The URL can be used to link to this page

Home My WebLink About2016-01-20 Council Packet KENAI CITY COUNCIL – REGULAR MEETING JANUARY 20, 2016 *** NEW MEETING TIME – 6:00 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) 1. Bill Lierman & Brandy Niclai, Alaska Permanent Capital Management. – Presentation of the 2015 Permanent Fund Investment Performance and Recommended Asset Allocation and Benchmarks for Calendar Year 2016. ................................................................................................................. Pg. 5 C. UNSCHEDULED PUBLIC COMMENTS (Public comment limited to three (3) minutes per speaker; thirty (30) minutes aggregated) D. PUBLIC HEARINGS 1. Ordinance No. 2870-2016 – Amending Kenai Municipal Code Section 14.20.230 – Home Occupations, to Prohibit Commercial Marijuana Establishments as Allowed Uses, Amending Kenai Municipal Code Section 14.20.320 – Definitions, to Add Marijuana Related Definitions, Enacting Kenai Municipal Code Section 14.20.330 – Standards for Commercial Marijuana Establishments, Creating Standards for Commercial Marijuana Establishments and Amending Kenai Municipal Code Section 14.22.010 – Land Use Table, to Add Commercial Marijuana Establishment Uses and Regulations and Make Other Housekeeping Changes. .............................................................. Pg. 39 2. Ordinance No. 2871- 2016 – Enacting Kenai Municipal Code Section 1.10.080 - Local Regulatory Authority, Designating the City Council as the Local Regulatory Authority for Local Regulation of Marijuana Establishments Under Alaska Statute Chapter 17.38. ............................................................... Pg. 81 Kenai City Council Meeting Page 2 of 3 January 20, 2016 3. Ordinance No. 2872-2016 – Appropriating Funds in the General and Municipal Roadway Improvements Capital Project Funds in the amount of $50,000 for Construction of a New South Beach Access. ......................................... Pg. 87 4. Ordinance No. 2873-2016 – Accepting and Appropriating a Federal Grant from the Institute of Museum and Library Services (IMLS) Passed Through the Alaska State Library for Employee Travel and Training. ....................... Pg. 91 5. Ordinance No. 2874-2016 – Appropriating Insurance Proceed Received for Damage to City Street Lights. ................................................................ Pg. 95 6. Resolution No. 2016-02 – Pertaining to the Authorized Investments of, the Investment Allocations of, and Establishing Appropriate Benchmarks to Measure Performance of the City’s Permanent Funds. .......................... Pg. 97 E. MINUTES 1. *Regular Meeting of January 6, 2016 ................................................... Pg. 101 F. UNFINISHED BUSINESS 1. Action/Approval – Donation of $500 to Help Sponsor the Regional Hockey Tournament Hosted by Kenai Central High School. [Clerk’s Note: At its meeting on January 6, 2016, Council postponed this item to the following meeting. A motion to approve is on the floor] ............ Pg. 115 G. NEW BUSINESS 1. *Action/Approval – Bills to be Ratified. ............................................. Pg. 117 2. *Action/Approval – Purchase Orders Exceeding $15,000. ................ Pg. 119 3. *Ordinance No. 2875-2016 – Reappropriating State Grant Funds in the Park Improvement Capital Project Fund and Appropriating State Grant Funds in the Municipal Roadway Improvements Capital Project Fund. ................... Pg. 123 4. *Ordinance No. 2876-2016 – Reappropriating State Grant Funds in the Park Improvement Capital Project Fund and Appropriating State Grant Funds in the Multi-Purpose Facility Improvements Capital Project Fund. ................ Pg. 127 5. *Ordinance No. 2877-2016 – Appropriating Funds in the General and City Shop Improvements Capital Project Fund for the Construction of Crew Facilities and a Building Maintenance Area in the New Warm Storage Facility. ........................................................................................................... Pg. 131 6. *Ordinance No. 2878-2016 – Increasing Estimated Revenues and Appropriations in the Airport and Airport Improvement Capital Project Funds for the 2016 Security Camera Project. ................................................ Pg. 135 Kenai City Council Meeting Page 3 of 3 January 20, 2016 7. Action/Approval – Mayoral Nomination and Council Confirmation of Appointing Diane E. Barth to the Parks & Recreation Commission. .... Pg. 139 8. Discussion Item – Amending Title 2 of the Kenai Municipal Code – Alcoholic Beverages, to Include Provisions Regarding Marijuana. ..................... Pg. 147 H. COMMISSION/COMMITTEE REPORTS 1. Council on Aging 2. Airport Commission 3. Harbor Commission 4. Parks and Recreation Commission a. Kenai Outdoor Opportunity Location Committee 5. Planning and Zoning Commission ...................................................... Pg. 151 6. Beautification Committee 7. Mini-Grant Steering Committee I. REPORT OF THE MAYOR J. ADMINISTRATION REPORTS 1. City Manager ...................................................................................... Pg. 155 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 Scheduled. M. PENDING ITEMS – None N. ADJOURNMENT **************************************************************************************************** INFORMATION ITEMS 1. Purchase Orders between $2,500 and $15,000 for Council Review. 2. Chamber of Commerce Letter 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. [PAGE LEFT BLANK INTENTIONALLY] Page 4 of 192 TRUSTED ADVISORS ▪MORE EXPERTS ▪BETTER ACCESS INVESTMENT REVIEW for period ending December 31, 2015 City of Kenai Permanent Funds Pa g e 5 of 19 2 Account Summary as of December 31, 2015 City of Kenai Permanent Funds TRUSTED ADVISORS ▪MORE EXPERTS ▪BETTER ACCESS1 Account Inception September 2008 Total Deposits $19,874,733 Cumulative Withdrawals $7,184,745 Current Market Value December 31, 2015 $26,001,547 Annualized Account Return September 30, 2008 –December 31, 2015; Gross of Fees +8.51% Current Allocation 55% Equity / 45% Bonds Pa g e 6 of 19 2 2015 Market Review TRUSTED ADVISORS ▪MORE EXPERTS ▪BETTER ACCESS2 Pa g e 7 of 19 2 Asset Class Performance Calendar Year 2015 City of Kenai Permanent Funds TRUSTED ADVISORS ▪MORE EXPERTS ▪BETTER ACCESS3 MARKET REVIEW -24.66 -15.50 -2.18 -1.97 -0.45 -0.14 -0.02 0.03 1.07 1.34 1.38 2.54 -30% -20% -10% 0% 10% Commodities DJ-UBS Commodity Emerging Markets FTSE Emerging Mid Cap S&P 400 Small Cap S&P 600 Int'l Equity FTSE Dev ex NA Kenai PF TIPS Barclays 0-5 Year U.S. TIPS Cash Citi 90 Day Tbill Fixed Income Barclays Int Gov/Credit Int'l Bonds Barclays Global Agg Ex- USD Hedged Large Cap S&P 500 Real Estate S&P U.S. REIT T o t a l R e t u r n Account performance is gross of fees. Asset class performance is represented by the stated index return. Pa g e 8 of 19 2 Investing Requires Long Term Perspectives Short term volatility should not impact decisions for long term investment goals. Successful investment strategies are designed around TREAT and built on reasonable long term financial and capital market expectations vs. current market conditions. Volatility over the past few years has been lower than historical averages and APCM’s projections. Volatility has increased, but remains in line with historical norms and APCM’s secular views. History shows that certain conditions –such as recessions, aggressive rate hikes, extreme valuations, and oil spikes –have all been associated with bear markets. Today, it is hard to see any of these issues present. Strategic asset allocation is the primary driver of long term returns and is confirmed annually along with updated expectations of downside risk. TRUSTED ADVISORS ▪MORE EXPERTS ▪BETTER ACCESS4 MARKET REVIEW Chart: Vanguard Impact of Drastically Reallocating During a Crisis… Pa g e 9 of 19 2 U.S. Treasury Yield Curve Yields were up across the curve in 2015. TRUSTED ADVISORS ▪MORE EXPERTS ▪BETTER ACCESS5 MARKET REVIEW Data: Bloomberg 0% 1% 2% 3% 4% 0 5 10 15 20 25 30 Y i e l d Bond Maturity (Years) December 31, 2015 December 31, 2014 Pa g e 10 of 19 2 Fed Policy Expectations After the first rate hike in 10 years markets expect future tightening to be gradual. TRUSTED ADVISORS ▪MORE EXPERTS ▪BETTER ACCESS6 MARKET REVIEW Source: J.P.Morgan Asset Management. Data through December 31, 2015. Pa g e 11 of 19 2 Outlook and Positioning Modest overweight to equities funded by international bonds and commodities. TRUSTED ADVISORS ▪MORE EXPERTS ▪BETTER ACCESS7 MARKET REVIEW Economic Growth Global GDP has been slow by historical standards but should continue to expand at a tepid although uneven pace amid low inflation. In the developed world, growth has been led by the U.S. while Japan and Europe slowly improve. China’s opaque economy is slowing as it transitions to a new growth model. The slowdown has hurt other emerging markets & commodities. In the U.S., manufacturing has weakened but the more important service sector is fine. Job growth is decent with unemployment at 5.0%. Headline inflation is very low throughout the world. In the U.S. it’s well below the Fed’s 2% target, but the “core” is +2.0% year over year. Dramatic declines in commodities (and a collapse in oil) is bad for producers (Russia, Canada, and Alaska) but good for consumers (Japan, Europe, and U.S.). Monetary Policy Central Bank policies are diverging as the Fed begins the process of increasing rates (albeit slowly). In December 2015 the Federal Reserve raised short term interest rates for the first time in 10 years. Additional increases are expected in 2016, but at a slower pace than what occurred during prior rate hiking cycles. The ECB and BoJ are likely to be dovish for several more years and have reiterated their “whatever it takes” mantra given sluggish growth & disinflation. Dollar strength (driven by interest rate differentials) has raised concerns about dollar denominated EM debt and capital flight. The dollar is somewhat overvalued on a PPP basis. Fundamental Valuations Valuations (i.e. P/E ratios) have improved, but remain elevated and thus still pose challenges going forward. Domestic earnings have flattened due to dollar strength and energy sector woes. However, low interest rates and inflation help justify valuations. Stocks are “cheaper” overseas. European and Japanese stocks are far from their all-time highs and earnings have improved. China’s stock market volatility, high debt and slowing economy remain a risk. Interest rates in the U.S. should continue to rise, but gradually at the front end of the curve. Bonds are insurance in diversified portfolios, but they’re expensive. Pa g e 12 of 19 2 Portfolio Review as of December 31, 2015 TRUSTED ADVISORS ▪MORE EXPERTS ▪BETTER ACCESS8 Pa g e 13 of 19 2 $10 $15 $20 $25 $30 2008 2009 2010 2011 2012 2013 2014 2015 M i l l i o n s Market Value as of December 31, 2015: $26,001,547 Historical Market Value as of December 31, 2015 City of Kenai Permanent Funds TRUSTED ADVISORS ▪MORE EXPERTS ▪BETTER ACCESS9 PORTFOLIO REVIEW Chart shows month-end portfolio market value from September 2008 to December 2015. June 2009 $289,136 June 2010 $891,268 June 2013 $1,218,791 May 2012 $1,097,622June 2011 $999,976 May 2014 $1,312,645 May 2015 $1,348,806 April 2011 $2,526,702 Nov 2015 $66,143 Pa g e 14 of 19 2 Asset Allocation as of December 31, 2015 City of Kenai Permanent Funds TRUSTED ADVISORS ▪MORE EXPERTS ▪BETTER ACCESS10 PORTFOLIO REVIEW Asset Class % Assets Strategic Benchmark Range Market Value Fixed Income 43.6%45%$11,335,208 U.S. Fixed Income 36.8%40 35-65%$9,562,823 Cash 6.8%5 0-10 $1,772,385 Equities 56.4%55%$14,666,338 Large Cap 19.8%20 15-25%$5,142,621 Mid Cap 9.9%10 5-15 $2,577,420 Small Cap 5.0%5 0-10 $1,304,804 International 11.7%10 5-15 $3,044,455 Emerging Markets 4.8%5 0-10 $1,255,900 Real Estate 5.2%5 0-10 $1,341,138 Total $26,001,547 36.8% 6.8% 19.8% 9.9% 5.0% 11.7% 4.8% 5.2% U.S. Fixed Income Cash Large Cap Mid Cap Small Cap International Emerging Markets Real Estate Pa g e 15 of 19 2 Account Performance as of December 31, 2015 City of Kenai Permanent Funds TRUSTED ADVISORS ▪MORE EXPERTS ▪BETTER ACCESS11 PORTFOLIO REVIEW 2.42 -0.14 6.31 6.08 8.51 2.47 -0.05 6.19 6.20 8.59 -4% 0% 4% 8% 12% Q4 2015 1 Year 3 Year 5 Year Since Inception T o t a l R e t u r n Kenai PF Strategic Benchmark Performance is gross of fees and annualized for periods greater than one year. Inception performance begins on September 30, 2008. Strategic benchmark is a blended return of the account’s target allocation. Pa g e 16 of 19 2 Performance Summary Calendar Year 2015 City of Kenai Permanent Funds 2015 portfolio return of -0.14%vs. a blended benchmark return of -0.05%. Relative underperformance was largely the result of an overweight to developed international equites which mitigated the gains of an overweight in U.S. equities from earlier in the year. Actively managed fixed income 2015 return of 1.29% vs. the Barclays Intermediate Gov/Credit return of 1.07%. Relative performance was helped by an overweight in the 5-7 year buckets and an underweight to the 10 year bucket along with an underweight to corporate credit. TRUSTED ADVISORS ▪MORE EXPERTS ▪BETTER ACCESS12 PORTFOLIO REVIEW Pa g e 17 of 19 2 Annual Asset Review TRUSTED ADVISORS ▪MORE EXPERTS ▪BETTER ACCESS13 Pa g e 18 of 19 2 Determine investment goals and objectives; Approve an appropriate asset allocation strategy Develop optimal portfolios that capitalize on investment philosophy Invest funds and manage based on client needs with modest tilts given market environment Regular reporting and communication with client; Annual review of asset allocation and capital market assumptions Analyze Implement Review Plan Prudent Investment Management Process TRUSTED ADVISORS ▪MORE EXPERTS ▪BETTER ACCESS14 ANNUAL ASSET REVIEW Annual Review 1 ETF/Mutual Fund Review 2 Consider additions to or a reduction in the currently invested asset classes 3 Update capital market return and risk projections Review w/client and affirm or change allocation as necessary Collaborative Process Led by Assigned Portfolio Managers Pa g e 19 of 19 2 Observations on Asset Allocation City of Kenai Permanent Funds The strategic asset allocation of the Permanent Fund is on or very close to the efficient frontier. Portfolio is well diversified across the asset classes that are typically used by institutional investors. The account has ample liquidity as all holdings are publically traded. The portfolio has provided an annual average return of 8.5% since inception, which is inline with the projections made in 2008. Given the current low interest rate environment and strong stock market performance in recent years forward looking expected returns have been lowered. Over seven years the portfolio is expected to return an average of 5.9% per year. This is the average return over the horizon, with variability based on risk exposure. APCM recommends changing the ETFs used for int’l equity exposure. TRUSTED ADVISORS ▪MORE EXPERTS ▪BETTER ACCESS15 ANNUAL ASSET REVIEW Risk and return data from Windham Portfolio Advisor. Asset Class 55% Equity / Current 20.0% 10.0% 5.0% 10.0% 5.0% 5.0% 40.0% 5.0% Return 5.9% Risk 9.7% Ratio 0.61 Large Cap Equity Mid Cap Equity Small Cap Equity International Equity Emerging Markets Equity Cash APCM's Forward Looking Assumptions REITs U.S. Fixed Income Pa g e 20 of 19 2 International Fund Benchmarks Previously in 2013 Vanguard changed the benchmarks for the international developed & emerging market equity ETFs held in the Kenai Permanent Fund. The benchmark was moved to a FTSE index which required an IPS change. Vanguard has announced that the benchmark on these funds will be changing again, which has implications for portfolio holdings. APCM has evaluated these changes and is recommending that the two international Vanguard funds be replaced with Investable Market Index (IMI) products managed by iShares. APCM is proposing a change to the annual resolution which would update the respective performance benchmarks. This will maintain prudent investment limitations and reduce the need for further changes in the future. TRUSTED ADVISORS ▪MORE EXPERTS ▪BETTER ACCESS16 ANNUAL ASSET REVIEW Pa g e 21 of 19 2 Investable Market Indices (IMI) The IMI products from iShares select securities from a slightly broader universe than the standard MSCI indices and provide 15% exposure to small cap companies. As the IMI and standard index are materially similar, APCM recommends using the standard index as the performance benchmark. The fees are three basis points higher than the funds being replaced at 0.12% for developed and 0.18% for emerging. TRUSTED ADVISORS ▪MORE EXPERTS ▪BETTER ACCESS17 ANNUAL ASSET REVIEW Source: MSCI IMI Index Composition Pa g e 22 of 19 2 Strategic Allocation Modeling City of Kenai Permanent Funds TRUSTED ADVISORS ▪MORE EXPERTS ▪BETTER ACCESS18 ANNUAL ASSET REVIEW $18.47 $27.22 $40.68 $15 $20 $25 $30 $35 $40 M i l l i o n s Worst Case Expected Best Case 4.5% Annual Withdrawal ($MM)2016 2017 2018 2019 2020 2021 2022 55% Equity /Current $1.18 $1.19 $1.20 $1.21 $1.22 $1.22 $1.24 Data: Windham Portfolio Advisor. Simulation method: Monte Carlo. Portfolio starting value of $26.0 MM with no contributions. 4.5% annual withdrawal based on average distribution from 2009-2014. Cash flows are at a 50% confidence level. Asset Class 55% Equity / Current 20.0% 10.0% 5.0% 10.0% 5.0% 5.0% 40.0% 5.0% Return 5.9% Risk 9.7% Ratio 0.61 Large Cap Equity Mid Cap Equity Small Cap Equity International Equity Emerging Markets Equity Cash APCM's Forward Looking Assumptions REITs U.S. Fixed Income Allocation and Expected Return 7 Year Horizon Wealth Simulation Pa g e 23 of 19 2 Asset Allocation Considerations TRUSTED ADVISORS ▪MORE EXPERTS ▪BETTER ACCESS19 ANNUAL ASSET REVIEW Factors City of Kenai Permanent Funds Perpetual Commensurate with Return Objective Cover Distributions of ≤ 5% Domestic Equity (lg/mid/sml), International Equity (developed/emerging), REITs, U.S. Intermediate Bonds,Cash Tax Exempt Pa g e 24 of 19 2 Appendix TRUSTED ADVISORS ▪MORE EXPERTS ▪BETTER ACCESS20 Pa g e 25 of 19 2 Market Timing Does Not Work Even missing just a few good days can impact a portfolio’s long term return. TRUSTED ADVISORS ▪MORE EXPERTS ▪BETTER ACCESS21 MARKET REVIEW Source: J.P.Morgan Asset Management, Lipper Pa g e 26 of 19 2 Volatility Still Within Historical Norms The peak to trough decline in 2015 has been -12%, vs. a 35 year average of -14%. TRUSTED ADVISORS ▪MORE EXPERTS ▪BETTER ACCESS22 MARKET REVIEW Source: J.P.Morgan Asset Management. Data through December 31, 2015. Returns are based on price index only and do not include dividends. Intra-year drops refers to the largest market drops from a peak to a trough during the year. Pa g e 27 of 19 2 10 Year U.S. Treasury Rate and Core Inflation Interest rates and inflation are at or near historic lows both in the U.S. and abroad. TRUSTED ADVISORS ▪MORE EXPERTS ▪BETTER ACCESS23 MARKET REVIEW Source: FRB of St. Louis. Shaded areas indicate U.S. recessions. Inflation: +1.3% PCE Core –YoY as of November 30, 2015 10 Year Treasury: 2.27% as of December 31, 2015 +8.3%: Annualized Total Return on U.S. Aggregate Bonds from 1981 to 2015 Pa g e 28 of 19 2 Dollar Strength as Oil Collapses Interest rate expectations have driven the dollar higher as oil reaches decade lows. TRUSTED ADVISORS ▪MORE EXPERTS ▪BETTER ACCESS24 MARKET REVIEW Source: J.P.Morgan Asset Management. Data through December 31, 2015. Pa g e 29 of 19 2 Commodity Prices Near 20 Year Lows Falling prices add to global deflationary pressures, but also help consumers. TRUSTED ADVISORS ▪MORE EXPERTS ▪BETTER ACCESS25 MARKET REVIEW Source: Bloomberg Bloomberg Commodity Index Pa g e 30 of 19 2 Equities Down From Recent All Time Highs Strong earnings and attractiveness vs. bonds have helped stocks in recent years. TRUSTED ADVISORS ▪MORE EXPERTS ▪BETTER ACCESS26 MARKET REVIEW Source: J.P.Morgan Asset Management. Data through December 31, 2015. Pa g e 31 of 19 2 Developed Markets (ex U.S.) Have Better Value Int’l indices that include Europe & Japan have yet to regain their 2007 peak. TRUSTED ADVISORS ▪MORE EXPERTS ▪BETTER ACCESS27 MARKET REVIEW Source: J.P. Morgan Asset Management. Data through December 31, 2015. Pa g e 32 of 19 2 2015 Assumptions and Efficient Frontier TRUSTED ADVISORS ▪MORE EXPERTS ▪BETTER ACCESS28 ANNUAL ASSET REVIEW APCM Annualized Return and Risk Assumptions 7 Year Horizon Return Risk U.S.Large Cap Equities 8.5%17.1% U.S.Mid Cap Equities 9.2%20.0% U.S.Small Cap Equities 9.4%23.1% Int’l Developed Equities 9.2%18.8% Emerging Market Equities 11.5%26.7% REITs 8.5%23.0% U.S. Fixed Income 2.5%4.4% U.S. TIPS 2.0%4.5% International Bonds 2.0%3.3% Commodities 5.5%18.5% Cash 1.8%0.6% Lrg Cap Mid Cap Sml Cap EAFE EM REIT U.S. Bonds TIPS Int’l Bonds Commodities Cash 25% Equity 40% Equity 55% Equity 70% Equity 85% Equity 0% 2% 4% 6% 8% 10% 12% 14% 0%10%20%30% Re t u r n Risk Efficient Frontier Shaded color in the table above represents the direction of change from APCM’s 2014 assumptions. Red = Lower, Green = Higher, Gray = Unchanged Pa g e 33 of 19 2 Po r t f o l i o A p p r a i s a l CI T Y O F K E N A I P E R M A N E N T F U N D S De c e m b e r 3 1 , 2 0 1 5 Yi e l d Av e r a g e T o t a l M a r k e t P c t . A n n u a l A c c r u e d t o Qu a n t i t y Se c u r i t y Co s t A v e r a g e C o s t P r i c e V a l u e A s s e t s I n c o m e I n t e r e s t M a t u r i t y U. S . T R E A S U R Y 22 5 , 0 0 0 U S T R E A S U R Y N O T E S 10 0 . 0 8 22 5 , 1 8 5 1 0 0 . 0 1 22 5 , 0 1 8 0 . 8 7 1 , 4 0 6 65 0 0 . 6 1 0. 6 2 5 % D u e 0 7 - 1 5 - 1 6 25 0 , 0 0 0 U S T R E A S U R Y N O T E S 99 . 3 6 24 8 , 3 9 8 9 9 . 6 9 24 9 , 2 2 0 0 . 9 6 1 , 8 7 5 5 0 . 9 6 0. 7 5 0 % D u e 0 6 - 3 0 - 1 7 25 0 , 0 0 0 U S T R E A S U R Y N O T E S 10 3 . 0 3 25 7 , 5 6 8 1 0 1 . 4 1 25 3 , 5 2 5 0 . 9 8 4 , 6 8 7 1 , 1 9 1 1 . 0 6 1. 8 7 5 % D u e 0 9 - 3 0 - 1 7 55 0 , 0 0 0 U S T R E A S U R Y N O T E S 99 . 4 6 54 7 , 0 3 1 9 8 . 9 0 54 3 , 9 3 9 2 . 0 9 4 , 8 1 2 1 , 0 2 6 1 . 2 8 0. 8 7 5 % D u e 1 0 - 1 5 - 1 8 35 0 , 0 0 0 U S T R E A S U R Y N O T E S 99 . 6 4 34 8 , 7 4 2 9 8 . 8 2 34 5 , 8 7 0 1 . 3 3 4 , 3 7 5 74 5 1 . 5 7 1. 2 5 0 % D u e 1 0 - 3 1 - 1 9 35 0 , 0 0 0 U S T R E A S U R Y N O T E S 10 1 . 1 2 35 3 , 9 1 7 1 0 3 . 9 0 36 3 , 6 4 3 1 . 4 0 9 , 1 8 7 1 , 1 8 6 1 . 7 9 2. 6 2 5 % D u e 1 1 - 1 5 - 2 0 37 5 , 0 0 0 U S T R E A S U R Y N O T E S 99 . 3 4 37 2 , 5 1 0 1 0 1 . 2 6 37 9 , 7 1 7 1 . 4 6 7 , 9 6 9 22 1 . 8 8 2. 1 2 5 % D u e 0 6 - 3 0 - 2 1 75 0 , 0 0 0 U S T R E A S U R Y N O T E S 10 0 . 5 9 75 4 , 4 1 4 1 0 0 . 2 8 75 2 , 0 7 7 2 . 8 9 1 5 , 0 0 0 2 , 5 5 5 1 . 9 5 2. 0 0 0 % D u e 1 0 - 3 1 - 2 1 50 0 , 0 0 0 U S T R E A S U R Y N O T E S 98 . 2 4 49 1 , 2 1 1 1 0 2 . 6 0 51 2 , 9 9 0 1 . 9 7 1 2 , 5 0 0 4 , 7 2 1 2 . 1 3 2. 5 0 0 % D u e 0 8 - 1 5 - 2 3 50 0 , 0 0 0 U S T R E A S U R Y N O T E S 10 0 . 2 3 50 1 , 1 3 3 1 0 1 . 0 4 50 5 , 2 1 5 1 . 9 4 1 1 , 8 7 5 4 , 4 8 5 2 . 2 4 2. 3 7 5 % D u e 0 8 - 1 5 - 2 4 Ac c r u e d I n t e r e s t 16 , 5 8 7 0 . 0 6 4, 1 0 0 , 1 0 9 4, 1 4 7 , 8 0 2 1 5 . 9 5 16 , 5 8 7 AG E N C I E S 45 0 , 0 0 0 F H L M C 11 0 . 6 6 49 7 , 9 7 0 1 0 8 . 5 9 48 8 , 6 7 3 1 . 8 8 2 1 , 9 3 7 1 , 0 9 7 1 . 3 0 4. 8 7 5 % D u e 0 6 - 1 3 - 1 8 Ac c r u e d I n t e r e s t 1, 0 9 7 0 . 0 0 49 7 , 9 7 0 48 9 , 7 7 0 1 . 8 8 1, 0 9 7 FN M A & F H L M C 51 , 4 4 3 F H L M C P O O L G 1 4 2 0 3 10 4 . 5 6 53 , 7 9 0 1 0 5 . 6 1 54 , 3 2 9 0 . 2 1 2 , 0 5 8 17 1 1 . 4 3 4. 0 0 0 % D u e 0 4 - 0 1 - 2 6 Ac c r u e d I n t e r e s t 17 1 0 . 0 0 53 , 7 9 0 54 , 5 0 1 0 . 2 1 17 1 CO R P O R A T E B O N D S 17 5 , 0 0 0 K E L L O G G C O 10 0 . 7 0 17 6 , 2 2 5 1 0 0 . 0 4 17 5 , 0 7 7 0 . 6 7 3 , 0 6 2 37 4 1 . 7 1 1. 7 5 0 % D u e 0 5 - 1 7 - 1 7 1 Page 34 of 192 Po r t f o l i o A p p r a i s a l CI T Y O F K E N A I P E R M A N E N T F U N D S De c e m b e r 3 1 , 2 0 1 5 Yi e l d Av e r a g e T o t a l M a r k e t P c t . A n n u a l A c c r u e d t o Qu a n t i t y Se c u r i t y Co s t A v e r a g e C o s t P r i c e V a l u e A s s e t s I n c o m e I n t e r e s t M a t u r i t y 20 0 , 0 0 0 S T A T O I L A S A 10 1 . 1 1 20 2 , 2 1 2 1 0 2 . 5 7 20 5 , 1 4 0 0 . 7 9 6 , 2 5 0 2 , 3 2 6 1 . 5 2 3. 1 2 5 % D u e 0 8 - 1 7 - 1 7 25 0 , 0 0 0 U N I T E D P A R C E L S E R V I C E 12 1 . 2 3 30 3 , 0 7 5 1 0 8 . 2 3 27 0 , 5 8 0 1 . 0 4 1 3 , 7 5 0 6 , 3 4 0 1 . 3 9 5. 5 0 0 % D u e 0 1 - 1 5 - 1 8 20 0 , 0 0 0 W A C H O V I A C O R P 85 . 5 0 17 1 , 0 0 0 1 0 8 . 0 1 21 6 , 0 1 8 0 . 8 3 1 1 , 5 0 0 4 , 7 9 2 1 . 8 1 5. 7 5 0 % D u e 0 2 - 0 1 - 1 8 20 0 , 0 0 0 M C D O N A L D S C O R P M / T / N 10 4 . 3 5 20 8 , 6 9 8 1 0 7 . 0 8 21 4 , 1 5 4 0 . 8 2 1 0 , 7 0 0 3 , 5 6 7 1 . 9 9 5. 3 5 0 % D u e 0 3 - 0 1 - 1 8 20 0 , 0 0 0 C H E V R O N C O R P 99 . 8 6 19 9 , 7 1 2 9 9 . 2 0 19 8 , 4 0 0 0 . 7 6 2 , 7 3 0 90 2 1 . 7 4 1. 3 6 5 % D u e 0 3 - 0 2 - 1 8 20 0 , 0 0 0 B E R K S H I R E H A T H A W A Y F I N A N C E 11 7 . 8 6 23 5 , 7 1 4 1 0 8 . 5 4 21 7 , 0 8 2 0 . 8 3 1 0 , 8 0 0 1 , 3 8 0 1 . 7 1 5. 4 0 0 % D u e 0 5 - 1 5 - 1 8 20 0 , 0 0 0 C O M M O N W E A L T H E D I S O N 12 3 . 2 0 24 6 , 4 0 0 1 1 1 . 0 9 22 2 , 1 7 2 0 . 8 5 1 3 , 9 0 0 6 , 4 0 9 2 . 4 2 6. 9 5 0 % D u e 0 7 - 1 5 - 1 8 20 0 , 0 0 0 S O U T H E R N C A L E D I S O N 12 2 . 0 7 24 4 , 1 3 4 1 0 8 . 9 5 21 7 , 9 0 2 0 . 8 4 1 1 , 0 0 0 4 , 1 5 6 1 . 9 8 5. 5 0 0 % D u e 0 8 - 1 5 - 1 8 20 0 , 0 0 0 T O Y O T A M O T O R C R E D I T C O R P 10 0 . 4 8 20 0 , 9 5 8 1 0 0 . 2 1 20 0 , 4 2 0 0 . 7 7 4 , 2 0 0 1 , 9 1 3 2 . 0 3 2. 1 0 0 % D u e 0 1 - 1 7 - 1 9 50 0 , 0 0 0 G O L D M A N S A C H S G R O U P I N C . 11 6 . 5 1 58 2 , 5 7 0 1 1 4 . 4 3 57 2 , 1 3 0 2 . 2 0 3 7 , 5 0 0 1 4 , 1 6 7 2 . 6 5 7. 5 0 0 % D u e 0 2 - 1 5 - 1 9 20 0 , 0 0 0 M I C R O S O F T C O R P 11 7 . 2 4 23 4 , 4 7 2 1 0 8 . 1 5 21 6 , 3 0 6 0 . 8 3 8 , 4 0 0 70 0 1 . 7 3 4. 2 0 0 % D u e 0 6 - 0 1 - 1 9 20 0 , 0 0 0 T O R O N T O - D O M I N I O N B A N K 10 1 . 8 9 20 3 , 7 8 2 1 0 0 . 3 7 20 0 , 7 3 8 0 . 7 7 4 , 5 0 0 1 , 2 0 0 2 . 1 4 2. 2 5 0 % D u e 0 9 - 2 5 - 1 9 20 0 , 0 0 0 H S B C U S A I N C 99 . 6 1 19 9 , 2 1 6 9 9 . 5 8 19 9 , 1 6 2 0 . 7 7 4 , 7 5 0 63 3 2 . 4 9 2. 3 7 5 % D u e 1 1 - 1 3 - 1 9 20 0 , 0 0 0 E N T E R P R I S E P R O D U C T S O P E R 11 2 . 7 5 22 5 , 4 9 4 1 0 4 . 8 8 20 9 , 7 6 2 0 . 8 1 1 0 , 4 0 0 3 , 4 6 7 3 . 9 8 5. 2 0 0 % D u e 0 6 - 0 1 - 2 0 25 0 , 0 0 0 P N C B A N K N A 99 . 7 2 24 9 , 3 0 0 9 9 . 5 5 24 8 , 8 7 7 0 . 9 6 6 , 1 2 5 98 7 2 . 5 5 2. 4 5 0 % D u e 1 1 - 0 5 - 2 0 20 0 , 0 0 0 N B C U N I V E R S A L M E D I A L L C 10 9 . 2 0 21 8 , 4 0 8 1 0 8 . 6 2 21 7 , 2 4 6 0 . 8 4 8 , 7 5 0 2 , 1 8 7 2 . 6 0 4. 3 7 5 % D u e 0 4 - 0 1 - 2 1 20 0 , 0 0 0 M O R G A N S T A N L E Y 11 4 . 9 8 22 9 , 9 6 4 1 1 2 . 0 4 22 4 , 0 7 4 0 . 8 6 1 1 , 0 0 0 4 , 6 7 5 3 . 1 3 5. 5 0 0 % D u e 0 7 - 2 8 - 2 1 20 0 , 0 0 0 B A N K A M E R C O R P 99 . 3 4 19 8 , 6 8 6 9 8 . 4 3 19 6 , 8 6 6 0 . 7 6 6 , 6 0 0 3 , 1 1 7 3 . 5 5 3. 3 0 0 % D u e 0 1 - 1 1 - 2 3 20 0 , 0 0 0 J P M O R G A N C H A S E & C O 10 5 . 1 8 21 0 , 3 6 2 1 0 2 . 8 1 20 5 , 6 1 4 0 . 7 9 7 , 7 5 0 3 , 2 2 9 3 . 4 7 3. 8 7 5 % D u e 0 2 - 0 1 - 2 4 17 5 , 0 0 0 P R U D E N T I A L F I N A N C I A L I N C 10 3 . 1 5 18 0 , 5 0 5 1 0 0 . 4 1 17 5 , 7 2 6 0 . 6 8 6 , 1 2 5 78 3 3 . 4 4 3. 5 0 0 % D u e 0 5 - 1 5 - 2 4 2 Page 35 of 192 Po r t f o l i o A p p r a i s a l CI T Y O F K E N A I P E R M A N E N T F U N D S De c e m b e r 3 1 , 2 0 1 5 Yi e l d Av e r a g e T o t a l M a r k e t P c t . A n n u a l A c c r u e d t o Qu a n t i t y Se c u r i t y Co s t A v e r a g e C o s t P r i c e V a l u e A s s e t s I n c o m e I n t e r e s t M a t u r i t y Ac c r u e d I n t e r e s t 67 , 3 0 4 0 . 2 6 4, 9 2 0 , 8 8 7 4, 8 7 0 , 7 5 1 1 8 . 7 3 67 , 3 0 4 DO M E S T I C L A R G E C A P E Q U I T Y F U N D S / E T F 25 , 2 2 5 S P D R S & P 5 0 0 E T F 10 8 . 4 2 2 , 7 3 4 , 9 9 4 2 0 3 . 8 7 5 , 1 4 2 , 6 2 1 1 9 . 7 8 N A DO M E S T I C M I D C A P E Q U I T Y F U N D S / E T F 18 , 5 0 0 I S H A R E S C O R E S & P M I D C A P 4 0 0 E T F 62 . 1 7 1 , 1 5 0 , 2 2 0 1 3 9 . 3 2 2, 5 7 7 , 4 2 0 9 . 9 1 N A DO M E S T I C S M A L L C A P E Q U I T Y F U N D S / E T F 11 , 8 5 0 I S H A R E S S & P S M A L L C A P 6 0 0 I N D E X E T F 53 . 7 9 63 7 , 3 8 6 1 1 0 . 1 1 1, 3 0 4 , 8 0 3 5 . 0 2 N A IN T E R N A T I O N A L E Q U I T Y F U N D S / E T F 82 , 9 1 0 V A N G U A R D F T S E D E V E L O P E D M A R K E T S E T F 31 . 1 7 2 , 5 8 3 , 9 7 4 3 6 . 7 2 3, 0 4 4 , 4 5 5 1 1 . 7 1 N A EM E R G I N G M A R K E T F U N D S / E T F 38 , 3 9 5 V A N G U A R D F T S E E M E R G I N G M A R K E T S E T F 31 . 3 7 1 , 2 0 4 , 5 2 1 3 2 . 7 1 1, 2 5 5 , 9 0 0 4 . 8 3 N A RE A L E S T A T E 16 , 8 2 1 V A N G U A R D R E I T E T F 31 . 3 7 52 7 , 6 1 4 7 9 . 7 3 1, 3 4 1 , 1 3 8 5 . 1 6 N A CA S H A N D E Q U I V A L E N T S DI V I D E N D A C C R U A L 30 , 5 6 1 30 , 5 6 1 0 . 1 2 WE L L S F A R G O S E C U R E D M O N E Y M A R K E T A C C O U N T 1, 7 4 1 , 8 2 4 1, 7 4 1 , 8 2 4 6 . 7 0 1, 7 7 2 , 3 8 5 1, 7 7 2 , 3 8 5 6 . 8 2 TO T A L P O R T F O L I O 20 , 1 8 3 , 8 5 1 2 6 , 0 0 1 , 5 4 7 1 0 0 6 3 2 , 5 5 0 8 5 , 1 6 0 3 Page 36 of 192 PE R F O R M A N C E H I S T O R Y GR O S S O F F E E S CI T Y O F K E N A I P E R M A N E N T F U N D S 71 1 5 2 2 5 5 8 Pe r c e n t R e t u r n Per P e r i o d Ti m e P e r i o d T o t a l Ac c o u n t Bl e n d F i x e d In c o m e BA R C IN T G / C BE N C H In t ' l Eq u i t y FT S E DE V E L O P E D EX N A BE N C H Do m e s t i c Mi d C a p Eq u i t y S& P 4 0 0 MI D C A P BE N C H Do m e s t i c Sm a l l Ca p Eq u i t y S & P 60 0 SM A L L CA P S BE N C H Em e r g i n g Ma r k e t Eq u i t y FT S E EM E R G I N MA R K E T BE N C H Re a l Es t a t e S& P U S RE I T BE N C H Do m e s t i c La r g e Ca p Eq u i t y S& P 5 0 0 LA R G E CA P S BE N C H Ca s h a n d Ca s h Eq u i v a l e n t s CI T I G R O U P 3M O TB I L L IN D E X 12 - 3 1 - 1 4 t o 0 1 - 3 1 - 1 5 0 . 1 2 0 . 2 1 1 . 5 4 1 . 6 6 0 . 7 1 0 . 6 2 - 1 . 1 3 - 1 . 1 2 - 3 . 5 9 - 3 . 4 9 - 0 . 2 0 0 . 7 5 6 . 8 5 6 . 7 0 - 2 . 9 6 - 3 . 0 0 0 . 0 0 0 . 0 0 01 - 3 1 - 1 5 t o 0 2 - 2 8 - 1 5 2 . 3 6 2 . 2 4 - 0 . 6 3 - 0 . 7 0 6 . 1 6 5 . 7 6 5 . 0 0 5 . 1 2 5 . 8 3 6 . 0 3 4 . 6 6 3 . 1 7 - 3 . 6 7 - 3 . 5 1 5 . 7 0 5 . 7 5 0 . 0 0 0 . 0 0 02 - 2 8 - 1 5 t o 0 3 - 3 1 - 1 5 - 0 . 0 4 - 0 . 0 5 0 . 4 3 0 . 4 9 - 1 . 2 1 - 1 . 3 0 1 . 3 4 1 . 3 2 1 . 6 1 1 . 6 0 - 2 . 0 6 - 1 . 9 8 1 . 7 4 1 . 7 4 - 1 . 5 7 - 1 . 5 8 0 . 0 0 0 . 0 0 03 - 3 1 - 1 5 t o 0 4 - 3 0 - 1 5 0 . 3 6 0 . 4 3 - 0 . 0 7 - 0 . 0 4 3 . 9 8 4 . 1 9 - 1 . 3 5 - 1 . 4 9 - 2 . 1 7 - 2 . 3 3 7 . 5 8 7 . 9 1 - 5 . 7 1 - 5 . 8 7 1 . 1 1 0 . 9 6 0 . 0 0 0 . 0 0 04 - 3 0 - 1 5 t o 0 5 - 3 1 - 1 5 0 . 3 4 0 . 2 7 0 . 0 3 0 . 0 1 - 0 . 0 5 - 0 . 6 2 1 . 6 7 1 . 7 8 1 . 4 6 1 . 5 3 - 3 . 5 5 - 3 . 3 8 - 0 . 3 0 - 0 . 2 3 1 . 2 9 1 . 2 9 0 . 0 0 0 . 0 0 05 - 3 1 - 1 5 t o 0 6 - 3 0 - 1 5 - 1 . 3 4 - 1 . 3 3 - 0 . 5 0 - 0 . 6 0 - 2 . 8 8 - 2 . 8 3 - 1 . 2 2 - 1 . 3 2 1 . 0 7 1 . 0 3 - 2 . 5 4 - 2 . 3 0 - 4 . 6 7 - 4 . 5 4 - 2 . 0 2 - 1 . 9 4 0 . 0 0 0 . 0 0 06 - 3 0 - 1 5 t o 0 7 - 3 1 - 1 5 0 . 7 0 0 . 6 3 0 . 4 0 0 . 3 6 1 . 4 6 1 . 6 0 0 . 0 2 0 . 1 4 - 0 . 8 3 - 0 . 8 5 - 6 . 2 6 - 6 . 8 8 5 . 7 7 5 . 6 1 2 . 2 6 2 . 1 0 0 . 0 0 0 . 0 0 07 - 3 1 - 1 5 t o 0 8 - 3 1 - 1 5 - 3 . 6 5 - 3 . 5 6 - 0 . 0 1 - 0 . 0 8 - 7 . 1 8 - 7 . 1 9 - 5 . 6 0 - 5 . 5 8 - 5 . 1 9 - 5 . 1 8 - 9 . 7 9 - 9 . 4 4 - 6 . 2 9 - 6 . 2 2 - 6 . 0 8 - 6 . 0 3 0 . 0 0 0 . 0 0 08 - 3 1 - 1 5 t o 0 9 - 3 0 - 1 5 - 1 . 2 7 - 1 . 2 3 0 . 7 0 0 . 6 7 - 4 . 0 9 - 4 . 7 6 - 3 . 1 6 - 3 . 2 2 - 3 . 5 2 - 3 . 5 0 - 2 . 9 0 - 3 . 7 2 3 . 0 6 3 . 0 6 - 2 . 5 4 - 2 . 4 7 0 . 0 0 0 . 0 0 09 - 3 0 - 1 5 t o 1 0 - 3 1 - 1 5 3 . 9 2 3 . 9 1 - 0 . 1 1 - 0 . 1 0 6 . 7 3 7 . 9 4 5 . 6 5 5 . 6 3 6 . 2 9 6 . 1 0 5 . 2 9 6 . 3 8 5 . 7 6 5 . 6 5 8 . 5 1 8 . 4 4 0 . 0 0 0 . 0 0 10 - 3 1 - 1 5 t o 1 1 - 3 0 - 1 5 0 . 0 6 - 0 . 1 4 - 0 . 1 3 - 0 . 2 6 - 0 . 7 6 - 1 . 5 6 1 . 3 5 1 . 3 5 2 . 7 0 2 . 6 8 - 2 . 3 0 - 3 . 7 0 - 0 . 6 3 - 0 . 5 8 0 . 3 9 0 . 3 0 0 . 0 0 0 . 0 0 11 - 3 0 - 1 5 t o 1 2 - 3 1 - 1 5 - 1 . 5 1 - 1 . 2 5 - 0 . 3 5 - 0 . 3 3 - 2 . 1 5 - 1 . 2 7 - 4 . 2 1 - 4 . 1 7 - 4 . 7 4 - 4 . 7 9 - 3 . 4 5 - 2 . 1 3 1 . 8 2 1 . 8 4 - 1 . 7 3 - 1 . 5 8 0 . 0 0 0 . 0 1 Da t e t o D a t e 12 - 3 1 - 1 4 t o 1 2 - 3 1 - 1 5 - 0 . 1 4 - 0 . 0 5 1 . 2 9 1 . 0 7 - 0 . 1 8 - 0 . 4 5 - 2 . 2 5 - 2 . 1 8 - 1 . 9 0 - 1 . 9 7 - 1 5 . 6 3 - 1 5 . 5 0 2 . 5 9 2 . 5 4 1 . 4 9 1 . 3 8 0 . 0 0 0 . 0 3 Page 37 of 192 [PAGE LEFT BLANK INTENTIONALLY] Page 38 of 192 Page 39 of 192 Page 40 of 192 Page 41 of 192 Page 42 of 192 Page 43 of 192 Page 44 of 192 Page 45 of 192 Page 46 of 192 Page 47 of 192 Page 48 of 192 Page 49 of 192 Page 50 of 192 Page 51 of 192 Page 52 of 192 Page 53 of 192 Page 54 of 192 Page 55 of 192 Page 56 of 192 Page 57 of 192 Page 58 of 192 Page 59 of 192 Page 60 of 192 Page 61 of 192 Page 62 of 192 Page 63 of 192 Page 64 of 192 Page 65 of 192 Page 66 of 192 Page 67 of 192 Page 68 of 192 Page 69 of 192 Page 70 of 192 Page 71 of 192 Page 72 of 192 Page 73 of 192 Page 74 of 192 Page 75 of 192 Page 76 of 192 Page 77 of 192 Page 78 of 192 Page 79 of 192 Page 80 of 192 Page 81 of 192 Page 82 of 192 Page 83 of 192 Page 84 of 192 Page 85 of 192 Page 86 of 192 Page 87 of 192 Page 88 of 192 Page 89 of 192 [PAGE LEFT BLANK INTENTIONALLY] Page 90 of 192 Page 91 of 192 Page 92 of 192 Page 93 of 192 [PAGE LEFT BLANK INTENTIONALLY] Page 94 of 192 Page 95 of 192 Page 96 of 192 Page 97 of 192 Page 98 of 192 Page 99 of 192 [PAGE LEFT BLANK INTENTIONALLY] Page 100 of 192 KENAI CITY COUNCIL – REGULAR MEETING JANUARY 6, 2016 – 6:00 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 January 6, 2016, in City Hall Council Chambers, Kenai, AK. Mayor Pat Porter called the meeting to order at 6:00 p.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 Brian Gabriel, Vice Mayor Terry Bookey Mike Boyle Tim Navarre A quorum was present. Also in attendance were: **Hannah Drury, Student Representative Rick Koch, City Manager Scott Bloom, City Attorney Sandra Modigh, City Clerk Jamie Heinz, Deputy Clerk 3. Agenda Approval Mayor Porter noted the following requested revisions/additions to the agenda/packet: Add to Item D. 1 Ordinance No. 2865-2015 • Supporting Correspondence Add to Item D. 2 Ordinance No. 2868-2015 • Supporting Memorandum Add to Item G. 11 Nomination of Appointments to Committees • Additional Application for Beautification Committee Page 101 of 192 MOTION: Council Member Molloy MOVED to approve the agenda with requested revisions and requested UNANIMOUS CONSENT. Vice Mayor Gabriel SECONDED the motion. VOTE: There being no objections, SO ORDERED. 4. Consent Agenda MOTION: Vice Mayor Gabriel MOVED to approve the consent agenda; Council Member Bookey SECONDED the motion and requested UNANIMOUS CONSENT. Mayor Porter opened public comment for items on the consent agenda. Joe Harris spoke against marijuana being consumed in the Townsite Historic District and wanted to ensure a 500 foot buffer zone was provided for churches. Jim Glendening spoke in favor of the amendments proposed by City Attorney Bloom noting that they collected and distilled the sentiments from the December 17 joint work session with City Council and the Planning & Zoning Commission. Dollynda Phelps spoke against the moratorium on marijuana consumption at retail marijuana stores and clubs suggesting the restrictions were based on fear. She pointed out that the Marijuana Control Board had developed very strict regulations. She also encouraged consideration of the economic growth the new industry would bring to the City. JR Bovak spoke in favor of Ordinance No. 2870-2016 regarding the proposed zoning regulations, setting a footprint for legal commercial marijuana. He noted that even though he voted no on legalization, he recognized the sooner it was out in the open, the sooner it would be removed from the black market. There being no one else 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 C. UNSCHEDULED PUBLIC COMMENTS Bob Standish spoke against the fireworks ordinance that had passed and asked for reconsideration. He explained he and his dogs were disturbed for four nights and had to confront the offenders himself. He also explained that because fireworks were illegal in Anchorage, people were coming to Kenai set them off. Page 102 of 192 Sondra Bruzinski spoke on behalf of Charlie Yamada who had been advocating for the bowling alley. She explained that Charlie had continued her efforts to obtain information and regulations regarding bowling alleys; advised that paperwork would be submitted to the City in the future. She also explained that Charlie was in Las Vegas where her sons were trying out for the Team USA bowling team; had been travelling to Anchorage for qualifying rounds; wanted the opportunity available in Kenai. D. PUBLIC HEARINGS 1. Ordinance No. 2865-2015 – Amending Kenai Municipal Code Section 1.10.040 - Time of Regular Meeting, to Provide Procedures for Establishing, Canceling and Changing Meeting Dates. [Clerk’s Note: At its December 16th meeting, the Ordinance was postponed to the January 6th meeting for the purpose of conducting an additional public hearing. A motion to enact is on the floor.] Mayor Porter opened the public hearing. Carol Freas spoke in favor noting that codifying would set a procedure for the cancellation of meetings, provide the ability to schedule legislation through committees and commissions, provide for timely scheduling of hearings, and allow for scheduling travel for Administration, Mayor, and Council. She also noted that posting and public noticing requirements provided constant advertisement. There being no one else wishing to be heard, the public hearing was closed. It was noted that though the voters allowed for the cancellation of meetings, there wasn’t a procedure provided and the procedure set forth in the ordinance provided for transparency, public notice and a public hearing regarding the cancellation of a meeting. MOTION TO AMEND: Vice Mayor Gabriel MOVED to amend section 2, paragraph c, by inserting the words, “during the calendar year,” after, “The Council may cancel or reschedule a regular meeting,” and before the phrase, “for any reason,” in the first sentence. The motion was SECONDED by Council Member Bookey. VOTE ON THE AMENDMENT: YEA: Porter, Boyle, Molloy, Knackstedt, Gabriel, Bookey, Navarre NAY: **Student Representative Drury: YEA MOTION PASSED UNANIMOUSLY. MOTION TO AMEND : Page 103 of 192 Councilor Navarre MOVED to amend section 2, paragraph b, by inserting the words, “the City Clerk on behalf of Council,” after the words, “On or before the last meeting of December,” and before the words, “by resolution, shall establish,” so the statement reads, “On or before the last meeting of December, the City Clerk on behalf of Council, by resolution, shall establish the dates for the subsequent year’s Council meetings.”; the motion was SECONDED by Council Member Bookey. Administration pointed out that the City Clerk does not establish by resolution. The motion was withdrawn. MOTION TO AMEND : Councilor Navarre MOVED to amend the first sentence in sub-section b to read, “On or before last meeting of December, the City Clerk shall introduce a resolution on behalf of Council establishing the dates for the subsequent year’s Council meetings.”; the motion was SECONDED by Council Member Bookey who requested UNANIMOUS CONSENT. VOTE ON THE AMENDMENT: There being no objections, SO ORDERED. It was pointed out there were redundancies in sub-section c. MOTION TO AMEND : Councilor Navarre MOVED to amend by removing last sentence of sub-section c which stated, “The resolution must set forth the reason for the action to cancel or reschedule.”; the motion was SECONDED by Vice Mayor Gabriel. It was clarified that the whereas clauses in the resolutions would set forth facts that may provide reasons. VOTE ON THE AMENDMENT MOTION: YEA: Porter, Knackstedt, Gabriel, Navarre NAY: Bookey, Boyle, Molloy **Student Representative Drury: YEA MOTION PASSED. There was suggestion that a resolution may not be necessary and would prevent cancellation of the next meeting, if necessary. MOTION TO AMEND : Councilor Knackstedt MOVED to amend by removing “on a resolution,” so the sentence would read, “The Council may cancel or reschedule a regular meeting during the calendar year for any reason by a majority vote, as long as the Council complies with the minimum requirements for regular meetings.”; the motion was SECONDED by Council Member Navarre. Page 104 of 192 It was noted that by removing the requirement of a resolution meant a meeting could be cancelled with no public notice. It was suggested that there should be a reason for cancellation provided for those who are interested. The point was made that a meeting or work session could be called with no prior notice. VOTE ON THE AMENDMENT MOTION: YEA: Porter, Knackstedt, Navarre NAY: Bookey, Boyle, Molloy, Gabriel **Student Representative Drury: YEA MOTION FAILED. Administration clarified that sub-section d made the process more stringent than charter as it dealt with immediacy. It was further clarified that code and charter would be complimentary and not contradictory should the ordinance be adopted. VOTE ON THE MAIN MOTION: YEA: Boyle, Molloy, Gabriel, Bookey, Navarre NAY: Porter, Knackstedt **Student Representative Drury: YEA MOTION PASSED. 2. Ordinance No. 2868-2015 – Establishing a Moratorium on Consumption of Marijuana and Marijuana Products in Marijuana Retail Establishments and Marijuana Clubs. MOTION: Councilor Knackstedt MOVED to enact Ordinance No. 2868-2015; the motion was SECONDED by Vice Mayor Gabriel. Mayor Porter opened the public hearing. Patricia Patterson spoke against the moratorium; noted the state set up licensing parameters and she was in favor of those. She also noted that a safe, adult, responsible place to consume was needed to keep it out of cars and away from children, similar to a bar that serves alcohol. Additionally, she spoke of owning a retail store noting that startup cost a lot of money and required cash; pointed out that in order to put someone out of business, the American way was to not shop there. Joshua Bird spoke against the moratorium; stated he had operated Green Rush Events, a marijuana club, but had recently closed the doors. He pointed out that in the time the club was open there were no problems from police or with people driving after consuming. He also stated the Marijuana Control Board had done hours of research and were going to create an onsite consumption license to go with the retail store license. Page 105 of 192 JR Bovak spoke against the moratorium; reiterated earlier comments that the sooner marijuana legalization was brought out into the open, the sooner the black market will be squelched. Sherry Bodine spoke in favor of the ordinance; stated that with more knowledge, you are better equipped to provide for public safety. She also pointed out how the half life of marijuana affects a person and was compounded with continued consumption. Diane Fikes spoke in favor of the ordinance. She suggested the state hadn’t yet done enough; hadn’t considered air quality, the service people serving the businesses, or public safety. There being no one else wishing to be heard, the public hearing was closed. It was noted that consuming on a retail premises was added at the last minute and the state hadn’t done anything regarding safety. The point was made that the state provided for licensing but also provided for individual communities to determine the footprint for the industry. It was clarified that the moratorium only prohibited consumption in the retail stores, not the retail stores themselves. MOTION TO AMEND: Councilor Knackstedt MOVED to amend subsection (d)(7) by adding, “premises maintained or operated for the purpose of providing a place,” after, “Marijuana Club” means a licensed or non- licensed,” and before, “where (1),”; the motion was SECONDED by Vice Mayor Gabriel. UNANIMOUS CONSENT was requested. VOTE ON THE AMENDMENT: There being no objections, SO ORDERED. It was pointed out that the moratorium would provide for more regulations to be established to address public safety concerns. MOTION TO AMEND : Councilor Molloy MOVED to amend section 2, subsections (b) and (c) by replacing the word shall with the word may; the motion was SECONDED by Council Member Bookey. UNANIMOUS CONSENT was requested. VOTE ON THE AMENDMENT: There being no objections, SO ORDERED. It was pointed out that first responders arrive to a multitude of situations and had been responding to situations where marijuana consumption had taken place prior to legalization; moratorium wasn’t going to resolve for first responders. VOTE: YEA: Porter, Knackstedt, Navarre, Gabriel NAY: Boyle, Molloy, Bookey **Student Representative Drury: NAY MOTION PASSED. Page 106 of 192 3. Ordinance No. 2869-2015 – Accepting and Appropriating Funds Received from Kenai Senior Connection for the Purchase of Software for the Kenai Senior Center. MOTION: Vice Mayor Gabriel MOVED to enact Ordinance No. 2869-2015. 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. Kenai Senior Connection was thanked for their work. VOTE: YEA: Porter, Knackstedt, Bookey, Molloy, Navarre, Gabriel, Boyle NAY: **Student Representative Drury: YEA MOTION PASSED UNANIMOUSLY. 4. Resolution No. 2016-01 – Authorizing the City Manager to Execute an Amendment to the Agreement between the Department of the Army and the City of Kenai, Alaska for the Kenai Bluffs Stabilization Section 116 Feasibility Study. MOTION: Councilor Molloy MOVED to adopt Resolution No. 2016-01; the motion was SECONDED by Council Member Navarre. UNANIMOUS CONSENT was requested. VOTE: There being no objections, SO ORDERED. E. MINUTES 1.*Regular Meeting Minutes of December 16, 2015 Minutes were approved by the consent agenda. 2.*Work Session Summary of December 17, 2015 Summary was approved by the consent agenda. F. UNFINISHED BUSINESS 1. Reconsideration of Resolution No. 2015-67 – Establishing the 2016 Dates for Regular Meetings of the City Council. [Clerk’s Note: At its December 16th meeting, Resolution 2015-67 failed by a vote of 3-3. A reconsideration of the vote has been requested.] Page 107 of 192 MOTION TO RECONSIDER: Councilor Navarre MOVED for reconsideration; the motion was SECONDED by Council Member Bookey. Administration clarified that Council Member Navarre was not on the prevailing side therefore could not make the motion; the motion was withdrawn. Vice Mayor Gabriel MOVED for reconsideration; the motion was SECONDED by Council Member Bookey. VOTE TO RECONSIDER: YEA: Knackstedt, Molloy, Navarre, Bookey, Porter, Gabriel, Boyle NAY: **Student Representative Drury: YEA MOTION PASSED. VOTE ON THE RECONSIDERED MOTION: YEA: Knackstedt, Molloy, Navarre, Bookey, Porter, Gabriel, Boyle NAY: **Student Representative Drury: YEA MOTION PASSED UNANIMOUSLY. 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. *Action/Approval – Renewal of Liquor Licenses: • Fraternal Order of eagles #3525 • Acapulco Mexican Restaurant • Country Liquor • American Legion Post #20 • Uptown Motel/Back Door Lounge • Uptown Motel/Louie’s • Wal-Mart Supercenter #4474 Approved by the Consent Agenda. Page 108 of 192 4. *Ordinance No. 2870-2015 – Amending Kenai Municipal Code Section 14.20.230 – Home Occupations, to Prohibit Commercial Marijuana Establishments as Allowed Uses, Amending Kenai Municipal Code Section 14.20.320 – Definitions, to Add Marijuana Related Definitions, Enacting Kenai Municipal Code Section 14.20.330 – Standards for Commercial Marijuana Establishments, Creating Standards for Commercial Marijuana Establishments and Amending Kenai Municipal Code Section 14.22.010 – Land Use Table, to Add Commercial Marijuana Establishment Uses and Regulations and Make Other Housekeeping Changes. Introduced on the consent agenda and public hearing set on January 20, 2016. 5. *Ordinance No. 2871-2016 – Enacting Kenai Municipal Code Section 1.10.080 - Local Regulatory Authority, Designating the City Council as the Local Regulatory Authority for Local Regulation of Marijuana Establishments Under Alaska Statute Chapter 17.38. Introduced on the consent agenda and public hearing set on January 20, 2016. 6. *Ordinance No. 2872-2016 – Appropriating Funds in the General and Municipal Roadway Improvements Capital Project Funds in the amount of $50,000 for Construction of a New South Beach Access. Introduced on the consent agenda and public hearing set on January 20, 2016. 7. *Ordinance No. 2873-2016 – Accepting and Appropriating a Federal Grant from the Institute of Museum and Library Services (IMLS) Passed Through the Alaska State Library for Employee Travel and Training. Introduced on the consent agenda and public hearing set on January 20, 2016. 8. *Ordinance No. 2874-2016 – Appropriating Insurance Proceed Received for Damage to City Street Lights. Introduced on the consent agenda and public hearing set on January 20, 2016. [Clerk’s Note: Council Member Bookey left the meeting at 8:09 p.m.] 9. Action/Approval – Assignment of Lease of Airport Lands between the City of Kenai and Dan O. Pitts for Lot 2A1, Block 1, F.B.O. Subdivision, South Addition No. 2 to Kenai Airport Logistics, LLC. MOTION: Councilor Knackstedt MOVED to Assign Lease of Airport Lands Between the City of Kenai and Dan O. Pitts for Lot 2A1, Block 1, F.B.O. Subdivision, South Addition No. 2 to Kenai Airport Logistics, LLC.; the motion was SECONDED by Vice Mayor Gabriel. VOTE: Page 109 of 192 YEA: Knackstedt, Molloy, Navarre, Porter, Gabriel, Boyle NAY: **Student Representative Drury: YEA MOTION PASSED UNANIMOUSLY. 10. Action/Approval – Assignment of Lease of Airport Lands between the City of Kenai and Dan O. Pitts for Lot 1A, Block 1, F.B.O. Subdivision, South Addition to Kenai Airport Logistics, LLC. MOTION: Councilor Knackstedt MOVED to Assign Lease of Airport Lands Between the City of Kenai and Dan O. Pitts for Lot 1A, Block 1, F.B.O. Subdivision, South Addition No. 2 to Kenai Airport Logistics, LLC.; the motion was SECONDED by Vice Mayor Gabriel. VOTE: YEA: Knackstedt, Molloy, Navarre, Porter, Gabriel, Boyle NAY: **Student Representative Drury: YEA MOTION PASSED UNANIMOUSLY. 11. Action/Approval – Mayoral Nomination and Council Confirmation of Appointments to Committee/Commission Vacancies. MOTION: Council Member Molloy MOVED to confirm the Mayor’s nominations for appointment of all individuals, including the one provided in the laydown; the motion was SECONDED by Councilor Knackstedt. UNANIMOUS CONSENT was requested. VOTE: There being no objections, SO ORDERED. H. COMMISSION/COMMITTEE REPORTS 1. Council on Aging – January 14 meeting was cancelled; next meeting February 11. 2. Airport Commission – no report; next meeting January 14. 3. Harbor Commission – January 11 meeting was cancelled; next meeting February 8. 4. Parks and Recreation Commission – January 7 meeting cancelled; next meeting February 4. a. Kenai Outdoor Opportunity Location Committee – It was reported that at their December 15 meeting, the Committee discussed finalized cost estimates and reviewed components for the final presentation to Council. Page 110 of 192 5. Planning and Zoning Commission – no report; next meeting January 13. 6. Beautification Committee – no report; next meeting January 12. 7. Mini-Grant Steering Committee – no report. I. REPORT OF THE MAYOR Mayor Porter reported on the following: • Saturday Coffee, in its new location at the library, went well. • Read to students at Kaleidoscope. • Attended Senator Sullivan’s presentation at Kenai Chamber of Commerce. • Attended the Kenai Central High School and Soldotna High School Alumni hockey game. • Represented the City at Susie Hyde’s funeral services in Anchorage. • Assisted students who were building the KENAI sign. • Met with the new pastor for the Presbyterian Church. J. ADMINISTRATION REPORTS 1. City Manager reported on the following: • Signed an amendment to a legislative grant to extend the lapse date for the Kenai Bluffs Stabilization Project; planned to seek re-appropriation; the amendment allowed two legislative sessions to accomplish the re- appropriation. • Planned to be out of town January 19-26. • Budget process was underway. • Kenai Central High School hosted the 2016 regional hockey tournament on February 4-6. • Asked for direction on advancement of the Comprehensive Plan. MOTION: Councilor Navarre MOVED to give $500 from the contingency fund to help sponsor the regional hockey tournament, if available; the motion was SECONDED by Vice Mayor Gabriel. It was suggested that because the donation was not time sensitive, it should be on a published agenda. MOTION: Councilor Molloy MOVED to postpone to the next meeting; the motion was SECONDED by Council Member Boyle. VOTE: YEA: Knackstedt, Molloy, Porter, Gabriel, Boyle NAY: Navarre **Student Representative Drury: YEA Page 111 of 192 MOTION PASSED. MOTION: Councilor Knackstedt MOVED to direct the City Manager to proceed with the update of the Comprehensive Plan utilizing the 2013 Comprehensive Plan as the basis; the motion was SECONDED by Council Member Navarre. The point was made that the 2013 Comprehensive Plan was rejected by the voters and suggested that the process be started over. It was noted that the issues that came up prior to the election were with protection of neighborhoods and a zoning issue; not the whole document and some sections could be salvaged. MOTION: Councilor Molloy MOVED to postpone to the next meeting; the motion was SECONDED by Council Member Boyle. VOTE: YEA: Molloy, Boyle NAY: Knackstedt, Porter, Gabriel, Navarre **Student Representative Drury: NAY MOTION FAILED. Administration clarified no budgetary resources were requested, but if it was determined funds were necessary, a budget amendment would be sent to Council. VOTE: YEA: Knackstedt, Porter, Gabriel, Navarre NAY: Molloy, Boyle **Student Representative Drury: YEA MOTION PASSED. 2. City Attorney – Reviewed the amendment memo for the marijuana zoning ordinance which was provided in the packet. 3. City Clerk – no report. K. ADDITIONAL PUBLIC COMMENT 1. Citizens Comments (Public comment limited to five (5) minutes per speaker) None. Page 112 of 192 2. Council Comments Council Member Navarre appreciated the reconsideration vote; advised he might be traveling at the next meeting. Council Member Knackstedt noted an upcoming Kenai Historical Society meeting. Vice Mayor Gabriel noted that Kenai lost by one point in the alumni hockey game; reported on the status of the urban set-net ban which was ongoing; also reported the Board of Adjustment had reached a decision in the Garrettson matter regarding the emotional support horse. Student Representative Drury stated the basketball team lost to Homer. Council Member Molloy thanked Council for passing the ordinance setting forth procedure for canceling meetings; noted regulations and policies for public records requests were not online. L. EXECUTIVE SESSION – To Discuss an Unsolicited Offer to Purchase Airport Property Lot 1 Block 1 Gusty Subdivision, a Matter of which the Immediate Knowledge would Clearly have an Adverse Effect Upon the Finances of the City [AS 44.62.310(c)(1)]. MOTION: Vice Mayor Gabriel MOVED to convene Kenai City Council in executive session to discuss an unsolicited offer to purchase airport property, Lot 1, Block 1, Gusty Subdivision, a matter of which the immediate knowledge would clearly have an adverse effect upon the finances of the City; the motion was SECONDED by Council Member Navarre. The City Manager and City Attorney were invited to the executive session. VOTE: YEA: Molloy, Boyle, Knackstedt, Porter, Gabriel, Navarre NAY: MOTION PASSED UNANIMOUSLY. The City Council reconvened in open session. It was explained that Council went into executive session to discuss the potential sale of airport property, Lot 1, Block 1, Gusty Subdivision and no direction was given. M. PENDING ITEMS – None. N. ADJOURNMENT There being no further business before the Council, the meeting was adjourned at 9:13 p.m. I certify the above represents accurate minutes of the Kenai City Council meeting of January 6, 2016. Page 113 of 192 _____________________________ Sandra Modigh, CMC City Clerk **The student representative may cast advisory votes on all matters except those subject to executive session discussion. Advisory votes shall be cast in the rotation of the official council vote and shall not affect the outcome of the official council vote. Advisory votes shall be recorded in the minutes. A student representative may not move or second items during a council meeting Page 114 of 192 Page 115 of 192 [PAGE LEFT BLANK INTENTIONALLY] Page 116 of 192 Page 117 of 192 [PAGE LEFT BLANK INTENTIONALLY] Page 118 of 192 Page 119 of 192 Page 120 of 192 Page 121 of 192 [PAGE LEFT BLANK INTENTIONALLY] Page 122 of 192 Page 123 of 192 Page 124 of 192 Page 125 of 192 [PAGE LEFT BLANK INTENTIONALLY] Page 126 of 192 Page 127 of 192 Page 128 of 192 Page 129 of 192 [PAGE LEFT BLANK INTENTIONALLY] Page 130 of 192 Page 131 of 192 Page 132 of 192 Page 133 of 192 [PAGE LEFT BLANK INTENTIONALLY] Page 134 of 192 Page 135 of 192 Page 136 of 192 Page 137 of 192 [PAGE LEFT BLANK INTENTIONALLY] Page 138 of 192 MEMO: TO: Mayor and City Council Members FROM: Jamie Heinz, Deputy City Clerk DATE: January 14, 2016 SUBJECT: Parks & Recreation Commission Vacancy The Parks & Recreation Commission currently has a vacant seat to be filled. Diane Barth has submitted an application expressing interest in filling the vacancy, term expiring December 2017. Mayor Porter has requested this applicant be included in the packet for nomination. A committee/commission vacancy shall be filled by nomination of the Mayor and confirmation by the Council (KMC 1.90.010). Attachment 210 Fidalgo Avenue, Kenai, Alaska 99611-7794 Telephone: 907-283-7535 / FAX: 907-283-3014 Page 139 of 192 Page 140 of 192 Page 141 of 192 Page 142 of 192 Page 143 of 192 Page 144 of 192 Page 145 of 192 [PAGE LEFT BLANK INTENTIONALLY] Page 146 of 192 Title 2 ALCOHOLIC BEVERAGES Chapters: 2.05 Intoxicating Liquor Defined 2.10 Transfer of Liquor License 2.15 Conformity to State Liquor Laws 2.20 Sales on Election Day 2.25 Consumption 2.30 Drunkenness in Certain Places Prohibited 2.35 Violation of Chapter 2.40 Approval of an Activity of a Licensee Chapter 2.05 INTOXICATING LIQUOR DEFINED Sections: 2.05.010 Definition. 2.05.010 Definition. As used in this title, “intoxicating liquor” includes whiskey, brandy, rum, gin, wine, ale, port, or beer, and all other spirituous, vinous malt, and other fermented or distilled liquors intended for human consumption and containing more than one percent (1%) alcohol by volume. (KC 2-1) Chapter 2.10 TRANSFER OF LIQUOR LICENSE Sections: 2.10.010 Public hearing. 2.10.020 Police to investigate. 2.10.030 Hearing standards. 2.10.010 Public hearing. A public hearing may be held prior to any City Council approval of transfer or issuance of such licenses and establishments. Said public hearing shall be held by the City Council of the City of Kenai, Alaska, at its regular meeting times or such other special hearing date as may be convenient to all parties concerned. Such public hearings shall be publicly advertised in a newspaper of general circulation at least once prior to the holding of the public hearing, and notice thereof shall be posted on the City Council bulletin board, and such other notice as may be directed by the City Council. (KC 2-2, Ord. 918) 2.10.020 Police to investigate. A police investigation of the premises and application for transfer or issuance may be conducted prior to the public hearing form the proposed transfer or issuance. (KC 2-3, Ord. 918) 2.10.030 Hearing standards. A hearing pursuant to this Code shall inquire into the manner of conduct of the premises licensed for liquor dispensary operation and the Council may establish standards for the individual licensee in question, to be incorporated into a resolution, with respect to the premises which are the subject of the hearing in question to include, but not necessarily be limited to, the following: Page 147 of 192 (a) Conduct of the business by the transferee or applicant and employees, as well as past conduct of the transferor; (b) Maintenance of health standards on the premises in question or any improvements to be required; (c) Set an amount of public liability insurance to apply to the licensed premises which shall carry limits commonly referred to as not less than $20,000/100,000 or such other higher limits as may be required by the Council; (d) Payment to the City of all taxes or obligations of the premises involved and limited to such premises; (e) A requirement that the operations of the premises shall be for a period of not less than nine (9) months out of each calendar year of operation; (f) A finding that disorderly conduct has occurred on the premises at least three times in the course of any one particular calendar year—such violations to include instances where the licensee has failed to request assistance of the police in maintaining order; (g) And such other aspects of the proposed operation as would reasonably be a matter for public concern pursuant to the police powers of the City of Kenai, Alaska. (KC 2-4, Ord. 918) Chapter 2.15 CONFORMITY TO STATE LIQUOR LAWS Section: 2.15.010 Incorporation of State Statutes. 2.15.010 Incorporation of State Statutes. Incorporated as though set forth in full herein, are the following quoted provisions of the Statutes of the State of Alaska which are identified by section number and catchline title below: Sec. 04.16.052 Furnishing of alcoholic beverages to persons under the age of 21 by Licensees. Sec. 04.16.060 Purchase by persons under the age of 21. (KC 2-5 through 8; Ords. 188, 1428-91) Chapter 2.20 SALES ON ELECTION DAY Section: 2.20.010 Sales permitted. 2.20.010 Sales permitted. The provisions of AS 04.16.070 do not apply within the City of Kenai when elections are being held and intoxicating liquor may be sold or otherwise disposed of within the City of Kenai on election days in the same manner and pursuant to the same regulations as on other days. (Ord. 1428-91) Chapter 2.25 CONSUMPTION Section: 2.25.010 Prohibited in certain places. 2.25.010 Prohibited in certain places. No person shall consume intoxicating liquor on the public streets, alleys, parks, or other public places, unless specifically exempted in this chapter. A person shall not be held in violation of this section where it is shown that: Page 148 of 192 (a) Such person obtained such intoxicating liquor from a holder of a caterer’s permit, special events permit, or recreational site license issued by the State of Alaska; and, (b) Such person consumed such intoxicating liquor only while upon the premises described in the license or permit referred to in (1) above. (KC 2-10; Ord. 259) Chapter 2.30 DRUNKENNESS IN CERTAIN PLACES PROHIBITED Section: 2.30.010 Drunkenness in certain places prohibited. 2.30.010 Drunkenness in certain places prohibited. (KC 2-11; Ord. 525, Repealed) Chapter 2.35 VIOLATION OF CHAPTER Section: 2.35.010 Penalty. 2.35.010 Penalty. Any person, firm, or corporation who commits a violation as defined by this chapter or who otherwise violates any provision of this chapter, shall be guilty of a misdemeanor, and upon conviction shall be punished as provided for misdemeanors in KMC 13.05.010. (KC 2-12; Ords. 1240, 1858-2000) Chapter 2.40 APPROVAL OF AN ACTIVITY OF A LICENSEE Sections: 2.40.010 Obligations to City. 2.40.020 Approval by Council. 2.40.010 Obligations to City. It is determined to be in the public interest that holders of or applicants for licenses issued by the Alcoholic Beverage Control Board of the State of Alaska shall have all obligations to the City of Kenai on a satisfactory basis prior to the City Council approval of any activity of said license holder or applicant. (KC 2-13; Ord. 1489) 2.40.020 Approval by Council. The Council may approve a notice of non-objection for the renewal of any license or permit issued by the Alcoholic Beverage Control Board in the City of Kenai as long as the licensee(s) or permittee(s) has satisfied all obligation to the City or entered into a City approved payment plan with the Borough or City on any obligations owed to the City and the licensee(s) or permittee(s) is in compliance with such payment plan. If the licensee(s) or permittee(s) has an outstanding obligation to the City and a City approved payment plan has not been entered into, or if the licensee(s) or permittee(s) is not in compliance with the plan, the Council may cause a protest to be filed with the State Alcoholic Beverage Control Board. (Ord. 2778-2014) Page 149 of 192 [PAGE LEFT BLANK INTENTIONALLY] Page 150 of 192 CITY OF KENAI PLANNING & ZONING COMMISSION CITY COUNCIL CHAMBERS JANUARY 13, 2016 - 7:00 P.M. CHAIR JEFF TWAIT, PRESIDING MINUTES 1. CALL TO ORDER: Commission Chair 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 Commissioners present: R. Springer, J. Twait, K. Peterson, J. Glendening, J. Focose, D. Fikes Staff/Council Liaison present: City Planner M. Kelley, Deputy City Clerk J. Heinz, Council Liaison H. Knackstedt A quorum was present. c. Election of Chair and Vice-Chair Commissioner Peterson MOVED to nominate Jeff Twait as Chair; Commissioner Glendening SECONDED the motion. There were no objections; SO ORDERED. Commissioner Peterson MOVED to nominate Diane Fikes as Vice Chair; Commissioner Glendening SECONDED the motion. There were no objections; SO ORDERED. d. Agenda Approval MOTION: Commissioner Fikes MOVED to approve the agenda; Commissioner Peterson SECONDED the motion. There were no objections; SO ORDERED. e. Consent Agenda MOTION: Commissioner Peterson MOVED to approve the consent agenda; Commissioner Focose 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 Page 151 of 192 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. f. *Excused Absences - G. Pettey, 2. *APPROVAL OF MINUTES: December 9, 2015 Approved by the consent agenda. 3. SCHEDULED PUBLIC COMMENT: (10 Minutes) – None. 4. PERSONS PRESENT NOT SCHEDULED: (3 Minutes) – None. 5. CONSIDERATION OF PLATS: None. 6. PUBLIC HEARINGS: None. 7. UNFINISHED BUSINESS: None. 8. NEW BUSINESS: None. 9. PENDING ITEMS: None. 10. REPORTS: a. City Council – Knackstedt reviewed action agenda of the January 6 Council meeting which was provided in the packet. Also reported that the Board of Adjustment had issued its decision in the Garrettson matter to allow the emotional support horse. b. Borough Planning – Glendening reported the action taken by the Borough Planning Commission and Platting Committee at their December 14 meetings; 1 plat amendment approved; 11 plats approved. Also reported that the Planning Commission heard a review on the Anadromous Fish Stream Program and that he was appointed to the Platting Committee. Additionally he reported that on January 4th the commission considered an ordinance to change required distances between liquor license premises which was postponed and also reconsidered a material extraction Conditional Use Permit which was remanded by the Board of Adjustment and brought both parties to a mutual agreement and granted the permit. c. Administration – Kelley reported on the following matters: • City Manager will be at January 27 meeting to discuss Comprehensive Plan. • Work Session on January 27 to discuss abandoned mobile home ordinance. • Public Hearing regarding marijuana legalization will be before the City Council on January 20. 11. PERSONS PRESENT NOT SCHEDULED: None. 12. INFORMATIONAL ITEMS: None. Page 152 of 192 13. NEXT MEETING ATTENDANCE NOTIFICATION: January 27, 2016 Commissioner Glendening noted he would be absent. 14. COMMISSION COMMENTS & QUESTIONS: Commissioner Glendening attended Marijuana Task Force meeting; driven by the industry, also looking at the 1,000 foot buffer zone for the drug free school zone. Commissioner Fikes thanked administration for the Board of Adjustment’s findings regarding the Garrettson matter allowing the emotional support horse. 15. ADJOURNMENT: There being no further business before the Commission, the meeting was adjourned at 7:30 p.m. Minutes prepared and submitted by: _____________________________ Jamie Heinz, CMC Deputy City Clerk Page 153 of 192 [PAGE LEFT BLANK INTENTIONALLY] Page 154 of 192 Page 155 of 192 Page 156 of 192 Page 157 of 192 Page 158 of 192 Page 159 of 192 Page 160 of 192 Page 161 of 192 Page 162 of 192 Page 163 of 192 Page 164 of 192 Page 165 of 192 Page 166 of 192 Page 167 of 192 Page 168 of 192 Page 169 of 192 Page 170 of 192 Page 171 of 192 Page 172 of 192 Page 173 of 192 Page 174 of 192 Page 175 of 192 Page 176 of 192 Page 177 of 192 Page 178 of 192 Page 179 of 192 Page 180 of 192 Page 181 of 192 Page 182 of 192 Page 183 of 192 Page 184 of 192 Page 185 of 192 Page 186 of 192 Page 187 of 192 Page 188 of 192 Page 189 of 192 Page 190 of 192 Page 191 of 192 Page 192 of 192