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HomeMy WebLinkAbout2026-06-11 Airport Commission - PacketKenai Airport Commission Regular Meeting June 11, 2026 - 6:00 PM KENAI Kenai City Hall -Council Chambers 210 Fidalgo Ave., Kenai, AK 99611 *Telephonic/Virtual Information on Page 2* Agenda A. CALL TO ORDER 1. Pledge of Allegiance 2. Roll Call 3. Agenda Approval B. SCHEDULED PUBLIC COMMENTS (Public comments limited to ten (10) minutes per speaker) 1. HDL Engineering - Discussion on Summer 2026 Airport Projects C. UNSCHEDULED PUBLIC COMMENT (Public comments limited to three (3) minutes per speaker; thirty (30) minutes aggregated) D. APPROVAL OF MINUTES May 14, 2026 Regular Meeting Minutes.................................................................................. 3 E. UNFINISHED BUSINESS F. NEW BUSINESS 1. Discussion/Recommendation — Special Use Permit to Empire Airlines ................................ 6 2. Discussion/Recommendation — Special Use Permit to State of Alaska DNR/Department of Forestry................................................................................................................................. 15 Discussion/Recommendation — Second Amendment to Agreement for Automatic Teller Machine(ATM) Services....................................................................................................... 24 G. REPORTS 1. Airport Manager 2. Commission Chair CityCouncil Liaison............................................................................................................... 27 H. ADDITIONAL PUBLIC COMMENTS (Public comments limited to five (5) minutes per speaker) I. EXT MEETING ATTENDANCE NOTIFICATION -July 9, 2026 J. COMMISSIONER COMMENTS AND QUESTIONS K. ADJOURNMENT L. INFORMATION ITEMS Planepass by Vector Airport Systems................................................................................... 34 Airport Commission Page 1 of 2 June 11, 2026 Fil Registration is required to join the meeting remotely through Zoom. Please use the link below to register: https://us02web.zoom.us/meeting/register/6oaXI IS9TfSwhglisUInew The agenda and agenda items are posted on the City's website at www.kenai.city. Copies of the agenda items are available at the City Clerk's Office or outside of Council Chambers prior to the meeting. Please contact the Airport Manager at 907-283-7951 for additional details. *"COMMISSIONERS, PLEASE CONTACT US IF YOU WILL NOT BE ABLE TO ATTEND THE MEETING" Airport Commission Page 2 of 2 June 11, 2026 ❑ 2 KENAI AIRPORT COMMISSION — REGULAR MEETING MAY 14, 2026 — 6:00 P.M. KENAI CITY COUNCIL CHAMBERS 210 FIDALGO AVE., KENAI, AK 99611 CHAIR GLENDA FEEKEN, PRESIDING MINUTES A. CALL TO ORDER A Regular Meeting of the Airport Commission was held on May 14, 2026, in the Kenai City Council Chambers, Kenai, AK. Chair Feeken called the meeting to order at approximately 6:00 p.m. 1. Pledge of Allegiance Chair Feeken led those assembled in the Pledge of Allegiance. 2. Roll Call There were present: Glenda Feeken, Chair Paul Minelga, Vice Chair James Bielefeld Cody Whicker Dan Knesek James Zirul Scott Bremmer A quorum was present. Also in attendance were: Mary Bondurant, Interim Airport Manager Julie Semmens, Airport Administrative Assistant Deborah Sounart, City Council Liaison 3. Agenda Approval MOTION: Commissioner Bielefeld MOVED to approve the agenda as presented. Commissioner Zirul SECONDED the motion. VOTE: There being no objection; SO ORDERED. B. SCHEDULED PUBLIC COMMENTS 1. HDL Engineering - Discussion on Summer 2026 Airport Projects A presentation on the Summer Runway project was given by HDL staff. C. UNSCHEDULED PUBLIC COMMENTS - None. D. APPROVAL OF MINUTES 1. March 12, 2026 Regular Meeting Minutes MOTION: Commissioner Bielefeld MOVED to approve the March 12, 2026 Airport Commission minutes. Commissioner Knesek SECONDED the motion. VOTE: There being no objection; SO ORDERED. E. UNFINISHED BUSINESS - None. Airport Commission Meeting Page 1 of 3 May 14, 2026 3 F. NEW BUSINESS 1. Discussion/Recommendation - Special Use Permit to River Rock Outdoors MOTION: Commissioner Zirul MOVED to recommend City Council approval of a Special Use Permit to River Rock Outdoors. Commissioner Whicker SECONDED the motion. Airport Manager Bondurant gave a staff report from information provided in the packet. UNANIMOUS CONSENT was requested on the motion. VOTE: There being no objection; SO ORDERED. 2. Discussion/Recommendation - Special Use Permit to Crowley Fuels, LLC MOTION: Commissioner Zirul MOVED to recommend City Council approval of a Special Use Permit to Crowley Fuels, LLC. Commissioner Knesek SECONDED the motion. Airport Manager Bondurant gave a staff report from information provided in the packet. UNANIMOUS CONSENT was requested on the motion. VOTE: There being no objection; SO ORDERED. G. REPORTS 1. Airport Manager - Airport Manager Bondurant reported on the following: • May 2, 2026 City Council Budget Work Session. • Airport Restaurant is closing on May 23, 2026.Staff working on the RFP. • Aleutian Air terminating service into Kenai. • USMC here Tuesday, May 191" for a meeting to discuss Arctic Edge 2027. • Working on end of FY26 purchase orders and work orders. 2. Commission Chair — Asked about Manager recruitment. Bondurant stated there is a new recruitment and closes on June 7th 3. City Council Liaison - Council Member Sounart reported on recent actions of the City Council. H. ADDITIONAL PUBLIC COMMENTS - None. I. NEXT MEETING ATTENDANCE NOTIFICATION - June 11, 2026 J. COMMISSION QUESTIONS AND COMMENTS • Commissioner Minelga asked why Float Plane Basin was so muddy and what was wrong with the fuel pumps at the Float Plane Basin. Saw the guys working on the dock, looks really good. • Commissioner Minelga also asked about having a grass strip for tundra tires. • Commission Knesek Informed Airport Administration that the Enplanement Report is not correct. K. ADJOURNMENT L. INFORMATIONAL ITEMS 1. March 2026 Airport Mid -month Report 2. April 2026 Airport Mid -month Report 3. Remote Tower, Kenai 4. 2026 Enplanements 5. Kenai Airport Interactive Virtual Tour Airport Commission Meeting May 14, 2026 Page 2 of 3 0 There being no further business before the Airport Commission, the meeting was adjourned at 6:32 p.m. I certify the above represents accurate minutes of the Airport Commission meeting of May 14, 2026. Logan Parks, Deputy City Clerk Airport Commission Meeting Page 3 of 3 May 14, 2026 5 L I000, City of Kenai MEMORANDUM K E N 4 210 Fidalgo Ave, Kenai, AK 99611-7794 1907.283.75351 www.kenai.city TO: Airport Commission THROUGH: Mary Bondurant — Interim Airport Manager FROM: Julie Semmens, Airport Administrative Assistant II DATE: June 1, 2026 SUBJECT: Empire Airlines, Inc. — Special Use Permit Empire Airlines, Inc. is requesting a Special Use Permit for aircraft parking on approximately 11,250 square feet of apron space. The Special Use Permit will be effective for one year from July 1, 2026 to June 30, 2027. Empire Airlines has submitted the Special Use Permit Application and paid the fee. Empire Airlines is current in all fees owed to the City and a current Certificate of Insurance is on file. Does Commission recommend Council approve the Special Use Permit to Empire Airlines, Inc.? Attachments- Application, Exhibit A, Special Use Permit F City of Kenai ti Special Use Permit KENAI Application Application Date: Ijljay 12, 2426 Name of Applicant: Empire Airlines Mailing Address: 11559 N Atlas Rd City_ Hayden I state: I I zip Code: 83835 Phone Numbers): Home Phone: [ Work/ Message Phone: [ } E-mail: (Optional) Name to Appear on Permit: Empire Airlines Mailing Address: 11559 N Atlas Rd Icity: Hayden state: I ID Zip Code: 83835 Phone Numbers): Home Phone: ( } Work/ Message Phone: E-mail: (Optional) Type of Applicant: ❑ Individual (at least 18 years of age) ❑ Partnership 8 Corporation ❑ Government ❑ Limited Liability Company (LLC) ❑ Other Legal or physical description of the property: FedEx Lot 7 & 8 Description of the proposed business or activity intended: Express Cargo Is the area to be used in front of or immediately adjacent to any established business offering the same or similar products or services upon a fixed location? B YES ❑ NO Would the use Lander this permit interfere with other businesses through excessive noise, odor, or other nuisances? ❑ YES 8 NO If you answered yes to any of the above questions, please explain: Next to FedEx sort facility for ground delivery operations. What is the term requested (not to exceed one year)? One year. Requested Starting Date: July 1, 2026 Signature: Date: 5/12/26 Print Name: Randell anfell Title: Operations For City Use Only: Date Application Fee Received: _ ❑ General Fund ❑ Airport Reserve Land City Council Action/Resolution: ❑ Airport Fund ❑ Outside Airport Reserve Account Number: SPECIAL USE PERMIT The CITY OF KENAI (City) grants to EMPIRE AIRLINES, INC. (Permittee), whose address is 11559 N. Atlas Road, Hayden, ID 83835, a Special Use Permit for the purpose of aircraft parking at the Kenai Municipal Airport subject to the requirements and the conditions set forth below. 1. Premises. Permittee shall have the non-exclusive right to use approximately 11,250 square feet as described in the attached Exhibit A for the uses identified in this Permit. 2. Term. The term of this Permit shall be for 1 year commencing on July 1, 2026 and ending on June 30, 2027. Regardless of the date of signature, this Permit shall be effective as of July 1, 2026. 3. Permit Fees. Permittee shall pay the following fees for the privileges extended to Permittee under this Permit: A. Permit: Permittee shall pay a monthly fee of $1312.50 ($1.40/SF/Year) plus applicable sales tax. *Adjusted for the City of Kenai Schedule of Rates, Charges, and Fees for Fiscal Year 2027. B. Proximity Card for Gate Access: In addition to the general permit fee, Permittee shall pay a deposit of one hundred dollars ($100.00) for the use of each proximity card issued to Permittee by City to allow for gate access to the Airport to conduct the uses permitted hereunder. City shall refund this deposit to Permittee when the card is returned to City. City may exercise a right of offset to apply the deposit to any outstanding balance due to City from Permittee at the termination of this Permit. C. Other Fees: City may assess additional fees for aviation or aviation support activities and uses not defined in this Permit. If a fee has not been established for those activities or services, a fee will be established by the Airport Manager. Payment shall be directed to City of Kenai, ATTN: Finance Department, 210 Fidalgo Avenue, Kenai, AK 99611 and a courtesy notice of payment provided to Airport Administration at 305 North Willow Street, Suite 200, Kenai, AK 99611. All permit fees are payable in advance of each month unless otherwise provided. In the event of delinquency, interest at the rate of ten percent (10%) per annum, and penalty of ten percent (10%) shall also be due (KMC 1.75.010). Interest shall accrue from the date due until the date paid in full. Failure to timely make payments is grounds for termination of this Permit. (See ¶ 22, Termination) Special Use Permit —Empire Airlines, Inc. (Aircraft Loading and Parking) Page 1 of 7 4. Use. City authorizes Permittee's non-exclusive use of the Premises for the following purpose(s): Aircraft Loading and Parking. NOTE: This permit does not guarantee the exclusive use of the area identified in Exhibit A. City reserves the right to re -assign Permittee, upon reasonable notice, to other areas as airport needs may require. Permittee shall have the right of ingress and egress to the Airport using only designated gate access locations (which may require a proximity card) for the use of the Premises. This Permit, and any access rights allowed hereunder, are for Permittee's use only and may not be transferred or assigned. Use of the Premises by Permittee is subject to the reasonable administrative actions of the City of Kenai for the protection and maintenance of the Premises and of adjacent and contiguous lands or facilities and is further subject to the following conditions: Permittee acknowledges that the use granted herein is subject to the Kenai Municipal Code and municipal regulations governing the Kenai Municipal Airport and as those laws and regulations may be amended from time to time. Solicitation of donations or operation of a business or other commercial enterprise not contemplated by this Permit is prohibited without the written consent of City. No person may repair an aircraft, aircraft engine, propeller, or apparatus in an area of the Airport other than that specifically designated for that purpose by the Airport Manager or designated representative. The Airport Manager or designated representative reserves the right to designate reasonable areas where aircraft owners may perform services on their own aircraft. 5. Airport Operations. Permittee shall ensure that the Permittee, its employees, and guests, and anyone else acting by, on behalf of, or under the authority of Permittee on the Airport, that perform any repairs or activities authorized under this Permit act in a manner that ensures the safety of people and the Airport, the protection of public health and the environment, and the safety and integrity of the Airport and any premises on the Airport. Permittee shall employ qualified personnel and maintain equipment sufficient for the purposes of this provision. The Permittee shall immediately notify City of any condition, problem, malfunction, or other occurrence that threatens the safety of the Airport, the safety of persons using the Airport, the public health or the environment, or the safety or integrity of any premises on the Airport. Special Use Permit —Empire Airlines, Inc. (Aircraft Loading and Parking) Page 2 of 7 6. Inspection. The Federal Aviation Administration (FAA) and/or City shall have the right and authority to inspect, at any time for any purpose whatsoever, the Premises as well as any and all equipment used by the Permittee under this Permit. 7. Coordination with Airport Management. Permittee shall abide by all reasonable decisions and directives of the Airport Management regarding general use of the Airport by Permittee germane to a commercial entity. 8. Radio Transmitting Equipment. Permittee shall discontinue the use of any machine or device which interferes with any government -operated transmitter, receiver, or navigation aid until the cause of the interference is eliminated. 9. Insurance. Permittee shall secure and keep in force adequate insurance, as stated below, to protect City and Permittee. Where specific limits are stated, the limits are the minimum acceptable limits. If Permittee's insurance policy contains higher limits, City is entitled to coverage to the extent of the higher limits. A. Commercial General Liability insurance, including premises, all operations, property damage, personal injury and death, broad -form contractual, with a per - occurrence limit of not less than $1,000,000 combined single limit. The policy must include an endorsement under which the insurer extends coverage to Permittee's fuel handling activities. The policy must name the City as an additional insured. B. Worker's compensation insurance with coverage for all employees engaged in work under this Permit or at the Premises as required by AS 23.30.045. Permittee is further responsible to provide worker's compensation insurance for any subcontractor who directly or indirectly provides services to Permittee under this Permit. C. Commercial Automobile Coverage with not less than $1,000,000 combined single limit per occurrence. This insurance must cover all owned, hired, and non - owned motor vehicles the Permittee uses on the Airport. The policy must name the City as an additional insured. D. All insurance required must meet the following additional requirements: i. All policies will be by a company/corporation currently rated "A-" or better by A.M. Best. ii. Permittee shall submit to the City proof of continuous insurance coverage in the form of insurance policies, certificates, endorsements, Special Use Permit —Empire Airlines, Inc. (Aircraft Loading and Parking) Page 3 of 7 10 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 thirty (30) days before any termination, cancellation, or material change in insurance coverage of any policy required hereunder. V. Evidence of insurance coverage must be submitted to City by July 1, 2026. The effective date of the insurance shall be no later than July 1, 2026. City may increase the amount or revise the type of required insurance on written demand without requiring amendments to this Permit. City will base any increase or revision on reasonable and justifiable grounds. Within two weeks of the written demand, Permittee shall submit to City evidence of insurance coverage that meets the requirements of the City. 10. Assumption of Risk. Permittee assumes full control and sole responsibility as between Permittee and City for the activities of Permittee, its personnel, employees, and persons acting on behalf of or under the authority of the Permittee anywhere on the Airport. Permittee shall provide all proper safeguards and shall assume all risks incurred in its activities on and access to the Kenai Municipal Airport and its exercise of the privileges granted in this Permit. 11. Indemnity, Defend, and Hold Harmless Agreement. Permittee agrees to fully indemnify, defend, and hold harmless, the City of Kenai, its officers, agents, employees, and volunteers from and against all actions, damages, costs, liability, claims, losses, judgments, penalties, and expenses of every type and description, including any fees and/or costs reasonably incurred by the City's staff attorneys and outside attorneys and any fees and expenses incurred in enforcing this provision (hereafter collectively referred to as "Liabilities"), to which any or all of them may be subjected, to the extent such Liabilities are caused by or result from any negligent act or omission or willful misconduct of the Permittee in connection with or arising from or out of Permittee's activities on or use of the Premises, Permittee's access to the Kenai Municipal Airport, and/or Permittee's exercise of the privileges granted in this Permit. This shall be a continuing obligation and shall remain in effect after termination of this Permit. 12. Hazardous Substances and Materials. Permittee shall conform and be subject to the requirements of 14 CFR § 139.321 regarding the handling and storage of hazardous Special Use Permit —Empire Airlines, Inc. (Aircraft Loading and Parking) Page 4 of 7 substances and materials. 13. No Discrimination. Permittee shall not discriminate against any person because of the person's race, creed, color national origin, sex, age, or handicap. Permittee recognizes the right of City to take any action necessary to enforce this requirement of the Permit. Permittee will furnish services provided under this Permit on a reasonable, and not unjustly discriminatory, basis to all users of the Airport and shall charge reasonable, and not unjustly discriminatory, prices for each product or service provided at the Airport. 14. Licenses and Permits. Permittee shall obtain and maintain all required federal, state, and local licenses, certificates, and other documents required for its operations under the Permit. Permittee shall provide proof of compliance to City upon request by the City. 15. Compliance with Law/Grant Assurances. This Permit, and Permittee's activities conducted under this Permit, is subject to all executive orders, policies and operational guidelines and all applicable requirements of federal, state, and City statutes, ordinances, and regulations in effect during the term of this Permit. Further, Permittee shall comply with all applicable requirements imposed on the Airport by federal law to ensure that the Airport's eligibility for federal money or for participation in federal aviation programs is not jeopardized. This Permit is subordinate to the City's grant assurances and federal obligations. 16. No Exclusivity. The privileges granted under this Permit are not exclusive to Permittee. City has the right to grant to others any right or privilege on the Airport. 17. Assignment. The privileges granted under this Permit are personal to Permittee and may not be assigned by Permittee. 18. No Joint Venture. City shall not be construed or held to be a partner or joint venturer of Permittee in the conduct of its business or activities on the Premises or elsewhere at the Kenai Municipal Airport. 19. No Waiver. Failure to insist upon a strict compliance with the terms, conditions, and requirements herein contained, or referred to, shall not constitute or be construed as a waiver or relinquishment of the right to exercise such terms, conditions, or requirements. 20. Personality. Permittee shall remove any and all personal property, including all vehicles, from the Premises at the termination of this Permit (or any renewal thereof). Personal property placed or used upon the Premises will be removed and/or impounded by the City, if not removed upon termination of this Permit and when so removed and/or impounded, such property may be redeemed by the owner thereof only upon the payment to the City of the costs of removal plus storage charges of $25.00 per day. The City of Special Use Permit —Empire Airlines, Inc. (Aircraft Loading and Parking) Page 5 of 7 12 Kenai is not responsible for any damage to or theft of any personality of Permittee or of its customers. 21. Termination; Default. This Permit may be terminated by either party hereto by giving thirty (30) days advance written notice to the other party. City may terminate the Permit immediately, or upon notice shorter than thirty (30) days, to protect public health and safety or due to a failure of Permittee to comply with condition or term of this Permit which failure remains uncured after notice by City to Permittee providing Permittee with a reasonable time period under the circumstances to correct the violation or breach. 22. Landing Fees; Fee Schedule. Timely payment of landing fees and other required Airport fees is a condition of this Permit and, as such, failure to timely pay landing and other airport fees is grounds for termination. Without limiting the foregoing, Permittee shall pay landing fees for aircraft landings as set out in the City's comprehensive schedule of rates, charges and fees. Permittee shall make payment within thirty (30) days following the end of each month and without demand or invoicing from City. Permittee shall also provide Airport Administration with monthly certified gross take -off weight reports within ten (10) days following the end of each month for landings for the preceding month. Airport landing fees shall be paid at the Airport Administration Building, 305 North Willow Street, Suite 200, Kenai, AK 99611. 23. Impoundment. At the discretion of the Airport Manager, City may impound any aircraft parked on the Premises after termination of this Permit. Impoundment may be accomplished by affixing a seal to the door of the aircraft or the moving of the aircraft for impoundment purposes. Inconvenience or damage that may result from such movement will be at the risk of Permittee. An impoundment fee plus a towage fee shall be charged on each aircraft impounded. In addition, a daily storage fee shall be charged for each day the aircraft remains impounded. Any impounded aircraft that is not redeemed within ninety (90) days after impoundment shall be considered abandoned and shall be subject to sale at public auction. Notice of any auction shall be published. Publication shall be in a newspaper of general circulation in that area for at least once during each of three (3) consecutive weeks not more than thirty (30) days nor less than seven (7) days before the time of the auction. 24. Definitions. As used in this Permit, "Permittee" means Empire Airlines, Inc. and where the context reasonably indicates, its officers, agents, and employees. "Airport" means the Kenai Municipal Airport. Special Use Permit —Empire Airlines, Inc. (Aircraft Loading and Parking) Page 6 of 7 13 CITY OF KENAI EMPIRE AIRLINES, INC. By: By: Terry Eubank Date Randy Lanfell Date City Manager Director of Flight Operations 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, an Alaska municipal corporation, on behalf of the City. Notary Public for Alaska My Commission Expires: STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this day of , 2026, the foregoing instrument was acknowledged before me by Randy Lanfell, Director of Flight Operations, Empire Airlines, Inc., on behalf of the State of Alaska. Notary Public for Alaska My Commission Expires: Approved as to Form: Scott Bloom City Attorney Special Use Permit —Empire Airlines, Inc. (Aircraft Loading and Parking) Page 7 of 7 F14 L I000, City of Kenai MEMORANDUM K E N 4 210 Fidalgo Ave, Kenai, AK 99611-7794 1907.283.75351 www.kenai.city TO: Airport Commission THROUGH: Mary Bondurant — Interim Airport Manager FROM: Julie Semmens, Airport Administrative Assistant II DATE: June 1, 2026 SUBJECT: State of Alaska DNR/Forestry — Special Use Permit The State of Alaska DNR/Forestry is requesting a Special Use Permit for 30,000 square feet for aircraft loading and parking related to firefighting activities. The Special Use Application and the $100 application fee was received, and the State of Alaska Certificate of Self -Insurance is on file. The Division of Forestry is current in all fees owed. The Special Use Permit is effective May 1, 2026 through August 31, 2026. Does Commission recommend Council approve the Special Use Permit to the State of Alaska DNR/Forestry? Attachments V City of Kenai Special Use Permit KENAI Application Application Date: 5/12/2026 Applicant Name of Applicant: SOA, DNR, Division of Forestry & Fire Protection Mailing Address: 101 Airport Road city: Palmer State: �AK Zip Code: 99645 Phone Number(s): Home Phone: ( 761-6357 work/ Message Phone: ( ) E-mail: (Optional) madelyn.lowe@alaska.gov Name to Appear on Permit: Division of Forestry & Fire Protection Mailing Address: 101 Airport Road city: Palmer State: �AK Zip Code: 99645 Phone Number(s): Home Phone: ( 761-6305 Work/ Message Phone: ( ) E-mail: (Optional) victoria.vinson@alaska.gov; andy.jones@alaska.gov Type of Applicant: ❑ Individual (at least 18 years of age) ❑ Partnership ❑ Corporation 0 Government ❑ Limited Liability Company (LLC) ❑ Other Property Information Legal or physical description of the property: Apron Space immediately adjacent to Lease lot 2545 Description of the proposed business or activity intended: Activities in support of wildland fire suppression and emergency response operations. Is the area to be used in front of or immediately adjacent to any established business offering the same or similar products or services upon a fixed location? ❑ YES 0 NO Would the use under this permit interfere with other businesses through excessive noise, odor, or other nuisances? ❑ YES 0 NO If you answered yes to any of the above questions, please explain: What is the term requested (not to exceed one year)?4 months Requested Starting Date:May 12, 2026 Signature:Q 1. " fflk� Date: 5/1 2/26 Print Name: Madelyn Lowe Title: Procurement Specialist For City Use Only: Date Application Fee Received: ❑ General Fund ❑ Airport Reserve Land City Council Action/Resolution: ❑ Airport Fund ❑ Outside Airport Reserve Account Number: E SPECIAL USE PERMIT The CITY OF KENAI (City) grants to STATE OF ALASKA DEPARTMENT OF NATURAL RESOURCES/DIVISION OF FORESTRY (Permittee), whose address is 550 W. Seventh Avenue, Suite 1450, Anchorage, AK 99501-3566, a Special Use Permit to conduct aeronautical and/or aviation -related activities at the Kenai Municipal Airport subject to the requirements and the conditions set forth below. 1. Premises. Permittee shall have the non-exclusive right to use 30,000 square feet as described in the attached diagram shown in the attached Exhibit A for the uses identified in this Permit. 2. Term. The term of this Permit shall be for four months commencing on May 1, 2026, and ending on August 31, 2026. Regardless of the date of signature, this Permit shall be effective as of May 1, 2026. 3. Permit Fees. Permittee shall pay the following fees for the privileges extended to Permittee under this Permit: A. Permit: Permittee shall pay a monthly fee plus applicable sales tax as follows: May - June $ 1600/ month July - August* $XXXX/ month *Adjusted for the published City of Kenai Fee Schedule of Rates, Charges and Fees for Fiscal Year 2027. B. Proximity Card for Gate Access: In addition to the general permit fee, Permittee shall pay a deposit of One Hundred Dollars ($100.00) for the use of each proximity card issued to Permittee by City to allow for gate access to the Airport to conduct the uses permitted hereunder. City shall refund this deposit to Permittee when the card is returned to City. City may exercise a right of offset to apply the deposit to any outstanding balance due to City from Permittee at the termination of this Permit. C. Other Fees: City may assess additional fees for aviation or aviation support activities and uses not defined in this Permit. If a fee has not been established for those activities or services, a fee will be established by the Airport Manager. Payment shall be directed to City of Kenai, ATTN: Finance Department, 210 Fidalgo Avenue, Kenai, AK 99611 and a courtesy notice of payment provided to Airport Administration at 305 North Willow Street, Suite 200, Kenai, AK 99611. All permit fees are payable in advance of each month unless otherwise provided. In the event of delinquency, interest at the rate of 10% per annum, and penalty of 10% shall also be due Special Use Permit—DNR/Forestry (Parking) Page 1 of 7 17 (KMC 1.75.010). Interest shall accrue from the date due until the date paid in full. Failure to timely make payments is grounds for termination of this Permit. (See ¶ 22, Termination). 4. Use. City authorizes Permittee's non-exclusive use of the Premises for the following purpose(s): Aircraft loading and parking. NOTE: This permit does not guarantee the exclusive use of the area identified in Exhibit A. City reserves the right to re -assign Permittee, upon reasonable notice, to other areas as airport needs may require. Permittee shall have the right of ingress and egress to the Airport using only designated gate access locations (which may require a proximity card) for the use of the Premises. This Permit, and any access rights allowed hereunder, are for Permittee's use only and may not be transferred or assigned. Use of the Premises by Permittee is subject to the reasonable administrative actions of the City of Kenai for the protection and maintenance of the Premises and of adjacent and contiguous lands or facilities and is further subject to the following conditions: Permittee acknowledges that the use granted herein is subject to the Kenai Municipal Code and municipal regulations governing the Kenai Municipal Airport and as those laws and regulations may be amended from time to time. Solicitation of donations or operation of a business or other commercial enterprise not contemplated by this Permit is prohibited without the written consent of City. No person may repair an aircraft, aircraft engine, propeller, or apparatus in an area of the Airport other than that specifically designated for that purpose by the Airport Manager or designated representative. The Airport Manager or designated representative reserves the right to designate reasonable areas where aircraft owners may perform services on their own aircraft. 5. Airport Operations. Permittee shall ensure that the Permittee, its employees, and guests, and anyone else acting by, on behalf of, or under the authority of Permittee on the Airport, that perform any repairs or activities authorized under this Permit act in a manner that ensures the safety of people and the Airport, the protection of public health and the environment, and the safety and integrity of the Airport and any premises on the Airport. Permittee shall employ qualified personnel and maintain equipment sufficient for the purposes of this provision. The Permittee shall immediately notify City of any condition, Special Use Permit—DNR/Forestry (Parking) Page 2 of 7 problem, malfunction, or other occurrence that threatens the safety of the Airport, the safety of persons using the Airport, the public health or the environment, or the safety or integrity of any premises on the Airport. 6. Inspection. The Federal Aviation Administration (FAA) and/or City shall have the right and authority to inspect, at any time for any purpose whatsoever, the Premises as well as any and all equipment used by the Permittee under this Permit. 7. Coordination with Airport Management. Permittee shall coordinate all activities on the Airport with Airport Management, or a designated representative, and shall abide by all reasonable decisions and directives of the Airport Management regarding general use of the Airport by Permittee. 8. Radio Transmitting Equipment. Permittee shall discontinue the use of any machine or device which interferes with any government -operated transmitter, receiver, or navigation aid until the cause of the interference is eliminated. 9. Insurance. Permittee shall secure and keep in force adequate insurance, as stated below, to protect City and Permittee. Where specific limits are stated, the limits are the minimum acceptable limits. If Permittee's insurance policy contains higher limits, City is entitled to coverage to the extent of the higher limits. A. Commercial General Liability insurance, including premises, all operations, property damage, personal injury and death, broad -form contractual, with a per - occurrence limit of not less than $1,000,000 combined single limit. The policy must include an endorsement under which the insurer extends coverage to Permittee's fuel handling activities. The policy must name the City as an additional insured. B. Worker's compensation insurance with coverage for all employees engaged in work under this Permit or at the Premises as required by AS 23.30.045. Permittee is further responsible to provide worker's compensation insurance for any subcontractor who directly or indirectly provides services to Permittee under this Permit. C. Commercial Automobile Coverage with not less than $1,000,000 combined single limit per occurrence. This insurance must cover all owned, hired, and non - owned motor vehicles the Permittee uses on the Airport. The policy must name the City as an additional insured. D. All insurance required must meet the following additional requirements: i. All policies will be by a company/corporation currently rated "A -"or Special Use Permit—DNR/Forestry (Parking) Page 3 of 7 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 30 days before any termination, cancellation, or material change in insurance coverage of any policy required hereunder. V. Evidence of insurance coverage must be submitted to City by May 1, 2026. The effective date of the insurance shall be no later than May 1, 2026. City may increase the amount or revise the type of required insurance on written demand without requiring amendments to this Permit. City will base any increase or revision on reasonable and justifiable grounds. Within two weeks of the written demand, Permittee shall submit to City evidence of insurance coverage that meets the requirements of the City. 10. Assumption of Risk. Permittee assumes full control and sole responsibility as between Permittee and City for the activities of Permittee, its personnel, employees, and persons acting on behalf of or under the authority of the Permittee anywhere on the Airport. Permittee shall provide all proper safeguards and shall assume all risks incurred in its activities on and access to the Kenai Municipal Airport and its exercise of the privileges granted in this Permit. 11. Indemnity, Defend, and Hold Harmless Agreement. Permittee agrees to fully indemnify, defend, and hold harmless, the City of Kenai, its officers, agents, employees, and volunteers from and against all actions, damages, costs, liability, claims, losses, judgments, penalties, and expenses of every type and description, including any fees and/or costs reasonably incurred by the City's staff attorneys and outside attorneys and any fees and expenses incurred in enforcing this provision (hereafter collectively referred to as "Liabilities"), to which any or all of them may be subjected, to the extent such Liabilities are caused by or result from any negligent act or omission or willful misconduct of the Permittee in connection with or arising from or out of Permittee's activities on or use of the Premises, Permittee's access to the Kenai Municipal Airport, and/or Permittee's Special Use Permit—DNR/Forestry (Parking) Page 4 of 7 20 exercise of the privileges granted in this Permit. This shall be a continuing obligation and shall remain in effect after termination of this Permit. 12. Hazardous Substances and Materials. Permittee shall conform and be subject to the requirements of 14 CFR § 139.321 regarding the handling and storage of hazardous substances and materials. 13. No Discrimination. Permittee shall not discriminate against any person because of the person's race, creed, color national origin, sex, age, or handicap. Permittee recognizes the right of City to take any action necessary to enforce this requirement of the Permit. Permittee will furnish services provided under this Permit on a reasonable, and not unjustly discriminatory, basis to all users of the Airport and shall charge reasonable, and not unjustly discriminatory, prices for each product or service provided at the Airport. 14. Licenses and Permits. Permittee shall obtain and maintain all required federal, state, and local licenses, certificates, and other documents required for its operations under the Permit. Permittee shall provide proof of compliance to City upon request by the City. 15. Compliance with Law/Grant Assurances. This Permit, and Permittee's activities conducted under this Permit, is subject to all executive orders, policies and operational guidelines and all applicable requirements of federal, state, and City statutes, ordinances, and regulations in effect during the term of this Permit. Further, Permittee shall comply with all applicable requirements imposed on the Airport by federal law to ensure that the Airport's eligibility for federal money or for participation in federal aviation programs is not jeopardized. This Permit is subordinate to the City's grant assurances and federal obligations. 16. No Exclusivity. The privileges granted under this Permit are not exclusive to Permittee. City has the right to grant to others any right or privilege on the Airport. 17. Assignment. The privileges granted under this Permit are personal to Permittee and may not be assigned by Permittee. 18. No Joint Venture. City shall not be construed or held to be a partner or joint venturer of Permittee in the conduct of its business or activities on the Premises or elsewhere at the Kenai Municipal Airport. 19. No Waiver. Failure to insist upon a strict compliance with the terms, conditions, and requirements herein contained, or referred to, shall not constitute or be construed as a waiver or relinquishment of the right to exercise such terms, conditions, or requirements. Special Use Permit—DNR/Forestry (Parking) Page 5 of 7 0 20. Personality. Permittee shall remove any and all personal property, including all vehicles, from the Premises at the termination of this Permit (or any renewal thereof). Personal property placed or used upon the Premises will be removed and/or impounded by the City, if not removed upon termination of this Permit and when so removed and/or impounded, such property may be redeemed by the owner thereof only upon the payment to the City of the costs of removal plus storage charges of $25.00 per day. The City of Kenai is not responsible for any damage to or theft of any personalty of Permittee or of its customers. 21. Termination; Default. This Permit may be terminated by either party hereto by giving 30 days advance written notice to the other party. City may terminate the Permit immediately, or upon notice shorter than 30 days, to protect public health and safety or due to a failure of Permittee to comply with condition or term of this Permit which failure remains uncured after notice by City to Permittee providing Permittee with a reasonable time period under the circumstances to correct the violation or breach. 22. Landing Fees; Fee Schedule. Timely payment of landing fees and other required Airport fees is a condition of this Permit and, as such, failure to timely pay landing and other airport fees is grounds for termination. Without limiting the foregoing, Permittee shall pay landing fees for aircraft landings as set out in the City's comprehensive schedule of rates, charges and fees. Permittee shall make payment within 30 days following the end of each month and without demand or invoicing from City. Permittee shall also provide Airport Administration with monthly certified gross take -off weight reports within ten days following the end of each month for landings for the preceding month. Airport landing fees shall be paid at the Airport Administration Building, 305 North Willow Street, Suite 200, Kenai, AK 99611. 23. Impoundment. At the discretion of the Airport Manager, City may impound any aircraft parked on the Premises after termination of this Permit. Impoundment may be accomplished by affixing a seal to the door of the aircraft or the moving of the aircraft for impoundment purposes. Inconvenience or damage that may result from such movement will be at the risk of Permittee. An impoundment fee plus a towage fee shall be charged on each aircraft impounded. In addition, a daily storage fee shall be charged for each day the aircraft remains impounded. Any impounded aircraft that is not redeemed within 90 days after impoundment shall be considered abandoned and shall be subject to sale at public auction. Notice of any auction shall be published. Publication shall be in a newspaper of general circulation in that area for at least once during each of three consecutive weeks not more than 30 days nor less than seven days before the time of the auction. Special Use Permit—DNR/Forestry (Parking) Page 6 of 7 22 CITY OF KENAI Terry Eubank City Manager STATE OF ALASKA THIRD JUDICIAL DISTRICT SOA DNR, DIVISION OF FORESTRY Lo Date Madelyn Lowe Fire Procurement Officer, Division of Forestry ACKNOWLEDGMENTS ) ss. Date THIS IS TO CERTIFY that on this day of , 2026, the foregoing instrument was acknowledged before me by Terry Eubank, City Manager, of the City of Kenai, an Alaska municipal corporation, on behalf of the City. Notary Public for Alaska My Commission Expires: STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this day of , 2026, the foregoing instrument was acknowledged before me by Madelyn Lowe, Fire Procurement Officer, DNR/Division of Forestry, on behalf of the State of Alaska. Notary Public for Alaska My Commission Expires: APPROVED AS TO FORM: Scott M. Bloom, City Attorney Special Use Permit—DNR/Forestry (Parking) Page 7 of 7 23 City of Kenai 1 210 Fidalgo Ave, Kenai, AK 99611-7794 1907.283.7535 1 www.6nai.city MEMORANDUM TO: Airport Commission THROUGH: Mary Bondurant, Interim Airport Manager FROM: Julie Semmens, Administrative Assistant II DATE: June 1, 2026 SUBJECT: Second Amendment to Agreement for Automatic Teller Machine (ATM) Services On July 1, 2024 the City of Kenai entered into an Agreement for Tyler Distributing Company, Inc. for Automatic Teller Machine (ATM) services, for a period of one year with the option to extend for an additional four (4) years if the City and contractor mutually agree in writing. The Contractor requests to renew under the same terms and conditions. Attached for your review and recommendation is the Second Amendment to Agreement for Automatic Teller Machine (ATM) services which shall be effective July 1, 2026. Does Commission recommend Council Approve the First Amendment to the Agreement for ATM Services with Tyler Distributing Company, Inc.? Attachment- 2nd Amendment F24 SECOND EXTENSION TO AGREEMENT FOR AN AUTOMATIC TELLER MACHINE IN THE AIRPORT TERMINAL The Automatic Teller Machine (ATM) Concession Agreement made the 1st day of July 2024 for one-year, by and between the CITY OF KENAI, hereinafter called "Owner", whose address is 210 Fidalgo Avenue, Kenai, AK 99611-7794, and, Tyler Distributing Company, Inc, whose mailing address is P.O. Box 96, Kenai, AK 99611, hereinafter called "Contractor," is hereby amended as follows: 1). Pursuant to Article II of the Agreement, the term of the Agreement is extended for one year, beginning on July 1, 2026 and ending on June 30, 2027. 2). All other terms and conditions of the Agreement shall remain unchanged and in full force and effect. DATED this day of 2026. CITY OF KENAI: Terry Eubank, City Manager CONCESSIONAIRE: Michael Metteer, President F25 STATE OF ALASKA ) )ss THIRD JUDICIAL DISTRICT ) The foregoing instrument was acknowledged before me this day of 2026, by Terry Eubank, City Manager for the City of Kenai. Notary Public for Alaska My Commission Expires: STATE OF ALASKA ) )ss THIRD JUDICIAL DISTRICT ) The foregoing instrument was acknowledged before me this day of , 2026, by Michael Metteer, Tyler Distributing Company, Inc., an Alaskan corporation on behalf of the corporation. Notary Public for Alaska My Commission Expires: Approved as for form:,,, -- Scott Bloom, City Attorney F26 J Kenai City Council - Regular Meeting May 20, 2026 — 6:00 PM Kenai City Council Chambers KENA 1 210 Fidalgo Avenue, Kenai, Alaska www.kenai.city **Telephonic/Virtual Information on Page 3** Action Agenda A. CALL TO ORDER 1. Pledge of Allegiance 2. Roll Call 3. Approval of the Agenda and Consent Agenda (Public comments on Consent Agenda Items limited to three (3) minutes per speaker; thirty (30) minutes aggregated) *All items listed with an asterisk (*) are considered to be routine and non -controversial by the council and will be approved by one motion. There will be no separate discussion of these items unless a council member so requests, in which case the item will be removed from the consent agenda and considered in its normal sequence on the agenda as part of the General Orders. B. SCHEDULED ADMINISTRATIVE REPORTS Citywide Streetlight Assessment, Brian Gaze, CEO, Evari Consulting. C. SCHEDULED PUBLIC COMMENTS (Public comments limited to ten (10) minutes per speaker; twenty (20) minutes aggregated) D. UNSCHEDULED PUBLIC COMMENTS (Public comments limited to three (3) minutes per speaker, thirty (30) minutes aggregated) E. PUBLIC HEARINGS ENACTED UNANIMOUSLY Ordinance No. 3518-2026 - Amending Kenai Municipal Code Title 6 - Elections, Chapters 6.05, 6.15 and 6.40 Relating to Election Dates, Candidate Filing, Compensation of Election Officials, and Canvassing of Elections. (City Clerk) 2. ENACTED UNANIMOUSLY Ordinance No Funds from the Alaska High Intensity Drug Expenditures (Administration) 3519-2026 - Accepting and Appropriating Grant Trafficking Area for Drug Investigation Overtime 3. ENACTED AS AMENDED UNANIMOUSLY Ordinance No. 3520-2026 - Amending Kenai Municipal Code Chapter 14.10 - Subdivision Regulations and Amending Kenai Municipal Code Section 18.10.030 - Street Improvements to Remove Road Design Standards from Code and Replace them with a Street Design Standards Manual. (Administration) 4. ADOPTED UNANIMOUSLY Resolution No. 2026-35 -Authorizing a Contract Award for 2026 Waste Water Treatment Plant Dumpster Services. (Administration) 5. ADOPTED UNANIMOUSLY Resolution No. 2026-36 - Approving a Lease Utilizing a Non - Standard Lease Form on Airport Reserve Lands Between the City of Kenai and the Federal Aviation Administration for the Automated Flight Service Station and Satellite Communication Network Facilities on Lot 7A-1 FBO Subdivision No. 5. (Administration) Kenai City Council - Regular Meeting Page 1 of 3 May 20, 2026 F27 F. MINUTES 1. *Regular Meeting of May 6, 2026. (City Clerk) G. UNFINISHED BUSINESS H. NEW BUSINESS 1. *Action/Approval - Bills to be Ratified. (Administration) 2. *Action/Approval - Special Use Permit to Jeremy Mastre, DBA: River Rock Outdoors, LLC for Commercial Operations at the Kenai Municipal Airport Float Plane Basin. (Administration) 3. *Action/Approval - Special Use Permit to Crowley Fuels LLC for Aircraft Fueling Service on the Apron. (Administration) 4. *Ordinance No. 3521-2026 - Increasing Estimated Revenues and Appropriations in the General Fund - Police Department and Accepting a Grant from the US Department of Transportation Passed Through the State of Alaska Department of Transportation and Public Facilities for Traffic Enforcement Overtime Expenditures. (Administration) 5. *Ordinance No. 3522-2026 - Accepting an Alaska Division of Forestry Volunteer Fire Assistance Grant in the Amount of $8,602.97 and Appropriating Funds for the Purchase of Wildland and Firefighting Equipment for the City of Kenai Fire Department. (Administration) 6. *Ordinance No. 3523-2026 - Adopting the Annual Budget, Salary Schedule and Employee Classification Plan for the Fiscal Year Commencing July 1, 2026 and Ending June 30, 2027 and Committing $4,584,359 of General Fund, Fund Balance for Future Capital Improvements. (Administration) 7. *Ordinance No. 3524-2026 - Amending Kenai Municipal Code Section 23.25.065 - Shift Differential Pay, to Update Shift Hours and to Clarify Eligibility; and Section 23.55.030 Qualification Pay, to Ensure Appropriate Compensation and Benefits to City Employees Comparable to Other Places of Public Employment Which Allows the City to Recruit and Retain Qualified Employees. (Administration) 8. *Ordinance No. 3525-2026 - Enacting Kenai Municipal Code Section 14.20.246 - Tent Camping on Private Property, Amending Kenai Municipal Code Section 14.20.320 - Definitions to Provide Definitions Regarding Tents and Campgrounds, Amending Kenai Municipal Code Section 13.10.060 - Sanitary Facilities for Camping on Private Property, and Amending Kenai Municipal Code Section 14.22 - Land Use Table. (Administration) 9. *Ordinance No. 3526-2026 - Amending the Official Zoning Map by Rezoning Parcel 04106318, with a Physical Address of 6575 Kenai Spur Highway, from a Split Zone of Rural Residential (RR) and General Commercial (CG) to the Zoning District of General Commercial (CG). (Administration) 10. *Ordinance No. 3527-2026 - Determining that an Approximately 7,682 Square Foot Portion of City -Owned Property Described as that Portion of Govt Lot 10 Lying Southwest of Bridge Access Rd & Lying North & Northwest & Northeast of USS 4563 Amended, is Not Needed for a Public Purpose and Authorizing the Sale and Exchange of the Property to Rabuf, LLC. (Administration) 11. *Action/Approval - Purchase Orders and Purchase Order Amendments Requiring Council Approval in Accordance with KMC 7.15.020. (Administration) Kenai City Council - Regular Meeting Page 2 of 3 May 20, 2026 F28] COMMISSION REPORTS 1. Council on Aging Commission 2. Airport Commission 3. Parks and Recreation Commission 4. Planning and Zoning Commission 5. Beautification Commission J. REPORT OF THE MAYOR K. ADMINISTRATION REPORTS 1. City Manager 2. City Attorney 3. City Clerk L. ADDITIONAL PUBLIC COMMENTS 1. Citizens Comments (Public comments limited to five (5) minutes per speaker) 2. Council Comments M. EXECUTIVE SESSION N. PENDING ITEMS 1. 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: March 18, 2026 postponed to April 1, 2026; April 1, 2026 postponed to May 6, 2026; May 6, 2026 referred to the Planning & Zoning Commissions May 27, 2026 meeting and postponed to June 3, 2026.1 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/GYIEt OfSGgN5HGQlk6zOg Kenai City Council - Regular Meeting Page 3 of 3 May 20, 2026 29 y Kenai City Council - Regular Meeting June 03, 2026 — 6:00 PM Kenai City Council Chambers Kr � � I 210 Fidalgo Avenue, Kenai, Alaska LC www.kenai.city "Telephonic/Virtual Information on Page 4** Action Agenda A. CALL TO ORDER 1. Pledge of Allegiance 2. Roll Call 3. Approval of the Agenda and Consent Agenda (Public comments on Consent Agenda Items limited to three (3) minutes per speaker, thirty (30) minutes aggregated) *All items listed with an asterisk (*) are considered to be routine and non -controversial by the council and will be approved by one motion. There will be no separate discussion of these items unless a council member so requests, in which case the item will be removed from the consent agenda and considered in its normal sequence on the agenda as part of the General Orders. B. SCHEDULED ADMINISTRATIVE REPORTS C. SCHEDULED PUBLIC COMMENTS (Public comments limited to ten (10) minutes per speaker, - twenty (20) minutes aggregated) D. UNSCHEDULED PUBLIC COMMENTS (Public comments limited to three (3) minutes per speaker, - thirty (30) minutes aggregated) E. PUBLIC HEARINGS ENACTED WITHOUT OBJECTION Ordinance No. 3521-2026 - Increasing Estimated Revenues and Appropriations in the General Fund - Police Department and Accepting a Grant from the US Department of Transportation Passed Through the State of Alaska Department of Transportation and Public Facilities for Traffic Enforcement Overtime Expenditures. (Administration) 2. ENACTED WITHOUT OBJECTION Ordinance No. 3522-2026 -Accepting an Alaska Division of Forestry Volunteer Fire Assistance Grant in the Amount of $8,602.97 and Appropriating Funds for the Purchase of Wildland and Firefighting Equipment for the City of Kenai Fire Department. (Administration) 3. ENACTED AS AMENDED WITHOUT OBJECTION Ordinance No. 3523-2026 - Adopting the Annual Budget, Salary Schedule and Employee Classification Plan for the Fiscal Year Commencing July 1, 2026 and Ending June 30, 2027 and Committing $4,584,359 of General Fund, Fund Balance for Future Capital Improvements. (Administration) 4. ENACTED WITHOUT OBJECTION Ordinance No. 3524-2026 - Amending Kenai Municipal Code Section 23.25.065 - Shift Differential Pay, to Update Shift Hours and to Clarify Eligibility; and Section 23.55.030 Qualification Pay, to Ensure Appropriate Compensation and Benefits to City Employees Comparable to Other Places of Public Employment Which Allows the City to Recruit and Retain Qualified Employees. (Administration) Kenai City Council - Regular Meeting Page 1 of 4 June 03, 2026 F30] 5. ENACTED AS AMENDED WITHOUT OBJECTION Ordinance No. 3525-2026 - Enacting Kenai Municipal Code Section 14.20.246 - Tent Camping on Private Property, Amending Kenai Municipal Code Section 14.20.320 - Definitions to Provide Definitions Regarding Tents and Campgrounds, Amending Kenai Municipal Code Section 13.10.060 - Sanitary Facilities for Camping on Private Property, and Amending Kenai Municipal Code Section 14.22 - Land Use Table. (Administration) 6. ENACTED WITHOUT OBJECTION Ordinance No. 3526-2026 - Amending the Official Zoning Map by Rezoning Parcel 04106318, with a Physical Address of 6575 Kenai Spur Highway, from a Split Zone of Rural Residential (RR) and General Commercial (CG) to the Zoning District of General Commercial (CG). (Administration) 7. ENACTED WITHOUT OBJECTION Ordinance No. 3527-2026 - Determining that an Approximately 7,682 Square Foot Portion of City -Owned Property Described as that Portion of Govt Lot 10 Lying Southwest of Bridge Access Rd & Lying North & Northwest & Northeast of USS 4563 Amended, is Not Needed for a Public Purpose and Authorizing the Sale and Exchange of the Property to Rabuf, LLC. (Administration) 8. ADOPTED WITHOUT OBJECTION Resolution No. 2026-37 - Fixing the Rate of Levy of Property Tax for the Fiscal Year Commencing July 1, 2026 and Ending June 30, 2027. (Administration) 9. ADOPTED WITHOUT OBJECTION Resolution No. 2026-38 - Amending the Comprehensive Schedule of Rates, Charges and Fees to Incorporate Fiscal Year 2027 Budget Changes to Include Adjusting Airport Fees, Library Fees, Fire Department Fees, Land Management Fees, Parks and Recreation Fees, Planning and Zoning Fee, Public Works Fee, Water and Sewer Fees and Adjusting the Monthly Rental Rates for Vintage Pointe. (Administration) 10. ADOPTED WITHOUT OBJECTION Resolution No. 2026-39 - Authorizing a Contract Award for the 2026 Dipnet Dumpsters and Portalets. (Administration) 11. ADOPTED WITHOUT OBJECTION Resolution No. 2026-40 - Authorizing a Contract Award for the 2026 Congregate Housing Caretaker. (Administration) 12. ADOPTED WITHOUT OBJECTION Resolution No. 2026-41 - Declaring a Right -of -Way for a 60-Foot by 155.68-Foot Portion of the 60-Foot Unnamed Right -of -Way Located Along the Southeastern Boundary of Lot 11-A, Block 8, Black Gold Estates 2025 Replat, Plat KN 2025- 70, and as Set Forth on the Attached Exhibit "A" is Not Needed for a Public Purpose and Consenting to its Vacation. (Administration) 13. ADOPTED WITHOUT OBJECTION Resolution No. 2026-42 - Approving a Memorandum of Agreement Between the City of Kenai and the Kenai Peninsula Borough for Intergovernmental Administration of Borough and City Municipal Elections. (City Clerk) 14. ADOPTED WITHOUT OBJECTION Resolution No. 2026-43 - Authorizing a Contract Award for the 2026 Street Lights Repair and Maintenance with Utility Locates Contract. (Administration) 15. ADOPTED WITHOUT OBJECTION Resolution No. 2026-44 - Authorizing a Contract Award for the 2026 Aliak Storm Water and Paving Repair Construction. (Administration) 16. ADOPTED WITHOUT OBJECTION Resolution No. 2026-45 - Authorizing a Contract Award for the 2026 Street Crack Sealing Contract. (Administration) 17. ADOPTED WITHOUT OBJECTION Resolution No. 2026-46 - Accepting and Adopting the Kenai Parks and Recreation Master Plan. (Administration) Kenai City Council - Regular Meeting Page 2 of 4 June 03, 2026 F31 F. MINUTES *Regular Meeting of May 20, 2026. (City Clerk) G. UNFINISHED BUSINESS ENACTED AS AMENDED 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: March 18, 2026 postponed to April 1, 2026; April 1, 2026 postponed to May 6, 2026; May 6, 2026 amended by substitute, amended, referred to the May 27, 2026 Planning and Zoning Commission meeting and postponed to June 3, 2026.] H. NEW BUSINESS *Action/Approval - Bills to be Ratified. (Administration) 2. *Action/Approval - Confirmation of Mayoral Nomination of Missy Wallace to the Beautification Commission. (Knackstedt) 3. *Ordinance No. 3528-2026 - Accepting and Appropriating $42,867.04 in Asset Forfeiture Sharing Funds for the Purchase of Law Enforcement Equipment into the General Fund, Police Department. (Administration) 4. *Ordinance No. 3529-2026 - Increasing Estimated Revenues and Appropriations in the General Fund - City Manager for Leave Cash -Out, Finance Information Technology Salaries and Benefits, and Public Works Administration Salaries and Benefits in Excess of Budgeted Amounts. (Administration) 5. *Ordinance No. 3530-2026 -Accepting and Appropriating a Grant Awarded to the Kenai Senior Center from the Kenai Peninsula Foundation, Inc. and the Alaska Community Foundation, Inc., Through the Elmer and Ruth Schwantes Fund for the Purchase of Meals on Wheels Delivery Bags. (Administration) COMMISSION REPORTS 1. Council on Aging Commission 2. Airport Commission 3. Parks and Recreation Commission 4. Planning and Zoning Commission 5. Beautification Commission J. REPORT OF THE MAYOR K. ADMINISTRATION REPORTS 1. City Manager 2. City Attorney 3. City Clerk L. ADDITIONAL PUBLIC COMMENTS Citizens Comments (Public comments limited to five (5) minutes per speaker) 2. Council Comments M. EXECUTIVE SESSION Kenai City Council - Regular Meeting Page 3 of 4 June 03, 2026 F32 N. PENDING ITEMS O. ADJOURNMENT P. INFORMATION ITEMS The agenda and supporting documents are posted on the City's website at www.kenai.city. Copies of resolutions and ordinances are available at the City Clerk's Office or outside the Council Chamber prior to the meeting. For additional information, please contact the City Clerk at 907-283-8231. Registration is required to join the meeting remotely through Zoom. Please use the following link to register: https:Hus02web.zoom.us/meeting/register/PfwuByHkSxGYbbHz8W6hWg Kenai City Council - Regular Meeting Page 4 of 4 June 03, 2026 33 L I000, City of Kenai MEMORANDUM K E N 4 210 Fidalgo Ave, Kenai, AK 99611-7794 1907.283.75351 www.kenai.city TO: Terry Eubank, City Manager & Dave Swarner, Finance Director THROUGH: Mary Bondurant, Interim Airport Manager FROM: Julie Semmens, Administrative Assistant II DATE: May 21, 2026 SUBJECT: PlanePass — Airspace Fee Billing & Collection Service This memo is to provide awareness of an opportunity we recently discovered with Vector Airport Systems for capturing landing and parking fees. Vector Airport Systems offers a turn -key, automated aircraft identification and billing service called PlanePass. PlanePass utilizes camera's, ADS-B, AirNav and FlightAware to track and identify aircraft tail numbers. The system automatically bills the registered owner or operator for various fees including landing and parking fees and has a successful 99.6% collection rate at one year. Vector Airport Systems then charges a percentage of total landing fees collected as their fee. This service has no upfront cost. Due to Kenai Municipal Airport potentially being the first in the state to utilize the system, they are offering a service fee percentage of 12% the first year and 16% the following two years for a three- year contract. When Vector Airport Systems pulled last year's data for Kenai Municipal Airport, it showed we have significant leakage in collectable landing fees. The landing data collected July 2025-March 2026 shows missed revenue totaling around $136,000. Landing fees are currently collected using an honor -only system. Airport staff are only available 8 out of 24 hours of the day, 5 days a week, that aircraft operate and are unable to dedicate their full attention to tracking and billing signatory, non -signatory, and all other transient air traffic. In short, the data appears to show the addition of Planepass will increase overall revenue to the airport and allow staff to focus time and energy on other pressing matters. Based on fiscal year -to date data, we can expect to spend around $70,000 in fees owed to Vector Airport Systems, and increase after -expense profit to the airport by around $80,000 per year. Attached you will find Exhibits A, B, C, and D with additional information and reports on this product. We appreciate your consideration of this opportunity and look forward to scheduling a meeting to discuss. F34] Pt ANE ivp-rtitr � •yam�� PlaneParss� Overflightt"r Vecr Airport stems is a proven, technology -driven � `ervice that maximizes revenue from 00. airspace navigation fees. MORE REVENUE, FASTER " Vector's PlanePass service more than pays for itself in increased revenue and cost savings " Mork Duebner Director of Aviation, City of Dallas PLANEPASS PLANEPASS PLANEPASS AIRCRAFT DATA FUSION Ground -based ^ ADS-B and M LAT data Satellite -based Tracking Local radar flight tracking data Flight plans and schedule Flight permit data Our in-house staff handles it all: Researches aircraft operator, model, and weight Automatically applies airspace fee rules Delivers invoices to aircraft operators a Handles all customer service Actively collects fees with 99.6% success Processes payments through escrow account Provides intuitive web -based aircraft operations display 100% OF AIRCRAFT OPS CAPTURED F PLANEPASS BACK OFFICE �1 4r) Billing Service and Collections Aircraft Operators Fa Reports k d =: Gt` Payments 99*6 /O COLLECTION SUCCESS RATE M Escrow Account A