); and would be harmful to the public safety, health and welfare due to increased traffic, fire egress, and the location within a cul-de-sac for emergency response. The proposed use would not meet the requirements of KMC 14.20.150(d)(4) as the covenants, conditions and restrictions of the neighborhood were still active. There being no one else wishing to be heard, the public comment period was closed. [Clerk's Note: Each Commissioner prior to voting stated their vote was based on the findings of fact read into the record by Planning Director Buettner.] VOTE: YEA: NAY: Keaton, Douthit, Krause, Fikes, Woodard ABSENT: None. MOTION FAILED TO ADOPT. Chair Keaton noted the 15-day appeal period. G. UNFINISHED BUSINESS - None. Planning & Zoning Commission Page 3 of 4 January 14, 2026 Page 91 H. NEW BUSINESS 1. Discussion/Approval - Determining End of Year Meeting Schedule. Commissioners scheduled a Regular Meeting for November 17, 2026 at 7p.m. instead of November 25, 2026. I. REPORTS 1. Planning Director Planning Director Buettner reported on the following: • End of year 2025 statistics. • Updates on Conditional Use Permits. • Overview of code enforcement efforts. 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 Council Member Kisena reported on recent actions of the City Council. J. ADDITIONAL PUBLIC COMMENTS - None. K. NEXT MEETING ATTENDANCE NOTIFICATION 1. Next Meeting: January 28, 2026 L. COMMISSION COMMENTS AND QUESTIONS Commissioner Douthit thanked the Commission. Commissioner Woodard welcomed Commissioner Douthit. Commissioner Krause thanked Council Member Kisena for attending the government class. Commissioner Askin welcomed Commissioner Douthit. Commissioner Earsley welcomed Commissioner Douthit and congratulated the new Chair and Vice Chair. 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 8:41 p.m. I certify the above represents accurate minutes of the Kenai City Council meeting of January 14, 2026. Logan Parks, Deputy City Clerk Planning & Zoning Commission Page 4 of 4 January 14, 2026 L I000, City of Kenai MEMORANDUM K E N 4 210 Fidalgo Ave, Kenai, AK 99611-7794 1907.283.75351 www.kenai.city TO: Mayor Knackstedt and Council Members THROUGH: Terry Eubank, City Manager THROUGH: David Swarner, Finance Director FROM: Jennifer Anderson, Controller DATE: January 28, 2026 SUBJECT: Quarterly Financial Report — as of December 31, 2025 Attached is the quarterly financial report for the following funds: • General Fund • Personal Use Fishery Fund • Airport Fund • Water/Sewer Fund • Senior Fund This report is prepared primarily on a cash basis; certain account balances may not appear proportionate at this stage of the fiscal year. For example, within the General Fund, the majority of property tax revenue is collected in September and November. Accordingly, revenue levels will normalize over the remainder of the year as these collections are completed. Additionally, General Fund Non -Departmental expenses are currently at 72.56% of the total annual budget. This higher percentage is due primarily to the full -year liability insurance expense, which was paid in July 2025. The remaining Non -Departmental expenditures are expected to align with budgeted amounts through the rest of the fiscal year. State and Federal Revenue: State and federal revenues are currently below budget across all funds due to the reimbursement nature of City grants and the handling of Public Employees' Retirement System (PERS) aid. The State does not remit PERS funds directly to the City; instead, it makes an "on - behalf' payment to the retirement system. Both the revenue and expenditure entries related to these payments will be recorded at year-end. Quarterly Expenditure Report For Quarter Ended December 31, 2025 General Fund - 001 REVENUES Appropriation of Fund Balance Taxes Licenses/Permits and Ambulance State/Federal Dock/Multipurpose/Miscellaneous Fines and Forfeitures Interest and Miscellaneous Transfers/Central Admin Fees Total Revenues EXPENDITURES & TRANSFERS General Government 01 City Clerk 11 Legislative 12 Legal 13 City Manager 14 Human Resources 15 Finance 16 Land Administration 18 Non -Departmental 19 Planning and Zoning 20 Safety Total General Government Public Safety 21 Police 22 Fire 23 Communications 29 Animal Control Total Public Safety Public Works 31 Public Works Administration 32 Shop 33 Streets 34 Buildings 35 Street Lighting 60 Dock Total Public Works Parks and Recreation & Culture 03 Visitor Center 40 Library 45 Parks, Recreation & Beautification Total Parks and Recreation & Culture Total Operating Expenditures Transfer to other funds Street Improvement Capital Project Fund Kenai Recreation Center Capital Project Fund Public Safety Capital Project Fund Municipal Facility Improvement Cap Proj Fund Multipurpose Facility Capital Proj. Fund Visitor Center Improvement Capital Proj. Fun( Information Technology Capital Proj. Fund City Hall Improvement Capital Proj. Fund Animal Shelter Capital Project Fund Public Safety Building Capital Proj. Fund Kenai Fine Arts Center Imp. Cap. Proj. Fund Kenai Cemetery Imp. Capital Project Fund Kenai Senior Center Imp. Capital Project Fun( Park Improvement Capital Project Fund Senior Citizen Special Revenue Fund Debt Service Total Transfer to other funds Total Expenditures & Transfers Net Revenues over(under) Expenditures 7/1/2024 7/1/2025 7/1/2025 7/1/2025 6/30/2025 7/1/2025 6/30/2026 12/31/2025 Original * FY2025 FY2026 Amended YTD Actual Budget Budget Actual Variance % $ - $ 1,718,967 $ 1,847,028 $ - (1,847,028.37) 0.00% 15,037,376 15,137,040 15,137,040 8,923,215 $ (6,213,825) 58.95% 1,881,974 1,494,980 1,494,980 382,606 $ (1,112,374) 25.59% 741,558 797,941 797,941 67,805 $ (730,136) 8.50% 306,151 215,750 215,750 102,463 $ (113,287) 47.49% 75,183 84,200 84,200 58,079 $ (26,121) 68.98% 1,405,835 1,085,900 1,090,400 1,001,283 $ (89,117) 91.83% 2,171,069 2,082,268 2,082,268 998,950 (1,083,318) 47.97% 21,619,146 22,617,046 22,749,607 11,534,401 (11,215,206) 50.70% $ 349,137 $ 389,714 $ 389,714 $ 171,973 $ 217,741 55.87% 180,960 182,614 182,614 87,230 95,384 52.23% 421,976 466,601 466,601 204,960 261,641 56.07% 489,431 543,716 543,716 229,752 313,964 57.74% 196,666 205,336 205,336 98,471 106,865 52.04% 983,389 1,004,759 1,004,759 464,163 540,596 53.80% 67,396 157,652 240,602 80,142 160,460 66.69% 994,646 1,539,469 1,538,761 1,116,545 422,216 27.44% 329,040 253,035 253,035 117,744 135,291 53.47% 2,801 3,650 3,650 461 3,189 87.37% 4,015,442 4,746,546 4,828,788 2,571,441 2,257,347 46.75% 3,756,260 3,959,982 3,959,982 1,860,887 2,099,095 53.01% 3,965,306 4,301,865 4,301,865 1,840,882 2,460,983 57.21% 1,014,424 1,043,376 1,043,376 495,180 548,196 52.54% 463,978 492,634 492,634 194,356 298,278 60.55% 9,199,968 9,797,857 9,797,857 4,391,305 5,406,552 55.18% 250,862 237,180 236,781 108,239 128,542 54.29% 694,583 747,828 747,828 305,475 442,353 59.15% 1,025,466 1,298,949 1,317,949 380,172 937,777 71.15% 412,126 514,267 539,666 146,028 393,638 72.94% 198,469 235,440 235,440 115,360 120,080 51.00% 39,380 54,579 54,579 14,718 39,861 73.03% 2,620,886 3,088,243 3,132,243 1,069,992 2,062,251 65.84% 204,618 201,024 201,732 93,980 969,626 1,032,532 1,037,032 453,066 L,`TGV,VV/ L,JI L,J/I L,JI I,JVJ I,VI V,VVV 18,264,303 20,205,024 20,336,473 9,103,624 432,257 140,631 25,000 50,000 144,625 217,467 130.750 1,140,730 19,405,033 $ 2,214,113 1,800,000 75,000 120,000 286,397 130,625 2,412,022 22,617,046 1,800,000 1,112 75,000 120,000 286,397 130,625 2,413,134 22,749,607 1,800,000 1,112 75,000 120,000 143,199 113,875 2,253,185 11,356,809 $ 177,592 107,752 53.41 % 583,966 56.31 % 814,981 60.87% 1,506,699 58.45% 11,232,849 55.23% 143,199 16,750 159,949 11,392,798 $ 177,592 0.00% 0.00% 0.00% 0.00% 50.00% 12.82% 6.63% 50.08% * Note: The original budget includes outstanding encumbrances at 6/30/2025. Quarterly Expenditure Report For Quarter Ended December 31, 2025 PU Fisheries - 006 REVENUES Appropriation of Fund Balance Beach Parking Beach Camping Dock Launch & Park Dock Parking Only Participant Drop-off Fee Interest Earnings PERS Grant Credit Card Fees Transfer from Other Funds Total Revenue EXPENDITURES & TRANSFERS Public Safety Streets Boating Facility Parks, Recreation & Beautification Total Operating Expenditures Transfers to Other Funds Total Expenditures & Transfers Net Revenues over Expenditures Original * FY2025 FY2026 Amended YTD Actual Budget Budget Actual Variance % 0 $ - $ 46,391 $ 46,391 $ - $ (46,391) 0.00% 173,592.00 169,755 169,755 180,040 10,285 106.06% 238,852.00 222,500 222,500 265,757 43,257 119.44% 88,423.00 95,000 95,000 84,703 (10,297) 89.16% 11,483.00 12,495 12,495 11,773 (722) 94.22% 4,110.00 4,400 4,400 3,831 (569) 87.07% 25,066.00 15,000 15,000 - (15,000) 0.00% 1,104.00 2,051 2,051 - (2,051) 0.00% (11,603.00) (11,500) (11,500) (14,155) (2,655) 123.09% - - - - - 0.00% 531,027 556,092 556,092 531,949 (24,143) 95.66% $ 120,245 $ 148,536 $ 148,536 $ 83,982 $ 64,554 43.46% 25,440 35,492 35,492 12,199 23,293 65.63% 34,294 70,086 70,086 45,469 24,617 35.12% 229,688 226,978 226,978 157,248 69,730 30.72% 409,667 481,092 481,092 298,898 182,194 37.87% 75,000 75,000 75,000 75,000 - 0.00% 484,667 556,092 556,092 373,898 182,194 32.76% $ 46,360 $ - $ - $ 158,051 $ 206,336 * Note: The original budget includes outstanding encumbrances at 6/30/2025. Quarterly Expenditure Report For Quarter Ended December 31, 2025 Airport Fund - 008 REVENUES Appropriation of Fund Balance State/Federal Interest , Leases & Fees Terminal Revenues Landing Fees Transfers In Total Revenues EXPENDITURES & TRANSFERS Terminal Area Airfield Administration Other Buildings & Areas Training Facility Total Expenditures Transfer to other funds Airport Improvement Capital Projects Total Transfer to other funds Total Expenditures & Transfers Net Revenues over Expenditures Original * FY2025 FY2026 Amended YTD Actual Budget Budget Actual Variance % $ - $ 1,272,371 $ 1,272,371 $ 1,403,073 $ 130,702 110.27% 27,540 47,167 47,167 - (47,167) 0.00% 804,808 1,039,116 904,116 559,162 (344,954) 61.85% 1,332,514 1,159,321 1,159,321 550,601 (608,720) 47.49% 382,293 410,000 410,000 202,631 (207,369) 49.42% 1,094,116 1,099,774 1,099,774 - (1,099,774) 0.00% 3,641,271 5,027,749 4,892,749 2,715,467 (2,177,282) 55.50% $ 606,385 $ 683,755 $ 548,755 $ 288,131 $ 260,624 47.49% 1,977,638 2,300,352 2,290,352 871,628 1,418,724 61.94% 394,359 408,313 418,313 167,521 250,792 59.95% 166,686 217,329 217,329 75,275 142,054 65.36% 165,898 152,900 152,900 47,811 105,089 68.73% 3,310,966 3,762,649 3,627,649 1,450,366 2,177,283 60.02% 43,237 1,265,100 1,265,100 1,265,100 - 0.00% 43,237 1,265,100 1,265,100 1,265,100 - 0.00% 3,354,203 5,027,749 4,892,749 2,715,467 2,177,282 44.50% $ 287,068 $ - - $ - $ 0 * Note: The original budget includes outstanding encumbrances at 6/30/2025. Quarterly Expenditure Report For Quarter Ended December 31, 2025 WS Fund - 010 REVENUES Appropriation of Fund Balance State/Federal Water/Sewer Fees Penalty and Interest Interest and Miscellaneous Transfers In Total Revenues EXPENDITURES & TRANSFERS Water Sewer Wastewater Treatment Plant Total Expenditures Transfer to other funds - Water & Sewer Capital Projects Total Transfer to other funds Total Expenditures & Transfers Net Revenues over Expenditures Original * FY2025 FY2026 Amended YTD Actual Budget Budget Actual Variance % $ - $ - $ 352,550 $ 583,161 $ 230,611 165.41% 31,019 45,879 45,879 - (45,879) 0.00% 3,405,450 3,416,136 3,416,136 1,679,358 (1,736,778) 49.16% 43,913 42,588 42,588 19,830 (22,758) 46.56% 604,080 445,000 445,000 186,761 (258,239) 41.97% 155,166 - - - - 0.00% 4,239,628 3,949,603 4,302,153 2,469,109 (1,833,043) 57.39% $ 989,066 $ 1,136,190 $ 1,136,190 $ 458,889 $ 677,301 59.61 % 489,442 653,968 653,968 298,797 355,171 54.31% 1,106,078 1,261,995 1,261,995 461,423 800,572 63.44% 2,584,586 3,052,153 3,052,153 1,219,109 1,833,044 60.06% 652,389 500,000 1,250,000 1,250,000 - 0.00% 652,389 500,000 1,250,000 1,250,000 - 0.00% 3,236,975 3,552,153 4,302,153 2,469,109 1,833,043 42.61% $ 1,002,653 $ 397,450 $ - $ - $ - * Note: The original budget includes outstanding encumbrances at 6/30/2025. Quarterly Expenditure Report For Quarter Ended December 31, 2025 Senior Fund - 019 REVENUES Appropriation of Fund Balance State Grants Federal Grants USDA Grant Choice Waiver KPB Grant United Way Rents & Leases Miscellaneous Donations Donations - Senior Connection Meal Donations Ride Donations Transfer from General Fund - Operations Other Total Revenues EXPENDITURES & TRANSFERS Senior Citizen Access Congregate Meals Home Meals Senior Transportation Choice Waiver Total Expenditures Total Expenditures & Transfers Net Revenues over Expenditures Original * FY2025 FY2026 Amended YTD Actual Budget Budget Actual Variance % $ - $ 57,569 $ 57,865 $ 57,865 $ - 100.00% 237,724 237,492 237,492 133,285 (104,207) 56.12% - - - - - 0.00% 21,768 22,000 22,000 11,080 (10,920) 50.36% 106,394 100,000 100,000 60,287 (39,713) 60.29% 186,143 186,143 185,846 33,846 (152,000) 18.21% - - - - - 0.00% 9,688 8,500 8,500 5,165 (3,335) 60.76% 20,818 21,500 21,500 9,157 (12,343) 42.59% 121,083 120,000 120,000 1,035 (118,965) 0.86% 87,752 95,650 95,650 46,336 (49,314) 48.44% 4,364 6,000 6,000 3,498 (2,502) 58.30% 217,467 286,397 286,397 143,199 (143,198) 50.00% 3,110 300 300 (3) (303) -1.00% 1,016,311 1,141,551 1,141,550 504,749 (636,800) 44.22% $ 234,641 $ 242,178 $ 242,178 $ 109,004 $ 133,174 54.99% 194,282 262,330 262,330 128,542 133,788 51.00% 450,112 421,756 421,616 200,586 221,030 52.42% 122,149 143,672 143,672 51,838 91,834 63.92% 61,692 71,615 71,615 29,359 42,256 59.00% 1,062,876 1,141,551 1,141,411 519,329 622,082 54.50% 1,062,876 1,141,551 1,141,550 519,329 622,082 54.49% $ (46,565) $ - $ - $ (14,580) $ (14,718) * Note: The original budget includes outstanding encumbrances at 6/30/2025. MEMORANDUM TO: FROM: DATE: SUBJECT: KINA City of Kenai 1 210 Fidalgo Ave, Kenai, AK 99611.7794 1 907.283.7-535 1 wwwlcinai.tity Mayor Knackstedt and Council Members Dave Swarner, Finance Director January 29, 2026 December 2025 Quarterly Investment Report City of Kenai Investment Portfolio At December 31, 2025 the City had investments with a market value of $40,813,782. That is up from $39,092,674 at September 30, 2025. The City's portfolio is yielding 3.72% that is down from 3.80% at September 30, 2025. The Federal Fund Rate decreased .50% during the quarter with the rate between at 3.50%-3.75%. Fair market value adjustments to the portfolio through September, 2025 are a positive $297,622. As of June 30, 2025, the portfolios fair market value adjustment was a negative $298,227. Rates are projected to decrease and further decreasing the negative fair market value adjustment but lower yield for the portfolio will also occur. City's Investment Portfolio US Agency Securities $34,321,630 AML Investment Pool 4,179,258 Wells Fargo Money Market 43,994 FDIC Insured Certificates of Deposit 488,790 Bank Balance 1,780,110 Total $ 40,8 33,782 Permanent Fund Investments At December 31, 2025, the portfolio value was $39,938,702. That is up from $39,197,882 at September 30, 2025. It is comprised of $32,909,598, 82.40% Airport Land Sale Permanent Fund, $4,263,733, 10.67% General Land Sale Permanent Fund monies, $1,489,489, 3.73% Kenai Senior Connection monies, $1,013,873, 2.54% Kenai Senior Center Cone Memorial Trust monies, and $262,009, 0.66% Kenai Community Foundation holdings. CITY OF KENAI INVESTMENT PORTFOLIO SUMMARY December 31, 2025 December 31, 2025 Fair Market Value Cash & Cash Equivalents Wells Fargo Checking $ 1,780,110 Wells Fargo Secured Money Market 43,994 FDIC Insured Certificates of Deposit 488,790 Alaska Municipal League Investment Pool 4,179,258 Total Cash & Cash Equivalents 6,492,152 Government Securities Maturities Less than 1 Year 15,120,268 Maturities 1 to 2 Years 7,903,899 Maturities Greater than 2 Years 11,297,463 Total Government Securities 34,321,630 Total Portfolio $ 40,813,782 Investment Portfolio - Purchase Price $ 41,112,009 Investment Portfolio - Fair Value 12/31/25 40,813,782 Fair Value Adjustment - 06/30/25 (298,227) Fair Value Adjustment thru - 12/31/2025 297,622 Cummulative Change in Fair Value $16,000,000 $12,000,000 $8,000,000 $4,000,000 $0 Portfolio Liquidity Current Yield 0.01 % 5.05% 3.40% 3.54% Average Yield 3.84% 3.47% Liquidity 20 % Maturity 1 - 2 years Maturity over 2 years Minimum 30% Maximum OPolicy Minimum/Maximum MActual CITY OF KENAI Investments 12-31-25 COK CITY OF KENAI Page 100 INVESTMENTS 12(31/2026 Currentvear cos[or Unrealized Total DAYS AT SHARE WEIGHTED Maturity Maturity E..ected Call 07/01125 12131/25 G.I. Accrued EFFECT. DATE DATE In FROM MATURITY OF AVERAGE from Durch from today SECURITY or MatufM CUSIP orlalnal cost Market Value Market Value or Loss Interest RATE PURCH. DUE month�TODAV IPAR1 Interest TOTAL RATE USTN 3.7541IW26 Bullet 91282CGV] 4,582,463,69 4588.040.01 4.602.162.00 14.122,00 16.%4.29 3.750 11/27/2024 4/15/2026 17 105 - 11,276% 04228 USTN 3.504/30/W BUIIM 91282CG 1.118.452.15 1.118. t62.11 1.116.866.25 11.585.901 6.]43.]8 3.500 9I5I2025 VM2030 56 1581 2.]W% 00958 USTN 4.251131/26 Bullet 91282CJV4 3.0,1 335,43 2.999.191.47 3,001,200,00 2,008.53 53.3.98 4.250 11/27/2024 1/31/2026 14 31 - ].353% 0.3125 USTN 4.126 W31Y29 BUIIM 912:2CKG5 1.001.846.24 1.013.520.00 1.016.560.00 3.040.00 10.539A5 4.125 111271 024 W3112029 52 11N - 2491% 0.102] USTN 4.0007/3112029 BUIIM 91282CLC3 601.691.02 504.670.00 506.465.00 1.]95.00 8.369.5] 4.000 .12021 ]l31/2029 52 13. - 1241% 0.0496 USTN 4.12510131/29 BUIIM 91282CLR0 499.526,61 607.1 So 00 508555.00 1.40500 3.532.46 4.125 11/2712024 10/31/2029 59 1400 - 1 246% 0.0514 USTN 4,125 10131/26 USTN 4.1261111 W27 = BUIIM BUIIM T 91282CLSB 91282CLV 5.230,294.2 �.008.02 5.244.487,10 1.009.2%00 5.212.332.11 1.0, 1.4,0.00 ].84500 36.949.52 2.160,00 5355.66 4.125 11127/202410/31/2026 4.12511127120241111W2027 23 304 W 684 - 12,869% -� 2.4]8% 0.5308 0.1022 UST 3.]5051IW25 BUIIM 91282CND9 499.648.44 100.740.00 502,715,00 1.9]5,01 2.434.3: 3.650 5/1512025 Ill5/2028 36 S. - 1232% 0.0462 USTN 3.62508131/2030 UST3.7509130/2] BUIIM BUIIM 91M CNX5 91282CAL5 1.008.09544 1.509. 180.75 1.008.09544 1.579.180.76 996.450.00 1.58].648.75 111.645441 12.316.99 8.468.00 1.613.69 3.625 12123I2025 8131/2030 3.750 IW21I2025 WM202] 56 1]04 23 WS 2441% 3.890% �.631%- 0.ON 0.1459 UST 2.8250W31/2] BUIIM 91282CET4 1.464.809.38 1.464.609.38 1.482.0]5.00 1].465.62 3.461.54 3.625 ]/W2026 W31/202] 23 516 0.1316 USTN 3.501/31/W BUIIM 91282CGJ4 1.119.3]5.00 1.119.3375.00 1.118.542.50 1832501 16.4]].58 3.500 9IW2025 1/31/2030 53 1492 2.741% 0.0959 UST3.6263131/28 BUIIM 91282CGT2 1.011.141.21 1.023.23].00 1.02].]26.50 4.489.50 SAN 22 3.6251112712024 W311202: 40 821 - 2.518% 0.0913 UST3. 12511/15la BUIIM 9128285M8 984.]01.46 1.005.863.26 1.013.550.75 ].68].50 4.158.15 3.125111271202411I1W2028 48 fOw - 2.483% 0.On" FHLM 4.]5012I1W2029 BUIIM 31 MMW33 474,879.93 4]].550.75 476,862.00 1688.]51 814.76 4.]50 11712025121IW2029 59 1448 - 1.168% 0.0555 FHLM BUIIM 3130BBCN4 1.000.000.00 99].900.00 999.680.00 1.780.00 8.845.83 4.125 WW2025 WW2030 60 1584 - 2.449% 0.1010 FNMA 4.50009I25Y2028 BUIIM 3136GAVK2 1.008.666.67 1.008.866.6] 1.000.380.0' 18.286.611 9.8100 3.]5U 1.12021 W2W2028 33 999 - 2.451% 0.0919 FHLM4.50002I04/2030 BUIIM 313084ZA2 1.000.000.00 1.00].600.00 1.013.1f0.00 5.510.00 18.3]5.00 4.500 2/1412025 2/4/2030 60 14N - 2.482% 0.1117 FNA201 ]-M1 A2 FHR4543 VH Min. BUIIM BUIIM 3136AUG21 313]BMO58 122,897.97 193.143.36 124.]93.52 190.542.]0 126,499.51 192.731.95 1,705.99 258.21 2.189.25 485.42 3.223 SISI202210I25I2026 3.094 6/1W2022 W15/202] 54 296 60 0.310% 0.0100 0.0146- FHMSK05]AM BUIIM 313]BROK4 1,201,808.86 1.21 905 15 1,224,576.60 13,071.45 2,]00.53 3.357 8/16I2022 8l2/2026 48 23] 3.000% 0.1007 FHMS K064 A2 ' 19.680.86 W2�02] FN AN44]8 3138%QN1 2.261.299.25 2.,373.33 2.1]6.542'90.1 16,862.110 6.059.86 8193 212W2022 58 3669 0.1, FN BL449] BUIIM 3140HNK4 932,980.88 890,015.34 898,770.1. 8,755.24 2,038.35 2.137 3I2I2022 11/1/2026 56 305 2.202% 0.0471 FN BL5104 3140HXKS8 455.]50.89 455.452.66 460,400.31 4.94].65 1.000.67 3.158 W13I2022 V112027 56 39] 0.0356 G25122 Mtge BDIIM 36202FVP8 12,853.88 14,539.27 14,727.01 18].]4 43.10 0.8741V16I2021 7/2/2020 56 201 0.036% 0.0003 TOTAL 34,321,024.13 M,208,388.46 34,321,629.]] 113,241.31 262,770.10 3.562 a w greed tot"! - MO 3% 3..45 3.47 3.. FDIC Insured CD's CD-1=1110 0.000% 3.40 COF W10Y2] 3.40 UPS WJW 339M 14042TUK4 5649 2546]3041 245.NOW 245.0L� 244.676.60 240.]�'L5 245.901.60 242,888.10 1.225.00 3.286.36 2.089.85 3.149.42 3.400 W1012022 WIW2027 3.W0 W1812022 W16/202] 4.165.00 0.602% 4.165.00 0.595% 0.0205 0.3616959]3 3.536654381 0.0202 0.35]263425 3.529019806 TOTAL FDIC Insured CD's 490,000.00 485,474.85 488,789.70 3,314.85 6,435.78 3.400 490,000.00 0.000 WELLS MONEY MKT 43,993.]8 43,993.78 4$993.]8 2,142.62 5.050 1 1 43,993.]8 0.106% 0.0054 AML POOL -CBy ACCT Agreed to Amlip 4,1]9,258.47 4,179,258.47 4,179,258.4] 13,478.51 5.050 1 1 4,i19,258.41 10.240% 0.5171 0.102398217 0.10239821] Agreed to GL 39,034,2]6.36 38,917,115.56 39.033,671.72 116.5%.16 264.826.91 WF Cash Agreed to WF 1,780,109.79 1,780.109.79 1.780,109.79 - 0.010 1 1 1,780,109.79 4.362% 0.0004 0.043615409 0.043615409 TOTAL 40,814,386.17 40,697,225.35 10,813,78-1 116,556.16 284,826.91 6,983,362.04 100.000% 3.]20] MONTHS (604.66) 0.8649]3025 7.211687814 TOTAL CURRENT YIELD 3.]20]% 0.019]58049 M.WMi. Return Actual Difference 33.818.653.00 MMudly over 2 years 30%Mmdmui a 3:15% 11,297,463 946.6]1.,tS OK 3,742,289.00 2.09500561 Liquidity 20%Minimum 8,162,756.30 3.]624% 21,123,030 12,960,8]3.54 OK 8],494.00 MMudty 1-2y 3.4731% 8.392.689 488,523.00 3.7207% 40,813,782 36,179,161.76 955,]15.00 39,092,674.00 CITY OF KENAI PERMANENTFUND INVESTMENT PORTFOLIO SUMMARY June 30, 2024 Page 101 Current or Current Fair Market Value Average Portfolio Target Portfolio 31-Dec-24 31-Mar-25 30Jun-25 30-Sep-25 31-Dec-25 Yield Weight Weight Maximum Cash Cash& Cash Equivalents 1,932,083 1,278,221 1,386,022 1,449,189 1,908,837 4.78% 4.78% 3.00% 10.00% Fixed Income Investment Grade Government & Corporate Securities Government Securities 7,069,475 7,485,453 7,354,169 7,583,577 7,619,626 12.29% 19.08% Corporate Securities Investment Grade 2,165,812 2,186,555 2,102,590 2,177,904 2,230,868 26.70 % 5.59 % Total Investment Grade Government & Corporate Securities 9,235,287 9,672,008 9,456,759 9,761,481 9,850,494 15.89% 24.67% 26.00% 36.00% Domestic Fixed Income Exchange Traded Funds - Vanguard Short-term TIPS - - - 380,550 376,258 0.00% High Yield Domestic - SPDR Portfolio High Yield Bonds - - - - - 0.00% Vanguard Hi Yield Corporate Fund Admiral Shares 1,419,728 1,449,212 1,476,704 1,139,900 1,141,872 2.86% Total High Yield Domestic 1,419,728 1,449,212 1,476,704 1,139,900 1,141,872 2.86% 4.00% 8.00% Total Fixed Income 10,655,015 11,121,220 10,933,463 11,281,931 11,368,624 15.89% 27.53% 30.00% 44.00% Equities: Domestic Equities: Large -Cap Index 8,197,973 7,550,527 8,391,392 8,927,829 9,018,817 22.57% 22.00% 32.00% Small -Cap Index 1,786,564 1,662,186 1,876,359 1,822,377 2,011,332 5.04% 5.00% 10.00% Mid -Cap Index 3,721,439 3,387,568 3,748,303 3,783,710 3,826,614 9.58% 10.00% 18.00% Total Domestic Equities 13,705,976 12,600,281 14,016,054 14,533,916 14,856,763 37.19% 37.00% 60.00% International Equities: International Equity 2,925,345 3,057,638 2,947,006 3,105,617 3,182,092 7.97% 8.00% 16.00% Emerging Markets 1,891,372 1,871,949 1,898,029 2,054,265 2,094,777 5.24% 5.00% 10.00% Total International Equities 4,816,717 4,929,587 4,845,035 5,159,882 5,276,869 13.21% 13.00% 26.00% Real Estate: JP Morgan Beta Builders MSCI Reit 718,459 742,397 714,313 776,539 753,034 1.89% 2.000/6 4.00% Total Real Estate 718,459 742,397 714,313 776,539 753,034 1.89% 2.00% 4.00% Infrastructure - FlexsharesStoxxGlobalBroadlnfrastucture 1,827,700 1,920,853 1,845,942 2,145,485 1,888,661 4.73% 5.00% 10.00% Total Equities 21,068,852 20,193,118 21,421,344 22,615,822 22,775,327 57.02% 57.00% 100.00% 26,661,239.00 28,179,370.58 Alternative Beta: (1,518,131.58) Blackrock Systematic Multi -Strategy 955,055 931,232 911,668 954,513 949,933 2.38% IQ Hedge Multi -Strategy Tracker 562,683 1,257,848 1,289,503 1,362,082 1,377,648 3.45% JPMORGAN:HEDGED EQ 1 958,891 172,454 185,425 193,310 197,563 0.49% Calamos Market Neutral - 1,278,174 1,278,051 1,341,035 1,360,768 3.41% Core Alternative ETF 595,823 0.00% Total Alternative Beta 3,072,452 3,639,708 3,664,647 3,850,940 3,885,912 9.730/6 10.000/6 15.00% Total Portfolio 36,728,402 36,232,267 37,405,476 39,197,882 39,938,700 469% 99.060/6 100.000/6 169.000/6 Total ALSPF Balance 29,867,144 29,907,651 30,822,214 32,299,161 32,909,598 Total GLSPF Balance 3,842,103 3,847,313 3,993,293 4,184,645 4,263,732 39,938,702 Total Kenai Community Foundation 267,617 267,980 245,391 257,149 262,009 2 Total Kenai Senior Connection 1,312,757 1,314,537 1,395,014 1,461,861 1,489,490 Total Cone Memorial Trust Permanent Fund 893,574 894,786 949,565 995,067 1,013,873 Portfolio Composition 13�G zs.00 i ACiA�AAff� 0.00% Cash Fixetl Income Lalntleap S --Cap MA tleEquityarkets p x "t na aeal Estate. Infrasruc ure Beta. �Curtant P.-H. Waigh[ -Target PONoilq Waight oMaximum Porirdiq Weight Portfolio Performance ALASKA PERMANENT CAPITAL MANAGEMENT Registered Investment Adviser Page 103 r APCM Portfolio Composition ■ U.S. Treasuries 71.0% ■ MBS 17.4% ■ Agency 10.0% ■ CDs 1.4% Cash 0.1% Investment Performance ■ Gross Portfolio ■ Benchmark 6% 5.02 5.17 5.02 5.17 4.63 4.72 4% 2% 1.10 1.14 0.32 0.33 0% - - MTD QTD YTD 1YR ITD Performance is annualized for periods greaterthan one year. Inception to date performance begins November 06, 2024 Past performance is not indicativeof future results. CITY OF KENAI - CUSTODY I DECEMBER 2025 Risk Management Credit Rating Exposure 125% 100% 98.5 75% 50% 25% 0% — 0.1 0.7 0.7 AAA AA+ A+ NR Source: Clearwater Composite Rating Sector Exposure U.S. Treasuries 71.04% M BS 17.37% Agency 10.05% CDs 1.41% Cash 0.13% 3 1 TRUSTED ADVISORS • MORE EXPERTS • BETTER ACCESS Duration Exposure (Years) 60% 53.0 48% 36% 34.8 24% 12% 12.2 0% <1YR 1-3YRs 3-5YRs Top 10 Issuer Concentration United States 71.09% Federal National Mortgage Association 13.33% Federal Home Loan Mortgage Corporation 8.23% Federal Home Loan Banks 5.82% Capital One Financial Corporation 1.41% Allspring Group Holdings LLC 0.13% This a list of the Top 10 Issuer Concentration, but these are not the only issuer concentrations. A full list is available upon request. CITY OF KENAI - CUSTODY I DECEMBER 2025 Disclosures S&P 500 Total Return Index The S&P 5001 Index is the Standard & Poor's Composite Index and is widely regarded as a single gauge of large cap U.S. equities. It is market cap weighted and includes 500 leading companies, capturing approximately 80%coverage of available market capitalization. S&P MidCap 400 Total Return Index The S&P MidCap 400 Index, more commonly known as the S&P 400, is a stock market index from S&P Dow Jones Indices. The index serves as a barometer for the U.S. mid -cap equities sector and is the most widely followed mid -cap index. S&P Small Cap 600 Total Return Index The S&P SmallCap 6000 seeks to measure the small -cap segment of the U.S. equity market. The index is designed to track companies that meet specif c inclusion criteria to ensure that they are liquid and f nancially viable. MSCI EAFE Net Total Return USD Index The MSCI EAFE Index (Europe, Australasia, Far East) is a free float -adjusted market capitalization -weighted index that is designed to measure the equity market performance of developed markets, excluding the United States and Canada. The MSCI EAFE Index consists of the following 21 developed market countries: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland and the United Kingdom. MSCI Emerging Net Total Return USD Index The MSCI Emerging Markets Index is a free float -adjusted market capitalization -weighted index that is designed to measure equity market performance of emerging markets. The MSCI Emerging Markets Index consists of the following 26 emerging market country indices Argentina, Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Peru, Philippines, Poland, Qatar, Russia, Saudi Arabia, South Africa, Taiwan, Thailand, Turkey and United Arab Emirates. STOXX Global Broad Infrastructure Index Net Return USD The STOXX Global Broad Infrastructure Index is derived from the STOXX. Developed and Emerging Markets Total Market Index (TMI) and offers a diversif ed representation of companies that generate more than 50% of their revenue from selected infrastructure sectors. STOXX partnered with Revere Data, which def nes 17 subsectors for the infrastructure industry. These 17 subsectors are rolled into f ve supersectors - Communications, Energy, Government Outsourcing/Social, Transportation and Utilities. S&P USA REIT USD Total Return Index The S&P United States REIT Index def nes and measures the investable universe of publicly traded real estate investment trusts domiciled in the United States. Page 105 APCM Bloomberg Commodity Index Total Return The Bloomberg Commodity Index provides broad -based exposure to commodities, and no single commodity or commodity sector dominates the index. Rather than being driven by micro -economic events affecting one commodity market or sector, the diversif ed commodity exposure of the index potentially reduces volatility in comparison with non- diversif ed commodity investments. Wilshire Liquid Alternative Total Return Index The Wilshire Liquid Alternative Indexs" measures the collective performance of the f ve Wilshire Liquid Alternative strategies that make up the Wilshire Liquid Alternative Universe. Created in 2014, with a set of time series of data beginning on December 31,1999, the Wilshire Liquid Alternative Index (WLIQA) is designed to provide a broad measure of the liquid alternative market by combining the performance of the Wilshire Liquid Alternative Equity Hedge Index (WLIQAEH), Wilshire Liquid Alternative Global Macro Index (WLIQAGM), Wilshire Liquid Alternative Relative Value Index (WLIQARV), Wilshire Liquid Alternative Multi - Strategy Index (WLIQAMS), and Wilshire Liquid Alternative Event Driven Index (WLIQAED). Bloomberg US Agg Total Return Value Unhedged USD The Bloomberg U.S. Aggregate Index measures the performance of investment grade, U.S. dollar -denominated, f xed-rate taxable bond market, including Treasuries, government - related and corporate securities, MBS (agency f xed-rate and hybrid ARM pass-throughs), ABS, and CMBS. It rolls up into other flagship indices, such as the multi -currency Global Aggregate Index and the U.S. Universal Index, which includes high yield and emerging markets debt. Bloomberg VLI: High Yield Total Return Index Value Unhedged USD The BloombergVLI: High Yield Total Return Index is a component of the US Corp High Yield Index that is designed to track a more liquid component of the USD-denominated, high yield, f xed-rate corporate bond market. Bloomberg GLA xUSD Float Adj RIC Capped Index TR Index Value Hedged USD The Bloomberg Barclays Global Aggregate ex-USD Float -Adjusted RIC Capped Index is a customized subset of the Global Aggregate Index that meets the same diversif cation guidelines that a fund must pass to qualify as a regulated investment company (RIC). This multi -currency benchmark includes f xed-rate treasury, government -related, corporate and securitized bonds from developed and emerging markets issuers while excluding USD denominated debt. The Global Aggregate ex-USD Float Adjusted RIC Capped Index is largely comprised of two major regional aggregate components: the Pan -European Aggregate and the Asian-Pacif c Aggregate Index. FTSE 3 Month Treas Bill Local Currency The FTSE 3 Month US T Bill Index Series is intended to track the daily performance of 3 month US Treasury bills. The indices are designed to operate as a reference rate for a series of funds. 4 1 TRUSTED ADVISORS • MORE EXPERTS • BETTER ACCESS CITY OF KENAI - CUSTODY I DECEMBER 2025 Disclosures Bloomberg Muni 1-15 Year Blend (1-17) Total Return Index Value The Bloomberg Municipal 1-15 Year Index measures the performance of USD-denominated long-term, tax-exempt bond market with maturities of 1-15 years, including state and local general obligation bonds, revenue bonds, insured bonds, and prerefunded bonds. Bloomberg Intermediate US Govt/Credit TR Index Value Unhedged The Bloomberg U.S. Government Intermediate Index measures the performance of the U.S. Treasury and U.S. agency debentures with maturities of 1-10 years. It is a component of the U.S. Government/Credit Index and the U.S. Aggregate Index. Bloomberg 1-5 Yr Gov/Credit Total Return Index Value Unhedge The Bloomberg US 1-5 year Government/Credit Float -Adjusted Bond Index is a float - adjusted version of the US 1-5 year Government/Credit Index, which tracks the market for investment grade, US dollar -denominated, f xed-rate treasuries, government -related and corporate securities. FTSE High Dividend Yield Total Return Index The FTSE High Dividend Yield Index is designed to represent the performance of companies with relatively high forecast dividend yields WisdomTree U.S. MidCap Dividend Index Total Return The WisdomTree U.S. MidCap Dividend Index is a fundamentally weighted index that measures the performance of the mid -capitalization segment of the US dividend -paying market. The Index is comprised of the companies that compose the top 75% of the market capitalization of the WisdomTree U.S. Dividend Index after the 300 largest companies have been removed. The index is dividend weighted annually to reflect the proportionate share of the aggregate cash dividends each component company is projected to pay in the coming year, based on the most recently declared dividend per share. WisdomTree U.S. SmallCap Dividend Index Total Return The WisdomTree U.S. SmallCap Dividend Index is a fundamentally weighted index measuring the performance of the small -capitalization segment of the US dividend - paying market. The Index is comprised of the companies that compose the bottom 25% of the market capitalization of the WisdomTree U.S. Dividend Index afterthe 300 largest companies have been removed. The index is dividend weighted annually to reflect the proportionate share of the aggregate cash dividends each component company is projected to pay in the coming year, based on the most recently declared dividend per share. Bloomberg U.S. Long Government/Credit Unhedged USD The Bloomberg U.S. Government Credit Long Index measures the performance of the non- securitized component of the U.S. Aggregate Index with maturities of 10 years and greater, including Treasuries, government -related issues, and corporates. It is a subset of the U.S. Aggregate Index. Page 106 APCM Bloomberg Intermediate US Govt/Credit TR Index Value Unhedged The Bloomberg U.S. Government Credit Intermediate Index measures the performance of the non-securitized component of the U.S. Aggregate Index with maturities of 1-10 years, including Treasuries, government -related issues, and corporates. It is a subset of the U.S. Aggregate Index. Bloomberg Municipal Bond 5 Year (4-6) Total Return Index Unhedged USD An index designed to measure the performance of tax-exempt U.S. investment grade municipal bonds with remaining maturities between four and six years. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees. MSCI ACWI IMI Net Total Return USD Index The MSCI ACWI Investable Market Index (IMI) captures large, mid and small cap representation across 23 Developed Markets (DM) and 24 Emerging Markets (EM) countries. The MSCI AXWI IMI includes the following 23 developed market countries: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, United Kingdom, and United States. The MSCI AXWI IMI includes the following 24 emerging market countries:: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Kuwait, Malaysia, Mexico, Peru, Philippines, Poland, Qatar, Saudi Arabia, South Africa, Taiwan, Thailand, Turkey and United Arab Emirates. Bloomberg 1-3 Yr Gov Total Return Index Value Unhedged USD The Bloomberg U.S. Government/Credit 1-3 Year Index is an unmanaged index considered representative of performance of short-term U.S. corporate bonds and U.S. government bonds with maturities from one to three years. Bloomberg 1-5 Yr Gov TR Index Bloomberg Barclays Municipal 1-5 Yr TR USD includes all medium and larger issues of U.S. government, investment -grade corporate, and investment -grade international dollar - denominated bonds that have maturities of between 1 and 5 years and are publicly issued. ICE BofA US 3-Month Treasury Bill Index The ICE BofA 3 Month U.S. Treasury Index measures the performance of a single issue of outstanding treasury bill which matures closest to, but not beyond, three months from the rebalancing date. The issue is purchased at the beginning of the month and held for a full month; at the end of the month that issue is sold and rolled into a newly selected issue. Bloomberg US Treasury TIPS 0-5 Years Total Return Index Unhedged USD Bloomberg US Treasury Inflation -Protected Securities (TIPS) 0-5 Year Index is a market value -weighted index that measures the performance of inflation -protected securities issued by the US Treasury that have a remaining average life between 0 and 5 years. Bloomberg U.S. Treasury Bellwethers: 1 Yr The Bloomberg U.S. Treasury Bellwethers 1 Yr. Index is an unmanaged index representing the on -the -run (most recently auctioned) U.S. Treasury bond with 1 years' maturity. 5 1 TRUSTED ADVISORS • MORE EXPERTS • BETTER ACCESS Page 107 Chartered Financial Analyst® (CFA®) are licensed by the CFA® Institute to use the CFA® mark. CFA®certif cation requirements: Hold a bachelor's degree from an accredited institution or have equivalent education or work experience, successful completion of all three exam levels of the CFA® Program, have 48 months of acceptable professionaIwo rk experience in the investment decision -making process, fuIf II society requirements, which vary by society. Unless you are upgrading from affiliate membership, all societies require two sponsor statements as part of each application; these are submitted online by your sponsors. Page 108 Total ALSPF Balance $35,000,000 $33,000,000 $31,000,000 $29,000,000 $27,000,000 $25,000,000 Transfer of $1,094,116 $23,000,000 Transfer of $1,012,722 to Airport Operations. $21,000,000 to Airport Operations. Transfer of $1,028,4f:j- Airport Operations. $19,000,000 Transfer of �$9282510 Transfer of $1,025,736$17,000,000Airport Opeto Airport Operations. Transfer of $1,065,618 to Airport Operations. $15,000,000 1� ti� ti0 ti0 ti0 SeQ Oec titi titi I> titi titi titi titi titi ti3 ti� ti� ti3 Ile >�6 SeQ Oec; Ile I$p I$p SeQ Oec �e�' >-S SeQ Oec; tip tip tip tip der I$p SeQ by by ti5 by Total GLSPF Balance $4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 Transfer of $148,315 to General Fund Operations. Transfer of $146,180 to $1,500,000 General Fund Operations. $1,000,000 $500,000 Transfer of $137,239 to General Fund Opera in!: tio Transfer of $157,043 to --[Genera Fund Operations. Transfer of $153,684 to General Fund Operations. '1A ,ti0 .ti0 ,y0 .y0 e� a� �� eQ e� O IS` > S O .tit .tit ,y1 .t1 .y'L .y'L ,y'L ,t'L ,y3 ,y3 'L3 ,t3 a� o0 eQ e� a� oc eQ �� eQ e`' IS` > S O �S` > S O �S` > S O ,tip ,tip ,tib ,tip 0 o0 eQ e`' �S` > S O ,yh ,yh .yh ,yh a� �� eQ e� �S` > S O Total Kenai Community Foundation Balance $300,000 $250,000 $200,000 $150,000 $100,000 Transfer of $52,500 from cash $50,000 treasury account. c"tiy ec",ti-ti ti'ti `titi ec":,tig .ti3 `.y3 Oe Ct` >oo' SeQ" Oe C� >o� SeQ" Oe a�" 1p tib `tip CP >oo' SeQ" Oe ec" 1S tih `tiS >�� SeQ Oe Total Kenai Senior Connection Balance $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 Initial investment. `19 sec'.' ,tip Oe >o�`" ,tip SeQ" .ti0 het":• Oe �by by n> SeQDe �e�.:• oPti'ti "1ti ` tit lac":• on tih SeQ1S Oe`tih ac":• tip ,tip ,tip ec":• ti5 tiS `.tih Se" Oe Total Cone Memorial Trust Permanent Fund $1,200,000 $1,000,000 $800,000 $600,000 Initial investment. $400,000 $200,000 Received $47,000in trust proceeds 1°j ec":.ti0 Oet ll` >oc ,tip .ti0 ec•� SeQ" O� C�` .ti1 .ti'y .ti'L ec".ti'ti .ti'ti ,ti'ti ec":1S .y3 .ti3 >pn SeQ" Oec SeQSeQ Oec et".tip ,tip ,tip ec": >3 >pn SeQ" Oec CS` 1S 1S 1S >vn SeQ" Oec: ALASKA PERMANENT CAPITAL MANAGEMENT Registered Investment Adviser Page 110 r APCM Portfolio Composition ■ U.S. Fixed Income 24.7% ■ U.S. Large Cap Equity 22.0% ■ Alternative Beta 9.7% ■ U.S. Mid Cap Equity 9.6% Developed International Equity8.5% Emerging Market Equity 5.2% U.S. Small Cap Equity 5.0% Cash 4.9% ■ infrastructure4.7% ■ U.S. High Yield Fixed Income 3.8% ■ REITs 1.9% Investment Performance 15% 10% 5% 1.89 1.86 ■ Gross Portfolio 0 Benchmark 13.45 13.01 13.45 13.01 0% 0.36 0.28 _ M _ _ I MTD QTD YTD 1YR 7.79 7.90 11 ITD Performance is annualized for periods greaterthan one year. Inception to date performance begins October 0l, 2008 Past performance is not indicative of future results. CITY OF KENAI PERMANENT FUNDS I DECEMBER 2025 Page 111 Portfolio Summary and Target RISK CONTROL U.S. Fixed Income 9,854,690 24.7% 26% 6%to36% Cash 1,960,576 4.9% 3% 0% to 10% Risk Control Total 11,815,266 29.6% RISK ASSET U.S. High Yield Fixed Income 1,511,894 3.8% 4% 0% to 8% U.S. Large Cap Equity 8,790,953 22.0% 22% 12%to 32% U.S. Mid Cap Equity 3,826,760 9.6% 10% 0% to 18% U.S. Small Cap Equity 2,011,885 5.0% 5% 0% to 10% Developed International Equity 3,378,408 8.5% 8% 4% to 16% Emerging Market Equity 2,094,984 5.2% 5% 0% to 10% Risk Asset Total 21,614,884 54.1% ALTERNATIVES REITs 751,815 1.9% 2% 0% to 4% Alternative Beta 3,865,637 9.7% 10% 0% to 15% Infrastructure 1,884,314 4.7% 5% 0% to 10% Alternatives Total 6,501,766 16.3% TOTAL PORTFOLIO 39,931,916 100.0% We urge you compare the account statement we provide with the account statement you receive from your custodian. We cannot guarantee the accuracy of this information for tax purposes. Please verify all information from trade conf rmatlons. Past performance is not indicative of future results. 3 1 TRUSTED ADVISORS • MORE EXPERTS • BETTER ACCESS CITY OF KENAI PERMANENT FUNDS I DECEMBER 2025 Disclosures S&P 500 Total Return Index The S&P 5001 Index is the Standard & Poor's Composite Index and is widely regarded as a single gauge of large cap U.S. equities. It is market cap weighted and includes 500 leading companies, capturing approximately 80%coverage of available market capitalization. S&P MidCap 400 Total Return Index The S&P MidCap 400 Index, more commonly known as the S&P 400, is a stock market index from S&P Dow Jones Indices. The index serves as a barometer for the U.S. mid -cap equities sector and is the most widely followed mid -cap index. S&P Small Cap 600 Total Return Index The S&P SmallCap 6000 seeks to measure the small -cap segment of the U.S. equity market. The index is designed to track companies that meet specif c inclusion criteria to ensure that they are liquid and f nancially viable. MSCI EAFE Net Total Return USD Index The MSCI EAFE Index (Europe, Australasia, Far East) is a free float -adjusted market capitalization -weighted index that is designed to measure the equity market performance of developed markets, excluding the United States and Canada. The MSCI EAFE Index consists of the following 21 developed market countries: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland and the United Kingdom. MSCI Emerging Net Total Return USD Index The MSCI Emerging Markets Index is a free float -adjusted market capitalization -weighted index that is designed to measure equity market performance of emerging markets. The MSCI Emerging Markets Index consists of the following 26 emerging market country indices Argentina, Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Peru, Philippines, Poland, Qatar, Russia, Saudi Arabia, South Africa, Taiwan, Thailand, Turkey and United Arab Emirates. STOXX Global Broad Infrastructure Index Net Return USD The STOXX Global Broad Infrastructure Index is derived from the STOXX. Developed and Emerging Markets Total Market Index (TMI) and offers a diversif ed representation of companies that generate more than 50% of their revenue from selected infrastructure sectors. STOXX partnered with Revere Data, which def nes 17 subsectors for the infrastructure industry. These 17 subsectors are rolled into f ve supersectors - Communications, Energy, Government Outsourcing/Social, Transportation and Utilities. S&P USA REIT USD Total Return Index The S&P United States REIT Index def nes and measures the investable universe of publicly traded real estate investment trusts domiciled in the United States. Page 112 APCM Bloomberg Commodity Index Total Return The Bloomberg Commodity Index provides broad -based exposure to commodities, and no single commodity or commodity sector dominates the index. Rather than being driven by micro -economic events affecting one commodity market or sector, the diversif ed commodity exposure of the index potentially reduces volatility in comparison with non- diversif ed commodity investments. Wilshire Liquid Alternative Total Return Index The Wilshire Liquid Alternative Indexs" measures the collective performance of the f ve Wilshire Liquid Alternative strategies that make up the Wilshire Liquid Alternative Universe. Created in 2014, with a set of time series of data beginning on December 31,1999, the Wilshire Liquid Alternative Index (WLIQA) is designed to provide a broad measure of the liquid alternative market by combining the performance of the Wilshire Liquid Alternative Equity Hedge Index (WLIQAEH), Wilshire Liquid Alternative Global Macro Index (WLIQAGM), Wilshire Liquid Alternative Relative Value Index (WLIQARV), Wilshire Liquid Alternative Multi - Strategy Index (WLIQAMS), and Wilshire Liquid Alternative Event Driven Index (WLIQAED). Bloomberg US Agg Total Return Value Unhedged USD The Bloomberg U.S. Aggregate Index measures the performance of investment grade, U.S. dollar -denominated, f xed-rate taxable bond market, including Treasuries, government - related and corporate securities, MBS (agency f xed-rate and hybrid ARM pass-throughs), ABS, and CMBS. It rolls up into other flagship indices, such as the multi -currency Global Aggregate Index and the U.S. Universal Index, which includes high yield and emerging markets debt. Bloomberg VLI: High Yield Total Return Index Value Unhedged USD The BloombergVLI: High Yield Total Return Index is a component of the US Corp High Yield Index that is designed to track a more liquid component of the USD-denominated, high yield, f xed-rate corporate bond market. Bloomberg GLA xUSD Float Adj RIC Capped Index TR Index Value Hedged USD The Bloomberg Barclays Global Aggregate ex-USD Float -Adjusted RIC Capped Index is a customized subset of the Global Aggregate Index that meets the same diversif cation guidelines that a fund must pass to qualify as a regulated investment company (RIC). This multi -currency benchmark includes f xed-rate treasury, government -related, corporate and securitized bonds from developed and emerging markets issuers while excluding USD denominated debt. The Global Aggregate ex-USD Float Adjusted RIC Capped Index is largely comprised of two major regional aggregate components: the Pan -European Aggregate and the Asian-Pacif c Aggregate Index. FTSE 3 Month Treas Bill Local Currency The FTSE 3 Month US T Bill Index Series is intended to track the daily performance of 3 month US Treasury bills. The indices are designed to operate as a reference rate for a series of funds. 4 1 TRUSTED ADVISORS • MORE EXPERTS • BETTER ACCESS CITY OF KENAI PERMANENT FUNDS I DECEMBER 2025 Disclosures Bloomberg Muni 1-15 Year Blend (1-17) Total Return Index Value The Bloomberg Municipal 1-15 Year Index measures the performance of USD-denominated long-term, tax-exempt bond market with maturities of 1-15 years, including state and local general obligation bonds, revenue bonds, insured bonds, and prerefunded bonds. Bloomberg Intermediate US Govt/Credit TR Index Value Unhedged The Bloomberg U.S. Government Intermediate Index measures the performance of the U.S. Treasury and U.S. agency debentures with maturities of 1-10 years. It is a component of the U.S. Government/Credit Index and the U.S. Aggregate Index. Bloomberg 1-5 Yr Gov/Credit Total Return Index Value Unhedge The Bloomberg US 1-5 year Government/Credit Float -Adjusted Bond Index is a float - adjusted version of the US 1-5 year Government/Credit Index, which tracks the market for investment grade, US dollar -denominated, f xed-rate treasuries, government -related and corporate securities. FTSE High Dividend Yield Total Return Index The FTSE High Dividend Yield Index is designed to represent the performance of companies with relatively high forecast dividend yields WisdomTree U.S. MidCap Dividend Index Total Return The WisdomTree U.S. MidCap Dividend Index is a fundamentally weighted index that measures the performance of the mid -capitalization segment of the US dividend -paying market. The Index is comprised of the companies that compose the top 75% of the market capitalization of the WisdomTree U.S. Dividend Index after the 300 largest companies have been removed. The index is dividend weighted annually to reflect the proportionate share of the aggregate cash dividends each component company is projected to pay in the coming year, based on the most recently declared dividend per share. WisdomTree U.S. SmallCap Dividend Index Total Return The WisdomTree U.S. SmallCap Dividend Index is a fundamentally weighted index measuring the performance of the small -capitalization segment of the US dividend - paying market. The Index is comprised of the companies that compose the bottom 25% of the market capitalization of the WisdomTree U.S. Dividend Index afterthe 300 largest companies have been removed. The index is dividend weighted annually to reflect the proportionate share of the aggregate cash dividends each component company is projected to pay in the coming year, based on the most recently declared dividend per share. Bloomberg U.S. Long Government/Credit Unhedged USD The Bloomberg U.S. Government Credit Long Index measures the performance of the non- securitized component of the U.S. Aggregate Index with maturities of 10 years and greater, including Treasuries, government -related issues, and corporates. It is a subset of the U.S. Aggregate Index. Page 113 APCM Bloomberg Intermediate US Govt/Credit TR Index Value Unhedged The Bloomberg U.S. Government Credit Intermediate Index measures the performance of the non-securitized component of the U.S. Aggregate Index with maturities of 1-10 years, including Treasuries, government -related issues, and corporates. It is a subset of the U.S. Aggregate Index. Bloomberg Municipal Bond 5 Year (4-6) Total Return Index Unhedged USD An index designed to measure the performance of tax-exempt U.S. investment grade municipal bonds with remaining maturities between four and six years. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees. MSCI ACWI IMI Net Total Return USD Index The MSCI ACWI Investable Market Index (IMI) captures large, mid and small cap representation across 23 Developed Markets (DM) and 24 Emerging Markets (EM) countries. The MSCI AXWI IMI includes the following 23 developed market countries: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, United Kingdom, and United States. The MSCI AXWI IMI includes the following 24 emerging market countries:: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Kuwait, Malaysia, Mexico, Peru, Philippines, Poland, Qatar, Saudi Arabia, South Africa, Taiwan, Thailand, Turkey and United Arab Emirates. Bloomberg 1-3 Yr Gov Total Return Index Value Unhedged USD The Bloomberg U.S. Government/Credit 1-3 Year Index is an unmanaged index considered representative of performance of short-term U.S. corporate bonds and U.S. government bonds with maturities from one to three years. Bloomberg 1-5 Yr Gov TR Index Bloomberg Barclays Municipal 1-5 Yr TR USD includes all medium and larger issues of U.S. government, investment -grade corporate, and investment -grade international dollar - denominated bonds that have maturities of between 1 and 5 years and are publicly issued. ICE BofA US 3-Month Treasury Bill Index The ICE BofA 3 Month U.S. Treasury Index measures the performance of a single issue of outstanding treasury bill which matures closest to, but not beyond, three months from the rebalancing date. The issue is purchased at the beginning of the month and held for a full month; at the end of the month that issue is sold and rolled into a newly selected issue. Bloomberg US Treasury TIPS 0-5 Years Total Return Index Unhedged USD Bloomberg US Treasury Inflation -Protected Securities (TIPS) 0-5 Year Index is a market value -weighted index that measures the performance of inflation -protected securities issued by the US Treasury that have a remaining average life between 0 and 5 years. Bloomberg U.S. Treasury Bellwethers: 1 Yr The Bloomberg U.S. Treasury Bellwethers 1 Yr. Index is an unmanaged index representing the on -the -run (most recently auctioned) U.S. Treasury bond with 1 years' maturity. 5 1 TRUSTED ADVISORS • MORE EXPERTS • BETTER ACCESS Page 114 Chartered Financial Analyst® (CFA®) are licensed by the CFA® Institute to use the CFA® mark. CFA®certif cation requirements: Hold a bachelor's degree from an accredited institution or have equivalent education or work experience, successful completion of all three exam levels of the CFA® Program, have 48 months of acceptable professionaIwo rk experience in the investment decision -making process, fuIf II society requirements, which vary by society. Unless you are upgrading from affiliate membership, all societies require two sponsor statements as part of each application; these are submitted online by your sponsors. NOTICE OF PUBLIC HEARING FEBRUARY 04, 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. Ordinance No. 3500-2026 - Sunsetting the Harbor Commission, Amending Kenai Municipal Code 1.90.010 - General Standards for Standing Advisory Commissions, Repealing Kenai Municipal Code 1.95.040 - Harbor Commission, Repealing Kenai Municipal Code 11.20 - Leasing of Tidelands, Amending Kenai Municipal Code 14.05.010 - Duties and Powers, Enacting Kenai Municipal Code 22.05.016 - Tidelands Available for Leasing, Enacting Kenai Municipal Code Chapter 22.10 - Tideland Leases for Shore Fisheries, and Amending Council Policy 20.020 to Reflect the Sunsetting of The Harbor Commission. (Administration) 2. Ordinance No. 3501-2026 - Determining Four City -Owned Properties in the Beaver Loop Area are Not Needed for a Public Purpose and Authorizing Sale by Public Sealed Bid Auction. (Administration) 3. Ordinance No. 3502-2026 - Authorizing the City Manager to Reimburse Annual Leave Used by Firefighter Garrick Martin for Attending a Paramedic Internship Program. (Administration) 4. Ordinance No. 3503-2026 - Increasing Estimated Revenues and Appropriations in the Water & Sewer Capital Project Fund and Accepting a Loan from the State Revolving Fund Program for the Water Treatment Pumphouse Project. (Administration) 5. Resolution No. 2026-10 - Authorizing the Use of the Equipment Replacement Fund for the Purchase of a New Trackless MT7 with Snow Blower Attachment. (Administration) 6. Resolution No. 2026-11 - Designating the Investment and Allocation Plan for the City's Permanent Funds and Establishing Appropriate Benchmarks to Measure Performance for Calendar Year 2026. (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/or r�utam may be amended by the Council prior to adoption without further public notice. aner, M , City Clerk Posted: January 30, 2026 �ONA/ n ® a�s•ursA s•j°�$ 4Aa CITY OF KENAI City Council K E N A I Notice of Meeting City Hall Council Chambers, 210 Fidalgo Ave, Kenai, AK The Kenai City Council will hold a regular meeting on February 4, 2026, beginning at 6:00 p.m. Visit the City Meeting web page for information regarding this meeting: 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.city. Shellie Saner, MMC, City Clerk Publish: 01 /30/2026 CERTIFICATE OF PUBLICATION & POSTING I, Shellie Saner, City Clerk of the City of Kenai, do hereby certify that on the 22nd day of January 2026,1 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 30, 2026 edition of their newsparand he 30th day of January, 2026, the Notice of Public Hand II meeting agenda was posted at Kenai iftty Fdaln the internet at www.kenai.city. Saner, 'MM_QCity Clerk FEBRUARY 04, 2026 CITY COUNCIL MEETING ADDITIONAL MATERIAL/REVISIONS REQUESTED ADDITIONS TO THE PACKET: ACTION ITEM REQUESTED BY PAGE Add to item E. 2. Public Hearing - Ordinance No. 3501-2026 Administration Amendment Memo L I000, City of Kenai MEMORANDUM K E N 4 210 Fidalgo Ave, Kenai, AK 99611-7794 1907.283.75351 www.kenai.city TO: Mayor Knackstedt and Council Members FROM: Terry Eubank, City Manager DATE: February 2, 2026 SUBJECT: Ordinance No. 3501-2026 — Requested Amendment During preparation of the sealed bid auction brochure for the Beaver Loop parcels, the Administration identified a need for additional clarification regarding the intended use of the properties in the proposed ordinance. While the ordinance authorizes sale by public sealed bid auction, it does not explicitly state that the purpose of the sale is to make the gravel resources available for extraction, subject to applicable zoning and permitting requirements. Without this clarification, the City could receive bids from parties who do not intend to develop the gravel resources, which would be inconsistent with the basis on which the parcels were evaluated, subdivided, and priced. The City's actions leading to this proposed sale have been focused on gravel resources, including completion of a soils and engineering evaluation confirming the presence of marketable gravel, subdivision of parcels containing gravel resources from wetland areas, Planning and Zoning Commission action in January 2025 supporting that subdivision, and establishment of minimum bids based on estimated gravel quantities. Adding clear language in the ordinance stating that the intended use of the parcels is gravel extraction would provide clarity to bidders, help ensure the auction functions as intended, and support placing the gravel resources into productive use for local construction, infrastructure, and economic development. It is recommended that the ordinance be amended to include an additional WHEREAS clause stating that the City's intent that the parcels be sold for gravel extraction purposes only, subject to applicable permitting requirements. The following amendment is respectfully requested. Motion 1 Amend the ordinance by adding an additional WHEREAS clause after the existing 51" WHEREAS: WHEREAS, the City's intent in offering these parcels for sale is to facilitate gravel extraction, and the properties are being made available for that purpose exclusively, subject to all applicable zoning, permitting, and regulatory requirements; and, Thank you for your consideration. E. CITY OF KENAI NOTICE OF ORDINANCES AND RESOLUTIONS ADOPTED AT THE FEBRUARY 04, 2026 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. PUBLIC HEARINGS 1. ENACTED UNANIMOUSLY. Ordinance No. 3500-2026 - Sunsetting the Harbor Commission, Amending Kenai Municipal Code 1.90.010 - General Standards for Standing Advisory Commissions, Repealing Kenai Municipal Code 1.95.040 - Harbor Commission, Repealing Kenai Municipal Code 11.20 - Leasing . of Tidelands, Amending Kenai Municipal Code 14.05.010 - Duties and Powers, Enacting Kenai Municipal Code 22.05.016 - Tidelands Available for Leasing, Enacting Kenai Municipal Code Chapter 22.10 - Tideland Leases for Shore Fisheries, and Amending Council Policy 20.020 to Reflect the Sunsetting of The Harbor Commission. (Administration) 2. ENACTED UNANIMOUSLY AS AMENDED. Ordinance No. 3501-2026 - Determining Four City -Owned Properties in the Beaver Loop Area are Not Needed for a Public Purpose and Authorizing Sale by Public Sealed Bid Auction. (Administration) 3. ENACTED UNANIMOUSLY. Ordinance No. 3502-2026 - Authorizing the City Manager to Reimburse Annual Leave Used by Firefighter Garrick Martin for Attending a Paramedic Internship Program. (Administration) 4. ENACTED UNANIMOUSLY. Ordinance No. 3503-2026 - Increasing Estimated Revenues and Appropriations in the Water & Sewer Capital Project Fund and Accepting a Loan from the State Revolving Fund Program for the Water Treatment Pumphouse Project. (Administration) 5. ADOPTED UNANIMOUSLY. Resolution No. 2026-10 - Authorizing the Use of the Equipment Replacement Fund for the Purchase of a New Trackless MT7 with Snow Blower Attachment. (Administration) 6. ADOPTED UNANIMOUSLY. Resolution No. 2026-11 - Designating the Investment and Allocation Plan for the City's Permanent Funds and Establishing Appropriate Benchmarks to Measure Performance for Calendar Year 2026. (Administration) Llygan Parks, Deputy City Clerk Posted: February 05, 2026 A ��. aa� •ss N 1 .> Not �� E D _...enai 1 210 Fidalgo Ave, Kenai, AK 99611-7794 1907.283.75351 www.kenaixity MEMORANDUM TO: City Council Members FROM: Henry Knackstedt, Mayor DATE: January 23, 2026 SUBJECT: Action/Approval - Council Confirmation of Mayoral Nominations of Scott Bremer to the Airport Commission. A vacancy currently exists on the Airport Commission; an application for a partial term on the Lessee seat has been received and is attached for consideration. Pursuant to Kenai Municipal Code 1.90.010 members are nominated by the Mayor and confirmed by the City Council. Council confirmation of the following appointment is requested: • Scott Bremer - Airport Commission partial term ending on December 31, 2026. Your consideration is appreciated. APPROVED BY COUNCIL Date: D 2 - 0 y - 7-02'(o z m m D O X z D c r G) D G) v �m m X CO) c U) n U D C) d m p z m' O O DI c c Cl) U m z c r D D n r_ oo n r C m z D PD OD co w 00 C w CA)-1 n O c z n r 3 m m z O O m m m W c a N O N O