HomeMy WebLinkAbout2017-02-01 Council Packet
KENAI CITY COUNCIL – REGULAR MEETING
FEBRUARY 1, 2017 – 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. Recognition of Volunteer Services for Phillip Morin
4. Agenda Approval
5. 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. John Williams and Linda Giguere – Update and Explanation of what Cook
Inlet Regional Citizen’s Advisory Council is and Does, and why John Williams
Represents the City.
2. Alaska Permanent Capital Management – Performance Review of City
Permanent Fund Investments, Establishment of 2017 Investment Allocation
and Benchmarks, and 2017 Economic Outlook. [Clerk’s Note: APC has
requested additional speaking time of up to 25 minutes.] ........................ Pg. 5
C. UNSCHEDULED PUBLIC COMMENTS (Public comment limited to three (3)
minutes per speaker; thirty (30) minutes aggregated)
D. PUBLIC HEARINGS
1. Resolution No. 2017-05 – Pertaining to the Authorized Investments of, the
Investment Allocations of, and Establishing Appropriate Benchmarks to
Measure Performance of the City’s Permanent Funds for Calendar Year 2017.
.............................................................................................................Pg. 35
2. Resolution No. 2017-06 – Authorizing the Amended Sale of Lot 3A, Block 1,
Spur Subdivision No. 1, 1983 Addition, City-Owned Airport Property Located
Outside the Airport Reserve, to Dean You, or His Assignee. ................. Pg. 39
Kenai City Council Meeting Page 2 of 4
February 1, 2017
E. MINUTES
1.*Regular Meeting of January 18, 2017 ...................................................... Pg. 45
F. UNFINISHED BUSINESS
1. Resolution No. 2017-03 – Establishing a Sub-Committee of Council for the
Purpose of Improving Efficiency in the Supervision of the City Attorney, City
Clerk and City Manager and Approving Council Policy 2017-02 Establishing
Procedures and Responsibilities of the Sub-Committee. [Clerk’s Note: This
resolution was postponed from the January 18th meeting; a motion to enact is
on the floor.]........................................................................................... Pg. 55
G. NEW BUSINESS
1. *Action/Approval – Bills to be Ratified. ................................................ Pg. 59
2. *Action/Approval – Purchase Orders Exceeding $15,000.
3. *Action/Approval – Non-Objection of the Liquor License Renewals for the
Following:
• 2 Go Mart #206
• Peninsula Oilers
• The Cannery Lodge
.............................................................................................................Pg. 61
4. *Ordinance No. 2939-2017 – Decreasing Estimated Revenues and
Appropriations by $35,000.00 in the Parks Improvement Capital Project Fund
and by $20,000.00 in the Kenai Recreation Center Improvements Capital
Project Fund for Postponed Capital Projects and Authorizing Budget Transfers
in the Parks Improvement Capital Project Fund, the Cemetery Improvements
Capital Project Fund, the Comprehensive Plan Capital Project Fund, the City
Hall Improvements Capital Project Fund and the Trail Construction Capital
Project Fund for the Transfer of Remaining Balances from Completed or
Postponed Capital Projects to the General Fund. .................................. Pg. 87
5. *Ordinance No. 2940-2017 – Accepting and Appropriating Additional Funds
from the Federal Aviation Administration for the Small Taxiways and Aircraft
Tie-Down Rehabilitation 2015-2016 Project. ......................................... Pg. 93
6. Action/Approval – Mayoral Nomination and Council Confirmation to Appoint
Glenda Feeken to the Airport Commission............................................. Pg. 97
7. Action/Approval – Special Use Permit for the Challenger Learning Center of
Alaska to Continue Use of a Donation Kiosk in the Kenai Airport Terminal.
.............................................................................................................. Pg. 99
Kenai City Council Meeting Page 3 of 4
February 1, 2017
8. Action/Approval – Special Use Permit for Evert’s Air Fuel Inc. for Equipment
Parking and Container Storage. .......................................................... Pg. 105
H. COMMISSION/COMMITTEE REPORTS
1. Council on Aging ................................................................................ Pg. 115
2. Airport Commission
3. Harbor Commission
4. Parks and Recreation Commission
5. Planning and Zoning Commission ...................................................... Pg. 121
6. Beautification Committee
7. Mini-Grant Steering Committee........................................................... Pg. 127
I. REPORT OF THE MAYOR
J. ADMINISTRATION REPORTS
1. City Manager ...................................................................................... Pg. 129
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
1. Discussion of an Offer to Purchase Property Located at 10639 Kenai Spur
Highway, Kenai AK also known as Lot 3A, Block 1, Spur Subdivision No. 1,
1983 Addition (the old Bowling Alley), Pursuant to AS 44.62.310(c)(1)(3) a
Matter of which the Immediate Knowledge may have an Adverse Effect Upon
the Finances of the City, and a Matter by which Law, Municipal Charter, or
Ordinance are Required to be Confidential.
M. PENDING ITEMS
1. Ordinance No. 2932-2016 – Donating and Declaring no Longer Needed for a
Public Purpose a Certain Parcel Described as Lot 17, Block 5, Original
Townsite of Kenai, (KPB Parcel No. 047-071-21) to the Kenaitze Indian Tribe.
[Clerk’s Note: This ordinance was postponed from the January 4th meeting and
again from the January 18th to the February 15th meeting; a motion to enact is
on the floor.]
N. ADJOURNMENT
****************************************************************************************************
INFORMATION ITEMS
Kenai City Council Meeting Page 4 of 4
February 1, 2017
1. Purchase Orders between $2,500 and $15,00 for Council Review.
2. Correspondence from Wreaths Across America.org thanking the City for its
donation.
3. Correspondence from the Kenai Peninsula Economic Development Board of
Directors thanking the City for its support with the 2017 Industry Outlook
Forum.
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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INVESTMENT REVIEW
for period ending December 31, 2016
City of Kenai Permanent Funds
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Account Summary as of December 31, 2016
City of Kenai Permanent Funds
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Account Inception September 2008
Total Deposits $19,929,733
Cumulative Withdrawals
Includes Annual Distributions and Custodian Fees $8,331,493
Current Market Value
December 31, 2016 $26,814,511
Annualized Account Return*
September 30, 2008 –December 31, 2016 +8.39% Gross, +8.12% Net
Current Allocation 55% Equity / 45% Bonds
Fee Schedule**0.18%Annual Effective Rate
By following a defined process, the City of Kenai has been able to meet it’s investment goals, grow
the value of the fund, and withdraw an average of over $1MM per year since inception in 2008.
* Performance gross and net of APCM’s management fee. **Based on the annualized amount of the 12/16 invoice.
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Account Snapshot by Year as of December 31, 2016
City of Kenai Permanent Funds
Year Market Value
at Year End Contributions Withdrawals 1 Year
Return
3 Year
Return
5 Year
Return
2008 $17,825,369 $17,281,888 ----
2009 $20,264,072 -$292,189 15.59 --
2010 $21,909,108 -$894,524 13.09 --
2011 $23,348,815 $2,526,702 $1,003,754 -0.14 9.29 -
2012 $24,971,837 -$1,101,462 11.98 8.14 -
2013 $27,018,862 -$1,222,877 13.49 8.26 10.65
2014 $27,289,929 -$1,316,929 6.01 7.70 8.75
2015 $26,001,547 $66,143 $1,353,010 -0.14 6.31 6.08
2016 $26,814,511 $55,000 $1,146,748 7.50 4.40 7.66
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Withdrawals data includes annual distributions and monthly custodian fees. All returns as of applicable year end.
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$10
$15
$20
$25
$30
2008 2009 2010 2011 2012 2013 2014 2015 2016
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Market Value as of December 31, 2016: $26,814,511
Historical Market Value as of December 31, 2016
City of Kenai Permanent Funds
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Chart shows month-end portfolio market value from September 2008 to December 2016.
Contributions and withdrawals greater than $250K displayed.
June 2009
$0.3MM
June 2010
$0.9MM
June 2013
$1.2MM
May 2012
$1.1MMJune 2011
$1.0MM
May 2014
$1.3MM May 2015
$1.4MM
April 2011
$2.5MM
June 2016
$1.1MM
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Market & Portfolio Review
as of December 31, 2016
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Stocks Climbed the Wall of Worry in 2016
Risk assets generally rallied as central banks maintained accommodative policies.
What’s going on:
Equity markets began 2016 in turmoil,
as the falling price of oil, concerns over
China, and expectations for tightening
by the Federal Reserve all weighed on
stocks. The S&P 500 recorded its worst
two week start to a year ever.
The British vote to leave the European
Union in June caused short lived
volatility in the stock market, but many
long term questions remain. While the
U.K. has not yet formally initiated the
exit process, the ongoing negotiations
will be important to watch in 2017.
2016
REVIEW
After the presidential election, U.S. equities rallied strongly on the belief that an increase in fiscal
stimulus through tax cuts and infrastructure spending would reignite growth in the world’s largest
economy. While emerging markets outperformed for much of the year, they sold off on the news
due to a strengthening dollar and concerns over global trade.
After reaching an all time low of 1.37% in June, the yield on the ten-year Treasury increased post-
election as anticipated growth drove up inflation expectations as well.
Chart: Barron’s
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Asset Class Performance as of December 31, 2016
U.S. stocks performed best amid renewed growth expectations while bonds lagged.
0.3 1.0
2.7 2.8
4.9
7.5 8.5
11.2 11.8 12.0
20.7
26.6
-10%
0%
10%
20%
30%
Cash
Citi 90 Day
Tbill
Int'l Equity
MSCI EAFE
Fixed Income
Barclays
Aggregate
TIPS
Barclays 0-5
Year U.S. TIPS
Int'l Bonds
Barclays
Global Agg ex-
US Hedged
Kenai Real Estate
S&P U.S. REIT
Emerging
Markets
MSCI
Emerging
Commodities
Bloomberg
Commodity
Large Cap
S&P 500
Mid Cap
S&P 400
Small Cap
S&P 600
T
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R
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t
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n
Asset class performance is represented by the stated index return.
2016
REVIEW
1 Year Total Return
5 Year Annualized Total Return
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Asset Allocation as of December 31, 2016
City of Kenai Permanent Funds
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PORTFOLIO
REVIEW
Asset Class % Assets Strategic
Benchmark Range Market Value
Fixed Income 44.7%45%$11,986,019
U.S. Fixed Income 38.8%40 35-65%$10,415,704
Cash 5.9%5 0-10 $1,570,314
Equities 55.3%55%$14,828,493
Large Cap 20.5%20 15-25%$5,504,426
Mid Cap 10.6%10 5-15 $2,835,581
Small Cap 5.4%5 0-10 $1,450,836
International 9.6%10 5-15 $2,583,625
Emerging Markets 4.5%5 0-10 $1,211,948
Real Estate 4.6%5 0-10 $1,242,077
Total $26,814,511
38.8%
5.9%20.5%
10.6%
5.4%
9.6%
4.5%4.6%
U.S. Fixed Income Cash
Large Cap Mid Cap
Small Cap International
Emerging Markets Real Estate
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Account Performance as of December 31, 2016
City of Kenai Permanent Funds
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PORTFOLIO
REVIEW
0.77
7.50
4.40
7.66
8.39
0.84
7.80
4.61
7.50
8.49
0%
4%
8%
12%
Q4 2016 1 Year 3 Year 5 Year Since Inception
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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.
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Transition From Monetary to Fiscal Policy
Markets have priced in fiscal stimulus which should benefit U.S. focused stocks.
2017
OUTLOOK
What’s going on:
The Federal Reserve is in the process of
reducing the level of support it provides
to the economy. Markets are now pricing
in support through fiscal policy in the form
of tax cuts and infrastructure spending.
Anticipated corporate tax cuts and the
recent commodities rally has increased
optimism for a resurgence in corporate
profits. Successful implementation of
expected polices is key to sustaining
recent gains.
The net result of policy expectations has been upward pressure on U.S. growth, interests rates,
and inflation. This marks a shift from the “lower for longer” regime of muted growth, low interest
rates and deflationary scares.
U.S. mid and small cap stocks will benefit from anticipated tax cuts and a focus on U.S. production
while large cap stocks face headwinds from a strong dollar. A modest overweight to U.S. equities
is warranted and can be funded with short TIPS, which look rich given current inflation forecasts.
While a cyclical bounce is possible with fiscal stimulus, longer term debt and demographic
headwinds remain. Protectionism and anti-trade policies would be a negative.
Chart: J.P. Morgan Asset Management
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Divergent Growth Expectations Favor the U.S.
Short rates in Europe and Japan remain below zero as the Fed continues to hike.
What’s going on:
While the growth outlook for the U.S has
improved, international developed
economies such as Europe and Japan are
still dealing with weak expansions and
excess capacity.
Rates in Europe and Japan are expected to
remain low for some time as central banks
there maintain accommodative policies
towards growth.
2017
OUTLOOK
Chart: J.P. Morgan Asset Management
As of year end, approximately one third of the international bond index traded at negative yields.
Rates have increased recently and policymakers have questioned the effectiveness of negative
rates, which could limit the future gains of developed market debt.
APCM expects two increases in rates from the Federal Reserve in 2017. This will likely continue to
drive short yields higher and makes holding some additional cash attractive relative to int’l bonds.
Inflation could cause the Fed to increase rates faster than expected leading to increased volatility
in both stocks and bonds. Additionally, increased cash should provide some stability given the
larger range of possible outcomes that has emerged as a result of recent political/market events.
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Debt & Demographics vs. Tech Innovation
Aging populations and high debt levels will weigh on global economic growth.
What’s going on:
On a global basis debt levels have continued to rise since the financial
crisis, largely driven be increased borrowing from governments and
corporations.
While the U.S. budget deficit had been declining for several years, it
has again started to increase and faces additional pressure from
long-term entitlement spending in the coming decade.
Long term population trends in certain countries have been
deteriorating for quite some time. Japan and Western European
nations face challenges poised by an aging population and declining
workforce combined with high levels of debt.
The U.S. is in a better position, but will still have to deal with
economic headwinds from demographics and debt in the coming
decades. Many emerging market nations do not have these
demographic issues.
Productivity increases through BRAIN (Biotechnology, Robotics,
Artificial Intelligence, Nanotechnology) are key to overcoming the
poor demographic outlook.
SECULAR
OUTLOOK
Charts: CIA World Factbook
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Market Themes Over The Next 10 Years
Modest growth as the global economy faces structural headwinds.
Near term U.S. growth expectations have
been pushed modestly higher, but the
outlook overseas is less certain.
It remains to be seen if tailwinds from
anticipated stimulus, reduced austerity,
and less regulation will be strong enough
to overcome structural debt and
demographic headwinds.
Expected returns remain subdued.
Modest returns are expected from fixed
income as rates gradually rise.
Current global equity valuations dampen
future expectations.
The U.S. dollar is expensive relative to other
major currencies. Overtime a weakening
dollar could boost long term int’l returns.
SECULAR
OUTLOOK
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Chart: J.P. Morgan Asset Management
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Annual Asset Review
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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
ANNUAL
ASSET
REVIEW
Annual Review
1 Review secular outlook
2 Update capital market
return and risk projections
3 Consider additions to or a
reduction in the currently
invested asset classes
4 ETF/Mutual Fund Review
Review w/client and affirm or
change allocation as necessary
Collaborative Process
Led by Assigned
Portfolio Managers
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Summary of 2016 Asset Allocation Review
City of Kenai Permanent Funds
The portfolio has provided an annual average
return of 8.4% since inception.
Given the current low interest rate environment
and strong stock market performance in recent
years forward looking expected returns have
been lowered.
Over ten years the portfolio is expected to
return an average of 6.1% per year. This is the
average return over the horizon with variability
based on risk exposure.
The portfolio is well diversified across the asset classes that are typically used by
institutional investors. The account has ample liquidity as all holdings are publicly traded.
Based upon research conducted during the annual asset allocation review process, APCM is
recommending the addition of a quality focused U.S. equity fund.
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ANNUAL
ASSET
REVIEW
Risk and return data from Windham Portfolio Advisor. Historical account performance is gross of fees.
Asset Class 55% Equity / Current
20.0%
10.0%
5.0%
10.0%
5.0%
5.0%
40.0%
5.0%
Return 6.1%
Risk 10.1%
Ratio 0.60
Cash
APCM's Forward
Looking
Assumptions
REITs
U.S. Fixed Income
Large Cap Equity
Mid Cap Equity
Small Cap Equity
International Equity
Emerging Markets Equity
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Wealth Simulation 10 Year Horizon
City of Kenai Permanent Funds
ANNUAL
ASSET
REVIEW
$17.39
$29.41
$49.98
$10
$25
$40
$55
55% Equity / Current
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Worst Case Expected Best Case Confidence Level
Likelihood of Achieving this Market
Value or Better Out of 5,000 Trials
55% Equity /
Current
Best Case 5%250/5,000 $49,978,770
25%1,250/5,000 $36,519,860
Expected 50%2,500/5,000 $29,411,930
75%3,750/5,000 $23,773,260
Worst Case 95%4,750/5,000 $17,387,690
55% Equity / Current 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
4.5% Annual (MM)$1.23 $1.25 $1.26 $1.27 $1.29 $1.30 $1.31 $1.33 $1.34 $1.36
Data: Windham Portfolio Advisor. Simulation method: Monte Carlo. Portfolio starting value of $26.8 MM with no contributions.
4.5% annual withdrawal based on average distribution from 2010-2016. Cash flows are at a 50% confidence level.
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Asset Allocation Considerations
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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
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Fund Purchase Recommendation
APCM recommends purchasing an additional
Exchange Traded Fund (ETF) to supplement the
existing core holdings in U.S. equities.
The FlexShares Quality Dividend Index Fund
provides exposure to large and mid size companies
which have been evaluated on indicators such as
management efficiency, profitability and cash flow.
After eight years of a rising stock market, equities
are now trading near fair value. The fund will
increase exposure to U.S. companies trading at
valuations below the broader market while also
increasing dividend yield in the portfolio.
APCM’s research indicates that exposure to quality
companies has historically improved returns
without increasing overall risk. This strategy is
supported by a long history of academic research
and is not new, but is now easily accessible in a
liquid ETF. Overtime, APCM expects the addition of
this fund to add incremental return to the existing
U.S. equity holdings.
ANNUAL
ASSET
REVIEW
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QDF Quick Facts
(As of 9/30/16)
Inception Date 12/14/2012
NAV $1.44 Billion
Expense Ratio 0.38%
#of Holdings 160
Weight of Top 10 28.21%
Provider Northern Trust
Index Northern Trust Quality
Dividend Index
Parent Index Northern Trust 1250
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Appendix
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Annual Asset Review (pg. 20-24 )Annual Review Process; Capital Market Assumptions; Smart Beta Research
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APCM’s Research and Annual Review
ANNUAL
ASSET
REVIEW
Market
Analysis
1 Secular
Outlook
What are the major global themes over the next 10 years?
Modest Global Growth
and Low Inflation
Debt & Demographics
vs. Technology
Subdued Expected
Returns
2
Capital
Market
Projections
How will markets respond to the secular outlook themes?
•Long term return expectations for stocks are subdued compared to historical returns to reflect
modest global growth, current valuations, and structural headwinds.
•Rate normalization will eventually help long term return expectations for bonds, but should be
gradual given the projection for modest global economic growth.
Due
Diligence
3 Asset Class
Review
What asset classes should I own?
Stocks Bonds Alternatives Opportunistic
U.S. (Large, Mid,Small),
Int’l (Developed, EM)
U.S.Fixed, TIPS, Int’l
Fixed
U.S. REITs,
Commodities
Global REITs,High
Yield, EM Debt, PE
4 ETF/Mutual
Fund Review
What funds should I own?
Efficiency –Can I trust it?
Tradability –Can I trade it?
Fit –Can I do better?
Implementation Strategies
Smart Beta
Rit –Rf = αi + βi(Rm –Rf) + εit
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2016 Assumptions and Efficient Frontier
Equity returns substantially similar to 2015; bond returns slightly higher to reflect
expected normalization over the next ten years.
ANNUAL
ASSET
REVIEW
APCM Annualized Return and Risk Assumptions
10 Year Horizon Return Risk
U.S.Large Cap Equities 8.5%17.1%
U.S.Mid Cap Equities 9.2%19.9%
U.S.Small Cap Equities 9.7%23.1%
Int’l Developed Equities 9.2%18.8%
Emerging Market Equities 11.5%26.8%
REITs 8.9%25.0%
U.S. Fixed Income 2.9%4.4%
U.S. TIPS 2.3%4.4%
International Bonds 1.5%3.4%
Commodities 5.5%18.3%
Cash 2.0%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
AEB
0%
2%
4%
6%
8%
10%
12%
14%
0%10%20%30%
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Risk
Efficient Frontier
Shaded color in the table above represents the direction of change from APCM’s 2015 assumptions.
Red = Lower, Green = Higher, Gray = Unchanged
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Smart Beta Provides Exposure to Factors
Recent research shows
active managers are not
generating as much alpha as
once thought.
Many active strategies can
be replicated by using a
simple rules based approach
and focusing on beta to
fundamental factors.
Pure alpha still exists,
but it is very difficult and
expensive to achieve and
sustain over time.
Traditional Strategy New Strategy
Sources of Return
Alpha
Alpha
Factor
Beta
Market
Beta
Market
Beta
High Fees
Low Fees
High Fees
Medium
Fees
Low Fees
ANNUAL
ASSET
REVIEW
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Smart Beta Fits in APCM’s Philosophy
Asset allocation is the primary source of a portfolio’s return.
However, the investment implementation strategy can add
incremental value to a portfolio over time.
Smart Beta (or factor investing) is a new
implementation strategy that has the
potential to provide cost effective
exposure to factors for increased
returns or reduced risk.
In the past these factors were mainly
available through active managers with
higher fees.
Asset
Allocation
90%
Security
Selection &
Timing
10%
Smart Beta
Implementation
Strategy
ANNUAL
ASSET
REVIEW
TRUSTED ADVISORS ▪MORE EXPERTS ▪BETTER ACCESS23
Pa
g
e
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of
15
0
QDF Methodology
QDF is a quality focused fund which selects securities via a rules-based
approach with the following three main input factors:
Management Efficiency (capital allocation)
Capital expenditures
External financing
Profitability
Return on equity
Cash Flow
Cash on balance sheet
There are constraints on individual security, sector and industry weights
which limit concentration risk.
The index is rebalanced quarterly.
ANNUAL
ASSET
REVIEW
TRUSTED ADVISORS ▪MORE EXPERTS ▪BETTER ACCESS24
Pa
g
e
29
of
15
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Page 30 of 150
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Page 32 of 150
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KENAI CITY COUNCIL – REGULAR MEETING
JANUARY 18, 2017 – 6:00 P.M.
KENAI CITY COUNCIL CHAMBERS
210 FIDALGO AVE., KENAI, AK 99611
MAYOR BRIAN GABRIEL, PRESIDING
MINUTES
A. CALL TO ORDER
A Regular Meeting of the Kenai City Council was held on January 18, 2017, in City Hall Council
Chambers, Kenai, AK. Mayor Gabriel called the meeting to order at 6:00 p.m.
1. Pledge of Allegiance
Mayor Gabriel led those assembled in the Pledge of Allegiance.
2. Roll Call
There were present:
Brian Gabriel, Mayor Robert Molloy (absent)
Henry Knackstedt Tim Navarre
Jim Glendening Glenese Pettey
Mike Boyle
A quorum was present.
Also in attendance were:
**Mackenzie Lindeman, Student Representative
Paul Ostrander, City Manager
Scott Bloom, City Attorney
Sandra Modigh, City Clerk
Jamie Heinz, Deputy City Clerk
3. Agenda Approval
Mayor Gabriel noted the following revisions to the agenda and packet:
Add to Item D. 6. & D. 7 Resolution No. 2017-02 & 2017-03
• Postponement Request
MOTION:
Council Member Knackstedt MOVED to approve the agenda with requested revisions to the
agenda and packet and requested UNANIMOUS CONSENT. Council Member Boyle
SECONDED the motion.
VOTE: There being no objections, SO ORDERED.
4. Recognition of Volunteer Services for Al Hull
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Former Parks and Recreation Commission Member, Al Hull, was presented with a plaque in
appreciation for his diligent service to the City from 2007 to 2016. It was noted that Mr. Hull also
served on the Kenai Outdoor Opportunity Location sub-committee of the Parks and Recreation
Commission.
5. Consent Agenda
MOTION:
Council Member Navarre MOVED to approve the consent agenda and requested UNANIMOUS
CONSENT. Council Member Knackstedt SECONDED the motion.
Mayor Gabriel opened the public hearing; there being no one wishing to be heard, the public
hearing 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 – None.
C. UNSCHEDULED PUBLIC COMMENTS
Marian Nelson spoke on behalf of the Art Guild noting they had met with an architect and were
continuing to survey the building and develop a plan and cost estimates to update severely
outdated and unusable space components. She also introduced two other board members that
had attended the meeting with her.
D. PUBLIC HEARINGS
1. Ordinance No. 2934-2017 – Accepting and Appropriating Funds Forfeited to the
Kenai Police Department.
MOTION:
Council Member Knackstedt MOVED to enact Ordinance No. 2934-2017 and the motion was
SECONDED by Council Member Glendening.
Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment
was closed.
VOTE:
YEA: Gabriel, Glendening, Knackstedt, Navarre, Pettey, Boyle
NAY:
**Student Representative Lindeman: YEA
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MOTION PASSED UNANIMOUSLY.
2. Ordinance No. 2935-2017 – 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.
MOTION:
Council Member Knackstedt MOVED to adopt Ordinance No. 2935-2017 and the motion was
SECONDED by Council Member Navarre.
The Library Director was thanked for her effort in obtaining grants.
Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment
was closed.
VOTE:
YEA: Gabriel, Glendening, Knackstedt, Navarre, Pettey, Boyle
NAY:
**Student Representative Lindeman: YEA
MOTION PASSED UNANIMOUSLY.
3. Ordinance No. 2936-2017 – Increasing (Decreasing) Estimated Revenues and
Appropriation in the Personal Use Fishery Fund and Authorizing Budgetary
Transfers in that Fund for Remaining FY2017 Projected Expenditures.
MOTION:
Council Member Knackstedt MOVED to enact Ordinance No. 2936-2017 and the motion was
SECONDED by Council Member Glendening.
Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment
was closed.
VOTE:
YEA: Gabriel, Glendening, Knackstedt, Navarre, Pettey, Boyle
NAY:
**Student Representative Lindeman: YEA
MOTION PASSED UNANIMOUSLY.
4. Ordinance No. 2937-2017 – Increasing Estimated Revenues and Appropriations
by $59,000 in the Airport Fund for the Purchase of Approximately 80 Acres of Real
Property Described as SW1/4 Excepting Therefrom those Portions as Per W/D 51
@ 152 and as Per Superior Court Order under Case No 3KN-86-1406, CI, Section
29, T6N, R11W, to be Retained by the City for Public Use and Reserved for Airport
Purposes.
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MOTION:
Council Member Knackstedt MOVED to enact Ordinance No. 2937-2017 and the motion was
SECONDED by Council Member Glendening.
Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment
was closed.
It was noted that airport funds were being utilized to purchase the property, for less than assessed
value, to the north and west of the airport for future possible uses; good planning.
VOTE:
YEA: Gabriel, Glendening, Knackstedt, Navarre, Pettey, Boyle
NAY:
**Student Representative Lindeman: YEA
MOTION PASSED UNANIMOUSLY.
5. Ordinance No. 2938-2017 – Increasing Estimated Revenues and Appropriations
by $20,600 in the Water & Sewer Fund for the Purchase of Approximately 2.27
Acres of Real Property Described as Lots 1 and 2, Block B, Beaver Creek Alaska
Subdivision Amended, Section 36, T6N, R11W, to be Retained by the City for
Public Use.
MOTION:
Council Member Knackstedt MOVED to enact Ordinance No. 2938-2017 and the motion was
SECONDED by Council Member Navarre.
Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment
was closed.
VOTE:
YEA: Gabriel, Glendening, Knackstedt, Navarre, Pettey, Boyle
NAY:
**Student Representative Lindeman: YEA
MOTION PASSED UNANIMOUSLY.
6. Resolution No. 2017-02 – Approving City Council Policy 2017-01, Establishing
Procedures for the Use and Management of City Issued Mobile Devices to City
Council Members.
MOTION:
Council Member Navarre MOVED to adopt Resolution No. 2017-02 and the motion was
SECONDED by Council Member Knackstedt.
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Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment
was closed.
It was noted that though requested, there wasn’t favor for postponement due to the desire to get
the project completed.
The Clerk clarified that the policy had been developed mirroring the Kenai Peninsula Borough’s
policy, had been reviewed by Finance, the IT Manager, and the City Attorney, and could be
amended at any time.
It was suggested postponement should be honored due to Council Member Molloy’s interest and
tenure.
MOTION TO POSTPONE:
Council Member Boyle MOVED to postpone Resolution No. 2017-02 to the next meeting.
The motion died for lack of a second.
VOTE ON MAIN MOTION:
YEA: Gabriel, Glendening, Knackstedt, Navarre, Pettey
NAY: Boyle
**Student Representative Lindeman: YEA
MOTION PASSED.
7. Resolution No. 2017-03 – Establishing a Sub-Committee of Council for the
Purpose of Improving Efficiency in the Supervision of the City Attorney, City Clerk
and City Manager and Approving Council Policy 2017-02 Establishing Procedures
and Responsibilities of the Sub-Committee.
MOTION:
Council Member Navarre MOVED to adopt Resolution No. 2017-03 and the motion was
SECONDED by Council Member Knackstedt.
Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment
was closed.
MOTION TO POSTPONE:
Council Member Navarre MOVED to postpone Resolution No. 2017-03 to the next meeting and
the motion was SECONDED by Council Member Knackstedt.
It was clarified postponement wasn’t objected since the matter was not time sensitive.
VOTE TO POSTPONE:
YEA: Gabriel, Glendening, Knackstedt, Navarre, Pettey, Boyle
NAY:
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**Student Representative Lindeman: YEA
MOTION PASSED UNANIMOUSLY.
8. Resolution No. 2017-04 – Authorizing the Sale of Lot 3A, Block 1, Spur
Subdivision No. 1, 1983 Addition, City-Owned Airport Property Located Outside
the Airport Reserve, to Dean You, or His Assignee.
MOTION:
Council Member Knackstedt MOVED to adopt Resolution No. 2017-04 and the motion was
SECONDED by Council Member Glendening.
Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment
was closed.
Council Member Boyle noted he was supportive of the project but had a philosophy against selling
City property in prime location; clarified that a no vote from him was not a vote against the project.
VOTE:
YEA: Gabriel, Glendening, Knackstedt, Navarre, Pettey
NAY: Boyle
**Student Representative Lindeman: YEA
MOTION PASSED.
E. MINUTES
1.*Work Session of October 19, 2016
Meeting minutes approved by the consent agenda.
2.*Regular Meeting of January 4, 2017
Meeting minutes approved by the consent agenda.
F. UNFINISHED BUSINESS
1. Ordinance No. 2932-2016 – Donating and Declaring no Longer Needed for a Public
Purpose a Certain Parcel Described as Lot 17, Block 5, Original Townsite of Kenai,
(KPB Parcel No. 047-071-21) to the Kenaitze Indian Tribe.
MOTION TO POSTPONE:
Council Member Knackstedt MOVED to postpone Ordinance No. 2932-2016 to the February 15,
2017 meeting and the motion was SECONDED by Council Member Navarre.
It was clarified that staff needed additional time preparing the plats.
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VOTE TO POSTPONE:
YEA: Gabriel, Glendening, Knackstedt, Navarre, Pettey, Boyle
NAY:
**Student Representative Lindeman: 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 – Mayoral Nomination and Council Confirmation to Appoint Shauna
Thornton and Charlie Stevens to the Parks & Recreation Commission.
MOTION:
Council Member Navarre MOVED to confirm the Mayor’s nomination to appoint Shauna Thornton
and Charlie Stevens to the Parks and Recreation Commission and requested UNANIMOUS
CONSENT. The motion was SECONDED by Council Member Glendening.
The Mayor was thanked for making the appointments. It was noted that there had been only four
members on the Commission and the addition of two will help obtain the quorum they needed.
The candidates were thanked for putting their names forward.
VOTE: There being no objection; SO ORDERED.
H. COMMISSION/COMMITTEE REPORTS
1. Council on Aging – No report; next meeting February 9.
2. Airport Commission – It was reported that at their January 12 meeting the Commission
elected a Chair and a Vice Chair, discussed the Airport Master Plan, and approved
goals and objectives; next meeting February 9.
3. Harbor Commission – No report; next meeting February 6.
4. Parks and Recreation Commission – It was reported that there wasn’t a quorum so no
action was taken, but cemetery fees were reviewed; next meeting February 2.
5. Planning and Zoning Commission – It was reported that at their January 11 meeting,
the Commission elected a Chair and a Vice Chair and held public hearings on an after-
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the-fact Conditional Use Permit Amendment and an after-the-fact Variance; next
meeting January 25.
6. Beautification Committee – No report; next meeting April 11.
7. Mini-Grant Steering Committee – Next meeting January 19.
I. REPORT OF THE MAYOR
Mayor Gabriel reported on the following:
• Thanked Vice Mayor Navarre for filling in for him while he was on
vacation;
• Thanked members Knackstedt and Glendening for hosting Coffee
with the Mayor;
• Coached the Kenai team in the Alumni game; Kenai won; good
game;
• January 12 was the first varsity hockey game at the Kenai Multi-
purpose Facility rink; wished the facility had been available when
he coached noting the atmosphere was great with warm
temperature and clear glass; thanked Eubank and Parks and
Recreation for their work to make it happen;
• Had been asked to speak at the Kenai Peninsula Builder’s
Association; planned to take the City Manager along as guest;
• Planned to attend the Medi-Center’s grand opening;
• Would be hosting Coffee with the Mayor on February 4 with
Councilor Glendening;
• Noted his new gavel was commissioned to be made by his wife as
Mayor Porter’s was made for her and she took it with her.
J. ADMINISTRATION REPORTS
1. City Manager – P. Ostrander reported on the following:
• Took Oath of Office; surprised by the number in attendance;
• Led his first department head meeting;
• Attended the Industry Outlook Forum;
• Attended the Council on Aging meeting on January 12;
• Met with all department heads; met with staff of two departments
taking advantage of staff meetings;
• Toured Kenaitze Campus; noted 300+ people were employed;
• Looking at where to lower expenditures for the remainder of the
year; looking to match revenues;
• Noted there had been some unintended consequences of the
passage of the SB91 crime bill pointing out revisions would be
made in the near future;
• Noted the Alaska Board of Fisheries was meeting February 23
through March 8 and would email Council with comments and
suggestions; anticipated a future Council agenda item as
comments were due February 9;
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• The Comprehensive Plan was being bound and would be
distributed at the next Council meeting;
• Finance Director developing a Fund Balance Policy identifying a
range for the Fund Balance;
• Advised the Local Boundary Commission had accepted a petition
for Nikiski to become a home rule city; noted the boundary map;
would review further for impacts to the City.
2. City Attorney – no report.
3. City Clerk – S. Modigh noted upcoming meetings and pointed out the new display
artwork from Kaleidoscope School 5th graders.
K. ADDITIONAL PUBLIC COMMENT
1. Citizens Comments (Public comment limited to five (5) minutes per speaker)
None.
2. Council Comments
Student Representative Lindeman reported the school had been broken into and vandalized over
break; held a canned food drive in which the senior class won by providing the most canned food
and were awarded a dessert buffet for winning; gave an update on current sports events.
Councilor Knackstedt welcomed the new City Manager noting he looked forward to working with
him; co-hosted Coffee with the Mayor; attended the Chamber of Commerce luncheon where
Mayor Navarre presented the State of the Borough.
Vice Mayor Navarre expressed gratitude to the Art Guild for their work noting he hoped they could
find solutions to the building’s issues; thanked Mayor Gabriel for allowing to fill in and swear in
the new City Manager; attended the Industry Outlook Forum; attended the varsity hockey game
at their new rink, noting it was a great opportunity, asked that the fees be looked at to see if the
City could help out the booster club.
Council Member Boyle also welcomed the new City Manager noting he was looking forward to
working with him; thanked Al Hull for his service to the City; traveled through the Kenai Municipal
Airport recently and complimented the airport staff on the facility.
Council Member Glendening noted “Everything Bagels,” was opening their business in Kenai;
attended the Industry Outlook Forum; noted the positive outreach by Kenaitze Indian Tribe
regarding wellness; noted the Alaska Gas Line recap in the paper pointing out it could be
happening if the product could be marketed; attended part of the varsity hockey game noting he
was impressed with the team and the rink.
Council Member Pettey welcomed the new City Manager, wished him the best and noted she was
looking forward to working with him; thanked the Art Guild for their report and looked forward to
hearing of grant opportunities for them.
L. EXECUTIVE SESSION – None.
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M. PENDING ITEMS – None.
N. ADJOURNMENT
There being no further business before the Council, the meeting was adjourned at 7:20 p.m.
I certify the above represents accurate minutes of the Kenai City Council meeting of January 18,
2017.
_____________________________
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.
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MEMO:
TO: Mayor and City Council Members
FROM: Sandra Modigh, City Clerk
DATE: January 26, 2017
SUBJECT: Airport Commission Appointment
The Airport Commission currently has a vacancy, which is an at-large seat, pursuant to
KMC 21.20.030 (e).
Glenda Feeken has submitted an application expressing interest in filling the vacancy
by being reappointed to a three-year term expiring December 2020.
Pursuant to KMC 1.90.010, a committee/commission vacancy shall be filled by
nomination of the Mayor and confirmation by the Council.
Your consideration is appreciated.
210 Fidalgo Avenue, Kenai, Alaska 99611-7794
Telephone: 907-283-7535 / FAX: 907-283-3014
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COUNCIL ON AGING MEETING
DECEMBER 8, 2016 – 4:30 P.M.
KENAI SENIOR CENTER
CHAIR VELDA GELLER, PRESIDING
MEETING SUMMARY
1. CALL TO ORDER
Chair Geller called the meeting to order at 4:30 p.m. Roll was confirmed as follows:
Members Present: Chair V. Geller, Vice Chair M. Milewski, L. Nelson, J. Hollier, V.
Hallmark, F. Walters, B. Modigh, A. Weeks
Members Absent: B. Osborn
Staff/Council Liaison Present: Senior Center Staff R. Craig, Council Liaison B. Gabriel
A quorum was present.
2. AGENDA APPROV AL
Councilor Milewski MOVED to approve the agenda and Council Member Weeks SECONDED
the motion. There being no objections; SO ORDERED.
3. APPROVAL OF MEETING SUMMARY
a. September 8, 2016
Councilor Hollier MOVED to approve the September 8, 2016 meeting summary; Council
Member Osborn SECONDED the motion. There being no objections; SO ORDERED.
4. PERSONS SCHEDULED TO BE HEARD
a. Rick Koch, Kenai City Manager
It was noted the manager was unable to attend the meeting.
5. UNFINISHED BUSINESS
a. Service Animals vs. Emotional Animals at the Senior Center
It was noted that the City Attorney would be providing a recommendation.
There was question whether there could be paperwork required for emotional support animals.
6. NEW BUSINESS
a. Possible Meal Increase
Page 115 of 150
Director R. Craig shared concerns about an increase in the cost of food and an increase in the
number of Seniors served. It was noted that $6.00 had been the suggested donation for the
past five years.
The Council was asked to consider possibly increasing the fee; more statistics would be
provided at a future meeting.
b. Kasilof Meal Run / Transportation / Shopping
The need for City budget cuts were explained. It was noted that the FY18 Budget was being
prepared and there needed to be some thought on saving money and bringing in more
donations.
It was suggested that the trip to Kasilof be reduced from two times per week to one. It was also
suggested that an article be run in the newsletter reminding seniors that there would be no extra
transportation stops unless staff was notified in advance and only if time permitted.
c. Visit Chari’s Place
It was decided that a trip should be done in the daylight.
7. REPORTS
a. Senior Center Director – No report.
b. Council on Aging Chair – No report.
c. City Council Liaison – Mayor Gabriel reported on the following:
• City Council cancelled the second meetings in November and December;
• Attended and enjoyed the Thanksgiving Dinner sponsored by Hilcorp;
• Approved the Capital Improvement Projects, noted there wasn’t a lot of hope
for funding help from the state;
• Extended the contract for the Visitor’s Center;
• Administration gave a Dip Net Report on December 1;
• New City Manager, Paul Ostrander, starts January 9;
• The City received a good audit report;
• Seeking re-appropriation of grant funding for the Bluff Stabilization Project.
8. NEXT MEETING ATTENDANCE NOTIFICATION – January 12, 2017
9. QUESTIONS & COMMENTS
10. PERSONS NOT SCHEDULED TO BE HEARD – None
11. INFORMATION
There was inquiry into the status of the Senior Center improvements.
Page 116 of 150
12. ADJOURNMENT
There being no further business before the Council, the meeting was adjourned at 6:00 p.m.
Meeting summary prepared and submitted by:
_____________________________________
Jamie Heinz, CMC, Deputy Clerk
Page 117 of 150
COUNCIL ON AGING MEETING
JANUARY 12, 2017 – 4:30 P.M.
KENAI SENIOR CENTER
CHAIR VELDA GELLER, PRESIDING
MEETING SUMMARY
1. CALL TO ORDER
Chair Geller called the meeting to order at 4:30 p.m. Roll was confirmed as follows:
Members Present: Chair V. Geller, Vice Chair A. Weeks, M. Milewski, L. Nelson, J.
Hollier, V. Hallmark, B. Osborn , B. Modigh, R. Williams
Members Absent:
Staff/Council Liaison Present: Senior Center Staff R. Craig, Council Liaison B. Gabriel
A quorum was present.
2. AGENDA APPROVAL
The agenda was approved with the addition of a New Business item entitled FY18 Goals and
Objectives.
3. ELECTION OF CHAIR AND VICE CHAIR
City Clerk, S. Modigh administered the Oaths of Office to Councilors Joanna Hollier and Roy
Williams.
Councilor Osborn MOVED to nominate Roy Williams as Chair.
Councilor Milewski MOVED to nominate Velda Geller as Chair.
Velda Geller was re-elected as Chair.
Councilor Hollier MOVED to nominate Roy Williams as Vice Chair.
Councilor Milewski MOVED to nominate Al Weeks as Vice Chair.
Al Weeks was re-elected as Vice Chari.
4. APPROVAL OF MEETING SUMMARY – None.
5. PERSONS SCHEDULED TO BE HEARD
New City Manager, Paul Ostrander was introduced.
6. UNFINISHED BUSINESS
a. Service Animals vs. Emotional Animals at the Senior Center
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It was noted that the Senior Center Director would draft a policy to bring to the Council for
consideration.
b. Set a Date to Visit Chari’s Place
It was decided the Council would visit Chari’s Place on Tuesday, January 24, 2017 at 2:30 p.m..
c. Meal Increase
Senior Center Director, R. Craig provided the following information:
• The suggested donation for meals had not been increased in five years;
• The actual cost of each meal as of January 2016 was $14.50;
• The current suggested donation , for people 60+ is $6;
• The Kenai Senior Center charges $12.00 per person for anyone under the age of
60;
• Prices of other senior centers in the area ranged from $5 to $7.
It was suggested that half of actual cost be the suggested donation amount. Where and how
meal supplies were purchased and the percentage of clients that gave donations for meals were
discussed.
6. NEW BUSINESS
a. FY18 Goals and Objectives
Director R. Craig led discussion regarding FY17 Goals and Objectives that had been achieved
which included trees planted in front of the Senior Center; heated front drive under the awning;
ADA approved ramp at the back door; shelves in the storage shed. Those items that had not
been achieved in FY17 were moved forward to FY18 goals.
FY18 Goals and Objectives were listed as follows:
• Purchase a generator in an effort to provide a safe place for disabled persons
during a disaster;
• Mounted projector in the dining room;
• Construction on the leaky solarium in the dining room;
• Sound System / Hearing Wire;
• New computers for computer lab;
• Community Campaign “Buy a Meal for a Senior.”
7. REPORTS
a. Senior Center Director – R. Craig reported on the following:
• Second Quarter FY17 report from My Senior Center program;
• Processes for seniors to apply for services and benefits.
b. Council on Aging Chair – Provided a reminder of a Celebration of Life for Frank
Arbelovsky and a retirement party for Gretchen Alexander.
c. City Council Liaison – No report.
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8. NEXT MEETING ATTENDANCE NOTIFICATION – February 9, 2017
9. QUESTIONS & COMMENTS
10. PERSONS NOT SCHEDULED TO BE HEARD – None
11. INFORMATION
12. ADJOURNMENT
There being no further business before the Council, the meeting was adjourned at 5:45 p.m.
Meeting summary prepared and submitted by:
_____________________________________
Jamie Heinz, CMC, Deputy Clerk
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CITY OF KENAI
PLANNING & ZONING COMMISSION
CITY COUNCIL CHAMBERS
JANUARY 11, 2017- 7:00 P.M.
VICE CHAIR DIANE FIKES, PRESIDING
MINUTES
1. CALL TO ORDER:
Vice Chair Fikes called the meeting to order at 7:00 p.m.
a. Pledge of Allegiance
Vice Chair Fikes led those assembled in the Pledge of Allegiance.
b. Election of Chair and Vice Chair
MOTION:
Commissioner Springer MOVED to nominate Jeff Twait as Chair and Commissioner Fikes
SECONDED the motion. There were no objections; SO ORDERED.
MOTION:
Commissioner Springer MOVED to nominate Ken Peterson as Vice Chair and Commissioner
Fikes SECONDED the motion. There were no objections; SO ORDERED.
c. Roll Call
Commissioners present: R. Springer, D. Fikes, J. Halstead, G. Greenberg, V. Askin
Staff/Council Liaison present: City Planner M. Kelley, Planning Assistant W. Anderson, Deputy
Clerk J. Heinz, and Council Liaison J. Glendening.
A quorum was present.
d. Agenda Approval
MOTION:
Commissioner Askin MOVED to approve the agenda and Commissioner Halstead SECONDED
the motion. There were no objections; SO ORDERED.
e. Consent Agenda
MOTION:
Commissioner Springer MOVED to approve the consent agenda; Commissioner Greenberg
Page 121 of 150
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.
f. *Excused Absences – Commission Chair Twait, Commissioner Peterson
2. *APPROVAL OF MINUTES: December 14, 2016
Minutes were approved by the consent agenda.
3. SCHEDULED PUBLIC COMMENT: (10 Minutes) None scheduled.
4. PERSONS PRESENT NOT SCHEDULED: (3 Minutes) None.
5. CONSIDERATION OF PLATS: None.
6. PUBLIC HEARINGS:
a. PZ16-39 – Application for an After the Fact Amendment of PZ05-35 (PZ03-32), a
Conditional Use Permit for the Extraction of Natural Resources below the water
table and the operation of a Sand and Gravel Pit for the property located at 2369
Beaver Loop Road; further described as Tract A1, Beaver Loop Acres Addition No.
1. Application submitted by James Doyle on behalf of Mary Doyle, 2243 Beaver
Loop Road., Kenai, AK 99611.
MOTION:
Commissioner Springer MOVED to approve Resolution No. PZ16-39 and Commissioner Askin
SECONDED the motion.
City Planner Kelley reviewed his staff report, which indicated staff found the proposal satisfied the
review criteria and recommended approval with the following conditions:
• Prior to commencement of extraction of natural resources or any reclamation
activities, the applicant shall obtain all necessary State and Federal Permits.
• Prior to commencement of extraction of natural resources or any reclamation
activities, the applicant shall repair or replace any damaged fencing located on the
rear of the site.
• Prior to commencement of extraction of natural resources or any reclamation
activities, the applicant shall submit a revised site plan which labels the area behind
Area 2 as Area 2A and ensures that the further subsurface extraction is limited to
within 10 feet of the rear property line.
• Excavation below the water table shall only be allowed in those locations marked
Area 1, Area 2, Area 2A, and Area 3.
• There shall be no further excavation below the water table in the Area located up to
Page 122 of 150
ten feet from the rear property line behind Area 2. The final working face shall be
back sloped to a minimum angle of 2:1.
• The excavation may not penetrate the subsurface clay/silt layer located
approximately thirty feet below the original ground surface.
• If fill material is placed in the pits, it must be fill material originally from this
approximately 52.5-acre site and it must not contain any “hazardous substances,” or
“industrial waste,” “mining waste,” “solid waste,” or “other waste,” as defined in Alaska
State Statutes.
• Applicant shall file an annual report for the Conditional Use Permit as set forth in
Kenai Municipal Code 14.20.150(f).
• Applicant shall employ the use of dust control measures to ensure the material site
and the driveway fronting onto Beaver Loop Road remain dust free. Dust control shall
include the daily use of a water truck and placement of calcium chloride on the
driveway. A water truck shall also be used to control dust from the working face of
the gravel pit.
It was noted that the public hearing was improperly noticed and that public testimony would be
taken, however the public hearing would be continued to the January 25 meeting to allow for
proper noticing.
It was further noted that the Commission would be holding their questions until after the public
hearing was closed on January 25.
Vice Chair Fikes opened the public hearing.
Jim Doyle thanked staff and the Commission for the time and effort put into drafting and
considering the Conditional Use Permit Amendment and Variance noting approval would alleviate
burden on his elderly sister-in-law.
Chris Garcia suggested that the City of Kenai sell a portion of its property to the Doyle’s to alleviate
the variance issue.
Don Moffits provided documentation on well testing and water analyses on nearby wells after the
water table was breached. Also noted a portion of the property that had been excavated had
been converted to a duck pond and has been working well for 20 years.
MOTION:
Commissioner Springer MOVED to continue the public hearing to January 25, 2017 and
Commissioner Askin SECONDED the motion.
VOTE:
YEA: Peterson, Springer, Fikes, Halstead, Greenberg, Askin
NAY:
MOTION PASSED UNANIMOUSLY.
b. PZ16-40 – Application for an After the Fact Variance to Setbacks for the Extraction
Page 123 of 150
of Natural Resources below the water table within 10 (ten) feet of the Rear Property
Line, where 150 (one hundred and fifty) feet is required for the property located at
2369 Beaver Loop Road; and further described as Tract A1, Beaver Loop Acres
Addition No. 1. Application submitted by James Doyle on behalf of Mary Doyle,
2243 Beaver Loop Road., Kenai, AK 99611.
City Planner Kelley reviewed his staff report, which indicated staff found the proposal satisfied the
review criteria and recommended approval with the following conditions:
• Prior to commencement of extraction of natural resources or any reclamation
activities, the applicant shall obtain all necessary State and Federal Permits.
• Prior to commencement of extraction of natural resources or any reclamation
activities, the applicant shall repair or replace any damaged fencing located on the
rear of the site.
• Prior to commencement of extraction of natural resources or any reclamation
activities, the applicant shall submit a revised site plan which labels the area behind
Area 2 as Area 2A and ensures that the further subsurface extraction is limited to
within 10 feet of the rear property line.
• Excavation below the water table shall only be allowed in those locations marked
Area 1, Area 2, Area 2A, and Area 3.
• There shall be no further excavation below the water table in the Area located up to
ten feet from the rear property line behind Area 2. The final working face shall be
back sloped to a minimum angle of 2:1.
• The excavation may not penetrate the subsurface clay/silt layer located
approximately thirty feet below the original ground surface.
• If fill material is placed in the pits, it must be fill material originally from this
approximately 52.5-acre site and it must not contain any “hazardous substances,” or
“industrial waste,” “mining waste,” “solid waste,” or “other waste,” as defined in Alaska
State Statutes.
• Applicant shall file an annual report for the Conditional Use Permit as set forth in
Kenai Municipal Code 14.20.150(f).
• Applicant shall employ the use of dust control measures to ensure the material site
and the driveway fronting onto Beaver Loop Road remain dust free. Dust control shall
include the daily use of a water truck and placement of calcium chloride on the
driveway. A water truck shall also be used to control dust from the working face of
the gravel pit.
MOTION:
Commissioner Springer MOVED to approve Resolution No. PZ16-40 and Commissioner Fikes
SECONDED the motion.
It was noted that the public hearing was improperly noticed and that public testimony would be
taken, however the public hearing would be continued to the January 25 meeting to allow for
proper noticing.
It was further noted that the Commission would be holding their questions until after the public
hearing was closed on January 25.
Page 124 of 150
Vice Chair Fikes opened the public hearing; there being no one wishing to testify, the public
hearing was continue.
MOTION:
Commissioner Springer MOVED to continue the public hearing to January 25, 2017 and
Commissioner Halstead SECONDED the motion.
VOTE:
YEA: Peterson, Springer, Fikes, Halstead, Greenberg, Askin
NAY:
MOTION PASSED UNANIMOUSLY.
7. UNFINISHED BUSINESS: None.
8. NEW BUSINESS: None.
9. PENDING ITEMS: None.
10. REPORTS:
a. City Council – Council Member Glendening reviewed the action agenda from the
December 7 Council Meeting which was provided in the packet pointing out unanimous
approval for a funding increase for the waste water treatment plan; approved code
changes regarding use of title and escrow companies; authorized lease extension for
Kenai Fine Arts Guild; set work session for January 24 to discuss an offer to purchase a
portion of Lawton Acres.
b. Borough Planning – Council Member Glendening reported on actions from the January 9
Planning Commission meeting, noting the following:
• Requested plat amendments;
• Cited findings to deny a fully enclosed area below flood elevation in flood hazard
area;
• Rescinded denial of a Right-of-Way and associated easements as proper notice was
not given;
• Approved vacation of a Right-of-Way;
• Approved three preliminary plats.
c. Administration – City Planner M. Kelley noted the Comprehensive Plan was unanimously
approved by the Borough Assembly; bound copies to be distributed.
11. PERSONS PRESENT NOT SCHEDULED: None.
12. INFORMATIONAL ITEMS: None.
13. NEXT MEETING ATTENDANCE NOTIFICATION: January 25, 2017
Page 125 of 150
14. COMMISSION COMMENTS & QUESTIONS: None.
15. ADJOURNMENT:
There being no further business before the Commission, the meeting was adjourned at 8:06 p.m.
Minutes prepared and submitted by:
_____________________________
Jamie Heinz, CMC
Deputy City Clerk
Page 126 of 150
MINI-GRANT STEERING COMMISSION
CLERK'S CONFERENCE ROOM
CITY HALL
THURSDAY, JANUARY 19, 2017 – 3:30 P.M.
CHAIR BRIAN GABRIEL, PRESIDING
MEETING SUMMARY
1. CALL TO ORDER & ROLL CALL
Mayor Gabriel called the meeting to order at 3:41 p.m. Roll was confirmed as follows:
Members present: Chair B. Gabriel, J. Beech, T. Wisniewski, M. Bernard
Members absent: B. Randle
A quorum was present.
2. AGENDA APPROVAL
MOTION:
Member Beech MOVED to approve the agenda and Member Bernard SECONDED the motion.
There were no objections. SO ORDERED.
3. APPROVAL OF MEETING SUMMARY – None.
4. PERSONS SCHEDULED TO BE HEARD – None.
5. UNFINISHED BUSINESS – None.
6. NEW BUSINESS
a. Review of Mini-Grant Applications for Award
• Kenai Peninsula Continuum of Care – Project Homeless Connect
There was concern that though a good mission, the event was outside of the city limits. It was
noted that consideration was given on a case-by-case basis.
It was suggested that the Committee request summary data after the event.
MOTION:
Member Wisniewski MOVED to approve the funding request of Kenai Peninsula Continuum of
Care and Member Bernard SECONDED the motion. There were no objections. SO
ORDERED.
7. ANNOUNCEMENTS – None.
8. ADJOURNMENT
There being no further business before the Committee, the meeting was adjourned at 4:00 p.m.
Page 127 of 150
Meeting summary prepared and submitted by:
_____________________________________
Jamie Heinz, CMC, Deputy City Clerk
Page 128 of 150
FINANCE DEPARTMENT
QUARTERLY INVESTMENT REPORT
December 2016
TO: Mayor Gabriel
Council Members
Thru: Paul Ostrander, City Manager
FROM: Terry Eubank, Finance Director
DATE: January 26, 2017
SUBJECT: Quarter ending December 31, 2016 Investment Report
City of Kenai Investment Portfolio
At December 31, 2016 the City had investments with a market value of $21,211,220 that is up
from $20,176,603 at September 30, 2016. Third calendar quarter sales tax and annual property
tax receipts are responsible for the increase in the portfolios size. The City’s portfolio is yielding
0.84% that is up from 0.62% at September 30, 2016. The Federal Reserve raised the Federal
Funds Rate in December with as many as three additional increase being projected for calendar
year 2017. Market interest rates continue at historic lows but appear to be on an upward trend.
City’s Investment Portfolio
US Agency Securities $ 5,000,255
AML Investment Pool 2,114,540
Wells Fargo Money Market 1,787,850
FDIC Insured Certificates of Deposit 11,134,513
Bank Balance 1,174,062
Total $ 21,211,220
Permanent Fund Investments
Fourth quarter 2016 saw a rally in the equity markets and the second Federal Funds Rate change
in 8 years. Short term interest rate increases are projected to increase more in 2017 depending
upon the performance of the nation’s economy. Equities propelled the portfolio to a return of
7.50% for 2016. Since inception the portfolio has returned 8.39%. As of December 31, 2016 the
portfolio value was $26,814,631, comprised of $23,690,184 (88.35%) Airport Land Sale
Permanent Fund, $2,996,033 (11.17%) General Land Sale Permanent Fund monies, and
$128,413 (0.48%) Kenai Community Foundation holdings.
With the Airport Land Sale Permanent Fund’s year ending balance of $23,690,184, the allowable
transfer to airport operations for FY2017 will be $1,175,414. The FY2017 budgeted amount was
$1,184,356 meaning the actual will be $8,942 less than projected.
The General Land Sale Permanent Fund’s year ending balance of $2,996,033 is a increase of
$208,664 from the December 31, 2015 balance. The 2016 increase is a result of the no FY16
withdrawal and 2016 earnings. The allowable transfer to the General Fund for operations is
limited to the lesser of 5% of the funds year ending balance, $149,802 or the years actual earning
$208,664, the transfer to the General Fund for operations in FY2017 will be $149,802. The
Page 129 of 150
FY2017 budgeted amount for this transfer was $148,009. The administration will be introducing
and ordinance at the February 15th meeting to authorize the additional $1,793 to be transferred.
Page 130 of 150
CITY OF KENAI
INVESTMENT PORTFOLIO SUMMARY
December 31, 2016
Fair Market Current
Value Yield
Cash & Cash Equivalents
Wells Fargo Checking1,174,062$ 0.00%
Wells Fargo Secured Money Market1,787,850 0.15%
FDIC Insured Certificates of Deposit11,134,513 1.03%
Alaska Municipal League Investment Pool2,114,540 0.22%
Total Cash & Cash Equivalents 16,210,965 0.75%
Average
Yield
Government Securities
Maturities Less than 1 Year - 0.00%
Maturities 1 to 2 Years2,994,145 1.18%
Maturities Greater than 2 Years2,006,110 1.40%
Total Government Securities 5,000,255 1.27%
Total Portfolio 21,211,220$ 0.87%
Investment Portfolio - Purchase Price21,262,318$
Investment Portfolio - Fair Value 06/30/1621,309,506
Fair Value Adjustment - 06/30/1647,188
Fair Value Adjustment thru -12/31/16(98,286)
Cummulative Change in Fair Value(51,098)$
December 31, 2016
$0
$4,000,000
$8,000,000
$12,000,000
$16,000,000
Liquidity 20%
Minimum
Maturity 1 - 2 yearsMaturity over 2 years
30% Maximum
Portfolio Liquidity
Policy Minimum/Maximum Actual
Page 131 of 150
CITY OF KENAI
PERMANENT FUND
INVESTMENT PORTFOLIO SUMMARY
December 31, 2016
Current orCurrent
AveragePortfolioTargetPortfolio
31-Mar-1630-Jun-1630-Sep-1631-Dec-16YieldWeightWeightMaximum
Fixed Income
Cash & Cash Equivalents1,419,774 1,642,134 1,597,365 1,531,191 0.15%5.71%
Total Cash & Cash Equivalents1,419,774 1,642,134 1,597,365 1,531,191
Government & Corporate Securities
Government Securities5,183,512 4,966,107 5,324,096 5,381,797 1.00%20.07%
Corporate Securities4,905,070 5,169,918 5,111,978 5,040,425 1.69%18.80%
Total Government & Corporate Securities10,088,582 10,136,025 10,436,074 10,422,222 1.29%38.87%
Total Fixed Income 11,508,356 11,778,159 12,033,439 11,953,413 1.25%44.58%45.00%65.00%
Equities
Domestic Equities
Standard & Poor's 500 Index 5,210,718 5,084,866 5,352,519 5,537,151 20.66%20.00%25.00%
Standard & Poor's 600 Small-Cap Index1,333,955 1,226,016 1,309,783 1,450,836 5.41%5.00%10.00%
Standard & Poor's 400 Mid-Cap Index 2,667,515 2,502,283 2,653,277 2,835,581 10.57%10.00%15.00%
Total Domestic Equities 9,212,188 8,813,165 9,315,579 9,823,568 36.64%35.00%50.00%
International Equities
Vanguard Europe Pacific ETF 3,088,763 2,822,816 2,656,370 2,583,625 9.64%10.00%15.00%
Vanguard Emerging Market ETF 1,328,719 1,194,532 1,302,166 1,211,948 4.52%5.00%10.00%
Total International Equities 4,417,482 4,017,348 3,958,536 3,795,573 14.15%15.00%25.00%
Real Estate
Vanguard REIT ETF1,409,600 1,356,651 1,305,437 1,242,077 4.63%5.00%10.00%
Total Real Estate 1,409,600 1,356,651 1,305,437 1,242,077 4.63%5.00%10.00%
Total Equities 15,039,270 14,187,164 14,579,552 14,861,218
Total Portfolio26,547,626 25,965,323 26,612,991 26,814,631 7.50%100.00%100.00%150.00%
Total ALSPF Balance 23,634,440 22,939,838 23,512,038 23,690,184
Total GLSPF Balance 2,846,626 2,901,139 2,973,504 2,996,033
Total Kenai Community Foundation 66,560 124,345 127,447 128,413
Fair Market Value
0.00%
25.00%
50.00%
75.00%
Fixed IncomeStandard & Poor's
500 Index
Standard & Poor's
600 Small-Cap
Index
Standard & Poor's
400 Mid-Cap Index
Vanguard Europe
Pacific ETF
Vanguard Emerging
Market ETF
Vanguard REIT ETF
Portfolio Composition
Current Portfolio Weight Target Portfolio Weight Maximum Portfolio Weight
Current Month Current Quarter Year to Date Last 1 Year Inception to Date
Portfolio 1.31%0.77%7.50%7.50%8.39%
Benchmark 1.40%0.84%7.80%7.80%8.49%
-5.00%
0.00%
5.00%
10.00%
15.00%Portfolio Performance
Page 132 of 150
$15,000,000
$17,000,000
$19,000,000
$21,000,000
$23,000,000
$25,000,000
$27,000,000
Jun‐12Sep‐12Dec‐12Mar‐13Jun‐13Sep‐13Dec‐13Mar‐14Jun‐14Sep‐14Dec‐14Mar‐15Jun‐15Sep‐15Dec‐15Mar‐16Jun‐16Sep‐16Dec‐16
Total ALSPF Balance
Transfer of $1,195,313
to AirportOperations.
Transfer of $1,147,714
to AirportOperations.
$2,300,000
$2,400,000
$2,500,000
$2,600,000
$2,700,000
$2,800,000
$2,900,000
$3,000,000
$3,100,000
Jun‐12Sep‐12Dec‐12Mar‐13Jun‐13Sep‐13Dec‐13Mar‐14Jun‐14Sep‐14Dec‐14Mar‐15Jun‐15Sep‐15Dec‐15Mar‐16Jun‐16Sep‐16Dec‐16
Total GLSPF Balance
Transfer of $1,011,485
Transfer of $1,075,123
to AirportOperations.
Transfer of $135,668 to
General FundOperations.
Transfer of $1,158,473
to AirportOperations.
Transfer of $154,172 to
General FundOperations.
Transfer of $153,493 to
General FundOperations.
$‐
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000 Total Kenai Community Foundation Balance
$50,000 investment.
$5,000
investment.
Initial investmentof
$66,143.
Page 133 of 150
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Page 134 of 150
Alaska Permanent Capital Management Co.
PORTFOLIO SUMMARY AND TARGET
CITY OF KENAI PERMANENT FUNDS
December 31, 2016
%
Asset Class & TargetMarket ValueAssetsRange
FIXED INCOME (45%)
US Fixed Income (40.0%)10,415,70438.835% to 65%
Cash (5.0%)1,570,3145.90% to 10%
Subtotal: 11,986,01844.7
EQUITY (55%)
US Large Cap (20.0%)5,504,42620.5 15% to 25%
US Mid Cap (10.0%)2,835,58110.6 5% to 15%
US Small Cap (5.0%)1,450,8365.4 0% to 10%
Developed International Equity (10.0%)2,583,6259.6 5% to 15%
Emerging Markets (5.0%)1,211,9474.5 0% to 10%
Real Estate (5.0%)1,242,0764.6 0% to 10%
Subtotal: 14,828,49255.3
TOTAL PORTFOLIO 26,814,511100
Page 135 of 150
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