HomeMy WebLinkAbout2015-07-15 Council PacketAGENDA
KENAI CITY COUNCIL – REGULAR MEETING
JULY 15, 2015, 7:00 P.M.
KENAI CITY COUNCIL CHAMBERS
210 FIDALGO AVE., KENAI, AK 99611
http://www.kenai.city
A. CALL TO ORDER
1. Pledge of Allegiance
2. Roll Call
3. Agenda Approval
4. Consent Agenda (Public comment 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 PUBLIC COMMENTS (Public comment limited to ten (10) minutes
per speaker)
C. UNSCHEDULED PUBLIC COMMENTS (Public comment limited to three (3)
minutes per speaker; thirty (30) minutes aggregated)
D. PUBLIC HEARINGS
1. Ordinance No. 2843-2015 – Amending and Renaming Kenai Municipal Code
18.05.080-Water and Mud from Vehicle, to Allow for Washing of Vehicles in a
Manner which Allows for Fluid to Drain onto Public Improvements in an
Environmentally Responsible Manner. ................................................... Pg. 5
2. Ordinance No. 2844-2015 – Retroactively Appropriating Reimbursement
Funds to be Received for Support of Card Street Fire Suppression Efforts.
.............................................................................................................. Pg. 9
E. MINUTES
1.*Regular Meeting of July 1, 2015 .............................................................. Pg. 13
F. UNFINISHED BUSINESS
1. Ordinance No. 2829-2015 – Amending Kenai Municipal Code Section
1.90.030 – Qualifications, to Allow up to Two of the Seven Members of the
Planning and Zoning Commission to be Non-Residents if They Either Own
Property or a Business Located within the City and Making Other
Housekeeping Changes. [Clerk’s Note: At its June 3, 2015 meeting, Council
Kenai City Council Meeting Page 2 of 3
July 15, 2015
amended Ordinance No. 2829-2015 and referred it to the Planning & Zoning
Commission for reconsideration, postponing it to the July 15th meeting. A
motion to enact is on the floor.] .............................................................. Pg. 21
G. NEW BUSINESS
1. *Action/Approval – Bills to be Ratified. ................................................ Pg. 31
2. *Action/Approval – Purchase Orders Exceeding $15,000. ................... Pg. 33
3. *Ordinance No. 2845-2015 – Imposing a Limited Moratorium on the
Operations of Marijuana Establishments and/or Businesses within the City of
Kenai. .................................................................................................... Pg. 37
4. *Ordinance No. 2846-2015 – Increasing Estimated Revenues and
Appropriations by $81,220 in the General Fund – Fire Department for an
Assistance to Firefighter Grant from the Federal Emergency Management
Agency. ......................................................................................... Pg. 41
5. *Ordinance No. 2847-2015 – Retroactively Appropriating Additional State of
Alaska Public Employees Retirement On-Behalf Funding for FY2015. .. Pg. 45
6. *Ordinance No. 2848-2015 – Increasing Estimated Revenues and
Appropriations in the Airport Fund and in the Airport Improvement Capital
Project Fund for the 2016 Improved Airport Drainage Project. ............... Pg. 49
7. Action/Approval – Directing the Planning & Zoning Commission to Draft Land
Use Code Relating to Establishments and Businesses Engaged in the Sale,
Cultivation, Manufacture, and Consumption of Marijuana within the City of
Kenai. ................................................................................................... Pg. 53
8. Discussion/Action – Schedule Work Session for Unsolicited Offers to
Purchase City Land. ........................................................................... Pg. 125
9. Discussion/Action – Schedule a Work Session in August on Draft Ordinance
on Purchasing Code. .......................................................................... Pg. 129
10. Discussion – To Discuss a Project to Determine the Feasibility and Costs for
the Phased Construction of a Park Facility, Including a Permanent Stage,
Located on City Property in the Area Generally Describes as “Millennium
Square.” ............................................................................................. Pg. 153
H. COMMISSION/COMMITTEE REPORTS
1. Council on Aging
2. Airport Commission
3. Harbor Commission
4. Parks and Recreation Commission
5. Planning and Zoning Commission ...................................................... Pg. 155
Kenai City Council Meeting Page 3 of 3
July 15, 2015
6. Beautification Committee
7. Mini-Grant Steering Committee
I. REPORT OF THE MAYOR
J. ADMINISTRATION REPORTS
1. City Manager
• Kenai Multi-Purpose Facility Upgrades .................................... Pg. 161
2. City Attorney
3. City Clerk
K. ADDITIONAL PUBLIC COMMENT
1. Citizens Comments (Public comment limited to five (5) minutes per speaker)
2. Council Comments
L. EXECUTIVE SESSION – None
M. PENDING ITEMS
1. Resolution No. 2015-12 – Supporting Alaska State Senate Bill 1, an Act
Prohibiting Smoking in Certain Places; Relating to Education on the Smoking
Prohibition.
N. ADJOURNMENT
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INFORMATION ITEMS
1. Purchase Orders between $2,500 and $15,000 for Council Review.
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’s Office at 907-283-8231.
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KENAI CITY COUNCIL – REGULAR MEETING
JULY 1, 2015 – 7:00 P.M.
KENAI CITY COUNCIL CHAMBERS
210 FIDALGO AVE., KENAI, AK 99611
MAYOR PAT PORTER, PRESIDING
MINUTES
A. CALL TO ORDER
A Regular Meeting of the Kenai City Council was held on July 1, 2015, in City Hall Council
Chambers, Kenai, AK. Mayor Pat Porter called the meeting to order at 7:00p.m.
1. Pledge of Allegiance
Mayor Porter led those assembled in the Pledge of Allegiance.
2. Roll Call
There were present:
Pat Porter, Mayor Henry Knackstedt
Robert Molloy Tim Navarre
Brian Gabriel Ryan Marquis
Terry Bookey
A quorum was present.
Also in attendance were:
Rick Koch, City Manager
Sandra Modigh, City Clerk
Jamie Heinz, Deputy Clerk
3. Agenda Approval
Mayor Porter noted the following requested revisions/additions to the agenda/packet:
Remove from Consent F.1
Agenda
• Consideration of Actions Related to Commercial Marijuana
Legalization.
Add to item F.1 Consideration of Actions Related to Commercial Marijuana
Legalization.
• Memorandum and Supporting Material
MOTION:
Council Member Molloy MOVED to approve the agenda with requested revisions and requested
UNANIMOUS CONSENT. Council Member Marquis SECONDED the motion.
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VOTE: There being no objections, SO ORDERED.
4. Consent Agenda
MOTION:
Councilor Bookey MOVED to approve the consent agenda and requested UNANIMOUS
CONSENT; Gabriel SECONDED the motion.
Mayor Porter opened public comment for items on the consent agenda; there being no one
wishing to be heard, the public comment was closed.
VOTE: There being no objections, 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.
B. SCHEDULED PUBLIC COMMENTS
1. Arni Thomson, Alaska Salmon Alliance – The Economic Impact of the Seafood
Industry in South Central Alaska, Prepared by the McDowell Group.
Arni Thomson, Executive Director of Alaska Salmon Alliance, gave an overview of the Alaska
Salmon Alliance, explained the Alliance commissioned McDowell Group to analyze the economic
impact of the commercial seafood industry in Southcentral Alaska, and provided some labor
statistics and financial impacts that were found.
C. UNSCHEDULED PUBLIC COMMENTS
Fred Braun spoke in favor of the City selling Lot 1, Block 1, Gusty Subdivision, the subject of one
of two unsolicited offers to purchase; explained that the offer price was the recently appraised
value.
Jennifer Showalter Yeoman gave an update from the Keanitze Tribe; explained the Denai’na
Wellness Center was hiring more staff; the Tribal Court building was moved; the elder center was
being rebuilt; the youth were traveling to Washington DC to be part of a youth government.
Cory Roram of Green Rush Events explained his club was being targeted by the State as being
illegal; wanted the Council to be able to put a face to a name.
D. PUBLIC HEARINGS
1. Ordinance No. 2838-2015 – Declaring that T 5N R 11W Sec 5 Seward Meridian KN
0002970 Original Townsite of Kenai, Lot 1, Block 9, Kenai, Alaska, also known as
1109 Garden Avenue, Kenai, Alaska, whose Last Record Owner Under Borough
Assessment Records was C/O Alice Tumsuden, Homer H Tumsuden, whose Address
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is, 3634 NE 46th Avenue, Portland, Oregon, 97213-1028, Shall be Retained by the
City of Kenai for a Public Purpose.
[Clerk’s Note: At its June 17th meeting, Council postponed Ordinance No. 2838-2015
to the July 1st meeting. A motion to enact is on the floor.]
MOTION TO AMEND:
Council Member Molloy MOVED to amend by inserting the date of June 25, 2015 into the blank
in the sixth whereas clause; the motion was SECONDED by Knackstedt.
VOTE ON THE AMENDMENT:
YEA: Porter, Gabriel, Knackstedt, Molloy, Navarre, Bookey
NAY: Marquis
VOTE ON THE MAIN MOTION:
YEA: Porter, Gabriel, Knackstedt, Molloy, Navarre
NAY: Marquis, Bookey
MOTION PASSED.
2. Ordinance No. 2840-2015 – Appropriating Transfers for FY2016 Budgeted Capital
Projects in the Municipal Roadway Improvements Capital Project Fund, the Parks
Improvement Capital Project Fund, and the Cemetery Improvements Capital Project
Fund.
MOTION:
Council Member Gabriel MOVED to enact Ordinance No. 2840-2015; the motion was
SECONDED by Council Member Knackstedt.
Mayor Porter opened the public hearing; there being no one wishing to be heard, the public
hearing was closed.
VOTE:
YEA: Porter, Gabriel, Knackstedt, Navarre, Marquis, Bookey, Molloy
NAY:
MOTION PASSED UNANIMOUSLY.
3. Ordinance No. 2841-2015 – Accepting and Appropriating a Volunteer Fire Assistance
(VFA) Grant from the United States Department of Agriculture Forest Service Passed
Through the State of Alaska Division of Forestry for the Purchase of Forestry
Firefighting Equipment.
MOTION:
Council Member Bookey MOVED to enact Ordinance No. 2841-2015; the motion was
SECONDED by Council Member Gabriel.
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Mayor Porter opened the public hearing; there being no one wishing to be heard, the public
hearing was closed.
VOTE:
YEA: Porter, Gabriel, Knackstedt, Navarre, Marquis, Bookey, Molloy
NAY:
MOTION PASSED UNANIMOUSLY.
4. Ordinance No. 2842-2015 – Accepting and Appropriating Donations Received for the
Municipal Park Playground Improvements Project.
MOTION:
Council Member Marquis MOVED to enact Ordinance No. 2842-2015; the motion was
SECONDED by Council Member Molloy.
Mayor Porter opened the public hearing; there being no one wishing to be heard, the public
hearing was closed.
The Mayor was thanked for her donation.
MOTION TO AMEND:
Council Member Knackstedt MOVED to amend the fifth whereas clause to read: “WHEREAS,
$500 of additional donations were received from Mayor Pat Porter and husband Larry Porter; and
$250 from a donor who wishes to remain anonymous; and”; the motion was SECONDED by
Council Member Navarre and UNANIMOUS CONSENT was requested.
VOTE ON THE AMENDMENT: There being no objections; SO ORDERED.
VOTE ON THE MAIN MOTION:
YEA: Porter, Gabriel, Knackstedt, Navarre, Marquis, Bookey, Molloy
NAY:
MOTION PASSED UNANIMOUSLY.
5. Resolution No. 2015-43 – Awarding an Agreement for North and South Beach
Portable Restrooms and Dumpsters for the 2015 Dip Net Fishery.
MOTION:
Council Member Marquis MOVED to adopt Resolution No. 2015-43 and requested UNANIMOUS
CONSENT. Council Member Bookey SECONDED the motion.
Mayor Porter opened the public hearing; there being no one wishing to be heard, the public
hearing was closed.
Administration explained that the amount was similar to the costs in 2014.
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VOTE: There being no objections; SO ORDERED.
E. MINUTES
1.*Regular Meeting of June 17, 2015
2.*Work Session of June 16, 2015
Minutes were approved by the consent agenda.
F. UNFINISHED BUSINESS
1. Discussion/Action – Consideration of Actions Items Related to Commercial
Marijuana Legalization.
After discussion on scope and level of education on the topic, Council members informally
answered questions regarding the commercial legalization of marijuana in the City to give the
Planning & Zoning Commission direction for moving forward.
G. NEW BUSINESS
1. *Action/Approval – Bills to be Ratified.
Approved by the consent agenda.
2. *Action/Approval – Purchase Orders Exceeding $15,000.
Approved by the consent agenda.
3. *Ordinance No. 2843-2015 – Amending and Renaming Kenai Municipal Code
18.05.080-Water and Mud from Vehicle, to Allow for Washing of Vehicles in a Manner
which Allows for Fluid to Drain onto Public Improvements in an Environmentally
Responsible Manner.
Introduced on the consent agenda and public hearing set on July 15, 2015.
4. *Ordinance No. 2844-2015 – Retroactively Appropriating Reimbursement Funds to
be Received for Support of Card Street Fire Suppression Efforts.
Introduced on the consent agenda and public hearing set on July 15, 2015
5. Action/Approval – Confirmation of the Mayor’s Nomination of Patrick “Jack” Focose
to the Planning & Zoning Commission.
MOTION:
Council Member Bookey MOVED to confirm the Mayor’s nomination of Patrick “Jack” Focose to
the Planning & Zoning Commission; the motion was SECONDED by Marquis.
VOTE:
YEA: Molloy, Navarre, Gabriel, Knackstedt, Bookey, Porter, Marquis
Page 17 of 172
NAY:
MOTION PASSED UNANIMOUSLY.
H. COMMISSION/COMMITTEE REPORTS
1. Council on Aging – next meeting 7/9.
2. Airport Commission – work session 7/9.
3. Harbor Commission – 7/6 meeting cancelled; next meeting 8/10.
4. Parks and Recreation Commission – no report.
5. Planning and Zoning Commission – met in a joint work session with the Airport
Commission on 6/23 to consider rezoning airport lands. Also met in a work session
on 6/24 to consider membership qualifications for Planning & Zoning Commissioners.
During the reg ular meeting on 6/24 the Commission granted a variance for a side yard
setback.
6. Beautification Committee – no report.
7. Mini-Grant Steering Committee – no report.
I. REPORT OF THE MAYOR
Mayor Porter reported on the following:
• Met with Senator Dan Sullivan regarding local issues; Alaska LNG.
• Attended Cook Inlet Drifters; looking forward to good fishing season.
• Chamber Awards Banquet; many good recipients.
• Attended Frontier Baseball game; threw a pitch.
• Municipal Park construction almost finished.
• Announced intent for introducing an ordinance for a moratorium on new
marijuana establishments until the State has enacted regulations.
J. ADMINISTRATION REPORTS
1. City Manager reported on the following:
• Two unsolicited offers to purchase airport property; conclusion – it was not in
the best interest of the Airport or the City to sell the properties.
• Legislature passed Capital Budget; included Kenai projects.
• Preparing for personal use fishery; installing no-wake zone and State
enforcement will be down.
• South Spruce will have new traffic pattern; fee shack and traffic control; passes
will be issued.
• Provided an estimate on loss of sales tax revenue in the event the initiative to
repeal sales tax on non-prepared food items was passed by the voters; $1.2
million annually, equivalent to 1.5 mills property tax.
2. City Attorney – no report.
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3. City Clerk – provided a recap of initiative and referendum petitions circulating; one to
provide for term limits, one to repeal sales tax on non-prepared food items; explained
number of signatures needed and the deadline for submission.
K. ADDITIONAL PUBLIC COMMENT
1. Citizens Comments (Public comment limited to five (5) minutes per speaker)
Duane Bannock with Shillings Rentals spoke in favor of being given an opportunity to present the
unsolicited offer (the “other” unsolicited offer) to City Council and why it makes sense to sell the
property.
2. Council Comments
Councilor Navarre wished all a happy 4th of July.
Vice Mayor Gabriel hoped to see all at the parade.
Council Member Marquis welcomed Focose to the Planning & Zoning Commission; thanked
Jennifer Showalter Yeoman for her report on the Kenaitze Tribe; gave kudos to Soldotna for their
Wednesday evening music events.
Councilor Molloy thanked those that spoke and thanked Focose for willingness to serve on the
Planning & Zoning Commission.
Mayor Porter wished America a happy birthday and thanked those that sacrificed to give us a
great country.
L. EXECUTIVE SESSION
1. To Discuss the Purchase of Lands and other Improvements from ARK Properties, LLC
to Facilitate Construction of an Access Road to the Beach Near the South Side of the
Mouth of the Kenai River, a Matter that the Immediate Knowledge of which would
Clearly have an Adverse Effect upon the Finances of the City [AS 44.62.10 (c)(1)].
MOTION:
Council Member Gabriel MOVED to convene in executive session Regarding the Purchase of
Lands and other Improvements from ARK Properties, LLC to Facilitate Construction of an Access
Road to the Beach Near the South Side of the Mouth of the Kenai River, a Matter that the
Immediate Knowledge of which would Clearly have an Adverse Effect upon the Finances of the
City [AS 44.62.10 (c)(1)]. Council Member Bookey SECONDED the motion.
Availability of the City Manager and City Clerk was requested.
VOTE:
YEA: Molloy, Porter, Knackstedt, Navarre, Gabriel, Bookey
NAY: Marquis
Page 19 of 172
MOTION PASSED.
Council reconvened in open session.
It was explained that executive session was called the to discuss the purchase of lands and other
improvements from ARK Properties, LLC to facilitate Construction of an Access Road to the
Beach Near the South Side of the Mouth of the Kenai River and that direction was provided to
authorize the City Manager to continue negotiations for other properties to facilitate construction
of a new access road to the South Beach.
M. PENDING ITEMS
1. Resolution No. 2015-12 – Supporting Alaska State Senate Bill 1, an Act Prohibiting
Smoking in Certain Places; Relating to Education on the Smoking Prohibition.
2. Ordinance No. 2829-2015 – Amending Kenai Municipal Code Section 1.90.030 –
Qualifications, to Allow up to Two of the Seven Members of the Planning and Zoning
Commission to be Non-Residents if They Either Own Property or a Business Located
within the City and Making Other Housekeeping Changes.
N. ADJOURNMENT
There being no further business before the Council, the meeting was adjourned at 9:45p.m.
I certify the above represents accurate minutes of the Kenai City Council meeting of July 1, 2015.
_____________________________
Sandra Modigh, CMC
City Clerk
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SUPPLEMENTAL NOTICE OF PROPOSED REGULATIONS
REGARDING MARIJUANA AND LOCAL OPTIONS.
MARIJUANA CONTROL BOARD
The Marijuana Control Board proposes to adopt regulation changes in Title 3 of the Alaska
Administrative Code, dealing with local option regulations and definitions relating to marijuana and
marijuana establishments, including the following:
(1) local option regulations are proposed as follows:
The regulations consist of a series of provisions establishing a local
governing body’s ability, by ordinance or popular vote, to opt out of
allowing marijuana establishments to operate in their jurisdiction. The
proposed local option regulations are modeled on the local option
statutes for liquor licensed establishments in AS 04.11, except that AS
17.38.900(4) defines “local government” as excluding villages. The
proposed regulations include rules prescribing types of local options, a
change of a local option, the removal of a local option, the effect on
licenses of a prohibition on sale, the prohibition of importation or
purchase after a local option election, the effect on licenses of a
restriction on sale, licensing after a prohibition on sale except on
premises operated by a municipality, the procedure for local option
elections, and notice of results of a local option election.
(2) Definitions are proposed to be adopted, including the following:
Definitions of the terms “assist”, “personal cultivation”, “adulterated food or drink
product”, “edible marijuana product”, “licensed premises”, “local governing body”,
“marijuana concentrate”, “marijuana product”, “marijuana plant”, and “possess”.
The purpose of this supplemental notice is to provide an additional public comment period because
substantive changes were made to the proposed regulations following the close of the previous public
comment period. Due to the definition contained in AS 17.38.900(4), villages are not included as a type
of local government that can exercise a local option under the proposed regulations.
You may comment on the proposed regulation changes, including the potential costs to private persons of
complying with the proposed changes, by submitting written comments to John Calder, Marijuana
Control Board at 550 W. 7th Ave, Suite 1600, Anchorage, AK 99501. If you have already commented on
Set 1, you do not need to resubmit your comments, however you may, if you would like. Additionally, the
Marijuana Control Board will accept comments by electronic mail at john.calder@alaska.gov. Comments
may also be submitted through the Alaska Online Public Notice System, by accessing this notice on the
system and using the "comment" link. The comments must be received no later than 4:30 p.m. on Aug 8,
2015.
You may submit written questions relevant to the proposed action to John Calder by email and physical
address. Please do not submit questions through the Alaska Online Public Notice System. The questions
must be received at least 10 days before the end of the public comment period. The Marijuana Control
The Marijuana Control Board proposes to adopt regulations to implement the
marijuana law which was voted on as Ballot Measure 2 in November, 2014. These
proposed regulations relate to definitions, as well as local options for communities
to “opt out” of having certain kinds of marijuana establishments.
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Board will aggregate its response to substantially similar questions and make the questions and response
available on the Marijuana Control Board website. The Marijuana Control Board may, but is not required
to, answer written questions received after the 10-day cut-off date and before the end of the comment
period.
If you are a person with a disability who needs a special accommodation in order to participate in this
process, please contact John Calder at (907) 269-0350 no later than July 30, 2015 to ensure that any
necessary accommodations can be provided.
A copy of the proposed regulation changes is available through the electronic link to the complete text on
the Alaska Online Public Notice System, on the Alcoholic Beverage Control Board website at
http://commerce.state.ak.us/dnn/abc/Home.aspx and by contacting John Calder at 550 W. 7th Ste 1600,
Anchorage, AK 99501.
After the public comment period ends, the Marijuana Control Board will either adopt the proposed
regulations or other provisions dealing with the same subject, without further notice, or decide to take no
action. The language of the final regulations may be different from that of the proposed regulations. You
should comment during the time allowed if your interests could be affected.
Statutory Authority: AS 17.38.090
Statutes Being Implemented, Interpreted, or Made Specific: AS 17.38.100; AS 17.38.110
Fiscal Information: The proposed regulation changes are not expected to require an increased
appropriation.
DATE: July 6, 2015 _________________________________________
Cynthia A. Franklin, Director
Marijuana Control Board
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3 AAC is amended by adding a new chapter to read:
Section
200. Local options
210. Change of local option
220. Removal of local option
230. Procedure for local option election
240. Prohibition of importation or purchase after election
250. Effect on licenses of restriction on sale
260. Licensing after prohibition on sale except in premises operated by municipality
270. Notice of the results of a local option election
3 AAC 306.200. Local options. (a) If a majority of the persons voting on the question
vote to approve the option, or if the assembly or city council passes an ordinance to the same
effect, a municipality shall adopt a local option to prohibit
(1) the sale of marijuana and marijuana products;
(2) the operation of any marijuana establishment, including one or more of the
following license types:
(A) a marijuana cultivation facility or marijuana brokerage facility;
(B) a marijuana products manufacturing facility;
(C) a marijuana testing facility;
(D) a marijuana retail facility;
(3) the sale of marijuana and marijuana products except on premises operated by
the municipality under a retail marijuana license; or
(4) the sale or importation for sale of marijuana and marijuana products.
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(b) A ballot question to adopt a local option under this section must at least contain
language substantially similar to: "Shall (name of municipality ) adopt a local option to prohibit
(local option under (a) or (b) of this section)? (yes or no)."
(c) The ballot for an election on the options set out in (a)(2) and (b)(2) of this section
must include a brief explanation of the activity that each license type on the ballot may carry out.
(d) If a municipality dissolves under AS 29.06.450(a) or (b), any marijuana
establishment license issued to a municipality under 3 AAC 306.___ expires when the
municipality dissolves. .
(e) A municipality shall not prohibit the personal use and possession of marijuana and
marijuana products as authorized by AS 17.38.020. (Eff. ___/___ /____, Register ____)
Authority: AS 17.38.090 AS 17.38.110 AS 17.38.900
3 AAC 306.210. Change of local option. If a majority of persons voting on the
question vote to approve a local option different from one previously adopted under this section
and currently in effect, or if the assembly or city council passes an ordinance to the same effect, a
municipality shall change the local option to the newly approved option. A ballot question to
change a local option under this section must at least contain language substantially similar to:
"Shall (name of municipality ) change the local option currently in effect, that prohibits (current
local option), and adopt in its place a local option to prohibit (proposed local option)? (yes or
no)." (Eff. ___/___ /____, Register ____)
Authority: AS 17.38.090 AS 17.38.110 AS 17.38.900
3 AAC 306.220. Removal of local option. (a) If a majority of the persons voting on
the question vote to remove a local option previously adopted under this section and currently in
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effect, or if the assembly or city council passes an ordinance to the same effect, that local option
is repealed effective the first day of the month following certification of the results of the
election. A ballot question to remove a local option under this section must at least contain
language substantially similar to: "Shall (name of municipality ) remove the local option
currently in effect, that prohibits (current local option), so that no local option continues in
effect? (yes or no)."
(b) When issuing a license in the municipality that has removed a local option, the
board will give priority to any formerly licensed applicant whose license was not renewed
because of the results of the previous local option election. However, an applicant described in
this subsection does not have a legal right to a license and the board is not required to approve
the application. (Eff. ___/___ /____, Register ____)
Authority: AS 17.38.090 AS 17.38.110 AS 17.38.900
3 AAC 306.230. Procedure for local option election. (a) When the local government
of a municipality receives a petition to adopt, change, or remove a local option, and the petition
is signed by a number of registered voters equal to 25 percent or more of the number of votes
cast at the last regular municipal election, the government shall place the issue that is the subject
of the petition on a separate ballot at the next regular election, or hold a special election, The
local government shall conduct the election under the election ordinance of the municipality.
(
(b) In a general law municipality, AS 29.26.110 - 29.26.160 apply to a petition under (a)
of this section except that the
1an application filed under AS 29.26.110 must at least contain language
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substantially similar to the questions set out under 3 AAC 306.200(c), 3 AAC 306.210, or
3 AAC 306.220 rather than language of an ordinance or resolution;
2 a petition must at least contain language substantially similar to the questions
set out under 3AAC 306.200(c), 3 AAC 306.210, or 3 AAC 306.220 rather than material
required under AS 29.26.120 (a)(1) and (2).
(c) Notwithstanding any other provisions of law, a municipality may not conduct an
election to change to a less restrictive option under 3 AAC 306.210, or to remove a local option
under 3 AAC 306.220, or pass an ordinance to the same effect, during the first 24 months after
the local option was adopted or more than once in a 36-month period, except that if an original
prohibition was passed by ordinance, an election as set forth in this article to change the
ordinance may be conducted within the 36 month period following the passage of the ordinance
(d) Notwithstanding AS 29.26.140(a), after a petition has been certified as sufficient to
meet the requirements of (a) or (b) of this section, no other petition may be filed or certified until
after the question presented in the first petition has been voted on or pass an ordinance to the
same effect,. Only one local option question may be presented in an election. (Eff. ___/___
/____, Register ____)
Authority: AS 17.38.090 AS 17.38.110 AS 17.38.900
3 AAC 306.240. Prohibition of importation or purchase after election. (a) If a
majority of the voters vote to prohibit the importation for sale of marijuana and marijuana
products under 3 AAC 306.200(a)(4) or (b)(3), or if the assembly or city council passes an
ordinance to the same effect, a person, beginning on the first day of the month following
certification of the results of the election, may not knowingly send, transport, or bring marijuana
or marijuana products for sale into the municipality Such prohibition shall not apply to transport
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of marijuana and marijuana products through the boundaries of the municipality by a marijuana
establishment whose premises are licensed by the board outside the municipality when such
transport is documented by an official manifest authorized by 3 AAC 306. ___.
(b) A person who resides in a municipality that has adopted a local option under 3 AAC
306.200(a) or (b) may not purchase in the municipality marijuana or marijuana products from
another person who has sent, transported, or brought marijuana or marijuana products into the
municipality for sale in violation of the local option Such prohibition shall not apply to
transport of marijuana and marijuana products through the boundaries of the municipality by a
marijuana establishment whose premises are licensed by the board outside the municipality when
such transport is documented by an official manifest authorized by 3 AAC 306. ___.
(c) In this section,
(1) "bring" means to carry or convey or to attempt or solicit to carry or convey;
(2) "send" means to cause to be taken or distributed or to attempt or solicit to
cause to be taken or distributed, and includes use of the United States Postal Service;
(3) "transport" means to ship by any method, and includes delivering or
transferring or attempting or soliciting to deliver or transfer marijuana or marijuana products to
be shipped to, delivered to, or left or held for pickup by any person. (Eff. ___/___ /____,
Register ____)
Authority: AS 17.38.090 AS 17.38.110 AS 17.38.900
3 AAC 306.250. Effect on licenses of restriction on sale. If a majority of the voters
vote under 3 AAC 306.200(a) or (b) to prohibit sale of marijuana and marijuana products or the
operation of marijuana establishments, or if the assembly or city council passes an ordinance to
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the same effect, the board may not issue, renew, or transfer between persons or locations a
license for a marijuana establishment with premises located within the boundary of the
municipality or in the unincorporated area within ten miles of the boundaries of the municipality,
A license for a marijuana establishment within the boundary of the municipality or in the
unincorporated area within ten miles of the boundary of the municipality, is void 90 days after
the results of the election are certified. A license that expires during the 90 days after the results
of a local option election are certified may be extended, until it is void under this section, by
payment of a prorated portion of the annual license fee. (Eff. ___/___ /____, Register ____)
Authority: AS 17.38.090 AS 17.38.110 AS 17.38.900
3 AAC 306.260. Licensing after prohibition on sale except in premises operated by
municipality. (a) If a majority of the voters vote under 3 AAC 306.200(a)(3) to prohibit sale of
marijuana and marijuana products except by the municipality, or operation of marijuana
establishments except marijuana establishments operated by the municipality, or if the assembly
or city council passes an ordinance to the same effect, the board may not issue, renew, or transfer
a marijuana establishment license in any other person’s name within the boundaries of a
municipality and in unincorporated areas within ten miles of the boundaries of the municipality.
A license in effect is void 90 days after the results of the election are certified. A license that
expires during the 90 days after the results of a local option election are certified may be
extended, until it is void under this subsection, by payment of a prorated portion of the annual
license fee.
(b) If a majority of the voters approve the sale of marijuana and marijuana products by
the municipality, or the operation of a marijuana establishment by the municipality, the
municipality’s local government shall apply for a license to operate the type of marijuana
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establishment listed on the ballot and approved by a majority of the voters. The municipality
shall operate the marijuana establishment subject to the conditions and fees applicable to the
applicable type of license. Nothing in this section precludes a municipality from applying to be a
licensee under other provisions of this title. (Eff. ___/___ /____, Register ____)
Authority: AS 17.38.090 AS 17.38.110 AS 17.38.900
3 AAC 306.270. Notice of the results of a local option election. (a) If a majority of the
voters vote to adopt, change, or remove a local option under 3 AAC 306.200-3 AAC 306.220 or
if the assembly or city council passes an ordinance to the same effect,:
(1) the clerk of the municipality shall notify the board of the results of the
election or of the passage of the ordinance immediately after the results of the election are
certified or the ordinance is formally adopted;
(2) the municipality shall post public notice of the prohibition in a central
location in the municipality before the date the prohibition becomes effective; and
(3) the board shall immediately notify the Department of Law and the
Department of Public Safety of the results of the election. (Eff. ___/___ /____, Register ____)
Authority: AS 17.38.090 AS 17.38.110 AS 17.38.900
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3 AAC 306.990. Definitions. (a) In AS 17.38,
(1) “assist” does not include
(A) using, displaying, purchasing, or transporting marijuana in excess of the
amount allowed in AS 17.38.020;
(B) possessing, growing, processing, or transporting marijuana plants in excess of
the amount allowed in AS 17.38.020;
(C) growing marijuana plants for another person in a place other than that other
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person's residence;
(2) “personal cultivation” does not include
(A) using, displaying, purchasing, or transporting marijuana in excess of the
amount allowed in AS 17.38.020;
(B) possessing, growing, processing, or transporting marijuana plants in excess of
the amount allowed in AS 17.38.020;
(C) growing marijuana plants for another person in a place other than that other
person's residence.
(b) In AS 17.38 and this chapter, unless the context requires otherwise,
“adulterated food or drink product” means a product which is intended to be consumed
orally and which existed without marijuana in a form ready for consumption to which marijuana
was subsequently added by any process. Adulterated food or drink products do not
include raw ingredients which are combined with marijuana in a manufacturing process;
“edible marijuana product” means any marijuana product which is intended to be
consumed orally, including but not limited to, any type of food, or drink. Edible marijuana
products do not include adulterated food or drink products;
“licensed premises” means any or all designated portions of a building or structure,
rooms or enclosures in the building or structure, used, controlled, or operated by a licensee in the
conduct of business for which the licensee is licensed by the board at the specific address for
which the license is issued;
“marijuana concentrate” means resin, oil, wax, or any other substance produced by
extracting or isolating cannabinoids, THC, or other components from the marijuana plant or
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harvest thereof;
“marijuana product” means concentrated marijuana and marijuana products that are
comprised of marijuana and other ingredients and are intended for use or consumption, such as,
but not limited to, edible products, ointments, and tinctures;
“marijuana plant” means a living organism of the genus Cannabis capable of absorbing
water and inorganic substances through its roots, and synthesizing nutrients in its leaves by
photosynthesis;
“possess” means having physical possession or the exercise of dominion or control over
property. (Eff. ___/___ /____, Register ____)
Authority: AS 17.38.090 AS 17.38.110 AS 17.38.90
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NOTICE OF PROPOSED REGULATIONS
REGARDING MARIJUANA AND LICENSING, RETAIL STORES
AND OPERATING REQUIREMENTS
MARIJUANA CONTROL BOARD
The Marijuana Control Board proposes to adopt regulation changes in Title 3 of the Alaska
Administrative Code, dealing with licensing and fees, rules for retail marijuana stores and operating
requirements for all marijuana establishments, including the following:
(1) Article 1 – Licensing, Fees regulations are proposed as follows:
The regulations consist of a series of provisions establishing when a
marijuana establishment license is required, restrictions on licenses,
conditions on licenses, rules regarding applications for a new license,
application procedures, rules regarding applications for renewal of
licenses, rules regarding reporting of changes in ownership of licenses,
rules regarding application for transfers of licenses to another person,
relocation of licensed premises not allowed, rules regarding criminal
justice information and records, rules for protests by local governments,
public participation in issuance of licenses, renewals and transfers, public
hearings, procedure for action on license applications, denial of license
applications, informal conferences, formal hearings, appeals, and fees,
refunds and forfeiture.
(2) Article 3- Marijuana Retail Stores regulations are proposed to be adopted, including the
following:
The regulations consist of a series of provisions establishing when a marijuana retail store
license is required, marijuana retail store privileges, acts prohibited at a marijuana retail
store, application for a marijuana retail store license, restricted access area at a marijuana
retail store, when a marijuana handler permit is required, identification requirements to
prevent sale to persons under the age of 21, limits on quantity sold, health and safety
requirements for marijuana retail store, testing requirement for marijuana sold at
marijuana retail store, restriction on advertising of marijuana and marijuana products, and
rules regarding a marijuana inventory tracking system.
(3) Article 7- Operating Requirements for All Marijuana Establishments regulations are
proposed to be adopted, including the following:
The regulations consist of a series of provisions establishing licensed premises and
alteration of licensed premises, inspection of licensed premises, restricted access areas,
marijuana handlers permits, security alarm systems and lock standards, video
surveillance, health and safety standards, waste disposal, certified scales, transportation,
insurance, business records, and rules regarding a marijuana inventory tracking system.
You may comment on the proposed regulation changes, including the potential costs to private persons of
complying with the proposed changes, by submitting written comments to John Calder, Marijuana
The Marijuana Control Board proposes to adopt regulations to implement the
marijuana law which was voted on as Ballot Measure 2 in November, 2014. These
proposed regulations relate to licensing and fees, rules for retail marijuana stores and
operating requirements for all marijuana establishments.
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Control Board at 550 W. 7th Ave, Suite 1600, Anchorage, AK 99501. Additionally, the Marijuana Control
Board will accept comments by electronic mail at john.calder@alaska.gov. Comments may also be
submitted through the Alaska Online Public Notice System, by accessing this notice on the system and
using the "comment" link. The comments must be received no later than 4:30 p.m. on Aug 8, 2015.
You may submit written questions relevant to the proposed action to John Calder by email and physical
address. Please do not submit questions through the Alaska Online Public Notice System. The questions
must be received at least 10 days before the end of the public comment period. The Marijuana Control
Board will aggregate its response to substantially similar questions and make the questions and response
available on the Marijuana Control Board website. The Marijuana Control Board may, but is not required
to, answer written questions received after the 10-day cut-off date and before the end of the comment
period.
If you are a person with a disability who needs a special accommodation in order to participate in this
process, please contact John Calder at (907) 269-0350 no later than July 30, 2015 to ensure that any
necessary accommodations can be provided.
A copy of the proposed regulation changes is available through the electronic link to the complete text on
the Alaska Online Public Notice System, on the Alcoholic Beverage Control Board website at
http://commerce.state.ak.us/dnn/abc/Home.aspx and by contacting John Calder at 550 W. 7th Ste 1600,
Anchorage, AK 99501.
After the public comment period ends, the Marijuana Control Board will either adopt the proposed
regulations or other provisions dealing with the same subject, without further notice, or decide to take no
action. The language of the final regulations may be different from that of the proposed regulations. You
should comment during the time allowed if your interests could be affected.
Statutory Authority: AS 17.38.090
Statutes Being Implemented, Interpreted, or Made Specific: AS 17.38.090
Fiscal Information: The proposed regulation changes are not expected to require an increased
appropriation.
DATE: July 6, 2015 _________________________________________
Cynthia A. Franklin, Director
Marijuana Control Board
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Chapter 306. Regulation of Marijuana Industry.
Article
1. Licensing, Fees (3 AAC 306.010-3AAC 306.95)
2. Local Options (3 AAC 306.200-3AAC 306.270)
3. Marijuana Retail Stores (3 AAC 306.300-3AAC 306.355)
4. Marijuana Cultivation and Brokerage Licenses (3 AAC 306.400-3AAC 306.___)
5. Marijuana Products Manufacturing Facilities (3 AAC 306.500-3AAC 306.___)
6. Marijuana Testing Facilities (3 AAC 306.600-3AAC 306.6__)
7. Operating Requirements for All Marijuana Establishments (3 AAC 306.700-3AAC 306.760)
8. Enforcement, Civil Penalties (3 AAC 306.800-3AAC 306.___)
9. General Provisions (3 AAC 306.900-3AAC 306.___)
Article 1. Licensing, fees.
Section
05. License required
10. License restrictions
15. License conditions
20. Application for new license
25. Application procedure
30. Application for renewal of license
35. Ownership change to be reported
40. Application for transfer of a license to another person
45. Relocation of licensed premises not allowed
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50. Criminal justice information and records
55. Protest by local government
60. Public participation
65. Public hearing
70. Procedure for action on license application
75. Denial of license application
80. Informal conference
85. Formal hearing
90. Appeals.
95. Fees, refund and forfeiture
3 AAC 306.005. License required. A marijuana establishment may not operate in the
state unless it has obtained the applicable marijuana establishment license from the board. The
board will issue the following marijuana establishment licenses under this chapter:
(1) a retail marijuana store license, granting authority for activities allowed under
AS 17.38.070(a), and subject to the provisions of 3 AAC 306.300-3 AAC 306.355 and 3 AAC
306.700-3AAC 306.760;
(2) a marijuana cultivation facility license, as described in 3 AAC 306.4__,
granting authority for activities allowed under AS 17.38.070(b), and subject to the provisions of
3 AAC 306.400 -3 AAC 306.4__ and 3 AAC 306.700-3AAC 306.760 ;
(3) a marijuana product manufacturing facility license, as described in 3 AAC
306.5__, granting authority for activities allowed under AS 17.38.070(c), and subject to the
provisions of 3 AAC 306.500-3 AAC 306.___and 3 AAC 306.700-3AAC 306.760; and
(4) a marijuana testing facility license, granting authority for activities allowed
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under AS 17.38.070(d), and subject to the provisions of 3 AAC 306.600-3 AAC 306.6__ and 3
AAC 306.700-3AAC 306.760. (Eff. ___/___ /____, Register ____)
Authority: AS 17.38.010 AS 17.38.070 AS 17.38.084
AS 17.38.087 AS 17.38.090 AS 17.38.100
AS 17.38.900
3 AAC 306.010. License restrictions. (a) The board will not issue a marijuana
establishment license if the licensed premises will be located within 200 feet of a child-centered
facility including a school, daycare, or other facility providing services to children; a building in
which religious services are regularly conducted; or a correctional facility. The distance
specified in this subsection must be measured by the shortest pedestrian route from the public
entrance of the building in which the licensed premises would be located to the outer boundaries
of the child-centered facility, or to the main public entrance of the building in which religious
services are regularly conducted, or the correctional facility. This section does not prohibit the
renewal of an existing marijuana establishment license or the transfer of an existing marijuana
establishment license to another person if the licensed premises were in use before the child-
centered facility, the building in which religious services are regularly conducted, or the
correctional facility began use of a site within 200 feet. If an existing marijuana establishment
license for premises located within 200 feet of a child-centered facility, a building in which
religious services are regularly conducted, or a correctional facility is revoked, or expires, the
board will not issue another marijuana establishment license for the same premises unless the
school grounds, the building in which religious services are regularly conducted or the
correctional facility no longer occupies the site within 200 feet.
(b) The board will not issue a marijuana establishment license if the licensed premises
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will be located in or immediately adjacent to a liquor license premises.
(c) The board will not issue a marijuana establishment license when a municipality
protests an application under 3 AAC 306.055 on the grounds that that the applicant’s proposed
licensed premises are located in a place within the municipality where a local zoning ordinance
prohibits the marijuana establishment, unless the municipality has approved a variance of the
local ordinance.
(d) The board will not issue a marijuana establishment license to a person
(1) who is prohibited under AS 17.38.100(i) from receiving a marijuana
establishment license because of a conviction of a felony; if the applicant is a partnership,
limited liability company, or corporation, the board will not issue a license if any person named
in 3 AAC 306.020(a)(1) is prohibited under AS 17.38.100(i) from obtaining a license; in this
paragraph, “conviction of a felony” includes a suspended imposition of sentence;
(2) who operated a marijuana delivery service, a marijuana club, or a marijuana
establishment illegally without a license within the two years before the effective date of this
section, or has been found guilty of a criminal act or violation of AS 04, or a violation of AS
17.38, unless the board finds that person has diligently worked with the board to comply with all
current laws relating to marijuana. (Eff. ___/___ /____, Register ____)
Authority: AS 17.38.010 AS 17.38.070 AS 17.38.084
AS 17.38.087 AS 17.38.090 AS 17.38.100
AS 17.38.900
3 AAC 306.015. License conditions. (a) The board will issue each marijuana
establishment license to a specific individual, to a partnership, including a limited partnership, to
a limited liability company, or to a corporation. A person other than a licensee may not have a
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direct or indirect financial interest in the business for which a marijuana establishment license is
issued.
(b) The board will not issue a marijuana establishment license to
(1) an individual or a sole proprietorship unless the individual or proprietor is a
resident of the state;
(2) a partnership unless each partner is a resident of the state;
(3) a limited liability company unless the limited liability company is qualified to
do business in the state, and each member of the limited liability company is a resident of the
state; or
(4) a corporation unless the corporation is incorporated or qualified to do
business in the state, and each shareholder who owns the corporation’s shares is a resident of the
state.
(c) The board will issue each license for a specific location identified on the license as
the licensed premises. A marijuana establishment must have a right to possession of a licensed
premises at all times, and may not lease a licensed premises to another person for any reason. If
a marijuana establishment wishes to reduce or expand the area of the licensed premises used for
a marijuana establishment, the marijuana establishment shall submit a new line drawing showing
the proposed changes to the premises, and shall obtain the written approval of the board. A
marijuana establishment may not relocate its licensed premises to a different place. Any new
premises proposed for a marijuana establishment requires a new marijuana establishment license
application.
(d) The board will impose other conditions or restrictions on a license issued under this
chapter when it finds that it is in the interests of the public to do so.
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(e) In this section,
(1) "direct or indirect financial interest" means a legal or equitable interest in the
operation of a business licensed under this title; "direct or indirect financial interest" does not
include a person’s right to receive
(A) rental charges on a graduated or percentage lease-rent agreement for
real estate leased to a licensee; or
(B) a consulting fee from a licensee for services that are allowed under
this chapter;
(2) “resident of the state” means a person who meets the residency requirement
for an Alaska permanent fund dividend in the calendar year in which that person applies for a
marijuana establishment license under this chapter. (Eff. ___/___ /____, Register ____)
Authority: AS 17.38.010 AS 17.38.070 AS 17.38.084
AS 17.38.087 AS 17.38.090 AS 17.38.100
AS 17.38.900
3 AAC 306.020. Application for new license. (a) An applicant for a new marijuana
establishment license shall file an application as provided in 3 AAC 306.025, on a form the
board prescribes, with the information and documents described in this section, along with the
application fee and the annual license fee set out in 3 AAC 306.095, and the fingerprint cards
and fees required by 3 AAC 306.050(b). The application must be initiated electronically; the
completed application and fees may be filed electronically, or mailed or delivered to the director
at the offices of the board.
(b) An application for a new marijuana establishment license must include:
(1) the name of the proposed licensee and any business name the licensee will
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use for the proposed marijuana establishment, along with the Alaska business license and
employer identification number (EIN) for the proposed marijuana establishment;
(2) the name, mailing address, phone number, and social security number of the
applicant and each family member and affiliate of the applicant; unless the context indicates
otherwise, all persons named in an application that complies with this section are “licensees” for
all purposes in this chapter; the persons to be identified as applicants under this section include
(A) if the applicant is a partnership, including a limited partnership, the
information required in this paragraph for each general partner, family member and affiliate of a
general partner, and for each partner, family member and affiliate of each partner that holds any
interest in the partnership;
(B) if the applicant is a limited liability company, the information
required in this paragraph for the limited liability company’s registered agent, and for each
member, family member, and affiliate of each member who holds any ownership interest; and
(C) if the applicant is a corporation, the information required in this
paragraph for each corporate officer, family member, and affiliate of the corporate officer, and
each stockholder, family member, and affiliate of a stockholder who owns any of the
corporation’s stock;
(3) for each applicant that is not an individual, the applicable information as
follows:
(A) for a partnership, including a limited partnership, the partnership
agreement, the name of each general or managing partner, and a list of all partners with
percentage of ownership of each partner;
(B) for a limited liability company, the LLC agreement, a list of all
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members with percentage of ownership of each member;
(C) for a corporation, the certificate of incorporation, the name of each
corporate officer, and a list of all shareholders with percentage of ownership of each shareholder;
(4) for each person listed in compliance with paragraph (2) of this subsection, a
statement of financial interest on a form the board prescribes;
(5) for each applicant that is not an individual, the name of the individual listed in
the application under paragraph (2) of this subsection who is responsible for
(A) management of the marijuana establishment; and
(B) compliance with all applicable laws;
(6) an electronic mail address at which the applicant agrees to receive any
correspondence from the board before and after it receives a license; an applicant and a licensee
must ensure that any electronic mail address provided to the board is current so that the board
can contact the applicant or licensee at any time;
(7) the type of license the applicant is requesting;
(8) the address of the premises where the applicant intends to operate a marijuana
establishment; and a detailed diagram of the proposed licensed premises; the diagram must show
all entrances and boundaries of the premises, restricted access areas, and storage areas;
(9) the title, lease or other documentation showing the applicant’s right to
possession of the proposed licensed premises;
(10) an affidavit showing where and when the applicant posted notice of the
application; and proof of advertising as required in 3 AAC 306.025(b); and
(11) additional information required by the board as follows:
(A) for a retail marijuana store, the information set out at 3 AAC 306.315;
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(B) for a marijuana cultivation facility, the information set out at 3 AAC
306.4__;
(C) for a marijuana product manufacturing facility, the information set out
at 3 AAC 306.5__; and
(D) for a marijuana testing facility, the information set out at 3 AAC
306.6__.
(c) A marijuana establishment license application must include the applicant’s operating
plan, in a format the board prescribes, describing the proposed marijuana establishment’s plans
for
(1) security;
(2) inventory tracking of all marijuana and marijuana product on the premises;
(3) employee qualification and training;
(4) waste disposal;
(5) transportation and delivery of marijuana and marijuana products; and
(6) signage and advertising.
(d) An application for a marijuana establishment license must be signed by
(1) the applicant, if the applicant is an individual;
(2) an authorized general partner if the applicant is a partnership, including a
limited partnership;
(3) the registered agent or a member of the limited liability company if the
applicant is a limited liability company; or
(4) the authorized officers of the corporation if the applicant is a corporation.
(e) Each person signing an application for a marijuana establishment license must
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declare under penalty of perjury that
(1) the application is true, correct and complete;
(2) the applicant has read and is familiar with AS 17.38 and this chapter; and
(3) the applicant will provide all information the board requires in support of the
application. (Eff. ___/___ /____, Register ____)
Authority: AS 17.38.010 AS 17.38.070 AS 17.38.084
AS 17.38.087 AS 17.38.090 AS 17.38.100
AS 17.38.900
Editor’s note: Forms and instructions for filing an application for a marijuana
establishment license can be obtained online at the Marijuana Control Board’s website or at the
board’s office. The board’s Internet address is http://commerce.state.ak.us/dnn/abc/Home
and its office is at 550 West 7th Ave. Suite 1600, Anchorage, AK 99501. The board’s telephone
number is (907) 269-0350.
3 AAC 306.025. Application procedure. (a) An applicant shall initiate a new
marijuana establishment license application on a form the board prescribes, using the board’s
electronic system.
(b) As soon as practical after initiating a new marijuana license application, the applicant
shall give notice of the application to the public by
(1) posting a true copy of the application for 10 days at
(A) the location of the proposed licensed premises; and
(B) one other conspicuous location in the area of the proposed premises;
and
(2) by publishing an announcement once a week for three consecutive weeks in a
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newspaper of general circulation in the area, or in areas where no newspaper circulates, twice a
week for three successive weeks during triple A advertising time by announcements on a radio
station serving the local area where the proposed licensee seeks to operate, stating
(A) the name of the applicant and the transferee if applicable;
(B) the name and location of the proposed premises;
(C) the regulation citation and type of license applied for;
(D) that any comment or objection may be submitted to the board; and
(E) whether the application is for a new license or transfer of an existing
license to another person; and
(3) by submitting a true copy of the application to
(A) the local government; and
(B) any community council in the area of the proposed licensed premises.
(c) After the applicant completes the notice requirements in subsection (b) of the section
and submits all remaining application requirements listed in 3 AAC 306.020, the applicant shall
pay the application and licensing fees set out in 3 AAC 306.095. The applicant shall then use the
board’s electronic system to inform the board that the applicant has submitted a complete
application.
(d) When the board receives an application for a marijuana establishment license, the
board will determine if the application is complete. Any application for a marijuana
establishment license that the board receives without the application fee is incomplete.
(e) When the board receives an incomplete application, the board may, in its discretion,
(1) return the application in its entirety; or
(2) request the applicant to provide additional items needed to complete the
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application.
(f) When the board informs an applicant that its application is incomplete as provided in
(e) of this section, the applicant has 90 days from the date of the board’s notice to complete the
application. If an applicant fails to complete its application within 90 days after the board’s
notice, the applicant shall file a new application and pay a new application fee to obtain a
marijuana establishment license. (Eff. ___/___ /____, Register ____)
Authority: AS 17.38.010 AS 17.38.070 AS 17.38.084
AS 17.38.087 AS 17.38.090 AS 17.38.100
AS 17.38.900
3 AAC 306.030. Application for renewal of license. (a) On or before May 1 of each
year, the director shall send notice that a marijuana establishment must file a renewal application
no later than June 30 of the current year. The director shall send the notice to the marijuana
establishment’s electronic mailing address on file with the board. The notice will include online
access to the electronic renewal application along with instructions on using and submitting the
form. The marijuana establishment shall submit the completed renewal application
electronically, along with the license renewal fee, to the director no later than June 30 of each
year; if June 30 falls on a weekend, the deadline is extended to close of business on the first
business day following June 30. Each marijuana establishment is responsible for maintaining a
current electronic address on file with the board. A marijuana establishment is not excused from
filing a renewal application as required in this section even if the marijuana establishment fails to
receive a renewal notice from the director.
. (b) A marijuana establishment’s renewal application must:
(1) identify the license sought to be renewed by license number, license type,
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establishment name, and premises address;
(2) provide the information required for a new license application under 3 AAC
306.020(a) except that public notice of the application is not required;
(3) report any change from the marijuana establishment’s new license application
or last renewal application, and pay the $250 fee as provided in 3 AAC 306.095 for board review
of any change in
(A) the name of the marijuana establishment business;
(B) the licensed premises from the last diagram submitted; and
(C) the marijuana establishment’s operating plan;
(4) report, for the licensee, if an individual, or each person listed in 3 AAC
306.020 if the licensee is a corporation, partnership, or limited liability company, a list of
(A) any criminal charge on which the person has been convicted in the
previous two calendar years; and
(B) any civil violation of AS 04, AS 17.38, or this chapter in the previous
two calendar years; and
(5) declare under penalty of perjury that
(A) the application is true, correct and complete;
(B) the applicant has read and is familiar with AS 17.38 and this chapter;
and
(C) the applicant will provide all information the board requires in
support of the renewal application.
(c) The director may require an applicant for renewal of a license under this chapter to
submit fingerprints and pay fees as required by 3 AAC 306.050(b).
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(d) A licensee that does not deliver a renewal application to the director by June 30 of
each year is delinquent, and must pay a non-refundable $1000 late renewal application fee with
the renewal application.
(e) On or before August 15 of each year, the director shall deliver a notice of expiration
to each marijuana establishment that has not filed a complete application for renewal of a license,
along with any applicable affidavit and the required fee, unless the marijuana establishment has
notified the director that it does not intend to seek a renewal of its license. The notice of
expiration will be delivered by electronic mail to the address the marijuana establishment has
provided to the board. A marijuana establishment is not excused from filing a license renewal
application no later than August 31 of each year even it the marijuana establishment does not
receive the notice of expiration described in this section.
(f) If a marijuana establishment fails to deliver a complete license renewal application, or
fails to pay the required renewal fee and the late renewal application fee by August 31 of each
year, that marijuana establishment license expires at 12:00 midnight on August 31 of that year.
A holder of an expired license shall immediately return the license to the board. Any holder of
an expired license that seeks authority to operate must file a complete new application under 3
AAC 306.020, and 3 AAC 306.025, along with the required fees. The board will not issue a new
license for the same premises to the holder of an expired license unless the expired license
holder’s new application contains proof satisfactory to the board of good cause for the failure to
file a license renewal application. (Eff. ___/___ /____, Register ____)
Authority: AS 17.38.010 AS 17.38.070 AS 17.38.084
AS 17.38.087 AS 17.38.090 AS 17.38.100
AS 17.38.900
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3 AAC 306.035. Ownership change to be reported. A licensed marijuana
establishment must, within ten days after an ownership change as described in this section, report
the change on a form prescribed by the board. An ownership change means
(1) when the licensee is a partnership, including a limited partnership,
any change in the identify of the partners, or in the ownership percentages held by any partners;
(2) when the licensee is a limited liability company, any change in the identity of
the members, or in the ownership percentage held by any member; or
(3) when the licensee is a corporation, any sale of corporate stock to a person not
currently an owner, or any change of the percentage ownership of an existing shareholder.
(b) When any change required to be reported under this section will result in a change in
controlling interest of the licensee, the licensee must file an application for transfer of license to
another person under 3 AAC 306.040. (Eff. ___/___ /____, Register ____)
Authority: AS 17.38.010 AS 17.38.070 AS 17.38.084
AS 17.38.087 AS 17.38.090 AS 17.38.100
AS 17.38.900
3 AAC 306.040. Application for transfer of a license to another person. (a) A
person may not receive or transfer a marijuana establishment license or a controlling interest in a
marijuana establishment license issued to a partnership, including a limited partnership, a limited
liability organization, or a corporation, without applying for and receiving the written consent of
the board. Transfer of a license includes a sale of all or part of the interest of an individual
owner.
(b) An application for transfer of a marijuana establishment license, or of a controlling
interest in a marijuana establishment license issued to a partnership, a limited liability
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organization, or a corporation, must be filed in writing on a form the board prescribes, in
compliance with the application procedure set out in 3 AAC 306.025. The application must
name the current licensee and the proposed transferee, including all persons listed in 3 AAC
306.020 if the transferee is a partnership, limited liability company, or a corporation. The
application must contain the following information:
(1) the same information about each transferee as is required of an applicant for a
new license under 3 AAC 306.020;
(2) a statement, under oath, executed by the current licensee, listing all debts of
the business, all taxes the business owes, current contact information for all creditors, and an
affirmation that the current licensee has submitted a copy of the transfer application to all
creditors; and
(3) any other information required by the board for the type of marijuana
establishment license sought to be transferred.
(d) After the board receives a complete application for transfer of a license to another
person, the board will, within 28 days, send written notice of the proposed transfer to each listed
creditor of the current licensee, and the amount shown as owed to that creditor.
(e) A current marijuana establishment licensee must submit a license renewal application
before or at the same time as an application for a transfer of a marijuana establishment license
that is submitted between May 1 and June 30 of any year. (Eff. ___/___ /____, Register ____)
Authority: AS 17.38.010 AS 17.38.070 AS 17.38.084
AS 17.38.087 AS 17.38.090 AS 17.38.100
AS 17.38.900
3 AAC 306.045. Relocation of licensed premises not allowed. A marijuana
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establishment license may not be relocated to any other premises. A marijuana establishment
licensee that wishes to operate a marijuana establishment at a different location shall submit a
new application for any new premises, and surrender an existing license for a premises where the
marijuana establishment does not intend to continue its operation. (Eff. ___/___ /____, Register
____)
Authority: AS 17.38.010 AS 17.38.070 AS 17.38.084
AS 17.38.087 AS 17.38.090 AS 17.38.100
AS 17.38.900
3 AAC 306.050. Criminal justice information and records. (a) When filing an
application for a new marijuana establishment license or transfer of a license, the applicant,
including all persons listed in 3 AAC 306.020, must submit the person’s fingerprints and the fees
required by the Department of Public Safety under AS 12.62.160 for criminal justice information
and a national criminal history record check.
(b) The board will submit the fingerprints to the Department of Public Safety to obtain a
report of criminal justice information under AS 12.62 and a national criminal history record
check under AS 12.62.400. The Department of Public Safety may submit the fingerprints to the
Federal Bureau of Investigation for a national criminal history record check. The board will use
the information obtained under this section to determine if an applicant is qualified for a
marijuana establishment license.
(c) In this section, "criminal justice information" has the meaning given in AS 12.62.900.
(Eff. ___/___ /____, Register ____)
Authority: AS 17.38.010 AS 17.38.070 AS 17.38.084
AS 17.38.087 AS 17.38.090 AS 17.38.100
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AS 17.38.900
3 AAC 306.055. Protest by local government. (a) A local government may protest
an application for a new license, renewal of a license, or transfer of a license to another person
by sending the board and the applicant a written protest and the reasons for the protest within 60
days after the board sends notice of the application. The board will not accept a protest received
after the 60-day period. If a local government protests an application for a new or renewal
license or for a transfer of a license to another person, the board will deny the application unless
the board finds that the protest is arbitrary, capricious, and unreasonable.
(c) A local government may recommend that an application for a new license, renewal of
a license, or transfer of a license to another person be approved subject to a condition. The board
will impose a condition recommended by a local government unless the board finds the
recommended condition is arbitrary, capricious, and unreasonable. If the board imposes a
condition a local government recommends, the local government shall, unless the board provides
otherwise, assume responsibility for monitoring compliance with the condition.
(d) If a local government determines that a marijuana establishment has violated a
provision of AS 17.38, this chapter, or a condition the board has imposed on the licensee, the
local government may notify the board. Unless the board finds that the local government's
notice is arbitrary, capricious, and unreasonable, the board will prepare the determination as an
accusation against the licensee under AS 44.62.360 and conduct proceedings to resolve the
matter as described under 3 AAC 306.8__. (enforcement chapter, not yet written) (Eff. ___/___
/____, Register ____)
Authority: AS 17.38.010 AS 17.38.070 AS 17.38.084
AS 17.38.087 AS 17.38.090 AS 17.38.100
Page 88 of 172
AS 17.38.900
3 AAC 306.060. Public participation. (a) Any person may object to an application for
a new license, renewal of a license, or transfer of a license to another person by submitting a
written statement of reasons for the objection to the board within 30 days after notice of the
application, but no later than the deadline for objections stated in a posted or published notice of
application. The objection must be served on the applicant at the street address of the licensed
premises or proposed premises, or at the mailing address or electronic mail address provided in
the notice of application. If the board determines to conduct a public hearing under this section,
any interested person may give oral testimony at the public hearing.
Authority: AS 17.38.010 AS 17.38.070 AS 17.38.084
AS 17.38.087 AS 17.38.090 AS 17.38.100
AS 17.38.900
3 AAC 306.065. Public hearing. (a) The board may, on its own initiative or in
response to an objection or protest, hold a hearing to ascertain the reaction of the public or a
local government to an application. The board will send notice of a hearing 20 days in advance
of the hearing to each person that has filed an objection, to each local government that has filed a
protest, to each community council in the area of the proposed premises, and to any nonprofit
community organization that has requested notice. Any interested person may be heard at a
hearing under this subsection. Unless the applicant and the board waive this requirement, the
hearing will be held in the area for which the application is requested, or the board will arrange
telephonic appearances.
Authority: AS 17.38.010 AS 17.38.070 AS 17.38.084
AS 17.38.087 AS 17.38.090 AS 17.38.100
Page 89 of 172
AS 17.38.900
3 AAC 306.070. Procedure for action on license application. (a) The board will
decide whether to grant or deny an application within 90 days after receiving the complete
application. However, the decision may not be made before the time allowed for objection under
3AAC 306.060 or protest under 3 AAC 306.055 has elapsed unless the local government waives
its right to protest.
(b) At least 7 days before the date set for board action on an application for a new
license, renewal of a license, or transfer of a license to another person, the board will post a
meeting agenda listing the matters scheduled for action at that meeting. The board may review an
application for a new license, renewal of a license, or transfer of a license to another person,
without additional notice to the applicant.
(c) The board will consider any written objection, protest, suggested condition, or
petition, and any testimony received at a public hearing when it considers the application, and
will retain the written objection, protest, or suggested condition or petition, and the hearing
record as part of the board's permanent record of its review of an application. (Eff. ___/___
/____, Register ____)
Authority: AS 17.38.010 AS 17.38.070 AS 17.38.084
AS 17.38.087 AS 17.38.090 AS 17.38.100
AS 17.38.900
3 AAC 306.075. Denial of license application. (a) After review of the application and
all relevant information, the board will deny an application for a new license if the board finds
that
(1) the application is not complete as required under the applicable provisions of
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3 AAC 306.040-3 AAC 306.070, or contains any false statement of material fact; or
(2) the license would violate any restriction in 3 AAC 306.010; or
(3) the license would not be in the interest of the public;
(4) the license would violate any restriction applicable to the particular license
under this chapter; or
(5) the license is prohibited under this chapter as a result of an ordinance or
election conducted under AS 17.38.110, 3 AAC 306.200, and 3 AAC 306.230.
(b) After review of the application and all relevant information, the board will deny an
application for renewal of a marijuana establishment license if the board finds
(1) any cause listed in (a) of this section;
(2) that the license has been revoked for any cause;
(3) that the license has been operated in violation of a condition or restriction the
board previously imposed; or
(4) that the applicant is delinquent in the payment of taxes due in whole or in part
from operation of the licensed business.
(c) After review of the application and all relevant information, the board will deny an
application for transfer of license to another person if the board finds
(1) any cause listed in (a) of this section;
(2) that the transferor has not paid all debts or taxes arising from the operation of
the business licensed under this chapter unless the transferor gives security for the payment of
the debts or taxes satisfactory to the creditor or taxing authority;
(3) that transfer of the license to another person would result in violation of the
provisions of this chapter relating to identity of licensees and financing of licensees; or
Page 91 of 172
(4) that the prospective transferee does not have the qualifications of an original
applicant required under this chapter.
(d) If the board denies an application for a new license, renewal, or transfer, the board
will, within 15 days, furnish a written notice of denial to the applicant, stating the reason for the
denial in clear and concise language, and identifying any statute or regulation relevant to the
denial. The notice of denial must inform the applicant of the right to an informal conference and
a formal hearing as provided in 3 AAC 306.080 and 3 AAC 306.085. (Eff. ___/___ /____,
Register ____)
Authority: AS 17.38.010 AS 17.38.070 AS 17.38.084
AS 17.38.087 AS 17.38.090 AS 17.38.100
AS 17.38.900
3 AAC 306.080. Informal conference. (a) An applicant for a new license, renewal of a
license, or transfer of a license that is aggrieved by an action of the board denying the application
may, within 15 days after the date of the written notice of denial, request an informal conference
with the director or the board. An informal conference requested under this section will be held
at a time and place convenient to the parties, but not later than the next scheduled meeting of the
board. An informal conference may be conducted telephonically.
(b) If the informal conference does not resolve the matter to the applicant’s satisfaction,
the applicant may, within 15 days after the last day of the informal conference, seek a formal
hearing under 3 AAC 306.085 by filing a notice of defense in compliance with AS 44.62.380(b).
(Eff. ___/___ /____, Register ____)
Authority: AS 17.38.010 AS 17.38.070 AS 17.38.084
AS 17.38.087 AS 17.38.090 AS 17.38.100
Page 92 of 172
AS 17.38.900
3 AAC 306.085. Formal hearing. An applicant for a new license, renewal of a license,
or transfer of a license that is aggrieved by an action of the board denying the application may
request a formal hearing by filing a notice of defense in compliance with AS 44.62.380(b) within
15 days after the date of the written notice of the denial, or as provided in 3 AAC 306.080(b) if
the applicant requested and participated in an informal conference. Failure to file a notice of
defense as provided in this section constitutes a waiver of the right to a formal hearing.
(b) When an aggrieved person requests a hearing under the section, the Office of
Administrative Hearings will conduct the hearing in compliance with due process, the Alaska
Administrative Procedure Act, AS 44.62.330-44.62.630, and the applicable regulations adopted
by the Office of Administrative Hearings at 2 AAD 64.100-2 AAC 64.990. (Eff. ___/___ /____,
Register ____)
Authority: AS 17.38.010 AS 17.38.070 AS 17.38.084
AS 17.38.087 AS 17.38.090 AS 17.38.100
AS 17.38.900
3 AAC 306.090. Appeals. (a) An aggrieved applicant or licensee may appeal to the
board regarding any action of an officer, employee, or agent of the board relating to the
administration or enforcement of this chapter.
(b) An applicant or licensee aggrieved by a final decision of the board regarding an
application for a new license, a license renewal, or a transfer of license to another person may
appeal to the superior court under AS 44.62.560. (Eff. ___/___ /____, Register ____)
Authority: AS 17.38.010 AS 17.38.070 AS 17.38.084
Page 93 of 172
AS 17.38.087 AS 17.38.090 AS 17.38.100
AS 17.38.900
3 AAC 306.095. Fees, refund and forfeiture. (a) The non-refundable application fee
for a new marijuana establishment license or an application to transfer a license to another
person is $1000.
(b) The non-refundable application fee for a license renewal application is $600; in
addition, a late renewal application fee is $1000.
(c) The fee to request board approval of a change in business name, licensed premises
diagram, or operating plan reported with a license renewal application is $250.
(d) The annual license fee, to be paid with each application for a new marijuana
establishment facility license and each license renewal application is
(1) for a marijuana retailer license, $5000;
(2) for a limited marijuana cultivation facility license, $1000;
(3) for a marijuana cultivation facility license, $5000;
(4) for a marijuana cultivator’s broker license, $5000;
(5) for a marijuana extract only manufacturing facility license, $1000;
(6) for a marijuana product manufacturing facility license, $5000;
(7) for a marijuana testing facility license, $1000.
(e) If the board denies an application for a license or for renewal of a license, the board
will refund the annual license fee. The board will not refund a license fee after the license has
been issued.
(f) Processing fees for late renewal after failure to pay taxes are as follows:
(1) if a licensee pays its delinquent tax after a local government protests renewal
Page 94 of 172
of the license, but before the board denies license renewal, $200;
(2) if a licensee pays its delinquent tax after appealing the board’s denial of a
license renewal, but before a hearing officer is appointed to hear the applicant’s appeal, $500;
(3) if a licensee pays its delinquent tax after appealing the board’s denial of a
license renewal, but before the administrative hearing begins, $5000; and
(4) if a licensee pays its delinquent tax after an administrative hearing that results
in a hearing officer recommendation to deny the license renewal, $10,000. (Eff. ___/___ /____,
Register ____)
Authority: AS 17.38.010 AS 17.38.070 AS 17.38.084
AS 17.38.087 AS 17.38.090 AS 17.38.100
AS 17.38.900
Page 95 of 172
Article 3. Marijuana Retail Stores.
Section
300. Marijuana retail store license required
305. Marijuana retail store privileges
310. Acts prohibited at marijuana retail store
315. Application for marijuana retail store license
320. Restricted access area at marijuana retail store
325. Marijuana handler permit required
330. Identification requirement to prevent sale to person under the age of 21
335. Limit on quantity sold
340. Health and safety requirements for marijuana retail store
345. Testing required for marijuana sold at retail store
350. Restriction on the advertising of marijuana and marijuana products
355. Marijuana inventory tracking system
3 AAC 306.300. Marijuana retail store license required. A person may not sell, give,
distribute, or deliver, or offer to sell, give, distribute, or deliver marijuana or any marijuana
product to a consumer unless the person has obtained a marijuana retail store license from the
board in compliance with this chapter, or is an employee or agent of a licensed marijuana retail
store operating in compliance with this chapter. A person seeking a marijuana retail store license
must
(1) submit an application for a marijuana retail store license on a form the board
prescribes, including the information set out at 3 AAC 306.020 and 3 AAC 306.320;
(2) operate in compliance with the provisions of 3 AAC 306.300-3 AAC
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306.355; and
(3) operate in compliance with the provisions of 3 AAC 306-700-3 AAC
306.760. Eff. ___/___ /____, Register ____)
Authority: AS 17.38.010 AS 17.38.070 AS 17.38.084
AS 17.38.087 AS 17.38.090 AS 17.38.100
AS 17.38.900
3 AAC 306.305. Marijuana retail store privileges. (a) A licensed marijuana retail
store is authorized to carry out the activities listed in AS 17.38.070)(a). In AS 17.38.070)(a),
(1) “deliver” means “hand to a person who purchases the product on the licensed
premises only; “deliver” does not mean transfer or transport to a consumer off the licensed
premises;”
(2) “possess” means having physical possession or control over property;
(3) “transport” or “transfer” means to deliver between licensed marijuana
establishments as provided in 3 AAC 306.745.
(b) A licensed marijuana retail store is authorized to
(1) sell marijuana purchased from a licensed marijuana cultivation facility,
packaged and labeled as required under 3 AAC 306.4__, in an amount not exceeding the limits
set out in 3 AAC 306.335 a day, to an individual on the licensed premises for consumption off
the premises;
(2) sell a marijuana product purchased from a licensed marijuana product
manufacturing facility, packaged and labeled as required under 3 AAC 306.4__, in an amount
not exceeding the limits set out in 3 AAC 306.335, to an individual on the licensed premises for
consumption off the premises;
Page 97 of 172
(3) store marijuana and marijuana products in a restricted area on the licensed
premises subject to the requirements of 3 AAC 306.720 and 3 AAC 306.725.
(c) This section does not prohibit a licensed retail store from refusing to sell marijuana or
marijuana product to any customer. Eff. ___/___ /____, Register ____)
Authority: AS 17.38.010 AS 17.38.070 AS 17.38.084
AS 17.38.087 AS 17.38.090 AS 17.38.100
AS 17.38.900
3 AAC 306.310. Acts prohibited at marijuana retail store. (a) A licensed marijuana
retail store may not sell, give, distribute, or deliver, or offer to sell, give, distribute, or deliver,
marijuana or any marijuana product
(1) to any person under the age of 21;
(2) that is not labeled and packaged as required in 3 AAC 306.4__ or 3 AAC
306.5__;
(3) in a quantity exceeding the limit set out in 3 AAC 306.335;
(4) over the internet; a licensed marijuana retail store may only sell marijuana or
marijuana product to a consumer who is physically present on the licensed premises;
(5) after the expiration date shown on the label of the marijuana or marijuana
product.
(c) A licensed marijuana retail store may not
(1) conduct any business on, or allow any person to access, the marijuana retail
store’s licensed premises between the hours of 12 midnight and 8:00 a.m. each day;
(2) allow any person to consume marijuana or any marijuana product on the
marijuana retail store’s licensed premises;
Page 98 of 172
(3) offer or deliver to a consumer, as a marketing promotion or for any other
reason:
(A) free marijuana or marijuana product, including a sample;
(B) marijuana or marijuana product at a price below the marijuana retail
store’s acquisition cost; or
(C) a consumable product other than marijuana, including cigarettes,
tobacco products, alcoholic or non-alcoholic beverages or food, free or for compensation.
(d) A marijuana retail store may not purchase any marijuana or marijuana product for
resale without a certificate showing the tax due under AS 43.61.010 has been paid to the state.
Eff. ___/___ /____, Register ____)
Authority: AS 17.38.010 AS 17.38.070 AS 17.38.084
AS 17.38.087 AS 17.38.090 AS 17.38.100
AS 17.38.900
3 AAC 306.315. Application for marijuana retail store license. An applicant for a
new marijuana retail store license shall file an application on a form the board prescribes
including
(1) the information required under 3 AAC 306.020, including the applicant’s
operating plan required under 3 AAC 306.020(c); and
(2) an addition to the applicant’s operating plan showing how marijuana and
marijuana products at the retail store are to be displayed and sold. (Eff. ___/___ /____, Register
____)
Authority: AS 17.38.010 AS 17.38.070 AS 17.38.084
AS 17.38.087 AS 17.38.090 AS 17.38.100
Page 99 of 172
AS 17.38.900
3 AAC 306.320. Restricted access area at marijuana retail store. (a) Each entry to a
marijuana retail store must be posted with a sign that says “No one under 21 years of age
allowed.” The sign must be not less than 12 inches long and 12 inches wide, with letters at least
one half inch in height in high contrast to the background of the sign.
(b) An area of a marijuana retail store’s licensed premises where marijuana or any
marijuana product is stocked for sale, or dispensed for sale is a restricted access area. The
marijuana retail store must post signs, require identification, and escort visitors in compliance
with 3 AAC 306.710. (Eff. ___/___ /____, Register ____)
Authority: AS 17.38.010 AS 17.38.070 AS 17.38.084
AS 17.38.087 AS 17.38.090 AS 17.38.100
AS 17.38.900
3 AAC 306.325. Marijuana handler permit required. A marijuana retail store shall
ensure that
(1) each licensee, employee, or agent obtains a marijuana handler permit as
provided in 3 AAC 306.715 before being licensed or employed at a marijuana retail store; and
(2) each licensee, employee, or agent has that person’s marijuana handler permit
card in that person’s immediate possession when on the licensed premises of the marijuana retail
store. (Eff. ___/___ /____, Register ____)
Authority: AS 17.38.010 AS 17.38.070 AS 17.38.084
AS 17.38.087 AS 17.38.090 AS 17.38.100
AS 17.38.900
3 AAC 306.330. Identification requirement to prevent sale to person under the age
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of 21. (a) A licensed marijuana retail store shall refuse to sell marijuana or a marijuana product
to any person who does not produce a form of valid identification showing that person is 21
years of age or older.
(b) A valid form of identification includes:
(1) an unexpired, unaltered passport;
(2) an unexpired, unaltered driver's license; instruction permit, or identification
card of any state or territory of the United States, the District of Columbia, or any jurisdiction of
Canada;
(3) an identification card issued by a federal or state agency authorized to issue a
driver's license or identification card. (Eff. ___/___ /____, Register ____)
Authority: AS 17.38.010 AS 17.38.070 AS 17.38.084
AS 17.38.087 AS 17.38.090 AS 17.38.100
AS 17.38.900
3 AAC 306.335. Limit on quantity sold. (a) A licensed marijuana retail store shall not
sell more than the following quantity of marijuana or marijuana product in a single transaction:
(1) one ounce of usable marijuana;
(2) sixteen ounces of marijuana-infused product in solid form;
(3) seven grams of marijuana-infused extract for inhalation, or
(4) seventy-two ounces of marijuana-infused product in liquid form. (Eff.
___/___ /____, Register ____)
Authority: AS 17.38.010 AS 17.38.070 AS 17.38.084
AS 17.38.087 AS 17.38.090 AS 17.38.100
AS 17.38.900
Page 101 of 172
3 AAC 306.340. Health and safety requirements for marijuana retail store. A
marijuana retail store must comply with applicable health and safety requirements set out in 3
AAC 306.730. Eff. ___/___ /____, Register ____)
Authority: AS 17.38.010 AS 17.38.070 AS 17.38.084
AS 17.38.087 AS 17.38.090 AS 17.38.100
AS 17.38.900
3 AAC 306.345. Testing required for marijuana sold at retail store. (a) A
marijuana retail store may not sell, give, distribute, or deliver, or offer to sell, give, distribute, or
deliver, marijuana or any marijuana product until all quality assurance testing required in 3 AAC
306.6__ has been completed, and labels required in 3 AAC 306.4__ or 3AAC 306.5__ are
affixed. Eff. ___/___ /____, Register ____)
Authority: AS 17.38.010 AS 17.38.070 AS 17.38.084
AS 17.38.087 AS 17.38.090 AS 17.38.100
AS 17.38.900
3 AAC 306.350. Restriction on the advertising of marijuana and marijuana
products. (a) A marijuana retail store may have one sign identifying the store by the marijuana
retail store 's business name that is visible to the general public from the public right of way.
The sign may be in placed in the store’s window or attached to the outside of the licensed
premises. The size of the sign may not exceed sixteen hundred square inches.
(b) An advertisement for marijuana or marijuana product may not contain any statement,
or illustration that
(1) is false or misleading;
(2) promotes excessive consumption;
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(3) represents that the use of marijuana has curative or therapeutic effects;
(4) depicts a person under the age of 21 consuming marijuana; or
(5) includes an object or character, including a toy, a cartoon character, or any
other depiction designed to be appealing to children or other persons under legal age, promoting
consumption of marijuana.
(c) A marijuana retail store may not place an advertisement for marijuana or a marijuana
product
(1) within one thousand feet of the perimeter of any child-centered facility,
including a school, daycare or other facility providing services to children, a playground or
recreation center, a public park, a library, or a game arcade that is open to persons under the age
of 21;
(2) on or in a public transit vehicle or public transit shelter; or
(3) on or in a publicly owned or operated property.
(d) A marijuana retail store may not use giveaway coupons, or distribute branded
merchandise as promotional materials, or conduct promotional activities such as games or
competitions to encourage sale of marijuana or marijuana products.
(e) All advertising for marijuana or any marijuana product must contain the following
warnings:
(a) "This product has intoxicating effects and may be habit forming;"
(b) "Marijuana can impair concentration, coordination, and judgment. Do not
operate a vehicle or machinery under the influence of this drug;"
(c) "There may be health risks associated with consumption of this product;” and
(d) "For use only by adults twenty-one and older. Keep out of the reach of
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children." Eff. ___/___ /____, Register ____)
Authority: AS 17.38.010 AS 17.38.070 AS 17.38.084
AS 17.38.087 AS 17.38.090 AS 17.38.100
AS 17.38.900
3 AAC 306.355. Marijuana inventory tracking system. (a) A marijuana retail store
shall use an inventory tracking system as provided in 3 AAC 306.760 to ensure all marijuana and
marijuana product in the store’s possession is identified and tracked from the time the marijuana
retail store receives any batch of marijuana or lot of marijuana product through the sale, transfer
to another licensed marijuana establishment, or disposal of the batch of marijuana or lot of
marijuana product.
(b) When any marijuana from a marijuana cultivation facility or marijuana product from
a marijuana product manufacturing facility is delivered or transported to the licensed premises of
a marijuana retail store, the store marijuana retail store shall immediately enter identification
information for that batch of marijuana or lot of marijuana product into the inventory tracking
system. A marijuana retail store may not accept any marijuana or marijuana product that does
not have a valid transport manifest generated from the inventory tracking system.
(c) A marijuana retail store shall reconcile each transaction from the store’s point of sale
system and current inventory to its inventory tracking system at the close of business each day.
(d) A marijuana retail store shall account for any variance in the quantity of marijuana or
marijuana product the store received and the quantity the store sold, transferred or disposed of.
(Eff. ___/___ /____, Register ____)
Authority: AS 17.38.010 AS 17.38.070 AS 17.38.084
AS 17.38.087 AS 17.38.090 AS 17.38.100
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AS 17.38.900
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Article 7. Operating Requirements for All Marijuana Establishments.
Section
700. Licensed premises, alteration
705. Inspection of licensed premises
710. Restricted access areas
715. Marijuana handler permit
720. Security alarm systems and lock standards
725. Video surveillance
730. Health and safety standards
735. Waste disposal
740. Certified scales
745. Transportation
750. Insurance
755. Business records
760. Marijuana inventory tracking system
3 AAC 306.700. Licensed premises, alteration. (a) A marijuana establishment license
will be issued for a specific licensed premises, which is a place clearly designated in a license
application and described by a line drawing submitted with the license application. A licensed
premises must
(1) have adequate space for its approved operations, including growing,
manufacturing, processing, packaging, or storing marijuana or marijuana products; and
(2) be located and constructed to facilitate cleaning, maintenance and proper
operation.
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(b) A marijuana establishment’s license must be posted in a conspicuous place within the
licensed premises.
(c) A licensee may not change or modify the licensed premises without the written
approval of the board. A licensee seeking to change or modify the licensed premises shall pay
the fees set out in 3 AAC 306.360 and submit a request for approval of the change on a form
prescribed by the board, along with
(1) a drawing showing the proposed change;
(2) evidence that the proposed change conforms to any local restrictions; and
(3) evidence that the licensee has obtained any applicable local building permit.
(Eff. ___/___ /____, Register ____)
Authority: AS 17.38.010 AS 17.38.070 AS 17.38.084
AS 17.38.087 AS 17.38.090 AS 17.38.100
AS 17.38.900
3 AAC 306.705. Inspection of licensed premises. (a) A marijuana establishment or an
applicant for a marijuana establishment license under this chapter shall, upon request, make the
licensed premises or the proposed licensed premises, including any place for storage, available
for inspection by an officer charged with the enforcement of this chapter. An officer charged
with enforcement of this chapter include a member of the board and the director or an employee
of the director. The board may also specifically request an inspection of licensed premises or
proposed licensed premises by a local fire protection agency or any other state agency with
health and safety responsibilities.
(b) Inspection under this section includes inspection of the premises, facilities,
qualifications of personnel, methods of operation, business and financial records, marijuana
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inventory tracking system, policies and purposes of any marijuana establishment and of any
applicant for a marijuana establishment license. (Eff. ___/___ /____, Register ____)
Authority: AS 17.38.010 AS 17.38.070 AS 17.38.084
AS 17.38.085 AS 17.38.087 AS 17.38.090
AS 17.38.100 AS 17.38.900
3 AAC 306.710. Restricted access areas. (a) A marijuana establishment shall restrict
access to any part of the licensed premises where marijuana or a marijuana product is grown,
processed, tested, stored, displayed, or sold.
(b) Except as provided in 3 AAC 306.320 for a marijuana retail store, each entrance to a
restricted access area must be marked by a sign that says “Restricted access area. Visitors must
be escorted.” A marijuana establishment shall limit the number of visitors to not more than five
visitors for each licensee, employee, or agent of the licensee who is actively engaged in
supervising those visitors.
(c) In a restricted access area, the licensee, any employee, and any agent shall wear a
current identification badge bearing the person’s photograph. A person under the age of 21 may
not enter any restricted access area. Any visitor to the restricted area must
(1) show identification as required in 3 AAC 306.330 to prove that person is not
under the age of 21;
(2) obtain a visitor identification badge before entering the restricted access area;
and
(3) be escorted at all times by the licensee, an employee, or an agent of the
licensee. (Eff. ___/___ /____, Register ____)
Authority: AS 17.38.010 AS 17.38.070 AS 17.38.084
Page 108 of 172
AS 17.38.087 AS 17.38.090 AS 17.38.100
AS 17.38.900
3 AAC 306.715. Marijuana handler permit. (a) A marijuana establishment and each
licensee, employee or agent of the marijuana establishment who sells, cultivates, manufactures,
tests, or transports marijuana or a marijuana product, or who checks the identification of a patron
or visitor, shall obtain a marijuana handler permit from the board before being licensed or
beginning employment at a marijuana establishment.
(b) To obtain a marijuana handler permit, a person shall complete a marijuana handler
permit education course approved by the board, pass a written test demonstrating an
understanding of the course subject, and obtain a certificate of course completion from the
course provider. An approved marijuana handler permit education course must cover at least the
following topics:
(1) AS 17.37, AS 17.38, and this chapter;
(2) the effects of marijuana consumption;
(3) how to identify a person impaired by consumption of marijuana;
(3) how to determine valid identification;
(4) how to intervene to prevent unlawful marijuana consumption; and
(5) the penalty for an unlawful act by a licensee, an employee or an agent of a
marijuana establishment.
(c) To obtain a marijuana handler permit, a person who has completed the marijuana
handler permit course required under (a) of this section shall present the course completion
certificate, along with a person of interest report obtained from the Department of Public Safety,
to the director. The director shall issue a marijuana handler permit card valid for three years
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from the date of issue. A person may renew a card issued under this section by passing a written
test demonstrating an understanding of the course subjects.
(d) A licensee, employee, or agent of a marijuana establishment shall keep the marijuana
handler permit card described in (c) of this section on the licensed premises during working
hours.
(e) The board will review an approved marijuana handler permit education course at
least once every three years, and may rescind approval of the course if the board finds that the
education course contents are insufficient or inaccurate. (Eff. ___/___ /____, Register ____)
Authority: AS 17.38.010 AS 17.38.070 AS 17.38.084
AS 17.38.087 AS 17.38.090 AS 17.38.100
AS 17.38.900
3 AAC 306.720. Security systems and lock standards. (a) Each licensee, employee,
or agent of a marijuana establishment shall display an identification badge issued by the licensed
employer at all times when on the marijuana establishment’s licensed premises.
(b) The licensed premises of a marijuana establishment must have
(1) exterior lighting to facilitate surveillance;
(2) a security alarm system on all exterior doors and windows; and
(3) continuous video monitoring as provided in 3 AAC 306.725.
(c) A marijuana establishment shall have policies and procedures that
(1) are designed to prevent diversion of marijuana or marijuana product;
(2) prevent loitering;
(3) describe the use of any additional security devices, such as motion detectors,
pressure switches, and duress, panic, or hold-up alarms to enhance security of its licensed
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premises; and
(4) describe the actions to be taken by a licensee, employee, or agent of the
marijuana establishment when any automatic or electronic notification system alerts any local
law enforcement agency of an unauthorized breach of security.
(d) A marijuana establishment must use commercial grade, non-residential door locks on
all exterior entry points to the licensed premises. Eff. ___/___ /____, Register ____)
Authority: AS 17.38.010 AS 17.38.070 AS 17.38.084
AS 17.38.087 AS 17.38.090 AS 17.38.100
AS 17.38.900
3 AAC 306.725. Video surveillance. (a) A marijuana establishment shall install and
maintain a video surveillance and camera recording system as provided in this section. The
video system must cover
(1) each restricted access area and each entrance to a restricted access area within
the licensed premises;
(2) each entrance to the exterior of the licensed premises;
(3) each point-of-sale (POS) area.
(b) At any marijuana establishment, any video camera must be placed in a way that
produces a clear view adequate to identify any individual inside the licensed premises, or within
20 feet of each entrance to the licensed premises. Both the interior and the exterior of each
entrance to the facility must be recorded by a video camera.
(c) Any area where marijuana is grown, cured, or manufactured, or marijuana waste is
destroyed, must have a camera placement in the room facing the primary entry door, and in
adequate fixed positions, at a height which will provide a clear, unobstructed view of the regular
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activity without a sight blockage from lighting hoods, fixtures, or other equipment, allowing for
the clear and certain identification of any person and activity in the area at all times.
(d) Surveillance recording equipment and video surveillance records must be housed in a
locked and secure area or in a lock box, cabinet, closet or other secure area that is accessible only
to a marijuana establishment licensee or authorized employee, and to law enforcement personnel
including an agent of the board. A marijuana establishment may use an offsite monitoring
service and offsite storage of video surveillance records as long as security requirements at the
offsite facility are at least as strict as onsite security requirements as described in this section.
(e) Each surveillance recording must be preserved for a minimum of 40 days, in a format
that can be easily accessed for viewing. All recorded images must clearly and accurately display
the time and date, and must be archived in a format that does not permit alteration of the
recorded image, so that the images can readily be authenticated. After 40 days, a marijuana
establishment may erase video recordings, unless the licensee knows or should know of any
pending criminal, civil, or administrative investigation for which the video recording may
contain relevant information. (Eff. ___/___ /____, Register ____)
Authority: AS 17.38.010 AS 17.38.070 AS 17.38.084
AS 17.38.085 AS 17.38.087 AS 17.38.090
AS 17.38.100 AS 17.38.900
3 AAC 306.730. Health and safety standards. (a) A marijuana establishment is
subject to inspection by the local fire department, building inspector, or code enforcement officer
to confirm that no health or safety concerns are present.
(b) A marijuana establishment shall take all reasonable measures and precautions to
ensure that
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(1) any person who has an illness, an open sore or infected wound, or other
potential source of infection may not come in contact with marijuana or a marijuana product
while the illness or source of infection persists;
(2) the licensed premises have
(A) adequate and readily accessible toilet facilities that are maintained in
good repair and sanitary condition; and
(B) convenient hand-washing facilities with running water at a suitable
temperature; the marijuana establishment shall require employees to wash or sanitize their hands,
and must provide effective hand-cleaning, sanitizing preparations, and drying devices;
(3) each person working in direct contact with marijuana or a marijuana product
shall conform to good hygienic practices while on duty, including
(A) maintaining adequate personal cleanliness; and
(B) washing hands thoroughly in an adequate hand-washing area before
starting work, after using toilet facilities, and at any other time when the person’s hands
may have become soiled or contaminated;
(4) litter, waste, and rubbish are properly removed; the waste disposal equipment
must be maintained and adequate to
(A) avoid contaminating any area where marijuana or any marijuana
product is stored, displayed, or sold; and
(B) prevent causing odors or attracting pests;
(5) floors, walls, and ceilings must be constructed to allow adequate cleaning,
and must be kept clean and in good repair;
(6) adequate lighting is installed in any area where marijuana or a marijuana
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product is stored, displayed, or sold, and where any equipment or utensil is cleaned;
(7) screening or other protection adequately protects against the entry of pests;
(8) any building, fixture, and other facility is maintained in sanitary condition;
(9) any toxic cleaning compound, sanitizing agent, and pesticide chemical must
be identified and stored in a safe manner to protect against contamination of marijuana or
marijuana product and in compliance with any applicable local, state, or federal law;
(10) adequate sanitation principles are used in any receiving, inspecting,
transporting, and storing of marijuana or marijuana product; and
(11) any marijuana or marijuana product must be held in a manner that prevents
the growth of bacteria, microbes, or other undesirable microorganisms.
(c) A marijuana establishment shall ensure that any marijuana or marijuana product that
has been stored beyond its usable life, or was stored improperly, is not salvaged and returned to
the marketplace; in this section, “stored improperly” means being exposed to extremes in
temperature, humidity, smoke, fumes, pressure, or radiation due to a natural disaster, fire,
accident, or equipment failure.
(d) If a marijuana establishment does not have reliable information about the age or
storage conditions of marijuana or a marijuana product in its possession, the marijuana
establishment may salvage the marijuana only if:
(1) a licensed marijuana testing facility determines from quality assurance tests
that the marijuana or marijuana product meets all applicable standards of moisture, potency, and
contaminants;
(2) inspection of the premises where a disaster or accident occurred shows that
the marijuana or marijuana product stored there was not adversely affected by the disaster or
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accident; and
(3) the marijuana establishment maintains a record of the salvaged marijuana or
marijuana product in its marijuana inventory tracking system, including the name, lot number
and final disposition. (Eff. ___/___ /____, Register ____)
Authority: AS 17.38.010 AS 17.38.070 AS 17.38.084
AS 17.38.087 AS 17.38.090 AS 17.38.100
AS 17.38.900
3 AAC 306.735. Waste disposal. (a) A marijuana establishment shall store, manage,
and dispose of any solid or liquid waste, including wastewater generated during marijuana
cultivation production, processing, testing, or retail sales, in compliance with applicable federal,
state, and local laws and regulations.
(b) Marijuana waste must be rendered unusable for any purpose for which it was grown
or produced before it leaves a marijuana establishment. Marijuana waste includes:
(1) marijuana plant waste, including roots, stalks, leaves, and stems that have not
been processed with solvent;
(2) solid marijuana sample plant waste in the possession of a marijuana testing
facility; and
(3) other waste as determined by the board.
(c) A marijuana establishment must
(1) give the board at least 3 days notice in the marijuana inventory tracking
system required under 3 AAC 306.760 before making the waste unusable and disposing of it; and
(2) keep a record of the final destination of marijuana waste made unusable.
(d) Marijuana plant waste must be made unusable by grinding the marijuana plant waste
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and mixing it with at least an equal amount of other compostable or non-compostable materials.
A marijuana establishment may use other methods to make marijuana waste unusable if the
board approves the method in advance. Material that may be mixed with the marijuana waste
includes
(1) compostable materials including food waste, yard waste, vegetable based
grease or oils, or other wastes approved by the board when the mixed material can be used as
compost feedstock or in another organic waste method such as an anaerobic digester with
approval of the applicable local health department; or
(2) non-compostable materials including paper waste, cardboard waste, plastic
waste, oil, or other wastes approved by the board when the mixed material may be delivered to a
permitted solid waste facility, incinerator, or other facility with approval of the applicable local
health department. (Eff. ___/___ /____, Register ____)
Authority: AS 17.38.010 AS 17.38.070 AS 17.38.084
AS 17.38.087 AS 17.38.090 AS 17.38.100
AS 17.38.900
3 AAC 306.740. Certified scales. A marijuana establishment shall have on its licensed
premises at least one scale certified in accordance with measurement standards established in AS
45.75.010- AS 45.75.400, the Alaska Weights and Measures Act. A marijuana establishment
shall
(1) maintain documentation of the certified scale; and
(2) upon request by an agent or employee of the board, provide a copy of
documentation of the certified scale to the board for review. (Eff. ___/___ /____, Register ____)
Authority: AS 17.38.010 AS 17.38.070 AS 17.38.084
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AS 17.38.087 AS 17.38.090 AS 17.38.100
AS 17.38.900
3 AAC 306.745. Transportation. (a) A licensed marijuana establishment shall
transport marijuana as follows:
(1) a marijuana cultivation facility may transport marijuana to a marijuana
cultivator’s broker, another marijuana cultivation facility, a marijuana product manufacturing
facility, a marijuana testing facility, or a marijuana retail store;
(2) a marijuana broker may transport marijuana to the broker’s own storage area,
a marijuana product manufacturing facility, a marijuana testing facility, or a marijuana retail
store;
(3) a marijuana product manufacturing facility may transport a marijuana product
to another marijuana product manufacturing facility, a marijuana testing facility, or a marijuana
retail store;
(4) a marijuana testing facility may transport marijuana or a marijuana product to
the facility from which it received the marijuana or another marijuana testing facility; and
(5) a marijuana retail store may transport marijuana or a marijuana product to
another marijuana retail store.
(b) A marijuana establishment from which a shipment of marijuana or marijuana product
originates is responsible for preparing, packaging, and securing the marijuana or marijuana
product during shipment, for recording the transfer in the marijuana inventory tracking system,
and for preparing the transport manifest. Any individual transporting marijuana in compliance
with this section shall have a marijuana handler permit required under 3 AAC 306.715.
(c) When any marijuana or marijuana product is transported, the marijuana establishment
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that originates the transport shall use the marijuana tracking system to record the type, amount
and weight of marijuana or marijuana product being transported, the name of the transporter, the
time of departure and expected delivery, and the make, model and license plate number of the
transporting vehicle. A complete printed transport manifest on a form prescribed by the board
must be kept with the marijuana or marijuana product at all times.
(d) During transport, any marijuana or marijuana product must be in a sealed package or
container in a locked, safe and secure storage compartment that is fastened to the inside
compartment of the vehicle transporting the marijuana or marijuana product. The sealed package
may not be opened during transport. Any vehicle transporting marijuana or marijuana product
must travel directly from the shipping marijuana establishment to the receiving marijuana
establishment, and must not make any unnecessary stops in between except to deliver or pick up
marijuana or marijuana product at any other licensed marijuana establishment.
(e) When a marijuana establishment receives marijuana or a marijuana product
transported in compliance with this section, the recipient of the shipment shall use the marijuana
inventory tracking system to report the type, amount, and weight of marijuana or marijuana
product received. The licensed recipient shall refuse to accept any shipment of marijuana or
marijuana product that is not accompanied by the transport manifest.
(f) A marijuana establishment must keep records of all marijuana or marijuana product
shipped from or received at that marijuana establishment for a minimum of three years. (Eff.
___/___ /____, Register ____)
Authority: AS 17.38.010 AS 17.38.070 AS 17.38.084
AS 17.38.087 AS 17.38.090 AS 17.38.100
AS 17.38.900
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3 AAC 306.750. Insurance. (a) A marijuana establishment shall at all times maintain
commercial general liability insurance coverage, and if necessary, commercial umbrella and
excess insurance, to protect any consumer from bodily injury and property damage arising from
activities of the marijuana establishment, including any negligent or intentional act or omission
of its licensee, employee, or agent. An insurance policy obtained to meet the requirement of this
section, including any general liability, umbrella, and excess insurance policy, must provide
aggregate coverage of not less than one million dollars.
(b) The insurance required in this section must be obtained from an insurance company
authorized to do business in the state, and in compliance with all applicable provisions of AS 21.
(c) A marijuana establishment shall furnish a certificate of insurance satisfactory to the
board with a new marijuana license application, a license renewal application, and at any time
upon request of the board. The board may deny, suspend or revoke the marijuana establishment
license of any marijuana establishment that fails to provide proof of the insurance coverage
required under this section. (Eff. ___/___ /____, Register ____)
Authority: AS 17.38.010 AS 17.38.070 AS 17.38.084
AS 17.38.087 AS 17.38.090 AS 17.38.100
AS 17.38.900
3 AAC 306.755. Business records. (a) A marijuana establishment shall maintain, in a
format that is readily understood by a reasonably prudent business person, the following
information:
(1) all books and records necessary to fully account for the business transactions
conducted under its license for the current year and three preceding calendar years; records for
the last six months must be maintained on the marijuana establishment’s licensed premises;
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older records may be archived on or off premises;
(2) a current employee list setting out the full name and marijuana handler permit
number of each licensee, employee, and agent who works at the marijuana establishment;
(3) the business contact information for vendors that maintain video surveillance
systems and security alarm systems for the licensed premises;
(4) records related to advertising and marketing;
(5) a current diagram of the licensed premises including each restricted access
area;
(6) a log recording the name, and date and time of entry of each visitor permitted
in a restricted access area;
(7) all records normally retained for tax purposes;
(8) accurate and comprehensive inventory tracking records that account for all
marijuana inventory activity from seed or immature plant stage until the retail marijuana or retail
marijuana product is sold to a consumer, to another marijuana establishment, or destroyed; and
(9) transportation records for marijuana and marijuana product as required under
3 AAC 306.745(e).
(b) A marijuana establishment shall provide any record required to be kept on the
licensed premises to an employee of the board upon request. Any record kept off premises must
be provided to the board’s employees within three business days after a request for the record.
(c) A marijuana establishment is required to exercise due diligence in preserving and
maintaining all required records. Loss of records and data, including electronically maintained
records, will not be considered an excuse for a violation of this rule. Failure to retain records
required under this section may be interpreted by the board as a license violation affecting public
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safety. (Eff. ___/___ /____, Register ____)
Authority: AS 17.38.010 AS 17.38.070 AS 17.38.084
AS 17.38.085 AS 17.38.087 AS 17.38.090
AS 17.38.100 AS 17.38.900
3 AAC 306.760. Marijuana inventory tracking system. (a) A marijuana
establishment shall use an inventory tracking system capable of sharing information with the
system implemented by the board to ensure all marijuana cultivated and sold in the state, and
each marijuana product processed and sold in the state, is identified and tracked from the time
the marijuana is propagated from seed or cutting, through transfer to another licensed marijuana
establishment, or use in manufacturing a product, to a completed sale of marijuana or marijuana
product, or disposal of the batch or lot of marijuana or marijuana product.
(b) All marijuana delivered to a marijuana establishment must be weighed on a scale
certified in compliance with 3 AAC 306.740. (Eff. ___/___ /____, Register ____)
(Eff. ___/___ /____, Register ____)
Authority: AS 17.38.010 AS 17.38.070 AS 17.38.084
AS 17.38.087 AS 17.38.090 AS 17.38.100
AS 17.38.900
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Sponsored by: Council Members Molloy and Knackstedt
CITY OF KENAI
ORDINANCE NO. *DRAFT*-2015
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, REPEALING
AND REENACTING KENAI MUNICIPAL CODE CHAPTER 7.15-PURCHASES AND
SALES, TO EXPAND PUBLIC SOLICITATION REQUIREMENTS, REDEFINE
PROFESSIONAL SERVICES, REORGANIZE THE CHAPTER, PROVIDE AN APPEALS
PROCESS, AND MAKE OTHER MATERIAL AND HOUSEKEEPING CHANGES AND
AMENDING CHAPTER 7.25-CITY BUDGET, TO INCLUDE SETTING FEE SCHEDULES.
WHEREAS, Kenai Municipal Code Chapter 7.15-Purchases and Sales, determines the
City’s process for procuring goods and services as well as sales of surplus items; and,
WHEREAS, the Chapter has not been significantly reviewed and revised in at least ten
years and is in need of review and revisions; and,
WHEREAS, formalizing the process for purchasing services and supplies for less than
$25,000 provides for standardized purchasing methodology; and,
WHEREAS, requiring a competitive process for soliciting professional services over
$25,000 provides a fair process open to all qualified proposers; and,
WHEREAS, eliminating former KMC 7.15.080–Telephone polls-Authority, procedure,
recordation, is appropriate as it is no longer a utilized process and is inconsistent with
other requirements of code; and,
WHEREAS, moving KMC 7.15.100–Setting fee schedules, to KMC Chapter 7.25–City
Budget, is appropriate as it is not a topic consistent with the intent and purpose of the
chapter dealing with purchases and is consistent with the budget process; and,
WHEREAS, codifying an appeals process for bids and proposals provides consistency
and fairness to the City and the public; and,
WHEREAS, providing a new definition for professional services that is more consistent
with other municipal and state definitions is in the City’s best interest; and
WHEREAS, making other housekeeping and organizational changes to the Chapter
will make it easier to use and understand.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI,
ALASKA, as follows:
Section 1. Form: That this is a code ordinance.
DR
A
F
T
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Section 2. Amendment of Chapter 7.15 of the Kenai Municipal Code: That Kenai
Municipal Code, Chapter 7.15–Purchases and Sales, is hereby amended as follows:
[7.15.010 “CONTRACTUAL SERVICES” DEFINED.
CONTRACTUAL SERVICES,” FOR THE PURPOSE OF THIS CHAPTER, SHALL
MEAN SERVICES PERFORMED FOR THE CITY BY PERSONS NOT IN THE
EMPLOYMENT OF THE CITY, AND MAY INCLUDE THE USE OF EQUIPMENT OR THE
FURNISHING OF COMMODITIES IN CONNECTION WITH SAID SERVICES UNDER
EXPRESS OR IMPLIED CONTRACT. CONTRACTUAL SERVICES SHALL INCLUDE:
TRAVEL, FREIGHT, EXPRESS, PARCEL POST, POSTAGE, TELEPHONE, TELEGRAPH,
UTILITIES, RENTS, PRINTING AND BINDING, REPAIRS, ALTERATIONS, AND
MAINTENANCE OF BUILDINGS, EQUIPMENT, STREETS, BRIDGES, AND OTHER
PHYSICAL FACILITIES OF THE CITY, AND OTHER SERVICES PERFORMED FOR THE
CITY BY PERSONS NOT IN THE EMPLOYMENT OF THE CITY.
7.15.020 MADE BY WHOM.
ALL PURCHASES OF SUPPLIES, MATERIALS, EQUIPMENT, AND
CONTRACTUAL SERVICES FOR THE OFFICES, DEPARTMENTS, AND AGENCIES OF
THE CITY GOVERNMENT SHALL BE MADE BY THE CITY ADMINISTRATOR OR BY
OTHER CITY PERSONNEL IN ACCORDANCE WITH PURCHASE AUTHORIZATIONS
ISSUED BY THE CITY ADMINISTRATOR.
7.15.030 WHEN PRIOR APPROVAL BY COUNCIL IS REQUIRED.
(A) EVERY CONTRACT FOR, OR PURCHASE OF, FIFTEEN THOUSAND DOLLARS
($15,000.00) OR MORE OF SUPPLIES, MATERIALS, EQUIPMENT, OR CONTRACTUAL
SERVICES SHALL REQUIRE THE PRIOR APPROVAL OF THE COUNCIL. THE ONLY
EXCEPTIONS WILL BE:
(1) UTILITIES BILLS (ELECTRICITY, GAS, FUEL, AND TELEPHONE);
(2) CITY’S ROUTINE INVESTMENT PURCHASING;
(3) MONTHLY PAYMENTS FOR PAYROLL DEDUCTIONS (I.E., INCOME TAX,
F.I.C.A., RETIREMENT, AND FRINGE BENEFITS), INCLUDING BOTH
EMPLOYER’S AND EMPLOYEE’S SHARE;
(4)AUTHORIZED DEBT;
(5) MONTHLY CONTRACTED JANITORIAL SERVICE.
(B) ALL SUCH EXCEPTIONS WILL BE PAID WHEN THEY FALL DUE AND
PAYMENTS WILL BE RATIFIED BY COUNCIL AT THE NEXT REGULAR COUNCIL
MEETING.
7.15.040 COMPETITIVE BIDDING.
(A) BEFORE ANY PURCHASE OF, OR CONTRACT FOR, SUPPLIES, MATERIALS,
EQUIPMENT, OR CONTRACTUAL SERVICES ARE MADE, THE CITY PURCHASING
AUTHORITY SHALL SUBMIT TO AT LEAST THREE (3) PERSONS, FIRMS, OR
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CORPORATIONS DEALING IN AND ABLE TO SUPPLY THE SAME, OR TO A SMALLER
NUMBER IF THERE ARE NOT THREE DEALING IN AND ABLE TO SUPPLY THE
SAME, A REQUEST FOR QUOTATION (OR INVITATION TO BID) AND
SPECIFICATIONS TO GIVE THEM OPPORTUNITY TO BID; AND/OR PUBLISH NOTICE
OF THE PROPOSED PURCHASE IN A NEWSPAPER OF GENERAL CIRCULATION
WITHIN THE CITY.
(B) THE PURCHASE OF, OR CONTRACT FOR, SUPPLIES, MATERIALS,
EQUIPMENT, OR CONTRACTUAL SERVICES SUBJECT TO SUBSECTION (A), SHALL
BE AWARDED TO THE MOST RESPONSIBLE BIDDER PURSUANT TO SUBSECTION
(F).
(C) WHEN SUCH PURCHASES ARE TO BE MADE FROM FEDERAL OR STATE
GRANT FUNDS, ANY AND ALL CONDITIONS, PROVISIONS, OR REQUIREMENTS
WHICH MAY BE NECESSARY TO COMPLY WITH THE REQUISITE FEDERAL OR
STATE LAWS, RULES, OR REGULATIONS WITH RESPECT TO SUCH GRANTS MAY
BE INSERTED IN THE BID AND CONTRACT DOCUMENTS, AND WILL BE COMPLIED
WITHIN THE AWARD OF THE BID FOR SUCH PURCHASES.
(D) ALL BIDS SHALL BE SEALED AND SHALL BE OPENED IN PUBLIC AT A
DESIGNATED TIME AND PLACE.
(E) THE PURCHASING AUTHORITY MAY REPEATEDLY REJECT ALL BIDS AND
AGAIN MAY SUBMIT TO THE SAME OR OTHER PERSONS, FIRMS, OR
CORPORATIONS THE REQUEST FOR QUOTATION (OR INVITATION TO BID) AND/OR
AGAIN PUBLISH NOTICE OF THE PROPOSED PURCHASE.
(F) THE CITY PURCHASING AUTHORITY SHALL PURCHASE FROM THE LOWEST
RESPONSIBLE BIDDER, BASING A DETERMINATION ON RESPONSIBILITY OF THE
BIDDER ON THE FOLLOWING FACTORS: ADHERENCE TO THE BID
SPECIFICATIONS, QUALITY, PROPOSED TERMS OF DELIVERY, ANY ADDITIONAL
COST TO THE CITY THAT WOULD BE INCURRED DUE TO LOCATION OF THE
BIDDER, PERFORMANCE RECORD, FINANCIAL CAPABILITY, AND COMPLIANCE
WITH CONDITIONS IMPOSED IN THE SOLICITATION FOR BIDS. IF AFTER
CONSIDERATION OF THE BIDS, BIDDER RESPONSIBILITY, THE PURCHASING
AUTHORITY DETERMINES THAT TWO (2) OR MORE BIDDERS ARE EQUALLY
COMPETITIVE, HE OR SHE MAY PURCHASE FROM ONE SUCH BIDDER OR MAY
DIVIDE THE PURCHASE AMONG THEM, BUT ALWAYS ACCEPTING THE BID OR
BIDS MOST ADVANTAGEOUS TO THE CITY.
7.15.045 LOCAL PREFERENCES.
(A) IN AWARDING COMPETITIVE BID PURCHASES OR CONSTRUCTION
CONTRACTS UNDER KMC 7.15.040, PREFERENCE MAY BE GIVEN TO AN
OTHERWISE QUALIFIED “LOCAL BIDDER” UNLESS SUCH PREFERENCE IS
PROHIBITED BY THE FUNDING SOURCE.
(B) FOR PURPOSE OF THIS SECTION, A “LOCAL BIDDER” IS A PERSON WHO:
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(1) HOLDS A CURRENT STATE BUSINESS LICENSE, AND IN ADDITION
FOR CONSTRUCTION CONTRACTS, HOLDS A CURRENT, APPROPRIATE
STATE CONTRACTOR’S REGISTRATION CERTIFICATE;
(2) SUBMITS A BID FOR A COMPETITIVE PURCHASE OR CONSTRUCTION
CONTRACT UNDER THE NAME AS APPEARING ON THE PERSON’S LICENSE
AND, WHERE APPLICABLE, A CERTIFICATE;
(3) HAS CONTINUOUSLY MAINTAINED A PHYSICAL PLACE OF BUSINESS
WITHIN THE KENAI PENINSULA BOROUGH STAFFED BY THE BIDDER OR AN
EMPLOYEE OF THE BIDDER FOR A PERIOD OF ONE HUNDRED EIGHTY (180)
DAYS IMMEDIATELY PRECEDING THE DATE OF THE BID OPENING. BIDDER
MUST PROVE COMPLIANCE WITH THIS REQUIREMENT TO THE CITY’S
SATISFACTION. MERE MAINTENANCE OF A MAIL BOX OR TELEPHONE
ANSWERING SERVICE, FOR EXAMPLE, IS NOT SUFFICIENT TO COMPLY
WITH THIS PROVISION; AND
(4) IF A JOINT VENTURE, IS COMPOSED ENTIRELY OF VENTURERS THAT
QUALIFY UNDER THIS SECTION.
(C) AN AWARD SHALL BE MADE TO THE LOWEST RESPONSIBLE BIDDER
PURSUANT TO KMC 7.15.040(F) OF THIS CHAPTER AS APPLICABLE, EXCEPT THAT
A BID MAY BE AWARDED TO A LOCAL BIDDER IF THE LOCAL BIDDER’S BID IS
NOT MORE THAN FIVE PERCENT (5%) HIGHER THAN THE LOWEST RESPONSIBLE
NON-LOCAL BIDDER’S BID; PROVIDED, HOWEVER, SUCH PREFERENCE SHALL
NEVER EXCEED TWENTY-FIVE THOUSAND DOLLARS ($25,000.00), AND FURTHER
PROVIDED THAT THE OTHER PROVISIONS OF KMC 7.15.040(F) OF THIS CHAPTER
AS APPLICABLE, HAVE BEEN MET AND THE CITY CHOOSES TO AWARD THE BID.
THIS PREFERENCE WILL NOT BE GRANTED WHERE THE CITY USES NON-
COMPETITIVE PURCHASING AS PROVIDED IN KMC 7.15.050 OF THIS CHAPTER.
7.15.050 PURCHASES, WHEN COMPETITIVE BIDDING NOT REQUIRED.
THE FOLLOWING MAY BE PURCHASED WITHOUT GIVING AN OPPORTUNITY FOR
COMPETITIVE BIDDING:
(A) SUPPLIES, MATERIALS, EQUIPMENT, OR CONTRACTUAL SERVICES WHOSE
COST DOES NOT EXCEED TWENTY-FIVE THOUSAND DOLLARS ($25,000.00) IN A
SINGLE TRANSACTION;
(B) SUPPLIES, MATERIALS, EQUIPMENT, OR CONTRACTUAL SERVICES WHICH
CAN BE FURNISHED ONLY BY A SINGLE DEALER OR WHICH HAS A UNIFORM
PRICE WHEREVER BOUGHT;
(C) SUPPLIES, MATERIALS, EQUIPMENT, OR CONTRACTUAL SERVICES
PURCHASED FROM ANOTHER UNIT OF GOVERNMENT AT A PRICE DEEMED
BELOW THAT OBTAINABLE FROM PRIVATE DEALERS, INCLUDING WAR SURPLUS;
(D) CONTRACTUAL SERVICES PURCHASED FROM A PUBLIC UTILITY
CORPORATION AT A PRICE OR RATE DETERMINED BY STATE OR OTHER
GOVERNMENT AUTHORITY.
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(E) PROFESSIONAL SERVICES. PROFESSIONAL SERVICES MEANS THOSE
ADVISORY, CONSULTING, ARCHITECTURAL, MANAGEMENT, ENGINEERING,
RESEARCH OR DEVELOPMENT SERVICES THAT INVOLVE THE EXERCISE OF
DISCRETION AND INDEPENDENT JUDGMENT TOGETHER WITH AN ADVANCED OR
SPECIALIZED KNOWLEDGE, EXPERTISE OR TRAINING GAINED BY FORMAL
STUDIES OR EXPERIENCE. EXAMPLES OF PROFESSIONAL SERVICES INCLUDE,
BUT ARE NOT LIMITED TO, ACCOUNTANTS, ARCHITECTS, APPRAISERS,
ENGINEERS, FACILITIES MANAGEMENT, LAND SURVEYORS, AUDITORS, MEDICAL
SERVICES, FINANCIAL CONSULTANTS, ATTORNEYS, PLANNING CONSULTANTS,
ECONOMISTS, COMPUTER PROGRAMMERS AND SYSTEM ANALYSTS, INSURANCE
CONSULTANTS AND RISK ANALYSTS, INSURANCE PROVIDERS AND OTHER
SPECIALIZED CONSULTANTS.
(F) SUPPLIES, MATERIALS, EQUIPMENT OR CONTRACTUAL SERVICES
PURCHASABLE UNDER THE CONTRACT OF ANOTHER GOVERNMENTAL AGENCY IN
WHICH CONTRACT THE CITY IS AUTHORIZED TO PARTICIPATE.
(G) (1) THE CITY MAY AWARD A CONTRACT FOR SUPPLIES, SERVICES,
PROFESSIONAL SERVICES OR CONSTRUCTION WITHOUT COMPETITION, FORMAL
ADVERTISING OR OTHER FORMAL PROCEDURE WHERE THE CITY MANAGER
DETERMINES IN WRITING THAT AN EMERGENCY THREATENING THE PUBLIC
HEALTH, SAFETY OR WELFARE REQUIRES THAT THE CONTRACT BE AWARDED
WITHOUT DELAY. THE CITY MANAGER SHALL MAKE A REPORT ON SUCH
CONTRACT TO THE COUNCIL NO LATER THAN THE NEXT REGULAR MEETING
FOLLOWING AWARD OF THE CONTRACT.
(2) FOR PURPOSES OF THIS SUBSECTION, AN “EMERGENCY” IS DEFINED
AS THE OCCURRENCE OR IMMINENT THREAT OF WIDESPREAD OR SEVERE
DAMAGE, INJURY, LOSS OF LIFE OR PROPERTY, OR SHORTAGE OF FOOD,
WATER, OR FUEL RESULTING FROM:
(A) AN INCIDENT SUCH AS STORM, HIGH WATER, WIND-DRIVEN
WATER, TIDAL WAVE, TSUNAMI, EARTHQUAKE, VOLCANIC ERUPTION,
LANDSLIDE, MUDSLIDE, AVALANCHE, SNOWSTORM, PROLONGED
EXTREME COLD, DROUGHT, FIRE, FLOOD, EPIDEMIC, EXPLOSION
OR RIOT;
(B) THE RELEASE OF OIL OR A HAZARDOUS SUBSTANCE IF THE
RELEASE REQUIRES PROMPT ACTION TO AVERT ENVIRONMENTAL
DANGER OR MITIGATE ENVIRONMENTAL DAMAGE;
(C) EQUIPMENT FAILURE IF THE FAILURE IS NOT A PREDICTABLY
FREQUENT OR RECURRING EVENT OR PREVENTABLE BY ADEQUATE
EQUIPMENT MAINTENANCE OR OPERATION;
(D) ENEMY OR TERRORIST ATTACK OR A CREDIBLE THREAT OF
IMMINENT ENEMY OR TERRORIST ATTACK IN OR AGAINST THE
STATE THAT THE ADJUTANT GENERAL OF THE DEPARTMENT OF
MILITARY AND VETERANS AFFAIRS OR A DESIGNEE OF THE
ADJUTANT GENERAL, IN CONSULTATION WITH THE COMMISSIONER
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OF PUBLIC SAFETY OR A DESIGNEE OF THE COMMISSIONER OF
PUBLIC SAFETY, CERTIFIES TO THE GOVERNOR HAS A HIGH
PROBABILITY OF OCCURRING IN THE NEAR FUTURE; THE
CERTIFICATION MUST MEET THE STANDARDS OF AS 26.20.040(C); IN
THIS SUBSECTION, “ATTACK” HAS THE MEANING GIVEN UNDER AS
26.20.200; OR
(E) AN OUTBREAK OF DISEASE OR A CREDIBLE THREAT OF AN
IMMINENT OUTBREAK OF DISEASE THAT THE COMMISSIONER OF
HEALTH AND SOCIAL SERVICES OR A DESIGNEE OF THE
COMMISSIONER OF HEALTH AND SOCIAL SERVICES CERTIFIES TO
THE GOVERNOR HAS A HIGH PROBABILITY OF OCCURRING IN THE
NEAR FUTURE; THE CERTIFICATION MUST BE BASED ON SPECIFIC
INFORMATION RECEIVED FROM LOCAL, STATE, FEDERAL, OR
INTERNATIONAL AGENCY, OR ANOTHER SOURCE THAT THE
COMMISSIONER OR THE DESIGNEE DETERMINES IS RELIABLE.
7.15.055 COMPETITIVE SEALED PROPOSALS FOR CONSTRUCTION.
(A) WHEN THE USE OF COMPETITIVE SEALED BIDDING FOR CONSTRUCTION
PROJECTS IS EITHER NOT PRACTICABLE OR NOT ADVANTAGEOUS TO THE CITY, A
CONTRACT MAY BE ENTERED INTO BY USE OF THE COMPETITIVE SEALED
PROPOSALS METHOD.
(B) PROPOSALS SHALL BE SOLICITED THROUGH A REQUEST FOR PROPOSALS.
(C) WHEN THE CITY COUNCIL DETERMINES THAT IT IS ADVANTAGEOUS TO
THE CITY, THE CITY MAY ISSUE A REQUEST FOR PROPOSALS REQUESTING THE
SUBMISSION OF OFFERS TO PROVIDE CONSTRUCTION IN ACCORDANCE WITH A
DESIGN PROVIDED BY THE OFFEROR.
(D) ADEQUATE PUBLIC NOTICE OF THE REQUEST FOR PROPOSALS SHALL BE
GIVEN IN THE SAME MANNER AS PROVIDED IN KMC 7.15.040(A), PROVIDED THE
MINIMUM TIME SHALL BE THIRTY (30) CALENDAR DAYS.
(E) A REGISTER OF PROPOSALS SHALL BE PREPARED CONTAINING THE NAME
OF EACH OFFEROR, THE NUMBER OF MODIFICATIONS RECEIVED, IF ANY, AND A
DESCRIPTION SUFFICIENT TO IDENTIFY THE ITEM OFFERED.
(F) THE REQUEST FOR PROPOSALS SHALL STATE THE RELATIVE IMPORTANCE
OF PRICE AND OTHER EVALUATION FACTORS.
(G) AS PROVIDED IN THE REQUEST FOR PROPOSALS, DISCUSSIONS MAY BE
CONDUCTED WITH RESPONSIBLE OFFERORS WHO SUBMIT PROPOSALS
DETERMINED TO BE REASONABLY SUSCEPTIBLE OF BEING SELECTED FOR
AWARD FOR THE PURPOSE OF CLARIFICATION TO ASSURE FULL
UNDERSTANDING OF, AND CONFORMANCE TO, THE SOLICITATION
REQUIREMENTS. OFFERORS SHALL BE ACCORDED FAIR AND EQUAL TREATMENT
WITH RESPECT TO ANY OPPORTUNITY FOR DISCUSSION AND REVISION OF
PROPOSALS AND SUCH REVISIONS MAY BE PERMITTED AFTER SUBMISSIONS
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AND PRIOR TO AWARD FOR THE PURPOSE OF OBTAINING BEST AND FINAL
OFFERS.
(H) AWARD SHALL BE MADE TO THE RESPONSIBLE OFFEROR WHOSE
PROPOSAL IS DETERMINED IN WRITING TO BE THE MOST ADVANTAGEOUS TO
THE CITY, TAKING INTO CONSIDERATION PRICE AND THE EVALUATION FACTORS
SET FORTH IN THE REQUEST FOR PROPOSALS. NO OTHER FACTORS OR CRITERIA
SHALL BE USED IN THE EVALUATION. THE CONTRACT FILE SHALL CONTAIN THE
BASIS ON WHICH THE AWARD IS MADE.
(I) PROPOSALS SHALL BE RECEIVED AT THE TIME AND PLACE DESIGNATED IN
THE REQUEST FOR PROPOSALS, AND SHALL BE OPENED SO AS TO AVOID
DISCLOSING THEIR CONTENTS TO COMPETING PROPONENTS DURING THE
PROCESS OF NEGOTIATION. PROPOSALS SHALL BE OPEN TO PUBLIC INSPECTION
ONLY AFTER THE CONTRACT AWARD. HOWEVER, THE CITY SHALL ISSUE A
NOTICE OF INTENT TO AWARD TO ALL RESPONDING PROPOSERS AT LEAST
SEVEN (7) DAYS PRIOR TO COUNCIL APPROVAL. UPON REQUEST BY A COMPETING
PROPONENT, THE RECOMMENDED AWARDEE’S PROPOSAL SHALL BE OPENED
FOR REVIEW.
(Ord. 2022-2003)
7.15.060 SALES, SURPLUS, COMPETITIVE BIDDING.
(A) EXCEPT AS PROVIDED IN SUBSECTION (D) NO SURPLUS OR OBSOLETE
SUPPLIES, MATERIALS, OR EQUIPMENT MAY BE SOLD (EXCEPT BY TRADING IN
ON OTHER GOODS OR SERVICES) UNTIL THE COUNCIL SHALL HAVE DECLARED
THEM OBSOLETE OR SURPLUS. BEFORE THE CITY ADMINISTRATOR SELLS ANY
SURPLUS OR OBSOLETE SUPPLIES, MATERIALS, OR EQUIPMENT, EXCEPT AS
OTHERWISE PROVIDED IN THE NEXT SECTION, HE OR SHE SHALL ADVERTISE
THEM FOR SALE IN A NEWSPAPER OF GENERAL CIRCULATION IN THE CITY OR
GIVE NOTICE IN SUCH OTHER MANNER AS HE OR SHE DEEMS NECESSARY
ADEQUATELY TO REACH PROSPECTIVE BUYERS TO GIVE THEM AN OPPORTUNITY
TO MAKE BIDS. ALL BIDS SHALL BE SEALED AND SHALL BE OPENED IN PUBLIC
AT A DESIGNATED TIME AND PLACE, EXCEPT WHEN THE SALE IS BY AUCTION OR
BY AN INTERNET SALE PROCESS.
(B) THE COUNCIL MAY BY RESOLUTION, INCLUDING SUCH TERMS AND
CONDITIONS AS IT DEEMS APPROPRIATE, DECLARE AND AUTHORIZE SALE OF
SURPLUS OR OBSOLETE SUPPLIES, MATERIALS OR EQUIPMENT BY A BROKER IF
THE NATURE OF ITEMS IS SUCH THAT SALE BY BROKER IS IN THE BEST
INTEREST OF THE CITY. THE CITY MANAGER SHALL SUBMIT A WRITTEN REPORT
TO THE COUNCIL OF ANY ITEM SOLD BY A BROKER INCLUDING THE
COMMISSION, BUYER, AND THE TERMS AND CONDITIONS OF THE SALE. SUCH
WRITTEN REPORT SHALL BE INCLUDED IN A COUNCIL PACKET WITHIN THIRTY
(30) DAYS AFTER THE SALE DATE.
(C) THE CITY ADMINISTRATOR MAY REPEATEDLY REJECT ALL BIDS AND
ADVERTISE OR GIVE NOTICE AGAIN. HE OR SHE SHALL SELL SUCH SUPPLIES,
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MATERIALS, OR EQUIPMENT TO THE HIGHEST RESPONSIBLE BIDDER FOR CASH.
IN CASE OF A TIE, HE OR SHE MAY SELL TO EITHER OF THE BIDDERS TYING, OR
MAY DIVIDE THE SALE AMONG TWO (2) OR MORE TYING, ALWAYS SELLING TO
THE HIGHEST RESPONSIBLE BIDDER OR BIDDERS FOR CASH.
(D) COLLECTION MATERIALS REMOVED BY THE LIBRARIAN PURSUANT TO THE
LIBRARY’S COLLECTION DEVELOPMENT POLICY MAY BE SOLD, TRADED OR
OTHERWISE DISPOSED OF WITHOUT FURTHER DECLARATION BY COUNCIL AND
IN ANY MANNER DEEMED APPROPRIATE BY THE LIBRARIAN AS LONG AS THE
SALE, TRADE OR DISPOSAL IS IN THE BEST INTEREST OF THE LIBRARY. ALL
ETHICAL AND CONFLICTS OF INTEREST PROVISIONS DESCRIBED BY CITY
ORDINANCE, RESOLUTION, POLICY, OR REGULATION MUST BE FULLY COMPLIED
WITH IN SUCH SALE, TRADE, OR DISPOSAL. WITHIN THIRTY (30) DAYS OF THE
END OF EACH FISCAL YEAR, THE LIBRARIAN SHALL PROVIDE A FULL
ACCOUNTING TO THE CITY MANAGER AND COUNCIL OF ALL MATERIALS SOLD,
TRADED OR OTHERWISE DISPOSED OF THE PRIOR FISCAL YEAR.
7.15.070 SALES, WHEN COMPETITIVE BIDDING NOT REQUIRED.
THE CITY ADMINISTRATOR MAY SELL THE FOLLOWING ONLY WITH NOTICE TO
AND APPROVAL OF CITY COUNCIL WITHOUT GIVING AN OPPORTUNITY FOR
COMPETITIVE BIDDING:
(A) SURPLUS OR OBSOLETE SUPPLIES, MATERIALS, EQUIPMENT OR OTHER
PROPERTY, EXCLUDING REAL PROPERTY, THE VALUE OF WHICH DOES NOT
EXCEED ONE THOUSAND DOLLARS ($1,000.00) IN A SINGLE TRANSACTION; Or
(B) SUPPLIES, MATERIALS, EQUIPMENT OR OTHER PROPERTY, EXCLUDING
REAL PROPERTY, WHEN SOLD AT A PRICE AT LEAST AS GREAT AS THAT PAID BY
THE CITY FOR THE SAME, PROVIDED THAT THE FOLLOWING CONDITIONS SHALL
BE MET:
(1) ANY SUCH PROPERTY VALUED IN EXCESS OF ONE THOUSAND
DOLLARS ($1,000.00) SHALL BE APPRAISED BY A QUALIFIED APPRAISER
WITHIN SIX (6) MONTHS PRECEDING THE SALE, AND THE SALE PRICE
SHALL BE NOT LESS THAN THE APPRAISED VALUE.
(2) THE CITY COUNCIL SHALL APPROVE OF THE SALE OF ANY SUCH
PROPERTY VALUED IN EXCESS OF ONE THOUSAND DOLLARS ($1,000.00).
7.15.080 TELEPHONE POLLS—AUTHORITY, PROCEDURE, RECORDATION.
(A) AUTHORITY. THE CITY MANAGER MAY OBTAIN AUTHORIZATION FROM
COUNCIL BY TELEPHONE POLL TO:
(1) PURCHASE BUDGETED SUPPLIES, MATERIALS, OR SERVICES IN
EXCESS OF TWO THOUSAND FIVE HUNDRED DOLLARS ($2,500.00) IF THE
NEED IS CRITICAL IN HIS OR HER ESTIMATION; AND
(2) EXECUTE GRANT APPLICATIONS, ACCEPT BIDS AND TRANSFER
FUNDS FOR THE BUDGETED ITEMS TO ACCOMPLISH THE FOREGOING.
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(B) PROCEDURE. ALL QUESTIONS FOR TELEPHONE POLLS SHALL BE IN
WRITING AND APPROVED BY THE CITY MANAGER OR DESIGNEE FOR SUBMITTAL
TO THE CITY CLERK. THESE POLLS WILL BE APPROVED BY THE FINANCE
DIRECTOR TO DETERMINE WHETHER THE PROPER APPROPRIATION IS MADE BY
ORDINANCE. THE CITY CLERK MAY DESIGNATE WHICH CITY EMPLOYEES SHALL
CONDUCT THE POLL. NO MORE THAN ONE (1) QUESTION SHALL BE CONDUCTED
PER TELEPHONE POLL EXCEPT IN CASES OF EXTREME EMERGENCY WHERE
MORE THAN ONE (1) QUESTION MAY BE PRESENTED AND EXCEPT THAT THE
QUESTION CONCERNING TRANSFERENCE OF FUNDS MAY BE PRESENTED ALONG
WITH THE MAIN QUESTION. WHENEVER POSSIBLE, THE QUESTIONS SHALL
ELICIT A “YES” OR “NO” RESPONSE. IN ALL CASES, THE DESIGNATED EMPLOYEES
SHALL MAKE A REASONABLE ATTEMPT TO CONTACT ALL COUNCIL MEMBERS. AT
LEAST FOUR (4) MEMBERS OF THE COUNCIL MUST PARTICIPATE IN THE VOTE
FOR THE POLL TO BE VALID. A TWO-THIRDS (2/3) MAJORITY OF ALL COUNCIL
MEMBERS POLLED SHALL BE REQUIRED FOR TELEPHONE POLL AUTHORIZATION.
IF THE TELEPHONE POLL FAILS, THE MATTER SHALL BE CONSIDERED AS AN
AGENDA ITEM AT THE NEXT REGULAR COUNCIL MEETING.
(C) RECORDATION. AT THE NEXT REGULAR COUNCIL MEETING, THE CITY
CLERK, DURING HIS OR HER REPORT, SHALL READ INTO THE RECORD THE
RESULTS OF THE POLL INDICATING THE QUESTION POSED AND THE VOTE OF
EACH COUNCIL MEMBER REACHED.
7.15.090 PURCHASES AND SALES—CERTAIN CITY OFFICERS.
PURCHASES FROM, AND SALES TO, THE CITY ADMINISTRATOR AND
COUNCILPERSONS SHALL ALSO BE GOVERNED BY THE CITY CHARTER, SECTION
5-8 EXCEPT AS FOLLOWS:
(A) THE CITY ADMINISTRATOR, COUNCIL PERSONS, AND CITY EMPLOYEES MAY
SELL OR BARTER ANYTHING TO THE CITY, OR MAKE A CONTRACT WITH THE CITY,
OR PURCHASE ANYTHING FROM THE CITY WITHOUT THE NECESSITY OF
COMPETITIVE SEALED BIDS PROVIDED SUCH SALES, CONTRACT, OR PURCHASES
INVOLVE A CONSIDERATION OF NOT MORE THAN FIVE HUNDRED DOLLARS
($500.00) IN VALUE.
(B) ANY SALE, CONTRACT OR PURCHASE, OF NOT MORE THAN FIVE HUNDRED
DOLLARS ($500.00) AUTHORIZED UNDER SUBSECTION (A) ABOVE, MUST BE
MADE AT SUCH PRICES OR RATES PREVAILING IN THE COMMUNITY AND
WITHOUT FAVORITISM OR DISCRIMINATION.
(Ord. 1178)
7.15.100 SETTING FEE SCHEDULES.
THE COUNCIL MAY ADOPT AND AMEND A FEE SCHEDULE SPECIFYING THE
RATES, CHARGES, OR FEES IMPOSED BY THE CITY. UNLESS OTHERWISE
PROVIDED IN THE KENAI CODE OF ORDINANCES, ANY RATES, CHARGES, OR
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FEES IMPOSED BY THE CITY OF KENAI SHALL BE SET BY THE CITY MANAGER
AND SHALL BE EFFECTIVE UPON APPROVAL BY RESOLUTION OF THE CITY
COUNCIL.
7.15.110 TAX COMPLIANCE.
(A) NO CONTRACT THAT REQUIRES COMPETITIVE BIDDING PURSUANT TO A
CITY ORDINANCE MAY BE AWARDED TO AN INDIVIDUAL OR BUSINESS THAT IS IN
VIOLATION OF CITY TAX ORDINANCES UNLESS THE VIOLATION IS CURED WITHIN
TEN (10) BUSINESS DAYS OF NOTICE.
(B) IF AN INDIVIDUAL OR BUSINESS BECOMES DELINQUENT ON ANY CITY TAX
OBLIGATION DURING THE TERM OF A CONTRACT, THE CITY MAY TERMINATE THE
CONTRACT IF NOT CURED WITHIN TEN (10) BUSINESS DAYS OF NOTICE, AND THE
CITY MAY OFFSET AMOUNTS OWED BY THE CITY TO THE INDIVIDUAL OR
BUSINESS UNDER A CONTRACT FOR THE AMOUNT OF OUTSTANDING TAX
OBLIGATIONS INCLUDING APPLICABLE PENALTIES AND INTEREST.
(C) TAX COMPLIANCE VERIFICATION IS NOT REQUIRED FOR PURCHASES
WHEN THE CITY CONDUCTS BUSINESS WITH OR THROUGH OTHER FEDERAL,
STATE OR LOCAL GOVERNMENTAL AGENCIES.]
7.15.010 Purchase Authority
All purchases of supplies, materials, equipment, professional and contractual
services for the offices, departments, and agencies of the City government shall be
made by the City Manager or by other City personnel in accordance with purchase
authorizations issued by the City Manager or approved by City Council. (KC 7-34)
7.15.020 Purchases Requiring Council Approval
(a) Every contract for, or purchase of, fifteen thousand dollars ($15,000) or more of
supplies, materials, equipment, professional or contractual services shall require the
prior approval of the Council. The only exceptions will be:
(1) Utility bills (i.e., electricity, gas, fuel, and telephone);
(2) City’s routine investment purchasing;
(3) Monthly payments for payroll deductions (i.e., income tax, F.I.C.A.,
retirement, and fringe benefits), including both employer’s and
employee’s share;
(4) Authorized debt; or
(5) Monthly contracted janitorial service.
(b) All such exceptions will be paid when they fall due and payments will be ratified
by Council at the next regular Council meeting.
7.15.030 Informal Purchasing for Minor Purchases.
(a) Purchases for supplies, materials, equipment and contractual services in the
amount of $25,000 or less shall be purchased as follows:
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(1) Purchases up to $5,000 may be made without formal purchasing
procedures as long as the price is known to be fair and reasonable within
the available market.
(2) Purchases greater than $5,000 but less than $15,000 require the
solicitation of three or more written quotes using an applicable
purchasing form. If three quotes cannot reasonably be obtained, a
written justification must be documented on an applicable purchasing
form.
(3) Purchases of $15000 or greater, but less than $25,000 require the same
competitive bid procedures as required for Large Purchases, unless
waived in writing by the City Manager with justification provided on an
applicable purchasing form. Justification for waiving Large Purchase
procedures may include the need for expedited procurement and
conservation of City resources. At a minimum, procedures for purchases
greater than $5,000 but less than $15,000 must be utilized.
(b) Purchases for supplies, materials, equipment and contractual services in the
amount of $25,000 or less shall be made from the lowest responsive source.
7.15.040 Competitive Bidding for Large Purchases.
(a) Before any purchase of, or contract for, supplies, materials, equipment, or
contractual services in excess of $25,000 is made, an invitation to bid shall be
published, a minimum of two times at least two weeks prior to the date bids are due
in a newspaper of general circulation within the City. Invitations to bid may also be
advertised in other appropriate forums.
(b) The purchase of, or contract for, supplies, materials, equipment, or contractual
services subject to subsection (a), shall be awarded to the most responsible bidder
pursuant to subsection (f).
(c) When such purchases are to be made from Federal or State grant funds, any
and all conditions, provisions, or requirements which may be necessary to comply
with the required Federal or State laws, rules, or regulations with respect to such
grants may be inserted in the bid and contract documents, and will be complied
within the award of the bid for such purchases.
(d) All bids shall be sealed and shall be opened in public at a designated time and
place.
(e) The City may repeatedly reject all bids and again may submit to the same or
other persons, firms, or corporations the request for quotations (or invitation to bid)
and/or again publish notice of the proposed purchase.
(f) The City shall purchase from the lowest responsible bidder, basing a
determination on responsibility of the bidder on the following factors: adherence to the
bid specifications, quality, proposed terms of delivery, any additional cost to the City
that would be incurred due to location of the bidder, performance record, financial
capability, and compliance with conditions imposed in the solicitation for bids. If after
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consideration of the bids, bidder responsibility, the City determines that two (2) or
more bidders are equally competitive, the City may purchase from one such bidder or
may divide the purchase among them, but always accepting the bid or bids most
advantageous to the City
7.15.050 Competitive Sealed Proposals for Construction.
(a) When the use of competitive sealed bidding for construction projects is either
not practicable or not advantageous to the City, a contract may be entered into by use
of the competitive sealed proposals method.
(b) Proposals shall be solicited through a request for proposals.
(c) When the City Council determines that it is advantageous to the City, the City
may issue a request for proposals requesting the submission of offers to provide
construction in accordance with a design provided by the offeror.
(d) Adequate public notice of the request for proposals shall be given in the same
manner as provided in KMC 7.15. 040.
(e) A register of proposals shall be prepared containing the name of each offeror,
the number of modifications received, if any, and a description sufficient to identify
the item offered.
(f) The request for proposals shall state the relative importance of price and other
evaluation factors.
(g) As provided in the request for proposals, discussions may be conducted with
responsible offerors who submit proposals determined to be reasonably susceptible of
being selected for award for the purpose of clarification to assure full understanding
of, and conformance to, the solicitation requirements. Offerors shall be accorded fair
and equal treatment with respect to any opportunity for discussion and revision of
proposals and such revisions may be permitted after submissions and prior to award
for the purpose of obtaining best and final offers.
(h) Award shall be made to the responsible offeror whose proposal is determined in
writing to be the most advantageous to the City, taking into consideration price and
the evaluation factors set forth in the request for proposals. No other factors or criteria
shall be used in the evaluation. The contract file shall contain the basis on which the
award is made.
(i) Proposals shall be received at the time and place designated in the request for
proposals, and shall be opened so as to avoid disclosing their contents to competing
proponents during the process of negotiation. Proposals shall be open to public
inspection only after the contract award. However, the City shall issue a notice of
intent to award to all responding proposers at least seven (7) days prior to Council
approval. Upon request by a competing proponent, the recommended awardee’s
proposal shall be opened for review.
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7.15.060 Procurement of Professional Services.
(a) Professional services for a total contract amount, including all reasonably
foreseeable change orders and modifications, less than $10,000 may be procured in
any reasonable manner.
(b) Professional services for a total contract amount, including all reasonably
foreseeable change orders and modifications, of between $10,000 and $15,000 require
the solicitation of three or more quotes with written documentation on an applicable
purchasing form. If three quotes cannot reasonably be obtained, a written justification
must be documented on an applicable purchasing form.
(c) Professional services procured in an amount in excess of $15,000 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 times at least two weeks
prior to the date proposals are due in a newspaper of general circulation within the
City and may be advertised in other appropriate forums. A request for proposals may
be modified or interpreted only in written addenda.
(d) The City may negotiate with one or more qualified and responsible proponents
whose proposals are determined to be reasonably responsive to the request for
proposals. Negotiations shall be used to clarify and assure full understanding of the
requirements of the request for proposals.. Proponents may be permitted to revise
their proposals after submission and prior to award to obtain best and final offers.
Proponents deemed eligible for negotiations shall be treated equally regarding any
opportunity to discuss and revise proposals. Specific fee schedules shall be kept
confidential until after the notice of intent to award is distributed.
(e) Awards shall be made by written notice to the qualified and responsible
proponent whose final proposal is determined to be most advantageous to the City. No
criteria other than those set forth in the request for proposals may be used in proposal
evaluation. If the City Manager determines that it is in the best interest of the City to
do so, the City may reject any and all proposals.
(f) Legal services may be procured by direct negotiation with an attorney or law
firm qualified to undertake the type of legal assistance required subject to Council
approval for services of $15,000 or greater. All negotiations or contracts for the
services of legal counsel shall be pursued by the City Attorney, or in the case of a
conflict of interest, the City Council.
7.15.070. Innovative Procurements and Other Exceptions.
(a) A contract may be awarded for supplies, services, professional services, or
construction using an innovative procurement process, with or without competitive
sealed bidding or competitive sealed proposals. A contract may be awarded under this
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section only when the City Manager or designee determines in writing to the City
Council that it is advantageous to the City to use an innovative competitive
procurement process in the procurement of new or unique requirements of the City,
new technologies, or to achieve the best value. This process is appropriate when it may
be in the best interest of the City to consider an award to other than the lowest priced
offer or other than the highest technically rated offer.
(1) To utilize an innovative procurement procedure the requesting
department shall submit:
(A) a detailed procurement plan to the City Manager for review and
approval before public notice is issued as required under KMC
7.15.040. The plan shall, at a minimum, address the method of
solicitation, scope, method of award, protest procedures, and
proposed contract provisions, and
(B) an explanation of how use of this procedure will achieve the best
value, or why it is advantageous to the City. To the maximum
extent allowed by law, costs and benefits associated with the
location of the bidder, may be considered in determining the best
value for the City.
(2) When using the process authorized in this section, all of the following
apply:
(A) The City Manager must first approve the use of the proposed
innovative procurement plan.
(B) All evaluation factors and significant sub-factors that will affect
the contract award and their relative importance shall be clearly
stated in the solicitation.
(C) The solicitation shall state whether all evaluation factors other
than cost or price, when combined, are significantly more
important than, approximately equal to, or significantly less
important than cost or price.
(D) In developing evaluation factors, generally, where the requirement
is clearly definable and the risk of unsuccessful contract
performance is minimal, cost or price may play a dominant role in
source selection. The less definitive the requirement, the more
development work required, or the greater the performance risk,
the more technical or past performance considerations may play a
dominant role in source selection.
(b) The following may be purchased without giving an opportunity for competitive
bidding:
(1) Supplies, materials, equipment, or contractual services which can be
furnished only by a single dealer or which has a uniform price wherever
bought;
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(2) Supplies, materials, equipment, or contractual services purchased from
another unit of government at a price deemed below that obtainable from
private dealers, including war surplus;
(3) Contractual services purchased from a public utility corporation at a
price or rate determined by State or government authority.
(4) Supplies, materials, equipment or contractual services purchasable
under the contract of another governmental agency in which contract the
City is authorized to participate.
(5) The City may award a contract for supplies, contractual services, or
professional services without competition, formal advertising or other
formal procedure where the City Manager determines in writing that an
emergency threatening the public health, safety or welfare requires that
the contract be awarded without delay. The City Manager shall make a
report on such contract to the Council no later than the next regular
meeting following award of the contract.
(A) For purposes of this subsection, an “emergency” is defined as the
occurrence or imminent threat of widespread or severe damage,
injury, loss of life or property, or shortage of food, water, or fuel
resulting from:
(i) An incident such as storm, high water, wind-driven water,
tidal wave, tsunami, earthquake, volcanic eruption,
landslide, mudslide, avalanche, snowstorm, prolonged
extreme cold, drought, fire, flood, epidemic, explosion or
riot;
(ii) The release of oil or a hazardous substance if the release
requires prompt action to avert environmental danger or
mitigate environmental damage;
(iii) Equipment failure if the failure is not a predictably frequent
or recurring event or preventable by adequate equipment
maintenance or operation;
(iv) Enemy or terrorist attack or a credible threat of imminent
enemy or terrorist attack in or against the State that the
Adjutant General of the Department of Military and
Veterans Affairs or a designee of the Adjutant General, in
consultation with the Commissioner of Public Safety or a
designee of the Commissioner of Public Safety, certifies to
the Governor has a high probability of occurring in the near
future; the certification must meet the standards of AS
26.20.040(c); in this subsection, “attack” has the meaning
given under AS 26.20.200; or
(v) An outbreak of disease or a credible threat of an imminent
outbreak of disease that the Commissioner of Health and
Social Services or a designee of the Commissioner of Health
and Social Services certifies to the Governor has a high
probability of occurring in the near future; the certification
must be based on specific information received from local,
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state, federal, or international agency, or another source
that the Commissioner or the designee determines is
reliable.
7.15.080 Local Preferences.
(a) In awarding competitive bid purchases or construction contracts under KMC
7.15.040, or purchases of $15,000 or greater, but less than $25,000 under KMC
7.15.030(a)(3), preference may be given to an otherwise qualified “local bidder” unless
such preference is prohibited by the funding source.
(b) An award shall be made to the lowest responsible bidder pursuant to KMC
7.15.040(f) of this chapter as applicable, except that a bid may be awarded to a local
bidder if the local bidder’s bid is not more than five percent (5%) higher than the
lowest responsible non-local bidder’s bid; provided, however, such preference shall
never exceed twenty-five thousand dollars ($25,000), and further provided that the
other provisions of this chapter as applicable, have been met and the City chooses to
award the bid. This preference will not be granted where the City uses non-competitive
purchasing as provided in this chapter.
7.15.090 Sales, Surplus, Competitive Bidding.
(a) Except as provided in subsection (d) no surplus or obsolete supplies, materials,
or equipment may be sold (except by trading in on other goods or services) until the
Council shall have declared them obsolete or surplus. Before the City Manager sells
any surplus or obsolete supplies, materials, or equipment, except as otherwise
provided in the next section, he or she shall advertise them for sale in a newspaper of
general circulation in the City or give notice in such manner as he or she deems
necessarily adequately to reach prospective buyers to give them an opportunity to
make bids. All bids shall be sealed and shall be opened in public at a designated time
and place, except when the sale is by auction or by an internet sale process.
(b) The Council may by resolution, include such terms and conditions as it deems
appropriate, declare and authorize sale of surplus or obsolete supplies, materials or
equipment by a broker if the nature of items is such that sale by broker is in the best
interest of the City. The City Manager shall submit a written report to the Council of
any item sold by a broker including the commission, buyer, and the terms and
conditions of the sale. Such written report shall be included in a council packet within
thirty (30) days after the sale date.
(c) The City Manager may repeatedly reject all bids and advertise or give notice
again. He or she shall sell such supplies, materials, or equipment to the highest
responsible bidder for cash. In case of a tie, he or she may sell to either of the bidders
tying, or may divide the sale among two (2) or more tying, always selling to the highest
responsible bidder or bidders for cash.
(d) Collection materials removed by the librarian pursuant to the library’s
collection development policy may be sold, traded or otherwise disposed of without
further declaration by Council and in any manner deemed appropriate by the librarian
as long as the sale, trade or disposal is in the best interest of the library. All ethical
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and conflicts of interest provisions described by City ordinance, resolution, policy, or
regulation must be fully complied with in such sale, trade, or disposal. Within thirty
(30) days of the end of each fiscal year, the librarian shall provide a full accounting to
the City Manager and Council of all materials sold, traded or otherwise disposed of the
prior fiscal year.
7.15.100 Purchases and Sales—Certain City Officers.
Purchases from, and sales to, the City Manager and Councilpersons shall also
be governed by the City Charter, Section 5-8 except as follows:
(a) The City Manager, Council persons, and City employees may sell or barter
anything to the City, or make a contract with the City, or purchase anything from the
City without the necessity of competitive sealed bids provided such sales, contract, or
purchases involve a consideration of not more than five hundred dollars ($500) in
value.
(b) Any sale, contract or purchase, of not more than five hundred dollars ($500)
authorized under subsection (a) above, must be made at such prices or rates
prevailing in the community and without favoritism or discrimination.
7.15.110 Tax Compliance.
(a) No contract that requires competitive bidding pursuant to a City ordinance may
be awarded to an individual or business that is in violation of City tax ordinances
unless the violation is cured within ten (10) business days of notice.
(b) If an individual or business becomes delinquent on any City tax obligation
during the term of a contract, the City may terminate the contract if not cured within
ten (10) business days of notice, and the City may offset amounts owed by the City to
the individual or business under a contract for the amount of outstanding tax
obligations including applicable penalties and interest.
(c) Tax compliance verification is not required for purchases when the City
conducts business with or through other Federal, State or local governmental
agencies.
7.15.120 Appeal Procedures.
(a) Any party submitting a bid or proposal for a contract with the City and who
believes that they are adversely affected by the City’s relevant ordinances, regulations,
procurement process, or by any acts of the City in connection with the award of a City
contract, may file a protest appeal with the City Clerk. All protest appeals must be to
the City within five (5) calendar days of the issuance of the City’s notice of its intent to
award the contract. The appeal must be hand delivered, delivered by mail, or by
facsimile and must comply with all requirements of this section. If the fifth day is a
City-recognized holiday or a weekend, the deadline for appeal shall be the next work
day. It is up to the protester to choose a method of delivery to assure timely receipt by
the City.
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(b) Rejection of Appeal. The Clerk shall reject an untimely or incomplete appeals.
Such rejection shall be final and may be appealed to the Superior Court pursuant to
the Court Rules of Appellate Procedure.
(c) The protest appeal must be in writing and shall include the following
information:
(1) the name, address, e-mail, and telephone (and facsimile if available)
numbers of the protester;
(2) the signature of the protester or the protester's representative;
(3) identification of the contracting agency and the solicitation or contract at
issue;
(4) a statement of the legal and factual grounds of the protest, including
copies of relevant documents; and,
(5) the form of relief requested.
(d) Stay of award. If a timely and complete protest appeal is filed, the award of the
contract shall be stayed until all administrative remedies have been exhausted, unless
the City Manager determines in writing that award of the contract pending resolution
of the appeal is in the best interests of the City.
(e) Notice and response. Notice of the stay and protest appeal shall be delivered to
any party who may be adversely affected by the City Manager's decision by facsimile,
first class mail or in person within three (3) business days of receipt of a properly filed
appeal.
(f) City Manager Decision. The City Manager shall issue a written decision to the
appellant within ten (10) business days of the date the appeal is filed. If multiple
appeals have been filed, they may be consolidated for purposes of the decision. Copies
of the appeal and decision shall be provided to any interested party requesting one.
The decision may include any lawful action, including without limitation an
amendment of all or any part of the recommended award. For good cause shown, the
City Manager may extend the date for the decision for such additional period as may
be necessary.
(g) If the City Manager sustains a protest in whole or in part, the City Manager
shall implement an appropriate remedy. In determining an appropriate remedy, the
City Manager shall consider the circumstances surrounding the solicitation or
procurement including the seriousness of the procurement deficiencies, the degree of
prejudice to other interested parties or to the integrity of the procurement system, the
good faith of the parties, the extent the procurement has been accomplished, costs to
the agency and other impacts on the agency of a proposed remedy, and the urgency of
the procurement to the welfare of the City.
(h) Notwithstanding subsections (a) and (b) immediately above, if the City Manager
sustains a bid protest appeal in whole or part, the protester's damages shall not
exceed the reasonable bid or proposal preparation costs.
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(i) Appeal to superior court. Appeals may be taken from the written decision of the
City Manager within thirty (30) days of the date of the decision pursuant to Part VI of
the Alaska Rules of Appellate Procedure.
7.15.130 Definitions.
The following definitions apply for this Chapter:
(a) “Contractual Services,” means services other then professional services
performed for the City by persons not in the employment of the City, and may include
the use of equipment or the furnishing of commodities in connection with said services
under express or implied contract. Contractual services shall include: travel, freight,
express, parcel post, postage, telephone, telegraph, utilities, rents, printing and
binding, repairs, alterations, and maintenance of buildings, equipment, streets,
bridges, and other physical facilities of the City, and other services performed for the
City by persons not in the employment of the City. (KC 7-33)
(b) A “Local Bidder” is a person who:
(1) Holds a current state business license, and in addition for construction
contracts, holds a current, appropriate state contractor’s registration
certificate;
(2) Submits a bid for a competitive purchase or construction contract under
the name as appearing on the person’s license and, where applicable, a
certificate;
(3) Has continuously maintained a physical place of business within the
Kenai Peninsula Borough, staffed by the bidder or an employee of the
bidder for a period of one hundred eighty (180) days immediately
preceding the date of the bid opening. Bidder must prove compliance
with this requirement to the City’s satisfaction. Mere maintenance of a
mail box or telephone answering service, for example, is not sufficient to
comply with this provision; and
(4) If a joint venture, is composed entirely of venturers that qualify under
this section.
(c) “Professional Services,” means all advisory, consulting, technical, research or
other services, such as architectural, engineering, land surveying, legal and financial,
which involve the exercise of discretion and independent judgment together with an
advanced or specialized knowledge, expertise or training gained by formal studies or
experience.
Section 3. Amendment of Chapter 7.25 of the Kenai Municipal Code: That Kenai
Municipal Code, Chapter 7.25–Purchases and Sales, is hereby amended by enacting a
new code section as follows:
7.25.120 Setting Fee Schedules.
The Council may adopt and amend a fee schedule specifying the rates, charges,
or fees imposed by the city. Unless otherwise provided in the Kenai Code of
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Ordinances, any rates, charges, or fees imposed by the City of Kenai shall be set by
the city manager and shall be effective upon approval by resolution of the Council.
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 30 days after adoption.
ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this * day of *, 2015.
______________________________________
PAT PORTER, MAYOR
ATTEST:
___________________________________
Sandra Modigh, City Clerk
Introduced: *, 2015
Enacted: *, 2015
Effective: *, 2015
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CITY OF KENAI
PLANNING & ZONING COMMISSION
CITY COUNCIL CHAMBERS
JULY 8, 2015 - 7:00 P.M.
CHAIR JEFF TWAIT, PRESIDING
MINUTES
1. CALL TO ORDER
Commissioner Twait called the meeting to order at 7:00 p.m.
a. Pledge of Allegiance
Twait led those assembled in the Pledge of Allegiance.
b. Roll Call
Patrick “Jack” Focose was sworn in.
Commissioners present: G. Pettey, K. Peterson, J. Glendening, D. Fikes
R. Springer, J. Twait, J. Focose
Staff/Council Liaison present: City Planner M. Kelley, Deputy Clerk J. Heinz, H. Knackstedt
A quorum was present.
c. *Excused Absences – None.
d. Agenda Approval
MOTION:
Commissioner Springer MOVED to approve the agenda; Commissioner Glendening
SECONDED the motion. There were no objections; SO ORDERED.
e. Consent Agenda
MOTION:
Commissioner Springer MOVED to approve the consent agenda and Commissioner Peterson
SECONDED the motion. There were no objections; SO ORDERED.
*All items listed with an asterisk (*) are considered to be routine and non-controversial by
the Commission and will be approved by one motion. There will be no separate discussion
of these items unless a Commission 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.
2. *APPROVAL OF MINUTES – June 24, 2015
Approved by the consent agenda.
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3. SCHEDULED PUBLIC COMMENT: (10 Minutes) – None.
4. PERSONS PRESENT NOT SCHEDULED: (3 Minutes) – None.
5. CONSIDERATION OF PLATS:
a. PZ15-03 – Preliminary Original Beluga Subdivision 2015 Replat & Right-of-way
Vacation, submitted by Kenai New Life Assembly of God, 209 Princess Street, Kenai,
AK 99611
City Planner Kelley reviewed his staff report recommending approval of the plat with the
condition that at such time the neighboring lot is obtained, a new Plat be submitted to create a
cul-de-sac per code. He also asked for an additional condition be added to note that an
exception to code has been granted to delay the requirement of construction of a cul-de-sac.
MOTION:
Commissioner Peterson MOVED to approve Resolution No. PZ15-03 and Commissioner
Glendening SECONDED the motion.
Chairman Twait opened the public hearing; with no one wishing to speak, the public hearing
was closed.
MOTION TO AMEND:
Commissioner Glendening MOVED to amend the resolution by adding Condition H to read, “An
exception to Kenai Municipal Code 14.10.070(d)(3) has been granted to not require the
construction of a cul-de-sac or other vehicle turn around. At such time as Beluga Drive North is
constructed by Kenai New Life Assembly of God or its affiliates, subsidiaries, or future property
owners, a new Plat shall be submitted to the City of Kenai to dedicate this cul-de-sac or other
vehicle turn around, subject to approval of the City of Kenai.” Commissioner Peterson
SECONDED the motion.
VOTE ON THE AMENDMENT:
YEA: Pettey, Peterson, Fikes, Glendening, Springer, Twait, Focose
NAY:
MOTION PASSED UNANIMOUSLY.
VOTE ON THE MAIN MOTION:
YEA: Pettey, Peterson, Fikes, Glendening, Springer, Twait, Focose
NAY:
MOTION PASSED UNANIMOUSLY.
6. PUBLIC HEARINGS:
a. PZ15-19 – Application for a Variance Permit granting an approximately 7.8 foot side yard
variance where 10 feet is required to allow a 2.2 foot side yard setback for the
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construction of an addition to the residence for the property located at 111 S. Gill St., Lot
45, Block 1, Redoubt Terrace Subdivision.
City Planner Kelley reviewed his staff report explaining that the area had been a deck, which
was allowable, but the applicant added walls and windows which created an addition to the
home requiring a building permit and variance. He recommended approval of the variance
permit with the following conditions:
• Applicant must provide an executed and recorded copy of an Easement Agreement which
states that the owner of the neighboring lot will not build, in order to maintain a ten foot
easement between buildings per building code.
• Applicant must obtain a building permit prior to completion of the room.
MOTION:
Commissioner Glendening MOVED to approve Resolution No. PZ15-19 and Commissioner
Peterson SECONDED the motion.
Chairman Twait opened the public hearing.
The applicant addressed the Commission noting she had been told in the past that she didn’t
need a building permit to replace her deck, that she wanted a roof and windows added to the
deck to provide protection from the rain and snow, and that some differences had shown up
from her old as-built to the new survey
With no one else wishing to speak, the public hearing was closed.
VOTE:
YEA: Pettey, Peterson, Fikes, Glendening, Focose
NAY: Twait, Springer
MOTION PASSED UNANIMOUSLY.
Chairman Twait noted the 15 day appeal period would begin after the Easement Agreement
was Recorded.
b. PZ-15-21 – A resolution of the Planning & Zoning Commission of the City of Kenai, Alaska
recommending the City Council Amend Kenai Municipal Code 1.90.030 – Qualifications,
to allow up to one of the seven members of the Planning & Zoning Commission to be
non-residents if they own a business located within the City and making other house
keeping changes.
MOTION:
Commissioner Glendening MOVED to approve Resolution No. PZ15-21 and Commissioner
Focose SECONDED the motion.
Chairman Twait opened the public hearing.
Kristine Schmidt spoke against the resolution recommending removal of the statement that
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there is traditionally low interest among qualified residents to serve on the Commission,
believed the process of the Mayor appointing commissioners to be politicized, and didn’t think
that the new language specifying that there isn’t a designated seat for a non-resident meant
anything.
Mayor Porter pointed out that the Mayor doesn’t appoint Commissioner, but instead nominates
someone after vetting the applicants and that the Council appoints. She also pointed out that
the Council is elected and votes on the appointment how they want to vote.
With no one else wishing to speak, the public hearing was closed.
MOTION:
Commissioner Glendening MOVED to amend the seventh paragraph to read, “Now, therefore
be it recommended to the council of the city of Kenai, Alaska, that the City Council adopt
Ordinance No. 2829-2015, as attached hereto, to allow the Planning and Zoning Commission to
have up to one member that is not a resident of the city if they have a controlling ownership
interest in a business physically located in the city. This provision specifically does not create a
designated seat for a non-resident.” Commissioner Focose SECONDED the motion.
VOTE ON THE AMENDMENT:
YEA: Pettey, Peterson, Fikes, Glendening, Springer, Twait, Focose
NAY:
MOTION PASSED UNANIMOUSLY.
VOTE ON THE MAIN MOTION:
YEA: Pettey, Peterson, Fikes, Glendening, Springer, Twait, Focose
NAY:
MOTION PASSED UNANIMOUSLY.
7. UNFINISHED BUSINESS: None.
8. NEW BUSINESS: None.
9. PENDING ITEMS: None.
10. REPORTS:
a. City Council – Knackstedt provided an overview of The Economic Impact of the Seafood
Industry in Southcentral Alaska report presented by Arni Thomson, Executive Director of
the Alaska Salmon Alliance at the July 1, 2015 council meeting and suggested that it be
referenced in the next comprehensive plan revision. He also reviewed the action
agenda of the July 1, 2015 council meeting which was provided in the packet.
b. Borough Planning – no report.
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c. Administration – Kelley explained that development of regulations regarding commercial
legalization of marijuana would be coming forth. He also asked for topics of interest for
a planning commissioner training he has been asked to help develop by the American
Planning Association – Alaska Chapter.
11. PERSONS PRESENT NOT SCHEDULED: None
12. INFORMATIONAL ITEMS: None.
13. NEXT MEETING ATTENDANCE NOTIFICATION: July 22, 2015
Commissioner Glendening noted that he would not be able to attend this meeting.
COMMISSION COMMENTS & QUESTIONS:
Commissioner Focose offered thanks for his appointment to the Commission and said he
looked forward to improving the city as it grows over the next several years.
Commissioners Glendening, Peterson, and Twait welcomed Focose to the Commission and
thanked him for his willingness to serve.
14. ADJOURNMENT:
There being no further business before the Commission, the meeting was adjourned at
8:20 p.m.
Minutes prepared and submitted by:
_____________________________
Sandra Modigh, CMC
City Clerk
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