Kenai City Council enacts airport master plan funding, salary changes and several contracts; street‑name change postponed

The Kenai City Council on July 2 adopted several ordinances and resolutions affecting airport planning, city staffing and public‑works contracts and approved lease terms for airport reserve land. The council also voted to postpone indefinitely a proposed renaming of South Spruce Street to Kenai Beach Street after public comment from agencies and local organizations.

Major actions at a glance

• Airport Master Plan (Ordinance 34-79-2025): The council enacted Ordinance 34‑79‑2025 to increase estimated revenues and appropriations in the Airport Improvements Capital Project Fund, accept a Federal Aviation Administration (FAA) grant and award a professional services agreement for phase 2 of the Kenai Municipal Airport Master Plan. Vice Mayor Knackstedt moved the ordinance; the council approved it on a roll call with seven yes votes (Council members Askin, Douthit, Casena, Daniel, Sonart; Mayor Gabriel; Vice Mayor Knackstedt). City staff said the combined cost for phases 1 and 2 is about $1,750,000; staff emphasized the master plan is required to secure FAA capital funding for large projects such as a planned main taxiway reconstruction estimated at $20–$30 million.

• Temporary employee salary schedule amendment (Ordinance 34-80-2025): The council retroactively amended the FY26 salary schedule for temporary employees (July 1, 2025–June 30, 2026). The ordinance was moved by the vice mayor and enacted on a 7‑0 roll call.

• Airport reserve land lease (Resolution 2025‑45): The council authorized the city manager to execute a new 45‑year lease of airport reserve lands to Schilling Reynolds LLC for Lot 3, Block 2, General Aviation Apron Subdivision No. 1. Staff explained the 45‑year term is supported by a certified engineer’s opinion on asset life; the lease uses the city’s new form and raises the lease rate from 6% to 8% of appraised value. The resolution was adopted by unanimous consent; no roll call tally was recorded.

• Street light repair and maintenance contract (Resolution 2025‑46): The council awarded the annual contract for street light repair, maintenance and locates. Staff said the contract covers routine call‑outs and locates, with materials billed at cost plus 10% and negotiated pricing for major repairs. Council discussion noted the city’s operating budget for these services is about $65,000 and the contract authorization was up to roughly $107,000; some capital funds (approximately $400,000 previously appropriated) are available for larger projects once a current streetlight assessment is complete. The resolution was adopted by unanimous consent.

• Trading Bay Road sewer insulation project (Resolution 2025‑47): Council approved a contract for insulation work on sewer services along Trading Bay Road, a project described as insulating services (not the main) to address repeated freeze incidents. Staff said the work will include removing asphalt, placing about six inches of insulation across the top of the main and restoring surface pavement. The resolution was adopted by unanimous consent.

• South Spruce Street renaming (Resolution 2025‑38): A proposal to rename South Spruce Street to Kenai Beach Street was the subject of public comment from non‑profits and businesses on July 2. Several speakers—including the director of a 40‑year‑old domestic violence and sexual assault shelter—outlined significant administrative and grant‑reporting costs for a name change. After amendments to the draft resolution adjusting the Planning and Zoning reference and the effective date, a motion to postpone the item indefinitely passed; the renaming will not proceed at this time.

• Appointments and liaison: The council recommended Diana Fikes for appointment to the Kenai Peninsula Borough Planning Commission and appointed the city manager as municipal liaison under tribal memoranda of understanding; both actions were approved by unanimous consent.

Vote details (selected items)

Ordinance 34‑79‑2025 (airport master plan) - Motion: “I move to enact ordinance 34 79 20 25.” (moved by Vice Mayor Knackstedt; seconded) - Vote: Roll call — Council member Askin: Yes; Council member Douthit: Yes; Council member Casena: Yes; Mayor Gabriel: Yes; Council member Daniel: Yes; Council member Sonart: Yes; Vice Mayor Knackstedt: Yes; Student representative Tanner: Yes (recorded). Announcement: 7 yes votes; ordinance enacted.

Ordinance 34‑80‑2025 (temporary salary schedule) - Motion: “I move to enact ordinance 34 80 20 25.” (moved by Vice Mayor Knackstedt; seconded) - Vote: Roll call — same voting pattern, announced as 7 yes votes; ordinance enacted.

Resolution 2025‑45 (airport reserve land lease) - Motion: “I move to adopt resolution 20 25 dash 45.” (moved by Vice Mayor Knackstedt; seconded) - Outcome: Adopted by unanimous consent. Staff explained the lease term (45 years), engineer certification justification and change from prior 6% lease rate to 8% under the new lease form; no competing bids received.

Resolution 2025‑46 (street light contract) - Motion: “I move to adopt resolution 20 25 dash 46.” (moved by Vice Mayor Knackstedt; seconded) - Outcome: Adopted by unanimous consent. Staff described contract line items, locates, per‑call repairs, materials at cost plus 10% and intent to prioritize smaller repairs before results of the streetlight assessment.

Resolution 2025‑47 (Trading Bay Road sewer insulation) - Motion: “I move to adopt resolution 20 25 dash 47.” (moved by Vice Mayor Knackstedt; seconded) - Outcome: Adopted by unanimous consent. Staff explained the scope is insulating service lines to the main (about 55 feet per service), removing and replacing asphalt and placing roughly 6 inches of insulation over the service runs.

Resolution 2025‑38 (rename South Spruce Street) - Motion: multiple amendments were adopted (clarifying language and changing the effective date to 30 days), then a motion to postpone indefinitely passed by council after public comment highlighted costs to long‑standing non‑profit and religious organizations.

What it means: The airport master plan ordinance authorizes work that staff said is necessary to secure FAA capital funding for larger airfield reconstruction work. Several routine and capital maintenance contracts were authorized to address streetlights and sewer freeze problems. The street‑name renaming drew substantial public comment and was postponed to avoid foreseeable administrative and grant‑reporting costs for long‑established organizations and service providers.

Next steps: City staff will proceed with the master plan professional services agreement and FAA grant administration, implement the awarded contracts per their scopes and continue communications with the school district regarding the Kenai Central pool (public comment on the pool occurred earlier in the meeting).