Kenai Peninsula Borough finance committee reviews tower leases, school septic funding and volunteer fire grants

The Kenai Peninsula Borough Finance Committee met to review several ordinances and a resolution affecting communications sites, school infrastructure, personnel classifications and grant acceptance. Committee members and staff heard presentations and asked clarifying questions; no formal votes were recorded during the session.

Mr. Hughes presented Ordinance 2026-13, a public-hearing item to authorize a noncommercial communications-site lease with the Cooper Landing Community Club Inc. He said the tower site has a “convoluted” chain of title that traces from the U.S. Forest Service to the state and ultimately the Kenai Peninsula Borough, and that the lease will require a merger-of-title affidavit as a condition. “Lease amount is $10 per year,” Mr. Hughes said, noting an initial five-year term with options to renew and reserved tower space for borough uses.

The committee also reviewed an appropriation ordinance to redirect previously appropriated funds from a Nanilchik school septic replacement project to the Nikiski North Star Elementary septic replacement. Mr. Hedges described the existing system as failed and roughly 30 years old, pointed to mined material and barrier pits on the property that increase complexity and cost, and estimated the project at “roughly $250,000.” “The school can’t function without the septic system, and it’s time for its total replacement,” he said.

A personnel-related ordinance was discussed to reclassify records micrographics positions: one technician would be reclassified as a lead and another as Records Micrographics Technician I/II. The proposal was framed as an organizational and succession-planning move to address increased records requests and digitization workloads.

The committee heard an appropriation, Ordinance 2025-1936, to reimburse Central Peninsula Hospital for replacing a fire alarm system at the Kenai Health Center. Mr. Hedges said the center is operated by Central Peninsula Hospital under an operating agreement and that the plant or enterprise fund supports maintenance and system replacements; the appropriation would reimburse the hospital for the system it replaced last fall.

Ms. Gere briefed the committee on Ordinance 2025-1937, which accepts and appropriates Alaska Department of Natural Resources Volunteer Fire Capacity (VFC) grant funds on behalf of Bear Creek Fire, Kachemak Emergency, Nikiski Fire and Western Emergency service areas. She said each award requires a 10% local match and a 2.5% administrative fee, and that those costs are covered in the respective operating budgets; the service-area boards recommended acceptance by unanimous consent. When asked why award amounts differed slightly among service areas, Ms. Gere said differences followed the equipment and budget requests submitted by each area.

On new business, the committee considered Resolution 2026-022 to approve 27 unincorporated communities for participation in the state’s FY27 Community Assistance Program (CAP). Ms. Gere said the listed organizations include prior recipients but that being on the list is not required to compete for funds; communities hold meetings to vote on projects for public purposes. Mr. Woods asked why Nanwalek was not listed; Ms. Gere replied the borough had requested funds for Nanwalek in prior years but had not received an application this cycle.

Mr. Hughes also introduced an ordinance to authorize a long-term lease with GCI Communication Corporation for a Beluga tower where an earlier land-use permit expired in April 2020. He said GCI was occupying the site under a holdover tenancy paying $672 per month but that the proposed lease would authorize the site at an initial fair-market rent of $2,000 per month with a 3% annual escalator, provisions for renewal, reserved borough tower space and a 33% royalty to the borough for any rents generated by the lessee. Committee members praised the effort to capture market value for borough land; Mr. Hughes acknowledged that lessee pushback lengthened negotiations.

The committee concluded with brief commendations for staff work modernizing borough land management. The chair adjourned the meeting at 03:05.