HomeMy WebLinkAbout2026-04-22 Council PacketKenai City Council - Regular Meeting Page 1 of 4
April 22, 2026
Kenai City Council - Regular Meeting
April 22, 2026 ꟷ 6:00 PM
Kenai City Council Chambers
210 Fidalgo Avenue, Kenai, Alaska
www.kenai.city
**Telephonic/Virtual Information on Page 4**
Agenda
A. CALL TO ORDER
1. Pledge of Allegiance
2. Roll Call
3. Certification of the April 14, 2026 Special Election Results
4. Approval of the Agenda and Consent Agenda (Public comments on Consent Agenda Items
limited to three (3) minutes per speaker; thirty (30) minutes aggregated)
*All items listed with an asterisk (*) are considered to be routine and non-controversial by the
council and will be approved by one motion. There will be no separate discussion of these items
unless a council member so requests, in which case the item will be removed from the consent
agenda and considered in its normal sequence on the agenda as part of the General Orders.
B. SCHEDULED ADMINISTRATIVE REPORTS
C. SCHEDULED PUBLIC COMMENTS (Public comments limited to ten (10) minutes per speaker;
twenty (20) minutes aggregated)
1. Request for Consideration of Challenger Center for Homeschool / Career Technical Education
(CTE), Doug Hayman, Principal of Connections Homeschool.
D. UNSCHEDULED PUBLIC COMMENTS (Public comments limited to three (3) minutes per speaker;
thirty (30) minutes aggregated)
E. PUBLIC HEARINGS
1. 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)
2. 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)
3. Resolution No. 2026-18 - Accepting a Site-Specific Emergency Operations Plan and Continuity
of Operations Plan for the Kenai Senior Center and Incorporating These Plans into the City of
Kenai Emergency Operations Plan. (Administration)
4. Resolution No. 2026-19 - Authorizing a Contract Award for External Financial Audit Services.
(Administration)
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Kenai City Council - Regular Meeting Page 2 of 4
April 22, 2026
5. Resolution No. 2026-20 - Authorizing a Contract Award for the 2026 Kenai City Dock Lease.
(Administration)
6. Resolution No. 2026-21 - Approving a Lease Form for Leasing of Tidelands for Shore Fisheries
and Authorizing the City Manager to Enter into a Shore Fishery Lease with Nathan Scow for the
Property Described as Tracts A & B, City of Kenai Shore Fishery No. 1. (Administration)
7. Resolution No. 2026-22 - Approving a Lease Form for Leasing of Tidelands for Shore Fisheries
and Authorizing the City Manager to Enter into a Shore Fishery Lease with Tide Chaser Fishery,
LLC for the Property Described as City of Kenai Shore Fishery No. 2. (Administration)
8. Resolution No. 2026-23 - Approving a Lease Form for Leasing of Tidelands for Shore Fisheries
and Authorizing the City Manager to Enter into a Shore Fishery Lease with Brian Scow for the
Property Described as Tract One (1), Shore Fishery Plat No. 71. (Administration)
9. Resolution No. 2026-24 - Approving a Lease Form for Leasing of Tidelands for Shore Fisheries
and Authorizing the City Manager to Enter into a Shore Fishery Lease with Nancy Hillman-Scow
for the Property Described as Tract Two (2), Shore Fishery Plat No. 71. (Administration)
10. Resolution No. 2026-25 - Approving a Lease Form for Leasing of Tidelands for Shore Fisheries
and Authorizing the City Manager to Enter into a Shore Fishery Lease with Kenai Salmon
Company, Inc. for the Property Described as Tracts Three (3), Four (4), Five (5), and Six (6),
Shore Fishery Plat No. 71. (Administration)
11. Resolution No. 2026-26 - Approving a Lease Form for Leasing of Tidelands for Shore Fisheries
and Authorizing the City Manager to Enter into a Shore Fishery Lease with Aurora Holdings and
Investments, LLC for the Property Described as Tract Seven (7), Shore Fishery Plat No. 71.
(Administration)
12. Resolution No. 2026-27 - Approving a Lease Form for Leasing of Tidelands for Shore Fisheries
and Authorizing the City Manager to Enter into a Shore Fishery Lease with Laura Maccabee for
the Property Described as a 3.29-acre portion of Tidelands Survey No. 272 within Section
Thirty-Five (35), Township 5 North, Range 12 West. (Administration)
13. Resolution No. 2026-28 - Approving an Auto Aid Agreement and Supporting Operational Plan
with the Kenai Peninsula Borough for Exchange of Personnel and Equipment Response to
Structure Fires. (Administration)
F. MINUTES
1. *Regular Meeting of April 1, 2026. (City Clerk)
2. *Special Meeting of April 8, 2026. (City Clerk)
G. UNFINISHED BUSINESS
H. NEW BUSINESS
1. *Action/Approval - Bills to be Ratified. (Administration)
2. *Action/Approval - Non-Objection to the Transfer of Ownership of a Marijuana Product
Manufacturing Facility License from Transferor Herban Extracts, LLC to Transferee Lady Gray,
LLC. DBA Herban Extracts - License No. 14432. (City Clerk)
3. *Action/Approval - Special Use Permit to NILCHIL Solutions, Inc. for an Off-Premise Sign on
City-Owned Property Described as Tract B, Gusty Subdivision Addition No. 2, Located at 11631
Kenai Spur Highway. (Administration)
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April 22, 2026
4. *Ordinance No. 3513-2026 - Amending Kenai Municipal Code Chapter 7.15 - Purchases and
Sales, to Remove Requirements to Publish Advertisements in Newspapers. (Administration)
5. *Ordinance No. 3514-2026 - Increasing Estimated Revenues and Appropriations in the
General Fund and Airport Fund and Awarding a Contract for Purchase of Firefighting Foam.
(Administration)
6. *Ordinance No. 3515-2026 - Increasing Estimated Revenues and Appropriation in the Airport
Snow Removal Equipment Capital Project Fund to Transfer Residual Balance from a Completed
Project Back to the Original Funding Source. (Administration)
7. *Ordinance No. 3516-2026 - Increasing Estimated Revenues and Appropriations in the
General Fund - Fire Department for Overtime Costs in Excess of Budgeted Amounts.
(Administration)
8. *Ordinance No. 3517-2026 - Increasing Estimated Revenues and Appropriations in the
General Fund and Authorizing a Consulting Agreement to Evaluate Natural Gas Storage
Opportunities on Kenai Municipal Airport Lands. (Administration)
9. Action/Approval - Parks and Recreation Commission 2026 Work Plan. (Parks and Recreation
Commission)
10. Discussion - Kenai Central High School Pool Operations and Coordination. (Administration)
11. Discussion - Candidate Filing Period. (City Clerk)
I. COMMISSION REPORTS
1. Council on Aging Commission
2. Airport Commission
3. Parks and Recreation Commission
Parks and Recreation Commission 2025 Annual Report
4. Planning and Zoning Commission
5. Beautification Commission
J. REPORT OF THE MAYOR
1. Proclamation - In Recognition of Kenai Peninsula Hockey Association (KPHA) Ice Hawks 12U
Girls Hockey Team.
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
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April 22, 2026
1. Competing Applications for Gas Storage Space. Pursuant to AS 44.62.310(c)(1) a Matter of
which the Immediate Knowledge may have an Adverse Effect upon the Finance of the City
and AS 44.62.310(c)(3) a Matter of which by Law, Municipal Charter, or Ordinance are
required to be Confidential. (Administration)
2. Kenai Central High School Pool Negotiations. Pursuant to AS 44.62.310(c)(1) a Matter of which
the Immediate Knowledge may have an Adverse Effect upon the Finance of the City.
(Administration)
N. PENDING ITEMS
1. 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)
[Clerk's Note: During the April 1, 2026 City Council Meeting, Ordinance No. 3510-2026 was
postponed to May 6, 2026.]
O. ADJOURNMENT
P. INFORMATION ITEMS
The agenda and supporting documents are posted on the City’s website at www.kenai.city. Copies of
resolutions and ordinances are available at the City Clerk’s Office or outside the Council Chamber prior
to the meeting. For additional information, please contact the City Clerk at 907-283-8231.
Registration is required to join the meeting remotely through Zoom. Please use the following link to
register:
https://us02web.zoom.us/meeting/register/orBHLO0eQj-_VTX14WLLMA
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Sponsored by: Administration
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CITY OF KENAI
ORDINANCE NO. 3511-2026
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.
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Ordinance No. 3511-2026
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___________________________________
Henry H. Knackstedt, Mayor
ATTEST:
___________________________________
Michelle M. Saner, MMC, City Clerk
Approved by Finance: _________________
Introduced: April 1, 2026
Enacted: April 22, 2026
Effective: April 22, 2026
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MEMORANDUM
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.
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Sponsored by: Administration
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CITY OF KENAI
ORDINANCE NO. 3512-2026
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
FOLLOW S:
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 Au thorized 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
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Ordinance No. 3512-2026
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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
(10) 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 (g) in Kenai Municipal Code section 7.22.030. The portfolio’s duration may not exceed five
(5) years.
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%)] (10%) 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.
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Ordinance No. 3512-2026
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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 22ND DAY OF APRIL, 2026.
___________________________________
Henry H. Knackstedt, Mayor
ATTEST:
___________________________________
Michelle M. Saner, MMC, City Clerk
Introduced: April 1, 2026
Enacted: April 22, 2026
Effective: May 22, 2026
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MEMORANDUM
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.
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Sponsored by: Administration
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CITY OF KENAI
RESOLUTION NO. 2026-18
A RESOLUTION ACCEPTING A SITE-SPECIFIC EMERGENCY OPERATIONS PLAN AND
CONTINUITY OF OPERATIONS PLAN FOR THE KENAI SENIOR CENTER AND INCORPORATING
THESE PLANS INTO THE CITY OF KENAI EMERGENCY OPERATIONS PLAN.
WHEREAS, the Kenai Senior Center received a grant from the State of Alaska, Department of Health
and Social Services, Division of Senior and Disabilities Services to provide Title III Emergency Planning
and Preparedness services; and,
WHEREAS, grant funds were used for professional services to develop a site-specific Emergency
Operations Plan (EOP) and Continuity of Operations Plan (COOP) for the Kenai Senior Center; and,
WHEREAS, the City’s Emergency Operations Plan is an all-hazard, all-risk plan based on the National
Incident Management System for comprehensive management of disaster mitigation, preparedness,
response, and recovery; and,
WHEREAS, the development of a site-specific Emergency Operations Plan and Continuity of Operations
Plan for the Kenai Senior Center enhances the City’s ability to protect vulnerable populations and
maintain critical services during emergencies; and,
WHEREAS, the Council on Aging Commission reviewed the plans and at its meeting on April 9, 2026,
and recommended the EOP and COOP be adopted as an addendum to the City of Kenai Emergency
Operations Plan; and,
WHEREAS, it is in the best interest of the City of Kenai to incorporate the Kenai Senior Center site-
specific Emergency Operations Plan (EOP) and Continuity of Operations Plan (COOP) into the City of
Kenai Emergency Operations Plan.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA:
Section 1. The Kenai Senior Center Emergency Operations Plan (EOP) and Continuity of Operations
Plan (COOP) shall be incorporated as supporting documents within the City of Kenai Emergency
Operations Plan.
Section 2. That this Resolution takes effect immediately upon passage.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 22ND DAY OF APRIL, 2026.
___________________________________
Henry H. Knackstedt, Mayor
ATTEST:
___________________________________
Michelle M. Saner, MMC, City Clerk
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MEMORANDUM
TO: Mayor Knackstedt and Council Members
THROUGH: Terry Eubank, City Manager
FROM: Kathy Romain, Senior Center Director
DATE: April 9, 2026
SUBJECT: Resolution 2026-18 - Accepting a Site-Specific Emergency Operations Plan
and Continuity of Operations Plan for the Kenai Senior Center and
Incorporating These Plans into the City of Kenai Emergency Operations
Plan.
The attached resolution requests City Council approval to incorporate the Kenai Senior Center’s
site-specific Emergency Operations Plan (EOP) and Continuity of Operations Plan (COOP) into
the City of Kenai Emergency Operations Plan as supporting documents.
These plans were developed through a State of Alaska grant to strengthen emergency
preparedness and ensure continuity of essential services for seniors, a particularly vulnerable
population during emergencies. The plans align with the City’s all-hazards approach and the
National Incident Management System (NIMS), and they provide detailed, site-specific guidance
to support coordinated response and recovery efforts.
The Council on Aging Commission reviewed the plans at its April 9, 2026, meeting and
recommended their adoption. Incorporating these documents into the City’s Emergency
Operations Plan will enhance overall preparedness, improve response capabilities, and help
ensure continuity of critical services at the Kenai Senior Center.
Thank you for your consideration.
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Sponsored by: Administration
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CITY OF KENAI
RESOLUTION NO. 2026-19
A RESOLUTION AUTHORIZING A CONTRACT AWARD FOR EXTERNAL FINANCIAL AUDIT
SERVICES.
WHEREAS, a Request for Proposals was released on February 24, 2026 with proposals due on March
20, 2026 for the 2026 External Financial Audit Services; and,
WHEREAS, two proposals were received
Consultant Total Score
BDO USA P.C. 358
Altman, Rogers & Co. 347; and,
WHEREAS, BDO USA P.C. was the highest-ranking proposal with a FY26 cost of $84,000 for external
financial audit services; and,
WHEREAS, the proposals were determined to be responsive and responsible; and,
WHEREAS, the external financial audit services will consist of a three-year term contract with the ability
to extend for two additional one-year terms to conduct an annual external audit of the City of Kenai ; and,
WHEREAS, the annual contract amount may vary depending on the number of state and federal audits
required; and,
WHEREAS, sufficient funds for this contract are included in the Fiscal Year 2027 Draft budget; and,
WHEREAS, it is in the best interest of the City to award the contract to BDO USA P.C.
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 BDO USA P.C. for the City
of Kenai External Financial Audit Services for three years and may extend for up to two additional one-
year extensions with mutual consent of the vender.
Section 2. That this Resolution takes effect immediately upon passage.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 22ND DAY OF APRIL 2026.
___________________________________
Henry H. Knackstedt, Mayor
ATTEST:
___________________________________
Michelle M. Saner, MMC, City Clerk
Approved by Finance: _________________
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MEMORANDUM
TO: Mayor Knackstedt and Council Members
THROUGH: Terry Eubank, City Manager
THROUGH: Dave Swarner, Finance Director
FROM: Lee Frey, Public Works Director
DATE: April 14, 2026
SUBJECT: Resolution No. 2026-19 - Authorizing a Contract Award for External
Financial Audit Services.
This memo requests Council’s approval to award a contract for the External Financial Audit
Services Contract. The project was released for proposals and two proposals were received.
Proposals were reviewed and scored by and evaluation committee and scores are as follows:
Consultant Total Score
BDO USA P.C. 358
Altman, Rogers & Co. 347
BDO USA P.C. was the highest-ranking proposer for the project with an associated cost of
$84,000 for the audit services.
This will be a three-year contract with the ability to extend the contract for two additional one-year
terms. The costs may vary from year to year based on the number of additional state and federal
audits required. The scope of work will consist of normal duties associated with conducting an
external audit of the City of Kenai financials to assist the City in development of the
Comprehensive Annual Financial Report.
Award of this agreement is in the best interest of the City. Council’s approval is respectfully
requested.
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Sponsored by: Administration
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CITY OF KENAI
RESOLUTION NO. 2026-20
A RESOLUTION AUTHORIZING A CONTRACT AWARD FOR THE 2026 KENAI CITY DOCK LEASE.
WHEREAS, an Invitation to Bid was released on March 19, 2026 with bids due on April 6, 2026 for the
2026 Kenai City Dock Lease; and,
WHEREAS, one bid was received
Contractor Cost
E&E Foods $26,500; and,
WHEREAS, E&E Foods was the only bidder with a bid of $26,500 for the annual dock lease; and,
WHEREAS, the bid was determined to be responsive and responsible; and,
WHEREAS, this lease will provide non-exclusive use of the dock open space, cranes and office space
based on an annual agreement that can be extended for a total of five years; and,
WHEREAS, it is in the best interest of the City to award the contract to E&E Foods.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA:
Section 1. That the City Manager is authorized to execute an annual contract with E&E Foods in the
amount of $26,500 for the Kenai City Dock Lease for up to five years.
Section 2. That this Resolution takes effect immediately upon passage.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 22ND DAY OF APRIL, 2026.
___________________________________
Henry H. Knackstedt, Mayor
ATTEST:
___________________________________
Michelle M. Saner, MMC, City Clerk
Approved by Finance: _________________
Page 16
MEMORANDUM
TO: Mayor Knackstedt and Council Members
THROUGH: Terry Eubank, City Manager
FROM: Lee Frey, Public Works Director
DATE: April 14, 2026
SUBJECT: Resolution No. 2026-20 - Authorizing a Contract Award for the 2026 Kenai
City Dock Lease.
This memo requests Council’s approval to award a contract for the Kenai City Dock lease to E&E
Foods. The contract was released for bidding and one bid was received. Bid received is as follows:
Contractor Cost
E&E Foods $26,500
E&E Foods was the low bid for the contract with a cost of $26,500. The contract allows for non-
exclusive use of the dock open-space, cranes and office area. The contract is allowed to be
renewed annually upon mutual agreement for a total length of up to five years.
Award of this agreement is in the best interest of the City. Council’s approval is respectfully
requested.
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Sponsored by: Administration
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CITY OF KENAI
RESOLUTION NO. 2026-21
A RESOLUTION APPROVING A LEASE FORM FOR LEASING OF TIDELANDS FOR SHORE
FISHERIES AND AUTHORIZING THE CITY MANAGER TO ENTER INTO A SHORE FISHERY LEASE
WITH NATHAN SCOW FOR THE PROPERTY DESCRIBED AS TRACTS A & B, CITY OF KENAI
SHORE FISHERY NO. 1.
WHEREAS, in 1977, the State of Alaska granted the area known as the Alaska Tideland Survey 272
containing approximately 2,752 acres to the City of Kenai pursuant to the City’s Municipal Preference
Right; and,
WHEREAS, Ordinance 3500-2026, relocating tideland leasing provisions for shore fisheries to Kenai
Municipal Code (KMC) Title 22 – City Owned Lands, was enacted on February 4, 2026 and became
effective on March 6, 2026; and,
WHEREAS, a new lease form for leasing tidelands for shore fisheries is needed to reflect the changes to
the lease form necessitated by Ordinance 3500-2026 and must be approved by Council Resolution
pursuant to KMC 22.10.040(e); and,
WHEREAS, KMC 22.10.010(c) provides that a lessee under an existing shore fishery lease will have a
preference right to re-lease the same property upon lease expiration, provided the lessee is in compliance
with all applicable provisions of the Kenai Municipal Code; and,
WHEREAS, the current lessee, Nathan Scow, is in compliance with all applicable sections of Kenai
Municipal Code and is current with all invoiced lease payments; and,
WHEREAS, on March 2, 2026 the City of Kenai provided notice to all existing shore fishery lessees of
the June 30, 2026 lease expiration date; and,
WHEREAS, Nathan Scow timely exercised his preference right to re-lease the property in accordance
with KMC 22.10.010(c); and,
WHEREAS, KMC 22.10.040(e) requires the use of a standard lease form adopted by resolution of the
City Council; and,
WHEREAS, the new Lease term is proposed to commence on July 1, 2026; and,
WHEREAS, approval of the Lease is consistent with the intent of Kenai Municipal Code, supports the
continued authorized use, and is in the best interest of the City.
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 lease with Nathan Scow for the property
described as Tracts A & B, City of Kenai Shore Fishery No. 1, in substantially the form approved by the
City Council.
Section 2. That this Resolution takes effect immediately upon passage.
Page 18
Resolution No. 2026-21
Page 2 of 2
New Text Underlined; [DELETED TEXT BRACKETED]
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 22ND DAY OF APRIL, 2026.
___________________________________
Henry H. Knackstedt, Mayor
ATTEST:
___________________________________
Michelle M. Saner, MMC, City Clerk
Page 19
MEMORANDUM
TO: Mayor Knackstedt and Council Members
THROUGH: Terry Eubank, City Manager
FROM: Kevin Buettner, Planning Director
DATE: April 14, 2026
SUBJECT: Resolution No. 2026-21 - Approving a Lease Form for Leasing of Tidelands
for Shore Fisheries and Authorizing the City Manager to Enter into a Shore
Fishery Lease with Nathan Scow for the Property Described as Tracts A &
B, City of Kenai Shore Fishery No. 1.
This Resolution approves a new standard lease form for tidelands for shore fisheries that is
consistent with recent code amendments and authorizes the City Manager to execute a Shore
Fishery lease. Ordinance 3500-2026, relocating tideland leasing provisions for shore fisheries to
Kenai Municipal Code (KMC) Title 22 - City Owned Lands, was enacted on February 4, 2026 and
became effective on March 6, 2026. To ensure compliance with the new code references, a new
form was created. The draft lease form has been reviewed as to form by the City Attorney.
Pursuant to KMC 22.10.010(c), any new lease form must be approved by Resolution.
The current shore fishery leases expire on June 30, 2026. All current lessees have expressed
their intent to re-Lease their shore fishery tracts for the lease period starting July 1, 2026 and
ending June 30, 2036. Adoption of this lease form and authorizing the City Manager to enter into
the lease will allow the Administration time to fully execute the agreements prior to expiration.
This resolution is specifically regarding the shore fishery tidelands described as Tracts A & B, City
of Kenai Shore Fishery No. 1 to be leased by Nathan Scow.
Thank you for your consideration.
Page 20
SHORE LEASE FISHERY – Nathan Scow
Tracts A & B, City of Kenai Shore Fishery No. 1 LESSOR: _____
LESSEE: _____
1
SHORE FISHERY LEASE
THIS AGREEMENT, entered into this ____ day of _____________, 2026, by and between the
CITY OF KENAI, a home-rule municipal corporation of Alaska, whose address is 210 Fidalgo
Avenue, Kenai AK 99611-7750, hereinafter called “City,” and NATHAN SCOW whose address is
31135 West Southern Avenue, Buckeye, AZ 85326, hereinafter called “Lessee.”
The City, in consideration of the payments of the rents and performance of all the covenants by
the Lessee herein contained, does hereby demise and lease to the Lessee the following described
property in the Kenai Recording District, Third Judicial District, State of Alaska; to wit:
Tracts A & B, City of Kenai Shore Fishery No. 1
A. PURPOSE: The purpose for which the Lease is issued is:
Shore fishery
B. TERM: The term of this Lease is for ten (10) years, commencing on July 1, 2026, and
ending on June 30, 2036.
C. RENTAL PAYMENT: Rental for the above described shore fishery tracts shall be payable
as follow:
1. The annual rental rate shall be $300.00 for each tract. However, should the State of
Alaska set an annual lease rate higher than $300.00 for similar tideland leases for
shore fisheries on land owned by the State, the City may amend the annual rental to
a rate equal to that charged by the State of Alaska.
2. Annual rent for the fiscal year beginning July 1 and ending June 30 shall be payable
in advance on or before the first day of July of each year.
3. Rental for any period which is less than one (1) year shall be prorated based on the
rate of the last full year.
D. GENERAL COVENANTS:
1. USES: Except as provided herein, any use of lands or facilities without the written
consent of the City is prohibited.
2. USES NOT CONTEMPLATED PROHIBITED: Solicitation of donations or the
promotion or operation of any part or kind of business or commercial enterprises, other
than as specifically set forth herein, upon, or in shore fishery lands, without the written
consent of the City is prohibited.
3. ASSIGNMENT OR SUBLETTING: Lessee with the City’s written consent, which will
not be unreasonably denied, may assign for other than collateral purposes, in whole
or in part, its rights as Lessee hereunder.
Page 21
SHORE LEASE FISHERY – Nathan Scow
Tracts A & B, City of Kenai Shore Fishery No. 1 LESSOR: _____
LESSEE: _____
2
Any assignee of part or all of the leased premises shall assume the duties and
obligations of the Lessee as to such part or all of the leased premises.
No such assignment, however, will discharge Lessee from its duties and obligations
hereunder.
4. COSTS AND EXPENSES: Costs and expenses incident to this lease, including but
not limited to, recording costs shall be paid by Lessee.
5. TREATMENT OF DEMISE: The Lessee agrees to keep the premises clean and in
good order at its own expense, suffering no strip or waste thereof, nor removing any
material therefrom, except fisheries resources, without written permission of the City.
At the expiration of the term fixed, or any sooner determination of the Lease, the
Lessee will peaceably and quietly quit and surrender the premises to the City.
6. PAYMENT OF RENT: Checks, bank drafts, or postal money orders shall be made
payable to the City of Kenai and delivered to the City Administration Building, Kenai,
Alaska.
7. HERRING SPAWN COVENANT: This Lease is issued subject to Sections 16.10.172
– 16.10.175 of the Alaska Statutes and it is agreed that the covenants, terms and
conditions herein contained shall be binding upon the successors and assigns of the
respective parties hereto.
8. DEFAULT RIGHT OF ENTRY: Should default be made in payment of any portion of
the rent or fees when due, or in any of the covenants or conditions contained in the
Lease or in any regulations now or hereinafter in force, then in such event the City
shall by written notice give Lessee thirty (30) days to cure such default or defaults,
after which if the default is not cured, the City may terminate the Lease, reenter and
take possession of the premises, and remove all persons therefrom.
9. LEASE UTILIZATION: Leased lands shall be utilized for purposes within the scope of
the terms of the Lease and the terms of the deed under which the land was granted to
the City (and any releases pertinent thereto), in conformity with the ordinances of the
City and Borough. Utilization or development for other than the allowed uses shall
constitute a violation of the Lease and subject the Lease to cancellation at any time.
10. CONDITION OF PREMISES: The premises demised herein are unimproved and are
leased on an “as is, where is” basis.
11. UNDERLYING TITLE: The interests transferred, or conveyed by this Lease are subject
to any and all of the covenants, terms, or conditions contained in the instruments
conveying title or other interests to the City.
12. RIGHT OF INSPECTION: The City shall have the right at all reasonable times to enter
the premises, or any part thereof, for the purposes of inspection.
Page 22
SHORE LEASE FISHERY – Nathan Scow
Tracts A & B, City of Kenai Shore Fishery No. 1 LESSOR: _____
LESSEE: _____
3
13. ASSUMPTION OF RISK AND INDEMITY, DEFEND, AND HOLD HARMLESS
AGREEMENT: Lessee assumes full control and sole responsibility as between Lessee
and the City for the activities of Lessee, its personnel, employees, and persons acting
on behalf or under the authority of the Lessee anywhere on the leased premises.
Lessee shall provide all proper safeguards and shall assume all risks incurred in its
activities on and access to the leased premises and its exercise of the privileges
granted in this Lease.
Lessee agrees to fully indemnify, defend, and hold harmless, the City, its officers,
agents, employees, and volunteers from and against all actions, damages, costs,
liability, claims, losses, including death, judgements, penalties, and expenses of every
type and description, including any fees and/or costs reasonably incurred by the City’s
staff attorneys and outside attorneys and any fees and expenses incurred in enforcing
this provision (hereafter collectively referred to as “Liabilities”), to which any or all of
them may be subjected, to the extent such Liabilities are caused by or result from any
negligent act or omission or willful misconduct of the Lessee in connection with or
arising from or out of Lessee’s activities on or use of the premises. This shall be
continuing obligations and shall remain in effect after termination of this Lease.
14. COLLECTION ON UNPAID MONIES: Any or all rents, charges, fees, or other
consideration which are due and unpaid at the expiration or voluntary or involuntary
termination or cancellation of this Lease, shall have such lien rights as are allowed by
law, and enforcement by distraint may be made by the City or its authorized agent.
15. EASEMENT GRANTS RESERVED: The City reserves the right to grant and control
easements in, or above the land leased. No such grant or easement will be made that
will unreasonably interfere with the Lessee’s use of the land, and Lessee shall have
free access and use of any and all parking and loading rights, rights of ingress and
egress now or hereafter appertaining to the leased premises.
16. SURRENDER ON TERMINATION: Lessee shall, on the last day of the term of this
Lease or upon any earlier termination of this Lease, surrender and deliver the premises
into the possession and use of the City without fraud or delay in good order, condition,
and repair, except for reasonable wear and tear since the last necessary repair,
replacement, restoration or renewal, free and clear of all lettings and occupancies
unless expressly permitted by the City in writing, and free and clear of all liens and
encumbrances other than those created by and for loans to the City. Upon the end of
the term of this Lease or any earlier termination thereof, title to any shore fishery
equipment left on the leased land for a period in excess of thirty (30) days shall
automatically vest in the City without requirement of any deed, conveyance, or bill of
sale thereon. However, if the City should require any such document in confirmation
hereof, Lessee shall execute, acknowledge, and deliver the same and shall pay any
charge, tax, and fee asserted or imposed by any and all governmental units in
connection herewith.
Page 23
SHORE LEASE FISHERY – Nathan Scow
Tracts A & B, City of Kenai Shore Fishery No. 1 LESSOR: _____
LESSEE: _____
4
17. RIGHT TO ENJOYMENT AND PEACEABLE POSSESSION: The City hereby agrees
and covenants that the Lessee, upon paying rent and performing other covenants,
terms, and conditions of this Lease, shall have the right to quietly and peacefully hold,
use, occupy, and enjoy the said leased premises, subject to the rights of the general
public and except that any inconvenience caused by public works projects in or about
the leasehold premises shall not be construed as a denial of the right of quiet or
peaceable possession.
18. LESSEE TO PAY TAXES: Lessee shall pay all lawful taxes and assessments which,
during the term hereof may become a lien upon or which may be levied by the State,
Borough, City, or any other tax levying body, upon any taxable possessory right which
Lessee may have in or to the property by reason of its use or occupancy or the terms
of this lease, provided however, that nothing herein contained shall prevent Lessee
from contesting any increase in such tax or assessment through procedures outlined
in State statutes.
19. SPECIAL SERVICES: Lessee agrees to pay the City a reasonable charge for any
special service or facilities required by Lessee in writing, which services or facilities
are not provided for herein.
20. NO PARTNERSHIP OR JOINT VENTURE CREATED: It is expressly understood that
the City shall not be construed or held to be a partner or joint venture of Lessee in the
conduct of business on the demised premises; and it is expressly understood and
agreed that the relationship between the parties hereto is, and shall at all times remain
landlord and tenant.
21. DEFAULT BANKRUPTCY, ETC.: If the Lessee shall make any assignment for the
benefit of creditors, or shall be adjudged bankrupt, or if a receiver is appointed for the
Lessee or Lessee’s assets, or any interest under this Lease, and if the appointment of
the receiver is not vacated within thirty (30) days, or if a voluntary petition is filed under
Section 18(a) of the Bankruptcy Act by the Lessee, then and in any event, the City
may, upon giving the Lessee thirty (30) days’ notice, terminate this lease.
22. NONDISCRIMINATION: The Lessee, Lessee’s personal representatives, successors
in interest, and assigns, as a part of the consideration hereof, does hereby covenant
and agree as a covenant running with the land that:
(a) No person on the grounds of race, color, or national origin shall be excluded
from participation in, denied the benefits of, or be otherwise subjected to
discrimination in the use of said shore fishery:
23. PARTIAL INVALIDITY: If any term, provision, condition, or part of this Lease is
declared by a court of competent jurisdiction to be invalid or unconstitutional, the
remaining terms, provisions, conditions, or parts shall continue in full force and effect
as though such declaration was not made.
Page 24
SHORE LEASE FISHERY – Nathan Scow
Tracts A & B, City of Kenai Shore Fishery No. 1 LESSOR: _____
LESSEE: _____
5
24. MODIFICATION: No lease may be modified orally or in any manner other than by an
agreement in writing, signed by all parties in interest or their successors in interest.
Any such modification shall require Council approval.
25. WARRANTY: The City does not warrant that the property which is the subject of this
Lease is suited for the use authorize herein, and no guarantee is given or implied that
it shall be profitable or suitable to employ he property to such use.
26. RIGHT TO ADOPT RULES: The City reserves the right to adopt, amend, and enforce
reasonable rules and regulations governing the demised premises and the public
areas and facilities used in connection therewith. Except in cases of emergency, no
rule or regulation hereafter adopted or amended by the City shall become applicable
unless Lessee has been given thirty (30) days’ notice of adoption or amendment
thereof.
27. NON-LIABILITY: The City shall not be liable to Lessee for any diminution or deprivation
of possession, or of Lessee’s right hereunder, on account of the exercise of any such
right or authority as provided in this or the preceding section, nor shall Lessee be
entitled to terminate the whole or any portion of the leasehold estate herein created,
by reason of the exercise of such rights or authority, unless the exercise thereof shall
so interfere with Lessee’s use and occupancy of the leasehold estate as to constitute
a termination in whole or in part of this lease by operation of law in accordance with
the laws of the State of Alaska and of the United States made applicable to the states.
28. COMPLIANCE WITH LAWS:
(a) Lessee shall observe, obey, and comply with all applicable laws, ordinances, rules,
and regulations of the Federal, State, Borough, or City governments or of any other
public authorities now or hereafter in any manner affecting the leased premises.
(b) Lessee agrees to hold the City financially harmless:
(1) From the consequences of any violation of such laws, ordinances, and/or
regulations; and
(2) From all claims for damages on account of injuries, death, or property damage
resulting from such violation.
(c) Lessee further agrees it will not permit any unlawful occupation, business, or trade
to be conducted on said premises or any use to be made thereof contrary to any
law, ordinance, or regulation as aforesaid with respect thereto, including zoning
ordinances, rules, and regulations.
29. CONDEMNATION: In the event the leased premises or any part thereof shall be
condemned and taken for a public or a quasi-public use, then upon payment of any
award or compensation arising from such condemnation, there shall be such division
of the proceeds, such abatement in rent payable during the term or any extension of
the term hereof, and such other adjustments as the parties may agree upon as being
just and equitable under all the circumstances.
Page 25
SHORE LEASE FISHERY – Nathan Scow
Tracts A & B, City of Kenai Shore Fishery No. 1 LESSOR: _____
LESSEE: _____
6
If the City and lessee are unable to agree within thirty (30) days after such an award
has been paid into Court, upon what division, annual abatement in rent, and other
adjustments are just and equitable, the disputes shall be determined by arbitration.
30. PROTECTION OF SUBLESSEES: To protect the position of any sublessee(s)
hereafter obtaining any property interests in the leasehold estate granted by the
Lessee hereunder, the City agrees that in the event of the cancellation, termination,
expiration, or surrender of this Lease (the ground lease), the City will accept the
sublessee, its successors and assigns, as its Lessee for a period equal to the full
unelapsed portion of the term of the sublease, including any extensions or renewals
thereof, not exceeding the term of this Lease, upon the same covenants and conditions
therein contained, to the extent that said covenants and conditions are not inconsistent
with any of the terms and conditions of this Lease, provided such Sublessee shall
make full and complete attornment to the City for the balance of the term of such
sublease so as to establish direct privity of estate and contract between the City and
the Sublessee with the same force and effect as though such sublease was originally
made directly between the City and such Sublessee; and further provided such
Sublessee agrees to comply with all the provisions of the ground lease.
31. SUCCESSORS IN INTEREST: This Lease shall be binding upon and shall inure to
the benefit of the respective successors and assigns of the parties hereto, subject to
such specific limitations on assignments as are provided for herein.
32. GOVERNING LAW: This indenture of Lease shall be governed in all respects by the
laws of the State of Alaska.
33. NOTICES:
(a) Any notices required by this Lease shall be in writing and shall be deemed to be
duly given only if delivered personally or mailed by certified or registered mail in a
prepaid envelope addressed to the parties of the address set forth in the opening
paragraph of this lease unless such address has been changed pursuant to sub-
paragraph (b) hereafter, and in that case shall to the most recent address so
changed. Any notice so mailed shall be deemed delivered on the date it is
deposited in a U.S. general or branch post office.
The City shall also mail a copy of any notice given to the Lessee, by registered or
certified mail, to any leasehold lender (mortgage, beneficiary of a deed of trust,
security assignee) who shall have given the City notice of such mortgage, deed of
trust, or security assignment.
(b) Any such addresses may be changed by an appropriate notice in writing to all other
parties affected provided such change of address is given to the other parties by
the means outlined in paragraph (a) above at least fifteen (15) days prior to the
giving of the particular notice in issue.
Page 26
SHORE LEASE FISHERY – Nathan Scow
Tracts A & B, City of Kenai Shore Fishery No. 1 LESSOR: _____
LESSEE: _____
7
34. ENTRY AND RE-ENTRY: In the event that the Lease should be terminated as
hereinbefore provided, or by summary proceedings or otherwise, or in the event that
the demised lands or any part thereof should be abandoned by the Lessee during said
term, the City or its agents, servants, or representatives may, immediately or any time
thereafter, re-enter, and resume possession of said lands or such part thereof and
remove all persona and property therefrom, either by summary proceedings or by a
suitable action or proceeding at law without being liable for any damages therefor. No
re-entry by the City shall be deemed an acceptance of a surrender of the lease.
35. RETENTION OF RENTAL: In the event that the Lease should be terminated because
of any breach by the Lessee as herein provided, the rental payment last made by the
Lessee shall be retained by the City as partial or total liquidated damages for said
breach.
36. WRITTEN WAIVER: The receipt of rent by the City with knowledge of any breach of
the Lease by the Lessee, or any default on the part of the Lessee in observance or
performance of any of the conditions or covenants of the Lease, shall not be deemed
to be a waiver of any provisions of the Lease. No failure on the part of the City to
enforce any covenant or provision therein contained, nor any waiver of any right
thereunder by the City, unless in writing, shall discharge or invalidate such covenants
or provisions, or affect the right of the City to enforce the same in the event of any
subsequent breach or default.
The receipt, by the City, of any rent or any other sum of money after the termination,
in any manner, of the term therein demised, or after the giving by the City of any notice
thereunder to effect such termination, shall not reinstate, continue, or extend the
resultant term therein demised, or destroy, or in any manner impair the efficacy of any
such notice of termination as may have been given thereunder by the City to the
Lessee prior to the receipt of any such sum of money or other consideration, unless
so agreed to in writing and signed by the City.
37. ZONING LAWS: Leased tidelands and shore fishery lands shall be utilized in
accordance with the building and zoning ordinances and rules and regulations of the
City. Failure to do so shall constitute a default.
38. PERSONAL USE OF MATERIALS: All coal, oil, gas, and other minerals and all
deposits of stone or gravel valuable for extraction or utilization and all materials subject
to Title II, Division I, Chapters 4, 5, and 6 of the Alaska Administrative Code are
excepted from the operation of a surface Lease. Specifically, the Lessee of the surface
rights shall not sell or remove for the use elsewhere any timber, stone, gravel, peat
moss, topsoil, or any other material valuable for building or commercial purposes;
provided, however, that material required for the development of the leasehold may
be used if its use is first approved by the City Manager.
39. MUTUAL CANCELLATION: Leases in good standing may be cancelled in whole or in
part at any time upon mutual written agreement by Lessee and the City Council.
Page 27
SHORE LEASE FISHERY – Nathan Scow
Tracts A & B, City of Kenai Shore Fishery No. 1 LESSOR: _____
LESSEE: _____
8
40. UNLAWFUL USE PROHIBITED: Lessee shall not allow the leasehold premises to be
used for an unlawful purpose.
41. APPROVAL OF OTHER AUTHORITIES: The issuance by the City of leases does not
relieve the Lessee of responsibility of obtaining licenses or permits as may be required
by duly authorized Borough, State, or Federal agencies.
42. PREFERENCE RIGHT TO RE-LEASE: A Lessee under an existing lease shall, upon
the expiration or the termination by mutual agreement of said Lease, be allowed a
preference right to re-lease those lands previously leased by him if all other sections
of the Kenai Municipal Code are complied with. Re-leasing will not necessarily be
under the same terms and conditions as the prior lease. When the lease is offered to
the preference right holder, the preference right holder shall exercise the right within
thirty (30) calendar days after said lease is offered by the City. Failure to do so shall
result in forfeiture and cancellation of the preference right. No preference right shall
inure to a Lessee whose lease has been terminated by cause.
IN WITNESS WHEREOF the parties hereto have hereunto set their hands, the day
and year stated in the individual acknowledgements below.
LESSOR:
CITY OF KENAI
BY: __________________________________________________
Terry Eubank Date
City Manager
LESSEE:
NATHAN SCOW
BY: __________________________________________________
Nathan Scow Date
Page 28
Sponsored by: Administration
New Text Underlined; [DELETED TEXT BRACKETED]
CITY OF KENAI
RESOLUTION NO. 2026-22
A RESOLUTION APPROVING A LEASE FORM FOR LEASING OF TIDELANDS FOR SHORE
FISHERIES AND AUTHORIZING THE CITY MANAGER TO ENTER INTO A SHORE FISHERY LEASE
WITH TIDE CHASER FISHERY, LLC FOR THE PROPERTY DESCRIBED AS CITY OF KENAI SHORE
FISHERY NO. 2.
WHEREAS, in 1977, the State of Alaska granted the area known as the Alaska Tideland Survey 272
containing approximately 2,752 acres to the City of Kenai pursuant to the City’s Municipal Preference
Right; and,
WHEREAS, Ordinance 3500-2026, relocating tideland leasing provisions for shore fisheries to Kenai
Municipal Code (KMC) Title 22 – City Owned Lands, was enacted on February 4, 2026 and became
effective on March 6, 2026; and,
WHEREAS, a new lease form for leasing tidelands for shore fisheries is needed to reflect the changes to
the lease form necessitated by Ordinance 3500-2026 and must be approved by Council Resolution
pursuant to KMC 22.10.040(e); and,
WHEREAS, KMC 22.10.010(c) provides that a lessee under an existing shore fishery lease will have a
preference right to re-lease the same property upon lease expiration, provided the lessee is in compliance
with all applicable provisions of the Kenai Municipal Code; and,
WHEREAS, the current lessee, Tide Chaser Fishery, LLC, is in compliance with all applicable sections
of Kenai Municipal Code and is current with all invoiced lease payments; and,
WHEREAS, on March 2, 2026 the City of Kenai provided notice to all existing shore fishery lessees of
the June 30, 2026 lease expiration date; and,
WHEREAS, Tide Chaser Fishery, LLC timely exercised their preference right to re-lease the property in
accordance with KMC 22.10.010(c); and,
WHEREAS, KMC 22.10.040(e) requires the use of a standard lease form adopted by resolution of the
City Council; and,
WHEREAS, the new Lease term is proposed to commence on July 1, 2026; and,
WHEREAS, approval of the Lease is consistent with the intent of Kenai Municipal Code, supports the
continued authorized use, and is in the best interest of the City.
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 lease with Tide Chaser Fishery, LLC for
the property described as City of Kenai Shore Fishery No. 2, in substantially the form approved by the
City Council.
Section 2. That this Resolution takes effect immediately upon passage.
Page 29
Resolution No. 2026-22
Page 2 of 2
New Text Underlined; [DELETED TEXT BRACKETED]
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 22ND DAY OF APRIL, 2026.
___________________________________
Henry H. Knackstedt, Mayor
ATTEST:
___________________________________
Michelle M. Saner, MMC, City Clerk
Page 30
MEMORANDUM
TO: Mayor Knackstedt and Council Members
THROUGH: Terry Eubank, City Manager
FROM: Kevin Buettner, Planning Director
DATE: April 14, 2026
SUBJECT: Resolution No. 2026-22 - Approving a Lease Form for Leasing of Tidelands
for Shore Fisheries and Authorizing the City Manager to Enter into a Shore
Fishery Lease with Tide Chaser Fishery, LLC for the Property Described as
City of Kenai Shore Fishery No. 2
This Resolution approves a new standard lease form for tidelands for shore fisheries that is
consistent with recent code amendments and authorizes the City Manager to execute a Shore
Fishery lease. Ordinance 3500-2026, relocating tideland leasing provisions for shore fisheries to
Kenai Municipal Code (KMC) Title 22 - City Owned Lands, was enacted on February 4, 2026 and
became effective on March 6, 2026. To ensure compliance with the new code references, a new
form was created. The draft lease form has been reviewed as to form by the City Attorney.
Pursuant to KMC 22.10.010(c), any new lease form must be approved by Resolution.
The current shore fishery leases expire on June 30, 2026. All current lessees have expressed
their intent to re-Lease their shore fishery tracts for the lease period starting July 1, 2026 and
ending June 30, 2036. Adoption of this lease form and authorizing the City Manager to enter into
the lease will allow the Administration time to fully execute the agreements prior to expiration.
This resolution is specifically regarding the shore fishery tidelands described as City of Kenai
Shore Fishery No. 2 to be leased by Tide Chaser Fishery, LLC.
Thank you for your consideration.
Page 31
SHORE LEASE FISHERY – Tide Chaser Fishery, LLC
City of Kenai Shore Fishery No. 2 LESSOR: _____
LESSEE: _____
1
SHORE FISHERY LEASE
THIS AGREEMENT, entered into this ____ day of _____________, 2026, by and between the
CITY OF KENAI, a home-rule municipal corporation of Alaska, whose address is 210 Fidalgo
Avenue, Kenai AK 99611-7750, hereinafter called “City,” and TIDE CHASER FISHERY, LLC
whose address is 265 N. Main Street, Suite D165, Kaysville, UT 84037-1424, hereinafter called
“Lessee.”
The City, in consideration of the payments of the rents and performance of all the covenants by
the Lessee herein contained, does hereby demise and lease to the Lessee the following described
property in the Kenai Recording District, Third Judicial District, State of Alaska; to wit:
City of Kenai Shore Fishery No. 2
A. PURPOSE: The purpose for which the Lease is issued is:
Shore fishery
B. TERM: The term of this Lease is for ten (10) years, commencing on July 1, 2026, and
ending on June 30, 2036.
C. RENTAL PAYMENT: Rental for the above described shore fishery tracts shall be payable
as follow:
1. The annual rental rate shall be $300.00 for each tract. However, should the State of
Alaska set an annual lease rate higher than $300.00 for similar tideland leases for
shore fisheries on land owned by the State, the City may amend the annual rental to
a rate equal to that charged by the State of Alaska.
2. Annual rent for the fiscal year beginning July 1 and ending June 30 shall be payable
in advance on or before the first day of July of each year.
3. Rental for any period which is less than one (1) year shall be prorated based on the
rate of the last full year.
D. GENERAL COVENANTS:
1. USES: Except as provided herein, any use of lands or facilities without the written
consent of the City is prohibited.
2. USES NOT CONTEMPLATED PROHIBITED: Solicitation of donations or the
promotion or operation of any part or kind of business or commercial enterprises, other
than as specifically set forth herein, upon, or in shore fishery lands, without the written
consent of the City is prohibited.
3. ASSIGNMENT OR SUBLETTING: Lessee with the City’s written consent, which will
not be unreasonably denied, may assign for other than collateral purposes, in whole
or in part, its rights as Lessee hereunder.
Page 32
SHORE LEASE FISHERY – Tide Chaser Fishery, LLC
City of Kenai Shore Fishery No. 2 LESSOR: _____
LESSEE: _____
2
Any assignee of part or all of the leased premises shall assume the duties and
obligations of the Lessee as to such part or all of the leased premises.
No such assignment, however, will discharge Lessee from its duties and obligations
hereunder.
4. COSTS AND EXPENSES: Costs and expenses incident to this lease, including but
not limited to, recording costs shall be paid by Lessee.
5. TREATMENT OF DEMISE: The Lessee agrees to keep the premises clean and in
good order at its own expense, suffering no strip or waste thereof, nor removing any
material therefrom, except fisheries resources, without written permission of the City.
At the expiration of the term fixed, or any sooner determination of the Lease, the
Lessee will peaceably and quietly quit and surrender the premises to the City.
6. PAYMENT OF RENT: Checks, bank drafts, or postal money orders shall be made
payable to the City of Kenai and delivered to the City Administration Building, Kenai,
Alaska.
7. HERRING SPAWN COVENANT: This Lease is issued subject to Sections 16.10.172
– 16.10.175 of the Alaska Statutes and it is agreed that the covenants, terms and
conditions herein contained shall be binding upon the successors and assigns of the
respective parties hereto.
8. DEFAULT RIGHT OF ENTRY: Should default be made in payment of any portion of
the rent or fees when due, or in any of the covenants or conditions contained in the
Lease or in any regulations now or hereinafter in force, then in such event the City
shall by written notice give Lessee thirty (30) days to cure such default or defaults,
after which if the default is not cured, the City may terminate the Lease, reenter and
take possession of the premises, and remove all persons therefrom.
9. LEASE UTILIZATION: Leased lands shall be utilized for purposes within the scope of
the terms of the Lease and the terms of the deed under which the land was granted to
the City (and any releases pertinent thereto), in conformity with the ordinances of the
City and Borough. Utilization or development for other than the allowed uses shall
constitute a violation of the Lease and subject the Lease to cancellation at any time.
10. CONDITION OF PREMISES: The premises demised herein are unimproved and are
leased on an “as is, where is” basis.
11. UNDERLYING TITLE: The interests transferred, or conveyed by this Lease are subject
to any and all of the covenants, terms, or conditions contained in the instruments
conveying title or other interests to the City.
12. RIGHT OF INSPECTION: The City shall have the right at all reasonable times to enter
the premises, or any part thereof, for the purposes of inspection.
Page 33
SHORE LEASE FISHERY – Tide Chaser Fishery, LLC
City of Kenai Shore Fishery No. 2 LESSOR: _____
LESSEE: _____
3
13. ASSUMPTION OF RISK AND INDEMITY, DEFEND, AND HOLD HARMLESS
AGREEMENT: Lessee assumes full control and sole responsibility as between Lessee
and the City for the activities of Lessee, its personnel, employees, and persons acting
on behalf or under the authority of the Lessee anywhere on the leased premises.
Lessee shall provide all proper safeguards and shall assume all risks incurred in its
activities on and access to the leased premises and its exercise of the privileges
granted in this Lease.
Lessee agrees to fully indemnify, defend, and hold harmless, the City, its officers,
agents, employees, and volunteers from and against all actions, damages, costs,
liability, claims, losses, including death, judgements, penalties, and expenses of every
type and description, including any fees and/or costs reasonably incurred by the City’s
staff attorneys and outside attorneys and any fees and expenses incurred in enforcing
this provision (hereafter collectively referred to as “Liabilities”), to which any or all of
them may be subjected, to the extent such Liabilities are caused by or result from any
negligent act or omission or willful misconduct of the Lessee in connection with or
arising from or out of Lessee’s activities on or use of the premises. This shall be
continuing obligations and shall remain in effect after termination of this Lease.
14. COLLECTION ON UNPAID MONIES: Any or all rents, charges, fees, or other
consideration which are due and unpaid at the expiration or voluntary or involuntary
termination or cancellation of this Lease, shall have such lien rights as are allowed by
law, and enforcement by distraint may be made by the City or its authorized agent.
15. EASEMENT GRANTS RESERVED: The City reserves the right to grant and control
easements in, or above the land leased. No such grant or easement will be made that
will unreasonably interfere with the Lessee’s use of the land, and Lessee shall have
free access and use of any and all parking and loading rights, rights of ingress and
egress now or hereafter appertaining to the leased premises.
16. SURRENDER ON TERMINATION: Lessee shall, on the last day of the term of this
Lease or upon any earlier termination of this Lease, surrender and deliver the premises
into the possession and use of the City without fraud or delay in good order, condition,
and repair, except for reasonable wear and tear since the last necessary repair,
replacement, restoration or renewal, free and clear of all lettings and occupancies
unless expressly permitted by the City in writing, and free and clear of all liens and
encumbrances other than those created by and for loans to the City. Upon the end of
the term of this Lease or any earlier termination thereof, title to any shore fishery
equipment left on the leased land for a period in excess of thirty (30) days shall
automatically vest in the City without requirement of any deed, conveyance, or bill of
sale thereon. However, if the City should require any such document in confirmation
hereof, Lessee shall execute, acknowledge, and deliver the same and shall pay any
charge, tax, and fee asserted or imposed by any and all governmental units in
connection herewith.
Page 34
SHORE LEASE FISHERY – Tide Chaser Fishery, LLC
City of Kenai Shore Fishery No. 2 LESSOR: _____
LESSEE: _____
4
17. RIGHT TO ENJOYMENT AND PEACEABLE POSSESSION: The City hereby agrees
and covenants that the Lessee, upon paying rent and performing other covenants,
terms, and conditions of this Lease, shall have the right to quietly and peacefully hold,
use, occupy, and enjoy the said leased premises, subject to the rights of the general
public and except that any inconvenience caused by public works projects in or about
the leasehold premises shall not be construed as a denial of the right of quiet or
peaceable possession.
18. LESSEE TO PAY TAXES: Lessee shall pay all lawful taxes and assessments which,
during the term hereof may become a lien upon or which may be levied by the State,
Borough, City, or any other tax levying body, upon any taxable possessory right which
Lessee may have in or to the property by reason of its use or occupancy or the terms
of this lease, provided however, that nothing herein contained shall prevent Lessee
from contesting any increase in such tax or assessment through procedures outlined
in State statutes.
19. SPECIAL SERVICES: Lessee agrees to pay the City a reasonable charge for any
special service or facilities required by Lessee in writing, which services or facilities
are not provided for herein.
20. NO PARTNERSHIP OR JOINT VENTURE CREATED: It is expressly understood that
the City shall not be construed or held to be a partner or joint venture of Lessee in the
conduct of business on the demised premises; and it is expressly understood and
agreed that the relationship between the parties hereto is, and shall at all times remain
landlord and tenant.
21. DEFAULT BANKRUPTCY, ETC.: If the Lessee shall make any assignment for the
benefit of creditors, or shall be adjudged bankrupt, or if a receiver is appointed for the
Lessee or Lessee’s assets, or any interest under this Lease, and if the appointment of
the receiver is not vacated within thirty (30) days, or if a voluntary petition is filed under
Section 18(a) of the Bankruptcy Act by the Lessee, then and in any event, the City
may, upon giving the Lessee thirty (30) days’ notice, terminate this lease.
22. NONDISCRIMINATION: The Lessee, Lessee’s personal representatives, successors
in interest, and assigns, as a part of the consideration hereof, does hereby covenant
and agree as a covenant running with the land that:
(a) No person on the grounds of race, color, or national origin shall be excluded
from participation in, denied the benefits of, or be otherwise subjected to
discrimination in the use of said shore fishery:
23. PARTIAL INVALIDITY: If any term, provision, condition, or part of this Lease is
declared by a court of competent jurisdiction to be invalid or unconstitutional, the
remaining terms, provisions, conditions, or parts shall continue in full force and effect
as though such declaration was not made.
Page 35
SHORE LEASE FISHERY – Tide Chaser Fishery, LLC
City of Kenai Shore Fishery No. 2 LESSOR: _____
LESSEE: _____
5
24. MODIFICATION: No lease may be modified orally or in any manner other than by an
agreement in writing, signed by all parties in interest or their successors in interest.
Any such modification shall require Council approval.
25. WARRANTY: The City does not warrant that the property which is the subject of this
Lease is suited for the use authorize herein, and no guarantee is given or implied that
it shall be profitable or suitable to employ he property to such use.
26. RIGHT TO ADOPT RULES: The City reserves the right to adopt, amend, and enforce
reasonable rules and regulations governing the demised premises and the public
areas and facilities used in connection therewith. Except in cases of emergency, no
rule or regulation hereafter adopted or amended by the City shall become applicable
unless Lessee has been given thirty (30) days’ notice of adoption or amendment
thereof.
27. NON-LIABILITY: The City shall not be liable to Lessee for any diminution or deprivation
of possession, or of Lessee’s right hereunder, on account of the exercise of any such
right or authority as provided in this or the preceding section, nor shall Lessee be
entitled to terminate the whole or any portion of the leasehold estate herein created,
by reason of the exercise of such rights or authority, unless the exercise thereof shall
so interfere with Lessee’s use and occupancy of the leasehold estate as to constitute
a termination in whole or in part of this lease by operation of law in accordance with
the laws of the State of Alaska and of the United States made applicable to the states.
28. COMPLIANCE WITH LAWS:
(a) Lessee shall observe, obey, and comply with all applicable laws, ordinances, rules,
and regulations of the Federal, State, Borough, or City governments or of any other
public authorities now or hereafter in any manner affecting the leased premises.
(b) Lessee agrees to hold the City financially harmless:
(1) From the consequences of any violation of such laws, ordinances, and/or
regulations; and
(2) From all claims for damages on account of injuries, death, or property damage
resulting from such violation.
(c) Lessee further agrees it will not permit any unlawful occupation, business, or trade
to be conducted on said premises or any use to be made thereof contrary to any
law, ordinance, or regulation as aforesaid with respect thereto, including zoning
ordinances, rules, and regulations.
29. CONDEMNATION: In the event the leased premises or any part thereof shall be
condemned and taken for a public or a quasi-public use, then upon payment of any
award or compensation arising from such condemnation, there shall be such division
of the proceeds, such abatement in rent payable during the term or any extension of
the term hereof, and such other adjustments as the parties may agree upon as being
just and equitable under all the circumstances.
Page 36
SHORE LEASE FISHERY – Tide Chaser Fishery, LLC
City of Kenai Shore Fishery No. 2 LESSOR: _____
LESSEE: _____
6
If the City and lessee are unable to agree within thirty (30) days after such an award
has been paid into Court, upon what division, annual abatement in rent, and other
adjustments are just and equitable, the disputes shall be determined by arbitration.
30. PROTECTION OF SUBLESSEES: To protect the position of any sublessee(s)
hereafter obtaining any property interests in the leasehold estate granted by the
Lessee hereunder, the City agrees that in the event of the cancellation, termination,
expiration, or surrender of this Lease (the ground lease), the City will accept the
sublessee, its successors and assigns, as its Lessee for a period equal to the full
unelapsed portion of the term of the sublease, including any extensions or renewals
thereof, not exceeding the term of this Lease, upon the same covenants and conditions
therein contained, to the extent that said covenants and conditions are not inconsistent
with any of the terms and conditions of this Lease, provided such Sublessee shall
make full and complete attornment to the City for the balance of the term of such
sublease so as to establish direct privity of estate and contract between the City and
the Sublessee with the same force and effect as though such sublease was originally
made directly between the City and such Sublessee; and further provided such
Sublessee agrees to comply with all the provisions of the ground lease.
31. SUCCESSORS IN INTEREST: This Lease shall be binding upon and shall inure to
the benefit of the respective successors and assigns of the parties hereto, subject to
such specific limitations on assignments as are provided for herein.
32. GOVERNING LAW: This indenture of Lease shall be governed in all respects by the
laws of the State of Alaska.
33. NOTICES:
(a) Any notices required by this Lease shall be in writing and shall be deemed to be
duly given only if delivered personally or mailed by certified or registered mail in a
prepaid envelope addressed to the parties of the address set forth in the opening
paragraph of this lease unless such address has been changed pursuant to sub-
paragraph (b) hereafter, and in that case shall to the most recent address so
changed. Any notice so mailed shall be deemed delivered on the date it is
deposited in a U.S. general or branch post office.
The City shall also mail a copy of any notice given to the Lessee, by registered or
certified mail, to any leasehold lender (mortgage, beneficiary of a deed of trust,
security assignee) who shall have given the City notice of such mortgage, deed of
trust, or security assignment.
(b) Any such addresses may be changed by an appropriate notice in writing to all other
parties affected provided such change of address is given to the other parties by
the means outlined in paragraph (a) above at least fifteen (15) days prior to the
giving of the particular notice in issue.
Page 37
SHORE LEASE FISHERY – Tide Chaser Fishery, LLC
City of Kenai Shore Fishery No. 2 LESSOR: _____
LESSEE: _____
7
34. ENTRY AND RE-ENTRY: In the event that the Lease should be terminated as
hereinbefore provided, or by summary proceedings or otherwise, or in the event that
the demised lands or any part thereof should be abandoned by the Lessee during said
term, the City or its agents, servants, or representatives may, immediately or any time
thereafter, re-enter, and resume possession of said lands or such part thereof and
remove all persona and property therefrom, either by summary proceedings or by a
suitable action or proceeding at law without being liable for any damages therefor. No
re-entry by the City shall be deemed an acceptance of a surrender of the lease.
35. RETENTION OF RENTAL: In the event that the Lease should be terminated because
of any breach by the Lessee as herein provided, the rental payment last made by the
Lessee shall be retained by the City as partial or total liquidated damages for said
breach.
36. WRITTEN WAIVER: The receipt of rent by the City with knowledge of any breach of
the Lease by the Lessee, or any default on the part of the Lessee in observance or
performance of any of the conditions or covenants of the Lease, shall not be deemed
to be a waiver of any provisions of the Lease. No failure on the part of the City to
enforce any covenant or provision therein contained, nor any waiver of any right
thereunder by the City, unless in writing, shall discharge or invalidate such covenants
or provisions, or affect the right of the City to enforce the same in the event of any
subsequent breach or default.
The receipt, by the City, of any rent or any other sum of money after the termination,
in any manner, of the term therein demised, or after the giving by the City of any notice
thereunder to effect such termination, shall not reinstate, continue, or extend the
resultant term therein demised, or destroy, or in any manner impair the efficacy of any
such notice of termination as may have been given thereunder by the City to the
Lessee prior to the receipt of any such sum of money or other consideration, unless
so agreed to in writing and signed by the City.
37. ZONING LAWS: Leased tidelands and shore fishery lands shall be utilized in
accordance with the building and zoning ordinances and rules and regulations of the
City. Failure to do so shall constitute a default.
38. PERSONAL USE OF MATERIALS: All coal, oil, gas, and other minerals and all
deposits of stone or gravel valuable for extraction or utilization and all materials subject
to Title II, Division I, Chapters 4, 5, and 6 of the Alaska Administrative Code are
excepted from the operation of a surface Lease. Specifically, the Lessee of the surface
rights shall not sell or remove for the use elsewhere any timber, stone, gravel, peat
moss, topsoil, or any other material valuable for building or commercial purposes;
provided, however, that material required for the development of the leasehold may
be used if its use is first approved by the City Manager.
39. MUTUAL CANCELLATION: Leases in good standing may be cancelled in whole or in
part at any time upon mutual written agreement by Lessee and the City Council.
Page 38
SHORE LEASE FISHERY – Tide Chaser Fishery, LLC
City of Kenai Shore Fishery No. 2 LESSOR: _____
LESSEE: _____
8
40. UNLAWFUL USE PROHIBITED: Lessee shall not allow the leasehold premises to be
used for an unlawful purpose.
41. APPROVAL OF OTHER AUTHORITIES: The issuance by the City of leases does not
relieve the Lessee of responsibility of obtaining licenses or permits as may be required
by duly authorized Borough, State, or Federal agencies.
42. PREFERENCE RIGHT TO RE-LEASE: A Lessee under an existing lease shall, upon
the expiration or the termination by mutual agreement of said Lease, be allowed a
preference right to re-lease those lands previously leased by him if all other sections
of the Kenai Municipal Code are complied with. Re-leasing will not necessarily be
under the same terms and conditions as the prior lease. When the lease is offered to
the preference right holder, the preference right holder shall exercise the right within
thirty (30) calendar days after said lease is offered by the City. Failure to do so shall
result in forfeiture and cancellation of the preference right. No preference right shall
inure to a Lessee whose lease has been terminated by cause.
IN WITNESS WHEREOF the parties hereto have hereunto set their hands, the day
and year stated in the individual acknowledgements below.
LESSOR:
CITY OF KENAI
BY: __________________________________________________
Terry Eubank Date
City Manager
LESSEE:
TIDE CHASER FISHERY, LLC
BY: __________________________________________________
Ted J. Crookston Date
Manager
Page 39
Sponsored by: Administration
New Text Underlined; [DELETED TEXT BRACKETED]
CITY OF KENAI
RESOLUTION NO. 2026-23
A RESOLUTION APPROVING A LEASE FORM FOR LEASING OF TIDELANDS FOR SHORE
FISHERIES AND AUTHORIZING THE CITY MANAGER TO ENTER INTO A SHORE FISHERY LEASE
WITH BRIAN SCOW FOR THE PROPERTY DESCRIBED AS TRACT ONE (1), SHORE FISHERY PLAT
NO. 71.
WHEREAS, in 1977, the State of Alaska granted the area known as the Alaska Tideland Survey 272
containing approximately 2,752 acres to the City of Kenai pursuant to the City’s Municipal Preference
Right; and,
WHEREAS, Ordinance 3500-2026, relocating tideland leasing provisions for shore fisheries to Kenai
Municipal Code (KMC) Title 22 – City Owned Lands, was enacted on February 4, 2026 and became
effective on March 6, 2026; and,
WHEREAS, a new lease form for leasing tidelands for shore fisheries is needed to reflect the changes to
the lease form necessitated by Ordinance 3500-2026 and must be approved by Council Resolution
pursuant to KMC 22.10.040(e); and,
WHEREAS, KMC 22.10.010(c) provides that a lessee under an existing shore fishery lease will have a
preference right to re-lease the same property upon lease expiration, provided the lessee is in compliance
with all applicable provisions of the Kenai Municipal Code; and,
WHEREAS, the current lessee, Brian Scow, is in compliance with all applicable sections of Kenai
Municipal Code and is current with all invoiced lease payments; and,
WHEREAS, on March 2, 2026 the City of Kenai provided notice to all existing shore fishery lessees of
the June 30, 2026 lease expiration date; and,
WHEREAS, Brian Scow timely exercised his preference right to re-lease the property in accordance with
KMC 22.10.010(c); and,
WHEREAS, KMC 22.10.040(e) requires the use of a standard lease form adopted by resolution of the
City Council; and,
WHEREAS, the new Lease term is proposed to commence on July 1, 2026; and,
WHEREAS, approval of the Lease is consistent with the intent of Kenai Municipal Code, supports the
continued authorized use, and is in the best interest of the City.
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 lease with Brian Scow for the property
described as Tract One (1), Shore Fishery Plat No. 71, in substantially the form approved by the City
Council.
Section 2. That this Resolution takes effect immediately upon passage.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 22ND DAY OF APRIL, 2026.
Page 40
Resolution No. 2026-23
Page 2 of 2
New Text Underlined; [DELETED TEXT BRACKETED]
___________________________________
Henry H. Knackstedt, Mayor
ATTEST:
___________________________________
Michelle M. Saner, MMC, City Clerk
Page 41
MEMORANDUM
TO: Mayor Knackstedt and Council Members
THROUGH: Terry Eubank, City Manager
FROM: Kevin Buettner, Planning Director
DATE: April 14, 2026
SUBJECT: Resolution No. 2026-23 - Approving a Lease Form for Leasing of Tidelands
for Shore Fisheries and Authorizing the City Manager to Enter into a Shore
Fishery Lease with Brian Scow for the Property Described as Tract One (1),
Shore Fishery Plat No. 71.
This Resolution approves a new standard lease form for tidelands for shore fisheries that is
consistent with recent code amendments and authorizes the City Manager to execute a Shore
Fishery lease. Ordinance 3500-2026, relocating tideland leasing provisions for shore fisheries to
Kenai Municipal Code (KMC) Title 22 - City Owned Lands, was enacted on February 4, 2026 and
became effective on March 6, 2026. To ensure compliance with the new code references, a new
form was created. The draft lease form has been reviewed as to form by the City Attorney.
Pursuant to KMC 22.10.010(c), any new lease form must be approved by Resolution.
The current shore fishery leases expire on June 30, 2026. All current lessees have expressed
their intent to re-Lease their shore fishery tracts for the lease period starting July 1, 2026 and
ending June 30, 2036. Adoption of this lease form and authorizing the City Manager to enter into
the lease will allow the Administration time to fully execute the agreements prior to expiration.
This resolution is specifically regarding the shore fishery tidelands described as Tract One (1),
Shore Fishery Plat No. 71 to be leased by Brian Scow.
Thank you for your consideration.
Page 42
SHORE LEASE FISHERY – BRIAN SCOW
Tract One (1), Shore Fishery Plat No. 71 LESSOR: _____
LESSEE: _____
1
SHORE FISHERY LEASE
THIS AGREEMENT, entered into this ____ day of _____________, 2026, by and between the
CITY OF KENAI, a home-rule municipal corporation of Alaska, whose address is 210 Fidalgo
Avenue, Kenai AK 99611-7750, hereinafter called “City,” and BRIAN SCOW whose address is
6209 E Baseline Road, Mesa, AZ 85206, hereinafter called “Lessee.”
The City, in consideration of the payments of the rents and performance of all the covenants by
the Lessee herein contained, does hereby demise and lease to the Lessee the following described
property in the Kenai Recording District, Third Judicial District, State of Alaska; to wit:
Tract One (1), Shore Fishery Plat No. 71
A. PURPOSE: The purpose for which the Lease is issued is:
Shore fishery
B. TERM: The term of this Lease is for ten (10) years, commencing on July 1, 2026, and
ending on June 30, 2036.
C. RENTAL PAYMENT: Rental for the above described shore fishery tracts shall be payable
as follow:
1. The annual rental rate shall be $300.00 for each tract. However, should the State of
Alaska set an annual lease rate higher than $300.00 for similar tideland leases for
shore fisheries on land owned by the State, the City may amend the annual rental to
a rate equal to that charged by the State of Alaska.
2. Annual rent for the fiscal year beginning July 1 and ending June 30 shall be payable
in advance on or before the first day of July of each year.
3. Rental for any period which is less than one (1) year shall be prorated based on the
rate of the last full year.
D. GENERAL COVENANTS:
1. USES: Except as provided herein, any use of lands or facilities without the written
consent of the City is prohibited.
2. USES NOT CONTEMPLATED PROHIBITED: Solicitation of donations or the
promotion or operation of any part or kind of business or commercial enterprises, other
than as specifically set forth herein, upon, or in shore fishery lands, without the written
consent of the City is prohibited.
3. ASSIGNMENT OR SUBLETTING: Lessee with the City’s written consent, which will
not be unreasonably denied, may assign for other than collateral purposes, in whole
or in part, its rights as Lessee hereunder.
Page 43
SHORE LEASE FISHERY – BRIAN SCOW
Tract One (1), Shore Fishery Plat No. 71 LESSOR: _____
LESSEE: _____
2
Any assignee of part or all of the leased premises shall assume the duties and
obligations of the Lessee as to such part or all of the leased premises.
No such assignment, however, will discharge Lessee from its duties and obligations
hereunder.
4. COSTS AND EXPENSES: Costs and expenses incident to this lease, including but
not limited to, recording costs shall be paid by Lessee.
5. TREATMENT OF DEMISE: The Lessee agrees to keep the premises clean and in
good order at its own expense, suffering no strip or waste thereof, nor removing any
material therefrom, except fisheries resources, without written permission of the City.
At the expiration of the term fixed, or any sooner determination of the Lease, the
Lessee will peaceably and quietly quit and surrender the premises to the City.
6. PAYMENT OF RENT: Checks, bank drafts, or postal money orders shall be made
payable to the City of Kenai and delivered to the City Administration Building, Kenai,
Alaska.
7. HERRING SPAWN COVENANT: This Lease is issued subject to Sections 16.10.172
– 16.10.175 of the Alaska Statutes and it is agreed that the covenants, terms and
conditions herein contained shall be binding upon the successors and assigns of the
respective parties hereto.
8. DEFAULT RIGHT OF ENTRY: Should default be made in payment of any portion of
the rent or fees when due, or in any of the covenants or conditions contained in the
Lease or in any regulations now or hereinafter in force, then in such event the City
shall by written notice give Lessee thirty (30) days to cure such default or defaults,
after which if the default is not cured, the City may terminate the Lease, reenter and
take possession of the premises, and remove all persons therefrom.
9. LEASE UTILIZATION: Leased lands shall be utilized for purposes within the scope of
the terms of the Lease and the terms of the deed under which the land was granted to
the City (and any releases pertinent thereto), in conformity with the ordinances of the
City and Borough. Utilization or development for other than the allowed uses shall
constitute a violation of the Lease and subject the Lease to cancellation at any time.
10. CONDITION OF PREMISES: The premises demised herein are unimproved and are
leased on an “as is, where is” basis.
11. UNDERLYING TITLE: The interests transferred, or conveyed by this Lease are subject
to any and all of the covenants, terms, or conditions contained in the instruments
conveying title or other interests to the City.
12. RIGHT OF INSPECTION: The City shall have the right at all reasonable times to enter
the premises, or any part thereof, for the purposes of inspection.
Page 44
SHORE LEASE FISHERY – BRIAN SCOW
Tract One (1), Shore Fishery Plat No. 71 LESSOR: _____
LESSEE: _____
3
13. ASSUMPTION OF RISK AND INDEMITY, DEFEND, AND HOLD HARMLESS
AGREEMENT: Lessee assumes full control and sole responsibility as between Lessee
and the City for the activities of Lessee, its personnel, employees, and persons acting
on behalf or under the authority of the Lessee anywhere on the leased premises.
Lessee shall provide all proper safeguards and shall assume all risks incurred in its
activities on and access to the leased premises and its exercise of the privileges
granted in this Lease.
Lessee agrees to fully indemnify, defend, and hold harmless, the City, its officers,
agents, employees, and volunteers from and against all actions, damages, costs,
liability, claims, losses, including death, judgements, penalties, and expenses of every
type and description, including any fees and/or costs reasonably incurred by the City’s
staff attorneys and outside attorneys and any fees and expenses incurred in enforcing
this provision (hereafter collectively referred to as “Liabilities”), to which any or all of
them may be subjected, to the extent such Liabilities are caused by or result from any
negligent act or omission or willful misconduct of the Lessee in connection with or
arising from or out of Lessee’s activities on or use of the premises. This shall be
continuing obligations and shall remain in effect after termination of this Lease.
14. COLLECTION ON UNPAID MONIES: Any or all rents, charges, fees, or other
consideration which are due and unpaid at the expiration or voluntary or involuntary
termination or cancellation of this Lease, shall have such lien rights as are allowed by
law, and enforcement by distraint may be made by the City or its authorized agent.
15. EASEMENT GRANTS RESERVED: The City reserves the right to grant and control
easements in, or above the land leased. No such grant or easement will be made that
will unreasonably interfere with the Lessee’s use of the land, and Lessee shall have
free access and use of any and all parking and loading rights, rights of ingress and
egress now or hereafter appertaining to the leased premises.
16. SURRENDER ON TERMINATION: Lessee shall, on the last day of the term of this
Lease or upon any earlier termination of this Lease, surrender and deliver the premises
into the possession and use of the City without fraud or delay in good order, condition,
and repair, except for reasonable wear and tear since the last necessary repair,
replacement, restoration or renewal, free and clear of all lettings and occupancies
unless expressly permitted by the City in writing, and free and clear of all liens and
encumbrances other than those created by and for loans to the City. Upon the end of
the term of this Lease or any earlier termination thereof, title to any shore fishery
equipment left on the leased land for a period in excess of thirty (30) days shall
automatically vest in the City without requirement of any deed, conveyance, or bill of
sale thereon. However, if the City should require any such document in confirmation
hereof, Lessee shall execute, acknowledge, and deliver the same and shall pay any
charge, tax, and fee asserted or imposed by any and all governmental units in
connection herewith.
Page 45
SHORE LEASE FISHERY – BRIAN SCOW
Tract One (1), Shore Fishery Plat No. 71 LESSOR: _____
LESSEE: _____
4
17. RIGHT TO ENJOYMENT AND PEACEABLE POSSESSION: The City hereby agrees
and covenants that the Lessee, upon paying rent and performing other covenants,
terms, and conditions of this Lease, shall have the right to quietly and peacefully hold,
use, occupy, and enjoy the said leased premises, subject to the rights of the general
public and except that any inconvenience caused by public works projects in or about
the leasehold premises shall not be construed as a denial of the right of quiet or
peaceable possession.
18. LESSEE TO PAY TAXES: Lessee shall pay all lawful taxes and assessments which,
during the term hereof may become a lien upon or which may be levied by the State,
Borough, City, or any other tax levying body, upon any taxable possessory right which
Lessee may have in or to the property by reason of its use or occupancy or the terms
of this lease, provided however, that nothing herein contained shall prevent Lessee
from contesting any increase in such tax or assessment through procedures outlined
in State statutes.
19. SPECIAL SERVICES: Lessee agrees to pay the City a reasonable charge for any
special service or facilities required by Lessee in writing, which services or facilities
are not provided for herein.
20. NO PARTNERSHIP OR JOINT VENTURE CREATED: It is expressly understood that
the City shall not be construed or held to be a partner or joint venture of Lessee in the
conduct of business on the demised premises; and it is expressly understood and
agreed that the relationship between the parties hereto is, and shall at all times remain
landlord and tenant.
21. DEFAULT BANKRUPTCY, ETC.: If the Lessee shall make any assignment for the
benefit of creditors, or shall be adjudged bankrupt, or if a receiver is appointed for the
Lessee or Lessee’s assets, or any interest under this Lease, and if the appointment of
the receiver is not vacated within thirty (30) days, or if a voluntary petition is filed under
Section 18(a) of the Bankruptcy Act by the Lessee, then and in any event, the City
may, upon giving the Lessee thirty (30) days’ notice, terminate this lease.
22. NONDISCRIMINATION: The Lessee, Lessee’s personal representatives, successors
in interest, and assigns, as a part of the consideration hereof, does hereby covenant
and agree as a covenant running with the land that:
(a) No person on the grounds of race, color, or national origin shall be excluded
from participation in, denied the benefits of, or be otherwise subjected to
discrimination in the use of said shore fishery:
23. PARTIAL INVALIDITY: If any term, provision, condition, or part of this Lease is
declared by a court of competent jurisdiction to be invalid or unconstitutional, the
remaining terms, provisions, conditions, or parts shall continue in full force and effect
as though such declaration was not made.
Page 46
SHORE LEASE FISHERY – BRIAN SCOW
Tract One (1), Shore Fishery Plat No. 71 LESSOR: _____
LESSEE: _____
5
24. MODIFICATION: No lease may be modified orally or in any manner other than by an
agreement in writing, signed by all parties in interest or their successors in interest.
Any such modification shall require Council approval.
25. WARRANTY: The City does not warrant that the property which is the subject of this
Lease is suited for the use authorize herein, and no guarantee is given or implied that
it shall be profitable or suitable to employ he property to such use.
26. RIGHT TO ADOPT RULES: The City reserves the right to adopt, amend, and enforce
reasonable rules and regulations governing the demised premises and the public
areas and facilities used in connection therewith. Except in cases of emergency, no
rule or regulation hereafter adopted or amended by the City shall become applicable
unless Lessee has been given thirty (30) days’ notice of adoption or amendment
thereof.
27. NON-LIABILITY: The City shall not be liable to Lessee for any diminution or deprivation
of possession, or of Lessee’s right hereunder, on account of the exercise of any such
right or authority as provided in this or the preceding section, nor shall Lessee be
entitled to terminate the whole or any portion of the leasehold estate herein created,
by reason of the exercise of such rights or authority, unless the exercise thereof shall
so interfere with Lessee’s use and occupancy of the leasehold estate as to constitute
a termination in whole or in part of this lease by operation of law in accordance with
the laws of the State of Alaska and of the United States made applicable to the states.
28. COMPLIANCE WITH LAWS:
(a) Lessee shall observe, obey, and comply with all applicable laws, ordinances, rules,
and regulations of the Federal, State, Borough, or City governments or of any other
public authorities now or hereafter in any manner affecting the leased premises.
(b) Lessee agrees to hold the City financially harmless:
(1) From the consequences of any violation of such laws, ordinances, and/or
regulations; and
(2) From all claims for damages on account of injuries, death, or property damage
resulting from such violation.
(c) Lessee further agrees it will not permit any unlawful occupation, business, or trade
to be conducted on said premises or any use to be made thereof contrary to any
law, ordinance, or regulation as aforesaid with respect thereto, including zoning
ordinances, rules, and regulations.
29. CONDEMNATION: In the event the leased premises or any part thereof shall be
condemned and taken for a public or a quasi-public use, then upon payment of any
award or compensation arising from such condemnation, there shall be such division
of the proceeds, such abatement in rent payable during the term or any extension of
the term hereof, and such other adjustments as the parties may agree upon as being
just and equitable under all the circumstances.
Page 47
SHORE LEASE FISHERY – BRIAN SCOW
Tract One (1), Shore Fishery Plat No. 71 LESSOR: _____
LESSEE: _____
6
If the City and lessee are unable to agree within thirty (30) days after such an award
has been paid into Court, upon what division, annual abatement in rent, and other
adjustments are just and equitable, the disputes shall be determined by arbitration.
30. PROTECTION OF SUBLESSEES: To protect the position of any sublessee(s)
hereafter obtaining any property interests in the leasehold estate granted by the
Lessee hereunder, the City agrees that in the event of the cancellation, termination,
expiration, or surrender of this Lease (the ground lease), the City will accept the
sublessee, its successors and assigns, as its Lessee for a period equal to the full
unelapsed portion of the term of the sublease, including any extensions or renewals
thereof, not exceeding the term of this Lease, upon the same covenants and conditions
therein contained, to the extent that said covenants and conditions are not inconsistent
with any of the terms and conditions of this Lease, provided such Sublessee shall
make full and complete attornment to the City for the balance of the term of such
sublease so as to establish direct privity of estate and contract between the City and
the Sublessee with the same force and effect as though such sublease was originally
made directly between the City and such Sublessee; and further provided such
Sublessee agrees to comply with all the provisions of the ground lease.
31. SUCCESSORS IN INTEREST: This Lease shall be binding upon and shall inure to
the benefit of the respective successors and assigns of the parties hereto, subject to
such specific limitations on assignments as are provided for herein.
32. GOVERNING LAW: This indenture of Lease shall be governed in all respects by the
laws of the State of Alaska.
33. NOTICES:
(a) Any notices required by this Lease shall be in writing and shall be deemed to be
duly given only if delivered personally or mailed by certified or registered mail in a
prepaid envelope addressed to the parties of the address set forth in the opening
paragraph of this lease unless such address has been changed pursuant to sub-
paragraph (b) hereafter, and in that case shall to the most recent address so
changed. Any notice so mailed shall be deemed delivered on the date it is
deposited in a U.S. general or branch post office.
The City shall also mail a copy of any notice given to the Lessee, by registered or
certified mail, to any leasehold lender (mortgage, beneficiary of a deed of trust,
security assignee) who shall have given the City notice of such mortgage, deed of
trust, or security assignment.
(b) Any such addresses may be changed by an appropriate notice in writing to all other
parties affected provided such change of address is given to the other parties by
the means outlined in paragraph (a) above at least fifteen (15) days prior to the
giving of the particular notice in issue.
Page 48
SHORE LEASE FISHERY – BRIAN SCOW
Tract One (1), Shore Fishery Plat No. 71 LESSOR: _____
LESSEE: _____
7
34. ENTRY AND RE-ENTRY: In the event that the Lease should be terminated as
hereinbefore provided, or by summary proceedings or otherwise, or in the event that
the demised lands or any part thereof should be abandoned by the Lessee during said
term, the City or its agents, servants, or representatives may, immediately or any time
thereafter, re-enter, and resume possession of said lands or such part thereof and
remove all persona and property therefrom, either by summary proceedings or by a
suitable action or proceeding at law without being liable for any damages therefor. No
re-entry by the City shall be deemed an acceptance of a surrender of the lease.
35. RETENTION OF RENTAL: In the event that the Lease should be terminated because
of any breach by the Lessee as herein provided, the rental payment last made by the
Lessee shall be retained by the City as partial or total liquidated damages for said
breach.
36. WRITTEN WAIVER: The receipt of rent by the City with knowledge of any breach of
the Lease by the Lessee, or any default on the part of the Lessee in observance or
performance of any of the conditions or covenants of the Lease, shall not be deemed
to be a waiver of any provisions of the Lease. No failure on the part of the City to
enforce any covenant or provision therein contained, nor any waiver of any right
thereunder by the City, unless in writing, shall discharge or invalidate such covenants
or provisions, or affect the right of the City to enforce the same in the event of any
subsequent breach or default.
The receipt, by the City, of any rent or any other sum of money after the termination,
in any manner, of the term therein demised, or after the giving by the City of any notice
thereunder to effect such termination, shall not reinstate, continue, or extend the
resultant term therein demised, or destroy, or in any manner impair the efficacy of any
such notice of termination as may have been given thereunder by the City to the
Lessee prior to the receipt of any such sum of money or other consideration, unless
so agreed to in writing and signed by the City.
37. ZONING LAWS: Leased tidelands and shore fishery lands shall be utilized in
accordance with the building and zoning ordinances and rules and regulations of the
City. Failure to do so shall constitute a default.
38. PERSONAL USE OF MATERIALS: All coal, oil, gas, and other minerals and all
deposits of stone or gravel valuable for extraction or utilization and all materials subject
to Title II, Division I, Chapters 4, 5, and 6 of the Alaska Administrative Code are
excepted from the operation of a surface Lease. Specifically, the Lessee of the surface
rights shall not sell or remove for the use elsewhere any timber, stone, gravel, peat
moss, topsoil, or any other material valuable for building or commercial purposes;
provided, however, that material required for the development of the leasehold may
be used if its use is first approved by the City Manager.
39. MUTUAL CANCELLATION: Leases in good standing may be cancelled in whole or in
part at any time upon mutual written agreement by Lessee and the City Council.
Page 49
SHORE LEASE FISHERY – BRIAN SCOW
Tract One (1), Shore Fishery Plat No. 71 LESSOR: _____
LESSEE: _____
8
40. UNLAWFUL USE PROHIBITED: Lessee shall not allow the leasehold premises to be
used for an unlawful purpose.
41. APPROVAL OF OTHER AUTHORITIES: The issuance by the City of leases does not
relieve the Lessee of responsibility of obtaining licenses or permits as may be required
by duly authorized Borough, State, or Federal agencies.
42. PREFERENCE RIGHT TO RE-LEASE: A Lessee under an existing lease shall, upon
the expiration or the termination by mutual agreement of said Lease, be allowed a
preference right to re-lease those lands previously leased by him if all other sections
of the Kenai Municipal Code are complied with. Re-leasing will not necessarily be
under the same terms and conditions as the prior lease. When the lease is offered to
the preference right holder, the preference right holder shall exercise the right within
thirty (30) calendar days after said lease is offered by the City. Failure to do so shall
result in forfeiture and cancellation of the preference right. No preference right shall
inure to a Lessee whose lease has been terminated by cause.
IN WITNESS WHEREOF the parties hereto have hereunto set their hands, the day
and year stated in the individual acknowledgements below.
LESSOR:
CITY OF KENAI
BY: __________________________________________________
Terry Eubank Date
City Manager
LESSEE:
BRIAN SCOW
BY: __________________________________________________
Brian Scow Date
Page 50
Sponsored by: Administration
New Text Underlined; [DELETED TEXT BRACKETED]
CITY OF KENAI
RESOLUTION NO. 2026-24
A RESOLUTION APPROVING A LEASE FORM FOR LEASING OF TIDELANDS FOR SHORE
FISHERIES AND AUTHORIZING THE CITY MANAGER TO ENTER INTO A SHORE FISHERY LEASE
WITH NANCY HILLMAN-SCOW FOR THE PROPERTY DESCRIBED AS TRACT TWO (2), SHORE
FISHERY PLAT NO. 71.
WHEREAS, in 1977, the State of Alaska granted the area known as the Alaska Tideland Survey 272
containing approximately 2,752 acres to the City of Kenai pursuant to the City’s Municipal Preference
Right; and,
WHEREAS, Ordinance 3500-2026, relocating tideland leasing provisions for shore fisheries to Kenai
Municipal Code (KMC) Title 22 – City Owned Lands, was enacted on February 4, 2026 and became
effective on March 6, 2026; and,
WHEREAS, a new lease form for leasing tidelands for shore fisheries is needed to reflect the changes to
the lease form necessitated by Ordinance 3500-2026 and must be approved by Council Resolution
pursuant to KMC 22.10.040(e); and,
WHEREAS, KMC 22.10.010(c) provides that a lessee under an existing shore fishery lease will have a
preference right to re-lease the same property upon lease expiration, provided the lessee is in compliance
with all applicable provisions of the Kenai Municipal Code; and,
WHEREAS, the current lessee, Nancy Hillman-Scow, is in compliance with all applicable sections of
Kenai Municipal Code and is current with all invoiced lease payments; and,
WHEREAS, on March 2, 2026 the City of Kenai provided notice to all existing shore fishery lessees of
the June 30, 2026 lease expiration date; and,
WHEREAS, Nancy Hillman-Scow timely exercised her preference right to re-lease the property in
accordance with KMC 22.10.010(c); and,
WHEREAS, KMC 22.10.040(e) requires the use of a standard lease form adopted by resolution of the
City Council; and,
WHEREAS, the new Lease term is proposed to commence on July 1, 2026; and,
WHEREAS, approval of the Lease is consistent with the intent of Kenai Municipal Code, supports the
continued authorized use, and is in the best interest of the City.
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 lease with Nancy Hillman-Scow for the
property described as Tract Two (2), Shore Fishery Plat No. 71, in substantially the form approved by the
City Council.
Section 2. That this Resolution takes effect immediately upon passage.
Page 51
Resolution No. 2026-24
Page 2 of 2
New Text Underlined; [DELETED TEXT BRACKETED]
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 22ND DAY OF APRIL, 2026.
___________________________________
Henry H. Knackstedt, Mayor
ATTEST:
___________________________________
Michelle M. Saner, MMC, City Clerk
Page 52
MEMORANDUM
TO: Mayor Knackstedt and Council Members
THROUGH: Terry Eubank, City Manager
FROM: Kevin Buettner, Planning Director
DATE: April 14, 2026
SUBJECT: Resolution No. 2026-24 - Approving a Lease Form for Leasing of Tidelands
for Shore Fisheries and Authorizing the City Manager to Enter into a Shore
Fishery Lease with Nancy Hillman-Scow for the Property Described as Tract
Two (2), Shore Fishery Plat No. 71
This Resolution approves a new standard lease form for tidelands for shore fisheries that is
consistent with recent code amendments and authorizes the City Manager to execute a Shore
Fishery lease. Ordinance 3500-2026, relocating tideland leasing provisions for shore fisheries to
Kenai Municipal Code (KMC) Title 22 - City Owned Lands, was enacted on February 4, 2026 and
became effective on March 6, 2026. To ensure compliance with the new code references, a new
form was created. The draft lease form has been reviewed as to form by the City Attorney.
Pursuant to KMC 22.10.010(c), any new lease form must be approved by Resolution.
The current shore fishery leases expire on June 30, 2026. All current lessees have expressed
their intent to re-Lease their shore fishery tracts for the lease period starting July 1, 2026 and
ending June 30, 2036. Adoption of this lease form and authorizing the City Manager to enter into
the lease will allow the Administration time to fully execute the agreements prior to expiration.
This resolution is specifically regarding the shore fishery tidelands described as Tract Two (2),
Shore Fishery Plat No. 71 to be leased by Nancy Hillman-Scow.
Thank you for your consideration.
Page 53
SHORE LEASE FISHERY – Nancy A. Hilman-Scow
Tract Two (2), Shore Fishery Plat No. 71 LESSOR: _____
LESSEE: _____
1
SHORE FISHERY LEASE
THIS AGREEMENT, entered into this ____ day of _____________, 2026, by and between the
CITY OF KENAI, a home-rule municipal corporation of Alaska, whose address is 210 Fidalgo
Avenue, Kenai AK 99611-7750, hereinafter called “City,” and NANCY A. HILMAN-SCOW whose
address is PO Box 2199, Kenai, AK 99611, hereinafter called “Lessee.”
The City, in consideration of the payments of the rents and performance of all the covenants by
the Lessee herein contained, does hereby demise and lease to the Lessee the following described
property in the Kenai Recording District, Third Judicial District, State of Alaska; to wit:
Tract Two (2), Shore Fishery Plat No. 71
A. PURPOSE: The purpose for which the Lease is issued is:
Shore fishery
B. TERM: The term of this Lease is for ten (10) years, commencing on July 1, 2026, and
ending on June 30, 2036.
C. RENTAL PAYMENT: Rental for the above described shore fishery tracts shall be payable
as follow:
1. The annual rental rate shall be $300.00 for each tract. However, should the State of
Alaska set an annual lease rate higher than $300.00 for similar tideland leases for
shore fisheries on land owned by the State, the City may amend the annual rental to
a rate equal to that charged by the State of Alaska.
2. Annual rent for the fiscal year beginning July 1 and ending June 30 shall be payable
in advance on or before the first day of July of each year.
3. Rental for any period which is less than one (1) year shall be prorated based on the
rate of the last full year.
D. GENERAL COVENANTS:
1. USES: Except as provided herein, any use of lands or facilities without the written
consent of the City is prohibited.
2. USES NOT CONTEMPLATED PROHIBITED: Solicitation of donations or the
promotion or operation of any part or kind of business or commercial enterprises, other
than as specifically set forth herein, upon, or in shore fishery lands, without the written
consent of the City is prohibited.
3. ASSIGNMENT OR SUBLETTING: Lessee with the City’s written consent, which will
not be unreasonably denied, may assign for other than collateral purposes, in whole
or in part, its rights as Lessee hereunder.
Page 54
SHORE LEASE FISHERY – Nancy A. Hilman-Scow
Tract Two (2), Shore Fishery Plat No. 71 LESSOR: _____
LESSEE: _____
2
Any assignee of part or all of the leased premises shall assume the duties and
obligations of the Lessee as to such part or all of the leased premises.
No such assignment, however, will discharge Lessee from its duties and obligations
hereunder.
4. COSTS AND EXPENSES: Costs and expenses incident to this lease, including but
not limited to, recording costs shall be paid by Lessee.
5. TREATMENT OF DEMISE: The Lessee agrees to keep the premises clean and in
good order at its own expense, suffering no strip or waste thereof, nor removing any
material therefrom, except fisheries resources, without written permission of the City.
At the expiration of the term fixed, or any sooner determination of the Lease, the
Lessee will peaceably and quietly quit and surrender the premises to the City.
6. PAYMENT OF RENT: Checks, bank drafts, or postal money orders shall be made
payable to the City of Kenai and delivered to the City Administration Building, Kenai,
Alaska.
7. HERRING SPAWN COVENANT: This Lease is issued subject to Sections 16.10.172
– 16.10.175 of the Alaska Statutes and it is agreed that the covenants, terms and
conditions herein contained shall be binding upon the successors and assigns of the
respective parties hereto.
8. DEFAULT RIGHT OF ENTRY: Should default be made in payment of any portion of
the rent or fees when due, or in any of the covenants or conditions contained in the
Lease or in any regulations now or hereinafter in force, then in such event the City
shall by written notice give Lessee thirty (30) days to cure such default or defaults,
after which if the default is not cured, the City may terminate the Lease, reenter and
take possession of the premises, and remove all persons therefrom.
9. LEASE UTILIZATION: Leased lands shall be utilized for purposes within the scope of
the terms of the Lease and the terms of the deed under which the land was granted to
the City (and any releases pertinent thereto), in conformity with the ordinances of the
City and Borough. Utilization or development for other than the allowed uses shall
constitute a violation of the Lease and subject the Lease to cancellation at any time.
10. CONDITION OF PREMISES: The premises demised herein are unimproved and are
leased on an “as is, where is” basis.
11. UNDERLYING TITLE: The interests transferred, or conveyed by this Lease are subject
to any and all of the covenants, terms, or conditions contained in the instruments
conveying title or other interests to the City.
12. RIGHT OF INSPECTION: The City shall have the right at all reasonable times to enter
the premises, or any part thereof, for the purposes of inspection.
Page 55
SHORE LEASE FISHERY – Nancy A. Hilman-Scow
Tract Two (2), Shore Fishery Plat No. 71 LESSOR: _____
LESSEE: _____
3
13. ASSUMPTION OF RISK AND INDEMITY, DEFEND, AND HOLD HARMLESS
AGREEMENT: Lessee assumes full control and sole responsibility as between Lessee
and the City for the activities of Lessee, its personnel, employees, and persons acting
on behalf or under the authority of the Lessee anywhere on the leased premises.
Lessee shall provide all proper safeguards and shall assume all risks incurred in its
activities on and access to the leased premises and its exercise of the privileges
granted in this Lease.
Lessee agrees to fully indemnify, defend, and hold harmless, the City, its officers,
agents, employees, and volunteers from and against all actions, damages, costs,
liability, claims, losses, including death, judgements, penalties, and expenses of every
type and description, including any fees and/or costs reasonably incurred by the City’s
staff attorneys and outside attorneys and any fees and expenses incurred in enforcing
this provision (hereafter collectively referred to as “Liabilities”), to which any or all of
them may be subjected, to the extent such Liabilities are caused by or result from any
negligent act or omission or willful misconduct of the Lessee in connection with or
arising from or out of Lessee’s activities on or use of the premises. This shall be
continuing obligations and shall remain in effect after termination of this Lease.
14. COLLECTION ON UNPAID MONIES: Any or all rents, charges, fees, or other
consideration which are due and unpaid at the expiration or voluntary or involuntary
termination or cancellation of this Lease, shall have such lien rights as are allowed by
law, and enforcement by distraint may be made by the City or its authorized agent.
15. EASEMENT GRANTS RESERVED: The City reserves the right to grant and control
easements in, or above the land leased. No such grant or easement will be made that
will unreasonably interfere with the Lessee’s use of the land, and Lessee shall have
free access and use of any and all parking and loading rights, rights of ingress and
egress now or hereafter appertaining to the leased premises.
16. SURRENDER ON TERMINATION: Lessee shall, on the last day of the term of this
Lease or upon any earlier termination of this Lease, surrender and deliver the premises
into the possession and use of the City without fraud or delay in good order, condition,
and repair, except for reasonable wear and tear since the last necessary repair,
replacement, restoration or renewal, free and clear of all lettings and occupancies
unless expressly permitted by the City in writing, and free and clear of all liens and
encumbrances other than those created by and for loans to the City. Upon the end of
the term of this Lease or any earlier termination thereof, title to any shore fishery
equipment left on the leased land for a period in excess of thirty (30) days shall
automatically vest in the City without requirement of any deed, conveyance, or bill of
sale thereon. However, if the City should require any such document in confirmation
hereof, Lessee shall execute, acknowledge, and deliver the same and shall pay any
charge, tax, and fee asserted or imposed by any and all governmental units in
connection herewith.
Page 56
SHORE LEASE FISHERY – Nancy A. Hilman-Scow
Tract Two (2), Shore Fishery Plat No. 71 LESSOR: _____
LESSEE: _____
4
17. RIGHT TO ENJOYMENT AND PEACEABLE POSSESSION: The City hereby agrees
and covenants that the Lessee, upon paying rent and performing other covenants,
terms, and conditions of this Lease, shall have the right to quietly and peacefully hold,
use, occupy, and enjoy the said leased premises, subject to the rights of the general
public and except that any inconvenience caused by public works projects in or about
the leasehold premises shall not be construed as a denial of the right of quiet or
peaceable possession.
18. LESSEE TO PAY TAXES: Lessee shall pay all lawful taxes and assessments which,
during the term hereof may become a lien upon or which may be levied by the State,
Borough, City, or any other tax levying body, upon any taxable possessory right which
Lessee may have in or to the property by reason of its use or occupancy or the terms
of this lease, provided however, that nothing herein contained shall prevent Lessee
from contesting any increase in such tax or assessment through procedures outlined
in State statutes.
19. SPECIAL SERVICES: Lessee agrees to pay the City a reasonable charge for any
special service or facilities required by Lessee in writing, which services or facilities
are not provided for herein.
20. NO PARTNERSHIP OR JOINT VENTURE CREATED: It is expressly understood that
the City shall not be construed or held to be a partner or joint venture of Lessee in the
conduct of business on the demised premises; and it is expressly understood and
agreed that the relationship between the parties hereto is, and shall at all times remain
landlord and tenant.
21. DEFAULT BANKRUPTCY, ETC.: If the Lessee shall make any assignment for the
benefit of creditors, or shall be adjudged bankrupt, or if a receiver is appointed for the
Lessee or Lessee’s assets, or any interest under this Lease, and if the appointment of
the receiver is not vacated within thirty (30) days, or if a voluntary petition is filed under
Section 18(a) of the Bankruptcy Act by the Lessee, then and in any event, the City
may, upon giving the Lessee thirty (30) days’ notice, terminate this lease.
22. NONDISCRIMINATION: The Lessee, Lessee’s personal representatives, successors
in interest, and assigns, as a part of the consideration hereof, does hereby covenant
and agree as a covenant running with the land that:
(a) No person on the grounds of race, color, or national origin shall be excluded
from participation in, denied the benefits of, or be otherwise subjected to
discrimination in the use of said shore fishery:
23. PARTIAL INVALIDITY: If any term, provision, condition, or part of this Lease is
declared by a court of competent jurisdiction to be invalid or unconstitutional, the
remaining terms, provisions, conditions, or parts shall continue in full force and effect
as though such declaration was not made.
Page 57
SHORE LEASE FISHERY – Nancy A. Hilman-Scow
Tract Two (2), Shore Fishery Plat No. 71 LESSOR: _____
LESSEE: _____
5
24. MODIFICATION: No lease may be modified orally or in any manner other than by an
agreement in writing, signed by all parties in interest or their successors in interest.
Any such modification shall require Council approval.
25. WARRANTY: The City does not warrant that the property which is the subject of this
Lease is suited for the use authorize herein, and no guarantee is given or implied that
it shall be profitable or suitable to employ he property to such use.
26. RIGHT TO ADOPT RULES: The City reserves the right to adopt, amend, and enforce
reasonable rules and regulations governing the demised premises and the public
areas and facilities used in connection therewith. Except in cases of emergency, no
rule or regulation hereafter adopted or amended by the City shall become applicable
unless Lessee has been given thirty (30) days’ notice of adoption or amendment
thereof.
27. NON-LIABILITY: The City shall not be liable to Lessee for any diminution or deprivation
of possession, or of Lessee’s right hereunder, on account of the exercise of any such
right or authority as provided in this or the preceding section, nor shall Lessee be
entitled to terminate the whole or any portion of the leasehold estate herein created,
by reason of the exercise of such rights or authority, unless the exercise thereof shall
so interfere with Lessee’s use and occupancy of the leasehold estate as to constitute
a termination in whole or in part of this lease by operation of law in accordance with
the laws of the State of Alaska and of the United States made applicable to the states.
28. COMPLIANCE WITH LAWS:
(a) Lessee shall observe, obey, and comply with all applicable laws, ordinances, rules,
and regulations of the Federal, State, Borough, or City governments or of any other
public authorities now or hereafter in any manner affecting the leased premises.
(b) Lessee agrees to hold the City financially harmless:
(1) From the consequences of any violation of such laws, ordinances, and/or
regulations; and
(2) From all claims for damages on account of injuries, death, or property damage
resulting from such violation.
(c) Lessee further agrees it will not permit any unlawful occupation, business, or trade
to be conducted on said premises or any use to be made thereof contrary to any
law, ordinance, or regulation as aforesaid with respect thereto, including zoning
ordinances, rules, and regulations.
29. CONDEMNATION: In the event the leased premises or any part thereof shall be
condemned and taken for a public or a quasi-public use, then upon payment of any
award or compensation arising from such condemnation, there shall be such division
of the proceeds, such abatement in rent payable during the term or any extension of
the term hereof, and such other adjustments as the parties may agree upon as being
just and equitable under all the circumstances.
Page 58
SHORE LEASE FISHERY – Nancy A. Hilman-Scow
Tract Two (2), Shore Fishery Plat No. 71 LESSOR: _____
LESSEE: _____
6
If the City and lessee are unable to agree within thirty (30) days after such an award
has been paid into Court, upon what division, annual abatement in rent, and other
adjustments are just and equitable, the disputes shall be determined by arbitration.
30. PROTECTION OF SUBLESSEES: To protect the position of any sublessee(s)
hereafter obtaining any property interests in the leasehold estate granted by the
Lessee hereunder, the City agrees that in the event of the cancellation, termination,
expiration, or surrender of this Lease (the ground lease), the City will accept the
sublessee, its successors and assigns, as its Lessee for a period equal to the full
unelapsed portion of the term of the sublease, including any extensions or renewals
thereof, not exceeding the term of this Lease, upon the same covenants and conditions
therein contained, to the extent that said covenants and conditions are not inconsistent
with any of the terms and conditions of this Lease, provided such Sublessee shall
make full and complete attornment to the City for the balance of the term of such
sublease so as to establish direct privity of estate and contract between the City and
the Sublessee with the same force and effect as though such sublease was originally
made directly between the City and such Sublessee; and further provided such
Sublessee agrees to comply with all the provisions of the ground lease.
31. SUCCESSORS IN INTEREST: This Lease shall be binding upon and shall inure to
the benefit of the respective successors and assigns of the parties hereto, subject to
such specific limitations on assignments as are provided for herein.
32. GOVERNING LAW: This indenture of Lease shall be governed in all respects by the
laws of the State of Alaska.
33. NOTICES:
(a) Any notices required by this Lease shall be in writing and shall be deemed to be
duly given only if delivered personally or mailed by certified or registered mail in a
prepaid envelope addressed to the parties of the address set forth in the opening
paragraph of this lease unless such address has been changed pursuant to sub-
paragraph (b) hereafter, and in that case shall to the most recent address so
changed. Any notice so mailed shall be deemed delivered on the date it is
deposited in a U.S. general or branch post office.
The City shall also mail a copy of any notice given to the Lessee, by registered or
certified mail, to any leasehold lender (mortgage, beneficiary of a deed of trust,
security assignee) who shall have given the City notice of such mortgage, deed of
trust, or security assignment.
(b) Any such addresses may be changed by an appropriate notice in writing to all other
parties affected provided such change of address is given to the other parties by
the means outlined in paragraph (a) above at least fifteen (15) days prior to the
giving of the particular notice in issue.
Page 59
SHORE LEASE FISHERY – Nancy A. Hilman-Scow
Tract Two (2), Shore Fishery Plat No. 71 LESSOR: _____
LESSEE: _____
7
34. ENTRY AND RE-ENTRY: In the event that the Lease should be terminated as
hereinbefore provided, or by summary proceedings or otherwise, or in the event that
the demised lands or any part thereof should be abandoned by the Lessee during said
term, the City or its agents, servants, or representatives may, immediately or any time
thereafter, re-enter, and resume possession of said lands or such part thereof and
remove all persona and property therefrom, either by summary proceedings or by a
suitable action or proceeding at law without being liable for any damages therefor. No
re-entry by the City shall be deemed an acceptance of a surrender of the lease.
35. RETENTION OF RENTAL: In the event that the Lease should be terminated because
of any breach by the Lessee as herein provided, the rental payment last made by the
Lessee shall be retained by the City as partial or total liquidated damages for said
breach.
36. WRITTEN WAIVER: The receipt of rent by the City with knowledge of any breach of
the Lease by the Lessee, or any default on the part of the Lessee in observance or
performance of any of the conditions or covenants of the Lease, shall not be deemed
to be a waiver of any provisions of the Lease. No failure on the part of the City to
enforce any covenant or provision therein contained, nor any waiver of any right
thereunder by the City, unless in writing, shall discharge or invalidate such covenants
or provisions, or affect the right of the City to enforce the same in the event of any
subsequent breach or default.
The receipt, by the City, of any rent or any other sum of money after the termination,
in any manner, of the term therein demised, or after the giving by the City of any notice
thereunder to effect such termination, shall not reinstate, continue, or extend the
resultant term therein demised, or destroy, or in any manner impair the efficacy of any
such notice of termination as may have been given thereunder by the City to the
Lessee prior to the receipt of any such sum of money or other consideration, unless
so agreed to in writing and signed by the City.
37. ZONING LAWS: Leased tidelands and shore fishery lands shall be utilized in
accordance with the building and zoning ordinances and rules and regulations of the
City. Failure to do so shall constitute a default.
38. PERSONAL USE OF MATERIALS: All coal, oil, gas, and other minerals and all
deposits of stone or gravel valuable for extraction or utilization and all materials subject
to Title II, Division I, Chapters 4, 5, and 6 of the Alaska Administrative Code are
excepted from the operation of a surface Lease. Specifically, the Lessee of the surface
rights shall not sell or remove for the use elsewhere any timber, stone, gravel, peat
moss, topsoil, or any other material valuable for building or commercial purposes;
provided, however, that material required for the development of the leasehold may
be used if its use is first approved by the City Manager.
39. MUTUAL CANCELLATION: Leases in good standing may be cancelled in whole or in
part at any time upon mutual written agreement by Lessee and the City Council.
Page 60
SHORE LEASE FISHERY – Nancy A. Hilman-Scow
Tract Two (2), Shore Fishery Plat No. 71 LESSOR: _____
LESSEE: _____
8
40. UNLAWFUL USE PROHIBITED: Lessee shall not allow the leasehold premises to be
used for an unlawful purpose.
41. APPROVAL OF OTHER AUTHORITIES: The issuance by the City of leases does not
relieve the Lessee of responsibility of obtaining licenses or permits as may be required
by duly authorized Borough, State, or Federal agencies.
42. PREFERENCE RIGHT TO RE-LEASE: A Lessee under an existing lease shall, upon
the expiration or the termination by mutual agreement of said Lease, be allowed a
preference right to re-lease those lands previously leased by him if all other sections
of the Kenai Municipal Code are complied with. Re-leasing will not necessarily be
under the same terms and conditions as the prior lease. When the lease is offered to
the preference right holder, the preference right holder shall exercise the right within
thirty (30) calendar days after said lease is offered by the City. Failure to do so shall
result in forfeiture and cancellation of the preference right. No preference right shall
inure to a Lessee whose lease has been terminated by cause.
IN WITNESS WHEREOF the parties hereto have hereunto set their hands, the day
and year stated in the individual acknowledgements below.
LESSOR:
CITY OF KENAI
BY: __________________________________________________
Terry Eubank Date
City Manager
LESSEE:
NANCY A. HILMAN-SCOW
BY: __________________________________________________
Nancy A. Hilman-Scow Date
Page 61
Sponsored by: Administration
New Text Underlined; [DELETED TEXT BRACKETED]
CITY OF KENAI
RESOLUTION NO. 2026-25
A RESOLUTION APPROVING A LEASE FORM FOR LEASING OF TIDELANDS FOR SHORE
FISHERIES AND AUTHORIZING THE CITY MANAGER TO ENTER INTO A SHORE FISHERY LEASE
WITH KENAI SALMON COMPANY, INC FOR THE PROPERTY DESCRIBED AS TRACTS THREE (3),
FOUR (4), FIVE (5) AND SIX (6), SHORE FISHERY PLAT NO. 71.
WHEREAS, in 1977, the State of Alaska granted the area known as the Alaska Tideland Survey 272
containing approximately 2,752 acres to the City of Kenai pursuant to the City’s Municipal Preference
Right; and,
WHEREAS, Ordinance 3500-2026, relocating tideland leasing provisions for shore fisheries to Kenai
Municipal Code (KMC) Title 22 – City Owned Lands, was enacted on February 4, 2026 and became
effective on March 6, 2026; and,
WHEREAS, a new lease form for leasing tidelands for shore fisheries is needed to reflect the changes to
the lease form necessitated by Ordinance 3500-2026 and must be approved by Council Resolution
pursuant to KMC 22.10.040(e); and,
WHEREAS, KMC 22.10.010(c) provides that a lessee under an existing shore fishery lease will have a
preference right to re-lease the same property upon lease expiration, provided the lessee is in compliance
with all applicable provisions of the Kenai Municipal Code; and,
WHEREAS, the current lessee, Kenai Salmon Company, is in compliance with all applicable sections of
Kenai Municipal Code and is current with all invoiced lease payments; and,
WHEREAS, on March 2, 2026 the City of Kenai provided notice to all existing shore fishery lessees of
the June 30, 2026 lease expiration date; and,
WHEREAS, Kenai Salmon Company timely exercised their preference right to re-lease the property in
accordance with KMC 22.10.010(c); and,
WHEREAS, KMC 22.10.040(e) requires the use of a standard lease form adopted by resolution of the
City Council; and,
WHEREAS, the new Lease term is proposed to commence on July 1, 2026; and,
WHEREAS, approval of the lease is consistent with the intent of Kenai Municipal Code, supports the
continued authorized use, and is in the best interest of the City.
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 lease with Kenai Salmon Company for
the property described as Tracts Three (3), Four (4), Five (5), and Six (6), Shore Fishery Plat No. 71, in
substantially the form approved by the City Council.
Section 2. That this Resolution takes effect immediately upon passage.
Page 62
Resolution No. 2026-25
Page 2 of 2
New Text Underlined; [DELETED TEXT BRACKETED]
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 22ND DAY OF APRIL, 2026.
___________________________________
Henry H. Knackstedt, Mayor
ATTEST:
___________________________________
Michelle M. Saner, MMC, City Clerk
Page 63
MEMORANDUM
TO: Mayor Knackstedt and Council Members
THROUGH: Terry Eubank, City Manager
FROM: Kevin Buettner, Planning Director
DATE: April 14, 2026
SUBJECT: Resolution No. 2026-25 - Approving a Lease Form for Leasing of Tidelands
for Shore Fisheries and Authorizing the City Manager to Enter into a Shore
Fishery Lease with Kenai Salmon Company, Inc for the Property Described
as Tracts Three (3), Four (4), Five (5), and Six (6), Shore Fishery Plat No. 71
This Resolution approves a new standard lease form for tidelands for shore fisheries that is
consistent with recent code amendments and authorizes the City Manager to execute a Shore
Fishery lease. Ordinance 3500-2026, relocating tideland leasing provisions for shore fisheries to
Kenai Municipal Code (KMC) Title 22 - City Owned Lands, was enacted on February 4, 2026 and
became effective on March 6, 2026. To ensure compliance with the new code references, a new
form was created. The draft lease form has been reviewed as to form by the City Attorney.
Pursuant to KMC 22.10.010(c), any new lease form must be approved by Resolution.
The current shore fishery leases expire on June 30, 2026. All current lessees have expressed
their intent to re-Lease their shore fishery tracts for the lease period starting July 1, 2026 and
ending June 30, 2036. Adoption of this lease form and authorizing the City Manager to enter into
the lease will allow the Administration time to fully execute the agreements prior to expiration.
This resolution is specifically regarding the shore fishery tidelands described as Tracts Three (3),
Four (4), Five (5), and Six (6), Shore Fishery Plat No. 71 to be leased by Kenai Salmon Company.
Thank you for your consideration.
Page 64
SHORE LEASE FISHERY – Kenai Salmon Company, Inc.
Tracts Three (3) Four (4), Five (5), and Six (6), Shore Fishery Plat No. 71 LESSOR: _____
LESSEE: _____
1
SHORE FISHERY LEASE
THIS AGREEMENT, entered into this ____ day of _____________, 2026, by and between the
CITY OF KENAI, a home-rule municipal corporation of Alaska, whose address is 210 Fidalgo
Avenue, Kenai AK 99611-7750, hereinafter called “City,” and KENAI SALMON COMPANY, INC.
whose address is 4439 E. Desert Lane Court, Gilbert, AZ 85234, hereinafter called “Lessee.”
The City, in consideration of the payments of the rents and performance of all the covenants by
the Lessee herein contained, does hereby demise and lease to the Lessee the following described
property in the Kenai Recording District, Third Judicial District, State of Alaska; to wit:
Tracts Three (3) Four (4), Five (5), and Six (6), Shore Fishery Plat No. 71
A. PURPOSE: The purpose for which the Lease is issued is:
Shore fishery
B. TERM: The term of this Lease is for ten (10) years, commencing on July 1, 2026, and
ending on June 30, 2036.
C. RENTAL PAYMENT: Rental for the above described shore fishery tracts shall be payable
as follow:
1. The annual rental rate shall be $300.00 for each tract. However, should the State of
Alaska set an annual lease rate higher than $300.00 for similar tideland leases for
shore fisheries on land owned by the State, the City may amend the annual rental to
a rate equal to that charged by the State of Alaska.
2. Annual rent for the fiscal year beginning July 1 and ending June 30 shall be payable
in advance on or before the first day of July of each year.
3. Rental for any period which is less than one (1) year shall be prorated based on the
rate of the last full year.
D. GENERAL COVENANTS:
1. USES: Except as provided herein, any use of lands or facilities without the written
consent of the City is prohibited.
2. USES NOT CONTEMPLATED PROHIBITED: Solicitation of donations or the
promotion or operation of any part or kind of business or commercial enterprises, other
than as specifically set forth herein, upon, or in shore fishery lands, without the written
consent of the City is prohibited.
3. ASSIGNMENT OR SUBLETTING: Lessee with the City’s written consent, which will
not be unreasonably denied, may assign for other than collateral purposes, in whole
or in part, its rights as Lessee hereunder.
Page 65
SHORE LEASE FISHERY – Kenai Salmon Company, Inc.
Tracts Three (3) Four (4), Five (5), and Six (6), Shore Fishery Plat No. 71 LESSOR: _____
LESSEE: _____
2
Any assignee of part or all of the leased premises shall assume the duties and
obligations of the Lessee as to such part or all of the leased premises.
No such assignment, however, will discharge Lessee from its duties and obligations
hereunder.
4. COSTS AND EXPENSES: Costs and expenses incident to this lease, including but
not limited to, recording costs shall be paid by Lessee.
5. TREATMENT OF DEMISE: The Lessee agrees to keep the premises clean and in
good order at its own expense, suffering no strip or waste thereof, nor removing any
material therefrom, except fisheries resources, without written permission of the City.
At the expiration of the term fixed, or any sooner determination of the Lease, the
Lessee will peaceably and quietly quit and surrender the premises to the City.
6. PAYMENT OF RENT: Checks, bank drafts, or postal money orders shall be made
payable to the City of Kenai and delivered to the City Administration Building, Kenai,
Alaska.
7. HERRING SPAWN COVENANT: This Lease is issued subject to Sections 16.10.172
– 16.10.175 of the Alaska Statutes and it is agreed that the covenants, terms and
conditions herein contained shall be binding upon the successors and assigns of the
respective parties hereto.
8. DEFAULT RIGHT OF ENTRY: Should default be made in payment of any portion of
the rent or fees when due, or in any of the covenants or conditions contained in the
Lease or in any regulations now or hereinafter in force, then in such event the City
shall by written notice give Lessee thirty (30) days to cure such default or defaults,
after which if the default is not cured, the City may terminate the Lease, reenter and
take possession of the premises, and remove all persons therefrom.
9. LEASE UTILIZATION: Leased lands shall be utilized for purposes within the scope of
the terms of the Lease and the terms of the deed under which the land was granted to
the City (and any releases pertinent thereto), in conformity with the ordinances of the
City and Borough. Utilization or development for other than the allowed uses shall
constitute a violation of the Lease and subject the Lease to cancellation at any time.
10. CONDITION OF PREMISES: The premises demised herein are unimproved and are
leased on an “as is, where is” basis.
11. UNDERLYING TITLE: The interests transferred, or conveyed by this Lease are subject
to any and all of the covenants, terms, or conditions contained in the instruments
conveying title or other interests to the City.
12. RIGHT OF INSPECTION: The City shall have the right at all reasonable times to enter
the premises, or any part thereof, for the purposes of inspection.
Page 66
SHORE LEASE FISHERY – Kenai Salmon Company, Inc.
Tracts Three (3) Four (4), Five (5), and Six (6), Shore Fishery Plat No. 71 LESSOR: _____
LESSEE: _____
3
13. ASSUMPTION OF RISK AND INDEMITY, DEFEND, AND HOLD HARMLESS
AGREEMENT: Lessee assumes full control and sole responsibility as between Lessee
and the City for the activities of Lessee, its personnel, employees, and persons acting
on behalf or under the authority of the Lessee anywhere on the leased premises.
Lessee shall provide all proper safeguards and shall assume all risks incurred in its
activities on and access to the leased premises and its exercise of the privileges
granted in this Lease.
Lessee agrees to fully indemnify, defend, and hold harmless, the City, its officers,
agents, employees, and volunteers from and against all actions, damages, costs,
liability, claims, losses, including death, judgements, penalties, and expenses of every
type and description, including any fees and/or costs reasonably incurred by the City’s
staff attorneys and outside attorneys and any fees and expenses incurred in enforcing
this provision (hereafter collectively referred to as “Liabilities”), to which any or all of
them may be subjected, to the extent such Liabilities are caused by or result from any
negligent act or omission or willful misconduct of the Lessee in connection with or
arising from or out of Lessee’s activities on or use of the premises. This shall be
continuing obligations and shall remain in effect after termination of this Lease.
14. COLLECTION ON UNPAID MONIES: Any or all rents, charges, fees, or other
consideration which are due and unpaid at the expiration or voluntary or involuntary
termination or cancellation of this Lease, shall have such lien rights as are allowed by
law, and enforcement by distraint may be made by the City or its authorized agent.
15. EASEMENT GRANTS RESERVED: The City reserves the right to grant and control
easements in, or above the land leased. No such grant or easement will be made that
will unreasonably interfere with the Lessee’s use of the land, and Lessee shall have
free access and use of any and all parking and loading rights, rights of ingress and
egress now or hereafter appertaining to the leased premises.
16. SURRENDER ON TERMINATION: Lessee shall, on the last day of the term of this
Lease or upon any earlier termination of this Lease, surrender and deliver the premises
into the possession and use of the City without fraud or delay in good order, condition,
and repair, except for reasonable wear and tear since the last necessary repair,
replacement, restoration or renewal, free and clear of all lettings and occupancies
unless expressly permitted by the City in writing, and free and clear of all liens and
encumbrances other than those created by and for loans to the City. Upon the end of
the term of this Lease or any earlier termination thereof, title to any shore fishery
equipment left on the leased land for a period in excess of thirty (30) days shall
automatically vest in the City without requirement of any deed, conveyance, or bill of
sale thereon. However, if the City should require any such document in confirmation
hereof, Lessee shall execute, acknowledge, and deliver the same and shall pay any
charge, tax, and fee asserted or imposed by any and all governmental units in
connection herewith.
Page 67
SHORE LEASE FISHERY – Kenai Salmon Company, Inc.
Tracts Three (3) Four (4), Five (5), and Six (6), Shore Fishery Plat No. 71 LESSOR: _____
LESSEE: _____
4
17. RIGHT TO ENJOYMENT AND PEACEABLE POSSESSION: The City hereby agrees
and covenants that the Lessee, upon paying rent and performing other covenants,
terms, and conditions of this Lease, shall have the right to quietly and peacefully hold,
use, occupy, and enjoy the said leased premises, subject to the rights of the general
public and except that any inconvenience caused by public works projects in or about
the leasehold premises shall not be construed as a denial of the right of quiet or
peaceable possession.
18. LESSEE TO PAY TAXES: Lessee shall pay all lawful taxes and assessments which,
during the term hereof may become a lien upon or which may be levied by the State,
Borough, City, or any other tax levying body, upon any taxable possessory right which
Lessee may have in or to the property by reason of its use or occupancy or the terms
of this lease, provided however, that nothing herein contained shall prevent Lessee
from contesting any increase in such tax or assessment through procedures outlined
in State statutes.
19. SPECIAL SERVICES: Lessee agrees to pay the City a reasonable charge for any
special service or facilities required by Lessee in writing, which services or facilities
are not provided for herein.
20. NO PARTNERSHIP OR JOINT VENTURE CREATED: It is expressly understood that
the City shall not be construed or held to be a partner or joint venture of Lessee in the
conduct of business on the demised premises; and it is expressly understood and
agreed that the relationship between the parties hereto is, and shall at all times remain
landlord and tenant.
21. DEFAULT BANKRUPTCY, ETC.: If the Lessee shall make any assignment for the
benefit of creditors, or shall be adjudged bankrupt, or if a receiver is appointed for the
Lessee or Lessee’s assets, or any interest under this Lease, and if the appointment of
the receiver is not vacated within thirty (30) days, or if a voluntary petition is filed under
Section 18(a) of the Bankruptcy Act by the Lessee, then and in any event, the City
may, upon giving the Lessee thirty (30) days’ notice, terminate this lease.
22. NONDISCRIMINATION: The Lessee, Lessee’s personal representatives, successors
in interest, and assigns, as a part of the consideration hereof, does hereby covenant
and agree as a covenant running with the land that:
(a) No person on the grounds of race, color, or national origin shall be excluded
from participation in, denied the benefits of, or be otherwise subjected to
discrimination in the use of said shore fishery:
23. PARTIAL INVALIDITY: If any term, provision, condition, or part of this Lease is
declared by a court of competent jurisdiction to be invalid or unconstitutional, the
remaining terms, provisions, conditions, or parts shall continue in full force and effect
as though such declaration was not made.
Page 68
SHORE LEASE FISHERY – Kenai Salmon Company, Inc.
Tracts Three (3) Four (4), Five (5), and Six (6), Shore Fishery Plat No. 71 LESSOR: _____
LESSEE: _____
5
24. MODIFICATION: No lease may be modified orally or in any manner other than by an
agreement in writing, signed by all parties in interest or their successors in interest.
Any such modification shall require Council approval.
25. WARRANTY: The City does not warrant that the property which is the subject of this
Lease is suited for the use authorize herein, and no guarantee is given or implied that
it shall be profitable or suitable to employ he property to such use.
26. RIGHT TO ADOPT RULES: The City reserves the right to adopt, amend, and enforce
reasonable rules and regulations governing the demised premises and the public
areas and facilities used in connection therewith. Except in cases of emergency, no
rule or regulation hereafter adopted or amended by the City shall become applicable
unless Lessee has been given thirty (30) days’ notice of adoption or amendment
thereof.
27. NON-LIABILITY: The City shall not be liable to Lessee for any diminution or deprivation
of possession, or of Lessee’s right hereunder, on account of the exercise of any such
right or authority as provided in this or the preceding section, nor shall Lessee be
entitled to terminate the whole or any portion of the leasehold estate herein created,
by reason of the exercise of such rights or authority, unless the exercise thereof shall
so interfere with Lessee’s use and occupancy of the leasehold estate as to constitute
a termination in whole or in part of this lease by operation of law in accordance with
the laws of the State of Alaska and of the United States made applicable to the states.
28. COMPLIANCE WITH LAWS:
(a) Lessee shall observe, obey, and comply with all applicable laws, ordinances, rules,
and regulations of the Federal, State, Borough, or City governments or of any other
public authorities now or hereafter in any manner affecting the leased premises.
(b) Lessee agrees to hold the City financially harmless:
(1) From the consequences of any violation of such laws, ordinances, and/or
regulations; and
(2) From all claims for damages on account of injuries, death, or property damage
resulting from such violation.
(c) Lessee further agrees it will not permit any unlawful occupation, business, or trade
to be conducted on said premises or any use to be made thereof contrary to any
law, ordinance, or regulation as aforesaid with respect thereto, including zoning
ordinances, rules, and regulations.
29. CONDEMNATION: In the event the leased premises or any part thereof shall be
condemned and taken for a public or a quasi-public use, then upon payment of any
award or compensation arising from such condemnation, there shall be such division
of the proceeds, such abatement in rent payable during the term or any extension of
the term hereof, and such other adjustments as the parties may agree upon as being
just and equitable under all the circumstances.
Page 69
SHORE LEASE FISHERY – Kenai Salmon Company, Inc.
Tracts Three (3) Four (4), Five (5), and Six (6), Shore Fishery Plat No. 71 LESSOR: _____
LESSEE: _____
6
If the City and lessee are unable to agree within thirty (30) days after such an award
has been paid into Court, upon what division, annual abatement in rent, and other
adjustments are just and equitable, the disputes shall be determined by arbitration.
30. PROTECTION OF SUBLESSEES: To protect the position of any sublessee(s)
hereafter obtaining any property interests in the leasehold estate granted by the
Lessee hereunder, the City agrees that in the event of the cancellation, termination,
expiration, or surrender of this Lease (the ground lease), the City will accept the
sublessee, its successors and assigns, as its Lessee for a period equal to the full
unelapsed portion of the term of the sublease, including any extensions or renewals
thereof, not exceeding the term of this Lease, upon the same covenants and conditions
therein contained, to the extent that said covenants and conditions are not inconsistent
with any of the terms and conditions of this Lease, provided such Sublessee shall
make full and complete attornment to the City for the balance of the term of such
sublease so as to establish direct privity of estate and contract between the City and
the Sublessee with the same force and effect as though such sublease was originally
made directly between the City and such Sublessee; and further provided such
Sublessee agrees to comply with all the provisions of the ground lease.
31. SUCCESSORS IN INTEREST: This Lease shall be binding upon and shall inure to
the benefit of the respective successors and assigns of the parties hereto, subject to
such specific limitations on assignments as are provided for herein.
32. GOVERNING LAW: This indenture of Lease shall be governed in all respects by the
laws of the State of Alaska.
33. NOTICES:
(a) Any notices required by this Lease shall be in writing and shall be deemed to be
duly given only if delivered personally or mailed by certified or registered mail in a
prepaid envelope addressed to the parties of the address set forth in the opening
paragraph of this lease unless such address has been changed pursuant to sub-
paragraph (b) hereafter, and in that case shall to the most recent address so
changed. Any notice so mailed shall be deemed delivered on the date it is
deposited in a U.S. general or branch post office.
The City shall also mail a copy of any notice given to the Lessee, by registered or
certified mail, to any leasehold lender (mortgage, beneficiary of a deed of trust,
security assignee) who shall have given the City notice of such mortgage, deed of
trust, or security assignment.
(b) Any such addresses may be changed by an appropriate notice in writing to all other
parties affected provided such change of address is given to the other parties by
the means outlined in paragraph (a) above at least fifteen (15) days prior to the
giving of the particular notice in issue.
Page 70
SHORE LEASE FISHERY – Kenai Salmon Company, Inc.
Tracts Three (3) Four (4), Five (5), and Six (6), Shore Fishery Plat No. 71 LESSOR: _____
LESSEE: _____
7
34. ENTRY AND RE-ENTRY: In the event that the Lease should be terminated as
hereinbefore provided, or by summary proceedings or otherwise, or in the event that
the demised lands or any part thereof should be abandoned by the Lessee during said
term, the City or its agents, servants, or representatives may, immediately or any time
thereafter, re-enter, and resume possession of said lands or such part thereof and
remove all persona and property therefrom, either by summary proceedings or by a
suitable action or proceeding at law without being liable for any damages therefor. No
re-entry by the City shall be deemed an acceptance of a surrender of the lease.
35. RETENTION OF RENTAL: In the event that the Lease should be terminated because
of any breach by the Lessee as herein provided, the rental payment last made by the
Lessee shall be retained by the City as partial or total liquidated damages for said
breach.
36. WRITTEN WAIVER: The receipt of rent by the City with knowledge of any breach of
the Lease by the Lessee, or any default on the part of the Lessee in observance or
performance of any of the conditions or covenants of the Lease, shall not be deemed
to be a waiver of any provisions of the Lease. No failure on the part of the City to
enforce any covenant or provision therein contained, nor any waiver of any right
thereunder by the City, unless in writing, shall discharge or invalidate such covenants
or provisions, or affect the right of the City to enforce the same in the event of any
subsequent breach or default.
The receipt, by the City, of any rent or any other sum of money after the termination,
in any manner, of the term therein demised, or after the giving by the City of any notice
thereunder to effect such termination, shall not reinstate, continue, or extend the
resultant term therein demised, or destroy, or in any manner impair the efficacy of any
such notice of termination as may have been given thereunder by the City to the
Lessee prior to the receipt of any such sum of money or other consideration, unless
so agreed to in writing and signed by the City.
37. ZONING LAWS: Leased tidelands and shore fishery lands shall be utilized in
accordance with the building and zoning ordinances and rules and regulations of the
City. Failure to do so shall constitute a default.
38. PERSONAL USE OF MATERIALS: All coal, oil, gas, and other minerals and all
deposits of stone or gravel valuable for extraction or utilization and all materials subject
to Title II, Division I, Chapters 4, 5, and 6 of the Alaska Administrative Code are
excepted from the operation of a surface Lease. Specifically, the Lessee of the surface
rights shall not sell or remove for the use elsewhere any timber, stone, gravel, peat
moss, topsoil, or any other material valuable for building or commercial purposes;
provided, however, that material required for the development of the leasehold may
be used if its use is first approved by the City Manager.
39. MUTUAL CANCELLATION: Leases in good standing may be cancelled in whole or in
part at any time upon mutual written agreement by Lessee and the City Council.
Page 71
SHORE LEASE FISHERY – Kenai Salmon Company, Inc.
Tracts Three (3) Four (4), Five (5), and Six (6), Shore Fishery Plat No. 71 LESSOR: _____
LESSEE: _____
8
40. UNLAWFUL USE PROHIBITED: Lessee shall not allow the leasehold premises to be
used for an unlawful purpose.
41. APPROVAL OF OTHER AUTHORITIES: The issuance by the City of leases does not
relieve the Lessee of responsibility of obtaining licenses or permits as may be required
by duly authorized Borough, State, or Federal agencies.
42. PREFERENCE RIGHT TO RE-LEASE: A Lessee under an existing lease shall, upon
the expiration or the termination by mutual agreement of said Lease, be allowed a
preference right to re-lease those lands previously leased by him if all other sections
of the Kenai Municipal Code are complied with. Re-leasing will not necessarily be
under the same terms and conditions as the prior lease. When the lease is offered to
the preference right holder, the preference right holder shall exercise the right within
thirty (30) calendar days after said lease is offered by the City. Failure to do so shall
result in forfeiture and cancellation of the preference right. No preference right shall
inure to a Lessee whose lease has been terminated by cause.
IN WITNESS WHEREOF the parties hereto have hereunto set their hands, the day
and year stated in the individual acknowledgements below.
LESSOR:
CITY OF KENAI
BY: __________________________________________________
Terry Eubank Date
City Manager
LESSEE:
KENAI SALMON COMPANY, INC.
BY: __________________________________________________
Michael Markham Date
Page 72
Sponsored by: Administration
New Text Underlined; [DELETED TEXT BRACKETED]
CITY OF KENAI
RESOLUTION NO. 2026-26
A RESOLUTION APPROVING A LEASE FORM FOR LEASING OF TIDELANDS FOR SHORE
FISHERIES AND AUTHORIZING THE CITY MANAGER TO ENTER INTO A SHORE FISHERY LEASE
WITH AURORA HOLDINGS AND INVESTMENTS, LLC FOR THE PROPERTY DESCRIBED AS TRACT
SEVEN (7), SHORE FISHERY PLAT NO. 71.
WHEREAS, in 1977, the State of Alaska granted the area known as the Alaska Tideland Survey 272
containing approximately 2,752 acres to the City of Kenai pursuant to the City’s Municipal Preference
Right; and,
WHEREAS, Ordinance 3500-2026, relocating tideland leasing provisions for shore fisheries to Kenai
Municipal Code (KMC) Title 22 – City Owned Lands, was enacted on February 4, 2026 and became
effective on March 6, 2026; and,
WHEREAS, a new lease form for leasing tidelands for shore fisheries is needed to reflect the changes to
the lease form necessitated by Ordinance 3500-2026 and must be approved by Council Resolution
pursuant to KMC 22.10.040(e); and,
WHEREAS, KMC 22.10.010(c) provides that a lessee under an existing shore fishery lease will have a
preference right to re-lease the same property upon lease expiration, provided the lessee is in compliance
with all applicable provisions of the Kenai Municipal Code; and,
WHEREAS, the current lessee, Aurora Holdings and Investments, LLC, is in compliance with all
applicable sections of Kenai Municipal Code and is current with all invoiced lease payments; and,
WHEREAS, on March 2, 2026 the City of Kenai provided notice to all existing shore fishery lessees of
the June 30, 2026 lease expiration date; and,
WHEREAS, Aurora Holdings and Investments, LLC timely exercised their preference right to re-lease
the property in accordance with KMC 22.10.010(c); and,
WHEREAS, KMC 22.10.040(e) requires the use of a standard lease form adopted by resolution of the
City Council; and,
WHEREAS, the new Lease term is proposed to commence on July 1, 2026; and,
WHEREAS, approval of the Lease is consistent with the intent of Kenai Municipal Code, supports the
continued authorized use, and is in the best interest of the City.
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 lease with Aurora Holdings and
Investments, LLC for the property described as Tract Seven (7), Shore Fishery Plat No. 71, in
substantially the form approved by the City Council.
Section 2. That this Resolution takes effect immediately upon passage.
Page 73
Resolution No. 2026-26
Page 2 of 2
New Text Underlined; [DELETED TEXT BRACKETED]
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 22ND DAY OF APRIL, 2026.
___________________________________
Henry H. Knackstedt, Mayor
ATTEST:
___________________________________
Michelle M. Saner, MMC, City Clerk
Page 74
MEMORANDUM
TO: Mayor Knackstedt and Council Members
THROUGH: Terry Eubank, City Manager
FROM: Kevin Buettner, Planning Director
DATE: April 14, 2026
SUBJECT: Resolution No. 2026-26 - Approving a Lease Form for Leasing of Tidelands
for Shore Fisheries and Authorizing the City Manager to Enter into a Shore
Fishery Lease with Aurora Holdings and Investments, LLC for the Property
Described as Tract Seven (7), Shore Fishery Plat No. 71.
This Resolution approves a new standard lease form for tidelands for shore fisheries that is
consistent with recent code amendments and authorizes the City Manager to execute a Shore
Fishery lease. Ordinance 3500-2026, relocating tideland leasing provisions for shore fisheries to
Kenai Municipal Code (KMC) Title 22 - City Owned Lands, was enacted on February 4, 2026 and
became effective on March 6, 2026. To ensure compliance with the new code references, a new
form was created. The draft lease form has been reviewed as to form by the City Attorney.
Pursuant to KMC 22.10.010(c), any new lease form must be approved by Resolution.
The current shore fishery leases expire on June 30, 2026. All current lessees have expressed
their intent to re-Lease their shore fishery tracts for the lease period starting July 1, 2026 and
ending June 30, 2036. Adoption of this lease form and authorizing the City Manager to enter into
the lease will allow the Administration time to fully execute the agreements prior to expiration.
This resolution is specifically regarding the shore fishery tidelands described as Tract Seven (7),
Shore Fishery Plat No. 71 to be leased by Aurora Holdings and Investments, LLC.
Thank you for your consideration.
Page 75
SHORE LEASE FISHERY – Aurora Holdings & Investments
Tract 7, Shore Fisher Plat No. 71 LESSOR: _____
LESSEE: _____
1
SHORE FISHERY LEASE
THIS AGREEMENT, entered into this ____ day of _____________, 2026, by and between the
CITY OF KENAI, a home-rule municipal corporation of Alaska, whose address is 210 Fidalgo
Avenue, Kenai AK 99611-7750, hereinafter called “City,” and AURORA HOLDINGS &
INVESTMENTS, LLC whose address is 3336 Robin Street, Anchorage, AK 99504, hereinafter
called “Lessee.”
The City, in consideration of the payments of the rents and performance of all the covenants by
the Lessee herein contained, does hereby demise and lease to the Lessee the following described
property in the Kenai Recording District, Third Judicial District, State of Alaska; to wit:
ADL 32885 – Tract Seven (7), Shore Fishery Plat No. 71
A. PURPOSE: The purpose for which the Lease is issued is:
Shore fishery
B. TERM: The term of this Lease is for ten (10) years, commencing on July 1, 2026, and
ending on June 30, 2036.
C. RENTAL PAYMENT: Rental for the above described shore fishery tracts shall be payable
as follow:
1. The annual rental rate shall be $300.00 for each tract. However, should the State of
Alaska set an annual lease rate higher than $300.00 for similar tideland leases for
shore fisheries on land owned by the State, the City may amend the annual rental to
a rate equal to that charged by the State of Alaska.
2. Annual rent for the fiscal year beginning July 1 and ending June 30 shall be payable
in advance on or before the first day of July of each year.
3. Rental for any period which is less than one (1) year shall be prorated based on the
rate of the last full year.
D. GENERAL COVENANTS:
1. USES: Except as provided herein, any use of lands or facilities without the written
consent of the City is prohibited.
2. USES NOT CONTEMPLATED PROHIBITED: Solicitation of donations or the
promotion or operation of any part or kind of business or commercial enterprises, other
than as specifically set forth herein, upon, or in shore fishery lands, without the written
consent of the City is prohibited.
3. ASSIGNMENT OR SUBLETTING: Lessee with the City’s written consent, which will
not be unreasonably denied, may assign for other than collateral purposes, in whole
or in part, its rights as Lessee hereunder.
Page 76
SHORE LEASE FISHERY – Aurora Holdings & Investments
Tract 7, Shore Fisher Plat No. 71 LESSOR: _____
LESSEE: _____
2
Any assignee of part or all of the leased premises shall assume the duties and
obligations of the Lessee as to such part or all of the leased premises.
No such assignment, however, will discharge Lessee from its duties and obligations
hereunder.
4. COSTS AND EXPENSES: Costs and expenses incident to this lease, including but
not limited to, recording costs shall be paid by Lessee.
5. TREATMENT OF DEMISE: The Lessee agrees to keep the premises clean and in
good order at its own expense, suffering no strip or waste thereof, nor removing any
material therefrom, except fisheries resources, without written permission of the City.
At the expiration of the term fixed, or any sooner determination of the Lease, the
Lessee will peaceably and quietly quit and surrender the premises to the City.
6. PAYMENT OF RENT: Checks, bank drafts, or postal money orders shall be made
payable to the City of Kenai and delivered to the City Administration Building, Kenai,
Alaska.
7. HERRING SPAWN COVENANT: This Lease is issued subject to Sections 16.10.172
– 16.10.175 of the Alaska Statutes and it is agreed that the covenants, terms and
conditions herein contained shall be binding upon the successors and assigns of the
respective parties hereto.
8. DEFAULT RIGHT OF ENTRY: Should default be made in payment of any portion of
the rent or fees when due, or in any of the covenants or conditions contained in the
Lease or in any regulations now or hereinafter in force, then in such event the City
shall by written notice give Lessee thirty (30) days to cure such default or defaults,
after which if the default is not cured, the City may terminate the Lease, reenter and
take possession of the premises, and remove all persons therefrom.
9. LEASE UTILIZATION: Leased lands shall be utilized for purposes within the scope of
the terms of the Lease and the terms of the deed under which the land was granted to
the City (and any releases pertinent thereto), in conformity with the ordinances of the
City and Borough. Utilization or development for other than the allowed uses shall
constitute a violation of the Lease and subject the Lease to cancellation at any time.
10. CONDITION OF PREMISES: The premises demised herein are unimproved and are
leased on an “as is, where is” basis.
11. UNDERLYING TITLE: The interests transferred, or conveyed by this Lease are subject
to any and all of the covenants, terms, or conditions contained in the instruments
conveying title or other interests to the City.
12. RIGHT OF INSPECTION: The City shall have the right at all reasonable times to enter
the premises, or any part thereof, for the purposes of inspection.
Page 77
SHORE LEASE FISHERY – Aurora Holdings & Investments
Tract 7, Shore Fisher Plat No. 71 LESSOR: _____
LESSEE: _____
3
13. ASSUMPTION OF RISK AND INDEMITY, DEFEND, AND HOLD HARMLESS
AGREEMENT: Lessee assumes full control and sole responsibility as between Lessee
and the City for the activities of Lessee, its personnel, employees, and persons acting
on behalf or under the authority of the Lessee anywhere on the leased premises.
Lessee shall provide all proper safeguards and shall assume all risks incurred in its
activities on and access to the leased premises and its exercise of the privileges
granted in this Lease.
Lessee agrees to fully indemnify, defend, and hold harmless, the City, its officers,
agents, employees, and volunteers from and against all actions, damages, costs,
liability, claims, losses, including death, judgements, penalties, and expenses of every
type and description, including any fees and/or costs reasonably incurred by the City’s
staff attorneys and outside attorneys and any fees and expenses incurred in enforcing
this provision (hereafter collectively referred to as “Liabilities”), to which any or all of
them may be subjected, to the extent such Liabilities are caused by or result from any
negligent act or omission or willful misconduct of the Lessee in connection with or
arising from or out of Lessee’s activities on or use of the premises. This shall be
continuing obligations and shall remain in effect after termination of this Lease.
14. COLLECTION ON UNPAID MONIES: Any or all rents, charges, fees, or other
consideration which are due and unpaid at the expiration or voluntary or involuntary
termination or cancellation of this Lease, shall have such lien rights as are allowed by
law, and enforcement by distraint may be made by the City or its authorized agent.
15. EASEMENT GRANTS RESERVED: The City reserves the right to grant and control
easements in, or above the land leased. No such grant or easement will be made that
will unreasonably interfere with the Lessee’s use of the land, and Lessee shall have
free access and use of any and all parking and loading rights, rights of ingress and
egress now or hereafter appertaining to the leased premises.
16. SURRENDER ON TERMINATION: Lessee shall, on the last day of the term of this
Lease or upon any earlier termination of this Lease, surrender and deliver the premises
into the possession and use of the City without fraud or delay in good order, condition,
and repair, except for reasonable wear and tear since the last necessary repair,
replacement, restoration or renewal, free and clear of all lettings and occupancies
unless expressly permitted by the City in writing, and free and clear of all liens and
encumbrances other than those created by and for loans to the City. Upon the end of
the term of this Lease or any earlier termination thereof, title to any shore fishery
equipment left on the leased land for a period in excess of thirty (30) days shall
automatically vest in the City without requirement of any deed, conveyance, or bill of
sale thereon. However, if the City should require any such document in confirmation
hereof, Lessee shall execute, acknowledge, and deliver the same and shall pay any
charge, tax, and fee asserted or imposed by any and all governmental units in
connection herewith.
Page 78
SHORE LEASE FISHERY – Aurora Holdings & Investments
Tract 7, Shore Fisher Plat No. 71 LESSOR: _____
LESSEE: _____
4
17. RIGHT TO ENJOYMENT AND PEACEABLE POSSESSION: The City hereby agrees
and covenants that the Lessee, upon paying rent and performing other covenants,
terms, and conditions of this Lease, shall have the right to quietly and peacefully hold,
use, occupy, and enjoy the said leased premises, subject to the rights of the general
public and except that any inconvenience caused by public works projects in or about
the leasehold premises shall not be construed as a denial of the right of quiet or
peaceable possession.
18. LESSEE TO PAY TAXES: Lessee shall pay all lawful taxes and assessments which,
during the term hereof may become a lien upon or which may be levied by the State,
Borough, City, or any other tax levying body, upon any taxable possessory right which
Lessee may have in or to the property by reason of its use or occupancy or the terms
of this lease, provided however, that nothing herein contained shall prevent Lessee
from contesting any increase in such tax or assessment through procedures outlined
in State statutes.
19. SPECIAL SERVICES: Lessee agrees to pay the City a reasonable charge for any
special service or facilities required by Lessee in writing, which services or facilities
are not provided for herein.
20. NO PARTNERSHIP OR JOINT VENTURE CREATED: It is expressly understood that
the City shall not be construed or held to be a partner or joint venture of Lessee in the
conduct of business on the demised premises; and it is expressly understood and
agreed that the relationship between the parties hereto is, and shall at all times remain
landlord and tenant.
21. DEFAULT BANKRUPTCY, ETC.: If the Lessee shall make any assignment for the
benefit of creditors, or shall be adjudged bankrupt, or if a receiver is appointed for the
Lessee or Lessee’s assets, or any interest under this Lease, and if the appointment of
the receiver is not vacated within thirty (30) days, or if a voluntary petition is filed under
Section 18(a) of the Bankruptcy Act by the Lessee, then and in any event, the City
may, upon giving the Lessee thirty (30) days’ notice, terminate this lease.
22. NONDISCRIMINATION: The Lessee, Lessee’s personal representatives, successors
in interest, and assigns, as a part of the consideration hereof, does hereby covenant
and agree as a covenant running with the land that:
(a) No person on the grounds of race, color, or national origin shall be excluded
from participation in, denied the benefits of, or be otherwise subjected to
discrimination in the use of said shore fishery:
23. PARTIAL INVALIDITY: If any term, provision, condition, or part of this Lease is
declared by a court of competent jurisdiction to be invalid or unconstitutional, the
remaining terms, provisions, conditions, or parts shall continue in full force and effect
as though such declaration was not made.
Page 79
SHORE LEASE FISHERY – Aurora Holdings & Investments
Tract 7, Shore Fisher Plat No. 71 LESSOR: _____
LESSEE: _____
5
24. MODIFICATION: No lease may be modified orally or in any manner other than by an
agreement in writing, signed by all parties in interest or their successors in interest.
Any such modification shall require Council approval.
25. WARRANTY: The City does not warrant that the property which is the subject of this
Lease is suited for the use authorize herein, and no guarantee is given or implied that
it shall be profitable or suitable to employ he property to such use.
26. RIGHT TO ADOPT RULES: The City reserves the right to adopt, amend, and enforce
reasonable rules and regulations governing the demised premises and the public
areas and facilities used in connection therewith. Except in cases of emergency, no
rule or regulation hereafter adopted or amended by the City shall become applicable
unless Lessee has been given thirty (30) days’ notice of adoption or amendment
thereof.
27. NON-LIABILITY: The City shall not be liable to Lessee for any diminution or deprivation
of possession, or of Lessee’s right hereunder, on account of the exercise of any such
right or authority as provided in this or the preceding section, nor shall Lessee be
entitled to terminate the whole or any portion of the leasehold estate herein created,
by reason of the exercise of such rights or authority, unless the exercise thereof shall
so interfere with Lessee’s use and occupancy of the leasehold estate as to constitute
a termination in whole or in part of this lease by operation of law in accordance with
the laws of the State of Alaska and of the United States made applicable to the states.
28. COMPLIANCE WITH LAWS:
(a) Lessee shall observe, obey, and comply with all applicable laws, ordinances, rules,
and regulations of the Federal, State, Borough, or City governments or of any other
public authorities now or hereafter in any manner affecting the leased premises.
(b) Lessee agrees to hold the City financially harmless:
(1) From the consequences of any violation of such laws, ordinances, and/or
regulations; and
(2) From all claims for damages on account of injuries, death, or property damage
resulting from such violation.
(c) Lessee further agrees it will not permit any unlawful occupation, business, or trade
to be conducted on said premises or any use to be made thereof contrary to any
law, ordinance, or regulation as aforesaid with respect thereto, including zoning
ordinances, rules, and regulations.
29. CONDEMNATION: In the event the leased premises or any part thereof shall be
condemned and taken for a public or a quasi-public use, then upon payment of any
award or compensation arising from such condemnation, there shall be such division
of the proceeds, such abatement in rent payable during the term or any extension of
the term hereof, and such other adjustments as the parties may agree upon as being
just and equitable under all the circumstances.
Page 80
SHORE LEASE FISHERY – Aurora Holdings & Investments
Tract 7, Shore Fisher Plat No. 71 LESSOR: _____
LESSEE: _____
6
If the City and lessee are unable to agree within thirty (30) days after such an award
has been paid into Court, upon what division, annual abatement in rent, and other
adjustments are just and equitable, the disputes shall be determined by arbitration.
30. PROTECTION OF SUBLESSEES: To protect the position of any sublessee(s)
hereafter obtaining any property interests in the leasehold estate granted by the
Lessee hereunder, the City agrees that in the event of the cancellation, termination,
expiration, or surrender of this Lease (the ground lease), the City will accept the
sublessee, its successors and assigns, as its Lessee for a period equal to the full
unelapsed portion of the term of the sublease, including any extensions or renewals
thereof, not exceeding the term of this Lease, upon the same covenants and conditions
therein contained, to the extent that said covenants and conditions are not inconsistent
with any of the terms and conditions of this Lease, provided such Sublessee shall
make full and complete attornment to the City for the balance of the term of such
sublease so as to establish direct privity of estate and contract between the City and
the Sublessee with the same force and effect as though such sublease was originally
made directly between the City and such Sublessee; and further provided such
Sublessee agrees to comply with all the provisions of the ground lease.
31. SUCCESSORS IN INTEREST: This Lease shall be binding upon and shall inure to
the benefit of the respective successors and assigns of the parties hereto, subject to
such specific limitations on assignments as are provided for herein.
32. GOVERNING LAW: This indenture of Lease shall be governed in all respects by the
laws of the State of Alaska.
33. NOTICES:
(a) Any notices required by this Lease shall be in writing and shall be deemed to be
duly given only if delivered personally or mailed by certified or registered mail in a
prepaid envelope addressed to the parties of the address set forth in the opening
paragraph of this lease unless such address has been changed pursuant to sub-
paragraph (b) hereafter, and in that case shall to the most recent address so
changed. Any notice so mailed shall be deemed delivered on the date it is
deposited in a U.S. general or branch post office.
The City shall also mail a copy of any notice given to the Lessee, by registered or
certified mail, to any leasehold lender (mortgage, beneficiary of a deed of trust,
security assignee) who shall have given the City notice of such mortgage, deed of
trust, or security assignment.
(b) Any such addresses may be changed by an appropriate notice in writing to all other
parties affected provided such change of address is given to the other parties by
the means outlined in paragraph (a) above at least fifteen (15) days prior to the
giving of the particular notice in issue.
Page 81
SHORE LEASE FISHERY – Aurora Holdings & Investments
Tract 7, Shore Fisher Plat No. 71 LESSOR: _____
LESSEE: _____
7
34. ENTRY AND RE-ENTRY: In the event that the Lease should be terminated as
hereinbefore provided, or by summary proceedings or otherwise, or in the event that
the demised lands or any part thereof should be abandoned by the Lessee during said
term, the City or its agents, servants, or representatives may, immediately or any time
thereafter, re-enter, and resume possession of said lands or such part thereof and
remove all persona and property therefrom, either by summary proceedings or by a
suitable action or proceeding at law without being liable for any damages therefor. No
re-entry by the City shall be deemed an acceptance of a surrender of the lease.
35. RETENTION OF RENTAL: In the event that the Lease should be terminated because
of any breach by the Lessee as herein provided, the rental payment last made by the
Lessee shall be retained by the City as partial or total liquidated damages for said
breach.
36. WRITTEN WAIVER: The receipt of rent by the City with knowledge of any breach of
the Lease by the Lessee, or any default on the part of the Lessee in observance or
performance of any of the conditions or covenants of the Lease, shall not be deemed
to be a waiver of any provisions of the Lease. No failure on the part of the City to
enforce any covenant or provision therein contained, nor any waiver of any right
thereunder by the City, unless in writing, shall discharge or invalidate such covenants
or provisions, or affect the right of the City to enforce the same in the event of any
subsequent breach or default.
The receipt, by the City, of any rent or any other sum of money after the termination,
in any manner, of the term therein demised, or after the giving by the City of any notice
thereunder to effect such termination, shall not reinstate, continue, or extend the
resultant term therein demised, or destroy, or in any manner impair the efficacy of any
such notice of termination as may have been given thereunder by the City to the
Lessee prior to the receipt of any such sum of money or other consideration, unless
so agreed to in writing and signed by the City.
37. ZONING LAWS: Leased tidelands and shore fishery lands shall be utilized in
accordance with the building and zoning ordinances and rules and regulations of the
City. Failure to do so shall constitute a default.
38. PERSONAL USE OF MATERIALS: All coal, oil, gas, and other minerals and all
deposits of stone or gravel valuable for extraction or utilization and all materials subject
to Title II, Division I, Chapters 4, 5, and 6 of the Alaska Administrative Code are
excepted from the operation of a surface Lease. Specifically, the Lessee of the surface
rights shall not sell or remove for the use elsewhere any timber, stone, gravel, peat
moss, topsoil, or any other material valuable for building or commercial purposes;
provided, however, that material required for the development of the leasehold may
be used if its use is first approved by the City Manager.
39. MUTUAL CANCELLATION: Leases in good standing may be cancelled in whole or in
part at any time upon mutual written agreement by Lessee and the City Council.
Page 82
SHORE LEASE FISHERY – Aurora Holdings & Investments
Tract 7, Shore Fisher Plat No. 71 LESSOR: _____
LESSEE: _____
8
40. UNLAWFUL USE PROHIBITED: Lessee shall not allow the leasehold premises to be
used for an unlawful purpose.
41. APPROVAL OF OTHER AUTHORITIES: The issuance by the City of leases does not
relieve the Lessee of responsibility of obtaining licenses or permits as may be required
by duly authorized Borough, State, or Federal agencies.
42. PREFERENCE RIGHT TO RE-LEASE: A Lessee under an existing lease shall, upon
the expiration or the termination by mutual agreement of said Lease, be allowed a
preference right to re-lease those lands previously leased by him if all other sections
of the Kenai Municipal Code are complied with. Re-leasing will not necessarily be
under the same terms and conditions as the prior lease. When the lease is offered to
the preference right holder, the preference right holder shall exercise the right within
thirty (30) calendar days after said lease is offered by the City. Failure to do so shall
result in forfeiture and cancellation of the preference right. No preference right shall
inure to a Lessee whose lease has been terminated by cause.
IN WITNESS WHEREOF the parties hereto have hereunto set their hands, the day
and year stated in the individual acknowledgements below.
LESSOR:
CITY OF KENAI
BY: __________________________________________________
Terry Eubank Date
City Manager
LESSEE:
AURORA HOLDINGS & INVESTMENTS, LLC
BY: __________________________________________________
Laura D. Maccabee Date
Page 83
Sponsored by: Administration
New Text Underlined; [DELETED TEXT BRACKETED]
CITY OF KENAI
RESOLUTION NO. 2026-27
A RESOLUTION APPROVING A LEASE FORM FOR LEASING OF TIDELANDS FOR SHORE
FISHERIES AND AUTHORIZING THE CITY MANAGER TO ENTER INTO A SHORE FISHERY LEASE
WITH LAURA MACCABEE FOR THE PROPERTY DESCRIBED AS A 3.29 ACRE PORTION OF
TIDELANDS SURVEY NO. 272 WITHIN SECTION THIRTY-FIVE (35), TOWNSHIP 5 NORTH, RANGE
12 WEST.
WHEREAS, in 1977, the State of Alaska granted the area known as the Alaska Tideland Survey 272
containing approximately 2,752 acres to the City of Kenai pursuant to the City’s Municipal Preference
Right; and,
WHEREAS, Ordinance 3500-2026, relocating tideland leasing provisions for shore fisheries to Kenai
Municipal Code (KMC) Title 22 – City Owned Lands, was enacted on February 4, 2026 and became
effective on March 6, 2026; and,
WHEREAS, a new lease form for leasing tidelands for shore fisheries is needed to reflect the changes to
the lease form necessitated by Ordinance 3500-2026 and must be approved by Council Resolution
pursuant to KMC 22.10.040(e); and,
WHEREAS, KMC 22.10.010(c) provides that a lessee under an existing shore fishery lease will have a
preference right to re-lease the same property upon lease expiration, provided the lessee is in compliance
with all applicable provisions of the Kenai Municipal Code; and,
WHEREAS, the current lessee, Laura Maccabee is in compliance with all applicable sections of Kenai
Municipal Code and is current with all invoiced lease payments; and,
WHEREAS, on March 2, 2026 the City of Kenai provided notice to all existing shore fishery lessees of
the June 30, 2026 lease expiration date; and,
WHEREAS, Laura Maccabee timely exercised her preference right to re-lease the property in accordance
with KMC 22.10.010(c); and,
WHEREAS, KMC 22.10.040(e) requires the use of a standard lease form adopted by resolution of the
City Council; and,
WHEREAS, the new Lease term is proposed to commence on July 1, 2026; and,
WHEREAS, approval of the lease is consistent with the intent of Kenai Municipal Code, supports the
continued authorized use, and is in the best interest of the City.
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 lease with Laura Maccabee for the
property described as a 3.29-acre portion of Tidelands Survey No. 272 within Section Thirty-Five (35),
Township 5 North, Range 12 West, in substantially the form approved by the City Council.
Section 2. That this Resolution takes effect immediately upon passage.
Page 84
Resolution No. 2026-27
Page 2 of 2
New Text Underlined; [DELETED TEXT BRACKETED]
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 22ND DAY OF APRIL, 2026.
___________________________________
Henry H. Knackstedt, Mayor
ATTEST:
___________________________________
Michelle M. Saner, MMC, City Clerk
Page 85
MEMORANDUM
TO: Mayor Knackstedt and Council Members
THROUGH: Terry Eubank, City Manager
FROM: Kevin Buettner, Planning Director
DATE: April 14, 2026
SUBJECT: Resolution No. 2026-27 - Approving a Lease Form for Leasing of Tidelands
for Shore Fisheries and Authorizing the City Manager to Enter into a Shore
Fishery Lease with Laura Maccabee for the Property Described as a 3.29-
acre portion of Tidelands Survey No. 272 within Section Thirty-Five (35),
Township 5 North, Range 12 West
This Resolution approves a new standard lease form for tidelands for shore fisheries that is
consistent with recent code amendments and authorizes the City Manager to execute a Shore
Fishery lease. Ordinance 3500-2026, relocating tideland leasing provisions for shore fisheries to
Kenai Municipal Code (KMC) Title 22 - City Owned Lands, was enacted on February 4, 2026 and
became effective on March 6, 2026. To ensure compliance with the new code references, a new
form was created. The draft lease form has been reviewed as to form by the City Attorney.
Pursuant to KMC 22.10.010(c), any new lease form must be approved by Resolution.
The current shore fishery leases expire on June 30, 2026. All current lessees have expressed
their intent to re-Lease their shore fishery tracts for the lease period starting July 1, 2026 and
ending June 30, 2036. Adoption of this lease form and authorizing the City Manager to enter into
the lease will allow the Administration time to fully execute the agreements prior to expiration.
This resolution is specifically regarding the shore fishery tidelands described as a 3.29-acre
portion of Tidelands Survey No. 272 within Section Thirty-Five (35), Township 5 North, Range 12
West to be leased by Laura Maccabee.
Thank you for your consideration.
Page 86
SHORE LEASE FISHERY – Laura D. Maccabee
3.29-acre portion of Tidelands Survey No. 272 LESSOR: _____
LESSEE: _____
1
SHORE FISHERY LEASE
THIS AGREEMENT, entered into this ____ day of _____________, 2026, by and between the
CITY OF KENAI, a home-rule municipal corporation of Alaska, whose address is 210 Fidalgo
Avenue, Kenai AK 99611-7750, hereinafter called “City,” and LAURA D. MACCABEE whose
address is 3336 Robin Street, Anchorage, AK 99504, hereinafter called “Lessee.”
The City, in consideration of the payments of the rents and performance of all the covenants by
the Lessee herein contained, does hereby demise and lease to the Lessee the following described
property in the Kenai Recording District, Third Judicial District, State of Alaska; to wit:
A 3.29 acre portion of Tidelands Survey No. 272 within Section Thirty-five (35), Township 5 North,
Range 12 West which is shown as the proposed lease lot on the attachment “A”
A. PURPOSE: The purpose for which the Lease is issued is:
Shore fishery
B. TERM: The term of this Lease is for ten (10) years, commencing on July 1, 2026, and
ending on June 30, 2036.
C. RENTAL PAYMENT: Rental for the above described shore fishery tracts shall be payable
as follow:
1. The annual rental rate shall be $300.00 for each tract. However, should the State of
Alaska set an annual lease rate higher than $300.00 for similar tideland leases for
shore fisheries on land owned by the State, the City may amend the annual rental to
a rate equal to that charged by the State of Alaska.
2. Annual rent for the fiscal year beginning July 1 and ending June 30 shall be payable
in advance on or before the first day of July of each year.
3. Rental for any period which is less than one (1) year shall be prorated based on the
rate of the last full year.
D. GENERAL COVENANTS:
1. USES: Except as provided herein, any use of lands or facilities without the written
consent of the City is prohibited.
2. USES NOT CONTEMPLATED PROHIBITED: Solicitation of donations or the
promotion or operation of any part or kind of business or commercial enterprises, other
than as specifically set forth herein, upon, or in shore fishery lands, without the written
consent of the City is prohibited.
3. ASSIGNMENT OR SUBLETTING: Lessee with the City’s written consent, which will
not be unreasonably denied, may assign for other than collateral purposes, in whole
or in part, its rights as Lessee hereunder.
Page 87
SHORE LEASE FISHERY – Laura D. Maccabee
3.29-acre portion of Tidelands Survey No. 272 LESSOR: _____
LESSEE: _____
2
Any assignee of part or all of the leased premises shall assume the duties and
obligations of the Lessee as to such part or all of the leased premises.
No such assignment, however, will discharge Lessee from its duties and obligations
hereunder.
4. COSTS AND EXPENSES: Costs and expenses incident to this lease, including but
not limited to, recording costs shall be paid by Lessee.
5. TREATMENT OF DEMISE: The Lessee agrees to keep the premises clean and in
good order at its own expense, suffering no strip or waste thereof, nor removing any
material therefrom, except fisheries resources, without written permission of the City.
At the expiration of the term fixed, or any sooner determination of the Lease, the
Lessee will peaceably and quietly quit and surrender the premises to the City.
6. PAYMENT OF RENT: Checks, bank drafts, or postal money orders shall be made
payable to the City of Kenai and delivered to the City Administration Building, Kenai,
Alaska.
7. HERRING SPAWN COVENANT: This Lease is issued subject to Sections 16.10.172
– 16.10.175 of the Alaska Statutes and it is agreed that the covenants, terms and
conditions herein contained shall be binding upon the successors and assigns of the
respective parties hereto.
8. DEFAULT RIGHT OF ENTRY: Should default be made in payment of any portion of
the rent or fees when due, or in any of the covenants or conditions contained in the
Lease or in any regulations now or hereinafter in force, then in such event the City
shall by written notice give Lessee thirty (30) days to cure such default or defaults,
after which if the default is not cured, the City may terminate the Lease, reenter and
take possession of the premises, and remove all persons therefrom.
9. LEASE UTILIZATION: Leased lands shall be utilized for purposes within the scope of
the terms of the Lease and the terms of the deed under which the land was granted to
the City (and any releases pertinent thereto), in conformity with the ordinances of the
City and Borough. Utilization or development for other than the allowed uses shall
constitute a violation of the Lease and subject the Lease to cancellation at any time.
10. CONDITION OF PREMISES: The premises demised herein are unimproved and are
leased on an “as is, where is” basis.
11. UNDERLYING TITLE: The interests transferred, or conveyed by this Lease are subject
to any and all of the covenants, terms, or conditions contained in the instruments
conveying title or other interests to the City.
12. RIGHT OF INSPECTION: The City shall have the right at all reasonable times to enter
the premises, or any part thereof, for the purposes of inspection.
Page 88
SHORE LEASE FISHERY – Laura D. Maccabee
3.29-acre portion of Tidelands Survey No. 272 LESSOR: _____
LESSEE: _____
3
13. ASSUMPTION OF RISK AND INDEMITY, DEFEND, AND HOLD HARMLESS
AGREEMENT: Lessee assumes full control and sole responsibility as between Lessee
and the City for the activities of Lessee, its personnel, employees, and persons acting
on behalf or under the authority of the Lessee anywhere on the leased premises.
Lessee shall provide all proper safeguards and shall assume all risks incurred in its
activities on and access to the leased premises and its exercise of the privileges
granted in this Lease.
Lessee agrees to fully indemnify, defend, and hold harmless, the City, its officers,
agents, employees, and volunteers from and against all actions, damages, costs,
liability, claims, losses, including death, judgements, penalties, and expenses of every
type and description, including any fees and/or costs reasonably incurred by the City’s
staff attorneys and outside attorneys and any fees and expenses incurred in enforcing
this provision (hereafter collectively referred to as “Liabilities”), to which any or all of
them may be subjected, to the extent such Liabilities are caused by or result from any
negligent act or omission or willful misconduct of the Lessee in connection with or
arising from or out of Lessee’s activities on or use of the premises. This shall be
continuing obligations and shall remain in effect after termination of this Lease.
14. COLLECTION ON UNPAID MONIES: Any or all rents, charges, fees, or other
consideration which are due and unpaid at the expiration or voluntary or involuntary
termination or cancellation of this Lease, shall have such lien rights as are allowed by
law, and enforcement by distraint may be made by the City or its authorized agent.
15. EASEMENT GRANTS RESERVED: The City reserves the right to grant and control
easements in, or above the land leased. No such grant or easement will be made that
will unreasonably interfere with the Lessee’s use of the land, and Lessee shall have
free access and use of any and all parking and loading rights, rights of ingress and
egress now or hereafter appertaining to the leased premises.
16. SURRENDER ON TERMINATION: Lessee shall, on the last day of the term of this
Lease or upon any earlier termination of this Lease, surrender and deliver the premises
into the possession and use of the City without fraud or delay in good order, condition,
and repair, except for reasonable wear and tear since the last necessary repair,
replacement, restoration or renewal, free and clear of all lettings and occupancies
unless expressly permitted by the City in writing, and free and clear of all liens and
encumbrances other than those created by and for loans to the City. Upon the end of
the term of this Lease or any earlier termination thereof, title to any shore fishery
equipment left on the leased land for a period in excess of thirty (30) days shall
automatically vest in the City without requirement of any deed, conveyance, or bill of
sale thereon. However, if the City should require any such document in confirmation
hereof, Lessee shall execute, acknowledge, and deliver the same and shall pay any
charge, tax, and fee asserted or imposed by any and all governmental units in
connection herewith.
Page 89
SHORE LEASE FISHERY – Laura D. Maccabee
3.29-acre portion of Tidelands Survey No. 272 LESSOR: _____
LESSEE: _____
4
17. RIGHT TO ENJOYMENT AND PEACEABLE POSSESSION: The City hereby agrees
and covenants that the Lessee, upon paying rent and performing other covenants,
terms, and conditions of this Lease, shall have the right to quietly and peacefully hold,
use, occupy, and enjoy the said leased premises, subject to the rights of the general
public and except that any inconvenience caused by public works projects in or about
the leasehold premises shall not be construed as a denial of the right of quiet or
peaceable possession.
18. LESSEE TO PAY TAXES: Lessee shall pay all lawful taxes and assessments which,
during the term hereof may become a lien upon or which may be levied by the State,
Borough, City, or any other tax levying body, upon any taxable possessory right which
Lessee may have in or to the property by reason of its use or occupancy or the terms
of this lease, provided however, that nothing herein contained shall prevent Lessee
from contesting any increase in such tax or assessment through procedures outlined
in State statutes.
19. SPECIAL SERVICES: Lessee agrees to pay the City a reasonable charge for any
special service or facilities required by Lessee in writing, which services or facilities
are not provided for herein.
20. NO PARTNERSHIP OR JOINT VENTURE CREATED: It is expressly understood that
the City shall not be construed or held to be a partner or joint venture of Lessee in the
conduct of business on the demised premises; and it is expressly understood and
agreed that the relationship between the parties hereto is, and shall at all times remain
landlord and tenant.
21. DEFAULT BANKRUPTCY, ETC.: If the Lessee shall make any assignment for the
benefit of creditors, or shall be adjudged bankrupt, or if a receiver is appointed for the
Lessee or Lessee’s assets, or any interest under this Lease, and if the appointment of
the receiver is not vacated within thirty (30) days, or if a voluntary petition is filed under
Section 18(a) of the Bankruptcy Act by the Lessee, then and in any event, the City
may, upon giving the Lessee thirty (30) days’ notice, terminate this lease.
22. NONDISCRIMINATION: The Lessee, Lessee’s personal representatives, successors
in interest, and assigns, as a part of the consideration hereof, does hereby covenant
and agree as a covenant running with the land that:
(a) No person on the grounds of race, color, or national origin shall be excluded
from participation in, denied the benefits of, or be otherwise subjected to
discrimination in the use of said shore fishery:
23. PARTIAL INVALIDITY: If any term, provision, condition, or part of this Lease is
declared by a court of competent jurisdiction to be invalid or unconstitutional, the
remaining terms, provisions, conditions, or parts shall continue in full force and effect
as though such declaration was not made.
Page 90
SHORE LEASE FISHERY – Laura D. Maccabee
3.29-acre portion of Tidelands Survey No. 272 LESSOR: _____
LESSEE: _____
5
24. MODIFICATION: No lease may be modified orally or in any manner other than by an
agreement in writing, signed by all parties in interest or their successors in interest.
Any such modification shall require Council approval.
25. WARRANTY: The City does not warrant that the property which is the subject of this
Lease is suited for the use authorize herein, and no guarantee is given or implied that
it shall be profitable or suitable to employ he property to such use.
26. RIGHT TO ADOPT RULES: The City reserves the right to adopt, amend, and enforce
reasonable rules and regulations governing the demised premises and the public
areas and facilities used in connection therewith. Except in cases of emergency, no
rule or regulation hereafter adopted or amended by the City shall become applicable
unless Lessee has been given thirty (30) days’ notice of adoption or amendment
thereof.
27. NON-LIABILITY: The City shall not be liable to Lessee for any diminution or deprivation
of possession, or of Lessee’s right hereunder, on account of the exercise of any such
right or authority as provided in this or the preceding section, nor shall Lessee be
entitled to terminate the whole or any portion of the leasehold estate herein created,
by reason of the exercise of such rights or authority, unless the exercise thereof shall
so interfere with Lessee’s use and occupancy of the leasehold estate as to constitute
a termination in whole or in part of this lease by operation of law in accordance with
the laws of the State of Alaska and of the United States made applicable to the states.
28. COMPLIANCE WITH LAWS:
(a) Lessee shall observe, obey, and comply with all applicable laws, ordinances, rules,
and regulations of the Federal, State, Borough, or City governments or of any other
public authorities now or hereafter in any manner affecting the leased premises.
(b) Lessee agrees to hold the City financially harmless:
(1) From the consequences of any violation of such laws, ordinances, and/or
regulations; and
(2) From all claims for damages on account of injuries, death, or property damage
resulting from such violation.
(c) Lessee further agrees it will not permit any unlawful occupation, business, or trade
to be conducted on said premises or any use to be made thereof contrary to any
law, ordinance, or regulation as aforesaid with respect thereto, including zoning
ordinances, rules, and regulations.
29. CONDEMNATION: In the event the leased premises or any part thereof shall be
condemned and taken for a public or a quasi-public use, then upon payment of any
award or compensation arising from such condemnation, there shall be such division
of the proceeds, such abatement in rent payable during the term or any extension of
the term hereof, and such other adjustments as the parties may agree upon as being
just and equitable under all the circumstances.
Page 91
SHORE LEASE FISHERY – Laura D. Maccabee
3.29-acre portion of Tidelands Survey No. 272 LESSOR: _____
LESSEE: _____
6
If the City and lessee are unable to agree within thirty (30) days after such an award
has been paid into Court, upon what division, annual abatement in rent, and other
adjustments are just and equitable, the disputes shall be determined by arbitration.
30. PROTECTION OF SUBLESSEES: To protect the position of any sublessee(s)
hereafter obtaining any property interests in the leasehold estate granted by the
Lessee hereunder, the City agrees that in the event of the cancellation, termination,
expiration, or surrender of this Lease (the ground lease), the City will accept the
sublessee, its successors and assigns, as its Lessee for a period equal to the full
unelapsed portion of the term of the sublease, including any extensions or renewals
thereof, not exceeding the term of this Lease, upon the same covenants and conditions
therein contained, to the extent that said covenants and conditions are not inconsistent
with any of the terms and conditions of this Lease, provided such Sublessee shall
make full and complete attornment to the City for the balance of the term of such
sublease so as to establish direct privity of estate and contract between the City and
the Sublessee with the same force and effect as though such sublease was originally
made directly between the City and such Sublessee; and further provided such
Sublessee agrees to comply with all the provisions of the ground lease.
31. SUCCESSORS IN INTEREST: This Lease shall be binding upon and shall inure to
the benefit of the respective successors and assigns of the parties hereto, subject to
such specific limitations on assignments as are provided for herein.
32. GOVERNING LAW: This indenture of Lease shall be governed in all respects by the
laws of the State of Alaska.
33. NOTICES:
(a) Any notices required by this Lease shall be in writing and shall be deemed to be
duly given only if delivered personally or mailed by certified or registered mail in a
prepaid envelope addressed to the parties of the address set forth in the opening
paragraph of this lease unless such address has been changed pursuant to sub-
paragraph (b) hereafter, and in that case shall to the most recent address so
changed. Any notice so mailed shall be deemed delivered on the date it is
deposited in a U.S. general or branch post office.
The City shall also mail a copy of any notice given to the Lessee, by registered or
certified mail, to any leasehold lender (mortgage, beneficiary of a deed of trust,
security assignee) who shall have given the City notice of such mortgage, deed of
trust, or security assignment.
(b) Any such addresses may be changed by an appropriate notice in writing to all other
parties affected provided such change of address is given to the other parties by
the means outlined in paragraph (a) above at least fifteen (15) days prior to the
giving of the particular notice in issue.
Page 92
SHORE LEASE FISHERY – Laura D. Maccabee
3.29-acre portion of Tidelands Survey No. 272 LESSOR: _____
LESSEE: _____
7
34. ENTRY AND RE-ENTRY: In the event that the Lease should be terminated as
hereinbefore provided, or by summary proceedings or otherwise, or in the event that
the demised lands or any part thereof should be abandoned by the Lessee during said
term, the City or its agents, servants, or representatives may, immediately or any time
thereafter, re-enter, and resume possession of said lands or such part thereof and
remove all persona and property therefrom, either by summary proceedings or by a
suitable action or proceeding at law without being liable for any damages therefor. No
re-entry by the City shall be deemed an acceptance of a surrender of the lease.
35. RETENTION OF RENTAL: In the event that the Lease should be terminated because
of any breach by the Lessee as herein provided, the rental payment last made by the
Lessee shall be retained by the City as partial or total liquidated damages for said
breach.
36. WRITTEN WAIVER: The receipt of rent by the City with knowledge of any breach of
the Lease by the Lessee, or any default on the part of the Lessee in observance or
performance of any of the conditions or covenants of the Lease, shall not be deemed
to be a waiver of any provisions of the Lease. No failure on the part of the City to
enforce any covenant or provision therein contained, nor any waiver of any right
thereunder by the City, unless in writing, shall discharge or invalidate such covenants
or provisions, or affect the right of the City to enforce the same in the event of any
subsequent breach or default.
The receipt, by the City, of any rent or any other sum of money after the termination,
in any manner, of the term therein demised, or after the giving by the City of any notice
thereunder to effect such termination, shall not reinstate, continue, or extend the
resultant term therein demised, or destroy, or in any manner impair the efficacy of any
such notice of termination as may have been given thereunder by the City to the
Lessee prior to the receipt of any such sum of money or other consideration, unless
so agreed to in writing and signed by the City.
37. ZONING LAWS: Leased tidelands and shore fishery lands shall be utilized in
accordance with the building and zoning ordinances and rules and regulations of the
City. Failure to do so shall constitute a default.
38. PERSONAL USE OF MATERIALS: All coal, oil, gas, and other minerals and all
deposits of stone or gravel valuable for extraction or utilization and all materials subject
to Title II, Division I, Chapters 4, 5, and 6 of the Alaska Administrative Code are
excepted from the operation of a surface Lease. Specifically, the Lessee of the surface
rights shall not sell or remove for the use elsewhere any timber, stone, gravel, peat
moss, topsoil, or any other material valuable for building or commercial purposes;
provided, however, that material required for the development of the leasehold may
be used if its use is first approved by the City Manager.
39. MUTUAL CANCELLATION: Leases in good standing may be cancelled in whole or in
part at any time upon mutual written agreement by Lessee and the City Council.
Page 93
SHORE LEASE FISHERY – Laura D. Maccabee
3.29-acre portion of Tidelands Survey No. 272 LESSOR: _____
LESSEE: _____
8
40. UNLAWFUL USE PROHIBITED: Lessee shall not allow the leasehold premises to be
used for an unlawful purpose.
41. APPROVAL OF OTHER AUTHORITIES: The issuance by the City of leases does not
relieve the Lessee of responsibility of obtaining licenses or permits as may be required
by duly authorized Borough, State, or Federal agencies.
42. PREFERENCE RIGHT TO RE-LEASE: A Lessee under an existing lease shall, upon
the expiration or the termination by mutual agreement of said Lease, be allowed a
preference right to re-lease those lands previously leased by him if all other sections
of the Kenai Municipal Code are complied with. Re-leasing will not necessarily be
under the same terms and conditions as the prior lease. When the lease is offered to
the preference right holder, the preference right holder shall exercise the right within
thirty (30) calendar days after said lease is offered by the City. Failure to do so shall
result in forfeiture and cancellation of the preference right. No preference right shall
inure to a Lessee whose lease has been terminated by cause.
IN WITNESS WHEREOF the parties hereto have hereunto set their hands, the day
and year stated in the individual acknowledgements below.
LESSOR:
CITY OF KENAI
BY: __________________________________________________
Terry Eubank Date
City Manager
LESSEE:
LAURA D. MACCABEE
BY: __________________________________________________
Laura D. Maccabee Date
Page 94
Sponsored by: Administration
New Text Underlined; [DELETED TEXT BRACKETED]
CITY OF KENAI
RESOLUTION NO. 2026-28
A RESOLUTION APPROVING AN AUTO AID AGREEMENT AND SUPPORTING OPERATIONAL PLAN
WITH THE KENAI PENINSULA BOROUGH FOR EXCHANGE OF PERSONNEL AND EQUIPMENT
RESPONSE TO STRUCTURE FIRES.
WHEREAS, the City of Kenai Fire Department, Central Emergency Services and Nikiski Fire Service
Area have an existing Auto Aid Agreement dated 2020; and,
WHEREAS, changes to provided auto-aid staffing and equipment require updates to the agreement; and,
WHEREAS, the agencies involved in these Agreements share the common goal of providing the most
efficient and timely emergency services possible; and,
WHEREAS, the agencies all provide some form of fire protection and/or emergency medical services
within their respective boundaries; and,
WHEREAS, to provide greater life and safety coverage, the agencies desire to work cooperatively to
allow for more efficient and wider coverage within their areas of service; and,
WHEREAS, to accomplish this, the agencies desire to provide the personnel and equipment necessary
in the form of automatic aid; and,
WHEREAS, the goal of these Agreements is to outline the procedures for carrying out an automatic aid
response in the event of a structure fire; and,
WHEREAS, it is in the best interest of the City of Kenai to update and authorize the City Manager and
Fire Chief to enter into a new Auto Aid Agreement and supporting Operational Plan with the Kenai
Peninsula Borough Fire Agencies of Central Emergency Services and Nikiski Fire Service Area.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA:
Section 1. That the Kenai City Council approves the Auto Aid Agreement and supplemental
Operational Plan between the City of Kenai Fire Department, Central Emergency Services and Nikiski
Fire Service Area.
Section 2. That the Kenai City Manager and Kenai City Fire Chief are authorized to enter into an
Auto Aid Agreement as attached with Kenai Peninsula Borough Fire Agencies of Central Emergency
Services and Nikiski Fire Service Area. The City Manager and Fire Chief are further authorized to make
and approve operational amendments to the Agreement and Plan as necessary without further Council
action.
Section 3. That this Resolution takes effect immediately upon passage.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 22ND DAY OF APRIL, 2026.
___________________________________
Henry H. Knackstedt, Mayor
Page 95
Resolution No. 2026-28
Page 2 of 2
New Text Underlined; [DELETED TEXT BRACKETED]
ATTEST:
___________________________________
Michelle M. Saner, MMC, City Clerk
Page 96
MEMORANDUM
TO: Mayor Henry Knackstedt and Kenai City Council
THROUGH: Terry Eubank, City Manager
FROM: Jay Teague, Fire Chief
DATE: April 09, 2026
SUBJECT: Resolution 2026-28 - Approving an Auto Aid Agreement and Supporting
Operational Plan with the Kenai Peninsula Borough for Exchange of
Personnel and Equipment Response to Structure Fires.
Over the past year the Kenai Fire Department has collaborated with Chiefs from Central
Emergency Services (CES), Nikiski Fire Department (NFD), as well as the City’s and Borough’s
attorneys to revise our Auto Aid Agreement and Operations Plan to support that Agreement. This
Agreement and Operational Plan are critical in providing guidelines for response to structure fires
as set out in National Fire Protection Association (NFPA) and from the Insurance Services Office
(ISO).
A change in the operational plan was made where each agency will provide (3) personnel if
staffing allows on auto-aid responses versus (2) personnel as outlined in the previous version of
the operational plan.
Station staffing and apparatus were evaluated and discussed specifically for changes from the
previous Agreement.
Language was changed to be consistent in both the Auto Aid Agreement, as well as the
Operational Plan to the Auto Aid Agreement.
Our partnership in providing responses to each other provides additional personnel and staffing,
which in turn, improves the overall capabilities of each department. Your consideration in
approving this Resolution is greatly appreciated.
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Page 103
KENAI CITY COUNCIL – REGULAR MEETING
APRIL 01, 2026 – 6:00 P.M.
KENAI CITY COUNCIL CHAMBERS
210 FIDALGO AVE., KENAI, AK 99611
MAYOR HENRY H. KNACKSTEDT, PRESIDING
City of Kenai Council Meeting Page 1 of 6
April 01, 2026
MINUTES
A. CALL TO ORDER
A Regular Meeting of the Kenai City Council was held on April 1, 2026, in City Hall Council Chambers,
Kenai, AK. Mayor Knackstedt called the meeting to order at approximately 6:00 p.m.
1. Pledge of Allegiance
Mayor Knackstedt led those assembled in the Pledge of Allegiance.
2. Roll Call
There were present:
Henry Knackstedt, Mayor Victoria Askin, Vice Mayor
Sovala Kisena Bridget Grieme
Deborah Sounart Glenese Pettey
Phil Daniel
A quorum was present.
Also in attendance were:
**Josh Bolling, Student Representative
Lee Frey, Acting City Manager
Scott Bloom, City Attorney
David Swarner, Finance Director
Kevin Buettner, Planning Director (remote participation)
Ryan Coleman, Police Sergeant
Shellie Saner, City Clerk
3. Agenda and Consent Agenda Approval
MOTION:
Vice Mayor Askin MOVED to approve the agenda and consent agenda. Council Member Pettey
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
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.
[Clerk’ Note: Mayor Knackstedt presented the Sexual Assault Awareness Month proclamation and the
proclamation in recognition of Aiden Cole.]
Page 104
City of Kenai Council Meeting Page 2 of 6
April 01, 2026
B. SCHEDULED ADMINISTRATIVE REPORTS
1. Public Safety Building / Challenger Center Update, K+A dsignstudios, Principal Architect Chris
Parker.
Chris Parker, Principal Architect for K+A dsignstudios, provided a presentation outlining facility options
for police, fire, and dispatch; options included renovations of the existing public safety building and
relocation scenarios to the Challenger Center; current facility conditions, limited space, and major
deficiencies were reviewed; conceptional cost estimates for the options were provided.
There was discussion regarding cost drivers, site considerations, traffic and safety impacts and projected
timelines.
C. SCHEDULED PUBLIC COMMENTS - None.
D. UNSCHEDULED PUBLIC COMMENTS
Doug Hayman, Principal of Connections Homeschool addressed the Council regarding a proposed
expansion and consolidation of homeschool services into a unified hybrid program, including integration of
Career Technical Education (CTE) opportunities and the potential use of the Challenger Center.
E. PUBLIC HEARINGS
1. 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)
MOTION:
Vice Mayor Askin MOVED to enact Ordinance No. 3509-2026. Council Member Sounart SECONDED
the motion.
Mayor Knackstedt opened the floor for public comment.
Briar Oden thanked the Council for considering this grant and read a letter of thanks from Triumvirate
Theatre President, Joe Rizzo.
There being no one else wishing to be heard, the public comment period was closed.
VOTE:
YEA: Kisena, Sounart, Knackstedt, Daniel, Grieme, Askin, Pettey
NAY: None
**Student Representative Bolling: Yea
MOTION PASSED.
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)
MOTION:
Vice Mayor Askin MOVED to enact Ordinance No. 3510-2026. Council Member Sounart SECONDED
the motion.
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City of Kenai Council Meeting Page 3 of 6
April 01, 2026
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 Administration requested postponement to May 6, 2026 to allow time for the Planning
and Zoning Commission to review and make recommendation to Council.
MOTION:
Vice Mayor Askin MOVED to postpone Ordinance No. 3510-2026 to the May 6, 2026 City Council
Meeting. Council Member Sounart SECONDED the motion.
UNANIMOUS CONSENT was on the motion to postpone.
VOTE: There being no objection; SO ORDERED.
3. Resolution No. 2026-17 - Authorizing a Contract Award for the 2026 Water Treatment
Pump House Construction. (Administration)
MOTION:
Vice Mayor Askin MOVED to adopt Resolution No. 2026-17. Council Member Sounart SECONDED the
motion.
Mayor Knackstedt opened the floor for public comment. There being no one wishing to be heard, the
public comment period was closed.
It was reported four bids were received for construction of a new pump house to include a backup
generator and some water mains to help with supply; the project was funded by a $2.7 million of grant
funds received from the State, the remaining funds would come from the utility fund.
Clarification was provided that the state-wide company awarded had an office on the Kenai Peninsula;
and the bids received were very competitive.
UNANIMOUS CONSENT was requested.
VOTE: There being no objection; SO ORDERED.
F. MINUTES
1. *Regular Meeting of March 18, 2026. (City Clerk)
2. *Special Meeting of March 25, 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 - Authorizing a Memorandum of Agreement with Greatland Consulting and
Training LLC for the use of the Alaska Regional Fire Training Facility. (Administration)
Approved by the consent agenda.
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)
Introduced by the consent agenda and Public Hearing set for April 22, 2026.
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City of Kenai Council Meeting Page 4 of 6
April 01, 2026
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)
Introduced by the consent agenda and Public Hearing set for April 22, 2026.
5. Discussion/Action: Scheduling a Budget Work Session. (Administration)
The Budget Work Session was scheduled for May 2, 2026.
I. COMMISSION / COMMITTEE REPORTS
1. Council on Aging Commission
No report, next meeting April 9, 2026.
2. Airport Commission
No report, next meeting April 9, 2026.
3. Parks and Recreation Commission
No report, next meeting April 2, 2026.
4. Planning and Zoning Commission
Council Member Kisena reported on the March 25, 2026 meeting, next meeting April 29, 2026.
5. Beautification Commission
No report, next meeting April 14, 2026.
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.
Mayor Knackstedt reported on the following:
• Provided an update on interest and directions to explore options to keep local pools open.
• Attending the March 26, 2026 “March for Meals” fundraiser at the Senior Center and recognized
staff and volunteers for their efforts.
• Attending the Hospice of the Central Peninsula fundraiser on March 27, 2026.
• Thanked the Administration for the draft City of Kenai Street Design, noting initial review was
positive.
• Announced participation with the City Clerk on April 8, 2026 during the Sound Off program to
discuss the upcoming Special Election.
• Reminded everyone the April 15, 2026 regular meeting was rescheduled to April 22, 2026.
K. ADMINISTRATION REPORTS
1. City Manager - Acting City Manager Frey reported on the following:
• Staffing update: Kurt Brower, Lead Equipment Operator would be retiring after 11-years of
service; new Police Despatcher Gracie Davis would begin in April; ongoing recruitment for
police officer, part time janitor, and seasonal positions.
• Second grant application to support direct flight services between Kenai Peninsula and Seattle
were underway.
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City of Kenai Council Meeting Page 5 of 6
April 01, 2026
• Street design standards have been released and are available on the City website; an open
house would be held on April 13, 2026 from 5:30 p.m. - 7:30 p.m.; and may be scheduled for
Council adoption following public input.
• Increased instances of frozen water services and encouraged residents to keep a steady
trickle to prevent freezing.
• Hydrant flushing would begin in April and advised residents to run water until clear if
discoloration occurs during hydrant flushing.
• State of the City was scheduled for April 15, 2026 during the Chamber Luncheon.
• Annual City of Kenai Community Egg hunt was scheduled for April 4, 2026.
2. City Attorney - No report.
3. City Clerk - City Clerk Saner reported on the following:
• Absentee Voting Office hours; and the location and hours of the Polling locations for the
Special Election.
L. ADDITIONAL PUBLIC COMMENTS
1. Citizen Comments (Public comments limited to (5) minutes per speaker)
Danielle Lopez, Cultural Center Coordinator for the Kenai Chamber of Commerce and Visitor Center
provided an update on current activities at the Chamber.
2. Council Comments
Student Representative Bolling congratulated Bradley Morrison on his first-place win during the Skills
USA - Welding; the boys and girls basketball teams on their strong performances at the 3A State
tournament; the Kenai Central High School cheerleading team for their performance and placement in
overall State; and Aiden Cole as the winner of the Alaska State Spelling Bee Champion.
Council Member Pettey congratulated Aiden Cole.
Council Member Daniel reminded everyone of the importance of voting in the upcoming Special Election.
Vice Mayor Askin noted the improved weather; reported attending the Meals on Wheels fundraiser and
the Hospice Fundraiser; and congratulated the local students on their achievements.
Council Member Grieme reminded everyone the importance of voting in the upcoming Special Election
and reviewing the issues prior to voting.
Council Member Kisena congratulated the local students on their achievements; the 12U KPHA Girls
team for becoming the first all-girl team to win the co-ed State Tournament; and he congratulated the
12U KPHA Girls team coaches, noting that three of the four coaches were women.
Council Member Sounart reported attending the Employee Appreciation Dinner, noting she enjoyed it
very much; and she reminded everyone of the importance of participating in local elections.
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)].
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City of Kenai Council Meeting Page 6 of 6
April 01, 2026
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 take place in executive session.
The Executive Session will include Mayor Gabriel and City Council Members.
Council Member Sounart SECONDED the motion.
UNANIMOUS CONSENT was requested.
VOTE: There being no objection; SO ORDERED.
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 7:16 p.m. and reconvened into regular session at 8:45
p.m.]
N. PENDING ITEMS - None.
O. ADJOURNMENT
P. INFORMATIONAL ITEMS
1. David Martin - Kenai Area Pools
There being no further business before the Council, the meeting was adjourned at 8:45 p.m.
I certify the above represents accurate minutes of the Kenai City Council meeting of April 1, 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.
Page 109
KENAI CITY COUNCIL – SPECIAL MEETING
APRIL 4, 2026 – 5:00 P.M.
KENAI CITY COUNCIL CHAMBERS
210 FIDALGO AVE., KENAI, AK 99611
MAYOR HENRY H. KNACKSTEDT, PRESIDING
City of Kenai Council Meeting Page 1 of 2
April 8, 2026
MINUTES
A. CALL TO ORDER
A Special Meeting of the Kenai City Council was held on April 8, 2026, 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 Victoria Askin, Vice Mayor
Sovala Kisena Bridget Grieme
Phil Daniel Deborah Sounart
A quorum was present.
Absent:
Glenese Pettey
3. Agenda Approval
MOTION:
Vice Mayor Askin MOVED to approve the agenda. Council Member Sounart 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. 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 Sounart SECONDED the motion.
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City of Kenai Council Meeting Page 2 of 2
April 8, 2026
MOTION:
Vice Mayor Askin MOVED to reconvene into regular session. Council Member Sounart 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 6:48
p.m.]
C. NEW BUSINESS
[Clerk’s Note: No amendments were proposed or requested for any of the three Council employee agreements;
therefore, no actions were taken on the Action/Approval items.]
1. Action/Approval - Amending an Employee Agreement between the City of Kenai and City
Attorney, Scott Bloom. (Knackstedt)
2. Action/Approval - Amending an Employee Agreement between the City of Kenai and City
Manager, Terry Eubank. (Knackstedt)
3. Action/Approval - Amending an Employee Agreement between the City of Kenai and City
Clerk, Michelle Saner. (Knackstedt)
D. ADJOURNMENT
There being no further business before the Council, the meeting was adjourned at 6:49 p.m.
I certify the above represents accurate minutes of the Kenai City Council Special meeting of April 8, 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.
Page 111
PAYMENTS OVER $35,000.00 WHICH NEED COUNCIL RATIFICATION
COUNCIL MEETING OF: APRIL 22, 2026
VENDOR DESCRIPTION DEPARTMENT ACCOUNT AMOUNT
PERS PERS VARIOUS LIABILITY 113,987.19
ENSTAR GAS USAGE VARIOUS UTILITIES 41,502.63
PREMERA MARCH PREMIUM VARIOUS INSURANCE 218,093.54
HOMER ELECTRIC ELECTRIC USAGE VARIOUS UTILITIES 125,919.31
Page 112
MEMORANDUM
TO: Mayor Knackstedt and Council Members
THROUGH: Shellie Saner, City Clerk
FROM: Logan Parks, Deputy City Clerk
DATE: April 3, 2026
SUBJECT: Action/Approval - Non-Objection to the Transfer of Ownership of a
Marijuana Product Manufacturing Facility License from Transferor Herban
Extracts, LLC to Transferee Lady Gray, LLC DBA Herban Extracts - License
No. 14432.
An application was submitted to the Alcohol and Marijuana Control Office (AMCO) for Transfer of
Ownership by the following establishment:
Transferor: Herban Extracts, LLC
D/B/A: Herban Extracts, LLC
Physical Address: 14927 Kenai Spur Highway, Kenai, AK 99611
License Type: Marijuana Product Manufacturing Facility
License No. 14432
Transferee: Lady Gray, LLC
D/B/A: Herban Exracts, LLC
Physical Address: 14927 Kenai Spur Highway, Kenai, AK 99611
License Type: Marijuana Product Manufacturing Facility
License No. 14432
The administrative review of application has been completed in accordance with KMC 2.10.010
and it has been determined that the applicant has met all obligations to the City, as established
within City code. With the approval of Council, a letter of non-objection to the Transfer of
Ownership will be forwarded to AMCO and the applicant.
Your consideration is appreciated.
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the applicant to show to the board’s satisfaction that the requirements of the local government have
been met before the director issues the license.
3 AAC 306.010, 3 AAC 306.080, and 3 AAC 306.250 provide that the board will deny an application for a
marijuana establishment license if the board finds that the license is prohibited under AS 17.38 as a
result of an ordinance or election conducted under AS 17.38 and 3 AAC 306.200, or when a local
government protests an application on the grounds that the proposed licensed premises are located in a
place within the local government where a local zoning ordinance prohibits the marijuana
establishment, unless the local government has approved a variance from the local ordinance.
This application will be in front of the Marijuana Control Board at our April 15th and 16th 2026, meeting.
Sincerely,
Kevin Richard, Director
amco.localgovernmentonly@alaska.gov
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Alaska Marijuana Control Board
Form MJ-17c: License Transfer Application
[Form MJ-17c] (rev 03/21/2024) Page 2 of 4
Section 3 – Entity Ownership Information
This section must be completed by any entity, including a corporation, limited liability company (LLC), partnership, or limited
partnership, that is applying for a license. Sole proprietors should skip to Section 4. If any entity official is another entity, you must
include the AK Entity # of that entity in the Entity Official Name field, attach a separate completed copy of this page that breaks down
the ownership information for that entity, and submit the supplemental documents and fingerprint fees listed on Form MJ-17b
required for each individual entity official. Entity documents must be submitted for each entity listed on this form.
If more space is needed, please attach additional completed copies of this page.
x If the applicant is a corporation, list each officer or director, and owner of any of the corporation’s stock.
x If the applicant is a limited liability company, list each member holding any ownership interest and each manager.
x If the applicant is a partnership or limited partnership, list each partner holding any interest and each general partner.
Entity Official Name:
Title(s): Phone: % Owned:
Email:
Mailing Address:
City: State: ZIP:
Entity Official Name:
Title(s): Phone: % Owned:
Email:
Mailing Address:
City: State: ZIP:
Entity Official Name:
Title(s): Phone: % Owned:
Email:
Mailing Address:
City: State: ZIP:
Entity Official Name:
Title(s): Phone: % Owned:
Email:
Mailing Address:
City: State: ZIP:
Entity Official Name:
Title(s): Phone: % Owned:
Email:
Mailing Address:
City: State: ZIP:
Jamie Tasha Grossl
Manager, Member 100
35555 Kenai Spur Hwy, #255
Soldotna AK 99669
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144 North Binkley Street, Soldotna, AK 99669 | (P) 907-714-2160 | (F) 907-714-2388 | www.kpb.us
Office of the Borough Clerk
Thursday, April 2, 2026
Sent via email: cityclerk@kenai.city
Shellie Saner, City Clerk
City of Kenai
RE: Transfer of Owner Application for Marijuana Product Manufacturing Facility
Business Name : Herban Extracts, LLC
License Location : Kenai/14927 Kenai Spur Highway, Kenai, AK 99611
License No. : 14432
License Type : Marijuana Product Manufacturing Facility
Application Type : Transfer of Owner
Dear Ms. Saner,
This serves to advise that the Kenai Peninsula Borough (KPB) has reviewed the above referenced
application and has no objection to the transfer of name, owner. Pursuant to 3 AAC 306.060(b) the KPB
requests the board continue to impose the following conditions:
1. The marijuana establishment shall conduct their operation consistent with the site plan
submitted to the Kenai Peninsula Borough.
2. There shall be no parking in borough rights-of-way generated by the marijuana
establishment.
3. The marijuana establishment shall remain current in all Kenai Peninsula Borough financial
obligations consistent with KPB 7.30.020(A).
Should you have any questions, or need additional information, please don’t hesitate to let us know.
Sincerely,
Should you have any questions, or need additional information, please don’t hesitate to let us know.
Sincerely,
Michele Turner, CMC
Borough Clerk
cc:
amco.localgovernmentonly@alaska.gov
Page 136
MEMORANDUM
TO: Mayor Knackstedt and Council Members
THROUGH: Terry Eubank, City Manager
THROUGH: Kevin Buettner, Planning Director
FROM: Brandon McElrea, Land Management Analyst
DATE: March 31, 2026
SUBJECT: Action/Approval - Special Use Permit to NILCHIL Solutions, LLC for an Off-
Premise Sign on City Owned Property Described as Tract B, Gusty
Subdivision Addition No. 2 Located at 11631 Kenai Spur Highway.
Jennifer Yeoman, a managing member for NILCHIL Solutions, LLC (NILCHIL Solutions) has
requested a Special Use Permit (SUP) to continue the use of the City-owned property described
as Tract B, Gusty Subdivision Addition No. 2, located at 11631 Kenai Spur Highway, for an off-
premise sign. While off-premise signs are not permitted in any zoning district, the Planning and
Zoning Commission approved Resolution PZ2023-25 granting a Variance Permit to allow an
approximately 75 square foot off-premise sign, not to exceed 18 feet in height. This Council
previously approved an SUP for the requested purpose at the May 7, 2025 Council meeting.
The applicant has requested a start date of May 2, 2026. The proposed permit fee is $500.00 plus
applicable sales tax for one (1) year from May 2, 2026 through May 1, 2027.
Pursuant to Kenai Municipal Code (KMC) Section 22.05.130 Special Use Permits, City Council
may authorize the City Manager to grant special use permits for the temporary use of real property
owned by the City for a period not to exceed one (1) year, without appraisal of the value of the
property or public auction, for any purpose compatible with the zoning of the land, and on such
terms and for such rentals as the Council shall determine.
If the City Council approves the Special Use Permit, The City Manager will be authorized to
execute a Special Use Permit Agreement to allow NILCHIL Solutions to continue the use of the
above-mentioned City-owned property for an off-premise sign for one (1) year.
Thank you for your consideration.
Attachments
Exhibit A - Aerial Map
Resolution PZ2023-25 – Variance Permit for Off-Premise Sign
SUP Agreement
Page 137
EXHIBIT A
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Special Use Permit – NILCHIL Solutions, LLC – 2026 Off-Premise Sign Page 1 of 6
SPECIAL USE PERMIT
The CITY OF KENAI (City), for the consideration, and pursuant to the conditions set out below,
hereby grants to NILCHIL SOLUTIONS, LLC (PERMITTEE), whose address is 51306 Dunes
Road, Kenai Alaska 99611, a Special Use Permit (“Permit”) for an off-premise sign subject to the
requirements and conditions set forth below.
1. PREMISES. Permittee shall have a non-exclusive right to use approximately 75 square
feet of area on a property described as Tract B, Gusty Subdivision Addition No. 2 (11631
Kenai Spur Highway; Parcel ID: 04716002). See attached Exhibit A and refer to Resolution
PZ2023-25 for details of the off-premise sign.
2. TERM. This term of this Permit shall be for 12 months commencing on May 2, 2026 to
May 1, 2027.
3. PERMIT FEES. The Permittee shall be charged an annual permit fee of $500.00 plus
applicable sales tax.
The permit fees must be paid prior to the use of the subject parcel.
Checks, bank drafts, or postal money orders shall be made payable to the City of Kenai and
delivered to the City Hall, 210 Fidalgo Avenue, Kenai, Alaska 99611.
In addition to the permit fee specified above, the Permittee agrees to pay to the appropriate parties
all levies, assessments, and charges as hereinafter provided:
A. Sales tax nor enforced, or levied in the future, computed upon the permit fee
payable in monthly installments whether said fee is paid on a monthly or yearly
basis;
B. All necessary licenses and permits; all lawful taxes and assessments which, during
the term hereof may become a lien upon or which may be levied by the State,
Borough, City, or by any other tax levying body, upon any taxable possessory right
which Permittee may have in or to the Premises by reason of its use or occupancy
or by reason of the terms of this Permit, provided however, that nothing herein
contained shall prevent Permittee from contesting any increase in such tax or
assessment through procedures provided by law.
C. Interest at the rate of eight percent (8%) per annum and penalties of ten percent
(10%) of any amount of money owed under this Special Use Permit which are not
paid on or before the due date.
D. Costs and expenses incidental to this Special Use Permit, including but not limited
to recording costs.
4. USE. The use by the Permittee of the Premises is limited to the purpose of an Off-Premise
Sign. This use is subject to City, Borough, and State laws and regulations and the
reasonable administrative actions of the City for the protection and maintenance of the
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Premises and of adjacent and contiguous lands or facilities. Use of the Premises is subject
to the following conditions:
A. Permittee shall use the Premises only for installing, using and maintaining the
signage described in this Permit, together with such ingress, egress and access
as is necessary or desirable for the construction, installation, use, operation,
maintenance, modification, repair, and replacement of the signage as described in
this Permit.
B. The sign may be further modified or amended without the consent of the City under
this Permit, provided that the proposed modification does not increase the square
footage of the sign. In the event that the proposed modification increases the
square footage of the sign by more than twenty percent (20%), such modification
shall be subject to the approval of the City Manager.
C. The Permittee shall be responsible for the maintenance and operation of the sign.
D. The Permittee shall not sell advertisements for and shall be limited to advertising
businesses located on a property described as Tract A-1, Shadura Subdivision
Nilchil Addition, known as 11595 Kenai Spur Highway (KPB Parcel No. 04703015).
E. The Premises shall not be used to store any equipment or materials.
F. The Permittee shall be responsible, at its sole cost, for designing, procuring,
constructing, installing, repairing, upgrading, operating, and maintaining the sign,
to include, but not limited to utility expenses to service the sign.
G. Upon termination of this Permit, the sign shall remain the property of the Permittee,
and the Permittee shall have the right to remove the sign from the Premises at its
sole costs, and in any event, shall remove the sign if the City requests such
removal. If such sign is removed, the Permittee will have the obligation to repair
any damage to the Premises caused by the removal of the sign at its sole cost.
5. INSURANCE. Permittee shall secure and keep in force adequate insurance, as stated
below, to protect City and Permittee. Where specific limits are stated, the limits are the
minimum acceptable limits. If Permittee’s insurance policy contains higher limits, the City
is entitled to coverage to the extent of the higher limits.
A. Commercial General Liability Insurance, including Premises, all operations,
property damage, personal injury and death, broad-form contractual, with a per-
occurrence limit of not less than $1,000,000 combined single limit. The policy must
name the City as an additional insured.
B. Worker’s Compensation Insurance with coverage for all employees engaged in
work under this Permit or at the Premises as required by AS 23.30.045. Permittee
is further responsible to provide Worker’s Compensation Insurance for any
subcontractor who directly or indirectly provides services to Permittee under this
Permit.
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C. All insurance required must meet the following additional requirements:
i. All policies will be by a company/corporation currently rated “A-” or better
by A.M. Best.
ii. Permittee shall submit to the City proof of continuous insurance coverage
in the form of insurance policies, certificates, endorsements, or a
combination thereof, and signed by a person authorized by the insurer to
bind coverage on its behalf.
iii. Permittee shall request a waiver of subrogation against City from
Permittee’s insurer and the waiver of subrogation, where possible, shall be
provided at no cost to City.
iv. Provide the City with notification at least the 30 days before any
termination, cancellation, or material change in insurance coverage of any
policy required hereunder.
v. Evidence of insurance coverage must be submitted within 30 days of the
effective date of the Special Use Permit. Evidence of insurance coverage
must be submitted to the City prior to any use.
vi. This insurance shall be primary and exclusive of any other insurance
carried by the City of Kenai. This insurance shall be without limitation on
the time within which the resulting loss, damage, or injury is actually
sustained.
6. INDEMNITY, DEFEND, AND HOLD HARMLESS AGREEMENT. The Permittee shall
fully indemnify, hold harmless, and defend the City of Kenai, its officers, agents,
employees, and volunteers at its own expense from and against any and all actions,
damages, costs, liability, claims, losses, judgments, penalties, including reasonable
Attorney’s fees of or for liability for any wrongful or negligent acts, errors, or omissions of
the Permittee, its officers, agents or employees, or any subcontractor under this Permit.
The Permittee shall not be required to defend or indemnify the City for any claims of or
liability for any wrongful or negligent act, error, or omission solely due to the independent
negligence of the City. If there is a claim of or liability for the joint negligence of the
Permittee and the independent negligence of the City, the indemnification and hold
harmless obligation shall be apportioned on a comparative fault basis. Apportionment shall
be established upon final determination of the percentage of fault. If any such
determination is by settlement, the percentage of fault attributed to each party for purposes
of this indemnification provision shall only be binding upon the parties included in the
settlement agreement. “Permittee” and “City” as used in this article include the employees,
agents, officers, directors, and other contractors who are directly responsible, respectively,
for each party. The term “independent negligence of the City” is negligence other than in
the City’s selection, administration, monitoring, or controlling of the Permittee.
7. PERMITTEE’S OBLIGATION TO PREVENT AND REMOVE LIENS. Permittee will not
permit any liens, including mechanic’s, laborer’s, construction, supplier’s, mining, or any
other liens obtainable or available under existing law, to stand against the Premises or
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improvements on the Premises for any labor or material furnished to Permittee or to any
related entity or claimed entity. The Permittee shall have the right to provide a bond as
contemplated by State of Alaska law and contest the validity or amount of any such lien
or claimed lien. Upon the final determination of the lien or claim for lien, the Permittee will
immediately pay any judgment rendered with all proper costs and charges and shall have
such lien released or judgment satisfied at Permittee’s own expense.
8. PERSONALTY. Permittee shall remove any and all personal property, including all
vehicles, from the Premises at the termination of this Permit. Personal property placed or
used upon the Premises and not removed upon termination of this Permit will be removed
and/or impounded by the City. Property removed or impounded by the City may be
redeemed by the owner thereof only upon the payment to the City of the costs of removal
plus a storage fee of $25 per day. The City of Kenai is not responsible for any damage to
or theft of any personalty of Permittee or its customers.
9. FORBEARANCE. Failure to insist upon a strict compliance with the terms, conditions,
and/or any requirement herein contained, or referred to, shall not constitute or be
construed as a waiver or relinquishment of the right to exercise such terms, conditions, or
requirements.
10. TERMINATION, DEFAULT. This Permit may be terminated by either party hereto by
giving 30 days advance written notice to the other party. The City may terminate the Permit
immediately, or upon notice shorter than 30 days, to protect public health and safety. The
City may also terminate this Permit immediately, or upon notice shorter than 30 days, due
to a failure of Permittee to comply with conditions and terms of this Permit, which failure
remains uncured after notice by City to Permittee providing Permittee with a reasonable
time period to correct the violation or breach.
11. NO DISCRIMINATION. Permittee will not discriminate on the grounds of race, color,
religion, national origin, ancestry, age, or sex against any patron, employee, applicant for
employment, or other person or group of persons in any manner prohibited by federal or
State law. Permittee recognizes the right of the City to take any action necessary to
enforce this requirement.
12. ASSIGNMENT. Permittee may not assign, by grant or implication, the whole any part of
this Permit, the Premises, or any improvement on the Premises without the written consent
of the City. Unless the City specifically releases the Permittee in writing, the City may hold
the Permittee responsible for performing any obligation under this permit which an
assignee fails to perform.
13. ASSUMPTION OF RISK. Permittee shall provide all proper safeguards and shall assume
all risks incurred in its activities on the Premises and its exercise of the privileges granted
in this Permit.
14. NO JOINT VENTURE. The City shall not be construed or held to be a partner or joint
venturer of Permittee in the conduct of its business or activities on the Premises.
15. SURVIVAL. The obligations and duties of Permittee under paragraphs 5 and 6 of this
Permit shall survive the cancellation, termination, or expiration of this Permit.
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16. AUTHORITY. By signing this Permit, Permittee represents that is has read this
agreements and consents to be bound by the terms and conditions herein and that the
person signing this Permit is duly authorized by the business to bind the business
hereunder.
NILCHIL SOLUTIONS, LLC CITY OF KENAI
By:____________________________ By:_______________________________
_________________(Name) Date Terry Eubank Date
_________________(Title) City Manager
ACKNOWLEDGMENTS
STATE OF ALASKA )
) ss
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this ____day of ________, 2026, the foregoing instrument was
acknowledged before me by Terry Eubank, City Manager of the City of Kenai, Alaska, an Alaska
home rule municipality, on behalf of the City.
Notary Public for Alaska
My Commission Expires:
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STATE OF ALASKA )
) ss
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this ____day of ________, 2026, the foregoing instrument was
acknowledged before me by ____________________________________________(Name/Title)
of NILCHIL Solutions, LLC, an Alaska limited liability company, on behalf of the company.
Notary Public for Alaska
My Commission Expires:
ATTEST:
Michelle M. Saner, MMC, City Clerk
SEAL:
APPROVED AS TO FORM:
Scott M. Bloom, City Attorney
Page 147
Sponsored by: Administration
New Text Underlined; [DELETED TEXT BRACKETED]
CITY OF KENAI
ORDINANCE NO. 3513-2026
AN ORDINANCE AMENDING KENAI MUNICIPAL CODE CHAPTER 7.15 - PURCHASES AND SALES,
TO REMOVE REQUIREMENTS TO PUBLISH ADVERTISEMENTS IN NEWSPAPERS.
WHEREAS, Kenai Municipal Code for Purchases and Sales of large purchases or professional services
greater than $35,000 requires publishing advertising in newspapers for public notice and distribution;
and,
WHEREAS, The Public Works Department has switched to an online bidding platform, BidExpress, and
is seeing increased public notice and distribution through this service at no additional cost to the City;
and,
WHEREAS, circulation through local newspapers has been significantly reduced and costs for
advertisements are increasing; and,
WHEREAS, KMC 7.15.040 (a) and 7.15.060 (c) contain similar language for newspaper advertisement
requirements; and,
WHEREAS, it is in the best interest of the City to revise these requirements for posting on online bidding
platforms.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, AS
FOLLOWS:
Section 1. Amendment of Section 7.15.040(a) of Kenai Municipal Code: That Kenai Municipal Code,
Section 7.15.040 (a) – Competitive Purchase for Large Purchases, is hereby amended as follows:
(a) Before any purchase of, or contract for, supplies, materials, equipment, or contractual services in
excess of thirty-five thousand dollars ($35,000.00) is made, an invitation to bid shall be published,
a minimum of [TWO (2) TIMES] at least two (2) weeks prior to the date bids are due [IN A NEWSPAPER
OF GENERAL CIRCULATION WITHIN THE CITY] on an online bidding platform available on the City
website. Invitations to bid may also be advertised in other appropriate forums.
Section 2. Amendment of Section 7.15.060 of Kenai Municipal Code: That Kenai Municipal Code,
Section 7.15.060 (c) – Procurement of Professional Services, is hereby amended as follows:
(c) Professional services procured in an amount in excess of thirty-five thousand dollars ($35,000.00)
must be solicited by issuing a request for proposals. The request for proposals shall state, or
incorporate by reference, all specifications and contractual terms and conditions to which a
proposal must respond, and shall state the factors to be considered in evaluating proposals and
the relative importance of those factors. Public notice of a request for proposals shall be published
[A MINIMUM OF TWO (2) TIMES] at least two (2) weeks prior to the date proposals are due [IN A
NEWSPAPER OF GENERAL CIRCULATION WITHIN THE CITY] on an online bidding platform available on
the City website and may be advertised in other appropriate forums. A request for proposals may
be modified or interpreted only in written addenda.
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Ordinance No. 3513-2025
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Section 3. Severability: That if any part or provision of this ordinance or application thereof to any
person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall
be confined in its operation to the part, provision, or application directly involved in all controversy in
which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder
of this title or application thereof to other persons or circumstances. The City Council hereby declares
that it would have enacted the remainder of this ordinance even without such part, provision, or
application.
Section 4. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect 30 days
after enactment.
ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 6TH DAY OF MAY, 2026.
___________________________________
Henry H. Knackstedt, Mayor
ATTEST:
___________________________________
Michelle M. Saner, MMC, City Clerk
Introduced: April 22, 2026
Enacted: May 6, 2026
Effective: June 5, 2026
Page 149
MEMORANDUM
TO: Mayor Knackstedt and Council Members
THROUGH: Terry Eubank, City Manager
FROM: Lee Frey, Public Works Director
DATE: April 14, 2026
SUBJECT: Ordinance No. 3513-2026 - Amending Kenai Municipal Code Chapter 7.15
- Purchases and Sales, to Remove Requirements to Publish Advertisements
in Newspapers.
Kenai Municipal Code for Purchases and Sales currently requires advertising requests for large
purchases or professional services greater than $35,000 in newspapers at least two times for
public notice and distribution. The Public Works Department has recently changed to using
BidExpress for online bidding and distribution. We have seen an increase in noticing due to this
service and the ability to subscribe to notifications and postings. It is also free to the City and free
for users to access. At the same time, we have seen a decrease in newspaper circulation and an
increase in costs to advertise in the newspaper. We request removal of newspaper noticing
requirements from the Purchases and Sales section of code and addition of posting these
purchases and services through an online bidding platform available through the City website.
It is in the best interest of the City to make these modifications for Kenai Municipal Code and your
support is respectfully requested.
Page 150
Sponsored by: Administration
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CITY OF KENAI
ORDINANCE NO. 3514-2026
AN ORDINANCE INCREASING ESTIMATED REVENUES AND APPROPRIATIONS IN THE GENERAL
FUND AND AIRPORT FUND AND AWARDING A CONTRACT FOR PURCHASE OF FIREFIGHTING
FOAM.
WHEREAS, the Airport and the Fire Department previously budgeted a total of $86,564 for clean out of
fire apparatus, disposal of existing foam and purchase of replacement foam; and,
WHEREAS, additional funding is need to complete this project with costs for decontamination of
apparatus costing $18,883.80, disposal of existing foam totaling $,27,584.10 and the purchase of new
foam totaling $52,294.80 for a total project cost of $98,762.70; and,
WHEREAS, an additional $6,208.56 is needed for the Airport Airfield Department and an additional
$5,990.14 for the Fire Department; and,
WHEREAS, an Invitation to Bid was released on March 24, 2026 with bids due on April 9, 2026 for the
2026 Fire Fighting Foam purchase; and,
WHEREAS, two bids were received
Contractor Cost
Municipal Emergency Services $52,294.80
L.N. Curtis and Sons $55,379.40; and,
WHEREAS, Municipal Emergency Services was the lowest bidder with a cost of $52,294.80 for the foam
purchase; and,
WHEREAS, the bids were determined to be responsive and responsible; and,
WHEREAS, it is in the best interest of the City to appropriate an additional $12,198.70 to complete this
project and to award the contract for the purchase of firefighting foam to Municipal Emergency Services;
and,
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, AS
FOLLOWS:
Section 1. That estimated revenues and appropriations in the General Fund – Fire Department are
hereby increased as follows:
General Fund:
Increase Estimated Revenues:
Appropriation of Fund Balance $,5,990.14
Increase Appropriations:
Fire – Professional Services $5,990.14
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Ordinance No. 3514-2026
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Section 2. That estimated revenues and appropriations in the Airport Fund – Airfield are hereby
increased as follows:
Airport Fund:
Increase Estimated Revenues:
Appropriation of Fund Balance $6,208.56
Increase Appropriations:
Airfield – Professional Services $6,208.56
Section 3. That the City Manager is authorized to execute a contract with Municipal Emergency
Services in the amount of $52,294.80 for the purchase of Fire Fighting Foam.
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 6TH DAY OF MAY, 2026.
___________________________________
Henry H. Knackstedt, Mayor
ATTEST:
___________________________________
Michelle M. Saner, MMC, City Clerk
Approved by Finance: _________________
Introduced: April 22, 2026
Enacted: May 6, 2026
Effective: May 6, 2026
Page 152
MEMORANDUM
TO: Mayor Knackstedt and Council Members
THROUGH: Terry Eubank, City Manager
THROUGH: Dave Swarner, Finance Director
THROUGH: Jay Teague, Fire Chief
FROM: Lee Frey, Public Works Director
DATE: April 14, 2026
SUBJECT: Ordinance No. 3514-2026 - Increasing Estimated Revenues and
Appropriations in the General Fund and Airport Fund and Awarding a
Contract for Purchase of Fire Fighting Foam.
The Airport and Fire Department has previously budgeted $86,564 for decontamination of fire
apparatus, disposal of existing PFAS containing foam and purchase of new fire fighting foam.
Through requests for quotes for decontamination of equipment, disposal of foam and an invitation
to bid for purchase of new foam, it has been determined that additional funding in the amount of
$12,198.70 is needed to complete this project with $5,990.14 coming from the General Fund and
$6,208.56 coming from the Airport Fund. The contract for purchase of the new foam was released
for bidding and two bids were received. Bids received are as follows:
Contractor Cost
Municipal Emergency Services $52,294.80
L.N. Curtis and Sons $55,379.40
Municipal Emergency Services was the lowest bid for the contract with a cost of $52,294.80. The
contracts for the decontamination of the fire apparatus and disposal of the existing foam will be
processed through the City Manager.
It is in the best interest of the City to appropriate the additional funding needed for this project and
award the contract for the purchase of the foam to Municipal Emergency Services.
Page 153
Sponsored by: Administration
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CITY OF KENAI
ORDINANCE NO. 3515-2026
AN ORDINANCE INCREASING ESTIMATED REVENUES AND APPROPRIATION IN THE AIRPORT
SNOW REMOVAL EQUIPMENT CAPITAL PROJECT FUND TO TRANSFER RESIDUAL BALANCE
FROM A COMPLETED PROJECT BACK TO THE ORIGINAL FUNDING SOURCE.
WHEREAS, Ordinance No. 3324-2022 appropriated $1,720,000 to the Airport Snow Removal Equipment
Fund for the purchase of a CAT 980 Wheel Loader, Plow Truck and Sander; and,
WHEREAS, Ordinance 3324-2022 allocated the full amount to cover the purchases due to lead times in
excess of 365 days for the equipment; and,
WHEREAS, subsequently the City received a grant from the Federal Aviation Administration in the
amount of $1,179,884, appropriated by Ordinance 3426-2024, for the purchase of the CAT 980 Wheel
Loader, Plow Truck and Sander; and,
WHEREAS, $1,644,376 remains in Airport Snow Removal Equipment Project Funds from these
purchases ; and,
WHEREAS, transfer of the residual $1,644,376 to the Airport Fund, the fund from which the funds
originated, will allow future appropriation of the funds for operations or future capital projects and is in the
best interest of the city.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, AS
FOLLOWS:
Section 1. That estimated revenues and appropriations be increased as follows:
Airport Snow Removal Equipment Capital Project Fund:
Increase Estimated Revenues –
Appropriation of Fund Balance $1,644,376
Increase Appropriations –
Transfer to Airport Fund $1,644,376
Section 2. Severability: That if any part or provision of this ordinance or application thereof to any
person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall
be confined in its operation to the part, provision, or application directly involved in all controversy in
which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder
of this title or application thereof to other persons or circumstances. The City Council hereby declares
that it would have enacted the remainder of this ordinance even without such part, provision, or
application.
Section 3. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect
immediately upon enactment.
ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 6TH DAY OF MAY, 2026.
Page 154
Ordinance No. 3515-2026
Page 2 of 2
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___________________________________
Henry H. Knackstedt, Mayor
ATTEST:
___________________________________
Michelle M. Saner, MMC, City Clerk
Approved by Finance: _________________
Introduced: April 22, 2026
Enacted: May 6, 2026
Effective: May 6, 2026
Page 155
MEMORANDUM
TO: Mayor Knackstedt and Council Members
THROUGH: Terry Eubank, City Manager
FROM: Dave Swarner, Finance Director
DATE: April 10, 2026
Subject: Ordinance 3515-2026 - Increasing Estimated Revenues and Appropriation
in the Airport Snow Removal Equipment Capital Project Fund to Transfer
Residual Balance from a Completed Project Back to the Original Funding
Source.
The purpose of this memo it to recommend the enactment of Ordinance 3445-2024 that will
transfer the remaining balance from a completed project back to the original funding source. This
transfer will allow the residual funds to be appropriated for operations or new capital projects in
the future and fully fund current year capital projects.
Ordinance 3324-2022 allocated the full amount to cover the purchase of a CAT 980 Wheel Loader
and Plow Truck and Sander, due to lead times in excess of 365 days for the equipment. This
also enabled the City to take advantage of the State of Alaska awarded contract (CA2284-21)
which allowed other Alaska political subdivisions to cooperatively purchase from the resulting
contract.
The City subsequently received a grant from the Federal Aviation Administration (FAA) in the
amount of $1,179,884, Ordinance 3426-2024 to utilize for the purchase of the CAT 980 Wheel
Loader and the Plow Truck and Sander.
In total $1,644,376 will be returned to the Airport Fund from the Airport Snow Removal Equipment
Capital Project Fund after the completion of the purchase .With the enactment of the attached
Ordinance , funds will be returned to their original funding source related to the Airport Snow
Removal Equipment project, where they will reside in fund balance until the passage of future
ordinances appropriating the funds for operations or other capital projects.
Your support for the enactment of this Ordinance is respectfully requested.
Page 156
Sponsored by: Administration
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CITY OF KENAI
ORDINANCE NO. 3516-2026
AN ORDINANCE INCREASING ESTIMATED REVENUES AND APPROPRIATIONS IN THE GENERAL
FUND - FIRE DEPARTMENT FOR OVERTIME COSTS IN EXCESS OF BUDGETED AMOUNTS.
WHEREAS, the Kenai Fire Department anticipated a reduction in overtime expenditures following the
hiring of three (3) additional firefighters; and,
WHEREAS, actual operations demonstrated that overtime usage has not decreased to the extent
projected as new staff were hired and trained; and,
WHEREAS, the Fiscal Year 2026 budget did not fully account for overtime obligations required under the
Fair Labor Standards Act (FLSA) and this omission has been included in the FY2027 Draft Budget; and,
WHEREAS, in order to maintain emergency response capacity and ensure public safety for the remainder
of FY2026, supplemental overtime funding is being requested; and,
WHEREAS, it is in the best interest of the City to amend the Fire Department’s personnel budget to reflect
these operational realities and ensure continued delivery of essential emergency services.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, AS
FOLLOWS:
Section 1. That estimated revenues and appropriations be increased as follows:
General Fund:
Increase Estimated Revenues
General Fund, Appropriation of Fund Balance $53,742.00
Increase expenditures –
Fire – Overtime $43,533.41
Fire – PERS 9,577.35
Fire – Medicare 631.24
$53,742.00
Section 2. Severability: That if any part or provision of this ordinance or application thereof to any
person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall
be confined in its operation to the part, provision, or application directly involved in all controversy in
which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder
of this title or application thereof to other persons or circumstances. The City Council hereby declares
that it would have enacted the remainder of this ordinance even without such part, provision, or
application.
Section 3. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect
immediately upon enactment.
ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 6TH DAY OF MAY, 2026.
Page 157
Ordinance No. 3516-2026
Page 2 of 2
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___________________________________
Henry H. Knackstedt, Mayor
ATTEST:
___________________________________
Michelle M. Saner, MMC, City Clerk
Approved by Finance: _________________
Introduced: April 22, 2026
Enacted: May 6, 2026
Effective: May 6, 2026
Page 158
MEMORANDUM
TO: Mayor Knackstedt and Council Members
THROUGH: Terry Eubank, City Manager
THROUGH: Dave Swarner, Finance Director
FROM: Jay Teague, Fire Chief
DATE: April 14, 2026
SUBJECT: Ordinance No. 3516-2026 - Increasing Estimated Revenues and
Appropriations in the General Fund - Fire Department for Overtime Costs in
Excess of Budgeted Amounts.
The Kenai Fire Department anticipated a reduction in overtime expenditures following the hiring
of three (3) additional firefighters. The three additional firefighters came on board in July, mid-
August and September.
Actual operations demonstrated that overtime usage did not decrease to the extend projected
largely due to onboarding and training of new personnel. In addition, the Fiscal Year 2026 budget
did not fully account for overtime obligations required under the Fair Labor Standards Act (FLSA).
This has been addressed in the Fiscal Year 2027 Draft Budget.
I am respectfully requesting supplemental funding to sustain emergency operations for remainder
of this fiscal year.
Page 159
Sponsored by: Administration
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CITY OF KENAI
ORDINANCE NO. 3517-2026
AN ORDINANCE INCREASING ESTIMATED REVENUES AND APPROPRIATIONS IN THE GENERAL
FUND AND AUTHORIZING A CONSULTING AGREEMENT TO EVALUATE NATURAL GAS STORAGE
OPPORTUNITIES ON KENAI MUNICIPAL AIRPORT LANDS.
WHEREAS, the City of Kenai seeks to evaluate competing applications for leasing land for natural gas
storage, including possible use of pore space in depleted reservoirs held by the City for the benef it of the
Airport; and,
WHEREAS, specialized technical expertise is required to assess such opportunities; and,
WHEREAS, Kenai Municipal Code (KMC) 7.15 authorizes the City Manager to procure professional
services costing less than $35,000; and,
WHEREAS, Ordinance 3507-2026 appropriated $30,000 from the Airport Fund for consulting services
related to this evaluation; and,
WHEREAS, the City entered into a professional services agreement with Alaska Marine Power, LLC in
an amount not to exceed $30,000; and,
WHEREAS, the scope of work and hourly billing structure under the agreement are expected to exceed
the original authorized amount; and,
WHEREAS, KMC 7.15.070 (6) permits procurement by direct negotiation when appropriate; and,
WHEREAS, the fee schedule submitted by Alaska Marine Power, LLC has been determined to be fair
and reasonable; and,
WHEREAS, additional appropriation is required to complete the evaluation; and,
WHEREAS, sufficient unassigned fund balance is available in the Airport Fund for this purpose; and,
WHEREAS, it is in the best interest of the City of Kenai and the Kenai Municipal Airport to authorize and
fund these consulting services.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, AS
FOLLOWS:
Section 1. That estimated revenues and appropriations be increased as follows:
Airport Fund:
Increase Estimated Revenues –
Appropriation of Fund Balance $30,000
Increase Appropriations –
Other Buildings and Areas – Professional Services $30,000
Section 2. That the City Manager is authorized to execute a contract with Alaska Marine Power, LLC
in the amount of $30,000 for consulting services.
Page 160
Ordinance No. 3517-2026
Page 2 of 2
New Text Underlined; [DELETED TEXT BRACKETED]
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 6TH DAY OF MAY, 2026.
___________________________________
Henry H. Knackstedt, Mayor
ATTEST:
___________________________________
Michelle M. Saner, MMC, City Clerk
Approved by Finance: _________________
Introduced: April 22, 2026
Enacted: May 6, 2026
Effective: May 6, 2026
Page 161
MEMORANDUM
TO: Mayor Knackstedt and Council Members
FROM: Terry Eubank, City Manager
DATE: April 16, 2026
SUBJECT: Ordinance No. 3517-2026 - Increasing Estimated Revenues and
Appropriations in the General Fund and Authorizing a Consulting Agreement
to Evaluate Natural Gas Storage Opportunities on Kenai Municipal Airport
Lands.
The City has received competing applications to lease City-owned Airport land for natural gas
storage, including the potential use of pore space within depleted reservoirs. These opportunities
could represent a meaningful long-term revenue source for the Kenai Municipal Airport.
Due to the technical complexity of subsurface storage, reservoir capacity, and associated
infrastructure considerations, the City engaged Alaska Marine Power, LLC to provide specialized
consulting services. Ordinance No. 3507-2026 previously appropriated $30,000 for this work, and
the City executed a professional services agreement for that amount.
As the evaluation has progressed, it has become clear that additional analysis is necessary to
fully assess and compare the proposals, including technical feasibility, operational considerations,
and potential value to the City. Because the agreement is structured on an hourly basis, the total
cost is expected to exceed the original authorization.
The proposed ordinance appropriates an additional $30,000 from the Airport Fund unassigned
fund balance to complete this work and authorizes the City Manager to enter into an agreement
for this amount. The consultant’s fee schedule has been reviewed and determined to be fair and
reasonable, and procurement by direct negotiation is permitted under Kenai Municipal Code.
Completing a comprehensive and technically sound evaluation is essential for the City to make
informed decisions regarding natural gas storage opportunities on City-owned Airport lands.
Administration recommends approval of the ordinance increasing estimated revenues and
appropriations in the Airport Fund and authorizing additional funding for consulting services with
Alaska Marine Power, LLC to evaluate natural gas storage opportunities on Kenai Municipal
Airport lands.
Thank you for your consideration.
Page 162
MEMORANDUM
TO: Mayor Knackstedt and Council Members
THROUGH: Terry Eubank, City Manager
FROM: Tyler Best, Parks and Recreation Director
DATE: April 14, 2026
SUBJECT: Action/Approval - Workplan 2026-Parks and Recreation Commission.
The Parks and Recreation Commission met on April 2nd and approved its 2026 workplan goal. It
set 1 goal, and the Administration supports it. The Administration supports the 2026 workplan as
submitted.
Council support is requested.
Page 163
COMMISSION ANNUAL WORK PLAN
Annual Commission Work Plan City of Kenai
INTRODUCTION
This area should include the advisory body’s missions’ statement and include a brief description of the overall purpose of the commission.
Note: Work plans developed by the advisory body will be submitted to the City Council for approval; therefore, it is a good idea to align the goals and objectives with city code, policy and
the City of Kenai Comprehensive Plan.
Instructions: In the space provided below, identify an issue or goals (objective) your commission would like to address in the upcoming year, the information provided
should include plans on how to address those issues. This item should include information regarding additional staff resources and/or community volunteers needed;
funding resources, are funds available in the budget if not are you proposing council include funding in the upcoming budget cycle; and how long is it expected to obtain
the objective. Pease prioritize the objectives of your group with number one (1) being the top priority (objective number).
GOAL OR OBJECTIVE COLLABORATION FUNDING RESOURCES TIME TO COMPLETE
Objective No. Objective: Estimated Time to Complete:
Strategy: (Provide a summary of tasks which need to be done to obtain the objective.)
Narrative: (Describe the benefits to the residents and visitors of the City.)
ThepurposeoftheParksandRecreationCommissionistoadvisetheCouncilandAdministrationonissuesinvolvingtheCitysparksandrecreationalfacilities.
1 Tour of Parks and Facilities 4
Coordinate with the Parks and Recreation Director at a regular commission meeting prior to each tour to determine locations and focus areas. Conduct one spring tour to
review winter impacts and seasonal readiness, and one fall tour to evaluate facility performance and identify maintenance and capital improvement priorities.
Conducting regular tours of City parks, trails, and recreation facilities allows the Parks and Recreation Commission to better understand the condition, use, and needs of
these community asset
2026 Page 164
COMMISSION ANNUAL WORK PLAN
Annual Commission Work Plan City of Kenai
Collaboration: (Who needs to be involved to obtain the objective?)
Funding: (Are funds available, or is funding needed in a future budget?)
The Parks and Recreation Commission will collaborate with the Parks and Recreation Director and department staff to plan and conduct the tours. Prior to each tour, the
Commission and Director will identify which parks, trails, and facilities should be visited and determine the focus areas for review. This collaboration will ensure the tours
align with current operational priorities, maintenance needs, and long-term planning efforts, while providing the Commission with informed insight into the City’s park
system.
N/A
2026 Page 165
MEMORANDUM
TO: Mayor Knackstedt and Council Members
FROM: Terry Eubank, City Manager
DATE: April 15, 2026
SUBJECT: Kenai Central High School Pool Operations and Coordination.
With the adoption of its FY2026 Budget, the Kenai Peninsula School District (KPBSD) Board of
Education indicated that future funding of swimming pools by the School District was unlikely.
Pools were being funded in FY2026 to provide time for alternative operations plans to be
developed. With this information, Council directed the City Manager to explore opportunities for
the City to facilitate the continued operations of the KCHS pool beyond June 30, 2026.
In November 2025 KPBSD Administration hosed a meeting with City Managers and staff from
impacted communities. The result of that meeting was a request for additional information
regarding the cost of pool operations and potential structures for agreements that would meet the
KPBSD needs for future pool operations.
In January 2026 the attached report was presented by the KPBSD Administration to the KPBSD
Board of Education. The report indicates the cost of operating the KCHS pool is $302,388.89
including utilities of $98,812.50, personnel cost of $120,425.00 and average annual maintenance
costs of $83,151.39. The estimated savings to the KPBSD by closing the pool was estimated to
be $247,351.70. The $55,037.19 difference being the estimated cost the KPBSD will incur to
heat the pool building even if the pool is not operating.
Mayor Micciche has hosted two conversation with the Mayors and City Managers from the
impacted communities to discuss municipal interest in the pools remaining open and possible
solutions and structures that might achieve the desired interest.
In addition to meeting with public officials, I have met with members of the Kenai Piranhas Swim
Club to discuss the Club’s interest in continued operations of the KCHS pool and the Club’s
willingness and capacity to participate in a solution.
There are a number of structures which could be used to maintain operations of the KCHS pool
including an entity simply writing the KPBSD a check to offset the District’s cost of operating the
pool to the City contractually taking over full operations of the poll or something in the middle. I
believe a successful structure must include partnerships involving the KPBSD, KPB, users and
the City. Involvement of all stakeholders will be critical to long-term success.
Page 166
Page 2 of 2
I am seeking Council’s direction and authorization to negotiate in this process in order to secure
the continued operations of the KCHS Pool. Negotiations likely need to take place prior to
adoption of the FY2027 City Budget. The Draft Budget presented to Council does not currently
include any City funding for continued operations. A negotiated amount, if any, can be added and
considered prior to adoption of the final budget. I am requesting an executive session to discuss
negotiation strategy and authority on this matter.
Page 167
Page 168
Alaska's economy is driven by maritime activity and its largest industry is oil and gas. Oil
revenues fund nearly 85% of the state budget and the industry employs 31,800 people. Our
waters also produce over 60% of the US's seafood, making it the world's top producer of wild
salmon. Tourism is another major sector, attracting over 1.1 million visitors annually. On the
Kenai Peninsula, the economy is primarily driven by oil and gas development, commercial and
sport fishing, tourism, and maritime industries. Everyone here has a beloved family member or friend
who derives a livelihood from one of these industries.
Alaska hosts over 26,700 U.S. military personnel, including roughly 21,000 to 22,000 active-duty
troops. We also are home to the highest concentration of military veterans per capita in the
United States, with approximately 58,000 to 70,000 veterans comprising about 8%-10% of the
state's population. Navy, Marine Corps, and Coast Guard have challenging swim standards,
with lower standard requirements from Army and Air Force. After thanking our service members for
their duty, inquire about their swim requirements, the answer could surprise you.
Approximately 24% of the population in the Kenai Peninsula Borough is under 20 years old,
comprising roughly 14,000-15,000 children and teenagers based on a total population of nearly
60,000. With a total borough population around 59,843 in 2023, the population of children and
teens (under 20) is considered significant. Another estimate indicates that 18.4% of the population is
under 15, and 10.7% are in the 15-24 age group. Our kids are the reason for this conversation, and
they should be in mind through every decision.
Suicide rates in the Kenai Peninsula Borough are significantly high, with an age-adjusted rate of
27.6 per 100,000 people reflecting the broader, critical mental health crisis in Alaska, which
often ranks among the highest in the U.S..Youth and young adults, specifically those aged
18-24, are at the highest risk, with rates in this group nearly double the national average.
Approximately 7% to 8.2% of the population in the Kenai Peninsula Borough identifies as
American Indian/Alaska Native. Within the Kenai Peninsula tribal health region, the
age-adjusted suicide rate for Alaska Native people was 35.3 per 100,000 during the 2016-2019
period. Participating in sports significantly boosts mental health by reducing stress, anxiety, and
depression while improving mood and self-esteem through endorphin release. Team sports
often provide superior benefits to individual activities by offering social connection, camaraderie,
and a sense of belonging, which can combat isolation.
Swimming is an elite, low-impact cross-training activity that builds cardiovascular endurance,
boosts lung capacity, and strengthens the upper body, core, and legs. The rhythmic, meditative
nature of swimming reduces stress and balances hormones after high-intensity training.Swimming is
excellent for recovery, functioning as a low-impact, active recovery tool that
reduces muscle soreness and speeds up healing. The water's buoyancy removes pressure from
joints and ligaments, making it ideal for rehabilitating injuries. This applies throughout the stages of
life, not just the competitors benefit.
Swimmers often perform higher academically, then transition into successful careers because
the sport fosters highly desirable professional traits, such as extreme discipline, time
management, and resilience. The rigorous, year round training schedules teach young
swimmers how to prioritize tasks and maintain productivity, which translates directly into
professional dedication. These individuals, described as coachable and good leaders, display
valuable professional skills such as the ability to excel in high pressure situations. I can count the
ways this is true in my experience, having met and known the student athletes who grow to become
the nations premier leaders.
Thank you for your attention and consideration to this matter which remains near and dear to me. I
hope we can all work together to preserve what should be considered a large asset to the area.
Ashley Poulin PPST Board President
Page 169
From:Henry Knackstedt
To:Shellie Saner
Subject:Fwd: Kenai Pool
Date:Friday, April 3, 2026 2:34:40 PM
Shellie
Please add the attached email to our next packet.
Henry
---------- Forwarded message ----------
From:
Date: Apr 3, 2026 12:26 PM
Subject: Kenai Pool
To: Henry Knackstedt <HKnackstedt@kenai.city>
Cc:
Kenai Central High School Pool & Swim Programs
Good afternoon, Mr. Mayor.
My name is Dan Poulin, and I am a longtime Alaska resident and Kenai
homeowner. My family chose to live and invest here in Kenai specifically because of
the community resources available to our children—most notably, access to the
Kenai Central High School pool and its affiliated swim programs.
My spouse and I are both USA Swimming Officials, and we are raising three
children who were born and raised on the Kenai Peninsula. Each of them has
benefited directly from this facility, and I want to share how profoundly it has shaped
their academic success, leadership development, and long-term opportunities.
Our oldest child will graduate this May from the United States Military Academy at
West Point, majoring in American Politics. His educational journey began in Kenai
at Kenaitze Head Start. During his K–12 years, he captained athletics teams,
earned state-level music recognition, and graduated at the top of the Connections
Homeschool Program’s Class of 2022.
The Kenai Central pool was a foundational part of his development. He worked
there as a certified lifeguard and swim lesson instructor, served the Peninsula
Piranhas Swim Team as an Area Athlete Representative, and learned
responsibility, discipline, and leadership on that pool deck. Today, he competes at a
national and international level, most recently helping his team earn a Collegiate
Club National Championshipand representing his academy at a world
championship event overseas.
Our second son is currently a student at Kenai Central High School and recently
qualified forUSA Swimming Western Zones, representing Alaska as the only boy
in his age group to reach that level of competition. Our daughter is an Area
Champion at the state level, with aspirations to continue her competitive career in
the same pool that helped launch her brothers beyond Alaska and into the world.
These outcomes did not happen by chance. They resulted from:
A safe, functional school facility
Access to quality programming
Partnerships between the school district, families, and community
Page 170
organizations
And the opportunity for students to grow through athletics, employment, and
mentorship
The Kenai Central High School pool is more than a building. It is a classroom, a
workplace, a training ground, and a pathway to success for students with many
different goals—not just elite athletes, but lifeguards, instructors, team leaders, and
responsible young adults.
I urge the board to recognize the long-term educational and community value of
maintaining and supporting this facility and its programs. Continued investment in
this resource ensures that Kenai can provide meaningful opportunities for students
today—and for generations to come.
Thank you for your time and for your continued commitment to our students and our
community.
Dan Poulin
Page 171
From:Henry Knackstedt
To:Shellie Saner
Subject:Fwd: Urgent Request Regarding Closure of District Pools
Date:Friday, April 3, 2026 3:12:18 PM
Here is another to add to the next meeting.
HK
---------- Forwarded message ----------
From: Erin Sansotta
Date: Apr 3, 2026 2:50 PM
Subject: Urgent Request Regarding Closure of District Pools
To: Henry Knackstedt <HKnackstedt@kenai.city>,Victoria Askin
<vaskin@kenai.city>,Phillip Daniel <pdaniel@kenai.city>,Bridget Grieme
<bgrieme@kenai.city>,Glenese Pettey <gpettey@kenai.city>,Sovala Kisena
<skisena@kenai.city>,Deborah Sounart <DSounart@kenai.city>
Cc:
Erin Sansotta
Soldotna, AK 99669
4/3/26
Dear Members of the City Council,
I am writing to express deep concern regarding the proposed permanent closure of
swimming pools within the Kenai Peninsula Borough School District due to budget
constraints. While I understand the financial pressures facing the district, the
decision to eliminate access to these facilities carries significant consequences for
student safety, academic development, and community well-being.
As a swim family, this issue is deeply personal and has our interest to maintain our
investment. Our immediate family members collectively spend close to 20 hours
each week in the water. All four of our children swim competitively. Beyond the
competition aspect, swimming has been a source of connection, motivation,
discipline and is necessary for their physical and mental health. For my oldest,
swimming is not only a passion but a potential pathway to a college scholarship and
future educational opportunity.
However, our story is just one example of what these programs make possible. The
Page 172
broader impact extends well beyond competitive swimming.
1. Drowning Prevention and Life-Saving Skills
Access to swimming instruction is a critical public safety measure. Drowning
remains the leading cause of death for children ages 1–4 and the second leading
cause of unintentional injury death for children ages 5–14 in the United States.
Formal swimming lessons can reduce the risk of drowning by up to 88% in young
children. Our pools have historically provided these lessons and must continue
doing so.
In a coastal region like the Kenai Peninsula, where lakes, rivers, and ocean access
are part of daily life, removing access to pools directly reduces opportunities for
children to learn these vital skills.
2. Academic and Developmental Benefits
Participation in structured athletic programs like swimming supports academic
success by improving focus, discipline, time management, and resilience. Student-
athletes often demonstrate stronger engagement in school and develop habits that
carry into higher education and career pathways.
For students pursuing collegiate athletics, access to consistent training facilities is
essential. Removing all our pools effectively closes doors for students who rely on
these programs for scholarship opportunities and personal advancement.
3. Mental Health and Emotional Well-Being
Swimming provides a unique and powerful outlet for stress relief, emotional
regulation, and mental health. The consistent, structured environment of swim
practice offers stability and connection.
For many students and community members, time in the water is a key part of
maintaining emotional balance and overall well-being.
4. Community Access, Recreation, and Equity
School pools serve as vital community resources, supporting not only competitive
athletes but also swim lessons, recreational users, and families. Closing these
facilities disproportionately impacts families who cannot afford private access or
travel long distances, creating inequities in access to safety education, recreation,
and health-promoting activities.
5. Consideration of Alternatives
Page 173
Given the profound implications of this decision, I respectfully urge the district and
borough to explore alternatives before pursuing permanent closure for all pools.
Potential options may include:
Partnerships with local organizations or health providers
Grant funding for water safety and drowning prevention programs
Adjusted operational models (seasonal use, reduced hours, or shared staffing)
Community-supported funding initiatives
Spreading responsibility for maintenance needs where it is most logical
Consider a budget that makes it financially reasonable to partner with outside
entity who is willing to run the pools with support from the city
Consider consolidating central peninsula pools instead of full closure
These options may offer a path forward that balances fiscal responsibility with
community need.
The closure of school pools is a decision that directly impacts safety, opportunity,
and quality of life for students and families across the Kenai Peninsula.
For families like ours, these pools represent years of commitment, growth, and
opportunity. For many others, they represent the most basic chance to learn a life-
saving skill that is necessary in the state of Alaska.
I respectfully ask that you consider the implications of this decision and work
collaboratively with the community to identify sustainable solutions that preserve
access to these critical facilities.
Thank you for your time, consideration, and service to our community.
Sincerely,
Page 174
Erin Sansotta
Page 175
From:Henry Knackstedt
To:Shellie Saner
Subject:Fwd: Reasons to keep the pools open
Date:Monday, April 6, 2026 7:22:35 AM
Please include with the others for the next packet.
Henry
Sent from my iPad
Begin forwarded message:
From: Daniel McIntosh
Date: April 5, 2026 at 9:26:51 PM AKDT
To: Henry Knackstedt <HKnackstedt@kenai.city>, Victoria Askin
<vaskin@kenai.city>, Phillip Daniel <pdaniel@kenai.city>, Bridget Grieme
<bgrieme@kenai.city>, Glenese Pettey <gpettey@kenai.city>, Sovala Kisena
<skisena@kenai.city>, Deborah Sounart <DSounart@kenai.city>,
jtauriainen@kpbsd.k12.ak.us, pvadla@kpbsd.org, tdaugharty@kpbsd.k12.ak.us,
ptruesdell@kpbsd.k12.ak.us, sdouthit@kpbsd.k12.ak.us,
kcizek@kpbsd.k12.ak.us, dmacrae@kpbsd.k12.ak.us,
awaddell@kpbsd.k12.ak.us, mvanbuskirk@kpbsd.k12.ak.us,
nsipes@kpbsd.k12.ak.us, rtunseth@kpb.us, kcooper@kpb.us, sgriebel@kpb.us,
lniesen@kpb.us, struesdell@kpb.us, deicher@kpb.us, cecklund@kpb.us,
mhicks@kpb.us, wdunne@kpb.us, pmicciche@kpb.us
Cc: Angie Brennan
Subject: Reasons to keep the pools open
Hello,
My name is Daniel McIntosh. I am a current USA and USMS competitive
swimmer for the Kenai/Soldotna Area. We disagree with these pool closures. The
reasons that we should keep the pools open are because the competitive swimmers
need the pools to stay fit if any athletes qualify for major national or international
events and to train more professional athletes and possible coaches. Even
professional athletes need these pools because it can save lives and prevent
drownings in case of pool and open water emergencies, like rip tides and currents.
Lifeguards and coaches need these pools to help those athletes achieve any
competitive, safety, rehabilitation, or fitness goals. If those pools closed, the loss
of lives in the water would increase, and college swimming recruitments would
decrease. In fact, we, Alaska swimmers, are in progress of reinstating NCAA DII
men's and women's swimming teams at the University of Alaska Anchorage in
Anchorage, Alaska (It is currently a college club). These opportunities and
resources would be taken away if those pools closed for high school swimmers
and the younger swimming generations being recruited for college swimming
whether in or out of Alaska.
Yours Truly,
Daniel McIntosh
Page 176
From:Henry Knackstedt
To:Shellie Saner
Subject:Fwd: An item of important to Kenai
Date:Saturday, April 11, 2026 3:39:35 PM
Please include in our packet with the others. I understand this went to all council members
Henry
---------- Forwarded message ----------
From: j castimore
Date: Apr 10, 2026 8:17 PM
Subject: An item of important to Kenai
To: Henry Knackstedt <HKnackstedt@kenai.city>
Cc:
Dear Henry Knackstedt,
I am concerned about a situation that is about to unfold in Kenai.
Back in the 1970’s we (Kenai) had a Central Swimming Pool
operation at KCHS (Kenai Central High School) and it provided
swimming lessons to All children in third grade from Sterling to
Kasilof to Nikiski. And it was known as the Central Swimming Pool,
with manager Steve Johnson and it was open from 6:30 A.M. until 8
P.M. with a lot of adults using, it Before Work and After Work six
days a week. We have a change to add this valuation asset to
Kenai once again, and the school board will be closing All
swimming pools on the peninsula soon.
Our Ice Rink was started by 12 committee members that saw an
important winter sport to add to our Motels and Restaurants during
those Long winter months, and it is a success today. This Central
Swimming Pool can work, and the current manager Will H. has a
proposal and finance spread sheet that illustrated this. The school
district has a policy that requires all children to learn to swim, so
they could Pay to use our Kenai Central Pool and offset those
costs. Alaska leads the nation in swimming deaths.
Please reach out to these parents and Will Hubler quickly so we
(Kenai community) do not loss this valuable asset in our
community.
Will Hubler (pool Manager) can be contacted at: 907-283-7476
Sincerely,
Jack Castimore, a Kenai resident for the past 48 years.
Page 177
From:Henry Knackstedt
To:Shellie Saner
Subject:Fwd: Support for Public Pool Access in the City of Kenai
Date:Thursday, April 16, 2026 4:52:47 PM
Please add to the other emails.
Henry
---------- Forwarded message ----------
From: Bristol DeMeter
Date: Apr 16, 2026 4:31 PM
Subject: Support for Public Pool Access in the City of Kenai
To: Henry Knackstedt <HKnackstedt@kenai.city>,Victoria Askin
<vaskin@kenai.city>,Phillip Daniel <pdaniel@kenai.city>,Bridget Grieme
<bgrieme@kenai.city>,Glenese Pettey <gpettey@kenai.city>,Sovala Kisena
<skisena@kenai.city>
Cc:
Dear Members of the Kenai City Council,
I am writing as a Kenai Peninsula Borough resident, a homeowner in the City of Kenai, a
lifelong swimmer, and a parent of two young swimmers, ages 6 and 8, to urge you to take
decisive action to preserve and strengthen public pool access in our community.
My husband and I own a home in Kenai and are deeply invested—both financially and
personally—in the long-term strength and livability of this community. We care about the
services and infrastructure that make Kenai a place where families want to live, stay, and
invest.
For that reason, I want to be very clear: we would support an increase in the City of Kenai
mill rate if it is necessary to ensure these pools remain open, well-managed, and accessible
to the public.
My family depends on these facilities. My children are members of the local swim club, and
I swim with the Top of the World Masters Swim Team. In addition, I regularly pay for lap
swim access. We are active, paying users who rely on consistent, year-round availability.
We are not alone—these pools serve a broad cross-section of the community every day, and
with improved management and a stronger community-centered approach, they could serve
even more residents.
This is not just about recreation—it is about safety. Alaska faces some of the highest
drowning rates in the country, particularly among children. In a region surrounded by open
water, access to swim lessons and safe aquatic facilities is essential. Reducing access to
pools directly reduces access to life-saving skills.
It is also about community strength and long-term investment. Public pools support youth
development, physical and mental health, rehabilitation, and social connection. They are a
key factor for families when deciding where to live—and for property owners like us when
deciding where to continue investing.
Page 178
I will be direct: maintaining and improving access to public pools makes Kenai a more
desirable and stable community. Letting these facilities decline or close sends the opposite
signal.
You have an opportunity to step forward, take ownership of this transition, and ensure these
facilities are operated in a way that maximizes access, efficiency, and community benefit.
With thoughtful management and a willingness to invest, these pools can become even
stronger assets than they are today.
I urge you to act now: commit to preserving these facilities, develop a sustainable
operational plan, and ensure they remain open and accessible for the families, residents, and
property owners who depend on them.
Thank you for your time and leadership.
Sincerely,
Bristol DeMeter
Kenai Peninsula Borough Resident & Kenai Homeowner
Page 179
KPBSD Pool
Operations
Financial Overview & Options
Date: January 12, 2026
Page 180
Purpose of Presentation
Review the financial
impacts of operating or
closing district pools
Highlight operating
savings, maintenance
considerations
Clarify maintenance
in-kind funding
Discuss potential options
moving forward
Page 181
Maintenance Costs
4-Year Average Maintenance Costs Includes routine repairs and replacement
of chemical delivery systems, pool deck
flooring, gutter system, pool tiles, grout
caulking, pool locker rooms, pumps, water
filters, heat exchangers, boilers and
heating and ventilation equipment.
Maintenance cost varies year to year
Building and equipment are at different
points in their life cycle
Page 182
Annual Savings From an Empty Pool
Total Estimated Annual Savings:
•$1,158,417.56
•Includes:
•Reduced staffing (Pool Managers paid by KPBSD
General Fund)
•Lower utility usage – still have building space
(KPBSD General Fund)
•Decreased maintenance – less equipment (KPB
In-Kind)
Estimated 2026 Utilities Salary and Benefits Maintenance 4 Year Average Savings
Susan B. (Oil) $26,830.03 $35,791.00 $24,549.95 $87,170.98
Ninilchik (Gas) $22,593.71 $46,254.00 $21,642.60 $90,490.31
Seward (Oil) $42,363.21 $110,169.00 $20,725.05 $173,257.26
Homer (Gas) $56,484.28 $100,964.00 $41,823.37 $199,271.65
SOHI (Gas) $43,775.32 $100,282.00 $13,960.43 $158,017.75
SKYVIEW (Gas) $49,423.75 $97,887.00 $55,547.16 $202,857.90
Kenai (Gas) $43,775.32 $120,425.00 $83,151.39 $247,351.70
$285,245.63 $611,772.00 $261,399.94 $1,158,417.56
To Close General fund - 100 $285,245.63
In-kind $261,399.94
Salary and Benefits $611,772.00
Total Savings $1,158,417.56
Page 183
Annual Costs - KPBSD or other entity (City
/ Borough or Club) of Operating the Pools
Total Estimated Annual Cost:
•$1,517,046.94
•Includes:
•Staffing of pool related activities
•Utility usage for all pool related space
•Maintenance needs will not be paid by KPBSD (KPB In-Kind)
Pool Utility Operations Salary and Benefits Maintenance 4 Year Average Savings
Susan B. (Oil) $60,562.50 $35,791.00 $24,549.95 $120,903.45
Ninilchik (Gas) $51,000.00 $46,254.00 $21,642.60 $118,896.60
Seward (Oil) $95,625.00 $110,169.00 $20,725.05 $226,519.05
Homer (Gas) $127,500.00 $100,964.00 $41,823.37 $270,287.37
SOHI (Gas) $98,812.50 $100,282.00 $13,960.43 $213,054.93
SKYVIEW (Gas) $111,562.50 $97,887.00 $55,547.16 $264,996.66
Kenai (Gas) $98,812.50 $120,425.00 $83,151.39 $302,388.89
$643,875.00 $611,772.00 261,399.94 $1,517,046.94
Operating the pools General fund - 100 $643,875.00
In-kind $261,399.94
Salary and Benefits $611,772.00
Total $1,517,046.94
Page 184
710 – Pool Operations account
Revenue Sources:
Pool User Fees
Building Use fees
Lane Rentals
Donations
Punch Cards
Swim Lessons
Grants – Red Cross
Expenditures:
Chemicals
Lifeguard Payroll
Supplies
Equipment
Diving Boards
Score Boards
Sound Systems
Starting / Timing Systems
ADA Equipment
Operational efficiency Upgrades – VFD
Fund Balance:
Available to address month to month fluctuations
Available to fund equipment replacement
Punch Card Swims – not already used
Page 185
Pool 710 – Combined (7 Pools)
0.00
100,000.00
200,000.00
300,000.00
400,000.00
500,000.00
600,000.00
22-23 23-24 24-25
710 - Pool Revenue vs Ending Balance
Revenue Ending Balance
12/23/25 balance $593,982.99
Page 186
Pool 710 – Skyview
0.00
50,000.00
100,000.00
150,000.00
200,000.00
250,000.00
22-23 23-24 24-25
710 - Pool Revenue vs Ending Balance
Revenue Ending Balance
259 Day Calendar
Pool – 75 x 45 ft Max capacity- 88
3.5ft shallow - 11.6ft deep Water – Well
210,000 gal. Chemtrol -ORP
NO - Diving Boards
1 Lifeguard stand
No - ADA access – Stairs
12/23/25 balance $216,921.57
Page 187
Pool 710 – SOHI
0.00
10,000.00
20,000.00
30,000.00
40,000.00
50,000.00
60,000.00
70,000.00
80,000.00
22-23 23-24 24-25
710 - Pool Revenue vs Ending Balance
Revenue Ending Balance
216 Day Calendar reduced to 206
Pool – 75 ft x 45 ft Max capacity- 79
3.5ft shallow & 13ft deep Water – Metered
210,000 gal. Chemtrol -ORP
2 Low Diving Boards
1 Lifeguard stand
ADA access – Lifts
12/23/25 balance $28,858.74
Page 188
Pool 710 – Seward
0.00
20,000.00
40,000.00
60,000.00
80,000.00
100,000.00
120,000.00
140,000.00
160,000.00
22-23 23-24 24-25
710 - Pool Revenue vs Ending Balance
Revenue Ending Balance
216 Day Calendar reduced to 206 - Operated Summer 24 & 25 (259 days)
Pool – 75 ft x 45 ft Max capacity- 88
3.6 ft shallow & 12 ft deep Water – Flat Rate
180,000 gal. Chemtrol -ORP
1 Low Diving Boards
1 Lifeguard stand
ADA access – Lifts & Stairs
12/23/25 balance $154,578.94
Page 189
Pool 710 – Kenai
0.00
10,000.00
20,000.00
30,000.00
40,000.00
50,000.00
60,000.00
70,000.00
80,000.00
22-23 23-24 24-25
710 - Pool Revenue vs Ending Balance
Revenue Ending Balance
259 Day Calendar
Pool – 75 ft x 45 ft
3.5 ft shallow & 12.6 ft deep Max capacity- 79
175,000 gal. Water – Metered
2 Low Diving Boards Chemtrol -ORP
2 Lifeguard stand
ADA access – Lifts
12/23/25 balance $61,717.41
Page 190
Pool 710 – Homer
0.00
20,000.00
40,000.00
60,000.00
80,000.00
100,000.00
120,000.00
22-23 23-24 24-25
710 - Pool Revenue vs Ending Balance
Revenue Ending Balance
259 Day Calendar
Pool – 75 ft x 45 ft Max capacity- 79
3.6 ft shallow–12.9 ft deep Water – Metered
200,000 gal. Chemtrol -ORP
2 Low Diving Boards
1 Lifeguard stand
ADA access – Lifts & Stairs
12/23/25 balance $85,624.86
Page 191
Pool 710 – Seldovia
0.00
5,000.00
10,000.00
15,000.00
20,000.00
25,000.00
30,000.00
35,000.00
22-23 23-24 24-25
710 - Pool Revenue vs Ending Balance
Revenue Ending Balance
216 Day Calendar reduced to 206
Pool – 25 ft x 50 ft Max capacity- 35
3 ft shallow – 9 ft deep Water – flat rate
59,000 gal. Chemtrol -ORP
No- Diving Boards
Pool Slide
No - Lifeguard stand
No - ADA access –Stairs
12/23/25 balance $36,809.72
Page 192
Pool 710 – Ninilchik
0.00
5,000.00
10,000.00
15,000.00
20,000.00
25,000.00
30,000.00
35,000.00
22-23 23-24 24-25
710 - Pool Revenue vs Ending Balance
Revenue Ending Balance
216 Day Calendar Reduced to 206
Pool – 50 ft x 25 ft Max capacity- 27
3.2 ft shallow – 9.6 ft deep Water – Well
60,000 gal. Chemtrol -ORP
4 lane pool
No - Diving Boards
1 Lifeguard stand
ADA access – Lifts
12/23/25 balance $ 9,471.75
Remaining Donation $21,977.38
Total $31,449.13
Page 193
Fee Structure
Considerations
Increase User Fees to offset cost of
operation either for KPBSD, KPB or other
Entity
•Public Admission Swim Current
Rates
•Lane Rental proposed increase:
•Category B (swim clubs)
•Category C (birthday parties, etc.)
•Lifeguard Fees
•Storage Fees
Page 194
In-Kind Cost Reminder
Important Clarification
•In-Kind contributions come from
Borough budget allocations
•These funds are subtracted from the
total Borough contribution
•The District does not control these funds
•In-Kind dollars do not increase available
district spending.
•Savings would likely be invested into
maintenance into other facilities such as
schools.
Page 195
Pool Operation Scenarios
• District closes pools
• Borough funds pool operations to the
district outside the funding cap
• Another entity such as a city or swim
club assumes full operational responsibility
• Municipalities or another external entity
provide funding to fully offset operating
costs
Page 196
Recommendation
• Close the pool effective June 30, 2026 unless one
of the following occurs:
– The Borough funds pool operations outside the
funding cap
– Municipalities or another external entity provide
sufficient funding to fully offset operating costs
– Another entity such as a city or swim club
assumes full operational responsibility, with no
ongoing KPBSD operational or financial
responsibility
Page 197
Questions
Thank you for your time. Questions and discussion.
Page 198
MEMORANDUM
TO: Mayor Knackstedt and Council Members
FROM: Shellie Saner, Kenai City Clerk
DATE: April 10, 2026
SUBJECT: Amendments to the Candidate Filing Period
With voter approval of Propositions 2026-A and 2026-B, the City of Kenai annual election date
has been amended to occur on the first Tuesday following the first Monday in November. In
consideration of the election occurring later in the year, the Council may wish to consider adjusting
the candidate filing period accordingly.
Currently the City’s candidate filing period is August 1 through August 15 of each year. The Kenai
Peninsula Borough has recently revised their filing period to August 15 through August 31 and
incorporated additional provisions allowing for a one-week withdrawal period following the close
of the filing period.
Additionally, another municipality within the Kenai Peninsula Borough has adopted a candidate
filing period of September 1 through September 15. The Kenai Peninsula Borough Clerk has
confirmed that a filing period ending on September 15 would still provide sufficient time to
accommodate ballot programming and printing requirements.
Direction from Council regarding the candidate filing period dates will be included in a future
ordinance that will incorporate changes in the code that are necessary to align with the recent
charter amendments.
Page 199
MEMORANDUM
TO: Mayor Knackstedt and Council Members
THROUGH: Terry Eubank, City Manager
FROM: Tyler Best, Parks and Recreation Director
DATE: April 14th, 2026
SUBJECT: Workplan 2025 report
The Parks and Recreation Commission met on April 2nd. and approved its 2025 workplan report
to the council.
Page 200
Parks and Recreation Commission Annual Report
Commissioner Michael Bernard
March 6, 2026
Summary
During the year, the Parks and Recreation Commission worked on developing its annual
goals, including planning the spring and fall tours of City parks, trails, and recreation
facilities. The Commission also recommended to Administration that the Kenai
Recreation Center adopt new hours to provide more consistent year-round access and
reduce drastic seasonal schedule shifts. Additionally, the Commission reviewed
proposed changes to the Leif Hansen Memorial policy brought forward by the City
Clerks and provided feedback on the recommendations.
Purpose
The purpose of the Parks and Recreation Commission is to advise the Council and
Administration on issues involving the City’s parks and recreational facilities. Kenai
Municipal Code 1.95.050
Objective 1: Tour Parks and Trails Twice Annually
Status: Partially Completed
A tour of the Kenai Recreation Center and Multi-Purpose Facility was conducted on
June 5, 2025. A second tour of other Parks facilities was not conducted.
Objective 2: Capital Improvement Plan Work Session Twice Annually
Status: Partially Completed
A work session was held in the fall to discuss the Capital Improvement Plan for the
Parks and Recreation budget.
Objective 3: Development of Long-Term Goals
Status: Not Completed
A discussion item was added to the agenda for the December 4, 2025 commission
meeting; however, the meeting was cancelled due to a lack of quorum.
Objective 4: Development of a Unique Work Plan for FY26
Status: Not Completed
A discussion item was added to the agenda for the December 4, 2025 commission
meeting; however, the meeting was cancelled due to a lack of quorum.
Page 201
KENAI PLANNING & ZONING COMMISSION – REGULAR MEETING
MARCH 25, 2026 – 7:00 P.M.
KENAI CITY COUNCIL CHAMBERS
210 FIDALGO AVE., KENAI, AK 99611
CHAIR KEATON, PRESIDING
Planning & Zoning Commission Page 1 of 3
March 25, 2026
MINUTES
A. CALL TO ORDER
A Regular Meeting of the Kenai Planning & Zoning Commission was held on March 25, 2026, in City Hall
Council Chambers, Kenai, AK. Chair Keaton called the meeting to order at approximately 7:00 p.m.
1. Pledge of Allegiance
Chair Keaton led those assembled in the Pledge of Allegiance.
2. Roll Call
There were present:
Sonja Earsley Alex Douthit, Vice Chair
Jeanne Keaton, Chair Diane Fikes
Marty Askin
Absent:
Gwen Woodard Stacy Krause
A quorum was present.
Also in attendance were:
Kevin Buettner, Planning Director
Logan Parks, Deputy City Clerk
3. Agenda and Consent Agenda Approval
MOTION:
Commissioner Askin MOVED to approve the agenda and consent agenda. Commissioner Fikes
SECONDED the motion.
The items on the Consent Agenda were read into the record.
Chair Keaton opened the floor for public comment on consent agenda items; there being no one wishing
to be heard, the public comment period was closed.
UNANIMOUS CONSENT was requested.
VOTE: There being no objection; SO ORDERED.
*All items listed with an asterisk (*) are considered to be routine and non-controversial by the council and
will be approved by one motion. There will be no separate discussion of these items unless a
Commissioner so requests, in which case the item will be removed from the consent agenda and
considered in its normal sequence on the agenda as part of the General Orders.
B. APPROVAL OF MINUTES
1. *Regular Meeting of March 11, 2026.
C. SCHEDULED PUBLIC COMMENTS - None.
D. UNSCHEDULED PUBLIC COMMENTS - None.
Page 202
Planning & Zoning Commission Page 2 of 3
March 25, 2026
E. CONSIDERATION OF PLATS
1. Resolution PZ2026-07 - Recommending that Preliminary Plat Black Gold Estates 2026
Vacation be Conditionally Approved.
MOTION:
Commissioner Earsley MOVED to approve Resolution PZ2026-07. Commissioner Fikes SECONDED the
motion.
[Clerk’s Note: Commissioner Douthit declared a conflict with Resolution PZ2026-07 as he was the applicant. Chair
Keaton ruled a conflict did exist and Commissioner Douthit stepped away from the dais and abstained from voting
on the Resolution.]
Director Buettner read the staff report as provided in the packet.
Chair Keaton asked if there were any remote attendees wishing to speak. Chair Keaton asked if any
Commissioners had any questions for the applicant.
Chair Keaton called for the vote.
[Clerk’s Note: Although a vote was taken it was immediately followed by a Point of Order as the public hearing in
chambers was never opened. The vote was out of order; therefore, stricken from the record.]
Clarification was provided regarding the changes that were made since the previous application; and
instructions were provided that when voting, Commissioners need to include their findings for the record.
Chair Keaton opened the public hearing.
Alex Douthit, applicant addressed the Commission noting that the original denial was based on
unresolved right-of-way ownership; a perceived conflict of interest, which was no longer applicable; the
City no longer required the right-of-way; staff supported the vacation; and additional costs would be borne
by the landowner. He further clarified that the vacation would allow drainage issues to be addressed.
There was discussion regarding the historical purpose and ownership of the land.
There being no one else wishing to be heard, the public comment period was closed.
VOTE:
YEA: Keaton, Earsley, Fikes
NAY: Askin
ABSENT: Krause, Woodard
ABSTENTION: Douthit
MOTION PASSED.
F. PUBLIC HEARINGS - None.
G. UNFINISHED BUSINESS - None.
H. NEW BUSINESS - None.
I. REPORTS
1. Planning Director
Planning Director Buettner reported on the following:
• FAA Section 106 findings related to fence replacement at the Airport were included under
Informational Items for awareness.
• Upcoming schedule changes: no meeting on April 8, and the next meeting is April 29, 2026
due to Council meeting shift.
Page 203
Planning & Zoning Commission Page 3 of 3
March 25, 2026
• Spring workload is increasing, with anticipation of starting seasonal activities soon.
2. Commission Chair - No report.
3. Kenai Peninsula Borough Planning
Commissioner Fikes reported on recent actions of the Kenai Peninsula Borough Planning Commission.
J. ADDITIONAL PUBLIC COMMENTS - None.
K. NEXT MEETING ATTENDANCE NOTIFICATION
1. Next Meeting: April 29, 2026
L. COMMISSION COMMENTS AND QUESTIONS
MOTION:
Commissioner Douthit MOVED to excuse Commissioner Woodard’s absence. Commissioner Askin
SECONDED the motion.
UNANIMOUS CONSENT was requested.
VOTE: There being no objection; SO ORDERED.
There was appreciation for the Spring weather; Commissioners reminded to state their findings when
voting on items brought to the Commission.
M. PENDING ITEMS - None.
N. ADJOURNMENT
O. INFORMATIONAL ITEMS
1. FAA Section 106 Findings
There being no further business before the Planning & Zoning Commission, the meeting was adjourned
at 7:27 p.m.
I certify the above represents accurate minutes of the Kenai City Council meeting of March 25, 2026.
___________________________________
Logan Parks, Deputy City Clerk
Page 204
PROCLAMATION
In Recognition of the
Kenai Peninsula Hockey Association (KPHA) Ice Hawks 12U Girls Hockey Team
WHEREAS, the Kenai Peninsula Hockey Association’s (KPHA) Ice Hawks 12U Girls hockey team
achieved a historic milestone by winning the 2026 Alaska State Hockey Tournament against a
competitive co-ed field; and
WHEREAS, this remarkable accomplishment marks the first time in Alaska history that an all-
girls hockey team has captured a co-ed state championship, demonstrating exceptional skill,
determination, and resilience; and
WHEREAS, the Ice Hawks secured their championship with a 3–2 victory over a previously
undefeated opponent, showcasing perseverance, teamwork, and composure under pressure
throughout a demanding tournament schedule; and
WHEREAS, the team’s success reflects the dedication and leadership of their coaches - Chris
Chambos, Rainy Kisena, Branda Madrid, and Lenaya Braniff - whose guidance, mentorship, and
commitment fostered both athletic excellence and personal growth; and
WHEREAS, the following athletes represented the Kenai community with distinction,
sportsmanship, and unity, forming lasting bonds and serving as inspiring role models for future
generations of girls in athletics:
Alexia Lee, Annabeth Dura, Chloe Chambos, Elliet Rininger, Ember Kisena, Harper Madrid,
Hayden Seifert, Irie Iverson, Bella Puentes, Jenessa Holloway, Kailea Beddow, Luna Felt, Maggie
Schaefer, Ria Martin, Sadie McCanna, and Sophie Glick; and
WHEREAS, this historic achievement advances opportunities for girls’ hockey in Alaska and
inspires young athletes throughout the State to pursue their goals with confidence and
determination; and
WHEREAS, the accomplishments of the Ice Hawks 12U Girls team highlight the strength, pride,
and supportive spirit of the Kenai community, including the families, volunteers, and fans who
contributed to the team’s success;
NOW, THEREFORE, I, Henry Knackstedt, Mayor of the City of Kenai, Alaska, do hereby
recognize and commend the KPHA Ice Hawks 12U Girls team for their historic state
championship and their outstanding representation of our community.
DATED: This 22nd day of April, 2026. ____________________________________________________ Henry H. Knackstedt Mayor ATTEST: ___________________________________________________ Michelle M. Saner, MMC, City Clerk
Page 205
CITY OF KENAI
2026 STATE OF THE CITY
Mayor Henry Knackstedt
City Manager Terry Eubank
Page 206
Kenai Police Department
Kenai Fire Department
Public Works
Kenai Municipal Airport
Parks & Recreation
Kenai Community Library
Kenai Senior Center
Planning & Lands
Finance
City Administration & Support
2026 CITY OF KENAI DEPARTMENTS
ESSENTIAL SERVICESSAFETY
QUALITY OF LIFECOMMUNITY
FUTURE PLANNING GROWTH
(City Manager, City Clerk, Legal)
Page 207
KENAI COMMUNITY LIBRARY
68,120VISITORS
109,943CHECKOUTS
A LIBRARY CARD OPENS THE DOOR TO ENDLESS RESOURCES
677 PROGRAMS
Page 208
PARKS & RECREATION
360+ ACRES OF PARKS AND OPEN SPACES!
39,539KENAI RECREATION CENTER VISITS
807HOURS OF ICE RESERVATIONS
PARKS & REC MASTER PLAN
Page 209
KENAI SENIOR CENTER
5,465VOLUNTEER HOURS
35,172HOME DELIVERED & CONGREGATE MEALS
SUPPORTING SENIORS WITH CARE, CONNECTION, AND COMMUNITY
TRANSPORTATION SERVICES EXPANDED
Page 210
KENAI FIRE DEPARTMENT
191COMMERCIALINSPECTIONS
3 NEW FIREFIGHTERPOSITIONS
SAFEGAURDING LIVES
1,481CALLS FOR SERVICE
Page 211
KENAI POLICE DEPARTMENT
6,534CALLS FOR SERVICE
19% REDUCTION IN REPORTED CRASHES
DRONES SUPPORTING SEARCH & RESCUE
Page 212
77,417ENPLANEMENTS
(passengers boarding flights)
KENAI MUNICIPAL AIRPORT
RUNWAY REHABILITATION PROJECT
AIRPORT MASTER PLAN
GATEWAY TO THE KENAI PENINSULA AND COOK INLET
Page 213
STOREFRONT IMPROVEMENT PROGRAM
PLANNING & ZONING
LAND REVIEW AND SUBDIVISION STANDARDS
LAND LEASE DEVELOPMENT
Flexibility encourages entrepreneurship
Page 214
675,317 GALLONS OF POTABLE WATER PRODUCED AND 527,000 GALLONS OF WASTEWATER TREATED DAILY
PUBLIC WORKS
307 VEHICLES AND PIECES OF EQUIPMENT MAINTAINED BY CITY SHOP
95 BUILDING PERMITS ISSUED AND 382 FACILITY WORK ORDERS COMPLETED
135 LANE MILES OF ROADS AND PARKING LOTS MAINTAINED
Page 215
Available on the City website www.kenai.city
PARKS & FACILITIESPark shelters, pavilion, cemetery, senior center upgrades
CITY BUILDINGSCity Hall systems, Vintage Pointe upgrades, Animal Control roof
CAPITAL PROJECTS
AIRPORTRunway rehabilitation, apron maintenance, master plan, fencing
INVESTING IN KENAI'S INFRASTRUCTURE
27 active projects | 8 completed projects $1M+ invested annually
UTILITIES & ROADSWater plant, lift stations, sewer, repaving, stormwater, lighting
ACTIVE PROJECTS
Softball dugoutsBluff stabilizationEmergency services assessmentBoiler replacementStreet lighting assessmentRoad standards updateVintage Pointe upgradesSewer insulation
COMPLETED PROJECTS
Page 216
CITY OF KENAI REVENUES
23%
14%
9%31%
Sales
Tax
FY2023 FY2024 FY2025
Sales Tax $9,818,482 $9,975,032 $10,497,334
Property Tax $4,316,204 $4,440,189 $4,540,042
Charges for Service $7,552,552 $7,470,194 $8,430,520
Interest $2,723,737 $4,663,935 $5,161,064
Intergovernmental $5,000,041 $2,801,726 $3,002,999
Misc $3,261,582 $2,834,620 $3,399,863
Total Revenues $32,672,598 $32,185,696 $35,031,822
KENAI REVENUES
Sales tax is the City's largest revenue source
14%
9%
Page 217
PROPERTY TAX REVENUES
Kenai Peninsula Borough
Central Peninsula Hospital
KENAI MILL RATE
Taxing Entity Mill Rate Tax
FY26 Total 8.66 $2,816.00
City of Kenai
4.30 mills
4.35 mills
$1,290.00
$1,522.50
.01 mills $3.50
*After $50,000 primary residence exemptionFY27 Exemption is $75,000
FISCAL RESPONSIBILITY
The City's mill rate has been the same for ten years
Property tax example: $350,000 home
Page 218
PUBLIC WORKS$204.03
FIRE SERVICES$291.10
POLICE SERVICES$371.64
SERVICES PROVIDED
KENAI SERVICES
Where
your
property
taxes go
example:
$350,000
home
Administration includes City Manager, Finance, Legal, and Human Resources. Police includes Animal Control, and Dispatch.
Police $371.64
Fire $291.10
Public Works $204.03
Administration $253.64
Capital Projects $135.05
Parks & Rec $92.41
Library $69.88
Clerk & Council $38.67
Lands & Planning $24.36
Senior Services $19.34
Visitor Center $13.55
Debt Service $8.83
$1,522.50 PROPERTY TAXES
ADMINISTRATION$253.64
Page 219
KENAI BLUFF STABILIZATION
BLUFF STABILIZATION PROJECT COMPLETE
Stabilizing the Kenai River, Protecting Our Community, Preserving Our Future.
MOBILIZATION
Contractor barges
enter the river to
begin rock
placement.
PROGRESS
Construction
continues upriver
at the new
location; barge
updates reduced.
COMPLETION
Project
Completion
Celebration held
with City and
USACE partnership.
ANALYSIS
Post Contruction
Top of Bluff
Retreat Analysis.
From decades of erosion to long-term protection for Kenai’s shoreline
Page 220
COMMUNITY SURVEY
Jobs/Economy
Public safety/…
Transportatio…
Housing afford…
City Revitalizat…
Government
Cost of living/I…
Education/Sch…
Taxes
Jobs and the
economy is the
top-of-mind
issue for Kenai
Residents
KENAI COMMUNITY SURVEY RESULTS
Statistically valid survey conducted Oct–Nov 2025
Full Survey Results Available on the City website www.kenai.city
Strong Foundation
67% rate quality of life as good80% are satisfied with City services
Top Priorities56% say infrastructure is a top focus
54% prioritize economic development
Biggest Gap
Support for local business and job
growth
Housing Challenge
74% see a housing issue
62% say single-family homes are most needed
What We Heard
Page 221
MEMORANDUM OF UNDERSTANDING
Kenaitze Indian Tribe
Salamatof Tribe
GOALS & COLLABORATION
KENAI BRONZE BEAR FAMILY SCULPTURE
HOUSING DEVELOPMENT
CDBG Grant Collaboration
Economic and Housing Development Initiatives
Page 222
2026 YEAR AHEAD
Charting a clear path for
Kenai’s future through
thoughtful goals,
actionable strategies,
and measurable
outcomes
PLAN
Fostering a thriving local
economy by supporting
businesses, creating jobs,
and encouraging
sustainable development
GROWTH
Strengthening
connections with
residents and community
partners to enhance
quality of life and shared
success
RESIDENTS
Page 223
QUESTIONS?
Page 224
MEMORANDUM
TO: Mayor Henry Knackstedt and Kenai City Council
THROUGH: Terry Eubank, City Manager
FROM: Mary Bondurant, Interim Airport Manager
DATE: April 9, 2026
SUBJECT: Airport Mid-month Report March 2026
FY2025 Airport Capital Improvement Projects
• Runway Rehabilitation Project
Construction to start Spring of 2026. Safety Risk Management (SRM) meeting scheduled
for April 15, 2026. Runway closure slated for May 15, 2026. Meetings are being held
weekly with the Airport, engineers, and contractor.
• Apron crack sealing, marking, and sealcoat
Construction to start June 2026, Meetings are being held weekly with the Airport,
engineers, and the contractor.
• Acquire SRE (Loader & Plow Truck with Sander)
Update: the CAT 980 loader has been delivered with all of the attachments and the plow
truck and sander now has a delivery date of April 2026.
• Airport Master Plan – Phase 1
Phase 1 is almost complete. Working on comments from the Public Meeting to draft 1
alternative for review this fall.
• ARFF Building Rehabilitation – Boiler Replacement
This project is complete and the closeout packet is being prepared.
In-house Activities
• The Airport has published a virtual tour on the airport website:
https://www,kenai.city/airport/page/airport-virtual-tour. Please check it out and give us
your comments. Future plans are to provide virtual tours of the Alaska Regional Fire
Training Facility and the Airfield after the runway rehabilitation project.
Page 225
Page 2 of 2
Airport Mid-Month Report
Page 2 of 2
• Safety Risk Management meeting for the Runway Rehabilitation Project is scheduled for
April 15, 2026.
• A Runway Safety Action Plan meeting has been scheduled for April 21, 2026 in City
Council chambers at 10:30 a.m. This meeting is being handled by Carey Adcock, Air
Traffic Control Tower Manager. More information will become available.
• FAA Part 139 inspection is scheduled for April 21-23, 2026. A Certification Inspector will
be reviewing the Airport Certification Manual, records, personnel, paved areas, safety
areas, markings, signs, and lighting and all aspects of the Airport’s Firefighting
Operations.
Page 226
MEMORANDUM
TO: Mayor Henry Knackstedt and Kenai City Council
THROUGH: Terry Eubank, City Manager
THROUGH: Dave Ross, Police Chief
FROM: Ian Braman, Animal Control Chief
DATE: April 1st, 2026
SUBJECT: March 2026 Monthly Report
This month the Kenai Animal Shelter took in 21 animals.
DOGS:
INTAKE 12 DISPOSITION 11
Waiver 6 Adopted 3
Stray 6 Euthanized 2
Impound 0 Claimed 6
Protective Custody 0 Field Release 0
Quarantine 0 Transferred 0
CATS:
INTAKE 9 DISPOSITION 7
Waiver 7 Adopted 7
Stray 0 Euthanized 0
Impound 0 Claimed 0
Protective Custody 0 Field Release 0
Quarantine 0 Transferred 0
Transferred in 2
Page 227
Page 2 of 2
3 Animals dropped with After Hours (days we are closed but cleaning and with KPD)
15 Field Investigations & patrols
4 Pet Food Bank Request
0 Volunteer Hours Logged
1 Citations
0 Educational Outreach
10 Microchips
Total Animal Contacts:
5 Animals are known borough animals
12 Animals are known City of Kenai
4 Animals are known City of Soldotna
0 Animals are unknown location
Statistical Data:
98 2024 YTD Intakes
89 2025 YTD Intakes
69 2026 YTD Intakes
OTHER ANIMALS:
INTAKE 0 DISPOSITION 0
Rabbit 0 Rabbit 0
DOA:
OTHER STATISTICS:
Dog 0 Licenses (City of Kenai Dog Licenses) 26
Cat 0 Rabies Clinic 0
Rabbit 0
Bird 0
Page 228
MEMORANDUM
TO: Mayor Knackstedt and Council Members
THROUGH: Terry Eubank, City Manager
FROM: Dave Swarner, Finance Director
DATE: April 11, 2026
SUBJECT: Finance Department Mid-Month Report – March 2026
The FY27 Budget is now the major focus for the department, the City Manager has met with all
the department heads to review their budgets. The Council is scheduled to receive the first draft
of the FY2027 budget on April 17th, with the budget work session scheduled for May 2nd.
The RFP process for our external auditor evaluation was completed. We received two
applications for this, one from BDO USA, P.C. and the other from Altman, Rogers & Co. The
External Auditor Evaluation Committee selected BDO USA, P.C.
Page 229
MEMORANDUM
TO: Mayor Knackstedt and Kenai City Council
THROUGH: Terry Eubank, City Manager
FROM: Jay Teague, Fire Chief
DATE: April 09, 2026
SUBJECT: Fire Department Mid-Month Report – March Data.
For February, we experienced a call volume decrease from the previous year.
March 2025 2026 % change
Month totals 131 120 -8%
EMS 98 90 -8%
All Other 33 30 -9%
Training:
• 320 total hours of training for month.
• EMS Renewals accomplished with National Registry and State of Alaska Office of EMS
for paramedics and AEMTS
• American Heart Assoc. BLS renewals completed for personnel
• State of Alaska Division of Forestry Annual Refreshers (RT-130)
• US DOT TIMS (Traffic Incident Management) classes completed
• US Coast Guard Auxiliary Boat Operations training with all shifts
• Airfield Annual Driver’s Training and Tested in progress
• Airport Wildlife Hazing Training for shift personnel conducted
• Annual helicopter Landing Zone/Operational Safety training with LifeMed and Guardian
has been scheduled
• 3 firefighters have slots for April and May to complete ARFF Initial Certification Training
Projects/Grants/MISC:
• Fire Marshal completed 12 commercial property fire inspections.
• Department in preparation/internal audit for FAA Inspection
• New firefighter (Seth Hagen) hired. Start date of April 20th.
• Chief Teague participated in next round of Airport Manager Interviews
• Planning meeting hosted for 2026 Firefighter Conference on March 17th
Page 230
MEMORANDUM
TO: Mayor Henry Knackstedt and Kenai City Council
THROUGH: Terry Eubank, City Manager
FROM: Stephanie Randall, Human Resources Director
DATE: April 3, 2026
SUBJECT: Human Resources Activity – March 2026
Recruitment
The Fire Department has hired a new firefighter, who is scheduled to start in April. The Police
Department began recruiting for a police officer, a part-time administrative assistant I position,
and five Temporary Enforcement Officers. The Parks Department began actively recruiting for
summer hires for Temporary Maintenance worker positions. Public Works recruited for a Lead
Equipment Operator to work in streets and a part time janitor for City Hall. Two new Utility
Operators were onboarded and began work at the City.
Safety
Four accident reports were completed in March, one was submitted to workers compensation for
a minor injury.
Employee Recognition and Awards
The following Employees received certificates of appreciation at the employee appreciation in
recognition of their years of employment with the City: 5 years: Kevin Grimes, Austin Asp,
Stephanie Seierup, Chad Larsen; 10 years: Kurt Brauer; 15 years: Scott Summers; 20 years:
Curt Wagoner, Abe Porter and Janina Efta.
Special Projects
Human Resources participated with a group of City employees in planning the Employee
Appreciation party and attended the Leadership training with other Department Heads. Human
Resources continues work on policies and procedures.
Page 231
MEMORANDUM
TO: Mayor Knackstedt and Council Members
THROUGH: Terry Eubank, City Manager
FROM: Katja Wolfe, Library Director
DATE: April 7, 2026
SUBJECT: Library Report for March 2026
CIRCULATION
7,063 8,098 7,659
2,070
2,130 2,386
2024 2025 2026
Physical Checkouts March Digital Checkouts March
PROGRAMS AND EVENTS
77
10
41
200
330
Everyone
Adults
Teens
Children
Babies and Toddlers
SERVICES
5890 Visitors
64 New Members
571 Computer Sessions
5639 WiFi Sessions
205 Room Reservations
394 Hours of Use
650 Attendees
73 Programs
Program Attendance
5,400 1,185
2,386
433
49
Print DVD Digital Other Audio
*Does not include in-house use.
Page 232
MEMORANDUM
TO: Mayor Knackstedt and Kenai City Council
THROUGH: Terry Eubank, City Manager
FROM: Tyler Best, Parks and Recreation Director
DATE: April 14th, 2026
SUBJECT: Mid-Month Report – March
Parks coordinated with the Streets Department to clear one field at the Steve Shearer Memorial
Ball Park and one field at the Kenai Little League field for high school sports. This will help
teams prepare for their upcoming season in April.
March marked the end of the ice season at the Multi-Purpose Facility (MPF). KPHA hosted
several state tournaments to close out the season, and on one of the last days of ice, Parks and
Recreation held a free community skate. (See attached photos.)
Ski trails were groomed throughout March. Typically, trail conditions deteriorate by the end of
the month, but thanks to a cold spring break, crews were able to groom the trails daily and keep
them in excellent shape.
At the Kenai Recreation Center, afternoon pickleball has been very popular, keeping the facility
busy while the City League continues to play three nights a week.
Kenai Recreation Center Visits – Month of April
Weight Room/Cardio Room 871
Racquetball /Wallyball Court 213
Shower/Sauna 180
Gymnasium 891
Gym rental participants 807
Total Number of Sign-ins 2,956
Door Counter Log 5,364
Page 233
MEMORANDUM
TO: Mayor Knackstedt and Council Members
THROUGH: Terry Eubank, City Manager
FROM: Tyler Best, Parks and Recreation Director
DATE: April 14thth, 2026
SUBJECT: Kenai River Special Management Area (KRSMA) Advisory Board
Meetings Recap
Tyler Best is the City of Kenai representative for the KSRMA Advisory Board. The City of Kenai
is a voting member of this advisory board. The Kenai River Special Management Area Advisory
Board was originally created in 1985 under the authority of A.S. 41.21.510. The original Board
was charged with developing a comprehensive management plan for the Kenai River. The original
Comprehensive Plan was completed, and the Board disbanded in 1986. In 1988, a new board
was appointed to advise the Department of Natural Resources on the implementation of the Plan.
In 1997, the Board worked to update the Kenai River Comprehensive Management Plan, and it
was adopted in December 1997. In May 2004, the Alaska Legislature passed a bill that changed
the composition of the board from what the original 1984 KRSMA statute had directed.
Attached is a recap of the KRSMA meeting held on March 12 at 5:30 pm and April 9th at 5:30
pm. The next meeting will be on May 14th at 5:30 pm at the Kenai Wildlife Refuge. The
February meeting was canceled due to a lack of agenda items.
Page 234
Page 2 of 5
Kenai River Special Management Area Advisory Board Meeting Recap (3/12)
I attended the Kenai River Special Management Area Advisory Board meeting on March 12th at
5:30 p.m. The Board consists of 17 members: nine public members, three agency voting
members, and five agency non-voting members.
Public Comment
• No public comment.
Alaska State Parks Report- Hams Rinke
• Seeking applications for board seats; deadline is the end of the month.
• Design and Construction working on 90% design for Eagle Rock and Big Eddy projects,
with hopes to go out to bid soon.
• State Parks participated in the Guide Academy, hosted at KPC.
• Kenai Keys well casing removal is underway and progressing.
• The State is currently under a hiring freeze.
DEC Report — Mary Inovejas
• Making progress on Administrative Order 360.
ADF&G Report — Phil Stacey
• Participated in the Guide Academy.
• Hiring freeze does not apply to seasonal positions.
U.S. Fish and Wildlife Service — Steve Miller
• Setting an interagency meeting at the end of April.
• Campground should be open for Memorial Day.
• There will be an update on the Elodea project at the next meeting.
• Ongoing fuel treatment near Tern Lake.
• Able to hire for seasonal positions.
U.S. Forest Service — Alex McLain
• Hiring for seasonal positions; positions are currently posted.
• Campground expected to open for Memorial Day.
City of Kenai — Tyler Best
• Hiring for seasonal positions; positions are currently posted.
• Currently working on finishing the Parks and Recreation Master Plan.
Page 235
Page 3 of 5
City of Soldotna — Joel Todd
• Hiring with some success.
Kenai Peninsula Borough
• No report.
Committee Reports
Guide Advisory Committee
• Discussed red and white vs. green and white signage on the river
• Committee position is that the proper tool is not signage but rather working with
landowners and pursuing habitat closures; willing to consider formalizing a habitat
closure.
• Committee charters are being formalized.
• Guide Academy update: one person did not pass, but there were 61 graduates overall.
Described as a very strong program.
Habitat/River Use Committee
• Discussed drafting committee charters for both committees.
• Middle River toilet situation: four sites were identified as priorities and will be reviewed.
Board Discussion
• No discussion.
Kenai River Special Management Area Advisory Board Meeting Recap (4/9)
I attended the Kenai River Special Management Area Advisory Board meeting on April 9th at
5:30 p.m. The Board consists of 17 members: nine public members, three agency voting
members, and five agency non-voting members.
Public Comment
• Joe Hanes, a guide on the river, spoke in regard to the Guide Advisory Committee's
earlier discussion about a motion to change signage on the river. He served on the
original committee that installed the signs, describing it as a significant undertaking with
funding pulled from multiple sources, and advised against removing them.
Page 236
Page 4 of 5
Alaska State Parks Report — Hans Rinke
• Presentation on the status of the Elodea project at Crescent Lake. The project will
continue this year and is currently seeking funding for a third year.
• State received waivers to hire seasonal staff; ten hosts on the Kenai River.
• Ongoing work on the Kenai Flats project, expected to be completed by the end of May.
• Well casing removal from Kenai Keys update: all permits obtained; work should begin
soon.
DEC Report
• No report.
ADF&G Report
• No report.
U.S. Fish and Wildlife Service — Steve Miller
• Hiring for summer.
U.S. Forest Service — Alex McLain
• Actively hiring; some staff secured, with students coming to assist.
City of Kenai — Tyler Best
• PU fishery jobs will be open next week; I will be attending the job fair at the Old Cars
Mall.
City of Soldotna — Joel Todd
• City Council work session held regarding pools.
Kenai Peninsula Borough
• No report.
Committee Reports
Guide Advisory Committee
• Met and discussed one primary item: changing the red and white signs set by Fish and
Game to green and white DNR signs.
Page 237
Page 5 of 5
• Concern raised that enforcement may decrease, as troopers may not prioritize park
regulations over federal regulations.
• Discussion indicated this may not be the solution but rather a band-aid, as general access
needs to be improved to the river to protect the habitat.
• Motion to recommend the director close areas marked by red and white signs and replace
them with DNR green and white signs — motion failed.
Habitat/River Use Committee
• Met and discussed the Trout Lake Trailhead project and improvement to the trailhead.
USFS is seeking to use funding to expand the trailhead; the current trailhead is on
Borough land, which may mean USFS would lose the funding and have to move the
trailhead.
• Motion for the board to write a letter to the Borough to work with USFS on developing
the current land or establishing a new trailhead.
Page 238
Page 2 of 2
Page 239
MEMORANDUM
TO: Mayor Knackstedt and Kenai City Council
THROUGH: Terry Eubank, City Manager
THROUGH: Kevin Buettner, Planning Director
FROM: Jessica See, Planning Technician
DATE: April 6, 2026
SUBJECT: Planning and Zoning – March 2026 Monthly Report
General Information
Spring has sprung in Kenai! With the warmer weather and melting snow we are preparing for an
increase in Code Enforcement violations as well as some follow-ups on a few open cases that
were not completed before the snow fall froze things in place. We have reached 100% compliance
for CUP annual reports and are now following up on fire inspection requirements. Lands is shifting
its focus this quarter to executing new leases for Shore Fishery Tideland Tracts and continues
steadily working on the mapping and zoning cleanup.
Department Summary
Lands & Leases:
• Continued cleaning up Zoning map
• Shore fishery lease reminders sent to lessees
• Opened bids and prepared purchasing agreements for City Owned land
auctioned for use as gravel pits
• Continued reviewing and itemizing of leases
• Finalizing completion, and processing of, new City land lease applications
• Mapping of City Lands released by FAA for purposes other than aeronautical
• Discussed zoning regulations, plats, easements and leases with various
departments, lessees, surveyors and members of the public
Planning & Zoning:
• Reviewed/updated Parks & Airport Master Plan
• Meetings to discuss residential and commercial development in Kenai
• Reviewed Airport Master Plan potential alternatives
• Cleanup and review of files for Natural Resources Conditional Use Permits
Page 240
Page 2 of 2
Planning and Zoning Commission
Two (2) public meetings were held in the month of March with the following
actions/recommendations:
• 2 Landscaping & Site Plans were approved
• Resolution PZ2026-05 Granting a Conditional Use Permit to operate a retail
marijuana store was dismissed, due to an applicant no show on 3/25/2026.
Page 241
MEMORANDUM
TO: Mayor Henry Knackstedt and Kenai City Council
THROUGH: Terry Eubank, City Manager
FROM: David Ross, Police Chief
DATE: April 6, 2026
SUBJECT: Police & Communications Department Activity – March 2026
Police handled 413 calls for service in March and 225 calls were received by dispatch via 911.
Officers made 23 arrests. Traffic enforcement resulted in 228 traffic contacts with 77 traffic
citations issued and there were 6 DUI arrests. There were 16 reported motor vehicle
collisions. There were 3 collisions involving a moose or caribou, and no collisions involving
drugs or alcohol.
One officer attended a two-week firearms instructor class in Sitka. One officer attended a one-
week conference for Law Enforcement trainers, in Missouri.
A dispatcher was selected in a recruitment process to fill the vacant position, however, a second
dispatch position became vacant due to a resignation. The department is working on filling that
position through the same recruitment process. One officer submitted his resignation and a
recruitment process in underway to fill that vacancy. The part-time administrative assistant
submitted her resignation and a recruitment is underway to fill that position as well.
The School Resource Officer (SRO) taught DARE classes at Mountain View Elementary and
Kaleidoscope Elementary, participated in an intruder drill at KCHS, and responded to a number
of police related calls in the schools.
1245
698
1368
775
1332
701
0
500
1000
1500
Total Police Service Calls 911 Calls Received
2024(Jan 1 - Mar 31)2025(Jan 1 - Mar 31)2026(Jan 1 - Mar 31)
Page 242
MEMORANDUM
TO: Mayor Knackstedt and Kenai City Council
THROUGH: Terry Eubank, City Manager
FROM: Lee Frey, Public Works Director
DATE: April 14, 2026
SUBJECT: Public Works Mid-month Report April 2026
Capital Projects currently in process:
• Parks & Recreation Master Plan – Project ongoing
• Emergency Services Facility Assessment – Assessment complete. Project on hold.
• KMA Apron Sealcoating and Crack Sealing – Preconstruction meetings ongoing with project
to start in May.
• Kenai Municipal Airport Runway Rehabilitation Project - Preconstruction meetings ongoing
with project to start in May.
• Kenai Municipal Airport Operations Building HVAC Controls Upgrade & Boiler Replacement
Project – Project being closed out
• Kenai Municipal Airport Master Plan Update – Phase 2 ongoing
• USACE Kenai Bluff Bank Stabilization Project – Construction completed. Closeout ongoing
• Wastewater Plant Digester Blowers Replacements – Reviewing submittals. Construction to
start in spring.
• Water Treatment Plant Pumphouse – Project awarded. Setting up contracts.
• Harbor Float Replacement – Construction ongoing. Floats for one ramp will be completed. For
this summer replacing oldest floats.
• Aliak Storm Drain Repairs – Releasing for bid for completion this summer.
• Community Wildfire Protection – Phase 3 work ongoing
• Street Condition Assessment – Project completed.
• Street Light Assessment – Final report being developed.
• Architectural Services – Design services ongoing
• Fire Monitoring Services – Reviewing bids.
Capital Projects in planning to be released:
• Sewer Lift Station Upgrades
• Citywide Crack Sealing
• Cemetery Improvements Design
• Flight Services RTU Replacement
Page 243
Page 2 of 2
Public Works Mid-Month Report
• Municipal Park Pavilion Replacement
Other Projects/Services in development for ITB/RFP:
• Banking Services
Our new Building Official continues working on revising documents and processes for future
software use and streamlining our internal and public process. We have issued ten residential
and three commercial permits in calendar year 2026. Buildings continues to work on regular
maintenance at our facilities.
The Streets crew has been managing breakup around town for the last several weeks. They are
preparing the asphalt patching machine and organizing to start sweeping soon. The Shop
continues working on outfitting new police vehicles and repairing issues as they arise. They are
transitioning vehicles to summer and prepping summer equipment for use soon.
The Utility Department has been assisting Streets with some thawing of storm drains and inlets
and are taking various calls for frozen service lines throughout the City. We are hoping to start
flushing hydrants on April 20th if weather allows.
Page 244
MEMORANDUM
TO: Mayor Henry Knackstedt and Kenai City Council
THROUGH: Terry Eubank, City Manager
THROUGH: Kathy Romain, Senior Center Director
FROM: Astrea Piersee, Administrative Assistant III
DATE: April 5, 2026
SUBJECT: March 2026 Monthly Report
Number of individuals served in February:
Home Delivered Meals 1857
Individuals 109
Dining Room (Congregate) Meals 561
Individuals 146
Transportation (1-way rides) 361
Individuals 23
Grocery Shopping Assistance 19/71
Writers Group 33
Caregiver Support Group 9
Widows/Widowers Grief Support Group 22
Growing Stronger Exercise 192
Tai Chi Class 53
TOPS Weight Loss Class 63
Bluegrass & Music Sessions 69
Card Games 127
Wii Bowling 7
Arts & Crafts 42
Volunteers Hours 754
Individuals 41
Total Event Sign-ins * 1692
Individuals * 189
Vintage Pointe Manor Vacancies 2
*(not including home meals clients)
March was a flurry of last-minute preparations for the year-long planning of the March for Meals
2026 fundraiser. Overall, it was a successful night, overshadowing the regular monthly activities,
which included a no-host dinner at Siam Noodles, the annual St. Patrick’s Day celebration featuring
a performance written and presented by the Writers Group, and, of course, Waffle Friday.
Page 245
Page 246
NOTICE OF PUBLIC HEARING
APRIL 22, 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:
PUBLIC HEARINGS
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)
2. 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)
3. Resolution No. 2026-18 - Accepting a Site -Specific Emergency Operations Plan and Continuity of
Operations Plan for the Kenai Senior Center and Incorporating These Plans into the City of Kenai
Emergency Operations Plan. (Administration)
4. Resolution No. 2026-19 - Authorizing a Contract Award for External Financial Audit Services.
(Administration)
5. Resolution No. 2026-20 - Authorizing a Contract Award for the 2026 Kenai City Dock Lease.
(Administration)
6. Resolution No. 2026-21 - Approving a Lease Form for Leasing of Tidelands for Shore Fisheries and
Authorizing the City Manager to Enter into a Shore Fishery Lease with Nathan Scow for the Property
Described as Tracts A & B, City of Kenai Shore Fishery No. 1. (Administration)
7. Resolution No. 2026-22 - Approving a Lease Form for Leasing of Tidelands for Shore Fisheries and
Authorizing the City Manager to Enter into a Shore Fishery Lease with Tide Chaser Fishery, LLC for
the Property Described as City of Kenai Shore Fishery No. 2. (Administration)
8. Resolution No. 2026-23 - Approving a Lease Form for Leasing of Tidelands for Shore Fisheries and
Authorizing the City Manager to Enter into a Shore Fishery Lease with Brian Scow for the Property
Described as Tract One (1), Shore Fishery Plat No. 71. (Administration)
9. Resolution No. 2026-24 - Approving a Lease Form for Leasing of Tidelands for Shore Fisheries and
Authorizing the City Manager to Enter into a Shore Fishery Lease with Nancy Hillman -Scow for the
Property Described as Tract Two (2), Shore Fishery Plat No. 71. (Administration)
10. Resolution No. 2026-25 - Approving a Lease Form for Leasing of Tidelands for Shore Fisheries and
Authorizing the City Manager to Enter into a Shore Fishery Lease with Kenai Salmon Company, Inc.
for the Property Described as Tracts Three (3), Four (4), Five (5), and Six (6), Shore Fishery Plat No.
71. (Administration)
11 Resolution No. 2026-26 - Approving a Lease Form for Leasing of Tidelands for Shore Fisheries and
Authorizing the City Manager to Enter into a Shore Fishery Lease with Aurora Holdings and
Investments, LLC for the Property Described as Tract Seven (7), Shore Fishery Plat No. 71.
(Administration)
12. Resolution No. 2026-27 - Approving a Lease Form for Leasing of Tidelands for Shore Fisheries and
Authorizing the City Manager to Enter into a Shore Fishery Lease with Laura Maccabee for the Property
Described as a 3.29-acre portion of Tidelands Survey No. 272 within Section Thirty -Five (35), Township
5 North, Range 12 West. (Administration)
13. Resolution No. 2026-28 - Approving an Auto Aid Agreement and Supporting Operational Plan with the
Kenai Peninsula Borough for Exchange of Personnel and Equipment Response to Structure Fires.
(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 amended by the Council prior to adoption without further public notice.
L an Pars, Deputy City Clerk„,
Posted: April 17, 2026 ', NA/
i
/�® E
u6**"*oe"
e 'r V.
i CITY OF KENAI
C
� City Council
Notice of Meeting
KENAI
City Hall Council Chambers, 210 Fidalgo Ave, Kenai, AK
The Kenai City Council will hold a regular meeting on April 22, 2026,
beginning at 6:00 p.m. Visit the City Meeting web page for information
regarding this meeting: httr)sllwww.kenai.cstVimee(inas
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
w_ ww.kenai.cii
Shellie Saner, MMC, City Clerk
Publish: 04/17/2026
CERTIFICATE OF PUBLICATION & POSTING
I, Logan Parks, Deputy City Clerk of the City of Kenai, do
hereby certify that on the 9th day of April 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 April 17, 2026
edition of their newspaper. On the 17th day of April, 2026,
the Notice of Public Hearing and full meeting agenda was
posted at Kenai City Hall and on the internet at
www.kenai.citv.
LogalmParks; Deputy City Clerk
APRIL 22, 2026
CITY COUNCIL MEETING
ADDITIONAL MATERIAL/REVISIONS
REQUESTED ADDITIONS TO THE PACKET:
ACTION ITEM REQUESTED BY PAGE
Add to Item A. 3. Certifying the April 14, 2026 Special Election
Results
Clerk 1
• Certification of Results
• Unofficial Results
• Report of Canvass
City of Kenai
Special Election of April 14, 2026
WE, the members of the Kenai City Council, do hereby certify the results of a canvass of the
ballots for the Special Election of April 14, 2026.
Absentee, Questioned & Personal Needs Ballots Voted
(In-person, By-Mail, By-Request and Personal Needs) 88
Absentee, Questioned & Personal Needs Ballots Rejected 5
Absentee, Questioned & Personal Needs Ballots Counted 83
Poll Voter Turn Out 189 /2.95%
Total Voter Turn Out 272 / 4.24%
Number of Kenai Registered Voters 6,416
********************************************************************************************
PROPOSITION NO. 2026- A
Annual Elections - Time.
POLL VOTES
RECEIVED
ABSENTEE, ETC.
VOTES RECEIVED
TOTAL VOTES
RECEIVED
YES Votes 169 80 249
NO Votes 20 3 23
PROPOSITION NO. 2026-B
Annual Elections - Time.
POLL VOTES
RECEIVED
ABSENTEE, ETC.
VOTES RECEIVED
TOTAL VOTES
RECEIVED
YES Votes 151 75 226
NO Votes 37 5 42
Henry Knackstedt, Mayor Victoria Askin, Vice Mayor
Sovala Kisena, Council Member Phil Daniel, Council Member
Deborah Sounart, Council Member Bridget Grieme, Council Member
Bridget Grieme, Council Member
ATTEST:
Michelle M. Saner, MMC, City Clerk Date
CITY OF KENAI JURISDICTION WIDE Registered Voters: Cards Cast:
Kenai No. 1 (07-015)Registered Voters: Cards Cast:
6,416 4.24%272
CITY OF KENAI
ELECTION SUMMARY REPORT
APRIL 14, 2026 UNOFFICIAL RESULTS
SUMMARY OF ALL CITY OF KENAI PRECINCTS
%Total VotesAbsentee /
QuestionedPolling SiteProposition No. 2026-A
NO Votes 20 3 23 8.46%
169 80 249 91.54%YES Votes
YES Votes 151 75 226 84.33%
272 100.00%
Proposition No. 2026-B Polling Site Absentee /
Questioned Total Votes %
3,173 80 2.52%
INDIVIDUAL SUMMARY REPORT BY LOCATION
%
268 100.00%
NO Votes 37 5 42 15.67%
100.00%
Polling Site
71
9
80
11.25%
Proposition No. 2026-A
NO Votes
YES Votes 88.75%
80 100.00%
NO Votes 19 23.75%
Proposition No. 2026-B Polling Site %
YES Votes 61 76.25%
Kenai No. 2 (07-020)Registered Voters: Cards Cast:
Kenai No. 3 (07-025)Registered Voters: Cards Cast:
Absentee, Questioned & Personal Needs Cards Cast:
58 100.00%
YES Votes 55 94.83%
NO Votes 3 5.17%
1,709 58 3.39%
Proposition No. 2026-A Polling Site %
58 100.00%
NO Votes 8 13.79%
Proposition No. 2026-B Polling Site %
YES Votes 50 86.21%
51 100.00%
YES Votes 43 84.31%
NO Votes 8 15.69%
1,534 51 3.32%
Proposition No. 2026-A Polling Site %
50 100.00%
NO Votes 10 20.00%
Proposition No. 2026-B Polling Site %
YES Votes 40 80.00%
80 100.00%
NO Votes 5 6.25%
Proposition No. 2026-B Absentee / Questioned / Personal Needs %
YES Votes 75 93.75%
83 100.00%
YES Votes 80 96.39%
NO Votes 3 3.61%
83
Proposition No. 2026-A Absentee / Questioned / Personal Needs %
Report of outstanding voted ballot envelopes:
City of Kenai In-Person AVO 64 Absentee In-Person
0 Personal Representative
64 TOTAL
City of Kenai By-Request AVO 28 By-Request Issued
21 By-Requests Returned (4-14-26)
7 By-Request Sent and Not Returned
21 TOTAL
Kenai No. 1 3 Questioned
0 Personal Representative
3 TOTAL
Kenai No. 2.0 Questioned
0 Personal Representative
0 TOTAL
Kenai No. 3 0 Questioned
0 Personal Representative
0 TOTAL
Summary:85 Absentee (In-Person / By-Request)
3 Questioned
0 Personal Representative
88 TOTAL
Number of Rejected Ballots:5
Total Counted: 83
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City of Kenai I To Fidaigo Ave, Kenai, AK 99611-77941907.283.7535 1 wwwlenaixity
MEMORANDUM
TO: Mayor Knackstedt and Council Members
THROUGH: Shellie Saner, City Clerk
FROM: Logan Parks, Deputy City Clerk
DATE: April 3, 2026
SUB7ECT: Action/Approval - Non -Objection to the Transfer of Ownership of a
Marijuana Product Manufacturing Facility License from Transferor Herban
Extracts, LLC to Transferee Lady Gray, LLC DBA Herban Extracts - License
No. 14432.
An application was submitted to the Alcohol and Marijuana Control Office (AMCO) for Transfer of
Ownership by the following establishment:
Transferor: Herban Extracts, LLC
D/B/A: Herban Extracts, LLC
Physical Address: 14927 Kenai Spur Highway, Kenai, AK 99611
License Type: Marijuana Product Manufacturing Facility
License No. 14432
Transferee: Lady Gray, LLC
D/B/A: Herban Exracts, LLC
Physical Address: 14927 Kenai Spur Highway, Kenai, AK 99611
License Type: Marijuana Product Manufacturing Facility
License No. 14432
The administrative review of application has been completed in accordance with KMC 2.10.010
and it has been determined that the applicant has met all obligations to the City, as established
within City code. With the approval of Council, a letter of non -objection to the Transfer of
Ownership will be forwarded to AMCO and the applicant.
Your consideration is appreciated.
APPROVED BY COUNCIL
'pate: 4.2 L- Z
ov KFNAI
"'o City od Kenai 1 210 Fidalgo Ave, Kenai, AK 99611-7794 1907.283.7535 1 wwwlcenaixity
MEMORANDUM
TO:
Mayor Knackstedt and Council Members
THROUGH:
Terry Eubank, City Manager
FROM:
Tyler Best, Parks and Recreation Director
DATE:
April 14, 2026
SUBJECT:
Action/Approval - Workplan 2026-Parks and Recreation Commission.
The Parks and Recreation Commission met on April 21d and approved its 2026 workplan goal. It
set 1 goal, and the Administration supports it. The Administration supports the 2026 workplan as
submitted.
Council support is requested.
APPROVED BY COUNCIL
Date: 01-L�
KENAI
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
THROUGH: Kevin Buettner, Planning Director
FROM: Brandon McElrea, Land Management Analyst
DATE: March 31, 2026
SUBJECT: Action/Approval - Special Use Permit to NILCHIL Solutions, LLC for an Off -
Premise Sign on City Owned Property Described as Tract B, Gusty
Subdivision Addition No. 2 Located at 11631 Kenai Spur Highway.
Jennifer Yeoman, a managing member for NILCHIL Solutions, LLC (NILCHIL Solutions) has
requested a Special Use Permit (SUP) to continue the use of the City -owned property described
as Tract B, Gusty Subdivision Addition No. 2, located at 11631 Kenai Spur Highway, for an off -
premise sign. While off -premise signs are not permitted in any zoning district, the Planning and
Zoning Commission approved Resolution PZ2023-25 granting a Variance Permit to allow an
approximately 75 square foot off -premise sign, not to exceed 18 feet in height. This Council
previously approved an SUP for the requested purpose at the May 7, 2025 Council meeting.
The applicant has requested a start date of May 2, 2026. The proposed permit fee is $500.00 plus
applicable sales tax for one (1) year from May 2, 2026 through May 1, 2027.
Pursuant to Kenai Municipal Code (KMC) Section 22.05.130 Special Use Permits, City Council
may authorize the City Manager to grant special use permits for the temporary use of real property
owned by the City for a period not to exceed one (1) year, without appraisal of the value of the
property or public auction, for any purpose compatible with the zoning of the land, and on such
terms and for such rentals as the Council shall determine.
If the City Council approves the Special Use Permit, The City Manager will be authorized to
execute a Special Use Permit Agreement to allow NILCHIL Solutions to continue the use of the
above -mentioned City -owned property for an off -premise sign for one (1) year.
Thank you for your consideration.
Attachments
Exhibit A - Aerial Map
Resolution PZ2023-25 — Variance Permit for Off -Premise Sign
SUP Agreement
APPROWD BY COUNCIL
Date: ` . 17 1'
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