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Home My WebLink About2026-04-01 Council PacketPage 1 . , Kenai City Council - Regular Meeting April 01, 2026 — 6:00 PM Kenai City Council Chambers KENAI 210 Fidalgo Avenue, Kenai, Alaska www.kenai.city **Telephonic/Virtual Information on Page 3** 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 Public Safety Building / Challenger Center Update, K+A dsignstudios, Principal Architect Chris Parker. 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 Ordinance 3509-2026 - Increasing Estimated Revenues and Appropriations in the General Fund - Legislative Department, to Provide Matching Funds for a Grant in the Amount of $10,380 to the Alaska Children's Institute for the Performing Arts DBA Triumvirate Theatre for Parking Lot Paving and Landscaping Improvements. (Administration) Ordinance 3510-2026 - Amending the Official Zoning Map by Rezoning the Property at 10060 Kenai Spur Highway from Conservation to Suburban Residential Zoning District. (Administration) Ordinance No. 3510-2026 (Substitute) - Amending the Official Zoning Map by Rezoning a Portion of the Property at 10060 Kenai Spur Highway from Conservation to Suburban Residential Zoning District. (Administration) Resolution No. 2026-17 - Authorizing a Contract Award for the 2026 Water Treatment Pump House Construction. (Administration) F. MINUTES *Regular Meeting of March 18, 2026. (City Clerk) Kenai City Council - Regular Meeting Page 1 of 3 April 01, 2026 Page 2 2. *Special Meeting of March 25, 2026. (City Clerk) G. UNFINISHED BUSINESS H. NEW BUSINESS 1. *Action/Approval - Bills to be Ratified. (Administration) 2. *Action/Approval - Authorizing a Memorandum of Agreement with Greatland Consulting and Training LLC for the use of the Alaska Regional Fire Training Facility. (Administration) 3. *Ordinance No. 3511-2026 - Accepting and Appropriating Funds from the Institute of Museum and Library Services, Passed Through the State of Alaska, Department of Education and Early Development, Division of Library, Archives & Museums, for Library Employee Training. (Administration) 4. *Ordinance No. 3512-2026 - Amending Kenai Municipal Code Chapter 7.22 Investment of Monies to Broaden the Range of Permitted Investments and Extend the Maturity Profile of the City's Investment Portfolio. (Administration) 5. Discussion/Action - Scheduling a Budget Work Session. (Administration) I. COMMISSION REPORTS 1. Council on Aging Commission 2. Airport Commission 3. Parks and Recreation Commission 4. Planning and Zoning Commission 5. Beautification Commission J. REPORT OF THE MAYOR 1. Mayor Proclamation - Declaring April 2026 as "Sexual Assault Awareness Month". 2. Mayor Proclamation - In recognition of Aidan Cole as the 2026 Alaska State Spelling Bee Champion 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 1. Review and Discussion of the City Attorney's Evaluation Which May be a Subject that Tends to Prejudice the Reputation and Character of the City Attorney [AS 44.62.310(C)(2)]. 2. Review and Discussion of the City Manager's Evaluation Which May be a Subject that Tends to Prejudice the Reputation and Character of the City Manager [AS 44.62.310(C)(2)]. Kenai City Council - Regular Meeting Page 2 of 3 April 01, 2026 Page 3 3. Review and Discussion of the City Clerk's Evaluation Which May be a Subject that Tends to Prejudice the Reputation and Character of the City Clerk [AS 44.62.310(C)(2)]. N. PENDING ITEMS O. ADJOURNMENT P. INFORMATION ITEMS 1. David Martin - Kenai Area Pools The agenda and supporting documents are posted on the City's website at www.kenai.city. Copies of resolutions and ordinances are available at the City Clerk's Office or outside the Council Chamber prior to the meeting. For additional information, please contact the City Clerk at 907-283-8231. Registration is required to join the meeting remotely through Zoom. Please use the following link to register: https:Hus02web.zoom.us/meeting/register/WbEpZlgZTsOL9sKgCk5blA Kenai City Council - Regular Meeting Page 3 of 3 April 01, 2026 Page 4 KENAI EMERGENCY SERVICES FACILITY PROGRAMMING AND ASSESSMENT - EXISTING FACILITY AND CHALLENGER LEARNING CENTER - ARCHITECTURAL AND ENGINEERING PROFESSIONAL SERVICES ALI L N = T A ARCNIiECiURE � PLANNING � ❑ESIGNI i 90/ ]!•.al/v • a ee aiy n�luA•ea cum Page 5 BAY 6 --, a L ___SDWPORT TRUCKS INE1 -----I - - - - - - - - - - - I --- ----- I II I I I J — — SC A C ME I I �------------------ TOWER�I J ON APPARATUS BAY 98 SF - � 4,830 SF HOSE e OWER I HOSE WASH 90 SF 114 SF — — STOP. r FIRE STATION I I 13,937 SF L MED - - - - - - - - - SHOP 180 S r---------r 52'-0" MED MED 11 L----- -----L STOP 92 SF 0 CREW OFFICE/ SERVER ROOM U DEPUTY MED CHECK S FIRE CHIE 147 IF 165 SF a 2 121 IF N 2 S F SHOWER LOOKERS EN'S 106 IF CAPTA N'S OFFIC 143 IF LOBBY 145 IF t�ARSNAL FIRE CHIEF ARMIN. F 227 SF 189 IF MEZZ. 578 IF 21G" i U ILI TIES 153 SF EvmENCE STORAGE 2 EXISTING MEZZ. 1973 KENAI POPULATION: 3,533 2024 KENAI POPULATION: 7,893 AREA FIRE DEPARTMENT: 13,847 SF POLICE DEPARTMENT: 9,407 SF OVERALL AREA: 23,254 SF FIRE DEPARTMENT APPARATUS BAY 6 BAYS: 6,296 SF POLICE DEPARTMENT GARAGE 5 BAYS: 1,603 SF GARAGE 1,180 SF EVIDENCE EVIDENCE SAFE 147 IF SAFE /100 YR-) EVIDENCE BAY 50 S STOR 29SF EVIDENCE 31 F - CITY OF KENAI SERVER STOP 1 r 117 IF /L MOR ARCTIC FOYE 91 IF AN 24'-3" ^ 16 8S FAN 4F BOILER ROOM EMERGENCY VID NCE / ELEC GEN. ESS GARAGE/ 117 168 SF IE•1 GUN NING 198 SF WASH BAY DORMITORY 423 SF 777 Sf LOUNGE/ - •• - ^PS DISPATC EVIDENCE EN'S \ T T TRAINING N OMEN 111 SUPERS OR CUSTODY 9^7 IF 116 �F OFFICE NTERVIEW INTERNEW INVE`_TIGAT 183 IF - 199 IF 103 SF zin 114 SF ARCTIC 109 SF D FOOD STOR STOP COMM OYER SQUAD 5 SF STO FL" SF 20 SF 550 SF POLICE STATION CA 7,860 SF _ F DINING 186 SF ERGO IB POLICE CHIEF LIEUTENANT CONFERENCE/ 356 SF DISPATCHER OFFICE OFFCE 170 187 IF FAMILY INTERVIEW RLSOURC 392 SF If LOBBY 92 SF 230 SF OFFICLR 200 SI ^, STAFF: 8 P.D. & 11 F.D. STAFF: 18 P.D. & 19 F.D. EXISTING CONDITIONS ' tea► w KENAI EMERGENCY SERVICES FACILITY DATE: 03 24.2026 .�... .. OOTN0. ALASKA B T.907,M,4140 wVr,rc A $rUOIPS GQm Page 6 K ■ oo A%+' 0' la I I I I I I I I I I I I I I I I i I I I I I I I I I I I I I I I I I I j I I I I I I , I r - , F - I SECURE STAFF d I J L___J PARKING O 16 SPACES O F i r---� AR ORV U) Z I I j� GARAGE BAYS Q I .�,'IIIIIII�L IIIL__-� I FITNESS PSAFE I I r _ _ EVIDENC x SER LDRY LOCKER RM. ol R 1 Y TRAIN 1 STORE I 1 BREAK E P INT. ROOM CONE. OFF. INT. INVES INVES. 0111 1 SQUAD TRAINING LOBBY WORK ROOM T - •�� AREA ---� 1 .- / PUBLIC PARKING / - � OUTH WILLOW STREET DISPATCH I I I I I 1 4 I , � I I I 1 1 I I I , 1 1 1 I r I I , I , I I ' 1 � 1 I 1 I 1 1 1 , 1 1 1 1 I 1 1 1 1 11 1 1 1 1 1 1 01 1 1 1 ' ' O 1 I I LL 1 1 1 1 1 1 1 1 1 1 1 I 1 1 1 I 1 1 , ' I 1 I 1 1 1 1, 1 - - - - - - - + { - - - ------- AREA I COST POLICE STATION AREA: 23,2545E EXISTING POLICE RENOVATIONS COST: 17.6M OVERALL AREA: 23,254 BE I OVERALL ROM COST: 17.6M EXITING BUILDING - POLICE STATION RENOVATION KENAI EMERGENCY SERVICES FACILITY DATE 03.24.2026 •KpW . ;U S67R3 ALA M.444PUIWWW A-?E5INA T.97Y,a6V,�41¢ WWVf,KA-bE SION ST[1GICB.CCM 040 Page 7 1 I�T 1 1 I 14L' -- L----- -- O STAFF LL - O r—_-------� SCB t APPARATUS PARKING-16 - F —J COM 1 rt Z I r—�.AKS—, Q — --A r----, B KRI DMIN 1 I --J D co \ GARAGE r----� E R FITNESS J STAFF PARKING -11 O �W OM R M DAY KITCH ME BATH ADMIN I OFFICE ROROOM UB D GARAGE 1 DINE LDRV OI T RMK OFF STR BA I \ RO MS 11 L TRAINING CPTN 6RI E ROOM SLEEPIN RO MMS S LOBE OFFICFIC SA MIN ' TRAIN \ ONF STOR O RICE NTR CONF PUBLIC PARKING \ / _ STREET _ _ - SOUTH WILLOW AREA COST FIRE STATION 23,254 SF EXISTING FIRE RENOVATIONS COST: 18M NEW BAY EXPANSION 1,466 EF NEW BAY EXPANSION 1.5M OVERALL AREA: 24,720 SF OVERALL ROM COST: 19.5M EXISTING BUILDING - FIRE STATION RENOVATION KENAI EMERGENCY SERVICES FACILITY DATE 0324.2026 oLpumk AL . 7.97Y,26V,441¢ WVfW,NA-0E819XSTtlGI0B.00lA Page 8 bP h ow I I I ' I I I I I I I � I ' I I I I I I I I I I I I ' I I I I I I I I 1 ' I I I I I I I 0. O O Z I � I I I I I I , I I I I 1 � I I I I I I I 1 1 1 , I , 1 I 1 11 1 1 1 1 1 1 1 , 11 1 1 1 1 1 TENANTI 11 1 1 STAFF PARKING - 8 1 LL1 1 1 1 4 1 I , Q 1 LL 1 , 1 1 1 TENANT2 11 1 1 Y STAFF PARKING-91 STR STR GARAGE 1 TENANT STR CE SPA+ 2 I .PC AN / 9,407 $F 11 7 GARAGE I � 1 1 R S w STR. STR STR STR I ' PEII FF. OC PC 1 OPEN OFF. OFF. OFF, 1 1 OFF. STR CONF. ROOM _ -- OFF. OFF / PARKING / SOUTH WILLOW STREET AREA I COST TENANTI: 13,8475E INTERIOR RENOVATIONS COST: 2.1M TENANT2: 9,407 SF ROOF REPLACEMENT COST: 1.4M MECHANICAL UPGRADE COST: 500K OVERALL AREA: 23,254 SF I OVERALL ROM COST: 4.OM EXISTING BUILDING - TENANT RENOVATION KENAI EMERGENCY SERVICES FACILITY DATE 03.24.2026 •. :,.. V.W SQ<OQ.N. ALA � �49L W T.97Y,a9V,441¢ WWVf,KA-bE SION ST[1GICB.COM JQ40 Page 9 r r P\ 9PVRN� d�a.siTJe. � � s � ►ill � CHALLENGER LEARNING CENTER m OF ALASKA Ilj' W Oa, OF KENAI y� MULTI -PURPOSE ' L ■T YI FACILITY LAWTON DR. F I I { KENAICENTRAL HIGH SCHOOL A F1 F.c N f CHALLENGER LEARNING CENTER OF ALASKA - OVERALL SITE PLAN KENAI EMERGENCY SERVICES FACILITY DATE 0302,2026 . WM ,. Win,YVfA,�D, T 907290.4N0 WNW REF. N EXISTING FLOOR PLAN W& s EXISTING BUILDING DETAILS YEAR BUILT: 1999 ADDITION: 2002 CODE SUMMARY: APPLICABLE CODE DURING CONSTRUCTION: 1997 UBC CONSTRUCTION TYPE: II N (W/FIRE SUPPRESSION SYSTEM) OCCUPANCYTYPE: A3 -ASSEMBLY (LEARNING CENTER) B- BUSINESS (OFFICES) M - MERCANTILE (GIFT SHOP) NUMBER OF STORIES: 1-STORY ACTUAL HEIGHT: 26 FEET TOTAL GROSS AREA: 19,633 SF BUILDING ANALYSIS SITE ZONING: EDUCATION - LOT SIZE: 2.3 ACRES ADJACENT TO HIGH SCHOOL, MIDDLE SCHOOL, PUBLIC RINK AND RESIDENTIAL NEIGHBORHOOD. EXTERIOR BUILDING FEATURES STEEL FRAMING AND MASONRY CONSTRUCTION - THE DESIGN OF THE BUILDING INCORPORATES ORGANIC SHAPES ANS SPACES THROUGHOUT THE FACILITY. EXTERIOR FINISHES ARE COMPRISED OF DURABLE LOW MAINTENANCE PRODUCTS. ROOFING SYSTEM IS COMPRISED OF LOW SLOPING INTERIOR DRAINING ROOFS. INTERIOR BUILDING FEATURES AS AN EDUCATIONAL FACILITY, THIS STRUCTURE HAS OPEN ACCESSIBLE PUBLIC SPACES, LOBBIES AND RESTROOMS TO SUPPORT LARGE GATHERINGS. THE INTERIOR FEATURES EXPOSED STRUCTURAL STEEL FRAMING THROUGHOUT. LARGE MEETING ROOMS COMMERCIAL KITCHEN STORAGE ROOMS OPEN OFFICES AND PRIVATE OFFICES - MALE AND FEMALE DORM ROOMS ACCOMPANIED WITH SHOWERS AT PUBLIC RESTROOMS RENOVATION/REUSE ANAYLSIS - RENOVATION OF THIS BUILDING WOULD AVOID PHASING ISSUES, BOTH DEPARTMENTS CAN REMAIN FULLY FUNCTIONAL THROUGHOUT THE CONSTRUCTION PROCESS. GARAGE OR BAY SPACE WOULD NEED TO BE ADDED TO THE EXISTING STRUCTURE TO SUPPORT BOTH THE FIRE AND POLICE DEPARTMENT. THE SPECIALTY INTERIOR SPACES, RADIUS, AND NON -PARALLEL WALLS CREATE CHALLENGES WITH RENOVATIONS. A STRUCTURAL ANALYSIS WILL NEED TO BE PERFORMED TO SEE IF ANY STRUCTURAL MEMBERS NEED TO BE UPGRADED WITH THE CHANGE OF IMPORTANCE FACTOR (NOW 1.5) DUE TO BEING A ESSENTIAL FACILITY. THE ROOF, MECHANICAL BOILER PLANT AND AIR HANDLERS ARE NEARING END OF LIFE AND WILL NEED TO BE REPLACED. CHALLENGER LEARNING CENTER ► KENAI EMERGENCY SERVICES FACILITY DATE 0302.2026 .. ��40 � omffl 7,907,860,4140 WYfW,R►-0E519N6TIl0IO5.G0M 1 I L AREA COST CALLENGER CENTER PD RENOVATION'. 15, 024 SF RENOVATION COST'. 3.]M NEW FD EXPAN SION'. 5,833 SF EXPANSION COST. 4.1M OVERALL AREA: 20,857 SF OVERALL ROM COST: 7.8M CHALLENGER CENTER - POLICE STATION RENOVATION KENAI EMERGENCY SERVICES FACILITY DATE: 03.02.2026 j ALA A 9BlM� A-?E5IN. 7 #97 M.41491 WNV.W TUN T 971.290,441¢ W4NVf,Kh-bE SION ST[1GICB.CCM 1 I AREA COST CALLENGER CENTER FD RENOVATION'. 12,000 SF RENOVATION COST'. 3.OM NEW FD EXPANSION'. 11,263 SF EXPANSION COST. 7.SM OVERALL AREA: 23,263 SF I OVERALL ROM COST: 10.SM CHALLENGER CENTER - FIRE STATION RENOVATION KENAI EMERGENCY SERVICES FACILITY DATE: 03.02.2026 XM 1�41 �� gp�OO1NA ALASKA weeo i 9W.a6V,�41n W4NVf,lfn-bE SlaN stuwoB.COM I PUBLIC PARKING 18 SPACES NEED 30 10 REMODEL ,1 ]55F 1 FD FD REMODEL EXPANSION 9.300 SF DISPATCH 1 10, 500 SF MI RG 1 O E CONF LOBBV I TRN CFF O TRAINING - RECE OFF UN NI z 1 I — p INT. FILE 1 TRAINING ® 0 ROOM O 0 CONEBNKRJ . , K 1 O INT. SQUAD DEC— TRN EXT E%T DIN STO s 2505E DAV A MIN O ICE REA WORK AREA 1 1 O O ROO STATIO A 350 SF GOM 1 A EMS N R TORAG APPARATUS BAYS ARMOR 1 APPARATUS APRON EEPING VIDENC PD EXPANSION 1 --' 4 OMSTE MEC�-I REW CTR L 8,4005E 1 ,. ICE BATH Ohl VIDENC I 1 S A F SAFE EI T V 1 — I EVIDENCE 1 VIDENCI BAY SAFE 1 WASH BAY 1 y 1 Q I K 1 K 1 POLICE STATION GARAGE BAYS o f i i 1 af I 1 SECURE STAFF PARKING 13I5 COVERED SECURE STAFF PARKING 1 I 14 15 COVERED I I 1 1 I I I1 AREA COST CALLENGER CENTER FDIPD RENOVATION: 19,4]5 SF RENOVATION COST: 4.SM NEW FDIPD EXPANSION: 18, 900 SF EXPANSION COST. 13.2M OVERALL AREA: 42,249 SF OVERALL ROM COST: 18.LM CHALLENGER CENTER - COMBINED STATION RENOVATION � a• KFNAI FMFRGFNCY SFRVICFS FACII ITY DATE: 03.02.2026 .. ZWM KPW WURMKV. SgLODrNA ALAI'M weep T907M.400 WWW,INA-DE5IO113Tuo106.cw KENAI CITY OF KENAI ORDINANCE NO. 3509-2026 Sponsored by: Administration AN ORDINANCE INCREASING ESTIMATED REVENUES AND APPROPRIATIONS IN THE GENERAL FUND — LEGISLATIVE DEPARTMENT, TO PROVIDE MATCHING FUNDS FOR A GRANT IN THE AMOUNT OF $10,380 TO THE ALASKA CHILDREN'S INSTITUTE FOR THE PERFORMING ARTS DBA TRIUMVIRATE THEATRE FOR PARKING LOT PAVING AND LANDSCAPING IMPROVEMENTS. WHEREAS, the Alaska Children's Institute for the Performing Arts dba Triumvirate Theatre constructed a performing arts facility in Kenai that serves youth and the broader community through theater productions, educational programs, and events; and, WHEREAS, the City previously supported the project through the donation of property and sand for construction of the theater facility; and, WHEREAS, Triumvirate Theatre has received a grant offer in the amount of $40,000 from the Richard L and Diane M Block Foundation to support parking lot paving and landscaping improvements; and, WHEREAS, the grant offer requires matching support to cover landscaping costs associated with the project; and, WHEREAS, the estimated total cost of the paving and landscaping improvements is $50,380, with $40,000 provided by the Richard L and Diane M Block Foundation and $10,380 requested from the City of Kenai as matching funds; and, WHEREAS, the improvements are required to meet site development requirements scheduled to be completed during the 2026 construction season; and, WHEREAS, a supplemental appropriation is necessary in order to meet the project timeline rather than waiting for inclusion in the Fiscal Year 2027 budget process; and, WHEREAS, the City Council directed the Administration at its February 25, 2026 meeting to prepare an ordinance providing matching funds for this project; and, WHEREAS, it is in the best interest of the City to appropriate an additional $10,380 to the Alaska Children's Institute forthe Performing Arts dba Triumvirate Theaterfor parking lot paving and landscaping improvements. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, AS FOLLOWS: Section 1. That the City Manager is authorized to expend funds in the amount of $10,380 as match to a $40,000 grant from the Richard L and Diane M Block Foundation to the Alaska Children's Institute for the Performing Arts dba Triumvirate Theater for parking lot paving and landscaping improvements. Section 2. That estimated revenues and appropriations be increased as follows: General Fund: Increase expenditures — Appropriation of Fund Balance $10,380 New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 3509-2026 Page 15 Page 2 of 2 Increase expenditures: Legislative — Grants to Agencies $10,380 Section 3. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application. Section 4. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect immediately upon enactment. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 1ST DAY OF APRIL, 2026. ATTEST: Michelle M. Saner, MMC, City Clerk Approved by Finance: Henry H. Knackstedt, Mayor Introduced: Enacted: Effective: March 18, 2026 April 1, 2026 April 1, 2026 New Text Underlined; [DELETED TEXT BRACKETED] L I000, City of Kenai MEMORANDUM K E N 4 210 Fidalgo Ave, Kenai, AK 99611-7794 1907.283.75351 www.kenai.city TO: Mayor Knackstedt and Council Members FROM: Terry Eubank, City Manager DATE: March 9, 2026 SUBJECT: Ordinance No. 3509-2026 - Increasing Estimated Revenues and Appropriations in the General Fund — Legislative Department, to Provide Matching Funds for a Grant in the Amount of $10,380 to the Alaska Children's Institute for the Performing Arts DBA Triumvirate Theatre for Parking Lot Paving and Landscaping Improvements. At its February 25, 2026 meeting, the Kenai City Council directed the Administration to prepare an ordinance providing supplemental funding in the amount of $10,380 to the Alaska Children's Institute for the Performing Arts dba Triumvirate Theatre. The funding would serve as a local match to secure a $40,000 grant from the Richard L and Diane M Block Foundation for parking lot paving and landscaping improvements at the recently constructed Triumvirate Theatre facility. The total estimated cost of the project is $50,380. The Block Foundation grant will cover the paving portion of the project, while the City's contribution would fund required landscaping improvements consistent with the approved site plans. The theater must complete these improvements within one year of its April 2026 opening. Because the work is scheduled for this spring construction season, a supplemental appropriation is necessary rather than waiting for consideration through the FY2027 budget process. Triumvirate Theatre has quickly become an important community asset, providing performing arts opportunities for youth and hosting productions and events that serve residents throughout the Kenai area. The City previously supported the project through the donation of property for the facility, which leveraged significant private and philanthropic investment to construct the theater. Approval of this ordinance would allow the organization to secure the foundation grant and complete the remaining site improvements required for the project. Thank you for your consideration. KENAI CITY OF KENAI ORDINANCE NO. 3510-2026 Sponsored by: Administration AN ORDINANCE AMENDING THE OFFICIAL ZONING MAP BY REZONING THE PROPERTY AT 10060 KENAI SPUR HIGHWAY FROM CONSERVATION TO SUBURBAN RESIDENTIAL ZONING DISTRICT. WHEREAS, the property located at 10060 Kenai Spur Highway and known as Kenai Peninsula Borough Parcel number 04501057 is currently zoned as Conservation (C); and, WHEREAS, Kenai Municipal Code 14.20.070 provides the intention of the Conservation Zone is to preserve open areas and as watersheds and wildlife reserves reserve lands for aircraft approach zones and other airport related uses; and, WHEREAS, the City applied to the Federal Aviation Administration (FAA) Alaska Region for a deed of release to remove FAA restrictions on the 81-acre parcel located east of the airport; and, WHEREAS, the Deed of Release was approved by the FAA removing the aforementioned restrictions and was recorded on September 15, 2025; and, WHEREAS, the City recognizes that upland portions of the larger parcel may be desirable for new residential development near existing subdivisions; and, WHEREAS, the City of Kenai is initiating an amendment to the Kenai Official Zoning Map through the Kenai Planning & Zoning Commission in accordance with KMC Section 14.20.270(b)(1)(B) - Amendment procedures; and, WHEREAS, the area proposed to be rezoned is much larger than the minimum of one acre required for a rezone; and, WHEREAS, the proposed amendment to the zoning ordinance is not substantially the same as any other unapproved proposed amendment submitted within the previous nine (9) months; and, WHEREAS, the rezone is consistent with the Imagine Kenai 2030 Comprehensive Plan and largely aligns with the Land Use Plan and addresses Goal 3 — Land Use: Develop land use strategies to implement a forward -looking approach to community growth and development; and, WHEREAS, at their regularly scheduled meeting held on February 25, 2026, the City of Kenai Planning and Zoning Commission recommended approval of the rezone, but recommended the property to be rezoned to Rural Residential 1 (RR1) instead of Suburban Residential as proposed by Administration. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, AS FOLLOWS: Section 1. Amendment of City of Kenai Official Zoning Map: That City of Kenai, Official Zoning Map is hereby amended as follows: Rezone parcel 04501057 (10060 Kenai Spur Highway) from Conservation (C) to Suburban Residential zoning district. New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 3510-2026 Page 2 of 2 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 30 days after enactment. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 1ST DAY OF APRIL, 2026. ATTEST: Michelle M. Saner, MMC, City Clerk Henry H. Knackstedt, Mayor Introduced: Enacted: Effective: March 18, 2026 April 1, 2026 May 1, 2026 New Text Underlined; [DELETED TEXT BRACKETED] L I000, City of Kenai MEMORANDUM K E N 4 210 Fidalgo Ave, Kenai, AK 99611-7794 1907.283.75351 www.kenai.city TO: Mayor Knackstedt and Council Members THROUGH: Terry Eubank, City Manager FROM: Kevin Buettner, Planning Director DATE: March 9, 2026 SUBJECT: Ordinance No. 3510-2026 —Amending the Official Zoning Map by Rezoning the Property at 10060 Kenai Spur Highway from Conservation to Suburban Residential Zoning District. The Administration requested a rezone of an 81-acre parcel located at 10060 Kenai Spur Highway from Conservation to the Suburban Residential (RS) zoning district. The RS zone is intended to provide for medium -density residential development in areas served by common utility systems while maintaining adequate light, air, privacy, and the residential character of neighborhoods. The parcel is adjacent to existing residential neighborhoods within walking, biking, or short driving distance to commercial services, including Walmart, Home Depot, and Safeway. In August 2025, the City applied to the Federal Aviation Administration (FAA) Alaska Region for a deed of release to remove FAA restrictions on the parcel, located east of the airport. The FAA approved the Deed of Release on September 15, 2025, and it was subsequently recorded with the State of Alaska. The release removed several restrictions and allows the land to be leased for other than aeronautical uses and also may be sold for fair market value if authorized by the City. Most of the parcel consists of lowland drainage areas and associated wetlands that are not suitable for development. However, approximately 10-15 acres of uplands along the eastern edge of the parcel, adjacent to existing residential neighborhoods, may be suitable for residential development. These upland areas are near existing City utilities located at the corner of Princess Lane and Magic Avenue. Under the current Conservation zoning, residential development is only allowed through a Conditional Use Permit. Rezoning the suitable upland areas to Suburban Residential would align with the adjacent residential zoning districts and allow low- to medium density housing in an area where utilities are available. The property is currently designated Parks, Recreation, and Open Space in the Imagine Kenai 2030 Comprehensive Plan. Most of the parcel would remain open space due to the drainage conditions, while the approximately 10-15 acres of upland area could support residential development, mostly on the eastern edge has upland portions that would be suitable following subdivision of the property. A Comprehensive Plan amendment is not required because residential uses are allowed in the Conservation zone, with a Conditional Use Permit. The City anticipates updating the Comprehensive Plan in the coming years, which may include a new Land Use Plan. The Comprehensive Plan supports this rezoning in the following identified goals: Goal 3 — Land Use: Develop land use strategies to implement a forward -looking approach to community growth and development. LU-3: Review existing zoning and subdivision codes to determine if they address current and future land uses adequately The City recently conducted a statistically valid community survey that identified housing as a significant concern. Seventy-four percent of respondents indicated Kenai has a housing affordability or affordability and availability problem, and 46.7 percent said housing affordability and availability should be a top priority over the next five years. Portions of this parcel were identified as one of the few remaining City -owned properties adjacent to existing utilities that could support residential development without requiring major new infrastructure. At its February 25, 2026 meeting, the Planning & Zoning Commission considered the Administration's request to rezone the parcel to Suburban Residential. Several members of the public spoke, raising concerns about potential impacts including development of wetlands, effects on nearby wells and septic systems, traffic and road conditions, and the possible extension of Magic Avenue. Others emphasized the ecological importance of the wetlands and ravine areas that serve as headwaters to a tributary of the Kenai River and salmon habitat. During discussion, staff clarified that only about 10-15 acres of upland near existing utilities would likely be suitable for residential development and that wetlands and lowland areas would remain protected. Development would still require subdivision, platting, and developer -funded infrastructure improvements. Following discussion, the Commission amended the proposal to recommend rezoning the property to Rural Residential 1 (RR-1) rather than Suburban Residential (RS), and the amended motion passed. The Administration believes rezoning to RR-1 will likely deter development of this property due to the required minimum lots size of 20,000 square feet compared to 7,200 square feet in the RS zone. Development costs, installation of roads and utilities, are significant and requiring lots of at least 20,000 square feet would make development uneconomical. The RR-1 zone also prohibits structures with more than five dwelling units and requires a conditional use permit for structures with more than three dwelling units. Because the property is within walking, biking, or short driving distance to commercial services, it is an ideal location for higher density development. While the application is not yet complete, the Administration is working with a developer who is interested in constructing a multifamily development in Kenai which may not be permitted in a RR-1 zone. Additionally, after further consideration, Administration believes that for purposes of future development of the property, this is an appropriate situation for creating a split zone. Only the developable uplands portion of the lot would be rezoned, and the lowland wetlands would remain conservation. This would facilitate a future subdivision for development. Page 2 of 3 The City of Kenai I www.kenai.city The Administration requests that this ordinance be considered non -routine and removed from the consent agenda and referred back to planning and Zoning. Administration recommends referring the request back to the Planning & Zoning Commission to reconsider the Administration's original request to amend the zoning to RS and to consider a split -zone approach. Under this approach, the upland portion of the parcel suitable for residential development would be rezoned to RS, while the larger portion of the property containing drainages and associated wetlands would remain in the Conservation zoning district. While split zones are generally not considered best practice, in this case a split zone will clearly delineate the portion of the lot suitable for development from what should remain open space and not be developed. A split zone will also negate the need to rezone the remaining parcel back to Conservation once subdivision of the developable portion is complete. Thank you for your consideration. Affnrhmnnfc Location Map FAA Deed of Release P&Z Resolution PZ2026-03 Staff Report PZ2026-03 Page 3 of 3 (Cj- The City of Kenai I www.kenai.city KENAI CITY OF KENAI ORDINANCE NO. 3510-2026 SUBSTITUTE Sponsored by: Administration AN ORDINANCE AMENDING THE OFFICIAL ZONING MAP BY REZONING A PORTION OF THE PROPERTY AT 10060 KENAI SPUR HIGHWAY FROM CONSERVATION TO SUBURBAN RESIDENTIAL ZONING DISTRICT. WHEREAS, the property located at 10060 Kenai Spur Highway and known as Kenai Peninsula Borough (KPB) parcel number 04501057 is currently zoned as Conservation (C); and, WHEREAS, Kenai Municipal Code 14.20.070 provides the intention of the Conservation Zone is to preserve open areas as watersheds and wildlife reserve lands for aircraft approach zones and other airport related uses; and, WHEREAS, the City of Kenai applied to the Federal Aviation Administration (FAA) Alaska Region for a deed of release to remove FAA restrictions on an 81-acre parcel located east of the airport; and, WHEREAS, the Deed of Release was approved by the FAA removing the aforementioned restrictions and was recorded on September 15, 2025; and, WHEREAS, the City recognizes that upland portions of the larger parcel may be desirable for new residential development near existing subdivisions; and, WHEREAS, the metes and bounds description of the portion of KPB 04501057 is as follows: Commencing at the center '/4 corner of Section 33, Township 6 North, Range 11 West, Seward Meridian as shown on Plat K-1447, Kenai Recording District, thence SO°05'00"E 660 feet to point No. 1, the TRUE POINT OF BEGINNING; thence S89055'00"W 410 feet to point No. 2; thence NO°05'00"W 1,980 feet to point No. 3; thence N89°55'00"E 410 Feet to point No. 4; thence S0005'00"E 1,980 feet more or less to point No. 1, the TRUE POINT OF BEGINNING, containing 18.636 acres; and, WHEREAS, the City of Kenai is initiating an amendment to the Kenai Official Zoning Map through the Kenai Planning & Zoning Commission in accordance with KMC Section 14.20.270(b)(1)(B) - Amendment procedures; and, WHEREAS, the area proposed to be rezoned is much larger than the minimum of one acre required for a rezone; and, WHEREAS, the proposed amendment to the zoning ordinance is not substantially the same as any other unapproved proposed amendment submitted within the previous nine (9) months; and, WHEREAS, the rezone is consistent with the Imagine Kenai 2030 Comprehensive Plan and largely aligns with the Land Use Plan and addresses Goal 3 — Land Use: Develop land use strategies to implement a forward -looking approach to community growth and development; and, WHEREAS, at their regularly scheduled meeting held on February 25, 2026, the City of Kenai Planning and Zoning Commission recommended approval of the rezone as presented at the time, but recommended the property to be rezoned to Rural Residential 1 (RR1) instead of Suburban Residential as proposed by Administration; and, New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 3510-2026 SUBSTITUTE Page 2 of 2 WHEREAS, at their regularly scheduled meeting held on March 18, 2026, the City Council referred Ordinance 3510-2026 to the Planning & Zoning Commission; and, WHEREAS, at their regularly scheduled meeting held on April 29, 2026, the Planning & Zoning Commission recommended NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, AS FOLLOWS: Section 1. Amendment of City of Kenai Official Zoning Map: That City of Kenai, Official Zoning Map is hereby amended as follows: Rezone the portion of parcel 04501057 (10060 Kenai Spur Highway) described as: Commencing at the center '/4 corner of Section 33, Township 6 North, Range 11 West, Seward Meridian as shown on Plat K-1447, Kenai Recording District, thence SO°05'00"E 660 feet to point No. 1, the TRUE POINT OF BEGINNING; thence S89°55'00"W 410 feet to point No. 2; thence N0005'00"W 1,980 feet to point No. 3; thence N89055'00"E 410 Feet to point No. 4; thence S0005'00"E 1,980 feet more or less to point No. 1, the TRUE POINT OF BEGINNING, containing 18.636 acres from Conservation (C) to Suburban Residential (RS) zoning district. 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 30 days after enactment. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 18T" DAY OF MARCH, 2026. ATTEST: Michelle M. Saner, MMC, City Clerk Henry H. Knackstedt, Mayor Introduced: March 4, 2026 Enacted: Effective: New Text Underlined; [DELETED TEXT BRACKETED] L I000, City of Kenai MEMORANDUM K E N 4 210 Fidalgo Ave, Kenai, AK 99611-7794 1907.283.75351 www.kenai.city TO: Mayor Knackstedt and Council Members THROUGH: Terry Eubank, City Manager FROM: Kevin Buettner, Planning Director DATE: March 20, 2026 SUBJECT: Ordinance No. 3510-2026 (substitute) — Amending the Official Zoning Map by Rezoning a Portion of the Property at 10060 Kenai Spur Highway from Conservation to Suburban Residential Zoning District. The Administration requested a partial rezone of an 81-acre parcel located at 10060 Kenai Spur Highway from Conservation to the Suburban Residential (RS) zoning district. The RS zone is intended to provide for medium -density residential development in areas served by common utility systems while maintaining adequate light, air, privacy, and the residential character of neighborhoods. The parcel is adjacent to existing residential neighborhoods within walking, biking, or short driving distance to commercial services, including Walmart, Home Depot, and Safeway. In August 2025, the City applied to the Federal Aviation Administration (FAA) Alaska Region for a deed of release to remove FAA restrictions on the parcel, located east of the airport. The FAA approved the Deed of Release on September 15, 2025, and it was subsequently recorded with the State of Alaska. The release removed several restrictions and allows the land to be leased for other than aeronautical uses and also may be sold for fair market value if authorized by the City. Most of the parcel consists of lowland drainage areas and associated wetlands that are not suitable for development. However, 18.636 acres of uplands along the eastern edge of the parcel, adjacent to existing residential neighborhoods, may be suitable for residential development. This area is described by metes and bounds as: Commencing at the center'/4 corner of Section 33, Township 6 North, Range 11 West, Seward Meridian as shown on Plat K-1447, Kenai Recording District, thence SO°05'00"E 660 feet to point No. 1, the TRUE POINT OF BEGINNING; thence S89055'00"W 410 feet to point No. 2; thence N0005'00"W 1,980 feet to point No. 3; thence N89055'00"E 410 Feet to point No. 4; thence SO°05'00"E 1,980 feet more or less to point No. 1, the TRUE POINT OF BEGINNING, containing approximately 18.636 acres. These upland areas are near existing City utilities located at the corner of Princess Lane and Magic Avenue. Under the current Conservation zoning, residential development is only allowed through a Conditional Use Permit. Rezoning the suitable upland areas to Suburban Residential would align with the adjacent residential zoning districts and allow low to medium density housing in an area where utilities are available. The property is currently designated Parks, Recreation, and Open Space in the Imagine Kenai 2030 Comprehensive Plan. Most of the parcel would remain open space due to the drainage conditions, while the 18.636 acres of upland area could support residential development, mostly on the eastern edge has upland portions that would be suitable following subdivision of the property. A Comprehensive Plan amendment is not required because residential uses are allowed in the Conservation zone, with a Conditional Use Permit. The City anticipates updating the Comprehensive Plan in the coming years, which may include a new Land Use Plan. The Comprehensive Plan supports this rezoning in the following identified goals: Goal 3 — Land Use: Develop land use strategies to implement a forward -looking approach to community growth and development. LU-3: Review existing zoning and subdivision codes to determine if they address current and future land uses adequately The City recently conducted a statistically valid community survey that identified housing as a significant concern. Seventy-four percent of respondents indicated Kenai has a housing affordability or affordability and availability problem, and 46.7 percent said housing affordability and availability should be a top priority over the next five years. Portions of this parcel were identified as one of the few remaining City -owned properties adjacent to existing utilities that could support residential development without requiring major new infrastructure. At its February 25, 2026 meeting, the Planning & Zoning Commission considered the Administration's request to rezone the parcel to Suburban Residential. Several members of the public spoke, raising concerns about potential impacts including development of wetlands, effects on nearby wells and septic systems, traffic and road conditions, and the possible extension of Magic Avenue. Others emphasized the ecological importance of the wetlands and ravine areas that serve as headwaters to a tributary of the Kenai River and salmon habitat. During discussion, staff clarified that only 18.636 acres of upland near existing utilities would likely be suitable for residential development and that wetlands and lowland areas would remain protected. Development would still require subdivision, platting, and developer -funded infrastructure improvements. Following discussion, the Commission amended the proposal to recommend rezoning the property to Rural Residential 1 (RR-1) rather than Suburban Residential (RS), and the amended motion passed. The Administration believes rezoning to RR-1 will likely deter development of this property due to the required minimum lots size of 20,000 square feet compared to 7,200 square feet in the RS zone. Development costs, installation of roads and utilities, are significant and requiring lots of at least 20,000 square feet would make development uneconomical. The RR-1 zone also prohibits structures with more than five dwelling units and requires a conditional use permit for structures with more than three dwelling units. Because the property is within walking, biking, or short driving distance to commercial services, it is an ideal location for higher density development. While the Page 2 of 3 The City of Kenai I www.kenai.city application is not yet complete, the Administration is working with a developer who is interested in constructing a multifamily development in Kenai which may not be permitted in a RR-1 zone. Additionally, after further consideration, Administration believes that for purposes of future development of the property, this is an appropriate situation for creating a split zone. Only the developable uplands portion of the lot would be rezoned, and the lowland wetlands would remain conservation. This would facilitate a future subdivision for development. On March 18, 2026, City Council referred the request back to the Planning & Zoning Commission to reconsider the Administration's original request to amend the zoning to RS and to consider a split -zone approach. Under this approach, the upland portion of the parcel suitable for residential development would be rezoned to IRS, while the larger portion of the property containing drainages and associated wetlands would remain in the Conservation zoning district. While split zones are generally not considered best practice, in this case a split zone using metes and bounds to delineate the portion of the larger parcel that would be considered for rezoning the portion of the lot suitable for development from what should remain open space and not be developed. A split zone will also negate the need to rezone the remaining parcel back to Conservation once subdivision of the developable portion is complete. This substitute ordinance will document the City Council action on March 18, 2026, as well as delineate the portion of the larger parcel to be considered by the Planning & Zoning Commission. The Administration also respectfully requests that you introduce this substitute ordinance and delay the public hearing until the May 6, 2026 City Council meeting to allow the Planning & Zoning Commission to hold their public hearing and make recommendation at the their April 29, 2026 meeting. Thank you for your consideration Attachments Location Map FAA Deed of Release P&Z Resolution PZ2026-03 Staff Report PZ2026-03 Page 3 of 3 (Cj- The City of Kenai I www.kenai.city R9 fW, "iali• 14: Location Map 81 Acre Parcel Ir- "e �• ■ 1 .. r i Area Suitable for DOCUMENT s.�saon 01:34 vm Pages: 1of. ELECTRONICALLY IIIIIVIIIIIIIIIIVIIIIIIIIIIVIIIVIIIIIIIIIIIIVIIIIIIVIIIIIIIIIIIIIVIII RECORDED DEED OF RELEASE This instrument, a Deed of Release, made by the United States of America, acting by and through the Chief, Airports Division, Alaskan Region, Federal Aviation Administration, under and pursuant to the powers and authority contained in the provisions of Public Law 81-311(63 Stat. 700), as amended, to the City of Kenai, a body politic under the laws of the State of Alaska, Witnesseth: -`-' - -`V1/HEREQS; The United States of America, acting by and through the Administrator of General Services under and pursuant to the powers and authority contained in the provisions of the Federal Property and Administrative Services Act of 1949 (83 Stat. 377) and the Surplus Property Act of 1944 (58 Stat. 765), as amended, and regulations and orders promulgated thereunder, by instrument entitled "Quitclaim Deed" and dated December 1,1963, did remise, release, and forever quitclaim to the City of Kenai, its successors and assigns, all rights, title and interests of the United States in and to certain real property located near Kenai, Alaska, under and subject to the reservations, exceptions, restrictions, and conditions contained in the Deed; and �e,46ctcZ-4 44eS 303-3tZ Ki_A "' R400eCI rq N'076/—, WHEREAS, the City of Kenai has requested the Administrator of the Federal Aviation Administration to release an area of land hereinafter described from all conditions, reservations, and restrictions contained in said "Quitclaim Deed" to permit sale or long-term lease of the property for non -airport use, and has by appropriate resolution No. 70-5 dated March 18, 1970, obligated itself to devote the revenues received from the lease or sale of the hereinafter described property exclusively for the development, - — - --- - _ - - — mprovement;operation, or maintenance of the Kenai Municipal Airport; and WHEREAS, The Administrator or authorized delegate of the Federal Aviation Administration, under and pursuant to the powers and authority contained in Public Law 81-311(63 Stat. 700) is authorized to grant a release from any of the terms, conditions, reservations, and restrictions contained in, and to convey, quitclaim, or release any right or interest reserved to the United States by, any instrument of disposal under which surplus airport property was conveyed to a non -Federal public agency pursuant to Section 13 of the Surplus Property Act of 1944 (58 Stat. 765); and WHEREAS, the Administrator of the Federal Aviation eRecorded Document Administration has determined that said land no longer serves the purpose for which it was transferred and, that such property can be used, leased, sold, or disposed of by the City of Kenai for other than airport Purposes without materially and adversely affecting the development, improvement, operation, or maintenance of the Kenai Municipal Airport; and WHEREAS, the City of Kenai covenants and agrees as follows:. (1) To .use the revenues received from the sale or lease of the hereinafter -described property, exclusively for the development, improvement; operation of the Kenai Municipal Airport. (2) To restrict the height of structures, objects of natural growth and other obstacles on the. -- -hereinafter-described.realproperty49-a freight of not more than 242 feet -above mean.sea-.level;,--, (3) To prevent any use of the real property.hereinafter described which would interfere with the landing or taking off aircraft at. the Kenai Municipal Airport or. otherwise .Constitute an airport hazard. NOW, THEREFORE, for and in consideration of the above -expressed recitals and of the benefits to accrue to the United States: and to civil aviation, the United States of America, upon inclusion by the City of Kenai in a Lease or Instrument of Transfer conveying title to the hereinafter described real property of provisions as follows: (1) That the City of Kenai reserves unto itself, successors, transferees; and assigns, for the use and benefit of the public a right of flight for the passage of aircraft in the space above the.surface of the real property hereinafter described, together with the right to cause in said air space such noise as maybe inherent in the operation of aircraft, now known or hereafter used, for navigation of or flight in the said airspace; and for use of said airspace for landing on taking off from or operating on Kenai Municipal Airport; (2) That the Grantee expressly agrees for itself, heirs, executors, administrators, successors, transferees, and assigns to restrict the height of structures, objects of natural growth and other obstructions on the hereinafter described real property to a height of not more than 242 feet above mean sea level. (3) That the Grantee expressly agrees for itself, heirs, executors, administrators, transferees, and assigns to prevent any use of the herein- after described real property which would interfere with landing or taking off of aircraft at the Kenai Municipal Airport or otherwise constitute an airport hazard. 2of4 eRecorded Document 302-2025-006725-0 (4) All covenants heretofore stated shall run with the land and shall inure to the benefit of, and be binding upon the heirs, executors, administrators, successors, transferees, and assigns of the parties hereto. Hereby releases the said real property from the conditions, reservations, and restrictions as contained in the above -mentioned Instrument of Transfer from the United States of America to the City of Kenai dated December 1,1963, which real property is described as follows: T6N R11W Section 33 Seward Meridian KN W1/2 lying N of Kenai Spur Highway & East of Marathon Road excluding all Baron Park Subs & Kenai Industrial Park Sub. By its acceptance of this Deed of Release the City of Kenai covenants and agrees for itself, successors, transferees, and assigns, to comply with and observe all of the conditions and limitations hereof, which are expressly limited to the above- described real property. IN WITNESS WHEREOF, the United States of America has caused this Deed of Release to be executed as of the _LLday of Se levy 2025. UNITED STATES OF AMERICA By Accepted: CITY OF KENAI By Ter Eubank City Manager Laurie Suttmeier Division Manager A rrp-orts DDivision Alaskan Region 3of4 eRecorded Document 302-2025-006725-0 State of Alaska 3rd ALASKA NOTARY ACKNOWLEDGEMENT Judicial District of the Municipality of Anchorage On this 10th day of September in the year 2025 ,,before me, the undersigned notary public, personally appeared: Laurie J. Suttmeier known to me to be the person whose name is subscribed to the within instrument and acknowledged that she executed the same for the purposes therein contained. �. -•enson, Public 200601001 Commission Number My Commission Expires: with office Pie,�wrn -�D'. pv�-e- I%ey9t; eRecorded Document =o: NoTARr �= ' AUBOG 11111111000 (Seal) IIIIIIIIIIIIIIIIIIIIIIIIIIII 4of4 302-2025-006725-0 CITY OF KENAI PLANNING AND ZONING COMMISSION RESOLUTION PZ2026-03 A RESOLUTION RECOMMENDING THE KENAI CITY COUNCIL APPROVE THE REZONE FROM CONSERVATION (C) TO RURAL RESIDENTIAL 1 (RR-1) ZONING DISTRICT FOR THE FOLLOWING PROPERTIES AND AS DEPICTED ON THE ATTACHED BOUNDARY MAP. Parcel No. Address Lot Size Legal Description T 6N R 11W SEC 33 SEWARD 04501057 10060 Kenai Spur Hwy. 81.0 acres MERIDIAN KN W1/2 LYING N OF KENAI SPUR HWY & E OF MARATHON RD EXCL ALL BARON PARK SUBS & KENAI INDUSTRIAL PARK SUB WHEREAS, the property located at 10060 Kenai Spur Highway and known as Kenai Peninsula Borough Parcel number 04501057, as described above, is currently zoned as Conservation (C); and, WHEREAS, Kenai Municipal Code (KMC) 14.20.070 intends the Conservation Zone to apply to areas which should be preserved primarily as open areas and as watersheds and wildlife reserves. Airport and related uses have been included in this zone to allow for the reservation of aircraft approach zones; and, WHEREAS, the City of Kenai applied to the Federal Aviation Administration (FAA) Alaska Region for a deed of release to remove FAA restrictions on an 81-acre parcel located east of the airport; and, WHEREAS, the Deed of Release was approved by the FAA removing the aforementioned restrictions and was recorded on September 15, 2025; and, WHEREAS, the City recognizes that upland portions of the larger parcel may be desirable for new residential development near existing subdivisions; and, WHEREAS, the City of Kenai is initiating an amendment to the Kenai Official Zoning Map through the Kenai Planning & Zoning Commission in accordance with KMC Section 14.20.270(b)(1)(B) - Amendment procedures; and, WHEREAS, the area proposed to be rezoned contains a minimum of one (1) acre (excluding street or alley rights -of -way); and, WHEREAS, the proposed amendment to the zoning ordinance is not substantially the same as Resolution No. PZ2026-03 Page 2 of 3 any other unapproved proposed amendment submitted within the previous nine (9) months; and, WHEREAS, a map has been included of the proposed rezone area; and, WHEREAS, the City of Kenai Planning and Zoning Department conducted a duly advertised public hearing, following requirements outlined in Kenai Municipal Code 14.20.280 for public hearings and notifications. WHEREAS, the Planning and Zoning Commission finds: The current zoning district, Conservation (C) is intended to apply to areas which should be preserved primarily as open areas and as watersheds and wildlife reserves. Airport and related uses have been included in this zone to allow for the reservation of aircraft approach zones. The existing Conservation zone is not the preferred land use for this area as there are no longer FAA restrictions on the property and upland portions of the parcel may be desirable for new residential development. 2. The rezone to Rural Residential 1 Zone would allow for low -density residential development adjacent to existing residential neighborhoods within walking, biking, or short driving distance to commercial services. City utilities are located at the southeast corner of the parcel. 3. The existing land use classification states that the area is to be Parks, Recreation, and Open Space. A majority of the parcel will remain as open space, as it lies within a large drainage area and is not suited for development. Approximately 10-15 acres of the parcel, mostly on the eastern edge has upland portions that would be suitable for residential development, but the 81-acre parcel would require subdivision prior to development. 4. The proposed rezone to RR-1 would align with the current low density residential character of the adjoining neighborhood. NOW, THEREFORE, BE IT RECOMMENDED BY THE PLANNING AND ZONING COMMISSION OF THE CITY OF KENAI, ALASKA: Section 1. That Kenai City Council approve the rezone request for the property located at 10060 Kenai Spur Highway from Conservation (C) to Rural Residential 1 (RR-1) zoning district. Section 2. That the Commission will forward its written recommendation to the Kenai City Council, along with all certified minutes and public records relating to the proposed amendment. PASSED BY THE PLANNING AND ZONING COMMISSION OF THE CITY OF KENAI, ALASKA, THIS 25TH DAY OF FEBRUARY, 2026. ..e d anne Keaton, Chair Resolution No. PZ2026-03 Page 3 of 3 ATTEST: C A, LL Lo an Parki, Deputy City Clerk j V 1� C171V STAFF REPORT PLANNING &.ZONING DEPARTMENT KENAI TO: Planning and Zoning Commission FROM: Kevin Buettner, Planning Director DATE: February 17, 2026 SUBJECT: Resolution PZ2026-03 — Rezone One 81-Acre Parcel from Conservation to Suburban Residential (RS) Zoning District Request The applicant is requesting a rezone of one (1) parcel from Conservation to the Suburban Residential (RS) Zoning District. Staff Adopt Resolution PZ2026-03 recommending approval of a Recommendation rezone of one (1) parcel from Conservation to the Suburban Residential (RS) Zoning District. Applicants: City of Kenai Attn: Planning & Zoning Department/Lands Administration 210 Fidalgo Ave. Kenai, AK 99611 Parcel No. Address Lot Size 04501057 10060 Kenai Spur Hwy. 81 acres Legal Description: T 6N R 11W SEC 33 SEWARD MERIDIAN KN W1/2 LYING N OF KENAI SPUR HWY & E OF MARATHON RD EXCL ALL BARON PARK SUBS & KENAI INDUSTRIAL PARK SUB Current Zoning: Conservation (C) Proposed Zoning: Suburban Residential (RS) Current Land Use Vacant Land Land Management Plan: Mixed — Dispose / Retain Land Use Plan Parks, Recreation, & Open Space SUMMARY The City of Kenai is seeking to rezone one 81-acre parcel located at 10060 Kenai Spur Highway from Conservation to the Suburban Residential (RS) zoning district. The purpose of the rezone is to allow for low- to medium -density residential development adjacent to existing residential neighborhoods within walking, biking, or short driving distance to commercial services. ANALYSIS Pursuant to KMC Section 14.20.270, the initiation of a Zoning Map Amendment may be initiated by the Kenai Planning & Zoning Commission. This parcel is wholly owned by the City of Kenai. The area to be rezoned contains far above the minimum of one (1) acre (excluding street or alley rights -of -way) unless the amendment enlarges an adjacent district boundary. Existinq and Proposed Zoning The existing zoning is Conservation (C) and the intent as outlined in KMC Section 14.20.070 states the following: The C-Zone is intended to apply to areas which should be preserved primarily as open areas and as watersheds and wildlife reserves. Airport and related uses have been included in this zone to allow for the reservation of aircraft approach zones. It is intended that this zone shall apply mainly to publicly owned land. FindingR In August 2025, the applied to the Federal Aviation Administration (FAA) Alaska Regionfor a deed of release to remove FAA restrictions on an 81-acre parcel located east of the airport. On September 15, 2025, the Deed of Release was approved by the FAA and recorded with the State of Alaska. This deed of release removed a number of restrictions and allows this land to be leased for other than aeronautical uses, and also may be sold for fair market prices, if authorized by the City. Furthermore, the proposed rezone area contains a large drainage area throughout most of the western sections of the parcel. Upland portions along the eastern side of the parcel are adjacent to existing residential neighborhoods. Approximately 10-15 acres of these uplands are suitable for residential development. Conservation only allows for residential development with a Conditional Use Permit. The proposed zoning is Suburban Residential and the intent as outlined in KMC Section 14.20.090 states the following: The RS Zone is intended to provide for medium density residential development in areas which will be provided with common utility systems. The specific intent in establishing this zone is: (1) To separate residential structures to an extent which will allow for adequate light, air, and privacy; (2) To prohibit uses which would: (A) Violate the residential character of the environment, (8) Generate heavy traffic in predominantly residential areas. I . _ : The rezone to RS zone would align with the adjacent residential zoning districts. As mentioned above, approximately 10-15 acres of upland portions of the parcel would be suitable for residential development. Suburban Residential is appropriate in areas where there are common utility systems, in this case City utilities are available at the corner of Princess Resolution No. PZ2026-03 Rezone from Conservation (C) to Suburban Residential (RS) 10060 Kenai Spur Highway Page 2 of 4 Lane and Magic Avenue. This is on the southeastern corner of one of the upland portions. Comprehensive Plan — Land Use Classification The existing land use classification is be Parks, Recreation, and Open Space and the intent as outlined in the Imagine Kenai 2030 Comprehensive Plan ("Comprehensive Plan") states the following: Intended for those public recreation facilities, as well as undeveloped lands that provide for the conservation of natural or scenic resources. These areas can be used for a variety of passive and active outdoor and indoor sports and recreational activities. Areas that may be suitable for future natural resource development may be included in this category. Findings: The existing land use classification states that the area is to be Parks, Recreation, and Open Space. A majority of the parcel will remain as open space, as it lies within a large lowland drainage area and is not suited for development. Approximately 10-15 acres of the parcel, mostly on the eastern edge has upland portions that would be suitable for residential development, but the 81-acre parcel would require subdivision prior to development. An amendment to the land use map in the Comprehensive Plan is not currently required, as residential uses are allowable in Conservation zone, albeit as conditional uses. The City anticipates updating the Comprehensive Plan within a couple years, and a new Land Use Plan may be developed as a part of this process. The Comprehensive Plan supports this rezoning in the following identified goal: Goal 3 — Land Use: Develop land use strategies to implement a forward -looking approach to community growth and development. • LU-3: Review existing zoning and subdivision codes to determine if they address current and future land uses adequately. Findings: The proposed rezone to RS would align largely with the intent of keeping a majority of the lowland drainage areas protected, as the parcel would be subdivided and with the City of Kenai retaining ownership. This would also align with supporting Workforce Development by allowing for new low to medium density residential development in appropriate areas served by City utilities. Existing Use In the proposed rezone area, the land is vacant. Findings: The proposed rezone to RS zone would allow for upland portions of the parcel, largely on the eastern side, would allow for low- to medium density residential development adjoining and existing residential neighborhood, which has been identified as a crucial need for the City. Resolution No. PZ2026-03 Rezone from Conservation (C) to Suburban Residential (RS) 10060 Kenai Spur Highway Page 3 of 4 PUBLIC NOTICE Pursuant to Kenai Municipal Code 14.20.280 notices of the public hearing for the rezone were mailed to property owners within a three hundred -foot (300') periphery of the subject properties. City staff published notice of the public hearing in the Peninsula Clarion, and notification was posted. No public comments have been received as -of -date. 7AFF RECOMMENDATION Based on the findings and analysis in this staff report, Staff recommends the Planning & Zoning Commission recommend approval of the rezone request for the property located at 10060 Kenai Spur Highway from Conservation (C) to Suburban Residential (RS) zoning district. Planning & Zoning Commission's recommendation will be forwarded to City Council for consideration. ATTACHMENTS Zoning Map — Existing and Proposed Application Aerial Map Deed of Release Resolution No. PZ2026-03 Rezone from Conservation (C) to Suburban Residential (RS) 10060 Kenai Spur Highway Page 4 of 4 KENAI CITY OF KENAI RESOLUTION NO. 2026-17 Sponsored by: Administration A RESOLUTION AUTHORIZING A CONTRACT AWARD FOR THE 2026 WATER TREATMENT PUMP HOUSE CONSTRUCTION. WHEREAS, an Invitation to Bid was released on February 5, 2026 with bids due on March 18, 2026 for the 2026 Water Treatment Pump House Construction project; and, WHEREAS, four bids were received Contractor Cost UIC Construction $3,022,200 Orion Construction, Inc. $3,080,000 Peninsula Construction $3,142,500 Blazy Construction $3,527,970; and, WHEREAS, UIC Construction was the lowest bidder with a total cost of $3,022,200 for the base bid and two additive alternates; and, WHEREAS, the bids were determined to be responsive and responsible; and, WHEREAS, this purchase will construct a new pump house at the Water Treatment Plant with a backup generator, new water mains, electronic gate access and pressure tanks; and, WHEREAS, it is in the best interest of the City to award the contract to UIC Construction. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1. That the City Manager is authorized to execute a contract with UIC in the amount of $3,022,200 for the 2026 Water Treatment Pump House Construction project. Section 2. That this Resolution takes effect immediately upon passage. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 1ST DAY OF APRIL, 2026. Henry H. Knackstedt, Mayor ATTEST: Michelle M. Saner, MMC, City Clerk Approved by Finance: J& New Text Underlined; [DELETED TEXT BRACKETED] L I000, City of Kenai MEMORANDUM K E N 4 210 Fidalgo Ave, Kenai, AK 99611-7794 1907.283.75351 www.kenai.city TO: Mayor Knackstedt and Council Members THROUGH: Terry Eubank, City Manager FROM: Lee Frey, Public Works Director DATE: March 24, 2026 SUBJECT: Resolution No. 2026-17 - Authorizing a Contract Award for the 2026 Water Treatment Pump House Construction. This memo requests Council's approval to award a contract for the construction of the new Water Treatment Pump House to UIC Construction. The project was released for bidding and four bids were received. Bids received are as follows: Contractor Total Cost UIC Construction $3,022,200 Orion Construction, Inc. $3,080,000 Peninsula Construction $3,142,500 Blazy Construction $3,527,970 UIC Construction was the lowest bid for the project with a total cost of $3,022,200 for the base bid and both additive alternates. The project consists of construction of a new pump house at the water treatment plant with a backup generator and installation of new water mains to improve distribution. Additive alternate one will include construction of new electronic gate access to the facility and additive alternate two will include installation of pressure tanks in Well House #3 to assist in maintaining system pressure. Award of this agreement is in the best interest of the City. Council's approval is respectfully requested. KENAI CITY COUNCIL — REGULAR MEETING Page 42 MARCH 18, 2026 — 6:00 P.M. KENAI CITY COUNCIL CHAMBERS 210 FIDALGO AVE., KENAI, AK 99611 MAYOR HENRY H. KNACKSTEDT, PRESIDING MINUTES A. CALL TO ORDER A Regular Meeting of the Kenai City Council was held on March 18, 2026, in City Hall Council Chambers, Kenai, AK. Mayor Knackstedt called the meeting to order at approximately 6:00 p.m. 1. Pledge of Allegiance Mayor Knackstedt led those assembled in the Pledge of Allegiance. 2. Roll Call There were present: Henry Knackstedt, Mayor Sovala Kisena Glenese Pettey A quorum was present. Absent: Phil Daniel Also in attendance were: Victoria Askin, Vice Mayor Bridget Grieme Deborah Sounart **Josh Bolling, Student Representative Terry Eubank, City Manager Scott Bloom, City Attorney David Swarner, Finance Director Kevin Buettner, Planning Director Stephanie Randall, Human Resource Director Katja Wolf, Library Director Ryan Grimm, Police Sergeant Lee Frey, Public Works Director Shellie Saner, City Clerk 3. Agenda and Consent Agenda Approval MOTION: Vice Mayor Askin MOVED to approve the agenda and consent agenda with the requested revisions. Council Member Grieme SECONDED the motion. The items on the Consent Agenda were read into the record. Mayor Knackstedt opened the floor for public comment on consent agenda items; there being no one wishing to be heard, the public comment period was closed. UNANIMOUS CONSENT was requested. VOTE: There being no objection; SO ORDERED. *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 City of Kenai Council Meeting Page 1 of 6 March 18, 2026 Page 43 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 - None. C. SCHEDULED PUBLIC COMMENTS - None. D. UNSCHEDULED PUBLIC COMMENTS - None. E. PUBLIC HEARINGS 1. Ordinance No. 3508-2026 - Accepting and Appropriating Donations to the Kenai Community Library for Library Materials, Equipment, and Programming. (Administration) MOTION: Vice Mayor Askin MOVED to enact Ordinance No. 3508-2026. Council Member Pettey SECONDED the motion. Mayor Knackstedt opened the floor for public comment. There being no one wishing to be heard, the public comment period was closed. Clarification was provided regarding the source of donations; and staff expressed appreciation for the donations. VOTE: YEA: Askin, Pettey, Kisena, Knackstedt, Grieme NAY: None ABSENT: Daniel, Sounart "Student Representative Bolling: Yea MOTION PASSED. 2. Resolution No. 2026-15 - Authorizing the City Manager to Enter into a Memorandum of Agreement Between the City of Kenai and the Alaska Department of Transportation & Public Facilities for the Wildwood Drive Pavement Preservation Project. (Administration) MOTION: Vice Mayor Askin MOVED to adopt Resolution No. 2026-15. Council Member Grieme SECONDED the motion. Mayor Knackstedt opened the floor for public comment. There being no one wishing to be heard, the public comment period was closed. It was reported that Wildwood Drive is labeled one of the worst roads in Kenai; the agreement is similar to the agreement when Beaver Loop was done; and this project was going to be combined with the Spur Highway Reconstruction Phase II Project. Clarification was provided that the timeline would be dependent on how this project would be incorporated into the existing project. UNANIMOUS CONSENT was requested. VOTE: There being no objection; SO ORDERED. 3. Resolution No. 2026-16 - Authorizing the Purchase of Permitting Software. (Administration) MOTION: City of Kenai Council Meeting Page 2 of 6 March 18, 2026 Vice Mayor Askin MOVED to adopt Resolution No. 2026-16. Council Member Grieme SECONDED the motion. Mayor Knackstedt opened the floor for public comment. There being no one wishing to be heard, the public comment period was closed. It was reported the permitting software would be implemented in multiple departments; web -based portal for applications would be available through it; the software integrated with our records management archives; and was compatible with the financial software, supporting online payments. Clarification was provided that paper submissions would still be accepted; however, the goal would be full transition to use of the web portal. UNANIMOUS CONSENT was requested. VOTE: There being no objection; SO ORDERED. F. MINUTES 1. *Regular Meeting of March 4, 2026. (City Clerk) Approved by the consent agenda. G. UNFINISHED BUSINESS - None. H. NEW BUSINESS 1. *Action/Approval - Bills to be Ratified. (Administration) Approved by the consent agenda. 2. *Action/Approval - Purchase Orders and Purchase Order Amendments Requiring Council Approval in Accordance with KMC 7.15.020. (Administration) Approved by the consent agenda. 3. *Action/Approval - Confirming the Appointment of the Election Precinct Boards for the April 14, 2026 Special City Election. (City Clerk) Approved by the consent agenda. 4. *Action/Approval - Special Use Permit to Rebecca Boettcher, DBA: The Fishing Grounds, LLC for Operation of a Snack/Gift Shop inside the Kenai Municipal Airport. (Administration) Approved by the consent agenda. 5. *Action/Approval - Second Extension to the Agreement with Guardian Security Systems, Inc. for Security Guard Services at the Kenai Municipal Airport. (Administration) Approved by the consent agenda. 6. *Action/Approval - Confirmation of Mayoral Nominations for a Partial Term Appointment of Ginger Kaona and Patricia (Patty) Segura to the Council on Aging Commission. (Knackstedt) Approved by the consent agenda. 7. *Ordinance No. 3509-2026 - Increasing Estimated Revenues and Appropriations in the General Fund - Legislative Department, to Provide Matching Funds for a Grant in the Amount of $10,380 to the Alaska Children's Institute for the Performing Arts DBA Triumvirate Theatre for Parking Lot Paving and Landscaping Improvements. (Administration) City of Kenai Council Meeting Page 3 of 6 March 18, 2026 Introduced by the consent agenda and Public Hearing set for April 1, 2026. 8. Ordinance No. 3510-2026 - Amending the Official Zoning Map by Rezoning the Property at 10060 Kenai Spur Highway from Conservation to Suburban Residential Zoning District. (Administration) MOTION: Vice Mayor Askin MOVED to introduce Ordinance 3510-2026, refer the ordinance to the March 25, 2026 Planning & Zoning Commission meeting for recommendation from the Commission on an alternate ordinance at the recommendation of the administration and to schedule the public hearing for April 1, 2026. Council Member Grieme SECONDED the motion. UNANIMOUS CONSENT was requested on the motion. VOTE: There being no objection; SO ORDERED. 9. Discussion/Action - Recommending a Motion to Authorize Administration to Provide a Health Insurance Premium Holiday as a Result of a Surplus Refund. (Administration) MOTION: Vice Mayor Askin MOVED to approved the Administration's proposal to provide a one -month, employee healthcare premium holiday in May 2026. Council Member Grieme SECONDED the motion. It was reported that providing a one -month premium holiday to employees was the recommended method for distributing a portion of the refund to employees. There was discussion in support of the premium holiday; and appreciation was stated for the creative approach. UNANIMOUS CONSENT was requested on the motion. VOTE: There being no objection; SO ORDERED. I. COMMISSION / COMMITTEE REPORTS 1. Council on Aging Commission Vice Mayor Askin reported on the March 12, 2026 work session, next meeting April 14, 2026. 2. Airport Commission Vice Mayor Askin reported on the March 12, 2026 meeting, next meeting April 14, 2026. 3. Parks and Recreation Commission Council Member Grieme reported the March 5, 2026 meeting was cancelled, next meeting April 2, 2026. 4. Planning and Zoning Commission Council Member Kisena reported on the March 11, 2026 meeting, next meeting March 25, 2026. 5. Beautification Commission No report, next meeting April 14, 2026. J. REPORT OF THE MAYOR Mayor Knackstedt reported on the following: • Stated his appreciation for the coordinated response by the Kenai Police Department, Kenai Fire Department and the Alaska State troopers in response to the recent standoff on the Spur Highway. • Attendance at the Employee Appreciation Event, thanking Deputy Clerk Parks for serving as the emcee. City of Kenai Council Meeting Page 4 of 6 March 18, 2026 Page 46 • Reminded everyone of the upcoming April 14, 2026 Special Election; and the upcoming March 25, 2026 Special City Council Meeting. K. ADMINISTRATION REPORTS 1. City Manager - City Manager Eubank reported on the following: • Staffing and recruitment updates: Matt Kleiss has accepted the Airport Manager position; welcomed new Firefighter Seth Hagan; and currently recruiting for public safety dispatcher, part time administrative assistant for the Police Department and multiple seasonal positions. • Nine employees were recognized for service milestones during the Employee Appreciation event; and three of those were recognized for more than 20-years of service. • Department heads, City Attorney, City Manager, and City Clerk recently attended a Clifton Strengths leadership training session, focused on teamwork and collaboration. • Five bids were received for the sealed bid auction on four parcels off of Beaver Loop road; and proceeds were just north of $1.1 million. • A meeting was scheduled with KPB Mayor Micciche, other City Managers and Mayors to discuss keeping the pools open. • Representatives from Horizon Air came to Kenai to thank the City for their assistance during a prior diversion of a flight; staff took the opportunity to advocated for direct services to the Lower 48. • Budget meetings with Department heads were underway. • Annual removal of snow from the Kenai Central High School field and track has been completed by our Streets staff. • Special flight approach documentation related to the Runway Rehabilitation project has been submitted to the FAA and is currently under review. • Four bids were received on the Pump House Project; and the bids were below the engineer's estimate. • Successful transition and implementation to the Bid Express platform. 2. City Attorney - No report. 3. City Clerk - City Clerk Saner reported on the following: • Sample postcard mailers for the upcoming Special Election were provided; official mailers will be distributed to voters later in the week. • Absentee voting scheduled to open March 30, 2026. L. ADDITIONAL PUBLIC COMMENTS 1. Citizen Comments (Public comments limited to (5) minutes per speaker) 2. Council Comments Student Representative Bolling congratulated Kenai Central High School's boys' and girls' varsity basketball teams for qualifying for the state championships; thanked the Kenai Police and Fire Departments for assisting with team sendoff; and congratulated the Nordic Ski Team on their achievements. Council Member Grieme wished the KCHS boys' and girls' basketball teams good luck; congratulated the KCHS cheer team; Deputy Clerk Parks on receiving a scholarship from the Alaska Association of Municipal Clerks; the Ice Dogs hockey teams on their wins; reminded the public of the Kenai Animal Control rabies and microchip clinic; and expressed appreciation for the library "Crafternoon" event. City of Kenai Council Meeting Page 5 of 6 March 18, 2026 Page 47 Council Member Kisena congratulated Deputy Clerk Parks; the Ice Dogs hockey teams; thanked the staff and contributors for the Employee Appreciation event; wished KPHA teams' good luck at the state tournament; and thanked Parks & Recreation for organizing the event. Council Member Pettey noted her attendance at the Employee Appreciation event, thanking staff and employees; reminded everyone of the upcoming March for meals fundraiser; and the upcoming Triumvirate Theater dinner event. Vice Mayor Asking reminded everyone about the upcoming Choose Respect Walk; congratulated Deputy Clerk Parks on his scholarship; attendance at the Employee Appreciation event; wished the KCHS boys' and girls' basketball teams, cheer teams, Nordic Ski Teams and Ice Dogs good luck an congratulated them on their achievements; and reminded everyone to use caution due to icy conditions. M. EXECUTIVE SESSION - None. N. PENDING ITEMS - None. O. ADJOURNMENT P. INFORMATIONAL ITEMS - None. There being no further business before the Council, the meeting was adjourned at 6:58 p.m. I certify the above represents accurate minutes of the Kenai City Council meeting of March 18, 2026. Michelle M. Saner, MMC City Clerk ** The student representative may cast advisory votes on all matters except those subject to executive session discussion. Advisory votes will not affect the outcome of the official council vote. Advisory votes will be recorded in the minutes. A student representative may not move or second items during a council meeting. City of Kenai Council Meeting Page 6 of 6 March 18, 2026 KENAI CITY COUNCIL — SPECIAL MEETING Page 48 MARCH 25, 2025 — 5:00 P.M. KENAI CITY COUNCIL CHAMBERS 210 FIDALGO AVE., KENAI, AK 99611 MAYOR HENRY H. KNACKSTEDT, PRESIDING MINUTES A. CALL TO ORDER A Special Meeting of the Kenai City Council was held on March 25, 2025, in City Hall Council Chambers, Kenai, AK. Mayor Knackstedt called the meeting to order at approximately 5:00 p.m. 1. Pledge of Allegiance Mayor Knackstedt led those assembled in the Pledge of Allegiance. 2. Roll Call There were present: Henry Knackstedt, Mayor Sovala Kisena Phil Daniel A quorum was present. Absent: Glenese Pettey 3. Agenda Approval Victoria Askin, Vice Mayor Bridget Grieme Deborah Sounart (remote participation) MOTION: Vice Mayor Askin MOVED to approve the agenda. Council Member Grieme SECONDED the motion. UNANIMOUS CONSENT was requested. VOTE: There being no objection; SO ORDERED. B. EXECUTIVE SESSION 1. Review and Discussion of the City Attorney's Evaluation which May be a Subject that Tends to Prejudice the Reputation and Character of the City Attorney (AS 44.62.310(C)(2)]. 2. Review and Discussion of the City Manager's Evaluation which May be a Subject that Tends to Prejudice the Reputation and Character of the City Manager (AS 44.62.310(C)(2)]. 3. Review and Discussion of the City Clerk's Evaluation which May be a Subject that Tends to Prejudice the Reputation and Character of the City Clerk (AS 44.62.310(C)(2)]. MOTION: Vice Mayor Askin MOVED to enter into executive session to review and discuss the annual evaluation of the City Attorney, City Manager, and City Clerk which may be a subject that tends to prejudice the reputation and character of the City Attorney, City Manager, and City Clerk. [AS 44.62.310(C)(2)]. Mr. Bloom, Mr. Eubank, and Ms. Saner have elected to have the discussion regarding their evaluations take place in executive session. The executive session will include Mayor Knackstedt and City Council Members; City Attorney Bloom will be included if and when the Council requests his presence; and City Manager Eubank will be included if and when the Council requests his presence; City Clerk Saner will be included if and when the Council requests her presence. Council Member Grieme SECONDED the motion. City of Kenai Council Meeting Page 1 of 2 April 15, 2025 MOTION: Vice Mayor Askin MOVED to reconvene into regular session. Council Member Grieme SECONDED the motion. UNANIMOUS CONSENT was requested. VOTE: There being no objection; SO ORDERED. [Clerk's Note: The Council entered into executive session at 5:02 p.m. and reconvened into regular session at 7:15 P.M.] It was reported that Council entered into executive session and discussed the City Attorney, City Manager, and City Clerk evaluations. C. ADJOURNMENT There being no further business before the Council, the meeting was adjourned at 7:16 p.m. I certify the above represents accurate minutes of the Kenai City Council Special meeting of March 25, 2026. Michelle M. Saner, MMC City Clerk ** The student representative may cast advisory votes on all matters except those subject to executive session discussion. Advisory votes will not affect the outcome of the official council vote. Advisory votes will be recorded in the minutes. A student representative may not move or second items during a council meeting. City of Kenai Council Meeting Page 2 of 2 April 15, 2025 PAYMENTS OVER $35,000.00 WHICH NEED COUNCIL RATIFICATION COUNCIL MEETING OF: APRIL 1, 2026 VENDOR DESCRIPTION DEPARTMENT ACCOUNT AMOUNT PERS PERS PREMERA FEBRUARY PREMIUM VARIOUS LIABILITY 116,119.03 VARIOUS INSURANCE 228,163.98 L I000, City of Kenai MEMORANDUM K E N 4 210 Fidalgo Ave, Kenai, AK 99611-7794 1907.283.75351 www.kenai.city TO: Mayor Knackstedt and Council Members THROUGH: Terry Eubank, City Manager FROM: Mary Bondurant, Interim Airport Manager DATE: March 20, 2026 SUBJECT: Action/Approval - Memorandum of Agreement between the City of Kenai and Greatland Consulting and Training LLC, at the Alaska Regional Fire Training Center. This memo recommends authorizing the City Manager to execute a Memorandum of Agreement between the City of Kenai and Greatland Consulting and Training LLC (GCT). The purpose of the Alaska Regional Aircraft Fire Training Center is to provide the facilities required for certificated airports in Alaska to meet initial and annual recurrent training requirements under applicable Federal Aviation Regulations. GCT has been awarded a contract by the State of Alaska, Statewide Aviation Division to provide Aircraft Rescue Firefighting training for the employees of state operated airports. It is mutually beneficial for the Airport and GCT to enter into a cooperative agreement that facilitates Aircraft Rescue Firefighting training at the Fire Training Center for the calendar year 2026. Does Council authorize the City Manager execute a Memorandum of Agreement between Greatland Consulting and Training LLC & the City of Kenai? Attachments Memorandum of Agreement between The City of Kenai And Greatland Consulting and Training LLC 1461 Northview Dr. Unit 1-7 Anchorage, Alaska 99504 This Memorandum of Agreement between the City of Kenai (hereinafter referred to as the "Airport"), and Greatland Consulting and Training LLC (hereinafter referred to as "GCT"). C ' 91491 The purpose of this agreement is to allow the Airport, and GCT to work cooperatively to ensure the Alaska Regional Aircraft Fire Training Center (Fire Training Center) remains viable to meet required Federal Aviation Regulations for Aircraft Rescue Firefighting at certificated airports in Alaska. The Airport is the owner of the Fire Training Center and is responsible for the operation and maintenance in accordance with FAA grant assurances. OBJECTIVES • Ensure certificated airports in Alaska are able to complete initial and annual recurrent ARFF training. • Operate and maintain the Fire Training Center in accordance with FAA grant assurances. • Formalize policies and procedures surrounding the use of the Fire Training Center. • Establish rates and fees to ensure the operation of Fire Training Center is sustainable. • Encourage other stakeholders to utilize the Fire Training Center in conjunction with GCT. WHEREAS, it is the purpose of the Alaska Regional Aircraft Fire Training Center to provide the facilities required for certificated airports in Alaska to meet initial and annual recurrent training requirements under applicable Federal Aviation Regulations; and, WHEREAS, GCT has been awarded a contract by the State of Alaska, Statewide Aviation Division to provide Aircraft Rescue Firefighting training for the employees of State operated airports; and, WHEREAS, it is mutually beneficial for the Airport and GCT to enter into a cooperative agreement that facilitates Aircraft Rescue Firefighting training at the Fire Training Center. NOW THEREFORE. In consideration of the mutual benefits which will accrue to the Airport and GCT, the parties agree as follows: MOA between The City of Kenai and Greatland Consulting and Training LLC Page 1 of 4 AUTHORIZATION: The Airport, and GCT agree to work cooperatively in operation of the Fire Training Center to facilitate ARFF training requirements set forth by Federal Regulations for certificated airports for the calendar year 2026. AIRPORT, AND GCT RESPONSIBILITIES: For the periods set forth above, the a. Airport will: A. When no preexisting scheduling conflicts exist, provide GCT use of the Alaska Fire Training Center training room(s), ARFF training props, ARFF vehicles, ARFF training prop controls, and breathing air containment fill station. B. Maintain the facility, including props in good working order. Airport is not responsible for any training delays or lost profits due to prop or other facility equipment breakdowns. GCT and Airport understand and acknowledge that prop repairs often require service from out-of-state personnel with limited availability. C. Establish rates & fees for use of the Alaska Fire Training Center that ensure operation and maintenance of the Fire Training Center is sustainable. b. GCT will: A. Schedule use of the Fire Training Center with Airport Administration. B. Provide for, or contract with qualified instructors approved by the Airport for ARFF training. C. Provide prompt notice to the Airport of needed maintenance to the Alaska Fire Training Center facility, ARFF training props and controls, ARFF vehicles, and breathing air containment fill station. D. Ensure all trainees are equipped with all necessary Personal Protection Equipment. E. Assume responsibility for any damage to Fire Training Center property (real and personal), caused by its officers, employees, contractors, customers or agents, and that occurs during the course of training activities and notify the Airport of any damage as soon as practicably feasible. F. Provide certified activity reports of all training activities on a form provided by the Airport with the payment of all rates and fees. G. Pay established rates & fees for use of the Alaska Fire Training Center that ensure operation and maintenance of the Fire Training Center is sustainable no later than 30 days upon the completion of the training. H. Pay for actual costs of all ARFF training consumables, to include but not limited to: propane, nitrogen, training smoke oil, vehicle fuel, etc. At the end of the training season the propane tank will be filled to same level as the start of the season. Propane used by the Kenai Fire Department will be subtracted from this total. MOA between The City of Kenai and Greatland Consulting and Training LLC Page 2 of 4 Season Course Min. # of Students Rate per Student* ■ s Annual Live Fire/Refresher 8 400.00 E as r d 40 hour Basic ARFF 8 6GG.GG N A A 40 hour Advanced ARFF 8 600.00 "■ Annual Live Fire/Refresher 12 400.00 a Q `y 40 hour Basic ARFF 12 600.00 s 0 0 0 40 hour Advanced ARFF 12 600.00 Rate includes use oftraining classroom,.ARFFtraining props, and.ARFFvehicles. Rate excludes the cost of fuels and ancillary consumahles required to operate training props and equipment (Propane, Nitrogen. Training Smoke Oil. Fuel. etc.) III. PERIOD OF PERFORMANCE The period of performance for this agreement is for the Calendar Year 2026. While the Airport and GCT reserve the right to terminate this Agreement, at any time upon thirty days written notice without the necessity of any legal process, the Airport and GCT agree to hold a meeting prior to termination discussing the reasons for termination. IV. CONTACTS A. For the Airport: Mary Bondurant, Acting Airport Manager, Kenai Municipal Airport, 305 N. Willow Street, Suite 200, Kenai, AK 99611, mbondurant(@kenai.city. 907.283.8282. B. For GCT: Bob Lee, Owner/Operator, Greatland Consulting and Training LLC, 1461 Northview Dr. Unit 1-7, Anchorage, Alaska 99504, bobleeakconsulting@gmail.com, 907.297.9141. V. SPECIAL PROVISIONS A. The scope and other terms of the agreement maybe modified at anytime by mutual consent of the signatory parties. B. Subject to Section II.(b)(E) above, the parties to this agreement agree to be responsible for damages to their own property and injuries to their own employees/volunteers, except for damages/injuries caused by the other party, their agents, contractors, or officers. C. This MOA maybe modified or amended as necessary upon written consent of all parties or may be terminated by either party with a 30-day written notice to all other parties. V1. INSURANCE GCT, independently or through its contractors shall obtain and maintain insurance, in amounts not less than those listed below, by insurance companies with acceptable industry ratings, so long as such company is not barred from insuring City MOA between The City of Kenai and Greatland Consulting and Training LLC Page 3 of 4 assets. All policies or endorsements shall, where possible, name the City as an additional insured or a loss payee as appropriate. Contractor may not commence to perform under this Agreement until all required insurance is in full force and effect and approved by the City. Contractor shall provide the City with certificates of insurance within thirty (30) days of the effective date of this Agreement. The insurance shall be provided by a carrier rated "A-" or better by A.M. Best. For worker's compensation insurance, general liability and automobile liability insurance must include a waiver of subrogation so that the insurer waives all rights of subrogation against the City for payments made under the policy. Provide the City notification at least 20 days before any termination, cancellation, or material change in insurance coverage. Comprehensive general liability: combined single limit (death, bodily injury and property damage (rented or leased property coverage)) $2 million Professional liability: $1 million Worker's Compensation: statutory minimum IN WITNESS WHEREOF, the parties hereto have caused this Memorandum of Agreement to be executed as of the date of last signature below. Celia_��_1►1�ZK�7►�Y�11~�I►[eL1►1��:�_11►11►[ellls�7 CITY OF KENAI Terry Eubank, City Manager Bob Lee, Owner/Operator DATE DATE MOA between The City of Kenai and Greatland Consulting and Training LLC Page 4 of 4 KENAI CITY OF KENAI ORDINANCE NO. 3511-2026 Sponsored by: Administration AN ORDINANCE ACCEPTING AND APPROPRIATING FUNDS FROM THE INSTITUTE OF MUSEUM AND LIBRARY SERVICES, PASSED THROUGH THE STATE OF ALASKA, DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT, DIVISION OF LIBRARY, ARCHIVES & MUSEUMS, FOR LIBRARY EMPLOYEE TRAINING. WHEREAS, the Kenai Community Library has been awarded up to $1250 in federal grant funds from the Institute of Museum and Library Services, passed through the State of Alaska, Department of Education and Early Development, Division of Library, Archives & Museums, for continuing education expenses; and, WHEREAS, the funds will be used to reimburse travel costs related to a staff member's attendance at the annual Alaska Library Association conference; and, WHEREAS, it is in the best interest of the City of Kenai to appropriate these grant funds for the purpose intended; and, NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, AS FOLLOWS: Section 1. That the City Manager is authorized to accept a grant in the amount of $1,250 Section 2. That estimated revenues and appropriations be increased as follows: General Fund: Increase Revenues — Federal Grants - Library $1.250 Increase Appropriations — Library — Travel and Transportation $1.250 Section 3. That the City Manager is authorized to execute the grant agreement and to expend the grant funds to fulfill the purpose and intent of this ordinance. Section 4. 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 5. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect immediately upon enactment. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 22ND DAY OF APRIL, 2026. New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 3511-2026 Page 2 of 2 ATTEST: Michelle M. Saner, MMC, City Clerk Approved by Finance: Henry H. Knackstedt, Mayor Introduced: Enacted: Effective: April 1, 2026 April 22, 2026 April 22, 2026 New Text Underlined; [DELETED TEXT BRACKETED] L I000, City of Kenai MEMORANDUM K E N 4 210 Fidalgo Ave, Kenai, AK 99611-7794 1907.283.75351 www.kenai.city TO: Mayor Knackstedt and Council Members THROUGH: Terry Eubank, City Manager FROM: Katja Wolfe, Library Director DATE: March 19, 2026 SUBJECT: Ordinance No. 3511-2026: Accepting and Appropriating Funds from the Institute of Museum and Library Services, Passed Through the State of Alaska, Department of Education and Early Development, Division of Library, Archives & Museums, for Library Employee Training. The State of Alaska, Department of Education and Early Development, Division of Library, Archives & Museums receives funds from the Institute of Museum and Library Services to pay for Continuing Education (CE) grants for Alaska library workers. These funds can be spent on travel, lodging, per diem and registration expenses for conferences and workshops. The purpose of this Ordinance is to accept and appropriate a CE grant from the IMLS, passed through the State of Alaska, Department of Education and Early Development, Division of Library, Archives & Museums, of up to $1250 to reimburse the City of Kenai for a staff member's attendance at the annual Alaska Library Association conference. Thank you for your consideration. KENAI CITY OF KENAI ORDINANCE NO. 3512-2026 Sponsored by: Administration AN ORDINANCE AMENDING KENAI MUNICIPAL CODE CHAPTER 7.22 INVESTMENT OF MONIES, TO BROADEN THE RANGE OF PERMITTED INVESTMENTS AND EXTEND THE MATURITY PROFILE OF THE CITY'S INVESTMENT PORTFOLIO. WHEREAS, Kenai Municipal Code Chapter 7.22 intends for the City's investment portfolio to be managed so that the portfolio provides safety of principal, maintains sufficient liquidity to meet cash flow requirements and achieves a reasonable market -average rate of return; and, WHEREAS, the City's current investment policy emphasizes safety of principal, liquidity, and reasonable return consistent with prudent public fund management; and, WHEREAS, the City has historically experienced minimal short-term liquidity demands relative to the size of its investment portfolio; and, WHEREAS, extending the permitted maturity profile of the portfolio and broadening the range of permitted investment -grade securities may improve long-term investment returns while maintaining prudent safeguards for the safety of principal; and, WHEREAS, the City Council finds that allowing limited incremental risk within clearly defined parameters is consistent with prudent financial management and may generate meaningful additional returns over time for the benefit of the City and its taxpayers. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, AS FOLLOWS: Section 1. Amendment of Section 7.22.030 of Kenai Municipal Code: That Kenai Municipal Code, Section 7.22.030 - Finance, Taxation, and Business Affairs of the City - Investment of Monies - Authorized Investments is hereby amended as follows: 7.22.030 Authorized Investments. City funds shall be invested in U.S. dollar denominated securities. Authorized instruments shall be limited to the following: (a) Obligations of the U.S. government, its agencies and instrumentalities. (b) Insured or collateralized certificates of deposit, savings accounts, and other deposits with banks and savings and loan associations. (c) Repurchase agreements that are documented by a written agreement, and are fully collateralized 102% by delivery of obligations of the U.S. government to an independent third=party custodian. (d) Money market mutual funds whose dollar -weighted average portfolio maturities are not greater than one hundred twenty (120) days, and whose portfolios consist primarily of obligations of the New Text Underlined; [DELETED TEXT BRACKETED] Page 60 Ordinance No. 3512-2026 Page 2 of 3 U.S. government, its agencies and instrumentalities, and of repurchase agreements collateralized with such U.S. government, agency, or instrumentality obligations. (e) A State investment pool, should one become available. (f) Obligations of a corporation or municipality if the obligations are investment grade by at least two nationally recognized rating services at the time of investment. (g) The portfolio may hold short -dated agency mortgage -backed securities, provided they are issued or guaranteed by U.S. Government or Government Sponsored Enterprises and exhibit low extension and prepayment risk. Eligible securities must have a modified duration not exceeding five (5) years and must demonstrate adequate market liquidity. Section 2. Amendment of Section 7.22.040 of Kenai Municipal Code: That Kenai Municipal Code, Section 7.22.040 - Finance, Taxation, and Business Affairs of the City - Investment of Monies - Maturities is hereby amended as follows: 7.22.040 Maturities and Interest Rate Risk. Investments shall have maturities, measured from the date of purchase, that do not exceed [FIVE (5)] ten years, except for investments that shall be put to specific uses (such as defeasance of debt or establishment of a sinking fund) where the matching of maturity to the use is important[.] or securities defined by (q) in Kenai Municipal Code section 7.22.030. The portfolio's duration may not exceed five 5 ears. Section 3. Amendment of Section 7.22.060 of Kenai Municipal Code: That Kenai Municipal Code, Section 7.22.060 - Finance, Taxation, and Business Affairs of the City - Investment of Monies - Liquidity is hereby amended as follows: 7.22.060 Liquidity and Diversification. (a) Liquidity shall be assured through investments in marketable authorized investments with existing maturities of one (1) year or less, short-term repurchase agreements, a State authorized investment pool, or money market funds. At least [TWENTY] ten percent [(20%)] Liq%J of the portfolio shall be held in such instruments. [(B) NO MORE THAN THIRTY PERCENT (30%) OF THE PORTFOLIO MAY BE INVESTED IN SECURITIES WITH MATURITIES OF LONGER THAN TWO (2) YEARS.] (b) Cash, cash equivalents, and US Government (non -mortgage) securities of must exceed 40% of the portfolio market value. (c) Corporate and Municipal securities cannot exceed 40% of the portfolio market value. (d) Agency mortgage -backed securities cannot exceed 30% of the portfolio market value. Section 4. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application. New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 3512-2026 Page 3 of 3 Section 5. 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 22 ND DAY OF APRIL, 2026. ATTEST: Michelle M. Saner, MMC, City Clerk Henry H. Knackstedt, Mayor Introduced: Enacted: Effective: April 1, 2026 April 22, 2026 May 22, 2026 New Text Underlined; [DELETED TEXT BRACKETED] L I000, City of Kenai MEMORANDUM K E N 4 210 Fidalgo Ave, Kenai, AK 99611-7794 1907.283.75351 www.kenai.city TO: Mayor Knackstedt and Council Members THROUGH: Terry Eubank, City Manager FROM: Dave Swarner, Finance Director DATE: March 10, 2026 SUBJECT: Ordinance No. 3512-2026 - Amending Kenai Municipal Code Chapter 7.22 Investment of Monies to Broaden the Range of Permitted Investments and Extend the Maturity Profile of the City's Investment Portfolio. Ordinance No. 3512-2026 proposes updates to the City's investment code to extend the permitted maturity profile of the City's investment portfolio and broaden the range of allowable securities. The City's current investment policy has historically emphasized highly liquid, short-term investments, and effectively safeguarded public funds. Historically the City has maintained strong liquidity and experienced minimal short-term demands on its investment portfolio. Because of this, a portion of the portfolio can prudently be invested with longer maturities without compromising the City's ability to meet operational needs. The proposed ordinance would allow the City to structure the portfolio more strategically, while continuing to prioritize safety of principal and liquidity and continue to effectively safeguard public funds. Thank you for your consideration. L I000, City of Kenai MEMORANDUM K E N 4 210 Fidalgo Ave, Kenai, AK 99611-7794 1907.283.75351 www.kenai.city TO: Mayor Knackstedt and Council Members THROUGH: Terry Eubank, City Manager FROM: Dave Swarner, Finance Director DATE: March 6, 2026 SUBJECT: Scheduling Budget Work Session This memo is to confirm the scheduling of the FY2027 budget work session for the discussion of the annual budget. Dates available for the budget work session are April 2511, May 2nd or May 91", City Administration is recommending May 2nd. The budget work session shall be held in council chambers. During this session, we will review the budget, address any questions or concerns, and make any necessary adjustments in preparation for the upcoming fiscal year. Department heads will be in attendance for questions relating to their areas of responsibility. To ensure that everyone is well prepared for the meeting, the budget packets will be provided to all Council members no later than April 17th. Please reach out should you have any preliminary questions or need further information prior to the meeting. I respectfully request that a date be selected for FY2027 budget work session. KENAI AIRPORT COMMISSION — REGULAR MEETING Page 64 MARCH 12, 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 March 12, 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 Scott Bremmer A quorum was present. Absent: James Zirul Dan Knesek Cody Whicker Also in attendance were: Mary Bondurant, Interim Airport Manager Julie Semmens, Airport Administrative Assistant Deborah Sounart, City Council Liaison 3. Agenda Approval MOTION: Commissioner Minelga 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/QAP (Contractor) - Discussion 2026 Runway Reconstruction Project Jackie LaBelle, Geotechnical Engineer, PE provided an update on the 2026 Runway Reconstruction project, noting contractor submittals were under review; FAA noticing requirements; and the construction and safety phasing plans. Thomas Davis, QAP Project Superintendent, clarified that some of the removed runway materials would be reused in the project and some would be reserved for airport maintenance use. C. UNSCHEDULED PUBLIC COMMENTS - None. D. APPROVAL OF MINUTES 1. February 12, 2026 Regular Meeting Minutes MOTION: Airport Commission Meeting Page 1 of 3 March 12, 2026 Page 65 Commissioner Minelga MOVED to approve the February 12, 2026 Airport Commission minutes. Commissioner Bremmer SECONDED the motion. VOTE: There being no objection; SO ORDERED. E. UNFINISHED BUSINESS - None. F. NEW BUSINESS 1. Discussion/Recommendation - Memorandum of Agreement for Greatland Consulting and Training LLC MOTION: Commissioner Bielefeld MOVED to recommend City Council approval of the Memorandum of Agreement. Commissioner Minelga SECONDED the motion. Airport Manager Bondurant gave a staff report from information provided in the packet. UNANIMOUS CONSENT was requested on the motion. VOTE: There being no objection; SO ORDERED. G. REPORTS 1. Airport Manager - Airport Manager Bondurant reported on the following: • Status update on the runway rehabilitation project, including development of the Construction Safety and Phasing Plan (CSPP) and Instrument Flight Procedures. • FAA received comments on the CSPP; review, revision and resubmission coordinated with HDL. • Apron crack sealing, pavement marking, and seal coating scheduled for April or early May. • Participating in a 5-hour Safety Risk Management meeting to resolve outstanding project issues. • Airport Master Plan update: completed Phase 1; initiated Phase 2; incorporated public and stakeholder feedback; began development of a preferred alternative for presentation. • A virtual tour of the terminal building was launched on the airport website. • Marketing efforts for the Aircraft Rescue and Firefighting training facility continue. • Follow-up information was provided regarding aircraft rescue firefighting index requirements and airline service data, including clarification on fares and scheduling. • Pet relief area signage was installed in the terminal building. • Airport staff met with Crowley regarding fuel operations, confirming that the self -fueling system will be replaced in fall 2026. • Aircraft tenants in the runway tie -down area will be required to relocate by May 8 due to construction impacts, with alternative parking locations identified. • Several light poles located within an object -free area will be removed to comply with runway safety requirements. • The gravel runway will be closed from approximately mid -May through the end of September due to safety conflicts between object -free areas and the temporary parallel runway during construction operations. 2. Commission Chair - Chair Feeken reported on the status of Airport Manager recruitment; noted attending lunch with two of the three recently interviewed candidates. 3. City Council Liaison - Council Member Sounart reported on recent actions of the City Council. H. ADDITIONAL PUBLIC COMMENTS Airport Commission Meeting Page 2 of 3 March 12, 2026 Page 66 Alex Cook, Kenai Peninsula Pilot's Club Member, addressed the Commission with concerns related to the closure of the gravel strip. I. NEXT MEETING ATTENDANCE NOTIFICATION - April 9, 2026 J. COMMISSION QUESTIONS AND COMMENTS There was discussion regarding the possibility of K. ADJOURNMENT L. INFORMATIONAL ITEMS 1. February 2026 Airport Mid -month Report. There being no further business before the Airport Commission, the meeting was adjourned at 6:42 p.m. I certify the above represents accurate minutes of the Airport Commission meeting of March 12, 2026. Logan Parks, Deputy City Clerk Airport Commission Meeting Page 3 of 3 March 12, 2026 PROCLAMATION WHEREAS, sexual assault is an intolerable violent crime with public health implications for every person in the central Kenai Peninsula, and no one person, organization, agency or community can eliminate sexual assault alone; and, WHEREAS, sexual violence prevention can be better addressed through education, counseling, support of victims/survivors, and increased support for service agencies in collaboration with The LeeShore Center, and, WHEREAS, the LeeShore Center, its staff and volunteers work year around to address sexual assault by providing 24-hour crisis services, offering support to those impacted by sexual assault, and providing prevention education and survivor empowerment information to schools, churches, and civic organizations, as well as to medical, mental health, law enforcement, education and criminal justice personnel; and, WHEREAS, The LeeShore Center continues to develop and improve the quality of service for those most profoundly and directly impacted by sexual violence; NOW THEREFORE, I, Henry Knackstedt, Mayor of the City of Kenai, Alaska do hereby proclaim April 2026 as: "Sexual Assault Awareness Month" in the City of Kenai and urge all citizens to support and assist The LeeShore Center as it continues its efforts to bring real hope for freeing the central Kenai Peninsula from the tragedy of sexual violence and exploitation. 0 '1 1 DATED: This 1st day of April, 2026. Henry H. Knackstedt., Mayor ATTEST: Michelle M. Saner, MMC, City Clerk PROCLAMATION IN RECOGNITION OF Aidan Cole WHEREAS, Aidan Cole, an eighth -grade student at Kenai Middle School, demonstrated exceptional academic achievement and composure in representing the Kenai community at the Alaska State Spelling Bee; and, WHEREAS, the Alaska State Spelling Bee brought together students from across the state, ranging from second through eighth grade, to compete in a rigorous, day -long academic competition testing spelling, vocabulary, and critical thinking skills; and, WHEREAS, Aidan Cole advanced through multiple rounds of ?ompetition, exhibiting dedication, focus, and perseverance in a challenging and highly comp,4itive environment; and, WHEREAS, Aidan Cole secured victory by correctly spelling the word "thrasonical, " earning the title of Alaska State Spelling Bee Champion; and, WHEREAS, this achievement qualifies Aidan Cole to represent the State of Alaska at the prestigious Scripps National Spelling Bee in Washington, D. C., bringing recognition to the City of Kenai and inspiring students throughout the community; and, WHEREAS, Aidan Cole's accomplishment reflects the importance of education, the support of teachers and families, and the value of hard work and intellectual curiosity. NOW, THEREFORE, I, HENRY KNACKSTEDT, MAYOR OF THE CITY OF KENAI, ALASKA, hereby recognize and commend Aidan Cole for his outstanding achievement in winning the Alaska State Spelling Bee and representing the Kenai community with excellence. DATED: This 1St day ofApril, 2026. Henry H. Knackstedt, Mayor ATTEST: Michelle M. Saner, MMC, City Clerk K I N A I City of Kenai 1 210 Fidalgo Ave, Kenai, AK 99611-7794 1907.283.7535 1 www.kenaixity MEMORANDUM TO: Mayor Knackstedt and Council Members THROUGH: Terry Eubank, City Manager FROM: Kevin Buettner, Planning Director DATE: March 18, 2026 SUBJECT: Technical amendments the City's Schedule of Rates, Charges, and Fees to Update Code References and Move Fees for Tideland Leasing to Lands Administration. The purpose of this memorandum is to inform the Council of technical amendments to the Schedule of Rates, Charges and Fees which were made administratively. One amendment was made to correct a reference to the incorrect section of code. The remaining amendments were made to reflect recent changes made to Kenai Municipal Code (KMC) with the enactment of Ordinance 3500-2026, which sunset the Harbor Commission and made amendments to KMC regarding Tideland Leases and Tideland Leases for Shore Fisheries. The following identifies the actual changes made: [PUBLIC WORKS AND CAPITAL PROJECTS FEES TIDELANDS 11.15.150 TIDELAND FILING FEE $10.00 11.20.050 TIDELAND LEASE FILING FEE $100.00 TIDELANDS, LEASING OF 11.20.790 TIDELAND LEASE FOR SHORE FISHERIES - PER YEAR $300.001 Land Manaaement Fees 21.10.040(a) and Land Lease Application Fee $100.00 2[1]2.05.025(a) 21.10.070(a) and Land Lease Amendment Application Fee $100.00 22.05.045(a) 21.10.070(a) and Land Lease Extension Application Fee $100.00 22.05.045(a) 21.10.070(a) and Land Lease Renewal Application Fee $100.00 22.05.045(a) 21.10.070(a) and Consent to Sublease Application Fee $50.00 22.05.045(a) 22.05.045(a) Land Lease Assignment Application Fee $100.00 22.05.100(a) Competitive Land Purchase Application Fee $100.00 22.05.100(a) Non -Competitive Land Lease or Purchase Application Fee $100.00 Special Use Permit Application Fee $100.00 22.05.016(a) Tideland filing fee $10.00 22.05.016(a) Tideland lease filing fee $100.00 22.10.010 Tideland lease for shore fisheries - oer vear $300.00 Page 2 of 2 The City of Kenai www.kenai.city 03/20/2026 David Martin 45858 Wallers St Kenai, AK 99611 Davidm724@hotmail.com 907.513.6025 Dear, Kenai City Council Member, I am writing to you on behalf of the Kenai -area swim community. I have lived in the Kenai area my entire life, pay taxes and rely on our local government to do what's best. In the meantime, I mind my business. I honestly have never felt the need to really stand up and say anything over my 43 years, but I am deeply concerned with the prospect of having our pools closed to save the district some money. My question is: At what cost? I grew up in Soldotna. As my dad was an avid fisherman, he insisted I learn to swim when I was very young. I grew up in the Soldotna High School pool, swimming for the Soldotna Silver Salmon and SoHi Stars. Countless times I walked home from practice in freezing temperatures, my hair quickly frosting and turning extra crispy. Irrelevant, I know, but a funny experience all of our Alaskan swimmers are familiar with. Swimming is one of the healthiest activities available, for all ages. Swimming provides all kinds of opportunities throughout our lifetime, whether it's basic survival, competition, scholarships and college, general fitness, physical therapy, or just good clean fun. The earlier a child can learn to float and navigate in the water, the better. The more time in the pool and the greater the skill, the better. When life catches up to us, and we realize we need to shed some pounds, the pool has always been there. When we get old and stiff, it's one of the few activities that don't cause excessive aches and pains, while still providing resistance and cardiovascular exercise. I've been swimming my whole life, from swim lessons, to competitive swimming, triathlons, etc. I still swim with the "Top of The World" Masters swim club in Kenai. When I get old and rickety, I know that the pool is where I'd want to go for exercise and PT. Swimming has saved my life. I'll never forget my coaches, Steve Johnston, Sohail Marey and Jim Barkman, who taught me so much more than how to swim. They taught me to compete, to lead, to work hard, break barriers, aspire, and yes, to survive. Once when I was about eight years old, my dad and I were walking the Kenai riverbank looking for a place to fish. I remember him saying, "look out, that mud is slick..." Within seconds, I slipped right in. I dropped my pole and instinctively rolled onto my front and started swimming frantically toward the bank as the current pulled against me. It only took a few seconds, but if I didn't have the skill, I could have easily been swept away. What ended up just being an issue of being cold and wet for the remainder of our outing could have been a grave situation. I imagine the kids that may not have the opportunity to learn such basic skills for survival, if the pools are to actually close... My dad became a swim official when I was in high school, partially to be around for mine and my sister's swim meets, and partially just to contribute. He made it clear that we would not be spared by his calls, and that if he saw us break our stroke, we'd be the first he'd disqualify. He was a man of integrity. He officiated for around 15 years until he passed in 2013. He was the head official for many meets across the state, and even traveled to national -level meets such as the Olympic Trials and National Championships. He was such a fixture in the swim community that the starting block in Lane 6 at the SoHi pool is dedicated to him with a little plaque. Now that my own son is swimming in high school, I started officiating last year. My son Bennett has been swimming with the Peninsula Piranhas since he was seven years old. I was honored to have coach Will Hubler teach both of my sons from when they were just old enough to join. He was the Kenai swim coach when I was swimming for SoHi, and he still remembered me. This guy truly loves what he does and should be proud and revered for the work he's done for nearly four decades. Bennett has been looking forward to swimming for the Kenai Kardinals, and just completed his first season, qualifying for State as a freshman — a big deal, if you ask me. Although he likes other sports, he is ultimately a swimmer. He has dreams of having a full high school swim career, and has aspirations to swim in college, earning scholarships for his hard work in and out of the pool. He has maintained a 4.0 GPA throughout middle school and his Freshman year, driven to keep it up specifically for these opportunities for his future. If the pools shut down, so do these opportunities. Yes, he could join other sports, but he has worked hard for more than half his life to be a competitive swimmer... So have many other kids just like him. Parents step up to officiate, join the booster club, club president, treasurer, etc. We sponsor the team and donate our time and money, just to keep the team up and running. We are swim families. How much money will actually be saved if the Kenai pool closes? There will surely still be costs to maintain it, keep it heated, keep it operational... Wouldn't it be more cost effective to allow it to generate revenue? Prices for renting the pool, swim lessons, swim team fees, etc. has historically been very low in proportion to how much it costs to actually operate the pool, leading to a loss of revenue. This is an easy thing to fix. Although it may sting us all to pay more, it would be worth it to keep the pool open. We can also do fundraising and increase sponsorships. There is much that we can do, but we will need cooperation from all entities involved —the City, Borough and KPBSD. To be honest, the logistics and bureaucracy are not my strong point, but we've got greater minds working on that, and I'll do what I can to help. My hope is that we can all still work together and come to a solution. The swim families and coaches are working hard to come up with ideas. We hope that we can meet in the middle, in the best interests of the community, most importantly, the kids. We all look forward to working with you to find a reasonable solution. Thank you for your consideration on this matter. Thank you for listening. Sincerely, David Martin NOTICE OF PUBLIC HEARING APRIL 1, 2026 CITY OF KENAI COUNCIL MEETING NOTICE IS HEREBY GIVEN the City council of the City of Kenai will conduct a public hearing on the following Ordinance(s) and/or Resolution(s) on the above noted meeting date: Ordinance No. 3509-2026 - Increasing Estimated Revenues and Appropriations in the General Fund - Legislative Department, to Provide Matching Funds for a Grant in the Amount of $10,380 to the Alaska Children's Institute for the Performing Arts DBA Triumvirate Theatre for Parking Lot Paving and Landscaping Improvements. (Administration) 2. Ordinance No. 3510-2026 - Amending the Official Zoning Map by Rezoning the Property at 10060 Kenai Spur Highway from Conservation to Suburban Residential Zoning District. (Administration) Ordinance No. 3510-2026 (Substitute) - Amending the Official Zoning Map by Rezoning a Portion of the Property at 10060 Kenai Spur Highway from Conservation to Suburban Residential Zoning District. (Administration) 3. Resolution No. 2026-17 -Authorizing a Contract Award for the 2026 Water Treatment Pump Reduced or Eliminated Plan Review Fees for Successive Identical Structures. (Administration) The public hearing will commence at 6:00 p.m., or as soon thereafter as business permits. All interested persons are invited to attend the meeting telephonically/virtually or in -person and participate in the public discussion. See the agenda for additional information. Written comments may be sent to the Kenai City Council, c/o Kenai City Clerk, 210 Fidalgo Avenue, Kenai, AK, 99611. Copies of the ordinances and/or resolutions are available in the Office of the Kenai City Clerk and will be available at the meeting for public review. Please be advised, subject to legal limitations, ordinances and/or resolutions may be ame?lded by the Council prior to adoption without further public notice. Logan Pafks, Deputy City Clerk Posted: March 27, 2026 CITY OF KENAI Council � City KENAI Notice of Meeting City Hall Council Chambers, 210 Fidalgo Ave, Kenai, AK The Kenai City Council will hold a regular meeting on April 1, 2026, beginning at 6:00 p.m. Visit the City Meeting web page for information regarding this meeting: ✓uww.kenai.ci /meetin s The public is invited to attend and participate. Virtual and telephonic options for participation are available. Additional information is available through the City Clerk's Office or by visiting our website at Mn .kenai.city. Shellie Saner, MMC, City Clerk Publish: 03/27/2026 CERTIFICATE OF PUBLICATION & POSTING I, Shellie Saner, City Clerk of the City of Kenai, do hereby certify that on the 19th day of March 2026, 1 electronically mailed or caused to be published the foregoing Notice of Meeting to the Peninsula Clarion and requested that this Notice be published in the March 27, 2026 edition of their newspaper. On the 27th day of March, 2026, the Notice of Public Heand full meeting agenda was posted at Kenai .H I and on the Internet at ._ he 'e S er, �C, City Clerk E. CITY OF KENAI NOTICE OF ORDINANCES AND RESOLUTIONS ADOPTED AT THE APRIL 1, 2026 KENAI CITY COUNCIL REGULAR MEETING NOTICE IS HEREBY GIVEN the City of Kenai Council passed or took other actions as identified below on the following Ordinance(s) and/or Resolution(s) at the above -referenced meeting. PUBLIC HEARINGS Ordinance 3509-2026 - Increasing Estimated Revenues and Appropriations in the General Fund - Legislative Department, to Provide Matching Funds for a Grant in the Amount of $10,380 to the Alaska Children's Institute for the Performing Arts DBA Triumvirate Theatre for Parking Lot Paving and Landscaping Improvements. (Administration) 2. Resolution No. 2026-17 - Authorizing a Contract Award for the 2026 Water Treatment Pump HoLise Construction. (Administration) Loin 'Parkb, Deputy City Clerk Posted: April 2, 2026 m K m D m co w c D m K c K D 0 c U) Z c D z m N N 90 1 CD 00 00 m m D 0 c CO r D W s C) Cl) m z v O M v m n 22 M I 0 z v m n 3 m z C -< n z r z 3 fN m O M < =1 m 0;a O m .. o D c � o � o r � N n o = z m m v n O C z n r .n n O z K-..P-NAI ..enai 1 210 Ficlalgo Ave, Kenai, AK 99611-7794 1 907.283.7535 1 wwwkenaixity MEMORANDUM TO: Mayor Knackstedt and Council Members THROUGH: Terry Eubank, City Manager FROM: Mary Bondurant, Interim Airport Manager DATE: March 20, 2026 SUBJECT: Action/Approval - Memorandum of Agreement between the City of Kenai and Greatland Consulting and Training LLC, at the Alaska Regional Fire Training Center. This memo recommends authorizing the City Manager to execute a Memorandum of Agreement between the City of Kenai and Greatland Consulting and Training LLC (GCT). The purpose of the Alaska Regional Aircraft Fire Training Center is to provide the facilities required for certificated airports in Alaska to meet initial and annual recurrent training requirements under applicable Federal Aviation Regulations. GCT has been awarded a contract by the State of Alaska, Statewide Aviation Division to provide Aircraft Rescue Firefighting training for the employees of state operated airports. It is mutually beneficial for the Airport and GCT to enter into a cooperative agreement that facilitates Aircraft Rescue Firefighting training at the Fire Training Center for the calendar year 2026. Does Council authorize the City Manager execute a Memorandum of Agreement between Greatland Consulting and Training LLC & the City of Kenai? Attachments APPROVED BY COUNCIL Date: (4. 1. 2