HomeMy WebLinkAboutOrdinance No. 3507-2026KENAI
CITY OF KENAI
ORDINANCE NO. 3507-2026
Sponsored by: Administration
AN ORDINANCE INCREASING ESTIMATED REVENUES AND APPROPRIATIONS FOR
CONSULTING SERVICES TO EVALUATE NATURAL GAS STORAGE OPPORTUNITIES ON KENAI
MUNICIPAL AIRPORT LANDS.
WHEREAS, the City seeks to evaluate the potential for leasing land for natural gas storage, including
possible use of pore space in depleted reservoirs held by the City for the benefit of the Airport; and,
WHEREAS, specialized technical expertise is required to assess such opportunities; and,
WHEREAS, the Administration proposes entering into a professional services agreement for consulting
services not to exceed $30,000; and,
WHEREAS, Kenai Municipal Code 7.15 authorizes the City Manager to purchase professional and
contractual services costing less than $35,000; and,
WHEREAS, insufficient funds are available in the Airport's FY26 Budget necessitating the need for
supplemental funding; and,
WHEREAS, sufficient funds are available in the Airport Fund for this purpose; and,
WHEREAS, pursuant to KMC 1.15.070(d) the City may introduce and finally pass on the same day, an
ordinance making, repealing, transferring or otherwise changing an appropriation; and,
WHEREAS, it is in the best interest of the City of Kenai and the Kenai Municipal Airport to authorize and
fund these consulting services.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, AS
FOLLOWS:
Section 1. That estimated revenues and appropriations be increased as follows:
Airport Fund:
Increase Estimated Revenues —
Appropriation of Fund Balance $�
Increase Appropriations —
Other Buildings and Areas — Professional Services $30,000
Section 2. Severability: That if any part or provision of this ordinance or application thereof to any
person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall
be confined in its operation to the part, provision, or application directly involved in all controversy in
which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder
of this title or application thereof to other persons or circumstances. The City Council hereby declares
that it would have enacted the remainder of this ordinance even without such part, provision, or
application.
Section 3. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect
immediately upon enactment.
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Ordinance No. 3507-2026
Page 2 of 2
ENACTED BY THE COUNCIL OF THE CITY OF KENA
TTEST:
Sar%r, MMC, City Clerk
rDApproved by Finance:
41
Introduced: March 4, 2026
Enacted: March 4, 2026
Effective: March 4, 2026
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700�KFNAI
City of Kenai 1 210 Fidalgo Ave, Kenai, AK 99611-7794 1907.283.75351 www.kenai.city
MEMORANDUM
TO: Mayor Knackstedt and Council Members
FROM: Terry Eubank, City Manager
DATE: February 24, 2026
SUBJECT: Ordinance No. 3507-2026 — Increasing Estimated Revenues and
Appropriations for Consulting Services to Evaluate Natural Gas
Storage Opportunities on Kenai Municipal Airport Lands
The City has received two lease applications for surface lands and subsurface pore space on
lands held by the City for the benefit of the Airport.
Evaluation of these applications involves technical and economic considerations related to natural
gas production, storage feasibility, subsurface rights, and long-term land use implications.
Specialized consulting expertise is necessary to ensure the Council has the information needed
to determine the best path forward for the City.
KMC 1.15.070 generally requires two readings of an ordinance, except for appropriations.
Because this Ordinance appropriates funding, it may be adopted at one meeting by unanimous
consent of the Council Members present, provided the public is given an opportunity to be heard
prior to final passage.
Timely acquisition of consulting services is necessary as this project moves forward.
Adopting the ordinance at one meeting will allow the City to promptly engage professional
expertise to assist the City moving forward.
Thank you for your consideration