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HomeMy WebLinkAboutOrdinance No. 3500-2026KENAI 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 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 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 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 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 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. 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 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 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 Citv. 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 leaal entitv 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 assignment rests in the sole discretion of the City 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 ADplications for amendment. assianment. extension or renewal will be Drocessed 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 makina sDecific findinas 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 apDlication for a initial lease is received for the same DroDerty within thirtv (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 leasina land under this chaoter, the Citv Manaaer 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 . Sa r, M C, City Clerk C-±�)- aa&-, Victoria Askin, Vice Mayor Introduced: January 21, 2026 Enacted: February 4, 2026 Effective: March 6, 2026 New Text Underlined; [DELETED TEXT BRACKETED] K E N A I CITY COUNCIL — 20.020 STANDING COMMISSIONS AND OTHER ADVISORY BODY PROCEDURES Effective Date: March 5, 2014 Last Action Date: June 19, 2024 See Also: Approved by: City Council Page 1 of 4 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 KFNAI 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 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 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