(a) Intent. It is the intent of this chapter to permit bed and breakfast establishments by conditional use which is compatible with other permitted uses, with the residential character of a neighborhood, and which is clearly secondary or incidental to the residential use of the main building.

(b) Provided that these establishments shall be owner-operated, not more than one (1) person outside the family shall be employed in the bed and breakfast; rent out no more than thirty percent (30%) of the total floor area; have adequate off-street parking for owner and all guests; and shall meet all other requirements as set forth by the Planning and Zoning Commission at the time of public hearing.

(c) The bed and breakfast establishment must meet all area, height, and setback requirements of the zones in which they are allowed according to the Land Use Table.

(d) Fire Code Inspections. Buildings which are the subject of a bed and breakfast permit application shall be inspected by the Fire Marshal for compliance with the Fire Code (KMC 8.05) prior to the approval of the conditional use permit. Thereafter, they shall be inspected every other year by the City Fire Marshal. Failure to comply with the Fire Code (KMC 8.05) shall be grounds for the suspension or revocation of the conditional use permit.

(e) Issuance of the Permit. Following approval by the Commission, the administrative official shall not issue the permit until the expiration of the fifteen (15) day appeal period contained in KMC 14.20.290. After approval by the Commission and before the issuance of the permit, the administrative official must determine that the applicant is current on all obligations (e.g., sales tax, property tax, lease payments, utility payments) to the City or has entered into an approved payment plan with the City on any obligations owed and the applicant is in compliance with the payment plan and (if the permit is for a use required to collect sales tax) must show a valid borough sales tax account. If a timely appeal is filed pursuant to KMC 14.20.290, the permit shall not be issued unless authorized by the Board of Adjustment.

(f) Yearly Reports. The permit holder shall submit a yearly report between October 1st and December 31st to the administrative official. Such report shall include a summary of the on-site activity.

(g) Revocation for Noncompliance/Compliance Notices. If the Commission determines, based on the yearly review or any other investigation undertaken by the official, that the conduct of the operation(s) is not in compliance with: (1) the terms and conditions of the permit; (2) the provisions of the Kenai Zoning Code; (3) or that the permit holder is not current on any obligations (e.g., sales tax, property tax, utility payments, lease payments) to the City unless the applicant has entered into an approved payment with the City on any obligations owed and the applicant is in compliance with the payment plan, the Commission may revoke the permit. The Commission shall not revoke the permit until the permit holder has been notified and given reasonable opportunity to correct the deficiency(ies) or to provide information relating to or rebutting the alleged deficiency(ies). Appeals from decisions under this section shall be made in accordance with the provisions of KMC 14.20.290. If the administrative official determines the permit holder is in compliance with the conditions in this subsection, it shall send a notice of compliance to the Commission and the permit holder.