HomeMy WebLinkAbout2026-02-12 Airport Commission - PacketKenai Airport Commission
Regular Meeting
February 12, 2026 - 6:00 PM
Kenai City Hall - Council Chambers
KENAI210 Fidalgo Ave., Kenai, AK 99611
*Telephonic/Virtual Information on Page 2*
Agenda
A. CALL TO ORDER
1. Pledge of Allegiance
2. Roll Call
3. Agenda Approval
B. SCHEDULED PUBLIC COMMENTS (Public comments limited to ten (10) minutes per speaker)
1. HDL Engineering - Discussion on 2026 Runway Reconstruction Project
C. UNSCHEDULED PUBLIC COMMENT (Public comments limited to three (3) minutes per speaker;
thirty (30) minutes aggregated)
D. APPROVAL OF MINUTES
1. January 8, 2026 Regular Meeting Minutes............................................................. 3
E. UNFINISHED BUSINESS
1. Discussion/Recommendation - 2026 Annual Work Plan Goals ............................. 6
F. NEW BUSINESS
1. Discussion/Recommendation - Special Use Permit to Rainbow River Lodge Aviation, LLC ... 13
2. Discussion/Recommendation - Second Extension to the Airport Security Contract ................ 24
G. REPORTS
1. Airport Manager
2. Commission Chair
3. City Council Liaison............................................................................................... 28
H. ADDITIONAL PUBLIC COMMENTS (Public comments limited to five (5) minutes per speaker)
I. NEXT MEETING ATTENDANCE NOTIFICATION - March 12, 2026
J. COMMISSIONER COMMENTS AND QUESTIONS
K. ADJOURNMENT
L. INFORMATION ITEMS
1. Calendar Year 2025 Enplanements.................................................................. • • • • • 33
2. Kenai Strategy Update: January 2026 Volaire Aviation Consulting Presentation to Council ... 34
3. Kenai Airport Master Plan Update - Notice of Public Meeting ............................. 78
Airport Commission Page 1 of 2
February 12, 2026
Fil
4. December 2025 Airport Mid -month Report .................................................... 79
Registration is required to join the meeting remotely through Zoom. Please use the link below to register:
https://us02web.zoom.us/meeting/register/LCAWLJhJQzSN-nqq 3Ui-w
The agenda and agenda items are posted on the City's website at www.kenai.city. Copies of the agenda items are
available at the City Clerk's Office or outside of Council Chambers prior to the meeting. Please contact the Airport
Manager at 907-283-7951 for additional details.
**COMMISSIONERS, PLEASE CONTACT US IF YOU WILL NOT BE ABLE TO ATTEND THE MEETING"
Airport Commission Page 2 of 2
February 12, 2026 ❑
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KENAI AIRPORT COMMISSION — REGULAR MEETING
JANUARY 08, 2026 — 6:00 P.M.
KENAI CITY COUNCIL CHAMBERS
210 FIDALGO AVE., KENAI, AK 99611
CHAIR GLENDA FEEKEN, PRESIDING
MINUTES
A. CALL TO ORDER
A Regular Meeting of the Airport Commission was held on January 8, 2026, in the Kenai City Council
Chambers, Kenai, AK. Chair Feeken called the meeting to order at approximately 6:00 p.m.
1. Pledge of Allegiance
Chair Feeken led those assembled in the Pledge of Allegiance.
2. Roll Call
There were present:
Glenda Feeken, Chair Paul Minelga, Vice Chair
James Bielefeld Cody Whicker
Dan Knesek James Zirul
A quorum was present.
Also in attendance were:
Mary Bondurant, Interim Airport Manager
Julie Semmens, Airport Administrative Assistant
Shellie Saner, City Clerk
Victoria Askin, City Council Liaison
3. Election of Chair and Vice Chair
MOTION:
Vice Chair Minelga MOVED to reappoint Glenda Feeken as Chair.
There being no objection; SO ORDERED.
MOTION:
Commissioner Zirul MOVED to reappoint Paul Minelga as Vice Chair.
There being no objection; SO ORDERED.
4. Agenda Approval
MOTION:
Commissioner Zirul MOVED to approve the agenda as presented. Commissioner Bielefeld SECONDED
the motion.
VOTE: There being no objection; SO ORDERED.
B. SCHEDULED PUBLIC COMMENTS
1. HDL Engineering - Updates on Airport Projects
Airport Commission Meeting Page 1 of 3 January 08, 2026 3
Erik Jordt, Civil Engineer with HDL Engineering, provided an update on the Airport Runway Rehabilitation
project. He explained the primary runway will be closed during construction; Taxiway Alpha will serve as
the temporary runway. Alpha would be painted with runway markings and would have runway lighting.
Commission members stated concerns regarding there being no approaches available during
construction and shutting down of the navigational aids.
C. UNSCHEDULED PUBLIC COMMENTS - None.
D. APPROVAL OF MINUTES
1. November 13, 2025 Regular Meeting Minutes
MOTION:
Commissioner Zirul MOVED to approve the November 13, 2025 Airport Commission minutes.
Commissioner Minelga SECONDED the motion.
VOTE: There being no objection; SO ORDERED.
E. UNFINISHED BUSINESS - None.
F. NEW BUSINESS
1. Discussion - 2025 Work Plan Report
It was noted that the Commission's preference was for Taxiway Sierra to be moved up on the Capital
Improvement Plan, as it was directly tied to the Westside Hangar Subdivision goals. The Airport Master
Plan was discussed, including HDL Engineering's kickoff meeting.
Commission members noted that the development of goals was outside of the Commission's
responsibility due to its advisory role and lack of authority to initiate action.
2. Discussion - 2026 Annual Work Plan Goals
Commissioners discussed to move the 2025 goals to 2026.
G. REPORTS
1. Airport Manager - Interim Airport Manager Bondurant reported on the following:
• Alaska Airlines diverted a 76-passenger aircraft to Kenai due to Anchorage wind shear; TSA
authorized controlled deplaning into the terminal
• Lease lot inspections are ongoing.
• TSA staff credentials and the Airport Certification Manual were updated to reflect new
aircrafts operating at Kenai.
• Staff received a request from the control tower for C-17 lights -out operations; Commission
advised this should occur when the tower is open and raised safety concerns regarding
navigation lights.
• Jack Penning, Managing Partner of Volaire Aviation Consulting, is scheduled to present to
City Council regarding the Air Service Development Grant.
• Fiscal Year 2027 budget documents are in preparation and expected to be submitted to
Finance around February 13.
2. Commission Chair - No report.
3. City Council Liaison - Vice Mayor Askin reported on recent actions of the City Council.
H. ADDITIONAL PUBLIC COMMENTS - None.
Airport Commission Meeting Page 2 of 3
January 08, 2026 4
I. NEXT MEETING ATTENDANCE NOTIFICATION - February 12, 2026.
J. COMMISSION QUESTIONS AND COMMENTS
There was discussion on Airport Manager recruitment.
K. ADJOURNMENT
L. INFORMATIONAL ITEMS
1.
October 2025 Midmonth Report
2.
November 2025 Midmonth Report
3.
Lynden December 2025 Newsletter
4.
Pet Relief Signage - Pictures
5.
Enplanement Report
There being no further business before the Airport Commission, the meeting was adjourned at 6:45 p.m.
I certify the above represents accurate minutes of the Airport Commission meeting of January 08, 2026.
Logan Parks, Deputy City Clerk
Airport Commission Meeting Page 3 of 3
January 08, 2026
151
•
City of Kenai
MEMORANDUM
210 Fidalgo Ave, Kenai, AK 99611-7794 1907.283.7535 1 www.6nai.city
TO: Airport Commission
FROM: Mary Bondurant, Airport Manager, Interim
DATE: February 2, 2026
SUBJECT: 2026 Airport Commission Annual Work Plan
At the January 8, 2026 Airport Commission meeting, Commission was asked to develop an
annual workplan for 2026. The purpose of the work plan 1) documents that the work plan of the
Commission aligns with the assigned role, plans, policies, and procedures of the City, and 2)
ensures that Council and Administration are aware of the work intended for the year ahead.
Commission members discussed the three goals from 2025 and recommended moving the same
three goals to the 2026 Annual Work Plan.
Does Commission recommend Council approve the 2026 Annual Work Plan?
Attachments: Goals 1,2 & 3
In-
,�C/ K I N A I COMMISSION ANNUAL WORK PLAN
INTRODUCTION
This area should include the advisory body's missions' statement and include a brief description of the overall purpose of the commission.
Note: Work plans developed by the advisory body will be submitted to the City Council for approval,- therefore, it is a good idea to align the goals and objectives with city code, policy and
the City of Kenai Comprehensive Plan.
Instructions: In the space provided below, identify an issue or goals (objective) your commission would like to address in the upcoming year, the information provided
should include plans on how to address those issues. This item should include information regarding additional staff resources and/or community volunteers needed;
funding resources, are funds available in the budget if not are you proposing council include funding in the upcoming budget cycle; and how long is it expected to obtain
the objective. Pease prioritize the objectives of your group with number one (1) being the top priority (objective number).
GOAL OR OBJECTIVE 5'- COLLABORATION P- FUNDING RESOURCES Ir- TIME TO COMPLETE
Objective No. 1 Objective: Construction of Taxiway Sierra Estimated Time to Complete: Unknown
Strategy: (Provide a summary of tasks which need to be done to obtain the objective.)
We (Airport Commission) strongly support, design and construction of Taxiway Sierra remain in the Capital Improvement Budget or move to an earlier FY CIP
Budget.
One necessary aspect of this review is to determine what work has been accomplished to meet this goal in accordance with the Airport Master Plan.
Narrative: (Describe the benefits to the residents and visitors of the City.)
The Kenai Municipal Airport is a for profit entity, in the sense that the airport needs to generate income to maintain the airport facilities and surrounding grounds. The
Airport Master Plan identifies the west side of the airport as a source of income for activities such as user fees, fuel sales and lease properties. The construction of
Taxiway Sierra is essential to the access of the west side of the airport.
Annual Commission Work Plan City
'�Cv K I N A I COMMISSION ANNUAL WORK PLAN
Collaboration: (Who needs to be involved to obtain the objective?)
Kenai Airport Manager, Kenai City Manager, Kenai City Attorney, Kenai City Council and the Kenai Airport Commission.
Funding: (Are funds available, or is funding needed in a future budget?)
Funding source needs to be identified and budgeted for.
Annual Commission Work Plan City
,�C/ K I N A I COMMISSION ANNUAL WORK PLAN
INTRODUCTION
This area should include the advisory body's missions' statement and include a brief description of the overall purpose of the commission.
Note: Work plans developed by the advisory body will be submitted to the City Council for approval,- therefore, it is a good idea to align the goals and objectives with city code, policy and
the City of Kenai Comprehensive Plan.
Instructions: In the space provided below, identify an issue or goals (objective) your commission would like to address in the upcoming year, the information provided
should include plans on how to address those issues. This item should include information regarding additional staff resources and/or community volunteers needed;
funding resources, are funds available in the budget if not are you proposing council include funding in the upcoming budget cycle; and how long is it expected to obtain
the objective. Pease prioritize the objectives of your group with number one (1) being the top priority (objective number).
GOAL OR OBJECTIVE 5'- COLLABORATION P- FUNDING RESOURCES Ir- TIME TO COMPLETE
Objective No. 2 Objective: West Side Hangar subdivision Estimated Time to Complete: Unknown
Strategy: (Provide a summary of tasks which need to be done to obtain the objective.)
Westside development directly related to taxiway Sierra project. They will review funding sources, the timeline when this is available, and make recommendations.
Narrative: (Describe the benefits to the residents and visitors of the City.)
The Kenai Municipal Airport Terminal seeks to be financially stable. This could generate additional revenue for the airport and allow for more use.
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Annual Commission Work Plan City
'�Cv K I N A I COMMISSION ANNUAL WORK PLAN
Collaboration: (Who needs to be involved to obtain the objective?)
Kenai Airport Manager, City Manager, City Attorney, City Council, and Airport Commission
Funding: (Are funds available, or is funding needed in a future budget?)
Funding sources for supporting infrastructure such as taxiways would be through AIP entitlements and discretionary funding. Airport Manager to research funding
opportunities for hangars.
Annual Commission Work Plan
,�C/ K I N A I COMMISSION ANNUAL WORK PLAN
INTRODUCTION
This area should include the advisory body's missions' statement and include a brief description of the overall purpose of the commission.
Note: Work plans developed by the advisory body will be submitted to the City Council for approval,- therefore, it is a good idea to align the goals and objectives with city code, policy and
the City of Kenai Comprehensive Plan.
Instructions: In the space provided below, identify an issue or goals (objective) your commission would like to address in the upcoming year, the information provided
should include plans on how to address those issues. This item should include information regarding additional staff resources and/or community volunteers needed;
funding resources, are funds available in the budget if not are you proposing council include funding in the upcoming budget cycle; and how long is it expected to obtain
the objective. Pease prioritize the objectives of your group with number one (1) being the top priority (objective number).
GOAL OR OBJECTIVE 5'- COLLABORATION P- FUNDING RESOURCES Ir- TIME TO COMPLETE
Objective No. 3 Objective: Airport Master Plan- Update
Strategy: (Provide a summary of tasks which need to be done to obtain the objective.)
Estimated Time to Complete: TBD
The Airport Commission will assist HDL Engineering, providing input as they update the Kenai Airport Master Plan. Our guiding principal will be ensuring the Kenai Airport
Master Plan reflects the needs of the community and compliments the vision the City of Kenai has for the airport.
Narrative: (Describe the benefits to the residents and visitors of the City.)
The Kenai Municipal Airport is the commercial aviation gateway to the City of Kenai and the Greater Kenai Peninsula. Moreover, the airport is a for profit entity, in the
sense that it needs to generate income to maintain the airport facilities and surrounding grounds. As the Kenai Peninsula grows, the airport will have to grow along with it.
The Airport Master Plan is a document that is a touchstone and a guide, linking the current and future needs of the flying public to the City of Kenai's Imagine Kenai 2030
comprehensive plan and ensuring that it remains a financially viable entity.
Annual Commission Work Plan
Jtv KENAI COMMISSION ANNUAL WORK PLAN
Collaboration: (Who needs to be involved to obtain the objective?)
HDL Engineering, Kenai Airport Manager, Kenai City Manager, Kenai City Attorney, Kenai City Council and the Kenai Airport Commission.
Funding: (Are funds available, or is funding needed in a future budget?)
FAA Grant money and City of Kenai.
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Annual Commission Work Plan
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City of Kenai
MEMORANDUM
K E N 4
210 Fidalgo Ave, Kenai, AK 99611-7794 1907.283.75351 www.kenai.city
TO: Airport Commission
FROM: Mary Bondurant, Airport Manager, Interim
DATE: February 2, 2026
SUBJECT: Special Use Permit — Rainbow River Lodge Aviation, LLC
Chris Hartis of Rainbow River Lodge Aviation, LLC is requesting to conduct a commercial
operation transporting patrons in and out of the float plane basin.
The term of the Permit shall be for five (5) months from June 1, 2026 through October 31, 2026,
or the closing date deemed necessary by Airport management due to icing in the water.
Mr. Hartis will provide the Airport with a Certificate of Insurance and payment of all fees prior to
the start of the operation.
Does Commission recommend Council approve a Special Use Permit to Rainbow River
Lodge Aviation, LLC?
Attachment — Special Use Permit
SPECIAL USE PERMIT
The CITY OF KENAI (City) grants to Rainbow River Lodge Aviation, LLC (Permittee),
whose address is 415 E. Falls Dr., Alpine, UT 84004, a Special Use Permit to conduct
aeronautical and/or aviation -related activities at the Kenai Municipal Airport subject to the
requirements and the conditions set forth below.
1. Premises. Permittee shall have the right to use commercial float plane basin parking
spot ( ) as described in the attached Exhibit A for the uses identified in this Permit.
2. Term. The term of this Permit shall be for five months commencing on June 1, 2026
and ending on October 31, 2026, or the closing date deemed necessary by Airport
Management for weather conditions. Regardless of the date of signature, this Permit shall be
effective as of June 1, 2026.
3. Permit Fees. Permittee shall pay the following fees for the privileges extended to
Permittee under this Permit:
A. Permit: Permittee shall pay a seasonal fee plus applicable sales tax as follows:
June — October 2026 $300.00
Parking $25.00
B. Proximity Card for Gate Access: In addition to the general permit fee,
Permittee shall pay a deposit of one hundred dollars ($100.00) for the use of each
proximity card issued to Permittee by City to allow for gate access to the Airport to
conduct the uses permitted hereunder. City shall refund this deposit to Permittee
when the card is returned to City. City may exercise a right of offset to apply the
deposit to any outstanding balance due to City from Permittee at the termination of
this Permit.
C. Other Fees: City may assess additional fees for aviation or aviation support
activities and uses not defined in this Permit. If a fee has not been established for
those activities or services, a fee will be established by the Airport Manager.
Payment shall be directed to City of Kenai, ATTN: Finance Department, 210 Fidalgo
Avenue, Kenai, AK 99611 and a courtesy notice of payment provided to Airport
Administration at 305 North Willow Street, Suite 200, Kenai, AK 99611. All permit fees
are payable in advance of each month unless otherwise provided. In the event of
delinquency, interest at the rate of ten percent (10%) per annum, and penalty of ten percent
(10%) shall also be due (KMC 1.75.010). Interest shall accrue from the date due until the
date paid in full. Failure to timely make payments is grounds for termination of this Permit.
(See ¶ 22, Termination)
Special Use Permit —Rainbow River Lodge Aviation, LLC (Float Plane Basin) Page 1 of 8
F14
4. Use. City authorizes Permittee's non-exclusive use of the Premises for the
following purpose(s):
Part 135 Commercial Operation with One Aircraft. NOTE: This permit does not
guarantee the exclusive use of the area identified in Exhibit A. City reserves the right to
re -assign Permittee, upon reasonable notice, to other areas as airport needs may require.
Permittee shall have the right of ingress and egress to the Airport using only designated
gate access locations (which may require a proximity card) for the use of the Premises.
This Permit, and any access rights allowed hereunder, are for Permittee's use only and may
not be transferred or assigned. All passengers will be transported to and from the aircraft
and be under escort at all times by the permittee.
Use of the Premises by Permittee is subject to the reasonable administrative actions of the
City of Kenai for the protection and maintenance of the Premises and of adjacent and
contiguous lands or facilities and is further subject to the following conditions:
Permittee acknowledges that the use granted herein is subject to the Kenai Municipal Code
and municipal regulations governing the Kenai Municipal Airport and as those laws and
regulations ma be amended from time to time.
Solicitation of donations or operation of a business or other commercial enterprise not
contemplated by this Permit is prohibited without the written consent of City.
No person may repair an aircraft. aircraft engine, propeller, or apparatus in an area of the
Ai ort other than that specifically designated for that pmose by the A' ort Manager or
designated representative. The Airport Manager or designated representative reserves the
right to designate reasonable areas where aircraft owners mqy perform services on their
own aircraft.
5. Airport Operations. Permittee shall ensure that the Permittee, its employees, and
guests, and anyone else acting by, on behalf of, or under the authority of Permittee on the
Airport, that perform any repairs or activities authorized under this Permit act in a manner
that ensures the safety of people and the Airport, the protection of public health and the
environment, and the safety and integrity of the Airport and any premises on the Airport.
Permittee shall employ qualified personnel and maintain equipment sufficient for the
purposes of this provision. The Permittee shall immediately notify City of any condition,
problem, malfunction, or other occurrence that threatens the safety of the Airport, the safety
of persons using the Airport, the public health or the environment, or the safety or integrity
of any premises on the Airport.
Special Use Permit —Rainbow River Lodge Aviation, LLC (Float Plane Basin) Page 2 of S
t he
6. Inspection. The Federal Aviation Administration (FAA) and/or City shall have the
right and authority to inspect, at any time for any purpose whatsoever, the Premises as well
as any and all equipment used by the Permittee under this Permit.
7. Coordination with Airport Management. Permittee shall abide by all reasonable
decisions and directives of the Airport Management regarding general use of the Airport
by Permittee germane to a commercial entity.
S. Radio Transmitting Equipment. Permittee shall discontinue the use of any
machine or device which interferes with any government -operated transmitter, receiver, or
navigation aid until the cause of the interference is eliminated.
9. Insurance. Permittee shall secure and keep in force adequate insurance, as stated
below, to protect City and Permittee. Where specific limits are stated, the limits are the
minimum acceptable limits. If Perrnittee's insurance policy contains higher limits, City is
entitled to coverage to the extent of the higher limits.
A. Commercial General Liability insurance, including premises, all operations,
property damage, personal injury and death, broad -form contractual, with a per -
occurrence limit of not less than $1,000,000 combined single limit. The policy must
include an endorsement under which the insurer extends coverage to Permittee's fuel
handling activities. The policy must name the City as an additional insured.
B. Worker's compensation insurance with coverage for all employees engaged in
work under this Permit or at the Premises as required by AS 23.30.045. Permittee is
further responsible to provide worker's compensation insurance for any
subcontractor who directly or indirectly provides services to Permittee under this
Permit.
C. Commercial Automobile Coverage with not less than $1,000,000 combined
single limit per occurrence. This insurance must cover all owned, hired, and non -
owned motor vehicles the Permittee uses on the Airport. The policy must name the
City as an additional insured.
D. All insurance required must meet the following additional requirements:
i. All policies will be by a company/corporation currently rated "A-" or
better by A.M. Best.
ii. Permittee shall submit to the City proof of continuous insurance
coverage in the form of insurance policies, certificates, endorsements,
or a combination thereof, and signed by a person authorized by the
Special Use Permit —Rainbow River Lodge Aviation, LLC (Float Plane Basin) Page 3 of 8
16
insurer to bind coverage on its behalf.
iii. Permittee shall request a waiver of subrogation against City from
Permittee's insurer and the waiver of subrogation, where possible,
shall be provided at no cost to City.
iv. Provide the City with notification at least thirty (30) days before any
termination, cancellation, or material change in insurance coverage of
any policy required hereunder.
V. Evidence of insurance coverage must be submitted to City by June 1,
2026. The effective date of the insurance shall be no later than June 1,
2026.
City may increase the amount or revise the type of required insurance on written demand
without requiring amendments to this Permit. City will base any increase or revision on
reasonable and justifiable grounds. Within two weeks of the written demand, Permittee
shall submit to City evidence of insurance coverage that meets the requirements of the City.
10. Assumption of Risk. Permittee assumes full control and sole responsibility as
between Permittee and City for the activities of Permittee, its personnel, employees, and
persons acting on behalf of or under the authority of the Permittee anywhere on the Airport.
Permittee shall provide all proper safeguards and shall assume all risks incurred in its
activities on and access to the Kenai Municipal Airport and its exercise of the privileges
granted in this Permit.
11. Indemnity, Defend, and Hold Harmless Agreement. Permittee agrees to fully
indemnify, defend, and hold harmless, the City of Kenai, its officers, agents, employees,
and volunteers from and against all actions, damages, costs, liability, claims, losses,
judgments, penalties, and expenses of every type and description, including any fees and/or
costs reasonably incurred by the City's staff attorneys and outside attorneys and any fees
and expenses incurred in enforcing this provision (hereafter collectively referred to as
"Liabilities"), to which any or all of them may be subjected, to the extent such Liabilities
are caused by or result from any negligent act or omission or willful misconduct of the
Permittee in connection with or arising from or out of Permittee's activities on or use of
the Premises, Permittee's access to the Kenai Municipal Airport, and/or Permittee's
exercise of the privileges granted in this Permit. This shall be a continuing obligation and
shall remain in effect after termination of this Permit.
12. Fuel Spill Prevention and Response Plan. Areas of the Apron have been seal coated
to protect asphalt from adverse effects of petroleum product spills. The City requires that
Special Use Permit —Rainbow River Lodge Aviation, LLC (Float Plane Basin) Page 4 of 8
F17
Permittee provide adequate absorbent materials and tools available on the Premises and at the
airport in order to maintain a fuel spill and response capability. Permittee shall be liable for
any damage caused by and costs associated with any spill, the cleanup of any spill, or the
discharge of petroleum products or hazardous materials due to Permittee's use of the Apron
and/or use of the Airport.
Permittee shall provide to City an acceptable fuel spill prevention and response plan and
will maintain fuel spill and response capability. Permittee further agrees to have a copy of
the fuel spill prevention and response plan located in the Permittee's fuel dispensing
equipment at all times. Permittee must comply with the Airport's Storm Water Pollution
Prevention Plan as appropriate to Permittee's activities.
Permittee shall not store any personal property, solid waste, petroleum products, Hazardous
Material as defined by 14 CFR § 171.8, hazardous waste (ignitable, corrosive, reactive, or
toxic) or any hazardous substance on any portion of the Airport. Permittee is aware that
there are significant penalties for improperly disposing of the Hazardous Materials and
other waste and for submitting false information regarding Hazardous Materials, including
the possibility of fine and imprisonment for knowing violations.
Permittee shall immediately remove the material in the event of spillage or dripping of
gasoline, oil, grease, or any other material which may be unsightly or detrimental to the
pavement or surface in or on any area of the Airport.
Permittee may not construct or install any above -ground or underground fuel storage tanks
or dispensing systems at the Airport.
No person shall smoke on an aircraft -parking ramp, inside an aircraft hangar, or within
fifty feet (50') of any aircraft fuel facility or fuel truck.
Permittee is subject to FAA Advisory Circular 150/5230-4 Aircraft Fuel Storage,
Handling, and Dispensing on Airports, the National Fire Protection Associations'
"Standard for Aircraft Fueling Servicing" in NFPA 407 (1996 version), and the current
version of the International Fire Codes. All inspections of fuel facilities, by City or other
regulating entities to which Permittee is subject, shall be conducted to assure compliance
with the fire safety practices listed in these referenced documents.
13. Hazardous Substances and Materials. Permittee shall conform and be subject to
the requirements of 14 CFR § 139.321 regarding the handling and storage of hazardous
substances and materials.
14. No Discrimination. Permittee shall not discriminate against any person because of
the person's race, creed, color national origin, sex, age, or handicap. Permittee recognizes
Special Use Permit —Rainbow River Lodge Aviation, LLC (Float Plane Basin) Page 5 of 8
Typ tet he
the right of City to take any action necessary to enforce this requirement of the Permit.
Permittee will furnish services provided under this Permit on a reasonable, and not unjustly
discriminatory, basis to all users of the Airport and shall charge reasonable, and not
unjustly discriminatory, prices for each product or service provided at the Airport.
15. Licenses and Permits. Permittee shall obtain and maintain all required federal,
state, and local licenses, certificates, and other documents required for its operations under
the Permit. Permittee shall provide proof of compliance to City upon request by the City.
16. Compliance with Law/Grant Assurances. This Permit, and Permittee's activities
conducted under this Permit, is subject to all executive orders, policies and operational
guidelines and all applicable requirements of federal, state, and City statutes, ordinances,
and regulations in effect during the term of this Permit. Further, Permittee shall comply
with all applicable requirements imposed on the Airport by federal law to ensure that the
Airport's eligibility for federal money or for participation in federal aviation programs is
not jeopardized. This Permit is subordinate to the City's grant assurances and federal
obligations.
17. No Exclusivity. The privileges granted under this Permit are not exclusive to
Permittee. City has the right to grant to others any right or privilege on the Airport.
18. Assignment. The privileges granted under this Permit are personal to Permittee and
may not be assigned by Permittee.
19. No Joint Venture. City shall not be construed or held to be a partner or joint
venturer of Permittee in the conduct of its business or activities on the Premises or
elsewhere at the Kenai Municipal Airport.
20. No Waiver. Failure to insist upon a strict compliance with the terms, conditions,
and requirements herein contained, or referred to, shall not constitute or be construed as a
waiver or relinquishment of the right to exercise such terms, conditions, or requirements.
21. Personality. Permittee shall remove any and all personal property, including all
vehicles, from the Premises at the termination of this Permit (or any renewal thereof).
Personal property placed or used upon the Premises will be removed and/or impounded by
the City, if not removed upon termination of this Permit and when so removed and/or
impounded, such property may be redeemed by the owner thereof only upon the payment
to the City of the costs of removal plus storage charges of $25.00 per day. The City of
Kenai is not responsible for any damage to or theft of any personality of Permittee or of its
customers.
Special Use Permit —Rainbow River Lodge Aviation, LLC (Float Plane Basin) Page 6 of 8
22. Termination; Default. This Permit may be terminated by either party hereto by
giving thirty (30) days advance written notice to the other party. City may terminate the
Permit immediately, or upon notice shorter than thirty (30) days, to protect public health
and safety or due to a failure of Permittee to comply with condition or term of this Permit
which failure remains uncured after notice by City to Permittee providing Permittee with a
reasonable time period under the circumstances to correct the violation or breach.
23. Landing Fees; Fee Schedule. Timely payment of landing fees and other required
Airport fees is a condition of this Permit and, as such, failure to timely pay landing and
other airport fees is grounds for termination. Without limiting the foregoing, Permittee
shall pay landing fees for aircraft landings as set out in the City's comprehensive schedule
of rates, charges and fees. Permittee shall make payment within thirty (30) days following
the end of each month and without demand or invoicing from City. Permittee shall also
provide Airport Administration with monthly certified gross take -off weight reports within
ten (10) days following the end of each month for landings for the preceding month.
Airport landing fees shall be paid at the Airport Administration Building, 305 North
Willow Street, Suite 200, Kenai, AK 99611.
24. Impoundment. At the discretion of the Airport Manager, City may impound any
aircraft parked on the Premises after termination of this Permit. Impoundment may be
accomplished by affixing a seal to the door of the aircraft or the moving of the aircraft for
impoundment purposes. Inconvenience or damage that may result from such movement
will be at the risk of Permittee. An impoundment fee plus a towage fee shall be charged
on each aircraft impounded. In addition, a daily storage fee shall be charged for each day
the aircraft remains impounded. Any impounded aircraft that is not redeemed within ninety
(90) days after impoundment shall be considered abandoned and shall be subject to sale at
public auction. Notice of any auction shall be published. Publication shall be in a
newspaper of general circulation in that area for at least once during each of three (3)
consecutive weeks not more than thirty (30) days nor less than seven (7) days before the
time of the auction.
25. Definitions. As used in this Permit, "Permittee" means Rainbow River Lodge
Aviation, LLC, and where the context reasonably indicates, its officers, agents, and
employees. "Airport" means the Kenai Municipal Airport.
Special Use Permit —Rainbow River Lodge Aviation, LLC (Float Plane Basin) Page 7 of 8
20
....................................................... 79
CITY OF KENAI
By:
Terry Eubank
City Manager
STATE OF ALASKA
THIRD JUDICIAL DISTRICT
Rainbow River Lodge Aviation, LLC
By:
Date Chris Hartis
Permittee
ACKNOWLEDGMENTS
ss.
Date
THIS IS TO CERTIFY that on this day of , 2026, the foregoing
instrument was acknowledged before me by TERRY EUBANK, City Manager, of the City
of Kenai, an Alaska municipal corporation, on behalf of the City.
Notary Public for Alaska
My Commission Expires:
STATE OF ALASKA )
) ss.
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this day of , 2026, the foregoing
instrument was acknowledged before me by Chris Hartis, Permittee, on behalf of Rainbow
River Lodge Aviation, LLC.
Notary Public for Alaska
My Commission Expires:
Approved as to Form:
City Attorney
Special Use Permit —Rainbow River Lodge Aviation, LLC (Float Plane Basin) Page 8 of 8
F21
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City of Kenai
MEMORANDUM
K E N 4
210 Fidalgo Ave, Kenai, AK 99611-7794 1907.283.75351 www.kenai.city
TO: Airport Commission
THROUGH: Mary Bondurant, Interim Airport Manager
FROM: Julie Semmens, Administrative Assistant II
DATE: January 29, 2026
SUBJECT: 2nd Extension for Security Guard Services
On February 29, 2024, the City of Kenai entered into an Agreement for Airport Security Guard
Services with Guardian Security Systems, Inc. for a period of one year with the option to extend
for an additional four, one-year terms if the City and Contractor mutually agree in writing.
The Contractor has a current certificate of insurance on file, and requests to renew under the
same terms and conditions.
Does Commission recommend Council approve the 2nd extension for security guard
services to Guardian Security?
Attachment — 2nd Extension
F24]
SECOND EXTENSION TO KENAI MUNICIPAL AIRPORT AGREEMENT
FOR AIRPORT SECURITY GUARD SERVICES
This Second Extension for Security Guard Services is made the 41h day of
March, 2026, by and between the City of Kenai (Owner), a municipal corporation
whose address is 210 Fidalgo Avenue, Kenai, Alaska 99611, and Guardian Security
Systems, Inc. (Contractor), an Alaska corporation whose address is 2600 Seward
Highway, Anchorage, Alaska, 99503.
WHEREAS, February 29, 2024, the City entered into an Agreement for
Airport Security Guard Services with Guardian Security Systems, Inc., of Anchorage
for Airport Security Guard Services for the facilities at the Kenai Municipal Airport
terminal building, vehicle parking lots, aircraft tie down areas, float plane basin, ski
strip areas, the airport perimeter fence, the Airport Operations Facility, and the Air
Traffic Control Tower.
WHEREAS, The City and Guardian Security Systems, Inc. wish to extend the
Agreement one year under the same terms and conditions.
NOW, THEREFORE, the parties hereto agree as follows:
1. Pursuant to Section II, of the Agreement, the Agreement term is
extended for one year, beginning on February 28, 2026 and ending on February 28,
2027.
2. The parties agree that this Second Extension to the Agreement and all
obligations under this extension shall be effective as of February 28, 2026, regardless
of the date of signatures indicated below.
3. Except as expressly modified or stated herein, all other terms and
conditions of the Agreement remain in full force and effect.
Second Extension to Agreement --Guardian Security Systems, Inc.
25
CITY OF KENAI
Terry Eubank
Its: City Manager
ATTEST:
Name
Title
GUARDIAN SECURITY
SYSTEMS, INC.
LIN
Kemp Knapman
Its: Vice President
Second Extension to Agreement --Guardian Security Systems, Inc.
F26
STATE OF ALASKA )
)SS
THIRD JUDICIAL DISTRICT )
The foregoing instrument was acknowledged before me this day of
, 2026, by Terry Eubank, City Manager of the City of Kenai, an
Alaska municipal corporation, on behalf of the City.
Notary Public in and for Alaska
My Commission expires:
STATE OF ALASKA )
)ss
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY the foregoing instrument was acknowledged before
me this day of , 2026, by Kemp Knapman, Vice President of
Guardian Security Systems, Inc., an Alaska corporation, on behalf of the corporation.
Notary Public in and for Alaska
My Commission expires:
Approved as to form:
Scott M. Bloom
City Attorney
Second Extension to Agreement --Guardian Security Systems, Inc.
27
y Kenai City Council - Regular Meeting
January 07, 2026 — 6:00 PM
Kenai City Council Chambers
Kr � � I 210 Fidalgo Avenue, Kenai, Alaska
LC www.kenai.city
"Telephonic/Virtual Information on Page 3**
Action Agenda
A. CALL TO ORDER
1. Pledge of Allegiance
2. Roll Call
3. Approval of the Agenda and Consent Agenda (Public comments on Consent Agenda Items
limited to three (3) minutes per speaker; thirty (30) minutes aggregated)
*All items listed with an asterisk (*) are considered to be routine and non -controversial by the
council and will be approved by one motion. There will be no separate discussion of these items
unless a council member so requests, in which case the item will be removed from the consent
agenda and considered in its normal sequence on the agenda as part of the General Orders.
B. SCHEDULED ADMINISTRATIVE REPORTS
C. SCHEDULED PUBLIC COMMENTS (Public comments limited to ten (10) minutes per speaker;
twenty (20) minutes aggregated)
D. UNSCHEDULED PUBLIC COMMENTS (Public comments limited to three (3) minutes per speaker;
thirty (30) minutes aggregated)
E. PUBLIC HEARINGS
1. ENACTED WITHOUT OBJECTION Ordinance No. 3497- 2025 - Accepting and Appropriating
a Donation to the Kenai Community Library for Library Materials, Wayfinding, and Programming.
(Administration)
2. ADOPTED WITHOUT OBJECTION Resolution No. 2026-01 - Amending the City of Kenai's
Schedule of Rates, Charges, and Fees by Increasing the City League Participation Fee and
Removing the City League Basketball Team Fee. (Administration)
F. MINUTES
1. *Regular Meeting of December 17, 2025. (City Clerk)
G. UNFINISHED BUSINESS
H. NEW BUSINESS
1. *Action/Approval - Bills to be Ratified. (Administration)
2. *Action/Approval - Purchase Orders and Purchase Order Amendments Requiring Council
Approval in Accordance with KMC 7.15.020. (Administration)
3. *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)
Kenai City Council - Regular Meeting Page 1 of 2
January 07, 2026
Typ text he
4. *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)
5. APPROVED WITHOUT OBJECTION Action/Approval - Authorizing the City Manager to
Complete an Agreement for Mutual Aid and Assistance for the Alaska Water / Wastewater
Agency Response Network. (Administration)
6. APPROVED WITHOUT OBJECTION Action/Approval - Consent to Assignment and
Assignment of Lease Agreement of Tract A and Tract B, City of Kenai Shore Fishery No. 1.
(Administration)
7. Discussion/Action - 2026 Special Election - Proposition Question(s) (City Clerk)
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
M. EXECUTIVE SESSION
N. PENDING ITEMS
O. ADJOURNMENT
P. INFORMATION ITEMS
1. Boys and Girls Clubs of the Kenai Peninsula - Thank You Letter
The agenda and supporting documents are posted on the City's website at www.kenai.city. Copies of
resolutions and ordinances are available at the City Clerk's Office or outside the Council Chamber prior
to the meeting. For additional information, please contact the City Clerk at 907-283-8231.
Registration is required to join the meeting remotely through Zoom. Please use the following link to
register:
https://us02web.zoom.us/meeting/register/ZwezbcRNQ5SaKnTwxyTEeA
Kenai City Council - Regular Meeting Page 2 of 2
January 07, 2026
29
J Kenai City Council - Regular Meeting
January 21, 2026 — 6:00 PM
Kenai City Council Chambers
Kr � � I 210 Fidalgo Avenue, Kenai, Alaska
LC www.kenai.city
"Telephonic/Virtual Information on Page 3**
Action Agenda
A. CALL TO ORDER
1. Pledge of Allegiance
2. Roll Call
3. Approval of the Agenda and Consent Agenda (Public comments on Consent Agenda Items
limited to three (3) minutes per speaker; thirty (30) minutes aggregated)
*All items listed with an asterisk (*) are considered to be routine and non -controversial by the
council and will be approved by one motion. There will be no separate discussion of these items
unless a council member so requests, in which case the item will be removed from the consent
agenda and considered in its normal sequence on the agenda as part of the General Orders.
B. SCHEDULED ADMINISTRATIVE REPORTS
Kenai Municipal Airport Small Community Air Service Development Program (SCASDP)
Application, Jack Penning, Managing Partner, Volaire Aviation Consulting.
C. SCHEDULED PUBLIC COMMENTS (Public comments limited to ten (10) minutes per speaker,
twenty (20) minutes aggregated)
D. UNSCHEDULED PUBLIC COMMENTS (Public comments limited to three (3) minutes per speaker;
thirty (30) minutes aggregated)
E. PUBLIC HEARINGS
1. ENACTED UNANIMOUSLY. 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)
2. ENACTED UNANIMOUSLY. 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)
3. ADOPTED UNANIMOUSLY. Resolution No. 2026-02 - Adopting the City's Capital
Improvement Plan for Fiscal Years 2027-2031. (Administration)
4. ADOPTED UNANIMOUSLY. Resolution No. 2026-03 - Adopting Goals to Guide the
Preparation of the Fiscal Year 2027 Annual Budget. (Administration)
5. ADOPTED UNANIMOUSLY. Resolution No. 2026-04 - Authorizing a Budget Transfer Within
the Kenai Recreation Center Improvements Capital Project Fund. (Administration)
6. ADOPTED UNANIMOUSLY. 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
Kenai City Council - Regular Meeting Page 1 of 3
January 21, 2026
F30]
the Attached Exhibit "A" is Not Needed for a Public Purpose and Consenting to Vacation of The
Easement. (Administration)
7. ADOPTED UNANIMOUSLY. 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)
8. ADOPTED UNANIMOUSLY. 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)
9. ADOPTED UNANIMOUSLY. 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)
10. ADOPTED AS AMENDED UNANIMOUSLY. 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)
F. MINUTES
*Regular Meeting of January 7, 2026. (City Clerk)
G. UNFINISHED BUSINESS
H. NEW BUSINESS
1. *Action/Approval - Bills to be Ratified. (Administration)
2. *Action/Approval - Purchase Orders and Purchase Order Amendments Requiring Council
Approval in Accordance with KMC 7.15.020. (Administration)
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)
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)
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)
Kenai City Council - Regular Meeting Page 2 of 3
January 21, 2026
F31
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)
7. APPROVED UNANIMOUSLY. 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)
8. APPROVED UNANIMOUSLY. Action/Approval - Authorizing the Use of City Facility People
Counter Cameras for Operational and Safety Purposes. (Administration)
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)
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
M. EXECUTIVE SESSION
N. PENDING ITEMS
O. ADJOURNMENT
P. INFORMATION ITEMS
The agenda and supporting documents are posted on the City's website at www.kenai.city. Copies of
resolutions and ordinances are available at the City Clerk's Office or outside the Council Chamber prior
to the meeting. For additional information, please contact the City Clerk at 907-283-8231.
Registration is required to join the meeting remotely through Zoom. Please use the following link to
register:
htti)s://us02web.zoom.us/meetinq/register/Vw5zgg4kRwGQZJC4 rQBlw
Kenai City Council - Regular Meeting Page 3 of 3
January 21, 2026
32
Kenai Airport Enplanements
Month
Grant
2025
Kenai
Aviation
2025
Aleutian
2025
Grant
2024
Kenai
Aviation
2024
Total
2025
Total
2024
Change from
2024 to 2025
January
4466
1003
3218
1719
5469
4937
532
February
4001
917
3207
1553
4918
4760
158
March
3973
1072
3508
1325
5045
4833
212
April
4464
1071
3847
1326
5535
5173
362
May
4353
1122
4024
1546
5475
5570
-95
June
5249
1129
190
4635
1624
6568
6259
309
July
6771
2003
1044
6585
2231
9818
8816
1,002
August
7362
2064
944
7584
2798
10370
10382
-12
September
5394
1222
448
5291
1583
7064
6874
190
October
4955
1308
356
5090
1528
6619
6618
-1
November
5083
118
70
4301
1267
5271
5568
-297
December
5018
0
247
4338
1321
5265
5649
-384
Total
61089
13029
3299
55628
19821
77417
75439
1976
12000
10000
8000
6000
4000
2000
0
2025 ENPLANEMENTS
�JP QJP PQ PQ�
--#—Total2025 tTota12024
�J 4 �0 �4 4
0
KENAI STRAGEGY UPDATE
PREPARED BY VOLAIRE AVIATION CONSULTING
■ JAN UARY 2026
VOLAIRE
AVIATION CONSULTING
r-�
VOLAI RE
AVIATION CONSULTING
f
35
VOLAI RE Z
AGENDA
CHANGES IN KENAI
LOST CAPACITY AND HIGH FARES
THE INDUSTRY AT A GLANCE
SLOWER ECONOMIC GROWTH
RELIANCE ON HIGH INCOME CUSTOMERS
ALASKA AIRLINES EVOLUTION
HAWAI IAN AIRLINES MERGER
INCENTIVES FOR NEW ROUTES
DUAL STRATEGIES
NETWORK AND LOW COST
36
VOLAiRE
3
I� IRE
AVIATION CONSULTINO
TOPIC ONE
CHANGES IN KENAI ------ mil
KENAI AVAILABLE SEATS HAVE FALLEN PRECIPITOUSLY
275
255
235
215
195
175
155
135
115
95
75
YE2Q15
voLAI RE
YE2Q16
YE2Q17
YE2Q18
YE2Q19
> DOWN 31% FROM THE PEAK
> LOSS OF 84 DEPARTING SEATS PER DAY
YE2Q20 YE2Q21 YE2Q22 YE2Q23 YE2Q24 YE2Q25 38
SOURCE: AIRLINE DATA, INC. 5
KENAI HAS SEEN HUGE SERVICE CHANGES
VOLAIRE
SOURCE: VOLAIRE AVIATION CONSULTING ANALYSIS OF AIRLINE DATA, INC
KENAI HAS SEEN HUGE SERVICE CHANGES
Kenai
> :4;A viation
> ENDED OPERATIONS
> LOSS OF SEVEN DEPARTURES/DAY
> V-0EXLl!
> LAUNCHED SERVICE
> BUT DOWN TO ONE FLIGHT PER DAY
40
_ � a
VOLAiRE
SOURCE: VOLAIRE AVIATION CONSULTING ANALYSIS OF AIRLINE DATA, INC. 7
KENAI HAS SEEN HUGE SERVICE CHANGES
Kenai
> :4;A viation
> ENDED OPERATIONS
> LOSS OF SEVEN DEPARTURES/DAY
> V-0EXLl!
> LAUNCHED SERVICE
> BUT DOWN TO ONE FLIGHT PER DAY
> GRANT
AVIATION
> OPERATED 34 DEPARTURES PER DAY
> SCHEDULES JUST 17 FOR SUMMER 202�
� � a
VOLAIRE
41
SOURCE: VOLAIRE AVIATION CONSULTING ANALYSIS OF AIRLINE DATA, INC. 8
KENAI HAS SEEN HUGE SERVICE CHANGES
Kenai
> :4;A viation
> ENDED OPERATIONS
> LOSS OF SEVEN DEPARTURES/DAY
> V-0EXLl!
> LAUNCHED SERVICE
> BUT DOWN TO ONE FLIGHT PER DAY
> GRANT
AVIATION
> OPERATED 34 DEPARTURES PER DAY
> SCHEDULES JUST 17 FOR SUMMER 202�
� � a
VOLAIRE
42
SOURCE: VOLAIRE AVIATION CONSULTING ANALYSIS OF AIRLINE DATA, INC. 9
KENAI HAS SEEN HUGE SERVICE CHANGES
Kenai
> :4;A viation
> ENDED OPERATIONS
> LOSS OF SEVEN DEPARTURES/DAY
> V-0EXLl!
> LAUNCHED SERVICE
> BUT DOWN TO ONE FLIGHT PER DAY
> GRANT
AVIATION
> OPERATED 34 DEPARTURES PER DAY
> SCHEDULES JUST 17 FOR SUMMER 202�
� � a
VOLAIRE
43
SOURCE: VOLAIRE AVIATION CONSULTING ANALYSIS OF AIRLINE DATA, INC. 10
GRANT FILLS 70% OF ITS KENAI SEATS
C GRANT
AVIATION
Kenai
�viation
0 50 100
VOLAI RE
I
150
200
_ � a
44
SOURCE: VOLAIRE AVIATION CONSULTING ANALYSIS OF AIRLINE DATA, INC. 11
KENAI PASSENGERS ARE SUPPRESSED BY HIGH FARES
300
250
200
150
100
•
•
50
0
YE2Q15 YE2Q16 YE2Q17 YE2Q18 YE2Q19 YE2Q20 YE2Q21
YE2Q22 YE2Q23 YE2Q24 YE2Q25
45
V4 L A 1 R E SOURCE: VOLAIRE AVIATION CONSULTING ANALYSIS OF AIRLINE DATA, INC. 12
KENAI PASSENGERS ARE SUPPRESSED BY HIGH FARES
300
250
200
150
100
50
1
YE2Q15 YE2Q16 YE2Q17 YE2Q18 YE2Q19 YE2Q20 YE2Q21 YE2Q22 YE2Q23 YE2Q24 YE2Q25
46
V4 L A 1 R E SOURCE: VOLAIRE AVIATION CONSULTING ANALYSIS OF AIRLINE DATA, INC. 13
KENAI PASSENGERS ARE SUPPRESSED BY HIGH FARES
300
250
200
150
100
50
1
YE2Q15 YE2Q16 YE2Q17 YE2Q18 YE2Q19 YE2Q20 YE2Q21 YE2Q22 YE2Q23 YE2Q24
VOLAIRE
AGE FROM ENA TO ANC:
AGE BEYOND ANC:
$145
$318
YE2Q25
47
SOURCE: VOLAIRE AVIATION CONSULTING ANALYSIS OF AIRLINE DATA, INC. 14
KENAI SUPPORTS THE 2ND HIGHEST AVERAGE FARE
Deadhorse, AK
Kenai, AK
Anchorage, AK
Fairbanks, AK
Seattle, WA
Kodiak, AK
Wenatchee, WA
Sitka, AK
Juneau, AK
Ketchikan, AK
Yakima, WA
Bend/Redmond, OR
Tri-Cities, WA
Barrow, AK
Medford, OR
Pullman, WA
Portland, OR
Eugene, OR
Spokane, WA
Nome, AK
Walla Walla, WA
Everett, WA
Kotzebue, AK
Bethel, AK
Bellingham, WA
$0 $50 $100 $150 $200 $250 $300
_ $267
> $97 MORE THAN AVERAGE
> 36% PREMIUM TO FLY LOCAL
48
$350 $400 F
VOLAI RE
SOURCE: AIRLINE DATA, INC. 15
KENAI RETAINS JUST 7% OF LOCAL TRAVELERS
Anchorage
Kenai a
Empty ENA Seats 91
0 50 100 150 200 250 300 350
95% of passengers buy two tickets.
VOLAIRE
400 450
State Park
New Stuyshok
Aleknagik 4
GoodnewsO Bay Tagiak Dillin tarn
G
O
Y Manokotak
Naknek
a KingSalmon National Park
and Preserve~
Lime Village
�ow
Lake Cla
National F
and Prese
N o nd alton
Newhaien 'rn {
9
�Nirl�lch�k
[rich pr Paint
Homer
I� ks�C t P
Us
Willow Sultan -Alpine
wasilla o "Palmer
Part Lions [49
Kodiak
SOURCE: VOLAIRE AVIATION CONSULTING 16
TOPIC TWO
THE I
r � r--.•fY►�� �
NDUSTRY AT A GLANCE
_35 v0 L A I R E
AVIATION CONSULTING
t' '
PERIOD OF SLOWER GROWTH FORECAST
Index, -1 to +1
1.00
075
0.50
025
0.00
-0.2 5
-0.50
-0.75
-1.00 -
2001 2006
2016
2021
> TARIFF UNCERTAINTY
> RECORD HIGH CORPORATE DEBT
> LABOR MARKET WEAKNESS
> INCREASING WEALTH GAP
VOLAI RE
SOURCE: US OXFORD ECONOMICS AND VOLAIRE AVIATION CONSULTING ANALYSIS 18
INCREASED RELIANCE ON PREMIUM CABIN
? 17% OF SEATS
49% OF REVENUE
52
VO L A I R E SOURCE: VOLAIRE AVIATION CONSULTING ANALYSIS OF AIRLINE FINANCIAL REPORTING 19
AIRLINES QUICKLY RETIRING SMALL RJs
1,400
1,200
1,000
800
600
400
200
n
2019
■ 50-Seat Regional Jets
2023
>70-Seat Regional Jets
63% RETIRED SINCE 2019
AVERAGE AGE: 22 YEARS
NONE IN PRODUCTION
2024 2025
53
VO L A I R E SOURCE: AIRLINES FOR AMERICA 20
NOT ENOUGH LARGE RJs TO REPLACE SMALL
1,400
1,200
1,000
800
600
400
200
2019 2023 2024
ASS: 153 REGIONAL JETS
2025
54
VO L A I R E SOURCE: AIRLINES FOR AMERICA 21
MORE THAN 1,000 NEW PLANES ON ORDER
UN I T E D
American Airlines
A D E LTA
S't
nr R r. � N e s.
avelo :C
74-laSI(27
allegiant
Breeze
0 100 200 300 400 500 boo
> EXPECT NETWORK CHANGES
> CREATES NEW OPPORTUNITIES
55
VO L A I R E SOURCE: VOLAIRE AVIATION CONSULTING ANALYSIS OF AIRLINE FINANCIAL REPORTING 22
TOPIC THREE
ALASKA AIRLINES EVOLUTION
r
L
N
VOLAIRE
AVIATION CONSULTINO
KENAI"S TOP MARKET IS SEATTLE/TACOMA
Seattle/Everett
0
Minneapolis/St. Paul
I
Denver
I
Chicago
Dallas/Ft. Worth
Las Vegas
14� I
12 1
Anchorage =ONE1 I
Phoenix/Mesa 10 �—j
Los Angeles Basin j—j
Kansas City 1 8
0 10
65, 1
■ Kenai Passengers
Other Airport Passengers
20 30 40 50 60 70
r57
VOLAI RE
SOURCE: VOLAIRE AVIATION CONSULTING 24
elf'A 0 11 = me] ID�
',
POTENTIAL NETWORK CARRIERS TO SERVE KENAI - SEATTLEJACOMA
AS OF JANUARY 2026
ENA
- } +at -� � r • '# ' -fir
y _ +
Alaska Airlines to base 77W9s in
Seattle and open a new pilot base,
intensifying its rivalry with Delta
ALASKA HAS SUPERIOR SEATTLE CONNECTIVITY
YLW
T
P€X
MRY,,,
Sap ~
U {SBI� D T
SA PSP J 'ASQ
snN — rlx
t �
f US
ti \\ELP
� r
m. L SJD
PVR
l_
KENAI. AK to SEATTLE
Copyrigh! ®Vleire Atiafion Ccnaul}ng
VOLAI RE
STL
NH( m
SAT s j��`
Rol > 93 CITIES IN ONE STOP
HS > 300 AVAILABLE PASSENGERS PER DAY
TNCQ
TIP
RSW MIA FLL
N� a
CUN
15-91
SOURCE: VOLAIRE AVIATION CONSULTING 26
ALASKA IS ONE OF FEW SURVIVORS
AmericanAirlines
America AmericanAirlines AmericanAirlines
/41RC r AmericanAirlines
RenoAi
wn�K rwA�
®
u�R USAir
P/Eff" / I
U-S AIRWAY
V`/AmericaWest W` AAERILAWESTAIRLINES
wNORTHWEST
OHIENT� ,['� NORTHWEST
mmum
AIR LINES TA
A DELTA
AIR LINli
� �.D��.
P1EUV �lV[ ��LV[�
A[ims
�I UNITED 2
N UNITED AIRLINES
CONTINENTAL
FRONTIER Continental
Airlines
►, EASTER
ny-/SouMwFSr
A►NUIVES iff/S0UfH NFSr
MRUNFs
1wi.:Nvnr'v.
0 MORRISAIR
�1er�mF�►c.�
valluid
fit= 11 :li"1�:71
airTran.
HAWAM Wamerica
A l R L 1 N E S HAWAIIANAIRLINES
American Airlines ;
Am., D E L T A
UNITED
Southwest t*
o ors 27
I
VQ L A I R E SOURCE: VOLAIRE AVIATION CONSULTING, UPDATED FEBRUARY 2024 27
M A
Z4qfA ?7 m F*Xvivl�l I FA
SOURCE: ALASKA AIR GROUP 28
X ` HAWAIIAN@
SINGLE CERTIFICATE
1404
..Mir
70D, X ` HAWAIIAN,
SINGLE CERTIFICATE
JOINT NETWORK PLANNING �k
R.-
,Ar li7SA 170
/414
ATMOS.
REWARDS
A loyalty program by
AIMS.¢v. I HAWAIIAN.
AIRLINES AIRLINES
X ` HAWAIIAN,
SINGLE CERTIFICATE
DINT NETWORK PLANNING
TY PROGRAM
R.-
REWARDS
A loyalty program by
AIMS.¢v. I HAWAIIAN.
AIRLINES AIRLINES
SIGNI
27(, X ` HAWAIIAN,
SINGLE CERTIFICATE
JOINT NETWORK PLANNING
NEW LOYALTY PROGRAM
T NETWORK GROWTH
WZ U_--
at1
ALASKA HAS ADDED 25 DOMESTIC ROUTES
VO L A I R E SOURCE: VOLAIRE AVIATION CONSULTING ANALYSIS OF AIRLINE DATA, INC. 33
ALASKA HAS CUT NINE ROUTES
ANC
Ar
VOLAIRE
K
':
ELIMINATED FOUR CITIES COMPLETELY
ONLY TWO "NET NEW" CITIES IN FOUR YEARS
FAVORS CUTS TO LONGER ROUTES
pax -
0
DAL
M
IF - -- -- - -_I.
h, AS
67
BZE
SOURCE: VOLAIRE AVIATION CONSULTING ANALYSIS OF AIRLINE DATA, INC. 34
ALASKA'S NEW FOCUS IS ON LONG HAULS
> SOAKS UP CREW TIME
> CHALLENGES GATE SPACE
ICfd
NRT
VOLAI RE
H.w
El
SOURCE: VOLAIRE AVIATION CONSULTING ANALYSIS OF AIRLINE DATA, INC. 35
SHORT HAULS CAN MAKE MORE MONEY
.> GENERATE $19,000 PER SEGMENT
> $38,000 PER DAY (TWO SEGMENTS)
69
VO L A I R E SOURCE: DEPARTMENT OF TRANSPORTATION FORM 41 36
SHORT HAULS CAN MAKE MORE MONEY
> GENERATE $19,000 PER SEGMENT
> $38,000 PER DAY (TWO SEGMENTS)
> SAME AIRCRAFT TIME, SIX SEGMENTS
> $9,300 PER SEGMENT
> $55,800 PER DAY
70
VOLAiRE
SOURCE: DEPARTMENT OF TRANSPORTATION FORM 41 37
Rxi
r
r f
' � I
-Illllliiiiiiiilllllllllliillllllllllllllllllilililljllllllllllll1111111111111llilljllllI
. #.� 11 dry -'+� # �, $�k t�,h-'��'�#ii_ t • '...
-j - ,
: lftlb r
71
MANY AIRLINES GROWING SEATS
Breeze
allegiant
American Airlines
UNITED
/\ D E LTA
jetBlue
Southwesty
FRONTIER
AIRLINES
avelo 0
s sun country airlines.
42.7%
10.1%
5.8%
5.5%
4.8%
3 6°/
> BREEZE AND ALLEG IANT LEAD IN GROWTH
> NETWORK CARRIERS GROWING SEATS
o
1.7% MOS7
spir►t� .
�.Kfi
-17.0% -7.0% 3.0%
13.0% 23.0% 33.0% 43.0%
72
VOLAI RE
SOURCE: AIRLINES FOR AMERICA 39
DUAL PATH TO LOWER 48 NONSTOPS
SEATTLE NONSTOPS
DAILY OR NEAR -DAILY SERVICE
LARGE REGIONAL JET
F
3
VOLAIRE
SOURCE: VOLAIRE AVIATION CONSULTING 40
DUAL PATH TO LOWER 48 NONSTOPS
> SEATTLE NONSTOPS
DAILY OR NEAR -DAILY SERVICE
> LARGE REGIONAL JET
> PORTLAND OR OTHER LARGE DESTINATIONS
TWICE -WEEKLY FLIGHTS
POTENTIALLY SEASONAL
F74]
VOLAiRE
SOURCE: VOLAIRE AVIATION CONSULTING 41
EITHER PATH REQUIRES RISK MITIGATION
> SMALL COMMUNITY AIR SERVICE GRANT
> AIRPORT FEE WAIVERS (TWO YEARS)
> LOCAL MARKETING PLAN
F75]
VOLAIRE
SOURCE: VOLAIRE AVIATION CONSULTING 42
MOST ROUTES HAVE MAJOR GUARANTEES
Arcata -Eureka (ACV)
SCASD and Local
$1,200,000
Redding (RDD)
SCASD and Local
$1,000,000
San Luis Obispo (SBP)
San Luis Obispo County
$2,000,000
Idaho Falls (IDA)
City of Idaho Falls
$1,000,000
Cleveland (CLE)
JobsOhio
$1,250,000
Cincinnati (CVG)
JobsOhio
$1,250,000
Vail/Eagle (EGE)
Eagle Air Alliance
$1,000,000
Tulsa (TUL)
SCASD and Local
$1,500,000
$10, 200, 000
Total. . .
m y 4
SBD
SAN
cvc
area
"Sy 18
a
NMIA
;5
El
VO L n I R E SOURCE: VOLAIRE AVIATION CONSULTING ANALYSIS OF AIRLINE DATA, INC. 43
1ymr_0
dwL
- 4'
v5, 'Sr =�. I-• + �-'_ �. f"r l" �. ' �'• � '�i _ � r - � ff �.�fa' ' t -
x.
- •.f � �-+•vJ _ _ __ - _ y~ F -` •��_�-+.M1Y r I �r � 1 y �~ '
•• �� .��, �— �ti' � J.F4�_ a-_�S �. .r�uJ{{a• _ a � -_� -�11 '�� .� r � at�. �J��'� �� ' 1 � —
J�1:
AlsposT
Al PPPP_PP_.1
K 005W
WHEN:
Thursday, February 19
4:30-7:30 PM
About the Project
WHERE:
City Council Chambers
210 Fidalgo Avenue, Kenai, AK
The City of Kenai is updating the Kenai Airport Master
Plan to determine how the airport can best serve the
future interests and needs of the flying public, the
aviation community, the City, and other stakeholders.
Meeting Purpose
This meeting will share findings from the recently
completed first phase of the Airport Master Plan Update,
including current airport conditions and future aviation
needs. Preliminary development alternatives will also be
presented.
00
Visit the project website
for more information:
Project kenaiamp.com
Contacts
Project Manager
Erik Jorcit
Phone: 907-564-2154
Email: Dordt(a>HDLAlaska.com
Aviation Planner
Marie Schmidt
Phone: 907-564-216o
Email: MSchmidt@HDLAlaska.com
Airport Manager
Mary Bondurant
Rhone: 907-283-8282
Email: MBondurant@kenai.city
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 Henry Knackstedt and Kenai City Council
THROUGH: Terry Eubank, City Manager
FROM: Mary Bondurant, Interim Airport Manager
DATE: January 8, 2026
SUBJECT: Airport Mid -month Report December 2025
FY2025 Airport Capital Improvement Protects
• Runway Rehabilitation Project
Construction to Start Spring of 2026. There will be a pre -construction meeting on Friday,
January 16, 2026.
• Apron crack sealing, marking, and sealcoat
Construction to start in the Spring of 2026. A pre -construction meeting will be held on
Wednesday, January 14, 2026.
• Acquire SRE (Loader & Plow Truck with Sander)
Update: the CAT 980 loader has been delivered with all of the attachments and the plow
truck and sander should be delivered the end of January 2026.
• Airport Master Plan — Phase 1
City Administration is reviewing the draft Conditions and Needs Assessment and
preliminary development alternatives. These proposed alternatives will be introduced at
the February 12th, Airport Commission meeting and on February 19th at a public meeting.
• ARFF Building Rehabilitation — Boiler Replacement
Project is in the final stages of completion.
In-house Activities
• Different winter than last year for the Operations Crew with plenty of snow and ice to
deal with. The crew has been able to keep up with no impact to operations. Mother
Nature has been the culprit disrupting service with the high winds.
F79]
Page 2 of 2
Airport Mid -Month Report
Airport administration along with the City Planning Department and the Kenai Fire
Marshall are continuing with lease lot inspections inside the Airport Reserve. We have
completed 14 of 22 inspections.
• 8th Annual Christmas Tenant Tree
Decorating Contest came to an end on
December 23, 2025 with Grant Aviation
receiving the most votes. Congratulations!
Page 2 of 2
The City of Kenai I www.kenai.city
(Cj- 80