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HomeMy WebLinkAbout2017-05-03 Council PacketKENAI CITY COUNCIL – REGULAR MEETING MAY 3, 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. 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. Bob McIntosh – Lawton Acres. 2. Jill Schaefer – Introduction of the City of Kenai Representative on the Kenai Peninsula Borough Assembly. C. UNSCHEDULED PUBLIC COMMENTS (Public comment limited to three (3) minutes per speaker; thirty (30) minutes aggregated) D. PUBLIC HEARINGS 1. Ordinance No. 2945-2017 – Repealing and Re-Enacting Kenai Municipal Code Chapter 8.20-Fireworks Control, to Allow for the Limited Sale and Use of Certain Fireworks in the City. [Clerk’s Note: This Ordinance was postponed to the May 3, 2017 meeting for an additional public hearing to be held. A motion to enact is on the floor.] ......................................................................... Pg. 5 2. Ordinance No. 2947-2017 – Accepting and Appropriating Supplemental Nutrition, Transportation, and Support Services Grant Funding in the Senior Citizen Fund, for Fiscal Year 2017. ........................................................ Pg. 22 3. Ordinance No. 2948-2017 – Accepting and Appropriating Funds Received from Kenai Senior Connection, Inc. for the Purchase of a Copier for the Kenai Senior Center. ....................................................................................... Pg. 25 4. Ordinance No. 2949-2017 – Accepting and Appropriating Funds Forfeited to the Kenai Police Department. ................................................................ Pg. 28 5. Resolution No. 2017-19 – Approving a Memorandum of Understanding Among the Chugach National Forest 11-MU-11100400-121, the Kenai National Wildlife Refuge, the Alaska Department of Natural Resources, the City of Soldotna, Kenai Peninsula Borough, the City of Kenai and the Kenai Watershed Forum in Support of the Stream Watch Program. ................ Pg. 31 E. MINUTES 1. *Regular Meeting of April 19, 2017 .......................................................... Pg. 34 2. *Special Meeting of April 25, 2017 ........................................................... Pg. 43 F. UNFINISHED BUSINESS – None. G. NEW BUSINESS 1. *Action/Approval – Bills to be Ratified. ................................................ Pg. 46 2. *Action/Approval – Liquor License Transfer of Ownership from Don Jose’s LLC, to the Mad Moose Bar & Grill, LLC. ............................................... Pg. 47 3. *Ordinance No. 2950-2017 – Accepting and Appropriating a Federal Grant from the Institute of Museum and Library Services (IMLS) Passed Through the Alaska State Library for the Purpose of Funding a 10 Week Student Internship Position at the Kenai Community Library. .............................................. Pg. 50 4. *Ordinance No. 2951-2017 – Amending Kenai Municipal Code Title 23 – Personnel Regulations, to Clarify the Performance Evaluation Rating Categories for Consistency with the City’s Performance Evaluation Form and Practices. ............................................................................................... Pg. 53 5. *Ordinance No. 2952-2017 – Accepting and Appropriating Additional Funds from the Federal Aviation Administration for the Small Taxiways and Aircraft Tie-Down Rehabilitation 2015-2016 Project. ......................................... Pg. 57 6. *Ordinance No. 2953-2017 – Accepting and Appropriating Additional Funds from the Federal Aviation Administration for the 2016 Improved Airport Drainage Project. .................................................................................. Pg. 60 7. *Ordinance No. 2954-2017 – Amending Kenai Municipal Code Chapter 10.30 – Record Retention, to Update and Clarify the Form, Operations, and Procedures Regarding the Public Records Management Schedule and Record Retention Policy, and Making other Housekeeping Changes. ................ Pg. 63 8. *Ordinance No. 2955-2017 – Accepting and Appropriating a Grant from the Southern Region Emergency Medical Services (EMS) Council to Provide Staff Training. ................................................................................................ Pg. 67 9. *Ordinance No. 2956-2017 – Amending Kenai Municipal Code 13.30.080 – Operating a Vehicle in s Prohibited Area, and Associated Appendix II, to Allow for Limited Operation and Maintenance of the Existing Air Strip on a Portion of Tract B, Dragseth Subdivision 2016 Addition, According to the Official Plat Thereof, Filed Under Plat Number 2016-22, and a Portion of Government Lots 9-15 Inclusive, Section 7, Township 5 North, Range 11 West, and a Portion of the SE ¼ SE ¼ NE ¼, Section 7, Township 5 North, Range 11 West, Seward Meridian all Recorded in the Kenai Recording District, Third Judicial District, State of Alaska. ..................................................................................... Pg. 70 10. *Ordinance No. 2957-2017 – Authorizing the Sale of Tract A, Dragseth Subdivision 2016 Addition, According to the Official Plat Thereof, under Plat No. 2016-22, Filed in the Kenai Recording District, Third Judicial District, State of Alaska, Including all Improvements Thereon, to PRL Logistics Inc., and Providing the Sale Proceeds to the State of Alaska for Reimbursement into Grant No. 15-DC-078 for Use by the City to Continue Enhancing Access and other Related Improvements to the South Beach. .................................. Pg. 75 11. Action/Approval – Approving a Special Use Permit to United Parcel Service, Co., for Aircraft Parking.........................................................................Pg. 88 12. Action/Approval – Approving a Special Use Permit to Empire Airlines, Inc. for Aircraft Parking. ...............................................................................Pg. 98 H. COMMISSION/COMMITTEE REPORTS 1. Council on Aging ................................................................................ Pg. 108 2. Airport Commission 3. Harbor Commission 4. Parks and Recreation Commission 5. Planning and Zoning Commission ...................................................... Pg. 110 6. Beautification Committee 7. Mini-Grant Steering Committee I. REPORT OF THE MAYOR J. ADMINISTRATION REPORTS 1. City Manager ...................................................................................... Pg. 117 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 – Review and Discussion of the City Clerk’s Evaluation and Negotiation of the City Clerk’s Employment Agreement, matters which may be a Subject that Tends to Prejudice the Reputation and Character of the City Clerk and of which the Immediate Knowledge would Clearly have an Adverse Effect Upon the Finances of the City [AS 44.62.310(C)(1)(2)]. 1. Action/Approval – Approving an Employment Agreement between the City of Kenai and City Clerk Sandra Modigh. [Clerk’s Note: This action will take place in open session.] M. PENDING ITEMS – None. N. ADJOURNMENT **************************************************************************************************** INFORMATION ITEMS 1. Purchase Orders between $2,500 and $15,000 for Council Review. 2. Cook Inlet RCAC Board of Directors Annual Meeting Update from John Williams, the Kenai Representative. 3. Correspondence from the Cook Inlet Regional Citizens Advisory Council. 4. Correspondence from Kenai Peninsula Borough Mayor Navarre Advising of Commissioner Glendening’s Resignation from the Borough Planning Commission. 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. Sponsored by: Councilmember Knackstedt CITY OF KENAI ORDINANCE NO. 2945-2017 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, REPEALING AND RE-ENACTING KENAI MUNICIPAL CODE CHAPTER 8.20-FIREWORKS CONTROL, TO ALLOW FOR THE LIMITED SALE, AND USE OF CERTAIN FIREWORKS IN THE CITY. WHEREAS, Kenai Municipal Code Chapter 8.20-Fireworks Control, allows for the use of fireworks for a 48 hour period from December 31 to January 1 each year along with certain public displays, but prohibits the sale of fireworks; and, WHEREAS, fireworks used in the City currently must be purchased outside the City with permit fees and sales tax going to other taxing jurisdictions; and, WHEREAS, allowing for the regulated and controlled sale of fireworks in the City will allow the City to receive permit fees and sales tax for the purchase of fireworks; and, WHEREAS, limiting the duration of sales to one month and excluding the sale of certain types of fireworks is intended to reduce the use of fireworks when the use is prohibited and limit potential fire danger as well as use by minors; and, WHEREAS, it is in the City's best interest to benefit from the sales of fireworks when the use occurs regardless of whether such sales occur within the City. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: Section 1. Form: That this is a code ordinance. Section 2. Repeal and re-enactment of Chapter 8.20 of the Kenai Municipal Code: That Kenai Municipal Code, Section 8.20 -Fireworks Control, is hereby repealed and re-enacted in its entirety as follows: CHAPTER 8.20 FIREWORKS CONTROL [8.20.010 FIREWORKS CONTROL. THIS CHAPTER SHALL BE KNOWN AS THE FIREWORKS CONTROL ORDINANCE OF THE CITY OF KENAI. 8.20.020 FIREWORKS PROHIBITION-EXCEPTIONS. New Text Underlined; [DELETED TEXT BRACKETED] Page 5 of 146 Ordinance No. 2945-2017 Page 2of9 EXCEPT AS SPECIFICALLY PROVIDED BELOW, THE USE OF ALL CLASSES OF FIREWORKS ARE FORBIDDEN WITHIN THE CITY OF KENAI. (A) PERSONAL AND PRIVATE USE. ON THE DAYS OF DECEMBER 31ST AND JANUARY lST ONLY, A FORTY-EIGHT (48) HOUR PERIOD, A PERSON OVER THE AGE OF EIGHTEEN (18) MAY USE SALABLE FIREWORKS WITHIN THE CITY FOR PERSONAL AND PRIVATE USE ON REAL PROPERTY OWNED BY THE PERSON, OR OTHER PRIVATE PROPERTY WITH THE CONSENT OF THE PROPERTY OWNER. (B) PUBLIC USE. AS SPECIFICALLY PROVIDED BELOW, THE CITY, ASSOCIATIONS AND OTHER ORGANIZATIONS, OR GROUPS HOLDING A CURRENT AND VALID PERMIT ISSUED BY THE CITY AND ANY OTHER STATE OR FEDERAL AGENCY WITH JURISDICTION, MAY PROVIDE A PUBLIC DISPLAY OF FIREWORKS. (C) OFFICIAL USE. EMPLOYEES OR CONTRACTORS OF THE CITY MAY USE FIREWORKS IN THE INTEREST OF PUBLIC SAFETY, ANIMAL CONTROL AND ANIMAL HAZING AT THE KENAI MUNICIPAL AIRPORT. 8.20.030 USE PERMITS. (A) THE CITY MAY ISSUE A PYROTECHNIC PERMIT TO THE CITY, ASSOCIATION OR OTHER ORGANIZATION, OR GROUPS FOR PUBLIC FIREWORKS DISPLAYS, PROVIDED THAT THE DISPLAY IS TO BE CONDUCTED BY A STATE LICENSED PYROTECHNIC OPERATOR WITHIN THIRTY (30) DAYS FROM THE DATE OF AN APPROVED APPLICATION SHOWING THE FOLLOWING: (1) DATES AND LOCATION OF THE PROPOSED DISPLAYS ; AND (2) THAT ALL APPROPRIATE OR REQUIRED STATE LICENSES OR CERTIFICATES HAVE BEEN PROCURED; AND (3) THAT A POLICY OR CERTIFIED TRUE COPY OF A POLICY OF PUBLIC LIABILITY INSURANCE AND PRODUCTS LIABILITY INSURANCE COVERAGE PROVIDED BY THE APPLICANT OR HIS OR HER EMPLOYER HAS BEEN FILED WITH THE CITY, BOTH ACCIDENT AND OCCURRENCE IN THE AMOUNT OF AT LEAST ONE MILLION DOLLARS ($1,000,000.00) FOR BODILY INJURY AND DEATH AND AT LEAST FIVE HUNDRED THOUSAND DOLLARS ($500,000.00) FOR PROPERTY DAMAGE; AND (4) THAT THE CITY OF KENAI FIRE DEPARTMENT HAS BEEN NOTIFIED AND INVITED TO BE IN ATTENDANCE FOR FIRE CONTROL PURPOSES; AND (5) THAT THE OFFICE OF THE STATE FIRE MARSHAL HAS ISSUED THE NECESSARY LICENSES OR CERTIFICATES, IF APPLICABLE; AND (6) THE NAME OF THE APPLICANT AND THE NAME AND ADDRESS OF THE STATE LICENSED PYROTECHNIC OPERATOR OR COMPANY WHO WILL BE CONDUCTING THE DISPLAY. New Text Underlined; [DELETED TEXT BRACKETED] Page 6 of 146 Ordinance No. 2945-2017 Page 3of9 (B) IN THE EVENT THAT AN OBJECTION IS RECEIVED FROM THE STATE FIRE MARSHAL OR THE CITY OF KENAI FIRE DEPARTMENT, THE CITY MAY DENY THE APPLICATION FOR CAUSE SHOWN. 8.20.040 SALE OF FIREWORKS FORBIDDEN. THE SALE OR OFFERING FOR SALE OF FIREWORKS IS FORBIDDEN WITHIN THE CITY. 8.20.050 FIREWORKS-MISCELLANEOUS PROVISIONS. (A) IT IS UNLAWFUL FOR ANY PERSON UNDER THE INFLUENCE OF ANY ALCOHOL, MARIJUANA OR ILLEGAL DRUGS TO DISCHARGE FIREWORKS. (B) IT IS UNLAWFUL FOR ANY PERSON TO NEGLIGENTLY OR UNLAWFULLY DISCHARGE FIREWORKS IN ANY MANNER THAT COULD REASONABLY CAUSE HARM TO LIFE OR PROPERTY. (C) THE CITY FIRE CHIEF OR FIRE MARSHAL MAY PROHIBIT OR RESTRICT THE USE OF ALL FIREWORKS AT ANY TIME DUE TO INCREASED FIRE DANGER OR ANY OTHER REASONS WHICH MAY CREATE A SIGNIFICANT INCREASED RISK TO PUBLIC HEALTH AND SAFETY. APPROPRIATE TIMELY PUBLIC NOTICE OF ANY PROHIBITION OR RESTRICTION WILL BE PROVIDED. 8.20.060 DEFINITIONS. FOR THE PURPOSES OF THIS CHAPTER, THE FOLLOWING DEFINITIONS SHALL APPLY: (A) "FIREWORKS" MEANS FIREWORKS AS DEFINED BY ALASKA STATUTE 18.72.100 AS IT NOW EXISTS OR MAY FROM TIME TO TIME BE AMENDED OR CHANGED BY THE LEGISLATURE. (B) "DISPLAY" MEANS THE DETONATION OF FIREWORKS AT ANY TIME. (C) PUBLIC DISPLAY" MEANS TO USE, IGNITE, DETONATE OR EXPLODE SALABLE OR NON-SALABLE FIREWORKS ON PUBLIC PROPERTY. (D) "SALABLE FIREWORKS" MEANS SALABLE FIREWORKS AS DEFINED BY ALASKA STATUTE 18.72.100 AS IT NOW EXISTS OR MAY FROM TIME TO TIME BE AMENDED OR CHANGED BY THE LEGISLATURE. (E) "STATE LICENSED PYROTECHNIC OPERATOR" MEANS AN INDIVIDUAL WHO HAS BEEN LICENSED BY THE ALASKA DEPARTMENT OF PUBLIC SAFETY, FIRE AND LIFE SAFETY DIVISION. 8.20.070 PENALTIES. UPON CONVICTION, EACH VIOLATION OF THIS CHAPTER SHALL BE PUNISHABLE AS PROVIDED IN SECTION 13.05.010. CITATIONS FOR VIOLATIONS OF THIS CHAPTER MAY BE ISSUED BY EITHER THE KENAI POLICE DEPARTMENT OR THE KENAI FIRE DEPARTMENT.] New Text Underlined; [DELETED TEXT BRACKETED] Page 7 of 146 Ordinance No. 2945-2017 Page 4of9 8.20.005 Authority and Purpose. The City Kenai adopts this Chapter to exercise the authority granted bv AS 18.72.060 to regulate more restrictively the offering for sale, exposure for sale, sale, use, or explosion of fireworks. 8.20.007 Mandatory Review. The City Council shall conduct a public review of the provisions of this Chapter by July 1, 2019. The purpose of the public review is to determine whether or not the City desires to continue allowing the sale of fireworks within the City, or if any changes to the ordinances are warranted. 8.20.010 Definitions. In this Chapter, unless the context otherwise requires: (a) "Dangerous fireworks" means all fireworks not otherwise defined as saleable fireworks. (b) "Saleable fireworks" and "Fireworks" means fireworks defined as such in AS 18.72.100 as amended from time to time. (c) "Personal and private use" means to use, ignite, detonate, or explode saleable fireworks on private property with the permission of the property owner. (d) "Bottle rocket" and "Sky rocket" means a fireworks that consist of a fireworks consisting of cylindrical case filled or partially filled with combustible material and fastened to a stick. (e) "Display" means the detonation of fireworks at any time. (f) "Public display" means to use, ignite, detonate, or explode dangerous fireworks or to use, ignite, detonate or explode saleable fireworks on public property. (g) "State licensed pyrotechnic operator" means an individual who has been licensed by the Alaska Department of Public Safety, Fire and Life Safety Division. 8.20.020 Fireworks Prohibition-Exceptions. Except as specifically provided below, the use of all classes of fireworks are forbidden within the City of Kenai. (a) Personal and Private Use. On the days of December 1st through January 1st only, a one month period, a person over the age of 18 may use salable fireworks within the City for personal and private use on real property owned by the person, other private property with the consent of the property owner, or on City owned tidelands below mean high water. (b) Public Use. As specifically provided below, the City, associations and other organizations, or groups holding a current and valid permit issued by the City and any other State or Federal agency with jurisdiction, may provide a public display of fireworks. 8.20.030 Public Use Permits. (a) The City may issue a pyrotechnic permit to the Citv. association or other organization, or groups for public fireworks displays, provided that the display is to be conducted by a State licensed pyrotechnic operator within 30 days from the date of an approved application showing the following: (1) Dates and location of the proposed displays; and (2) That all appropriate or required State licenses or certificates have been procured; and New Text Underlined; [DELETED TEXT BRACKETED] Page 8 of 146 Ordinance No. 2945-2017 Page 5of9 (3) That a policy or certified true copy of a policy of public liability insurance and products liability insurance coverage provided by the applicant or his or her employer has been filed with the City, both accident and occurrence in the amount of at least One Million Dollars ($1,000,000) for bodily injury and death and at least Five Hundred Thousand Dollars ($500,000) for property damage; and (4) That the City of Kenai Fire Department has been notified and invited to be in attendance for fire control purposes; and (5) That the office of the State Fire Marshal has issued the necessary licenses or certificates, if applicable; and (6) The name of the applicant and the name and address of the State licensed pyrotechnic operator or company who will be conducting the display. (b) In the event that an objection is received from the State Fire Marshal or the City of Kenai Fire Department, the City may deny the application for cause shown. 8.20.040 Sale of Fireworks. Except for the sale of bottle rockets and sky rockets, the retail sale of saleable fireworks in compliance with all federal, state and local laws and regulations and the provisions of this Chapter is permitted. All other retail sales of fireworks within the City of Kenai are prohibited. The sale of bottle rockets and sky rockets is specifically prohibited. 8.20.050 Permit to Sell Saleable Fireworks. (a) Permit Required. No person may sell, expose for sale, or offer for sale any saleable fireworks in the City except in accordance with a permit issued to the person under this section. A permit is effective from the fourth Friday in November until December 31 of the year issued. (b) Permit Fee. The permittee shall pay an annual fee of $5,000 for a permit. The permit fee payments are nonrefundable upon the issuance of the permit. If a permit is not issued, the permit fee shall be returned to the applicant. (c) Permit Application. The applicant or the applicant's authorized representative must deliver to the City Clerk the application for a permit and payment for such permit with guaranteed funds no later than 12:00 noon on the last business day in August before the term for which the permit is to be issued. Late applications will not be considered. The application shall be on a form approved by the City Clerk, shall be signed by the applicant or the applicant's authorized representative, and shall include: (1) The name and address of the applicant, and the name under which the applicant will do business under the permit; (2) If the applicant is a business entity, the name and address of the adult officer, employee or agent of the applicant who will supervise operations of the applicant under the permit; (3) The location at which the applicant will do business under the permit; (4) Proof that the applicant holds a valid, current permit to sell fireworks issued by the State of Alaska; and (5) A tax compliance certificate, signed by the appropriate Kenai Peninsula Borough authority, or, if the applicant had not previously done business in the Kenai Peninsula Borough, proof of opening a sales tax account with the appropriate Kenai Peninsula Borough authority. (d) Action on Application. If the City Clerk finds that a permit application is complete and timely, is accompanied by the annual permit fee provided with guaranteed funds, and meets all of the requirements in this Chapter for the issuance of a permit, the Clerk New Text Underlined; [DELETED TEXT BRACKETED] Page 9 of 146 Ordinance No. 2945-2017 Page 6of9 shall notify the applicant that a permit will be issued upon timely submittal of proof of insurance meeting the requirements of this Chapter. Once the City has received proof of insurance meeting the requirements of this Chapter the Clerk shall issue a permit to the applicant authorizing the sale of fireworks within the City. (e) By September 15 of each applicable calendar year, an applicant for a permit who has been notified by the Clerk that a permit will be issued upon timely submittal of proof of insurance meeting the requirements of this Chapter, must submit insurance meeting or exceeding the following requirements: (1) Two Million Dollars ($2,000,000) single limit policy for personal liability, bodily injury, and property damage per occurrence. (2) The City of Kenai shall be named as an additional insured on all policies. (3) The Permittee is required to maintain the policies in full force and effect at all times any activity is conducted by the Permittee in the City that is in furtherance of activities allowed by the permit. (4) Insurance must be by a company/ corporation currently rated "A-" or better by A.M. Best. (fl Permit Renewal. A permittee may renew a permit for the next calendar year by delivering personally to the City Clerk the $5,000 annual permit fee in guaranteed funds, proof a tax compliance certificate, signed by the appropriate Kenai Peninsula Borough authority, and submittal of insurance coverage meeting the requirements of this Chapter on or before 12:00 noon on the last business day in August. (g) Permit Transfer. A permittee may not transfer a permit, or any right to sell fireworks under the permit, without the prior approval of Council. The Council shall approve a permit transfer only after finding that the transferee is qualified to hold the permit under this Chapter. 8.20.060 Regulation of Permittee Operations. (a) When a person is initially issued a permit under this Chapter, the person shall not open for business until the Fire Chief or designee has inspected the premises where the person will sell fireworks, and determined that the premises complies with the requirements of this Chapter and applicable state laws and regulations. (b) A permittee may sell fireworks only at a single location for each permit, and shall give the City Clerk 90 days' notice of any change in that location. After a change in location, a permittee may not reopen until the premises have been inspected by the Fire Chief or designee. Two or more permits may be used at the same location. (c) Within 60 days after any change in the officer, employee or agent of the applicant designated to supervise operations under a permit, the permittee shall notify the City Clerk in writing of the name and address of the successor. (d) The Fire Chief or designee may inspect the premises where a permittee sells fireworks at any time to determine whether the permittee is complying with applicable legal requirements, including without limitation those pertaining to: ( 1) Display of City and state permits to sell fireworks; (2) All applicable state and federal regulations; (3) Types of fireworks permitted to be offered for sale; (4) Display of required safety literature; (5) Fire suppression equipment; (6) Properly marked and accessible exits; and (7) No smoking signs. (e) Restrictions on Sale and Use. New Text Underline d ; [D ELETED TEXT BRACKETED] Page 10 of 146 Ordinance No. 2945-2017 Page 7of9 ( ll If at any time the State of Alaska Division of Forestry declares that the fire danger is extreme, the Fire Chief or designee may restrict the sale or use of any and all fireworks. (2) At any time the Fire Chief or designee may restrict the sale or use of any or all fireworks upon finding that the restriction is necessary for public safety due to weather or fire hazard conditions. (f) In operating under a permit, the permittee shall comply with the following requirements: ( 1) The premises where fireworks are sold shall be located in a central, limited and general commercial or light and heavy industrial district, as shown on the Land Use District Map of the City of Kenai, and comply with the requirements for signs and parking specified in KMC Chapter 14. (2) The permittee shall comply with all safety requirements for the sale of fireworks in federal and state statutes and regulations, and as established by the State Fire Marshal, and shall distribute safety literature to each fireworks purchaser. (3) The permittee shall not sell fireworks to a person who is under the age of 18 years. (4) The permittee shall be required to post any safety notices or legal notices as required by the Kenai Fire Chief or City Manager which may include notices from the State of Alaska, Division of Forestry, the Kenai Peninsula Borough and the City of Soldotna. (5) The permittee shall not sell fireworks to any person who appears to be intoxicated and/or impaired. (g) Where the Fire Chief or designee finds that a permittee is operating in violation of any applicable legal requirement, the following actions can occur: (1) In the case of a violation of this Chapter, the Fire Chief, Fire Marshall, Police Chief or designee may issue a notice to correct and/ or a citation to the permittee. The citation penalty for the selling of fireworks in violation of this Chapter is $300. (2) The Fire Chief, Fire Marshall, Police Chief or designee may order the closure of the premises, in the case of a life safety violation as determined by the Fire Chief, where the permittee sells fireworks and the discontinuance of all fireworks sales by the permittee until the violation is corrected. 8.20.070 Controlled Use. (a) It is unlawful for any person to discharge or explode any fireworks, except as otherwise provided in this Chapter, within any City park or upon any public property or rights-of-way except as provided below. (bl Subject to any limitations in other sections of this Chapter, a person may use saleable fireworks within the City for personal and private use on real property owned by the person, or on real property owned by another with prior consent of the property owner, and on City property below mean high water. (c) The sale of fireworks to any person under the age of 18 is prohibited. It is unlawful for persons under 18 years of age to purchase fireworks. Purchasers of fireworks must show proof of age upon request by seller. (d) The sale of the following types of saleable fireworks is prohibited: bottle rockets and sky rockets. New Text Underlined; [DELETED TEXT BRACKETED] Page 11 of 146 Ordinance No. 2945-2017 Page 8of9 (el It is unlawful for any person under the influence of drugs, marijuana or alcohol to discharge fireworks. The penalty for violation of this subsection may result in seizure of the fireworks and/or a fine of $300.00. (f) It is unlawful for any person to negligently or unlawfully discharge fireworks in a manner that could reasonably cause harm to life and property. Any such use, ignition, detonation or explosion of fireworks may result in seizure of the fireworks and/ or a fine of $300. (g) The City Fire Chief or Fire Marshal may prohibit or restrict the use of all fireworks at any time due to increased fire danger or any other reasons which may create a significant increased risk to public health and safety. Appropriate timely public notice of any prohibition or restriction will be provided. 8.20.080 Exempt Sales and Uses. Nothing in this Chapter shall be construed to prohibit: (a) The sale of any kind of fireworks which are to be shipped directly from the State in accordance with regulations of the United States Department of Transportation; (bl The use of fireworks by railroads or other transportation agencies for signal purposes of illumination; (c) The sale or use of blank cartridges for a show or theater; (d) The use of fireworks for signal or ceremonial purposes in athletic events or parades; (e) Use bv public safety personnel or City emplovees for public safety purposes including animal control and hazing at the Kenai Airport; (f) Use by military organizations. (g) Licensed or permitted uses in industrial activities, such as seismic work. oil exploration, mining, aviation or commercial fishing. (h) Use in emergency situations for signal or communication purposes. 8.20.090 Penalties for Violations. Any person violating any of the provisions of this Chapter is guilty of an infraction and upon conviction thereof shall be fined $300. 8.20.100 Storage of Dangerous Fireworks. (a) All storage of dangerous fireworks shall be in compliance with all local, state and federal regulations. (bl Storage shall be subject to inspection by the Kenai Fire Chief or designee. Section 3. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application. Section 4. Effective Date: That pursuant to KMC l.15.070(f), this ordinance shall take effect 30 days after adoption. New Text Underlined; [DELETED TEXT BRACKETED] Page 12 of 146 Ordinance No. 2945-2017 Page 9of9 ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 3rd day of May, 2017. ATTEST: Sandra Modigh, City Clerk BRIAN GABRIEL SR., MAYOR Introduced: April 5, 2017 Postponed: April 19, 201 7 Enacted: May 3, 2017 Effective: June 3, 2017 New Text Underlined; [DELETED TEXT BRACKETED] Page 13 of 146 "Vt1/tlje with a Pas; City with a Future" 210 Fidalgo Avenue, Kenai, Alaska 99611-7794 Telephone: 907-283-7535 I FAX: 907-283-3014 www.kenai.city MEMORANDUM TO: FROM: DATE: SUBJECT: Mayor Gabriel and Council Members Council Member Knackstedt H< March 30, 2017 Ordinance No. 2945-2017, Fireworks Control This memo provides a general background and sectional analysis of Ordinance No. 2945- 2017. General Background: The Ordinance is proposed primarily to increase revenue for the City of Kenai. In 2015 , Chapter 8.20-Fireworks Control, was amended to allow the use of fireworks in the City for a 48 hour period over the New Year's Holiday. Because sales of fireworks are not allowed in the City, fireworks are purchased for use in Kenai in other taxing jurisdictions, Houston, Alaska being the closest. In discussions with administration in Houston and the City of North Pole, it was determined that sales tax revenue and pem1it fees from vendors was significant enough to propose this Ordinance. Informal discussions with one of the primary vendors in the State indicate there would be adequate interest from potential vendors . The proposed Ordinance is primarily modeled on ordinances from the Cities of Houston and North Pole. Sectional Analysis: 8.20.005 Authority and Purpose. This new section of code states the purpose of the Chapter is to regulate fireworks sales and use more restrictively than the State , as allowed by State statute. 8.20.007 Mandatory Review. This new section of code is included to ensure that the City Council will publicly review fireworks sales after two years of experience to determine whether fireworks sales should continue or if other changes are needed. Page 14 of 146 Mayor Gabriel and Council Members March30,2017 Page2of3 8.20.010 Definitions. The primary change in this section from existing code is a definition of "bottle rocket" and "sky rocket" which vendors are prohibited from selling as described later in the Chapter. 8.20.020 Fireworks Prohibition-Exceptions. The primary amendment in this section is in subsection (a) which allows the use of fireworks on City property below mean high water. This is intended to allow the public an attractive and relatively safe environment to use fireworks. Subsection ( c) in the existing code is removed and addressed in 8.20.080 subsection (e). 8.20.030 Public Use Permits. This section of code addresses public displays such as what occurs at 'Christmas Comes to Kenai' and has no material changes from the current code. 8.20.040 Sale of Fireworks. This new section of code allows for the regulated sale of fireworks in the City, except for bottle rockets and sky rockets. Sky rocket sales are prohibited because of concerns with starting wildfires, or structure fires. Bottle rockets tend to be misused by youths, and can be dangerous. 8.20.050 Permit to Sell Saleable Fireworks. This new section of code limits sales of fireworks to the month of December each year. Discussions with at least one existing vendor outside Kenai indicates that this is more than a sufficient amount of time to allow for sales. This sections provides that every vendor must have a pem1it which costs $5,000 each year. This permit fee compares to $3,000 in North Pole and $5,000 in Houston. Permit applications and payments will be due by noon, on the last day of business in August. This is intended to provide sufficient time for vendors and the City to prepare for the activity. An application form will need to be developed. Applicants will have to provide proof of borough tax compliance and state licensure among other required information. In order to receive a permit, a vendor must provide proof of insurance naming the City as an additional insured with $2,000,000 single limit policies for personal liability, bodily injury and property damage per occurrence. This insurance requirement is the same as Houston's, North Pole does not have an insurance requirement, and the state requires a policy for a state license in the amount of$200,000 for bodily injury or death, and $50,000 for property damage. Page 15 of 146 Mayor Gabriel and Council Members March 30 , 2017 Page 3 of3 8.20.060 Regulation of Permittee Operations. This proposed section provides for inspection of retail sales locations by the Fire Chief or designee, limits locations to one per permit, and regulates changes in ownership and location, as well as other requirements of operation. This section allows the Fire Chief or designee to prohibit all sales if necessary for public safety due to weather conditions and fire danger. Retail locations are limited to General, Limited and Central Commercial districts and Light and Heavy Industrial. Sales to minors and intoxicated persons are also prohibited in this section. A $300 fine is provided for violations of sales provisions, and allows for the City to close vendors until violations are corrected. 8.20.070 Controlled Use. This section regulates the use of fireworks to private property and City property below mean high water. It reiterates that sales to minors are prohibited, that sales of bottle rockets and sky rockets are prohibited, the use of fireworks while under the influence of drugs or alcohol is prohibited along with negligent or unlawful use. Violations of this section of code also carries a $300 citation and allow for seizure of fireworks. This section further allows the Fire Chief to prohibit or restrict the use of fireworks at any time due to weather or other public safety concerns with appropriate timely notice. 8.20.080 Exempt Sales and Uses. This section provides various exceptions for use and sale of fireworks. For example emergency signals and communication, use by the City for official purposes (such as animal hazing at the airport), military operations and certain industrial uses. 8.20.090 Penalties for Violations. This section provides a general $300 fine for violations of the Chapter. 8.20.100 Storage of Dangerous Fireworks This section requires storage in compliance with all local, state and federal laws and allows for inspection of fireworks storage by the Fire Chief or designee. Your consideration is appreciated. Page 16 of 146 April 12, 2017 To Whom This May Concern: "Vill~e with a Past, City with a Future" 210 Fidalgo Avenue, Kenai, Alaska 99611-7794 Telephone: 907-283-7535 /Fax: 907-283-3014 www.kenai.city The City of Kenai will have a public hearing on Wednesday, April 191 2017 to consider the attached Ordinance which would allow for the regulated sale of certain fireworks inside the City. You are provided this notice as a courtesy because you are registered with the State of Alaska for the retail sale of fireworks. The City Council member sponsoring this Ordinance is interested in industry perspective. You are welcome to attend the public hearing in Kenai, or provide written comments on the Ordinance to the City Clerk, Sandra Modigh, at smodigb@kenai.cJty. The meeting will begin at 6pm and written comments received by 12:00 pm on the day of the meeting will be provide to the Council for their consideration. Sincerely, CITY OF KENAI Scott M. Bloom City Attorney SMB/jvh Enclosure -----~ Page 17 of 146 'tftfl~ «1/t/t, a PaJ't, Ct'tf «1/t/t, a Fa.tu.r-e" 210 Fidalgo Ave, Kenai, Alaska 99611-7794 Telephone: (907) 283-7535 I Fax: (907) 283-3014 www. kenai.city APPROVED BY COUNCIL MEMORANDUM Date: Y · \q· lf ~ TO: Mayor Brian Gabriel and Kenai City Council THROUGH: FROM: DATE: Council Member Glendening Apri l 19, 2017 SUBJECT: Ordinance No. 2945-2017 Amendment Memorandum It is my intent to amend Ordinance 2945-2017 to expand the timeframe fireworks are legal to use in the City from a 48-hour period to one month, and to extend the timeframe in which they may be sold . Because the notice of the Ordinance to the public did not include expanding the timeframe ---for-use~if-thismotion-passes, I would request an additional public hearing at the next council meeting before voting on the main motion to adopt the Ordinance. I move to make the following amendments: • Amend the title to insert the words ", and use" after "sale" as follows AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI , ALASKA, REPEALING AND RE-ENACTING KENAI MUNICIPAL CODE CHAPTER 8.20-FIREWORKS CONTROL, TO ALLOW FOR THE LIMITED SALE, AND USE OF CERTAIN FIREWORKS IN THE CITY. • Amend subsection (a) of KMC 8.20.020 Fireworks Prohibition-Exceptions, on page 28 of the Packet by changing "December 31st" to "December 1st", deleting the word "and" and replacing it with "through", and deleting "48 hour" and replace it with "one month" to read: (a) Personal and Private Use. On the days of December [311 st [ANDJ through January 1st only, a [48 HOUR] one month period, a person over the age of 18 may use salable fireworks within the City for personal and private use on real property owned by the person, other private property with the consent of the property owner. or on City owned tidelands below mean high water. • Amend subsection (a) of KMC 8.20.050 Permit to Sell Saleable Fireworks, on page 29 of the Packet y deleting "December 1" and replacing it with "the fourth Friday i n November" to read : Page 18 of 146 Page 2 of 2 Ordinance 2945-2017 Amendment Memo (a) Permit Required. No person may sell, expose for sale, or offer for sale any saleable fireworks in the City except in accordance with a permit issued to the person under this section. A permit is effective from [DECEMBER 11 the fourth Friday in November until December 31 of the year issued. (Note: new language bold and underlined, deleted language in caps and bracketed.) Your conside ration is appreciated. Page 19 of 146 Page 3 of 2 Ordinance 2945-2017 Amendment Memo Page 20 of 146 Sandra Modigh From: Sent: To: Subject: Hi Sandra Modigh, Paula J Dunn <pjdjes@me.com> Thursday, April 27, 2017 10:20 AM Sandra Modigh For 5/3/17 meeting .... Proposed Fireworks Ordinance Would you please add this message to the packet for the 5/3/17 meeting as I cannot attend. -S-Thanks, Paula Dunn From: Paula J Dunn <pjdjes@me.com> Date: April 27, 2017 at 9:54:12 AM AKDT To: Brian Gabriel <bgabriel@kenai .city>, Bob Molloy <bob@molloyforcouncil.com>, Tim Navarre <timnavarre@gmail.com>, Henry Knackstedt <hknackstedt@kenai .city>, Mike Boyle <mboyle@alaskan .com>, Jim Glendening <jglendening@kenai .city>, Glenese Pettey <gpettey@kenai .city> Subject: Proposed Fireworks Ordinance To the Council: I have heard a report that the Council is considering an ordinance to allow the sale of fireworks in the City and to permit the use of fireworks for the entire month of December. If this report is accurate, I strenuously oppose adoption of any such ordinance. I understand that the current law is that the sale of fireworks is not allowed at all and the use of fireworks is permissible only on New Year's Eve. No legitimate public purpose would be served by allowing the sale of fireworks or by expanding the permissible time period for use of fireworks. No amount of imagined tax revenues generated from the sale of fireworks would be worth the personal injuries, property damage and fires that will flow from increased use of these dangerous, incendiary objects in our City. Furthermore, fireworks are inherently noisy, of course. Increased use of fireworks will cause disturbance to our neighborhoods. Children are the ones most likely to be injured by fireworks. For the sake of public safety and the well-being of our community, I urge you to reject any change to the current law on fireworks in the City of Kenai. Thank you. Paula J. Dunn 1515 Toyon Way 1 Page 21 of 146 Sponsored by: Administration CITY OF KENAI ORDINANCE NO. 2947-2017 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, ACCEPTING AND APPROPRIATING SUPPLEMENTAL NUTRITION, TRANSPORTATION, AND SUPPORT SERVICES GRANT FUNDING IN THE SENIOR CITIZEN FUND, FOR FISCAL YEAR 2017. WHEREAS, annually the City receives a grant from the State of Alaska Department of Health and Social Services to provide Senior Citizen, Nutrition, Transportation, and Support Services (NTS); and, WHEREAS, the FY2017 adopted budget estimated grant funding for the NTS program in the amount of $182,847; and, WHEREAS, the original grant award for FY2017 was $190,847, $8,000 more than originally estimated and the additional amount was appropriated by Ordinance 2914-2016; and, WHEREAS, center staff received an opportunity to apply for additional NTS transportation funding and were successful in being awarded an additional $6,847 making the City 's total FY2017 NTS funding $197,694; and, WHEREAS, demand for transportation services has increase year over year by 27.4% and by 9.68% in the Grant's targeted age group; and, WHEREAS, acceptance of the additional funding is in the best interest of the senior utilizing the center's transportation program and the citizens of Kenai. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: Section 1. Form : That this is a code ordinance . Section 2. That the City Manager is authorized to accept additional grant funding from the State of Alaska, Department of Health and Social Services in the amounts of $6,847 and to execute grant agreements and to expend the grant funds to fulfill the purpose and intent of the grant and this ordinance. Section 3. That estimate revenues and appropriations be increased as follows" Senior Citizen Fund Increase Estimated Revenues : State Grant Increase Appropriations Transportation -Operating & Repair Supplies Transportation -Small Tools $6,847 $3,000 2,700 New Text Underlined; [DELETED TEXT BRACKETED] Page 22 of 146 Ordinance No. 2947-2017 Page 2 of 2 Transportation -Repair & Maintenance Section 4. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application. Section 5. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect upon enactment. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 3rd day of May, 2017. ATTEST: Sandra Modigh, City Clerk Approved by Finance l ~ BRIAN GABRIEL SR, MAYOR Introduced: April 19, 2017 Enacted: May 3, 2017 Effective: May 3, 2017 New Text Underlined; [DELETED TEXT BRACKETED] Page 23 of 146 'tltfl'~ «1/t/t, a Pa.ft, e~ «1/t/t, a Fu.tfl.IC'e JJ 210 FidalgoAve, Kenai, Alaska 99611-7794 Telephone: (907) 283-7535 I Fax: (907) 283-3014 www.kenai.city MEMORANDUM TO: THROUGH: FROM: DATE: SUBJECT: Mayor Brian Gabriel and Kenai City Council Paul Ostrander, City Manager ?· 0 · Rachael S. Craig, Senior Center Director April 11, 2017 Ordinance Amending NTS Grant This memo is to support the Award Amendment #607-309-1710 in the amount of $6,847.00 to the 206-2017 NTS Grant. The Senior Center received an opportunity to apply for additional NTS funds for FY2017. We focused the grant opportunity to increase funding for transportation. With reductions to the Home and Community Based Waiver Programs and to the Independent Living Center's taxi vouchers, our transportation figures have dramatically increased in FY2017. We have seen growth in the following areas: • 27.4% increase in rides in the first seven months of FY2017 vs FY2016. • 9.68% increase in rides for the target age group of 85+. • In addition to our current two part-time 14 hour paid drivers, we have increased volunteer driver support from 3 to 5 days per week. This extra funding will be used for fuel, hand-held scanners to assist our drivers with routes, counting rides, and additional expenses for maintenance fees for the scanners. The money will be allocated to the following accounts: 019-474-2022 019-474-2024 019-4 7 4-4538 Total: $3,000.00 $2,700.00 $1I147.00 $6,847.00 Page 24 of 146 Sponsored by: Administration CITY OF KENAI ORDINANCE NO. 2948-2017 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, ACCEPTING AND APPROPRIATING FUNDS RECEIVED FROM KENAI SENIOR CONNECTION, INC. FOR THE PURCHASE OF A COPIER FOR THE KENAI SENIOR CENTER. WHEREAS, the Kenai Senior Center has received $7,677.48 from the Kenai Senior Connection, Inc. for the purchase of a new copier for the Kenai Senior Center; and, WHEREAS, the new copier will assist the Center with daily printing and copying, printing of the Center's monthly newsletter, and printing of fundraising documents for the Kenai Senior Connection; and, WHEREAS, the purchase of this copier will improve operations at the Center and is in the best interest of the City and its residents. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: Section 1. Form: That this is a code ordinance . Section 2. That the City Manager is authorized to accept the donation from the Kenai Senior Connection in the amounts of $7,677.48 for the purchase of a copier and to expend the donated funds to fulfill the purpose and intent of this ordinance . Section 3. That estimate revenues and appropriations be increased as follows: Senior Citizen Fund Increase Estimated Revenues: Donations Increase Appropriations Senior Access -Machinery & Equipment Congregate Meals -Machinery & Equipment Home Meals -Machinery & Equipment $7,677.48 $2,559.16 2,559.16 2.559.16 $7.677.48 Section 4. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application. New Text Underlin ed ; [DELETED TEXT BRACKETED] Page 25 of 146 Ordinance No . 2948-2017 Page 2 of 2 Section 5. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect upon enactment. ENACTED BY THE COUNCIL OF THE CITY OF KENAI , ALASKA, this 3rd day of May, 2017. ATTEST: Sandra Modigh, City Clerk Approved by Finance ~Z'-$.i~:::::--- BRIAN GABRIEL SR., MAYOR Introduced: April 19, 2017 Enacted: May 3 , 2017 Effective: May 3 , 2017 New Text Underlined; [DELETED TEXT BRACKETED] Page 26 of 146 'Vtff~ «J/t~ 0. Pa~t, e'tff «J/t~ 0. f"u.tfl.l"e II 210 Fida Igo Ave, Kenai, Alaska 99611-7794 Telephone: (907) 283-7535 I Fax: (907) 283-3014 www.kenai.city MEMORANDUM TO: THROUGH: FROM: DATE: SUBJECT: Mayor Brian Gabriel and Kenai City Council Paul Ostrander, City Manager ?· c.?; Rachael S. Craig, Senior Center Director April 11, 2017 Donation for Konica Minolta Bizhub C258 Color/Printer/Scanner With a quorum present, the Kenai Senior Connection, Inc. (Connection) Board of Directors held a regular meeting on Friday, March 17, 2017 and considered a request by the Senior Center director to fund the purchase of a new Konica Minolta Bizhub C258 Color Copier/Printer/Scanner, with a 50-sheet stapling finisher for the Kenai Senior Center Administrative Office. A motion to purchase the above-referenced Bizhub for the quoted amount of $7, 190.26 was unanimously passed. A special meeting was called on April 7, 2017 to discuss additional options to the Bizhub as recommended by the City of Kena i's IT Department. A motion to purchase the above-referenced Bizhub for the quoted amount of $7,677.46 was unanimously passed. It is understood the funds for this purchase will be forwarded to the City of Kenai to be appropriated to the following Senior Center accounts: 019-470-8064: $2,559.16 019-471-8064: 019-472-8064: Total: $2,559.16 $2.559 .16 $7,677.48 Page 27 of 146 Sponsored by: Administration CITY OF KENAI ORDINANCE NO . 2949-2017 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI , ALASKA, ACCEPTING AND APPROPRIATING FUNDS FORFEITED TO THE KENAI POLICE DEPARTMENT. WHEREAS, THE Kenai Police Department has received notice from the Court authorizing the forfeitu re to the Kenai Police Department of $1204.50 in drug seizure funds ; and, WHEREAS , the funds were seized during drug investigations , in which the Kenai Police Department was the investigating agency; and, WHEREAS , the Police Department, pursuant to conditions of acceptance, will utilize the forfeited funds in the furtherance of the administration of justice. NOW , THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI , ALASKA, as follows: Section 1. Form : That this is a non-code ordinance . Section 2. That estimated revenues and appropriations be increased as follows: General Fund Increase Estimated Revenues : Forfeitures $1,204.50 Increase Appropriations: Police -Small Tools $1 ,204.50 Section 3. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision , or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision , or application. New Text Underli ned; [DELETED TE XT BRACKETED] Page 28 of 146 Ordinance No. 2949-2017 Page 2 of 2 Section 4. Effective Date: "That pursuant to KMC 1.15.070(f), this ordinance shall take effect upon enactment. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 3rd day of May, 2017 . ATTEST: Sandra Modigh, City Clerk Approved by Finance J,.-/(_ BRIAN GABRIEL SR, MAYOR Introduced: April 19, 2017 Enacted: May 3, 2017 Effective: May 3, 2017 New Text Underlined; [DELETED TEXT BRACKETED] Page 29 of 146 'Vtflar «1/t/e, a Po..r~ °''ti «1/t/e, a Fa.tfl.l"e JJ 210 FidalgoAve, Kenai, Alaska 99611-7794 Telephone: (907) 283-7535 I Fax: (907) 283-3014 www.kenai.city MEMORANDUM TO: THROUGH: FROM: DATE: SUBJECT: Mayor Brian Gabriel and Kenai City Council Paul Ostrander, City Manager '1 v · David Ross -Police Chief April 10, 2017 Request ordinance appropriating asset forfeiture funds The City of Kenai currently holds $1,204.50 in investigative seizure money. Kenai Court orders were issued in April and May of 2016, that ordered the forfeiture of funds including $1,204.50 to the Kenai Police Department. The forfeiture is the result of drug investigations in which the Kenai Police Department was the investigating agency. The funds are designated to be used in the furtherance of the administration of justice. I am requesting an ordinance appropriating $1,204.50 into the General Fund, Police- Small Tools account to help pay for police equipment. Page 30 of 146 Sponsored by: Administration CITY OF KENAI RESOLUTION NO. 2017-19 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, APPROVING A MEMORANDUM OF UNDERSTANDING AMONG THE CHUGACH NATIONAL FOREST 11- MU-11100400-121, THE KENAI NATIONAL WILDLIFE REFUGE, THE ALASKA DEPARTMENT OF NATURAL RESOURCES, THE CITY OF SOLDOTNA, KENAI PENINSULA BOROUGH, THE CITY OF KENAI AND THE KENAI WATERSHED FORUM IN SUPPORT OF THE STREAM WATCH PROGRAM. WHEREAS, all parties signatory to this Memorandum of Understanding (MOU) recognize the importance of providing public recreational opportunities to the general public on public lands while protecting cultural and natural resources; and, WHEREAS, the Stream Watch volunteer program has been proven successful at assisting natural resource management agencies specifically in areas of high popularity such as the Upper Kenai and Russian River area; and, WHEREAS, successful volunteer efforts on the Upper Kenai and Russian Rivers include providing education to the public related to habitat and riparian area protection, bear awareness, ethical angling techniques, agency regulations, on-the-ground stewardship projects such as mending habitat fences, maintaining signage, and assisting in special projects are completed as needed; and, WHEREAS, the signatory parties under this agreement are expanding the Stream Watch program from the Kenai-Russian Rivers to other locations on the Kenai Peninsula to assist the land managing agencies in stewardship objectives and in providing education to the public in a non-regulatory manner; and, WHEREAS, the Stream Watch program currently does not operate inside the City of Kenai, but participating in this MOU enables the City to potentially utilize the resources of the Stream Watch program should projects within the City be identified in the future; and, WHEREAS, this MOU specifically does not obligate the City to expend any resources, and only commits the City to be involved in program oversite through steering committee representation. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1. That the City Manager is authorized to execute the attached Memorandum Of Understanding Among The Chugach National Forest 11-Mu-11100400-121, The Kenai National Wildlife Refuge, The Alaska Department Of Natural Resources, The City Of Soldotna, Kenai Peninsula Borough, The City Of Kenai And The Kenai Watershed Forum to support the Stream Watch program, and delegate a City employee to provide program oversite through steering committee representation should such representation be requested or desired by the City. Page 31 of 146 Resolution No. 2017-19 Page 2 of 2 Section 2. That this resolution takes effect immediately upon passage. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 3rd day of May, 2017. BRIAN GABRIEL SR., MAYOR ATTEST: Sandra Modigh, City Clerk Page 32 of 146 'Vtflar «1/t/t, a Pair~ tt'tj «1/t/t, a Fu.trq-e," 210 Fidalgo Ave, Kenai, Alaska 99611-7794 Telephone: (907) 283-7535 I Fax: (907) 283-3014 www.kenai.city MEMORANDUM TO: FROM: DATE: SUBJECT: Mayor Brian Gabriel and Kenai City Council Paul Ostrander, City Manager'1< 0- April 25, 2017 Resolution 2017-19 This resolution authorizes the City Manager to execute a memorandum of understanding (MOU) between multiple entitiies in support of the Stream Watch program. This MOU is an extension of an MOU signed in 2012 by the same entities and is intended to provide the same level of committement and involvement as the 2012 agreement. This MOU does not specifically obligate the City to expend any resources and only committs the City to be involved in program oversite through steering committee respresenation. Page 33 of 146 KENAI CITY COUNCIL – REGULAR MEETING APRIL 19, 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 April 19, 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 Henry Knackstedt Tim Navarre Jim Glendening Glenese Pettey (telephonic) 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. 1. Ordinance No. 2945-2017 • Proposed Amendment Memorandum Add Item G.7. Donation to Saving the Brown Bears Hockey Team • Booster Club Information MOTION: Council Member Molloy MOVED to approve the agenda and requested UNANIMOUS CONSENT. Council Member Knackstedt SECONDED the motion. Page 34 of 146 VOTE: There being no objections, SO ORDERED. 4. Consent Agenda MOTION: Council Member Knackstedt MOVED to approve the consent agenda and requested UNANIMOUS CONSENT. Council Member Boyle 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 1. Tim Dillon, Kenai Peninsula Economic Development District – Update on First and Second Quarter Activities. Tim Dillon, Executive Director for the Kenai Peninsula Economic Development District provided an update on their recent activities noting a strategic document that had recently been produced, recent highlights affecting the economy, and current demographics. 2. Ron Hyde, PRL Logistics – Update on Plans and Objectives for PRL Logistics’ Kenai Development. Ron Hyde provided an overview of operations of PRL Logistics noting they were moving their headquarters to Kenai; also introduced the hybrid airship, a project the company had been involved in developing with Lockheed Martin. C. UNSCHEDULED PUBLIC COMMENTS Greg Daniels, spoke against the sale of four acres on Lawton Drive expressing concern with further development of what had been set aside as conservation; noted he had attended the work session where compromises had been made and pointed out the additional development wasn’t a part of the compromise. Requested reconsideration and a review of the current Comprehensive Plan; suggested a ballot measure advising the City regarding purchasing the property or a land trade between the airport and the City. Sammy Crawford spoke on behalf of “Climate Voices,” an organization involved with climate change, and invited everyone to attend an event featuring a speaker from the U.S. Geological Survey. Page 35 of 146 Chris Every spoke against a commercial sport guide business being run out of his neighbor’s house noting a Conditional Use Permit had been denied in the past; requested the new administration look into the matter. Kelly Kelso spoke against the sale of property on Lawton Drive noting the referendum in the past regarding its zoning in the Comprehensive Plan. Suggested the airport find a benefit of a park strip. Mike Christian spoke against the sale of property on Lawton Drive pointing out that the idea for the area being conservation was necessary to prevent noise and create a barrier. D. PUBLIC HEARINGS 1. Ordinance No. 2945-2017 – Repealing and Re-Enacting Kenai Municipal Code Chapter 8.20-Fireworks Control, to Allow for the Limited Sale of Certain Fireworks in the City. MOTION: Council Member Knackstedt MOVED to enact Ordinance No. 2945-2017 and the motion was SECONDED by Council Member Boyle. Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment was closed. It was noted the intent of the ordinance was for revenue source for the City; a brief overview was provided. It was further noted bottle rockets and similar fireworks were excluded due to strong recommendation from fireworks vendors and the issue of the waste falling on another person’s property. Clarification was provided that the ordinance would not prohibit the Chamber of Commerce from their winter fireworks show. There was suggestion the mandatory review was not necessary as the potential for the review to be forgotten and the possibility for the ordinance to be amended at any time. MOTION TO AMEND: Council Member Glendening MOVED to amend by inserting the words, “and use,” after, “sale,” in the title, changing, “December 31st,” to “December 1st,” deleting the word “and,” and replacing it with, “through,” and deleting “48 hour,” and replacing it with “one month,” in section KMC 8.20.020 (a), and deleting, “December 1,” and replacing with, “the fourth Friday in November,” in section KMC 8.20.050(a), and the motion was SECONDED by Council Member Boyle. VOTE ON THE AMENDMENT: YEA: Knackstedt, Gabriel, Boyle, Glendening, Pettey, Navarre NAY: Molloy ** Student Representative Lindeman: YEA MOTION PASSED. Page 36 of 146 MOTION TO POSTPONE: Council Member Knackstedt MOVED to postpone to the May 3 meeting for the purpose of additional public hearing and the motion was SECONDED by Council Member Boyle. It was suggested postponement was not necessary; pointed out the ordinance provided for the sale of fireworks and the amendment lengthened the timeframe the use of fireworks was allowed. VOTE ON POSTPONEMENT: YEA: Knackstedt, Gabriel, Boyle, Glendening, Pettey, Navarre, Molloy NAY: ** Student Representative Lindeman: YEA MOTION PASSED UNANIMOUSLY. 2. Ordinance No. 2946-2017 – Accepting and Appropriating a Volunteer Fire Assistance (VFA) Grant from the United States Department of Agriculture Forest Service Passed through the State of Alaska Division of Forestry for the Purchase of Forestry Firefighting Equipment. MOTION: Council Member Molloy MOVED to enact Ordinance No. 2946-2017 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. VOTE: YEA: Knackstedt, Gabriel, Molloy, Boyle, Glendening, Pettey, Navarre NAY: ** Student Representative Lindeman: YEA MOTION PASSED UNANIMOUSLY. 3. Resolution No. 2017-17 – Authorizing a Budget Transfer in the Personal Use Fishery Fund for the Installation of Internet Viewing Cameras. MOTION: Council Member Knackstedt MOVED to approve Resolution No. 2017-17 and the motion was SECONDED by Council Member Navarre who requested UNANIMOUS CONSENT. Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment was closed. VOTE: There being no objection; SO ORDERED. Page 37 of 146 4. Resolution No. 2017-18 – Amending its Comprehensive Schedule of Rates, Charges, and Fees to Incorporate an Increase to the Senior Center Meal Rates. MOTION: Council Member Boyle MOVED to approve Resolution No. 2017-18. The motion was SECONDED by Council Member Glendening. UNANIMOUS CONSENT was requested. Mayor Gabriel opened the public hearing. Velda Gellar, Chair of the Council on Aging, requested support due to the increases in the costs of the meal preparation noting the last time the fee was increased was 2011. There being no one wishing to be heard, public comment was closed. VOTE: There being no objection; SO ORDERED. E. MINUTES 1.*Regular Meeting of April 5, 2017 Meeting minutes approved by the consent agenda. F. UNFINISHED BUSINESS – None. G. NEW BUSINESS 1. *Action/Approval – Bills to be Ratified. Approved by the consent agenda. 2. *Ordinance No. 2947-2017 – Accepting and Appropriating Supplemental Nutrition, Transportation, and Support Services Grant Funding in the Senior Citizen Fund, for Fiscal Year 2017 Introduced by the consent agenda and public hearing set for May 3, 2017. 3. *Ordinance No. 2948-2017 – Accepting and Appropriating a Volunteer Fire Assistance (VFA) Grant from the United States Department of Agriculture Forest Service Passed through the State of Alaska Division of Forestry for the Purchase of Forestry Firefighting Equipment. Introduced by the consent agenda and public hearing set for May 3, 2017. 4. *Ordinance No. 2949-2017 – Accepting and Appropriating Funds Forfeited to the Kenai Police Department. Introduced by the consent agenda and public hearing set for May 3, 2017. 5. Action/Approval – Approve a Special Use Permit to Golden Wheel for a Carnival. Page 38 of 146 MOTION: Council Member Navarre MOVED to approve a Special Use Permit to Golden Wheel Amusements for a Carnival. The motion was SECONDED by Council Member Boyle. VOTE: YEA: Knackstedt, Gabriel, Molloy, Boyle, Glendening, Pettey, Navarre NAY: ** Student Representative Lindeman: YEA MOTION PASSED UNANIMOUSLY. 6. Discussion – Response to Council Request for Options Regarding Lawton Acres. Administration provided an overview of the map that had been drafted upon Council’s request to prepare a recommendation for a reasonable approach for development of the area after discussions during a work session; pointed out the requested buffer zones had been captured and recommended retaining the section containing the flower garden; noted it was recognized that there would be amendments to the map; also noted that other recommendations had been included in the memo provided in the packet. It was pointed out that it was good planning to look at entire subdivision when considering options. Other options such as the City purchasing the property from the airport, a land swap, and leasing were discussed. It was decided a work session would be held on May 15 at 6:00 p.m. for the entire Lawton Acres proposals. 7. Action/Approval – Donation to Saving the Brown Bears Hockey Team [Clerk’s Note: Item was added to the agenda during Approval of the Agenda.] MOTION: Council Member Navarre MOVED to donate $1,500 to saving the Brown Bear Hockey Team. The motion was SECONDED by Council Member Glendening. It was clarified that the booster club had raised the minimum funding needed but they weren’t out of the woods. It was pointed out that the program was not just hockey but that the players volunteer in the community and are role models for kids to look up to; not just a donation to a team but also a value to the community. VOTE: YEA: Gabriel, Molloy, Boyle, Glendening, Navarre NAY: Pettey, Knackstedt ** Student Representative Lindeman: NAY MOTION PASSED. Page 39 of 146 H. COMMISSION/COMMITTEE REPORTS 1. Council on Aging – It was reported that at their April 13 meeting, the Council heard about the Senior Companion Program and accepted a policy for allowing dogs at the Senior Center; next meeting May 11. 2. Airport Commission – It was reported that on April 13, the Commission heard an update on the airport leasing policy, received an update on the airport master plan, heard about the proposed FY18 budget, approved two special use permits and a consent to an of assignment to lease; next meeting May 11. 3. Harbor Commission – It was reported that the Commission was still fleshing out what their responsibilities would be; next meeting May 8. 4. Parks and Recreation Commission – It was reported that on April 6, the Commission reviewed the FY18 budget, the proposed cemetery expansion, and the 2017 plant list; also heard about the pathway of poetry project; next meeting May 4. 5. Planning and Zoning Commission – It was reported that on April 12 the Commission rescinded prior resolutions and approved two preliminary plats with amended technical issues; next meeting April 26. 6. Beautification Committee – It was reported that on April 11, the Committee elected a chair and vice chair, suggested the creation of a beautification brochure, set volunteer plant day, and heard about the pathways of poetry and little libraries projects; next meeting May 9. 7. Mini-Grant Steering Committee – No report. I. REPORT OF THE MAYOR Mayor Gabriel reported on the following: • Gave opening comments at the recent CIRCAC meeting; • Participated in the recent St. Jude’s Radiothon; • Provided a reminder for the upcoming budget work session. J. ADMINISTRATION REPORTS 1. City Manager – P. Ostrander reported on the following: • Thanked Council for appropriating funds for cameras to be used during the dipnet fishery as it was part of an initiative to improve the experience for anglers; • Reported the Silver Salmon Derby meetings were ongoing, there was no intention to harm the resource at all and the Chamber of Commerce would cancel if necessary; • Reviewing Airport Terminal Rehabilitation project; • Provided an update on the Bluff Erosion project - still waiting on finalization which triggers public comment; hopeful for the first week of May. Page 40 of 146 2. City Attorney – No Report. 3. City Clerk – S. Modigh noted she received notification of Mr. Glendening’s resignation from the Borough Planning Commission and would be advertising for applicants; also provided a reminder for future meetings. K. ADDITIONAL PUBLIC COMMENT 1. Citizens Comments (Public comment limited to five (5) minutes per speaker) Michael Beck spoke against selling property on Lawton Drive noting it was against the Comprehensive Plan and pointed out that the FAA had developed environmental requirements on FAA lands. Kelly Kelso thanked Council for sending a mailing to any affected residents for future discussions of Lawton Acres. 2. Council Comments Councilor Knackstedt noted he had attended the joint chamber meeting. Council Member Molloy thanked those that presented and spoke to Council. Student Representative Lindeman reported on current sporting events and upcoming graduation. Council Member Glendening reported his granddaughter had been selected to intern for her representative in Washington DC. Council Member Pettey reiterated gratitude for presentations and speakers and expressed gratitude for administration’s work on the Lawton Drive property. Vice Mayor Navarre reiterated that he was on the Governor’s education challenge committee and would be attending meetings. L. EXECUTIVE SESSION 1. Discussion of an Offer to Purchase Property Located at 2270 Royal Street, Kenai, AK, Tract A Dragseth Subdivision 2016 Addition (Dragseth House), 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. MOTION: Council Member Molloy MOVED to convene in executive session to discuss an offer to purchase property located at 2270 Royal Street, Kenai, AK, Tract A, Dragseth Subdivision 2016 Addition (Dragseth House), the immediate knowledge of which 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 per AS 44.62.310(C)(1)(3) and requested the attendance of the City Planner, City Manager, City Attorney and City Clerk, as well as Glenda Feeken, Ron Hyde and Amy West and the motion was SECONDED by Council Member Boyle. Page 41 of 146 VOTE: YEA: Gabriel, Glendening, Knackstedt, Navarre, Pettey, Molloy, Boyle NAY: MOTION PASSED UNANIMOUSLY. Council reconvened in regular session and it was noted that the City Administration and City Attorney had been given direction. M. PENDING ITEMS – None. N. ADJOURNMENT There being no further business before the Council, the meeting was adjourned at 11:10 p.m. I certify the above represents accurate minutes of the Kenai City Council meeting of April 19, 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. Page 42 of 146 MINUTES KENAI CITY COUNCIL – SPECIAL MEETING APRIL 25, 2017, 6:00 P.M. KENAI CITY COUNCIL CHAMBERS 210 FIDALGO AVE., KENAI, AK 99611 http://www.kenai.city A. CALL TO ORDER A Special Meeting of the Kenai City Council was held on April 25, 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 Henry Knackstedt Tim Navarre Jim Glendening Glenese Pettey Mike Boyle A quorum was present. Also in attendance were: Paul Ostrander, City Manager Scott Bloom, City Attorney Sandra Modigh, City Clerk 3. Agenda Approval MOTION: Council Member Molloy MOVED to approve the agenda and requested UNANIMOUS CONSENT. Council Member Knackstedt SECONDED the motion. VOTE: There being no objections, SO ORDERED. B. PUBLIC COMMENT (Public comment limited to three (3) minutes per speaker; thirty (30) minutes aggregated) There was no one in attendance to provide public testimony. C. EXECUTIVE SESSION Page 43 of 146 1. Review and Discussion of the City Manager’s Evaluation which may be a Subject that Tends to Prejudice the Reputation and Character of the City Manager [AS 44.62.310(C)(2)]. MOTION: Council Member Molloy MOVED to enter into executive session to review and discuss the City Manager’s evaluation which may be a subject that tends to prejudice the reputation and character of the City Manager [AS44.62.310(C)(2)]; and requested the attendance of City Manager Paul Ostrander. Council Member Boyle SECONDED the motion. VOTE: YEA: Knackstedt, Gabriel, Boyle, Glendening, Pettey, Navarre, Molloy NAY: MOTION PASSED UNANIMOUSLY. Council reconvened in open session and it was noted for the record that Council met in executive session and reviewed and discussed the City Manager’s performance evaluation with the City Manager and reported his performance was above satisfactory. City Manager Ostrander was dismissed from the meeting at 7:38 p.m. 2. Review and Discussion of the City Attorney’s Evaluation which may be a Subject that Tends to Prejudice the Reputation and Character of the Attorney [AS 44.62.310(C)(2)]. MOTION: Council Member Molloy MOVED to enter into executive session to review and discuss the City Attorney’s evaluation which may be a subject that tends to prejudice the reputation and character of the City Attorney [AS44.62.310(C)(2)]; and requested the attendance of City Attorney Scott Bloom. Council Member Knackstedt SECONDED the motion. VOTE: YEA: Knackstedt, Gabriel, Boyle, Glendening, Pettey, Navarre, Molloy NAY: MOTION PASSED UNANIMOUSLY. Council reconvened in open session and it was noted for the record that Council met in executive session and reviewed and discussed the City Attorney’s performance evaluation with the City Attorney and reported his performance was above satisfactory. Page 44 of 146 3. Review and Discussion of the City Clerk’s Evaluation which may be a Subject that Tends to Prejudice the Reputation and Character of the City Clerk [AS 44.62.310(C)(2)]. MOTION: Council Member Molloy MOVED to enter into executive session to review and discuss the City Clerk’s evaluation which may be a subject that tends to prejudice the reputation and character of the City Clerk [AS44.62.310(C)(2)]; and requested the attendance of City Clerk Sandra Modigh. Council Member Boyle SECONDED the motion. VOTE: YEA: Knackstedt, Gabriel, Boyle, Glendening, Pettey, Navarre, Molloy NAY: MOTION PASSED UNANIMOUSLY. Council reconvened in open session and it was noted for the record the Council executive session and began review and discussion of the City Clerk’s evaluation with the City Clerk and reported that and executive session would be on the next meeting agenda to continue the City Clerk’s evaluation. D. ADJOURNMENT There being no further business before the Council, the meeting was adjourned at 12:10 a.m. I certify the above represents accurate minutes of the Kenai City Council meeting of April 25, 2017. _____________________________ Sandra Modigh, CMC City Clerk Page 45 of 146 PAYMENTS OVER $15,000.00 WHICH NEED COUNCIL RATIFICATION COUNCIL MEETING OF: MAY 3, 2017 VENDOR DESCRIPTION PERS PERS PREM ERA HEAL TH INSUR ANCE ENSTAR NATURAL GAS GAS USAGE HOMER ELECTRIC ELECTRIC USAGE INVESTMENTS VENDOR DESCRIPTION PIPER JAFFRAY U.S. GOVT SECURITY PIPER JAFFRAY U.S. GOVT SECURITY PIPER JAFFRAY U.S . GOVT SECURITY DEPARTMENT ACCOUNT VARIOUS LIABILITY VARIOUS LIABILITY VARIOUS UTILITIES VARIOUS UTILITIES MATURITY DATE 8/16/2017 10/19/2017 10/18/20 17 AMOUNT 249 ,000.00 248 ,000.00 248,000.00 AMOUNT 88,311.53 131 ,535 .9 4 39 ,350.2 4 115,110.17 Effect. Int. 0.8% 1.05% .85% Page 46 of 146 'Vtflar «1/t/r, a Pa.J't, e~ «1/t/r, a Fu.tfl.l"e II 210 Fidalgo Ave, Kenai, Alaska 99611-7794 Telephone: (907) 283-7535 I Fax: (907) 283-3014 www.kenai.city MEMORANDUM TO: THROUGH: FROM: DATE: SUBJECT: Mayor Brian Gabriel and Kenai City Council Sandra Modigh, City Clerk April 27, 2017 Liquor License Transfer of Ownership The Alcoholic Beverage Control Board has sent notification that the following licensee is seeking to transfer ownership of its Liquor License No. 3039: Request Transfer to: D/B/A: Current Licensee: Mad Moose Bar & Grill, LLC Mad Moose Bar & Grill Don Jose's LLC Pursuant to KMC 2.40, a review of City accounts has been completed and the applicant has satisfied all obligations to the City. With the approval of Council, a letter of non-objection to the liquor license transfer of ownership will be forwarded to the ABC Board and the applicant. Your consideration is appreciated. Page 47 of 146 KENAI PENINSULA BOROUGH 144 North Binkley Street •So ld otna, Alaska 996 69-7520 PHONE: (907) 714-2160 • FAX: (907) 7 14-2388 Toll-free within the Borough: 1-800-478-4441 Ext. 2160 Emai l: assemblyclerk@borough. kenai.ak. us ........... ~ April 6, 2017 Sarah Oates-Daulton Records & Licensing Supervisor Alcohol & Marijuana Control Office 550 W 7th Ave. Ste. 1600 Anchorage, AK 99501 RE: Transfer Application for Change i n Name and Ownership JOHNI BLANKENSHIP, MMC BOROUGH CLERK Licensee/Applicant The Mad Moose Bar & Grill, LLC New Business Name Mad Moose Bar & Grill License Type Beverage Dispensary Location City of Kenai License No. 3039 Previous Licensee Don Jose's LLC Dear Sarah, The Kenai Peninsula Borough Finance Department has reviewed its files and has raised no objection, based on unpaid or delinquent taxes, to the transfer of ownership and name change as referenced above. Should you have any questions, please don't hesitate to let us know. Sincerely, Johni Blankenship, MMC Borough Clerk JB/klr cc : Appli ca nt, KPB Fin ance Departm ent , City of Kenai, Fil e Page 48 of 146 "Vt1/llje with a Past, City with a Future" 210 Fidalgo Avenue, Kenai, Alaska 99611-7794 Telephone: 907-283-7535 I FAX: 907-283-3014 MEMORANDUM TO: FROM: DATE: RE: David Ross, Chief of Police Willie Anderson, Lands Manager Terry Eubank, Finance Department Scott Bloom, Legal Department Matthew Kelly, City Planner Sandra Modigh , City Cle~ February 2 , 2017 Liquor License Transfer of Ownership The Alcoholic Beverage Control Board has sent notification that the following applicant is seeking to transfer ownership of its Liquor License No . 3239: Applicant: Kimberly Merrow D/B/A: Mad Moose Bar & Grill Current Licensee: Don Jose's, LLC ~ '1111.' 1992 Pursuant to KMC 2.40.010, 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. Please review account(s) maintained by your department (i.e. water and sewer billings, lease/property payment history, citations , etc.) by the above reference applicant. Initial whether account(s) and/or payment plan(s) are current or delinquent. If accounts are delinquent, attach information to this memorandum indicating amounts owed and for which accounts . Once you have completed your section, please route to the next department. Thanks! I have reviewed all account(s) for my department and the applicant is current or account(s) do not exist. The applicant has delinquent account(s) and an additional page has been attached. Delinquent Police Department '"b ;g_ initials ___ initials Lands Management ~initials 5#-~ ___ initials Finance l"· ~ initials ___ initials Legal $() initials ___ initials Planning It ( initials ___ initials Returned to Clerk 's office ~{c/R-: Page 49 of 146 Sponsored by: Administration CITY OF KENAI ORDINANCE NO. 2950-2017 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, ACCEPTING AND APPROPRIATING A FEDERAL GRANT FROM THE INSTITUTE OF MUSEUM AND LIBRARY SERVICES (IMLS) PASSED THROUGH THE ALASKA STATE LIBRARY FOR THE PURPOSE OF FUNDING A 10 WEEK STUDENT INTERNSHIP POSITION AT THE KENAI COMMUNITY LIBRARY. WHEREAS , the Kenai Community Library has received a $5,250 grant from the IMLS passed through the Alaska State Library to fund a 10 week student internship position ; and, WHEREAS, it is in the best interest of the City of Kenai to accept and appropriate these grant funds to promote librarianship opportunities to a student; and, WHEREAS, it will benefit the community to have a student dedicated to a special project in the library; and, WHEREAS, the grant will also cover all expenses for the student and the library director to attend a kick-off event and a wrap-up event. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: Section 1. Form: That this is a non-code ordinance. Section 2. That the C ity Manager is authorized to accept a grant in the amount of $5,250 from the IMLS passed through the Public Library Association for a student internship of 10 weeks and to execute grant agreements and to expend grant funds to fulfill the purpose and intent of this ordinance. Section 3. That estimated revenues and appropriations be increased as follows: General Fund Increase Estimated Revenues - Federal Library Grants Increase Appropriations: Library -Salaries Library -Medicare Library -Social Security Library -Unemployment Insura nce Library -Workers' Compensation $5.250 $4,655 70 290 25 210 $5.250 New Text Und erlin ed ; [DELETED TEXT BRACKETED] Page 50 of 146 Ordinance No. 2950-2017 Page 2 of 2 Section 4. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application . Section 5. Effective Date: That pursuant to KMC 1.15.0?0(f), this ordinance shall take effect upon adoption. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 171h day of May, 2017 . ATTEST: Sandra Modigh, City Clerk Approved by Finance Z LA BRIAN GABRIEL SR., MAYOR Introduced: May 3, 2017 Enacted: May 17, 2017 Effective: May 17, 2017 New Text Underlined; [DELETED TEXT BRACKETED] Page 51 of 146 'titfl'~ t11/t~ a Pa$'~ e~ t11/t~ a Fu.tu.re JJ 210 Fidalgo Ave, Kenai, Alaska 99611-7794 Telephone: (907) 283-7535 I Fax: (907) 283-3014 www. kenai .city MEMORANDUM TO: THROUGH: FROM: DATE: SUBJECT: Mayor Brian Gabriel and Kenai City Council Paul Ostrander, City Manager?. o ~ Mary Jo Joiner, Library Director 13 April 2017 Public Library Association Grant The Kenai Community Library has been invited to apply for a grant from the Institute of Museum and Library Services under a program called Inclusive Internship Initiative . This grant will fund internships in select libraries this summer for high school juniors and seniors. The Public Library Association anticipates that each library will receive a stipend of approximately $5,250 over the course of the summer which should fund 10 weeks of work at 35/hours a week. The intent of the grant is to mentor a student and assign them a meaningful project. The library is responsible for assigning a mentor who will work approximately 5 hours/week mentoring and coaching the student. The mentor and student will be required to attend a kick-off event June 16 and 17 in Washington D.C. at the Library of Congress and a wrap event in Chicago in September. Expenses for travel, lodging and meals for these events will be covered by the Public Library Association. By the end of the summer it is hoped that students will more fully understand the scope of library work as well as have increased their skills in the identified project area. 80 libraries have been invited to apply for 50 grants. The applications are due by April 24 and notification of award is anticipated by May 5 . I am writing this memo so that we can 'hit the ground running' on this as soon as we receive notification. Page 52 of 146 Sponsored by: Administration CITY OF KENAI ORDINANCE NO. 2951-2017 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING KENAI MUNICIPAL CODE TITLE 23 -PERSONNEL REGULATIONS , TO CLARIFY THE PERFORMANCE EVALUATION RATING CATEGORIES FOR CONSISTENCY WITH THE CITY'S PERFORMANCE EVALUATION FORM AND PRACTICES. WHEREAS, the City evaluates employee performance using a five-point rating scale in which employees are rated as Outstanding, Exceeds Expectations , Meets Expectations, Needs Improvement, and Unsatisfactory in six categories; and, WHEREAS, in order for employees to be eligible to receive an advanced step increment at appropriate annual, biennial or quadrennial anniversary dates, or be eligible to receive longevity pay, the employee must receive a rating of satisfactory or better in his or her last performance evaluation; and, WHEREAS , employees who receive an overall rating of "Needs Improvement" or a rating of less than satisfactory in one or more of the categories on the City's Performance Evaluation Form appear eligible to receive an advanced step increment and longevity pay under certain sections of code and not eligible under other sections ; and, WHEREAS, the City's practice is to advance an employee one step or pay the employee longevity pay when the employee rece ives an overall evaluation of "Meets Expectations" or better and to not advance an employee one step or pay the employee longevity pay who receives an overall evaluation of "Unsatisfactory" or "Needs Improvement"; and , WHEREAS , the sections of the City's code that refer to performance evaluation rating categories should be amended to be consistent with the City's Performance Evaluation form and practices. NOW , THEREFORE , BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI , ALASKA, as follows: Section 1. Form : That this is a code ord inance. Section 2. Amendment of Section 23.45.020 of the Kenai Municipal Code: That Kenai Municipa l Code , Section 23.45.020, is hereby amended as follows : 23.45.020 Periods of evaluation. Each employee in the classified service shall have his or her performance evaluated at the following periods: (a) End of Probationary Period . Each employee shall be evaluated thirty (30) days prior to the completion of his or her probationary period. The employee must have an New Text Und erlin ed ; [D ELET E D T EXT B RACKETED] Page 53 of 146 Ordinance No . 2951 -2017 Page 2 of 3 overall evaluation of at least ["SATISFACTORY"] "Meets Expectations" in order to become permanent. (b) Annua l. Each employee shall receive an annual performance evaluation thirty (30) days prior to his or her anniversary date. (c) Time of Separation. Each employee shall be evaluated at the time of separation and such record shall become part of his or her permanent personnel file . Section 3. Amendment of Section 23.45.050 of the Kenai Municipal Code: That Kenai Municipal Code, Section 23.45.050, is hereby amended as follows : 23.45.050 Unsatisfactory evaluation. Employees who receive an overall rating of ["UNSATISFACTORY"] "Unsatisfactory" or "Needs Improvement" on their annual evaluation shall not be eligible to [RECEIVE AN IN- GRADE PAY INCREMENT] be advanced a step increment at appropriate annual. biennial or quadrennial anniversary dates . Employees who receive two (2) consecutive overall ratings of "unsatisfactory" shall be subject to dismissal Section 4. Amendment of Section 23.55.020 of the Kenai Municipal Code: That Kenai Municipal Code, Section 23.55.020, is hereby amended as follows: 23.55.020 Compensation Structure by Grade. (a) Compensation structure by grade is hereby established in accordance with the table that is appended to this title and which may be amended, mod ified, or replaced by ordinance, in which case a copy of the amended, modified, or replacement table shall be substituted for the prior table and placed in the code at the end of this title. (b) On completion of the probationary period , each permanent full-time employee shall be advanced one (1) step. At succeeding anniversary dates, subject to evaluation , employee may be advanced a step increment. The t ime period normally between steps B to C to D to E to Fis one (1) year. The time normally between Steps F to AA to BB to CC is two (2) years . (c) On completion of the probationary period , each permanent part-time employee shall be advanced one (1) step. At appropriate biennial or quadrennial anniversary dates thereafter, subject to the employee's most recent annual evaluation being [SATISFACTORY] "Meets Expectations" or better, the employee may be advanced a step increment. The time period normally between steps B to C to D to E to F is two (2) years. The time period normally between steps F to AA to BB to CC is four (4) years . Section 5. Amendment of Section 23.55.080 of the Kenai Municipal Code : That Kenai Municipal Code , Section 23.55.080, is hereby amended as follows: 23.55.080 Longevity pay. All regular employees who have received an overall rating of [SATISFACTORY] "Meets Expectations" or better in their last performance evaluation and who have been at Step CC for a period of at least two (2) years as of July 31st shall be paid a longevity bonus of two percent (2%) of his or her annua l pay rate (i.e., excluding overtime). The longevity pay shall be paid just once a year on the August payroll , except that the longevity bonus in 2008 shall be paid after the effective date of the ordinance codified in this section but prior to the end of the calendar year 2008. Notwithstanding the above , any employee who has received a range increase or a New Text Underlined; [DELETED TEXT BRACKETED] Page 54 of 146 Ordinance No . 2951-2017 Page 2 of 3 noncost of living pay increase within their current pay range within the twelve (12) months prior to July 31st is not eligible for a longevity pay bonus Section 5. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application. Section 6. Effective Date: That pursuant to KMC 1.15.0?0(f), this ordinance shall take effect 30 days after adoption. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 17th day of May, 2017. ATIEST: Sandra Modigh, City Clerk BRIAN GABRIEL SR, MAYOR Introduced: May 3, 2017 Enacted : May 17, 2017 Effective: June 17, 2017 New Text Underlined; [DELETED TEXT BRACKETED] Page 55 of 146 "Vt11aje with a Past City with a Future" 210 Fidalgo Avenue, Kenai , Alaska 99611-7794 Telephone : 907-283-7535 I Fax: 907-283-3014 www .kenai.city MEMORANDUM TO: THROUGH: FROM: DATE: SUBJECT: Mayor Brian Gabriel and Kena i City Council Paul Ostrander, City Manager,?, 0 - Christine Cunningham, Assistant to City Manager/ H ~ April 26, 2017 Ordinance No. 2951-2017 The purpose of this memo is to provide support for Ordinance No. 2951-2017. Supervisors recently received training on Employee Performance Evaluation and asked Administration for clarification of the effect of the rating categories included on the City 's Performance Evaluation form on an employee's eligibility for a step increase and/or longevity pay. The City's form includes a five-point rating scale in which employees are rated as Outstanding, Exceeds Expectations, Meets Expectations, Needs Improvement, and Unsatisfactory in six categories . If an employee receives an overall evaluation of "Needs Improvement," the Code is not clear as to whether the employee is eligible to receive a step increase or longevity pay. KMC23.45.050 states employees who receive an overall rating of "unsatisfactory" are not eligible to receive a step increase and KMC23.55.080 states an employee is eligible for longevity pay if he or she receives an overall rating of "satisfactory" or better. The City's practice is to advance an employee one step or pay the employee longevity pay when the employee receives an overall evaluation of "Meets Expectations " or better and to not advance an employee one step or pay the employee longevity pay who receives an overall evaluation of "Unsatisfactory" or "Needs Improvement." If adopted, Ordinance No . 2951-2017 will clarify sections of the City's code that refer to performance evaluation rating categories to be consistent with the City's Performance Evaluation form and practices . Page 56 of 146 Sponsored by: Administration CITY OF KENAI ORDINANCE NO. 2952-2017 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, ACCEPTING AND APPROPRIATING ADDITIONAL FUNDS FROM THE FEDERAL AVIATION ADMINISTRATION FOR THE SMALL TAXIWAYS AND AIRCRAFT TIE-DOWN REHABILITATION 2015-2016 PROJECT. WHEREAS, during the reconstruction phase of the small taxiways project, an issue arose with the general aviation flood lights and Ordinance 2940-2017 appropriated $ 12, 799 for design and construction costs to resolve the underground wiring issues; and, WHEREAS, City Administration requested a fee proposal to upgrade the six (6) general aviation flood lights with new foundations, poles, and LED fixtures ; and, WHEREAS, the cost of the additional construction is $ 73,554; and , WHEREAS, the Administration has received confirmation these services are eligible for 93 . 75% FAA reimbursement,$ 68,957, with the 6.25% of$ 4,597 to be provided by the City of Kenai; and, WHEREAS, previous appropriations of Airport funds are sufficient to provide the required local match of$ 4,597; and, WHEREAS, the recommendation from City Administration is to increase the construction contract to Knik Construction Co., by$ 73 ,554 for the total contract amount of $1,854,634.40 to complete this scope of work. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows : Section 1. Form : That this is a non-code ordinance . Section 2. That the City Manager is authorized to accept additional grant funding in the amount of$ 68,957 from the Federal Aviation Administration and to execute grant agreements and to expend grant funds to fulfill the purpose and intent of this ordinance. Section 3. That estimated revenues and appropriations be increased as follows: Airport Improvements Capital Project Fund -Airfield Drainage Project: Increase Estimated Revenues - FAA Grants $68.957 Increase Appropriations : Construction $68,957 New Text Underlined; [DELETED TEXT BRACKETED) Page 57 of 146 Ordinance No. 2952-2017 Page 2 of 2 Section 4. That the City Manager is authorized to execute a change order with Knik Construction, Co., in the amount of$ 73,554 to complete this scope of work. Section 5. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application. Section 6. Effective Date : That pursuant to KMC 1.15 .0?0(f), this ordinance shall take effect upon adoption. ENACTED BY THE COUNCIL OF THE CITY OF KENAI , ALASKA, this 17th day of May, 2017. ATTEST: Sandra Modigh, City Clerk Approved by Finance JL BRIAN GABRIEL SR., MAYOR Introduced: May 3, 2017 Enacted: May 17, 2017 Effective: May 17, 2017 New Text Underlined; !DELETED TEXT BRACKETED] Page 58 of 146 'Vtff ~ t111th a Pa~~ tt'tj t111th a Fatfl.l"e " 210 FidalgoAve, Kenai, Alaska 99611-7794 Telephone: (907) 283-7535 I Fax: (907) 283-3014 www.kenai.city MEMORANDUM TO: THROUGH: FROM: DATE: SUBJECT: Mayor Brian Gabriel and Kenai City Council Paul Ostrander, City Managery.O . Mary L. Bondurant -Airport Manager April 24, 2017 Ordinance 2952-2017, Appropriating Additional Funds from the FAA for the 2016 Small Taxiway & Aircraft Tie down Project When the flood lights along taxiways G & H were removed to establish a temporary taxiway for the above project, it was discovered that all the underground electrical was out of compliance with National Electric Standards so they could not be reconnected to the existing wire . Ordinance 2940-2017, effective February 15, 2017, appropriated $ 12, 799 to Wince-Corthell-Bryson for the design and construction administration of new flood lights. This ordinance appropriates $73,554 to Knik Construction, Co., to remove and salvage the six wood poles and light fixtures and furnish and install six light poles with LED fixtures, and connect new wiring that conforms to NEC and IBC Standards of Installation. These lights are very important to aircraft operating on these taxiways and I recommend approval of this change order. If you have any questions, please contact me . Attachment Page 59 of 146 Sponsored by: Administration CITY OF KENAI ORDINANCE NO. 2953-2017 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, ACCEPTING AND APPROPRIATING ADDITIONAL FUNDS FROM THE FEDERAL AVIATION ADMINISTRATION FOR THE 2016 IMPROVED AIRPORT DRAINAGE PROJECT. WHEREAS, seasonal ponding has been occurring across the north end of the airfield creating a waterfowl attractant in the approach to Runway 20R; and, WHEREAS, this was also identified as a safety hazard to landing aircraft in the Airport's Wildlife Hazard Assessment Plan prepared by the USDA; and, WHEREAS, the cost of the additional construction work to eliminate the seasonal ponding is $31,591, and additional engineering services is$ 9, 730, for a total of $41,321; and, WHEREAS, the Administration has received confirmation these services are eligible for 93. 75% FAA reimbursement, $ 38, 738 with the 6.25% of$ 2,583 to be provided by the City of Kenai; and, WHEREAS, previous appropriations of Airport funds are sufficient to provide the required local match of $2,583; and, WHEREAS, the recommendation from City Administration is to increase the construction contract to Peninsula Construction, Inc., by $ 31,591 for the total contract amount of $363,316 and increase the design and engineering contract to Wince-Corthell-Bryson by $ 9,730 for a total amount of$ 46,590; NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: Section 1. Form : That this is a non-code ordinance. Section 2. That the City Manager is authorized to accept additional grant funding in the amount of $38, 738 from the Federal Aviation Administration and to execute grant agreements and to expend grant funds to fulfill the purpose and intent of this ordinance. Section 3. That estimated revenues and appropriations be increased as follows: Airport Improvements Capital Project Fund -Airfield Drainage Project: Increase Estimated Revenues - FAA Grants $38,738 Increase Appropriations: Construction $38, 738 New Text Underlined ; [DELETED TEXT BRACKETED] Page 60 of 146 Ordinance No. 2953-2017 Page 2 of 2 Section 4. That the City Manager is authorized to execute change orders with Peninsula Construction, Inc. and Wince-Corthell-Bryson in the amounts of $31,591 and $9,730 respectively to complete this scope of work. Section 5. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application. Section 6. Effective Date: That pursuant to KMC 1.15.0?0(f), this ordinance shall take effect upon adoption . ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 171h day of May, 2017 . ATTEST: Sandra Modigh, City Clerk Approved by Finance 1~ - BRIAN GABRIEL SR., MAYOR Introduced: May 3, 2017 Enacted: May 17, 2017 Effective: May 17, 2017 New Text Underlined; [DELETED TEXT BRACKETED] Page 61 of 146 'lftff~ «1/th a Pair~ Ot'tf t11ith a h.tfl.l<'e" 210 Fidalgo Ave, Kenai, Alaska 99611-7794 Telephone: (907) 283-7535 I Fax: (907) 283-3014 www.kenai.city MEMORANDUM TO: THROUGH: FROM: DATE: SUBJECT: Mayor Brian Gabriel and Kenai City Council Paul Ostrander, City Manager ?. c::> • Mary L. Bondurant -Airport Manager April 24, 2017 Ordinance 2953-2017, Appropriating Additional Funds from the FAA for the 2016 Improved Airport Drainage Project Three ponding areas located next to the east-west service road across the north end of the airfield are attracting water fowl. This area is located in the approach to Runway 20R creating a hazard to aircraft. It is also documented in the Wildlife Hazard Assessment conducted by the USDA that several areas on the airport property were identified as wetlands and hazardous wildlife attractants. It was recommended that these areas be eliminated and/or modified to reduce their attractiveness to hazardous wildlife species. The FAA recommended this project be added to the current Airport Drainage Project. City Administration reviewed a proposal for the additional drainage improvements that included construction costs of $31,591 to Peninsula Construction and engineering costs of $ 9, 730 to Wince-Corthell-Bryson to be reasonable . I recommend appropriating the funds necessary to correct this hazard to aircraft. If you have any questions, please contact me. Attachment Page 62 of 146 Sponsored by: City Clerk CITY OF KENAI ORDINANCE NO. 2954-2017 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING KENAI MUNICIPAL CODE CHAPTER 10.30 – RECORD RETENTION, TO UPDATE AND CLARIFY THE FORM, OPERATIONS, AND PROCEDURES REGARDING THE PUBLIC RECORDS MANAGEMENT SCHEDULE AND RECORD RETENTION POLICY, AND MAKING OTHER HOUSEKEEPING CHANGES. WHEREAS, Alaska Statute Chapter 40.21, Management or Preservation of Public Records, requires the orderly management of current local public records and preservation of noncurrent public records that have permanent historical value; and, WHEREAS, the goal of records management is to professionally manage record information from the time records are received or created throughout their processing, distribution, and use, to placement in a storage and retrieval system until the final disposition of destruction or long-term archival; and, WHEREAS, it is appropriate to review and modify policies from time to time to ensure the needs of the City of Kenai are continually being met and submit them to Council for adoption pursuant to KMC 10.30.040. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: Section 1. Form: That this is a code ordinance. Section 2. Amendment of Section 10.30.020 of the Kenai Municipal Code: That Kenai Municipal Code, Section 10.30.020 – Responsible Official, is hereby amended as follows: 10.30.020 Responsible O[O]fficial. (a) The Clerk for the City of Kenai shall be responsible for the development and implementation of a Public Records Management Schedule and Record Retention Policy [PROGRAM]. In establishing retention periods for each records class, the City Clerk shall be advised by the City Departments as to the administrative/operating requirements for records. (b) The Clerk for the City of Kenai shall create a record disposal form for documentation of disposal of city records and maintain a permanent log of all record types that have been destroyed, and require department records coordinators to submit a record disposal form prior to record disposal. Page 63 of 146 (c) The Clerk for the City of Kenai shall cause records stored in computer memory device systems to be reviewed, stored, and destroyed in the same manner and at the same time as if the records were maintained in written, printed, or photographic form. (d) The Clerk for the City of Kenai may replace any original record which is lost, worn, or damaged, by a certified copy of that record, and the replacement shall be considered an original record for all purposes. Section 3. Amendment of Section 10.30.030 of the Kenai Municipal Code: That Kenai Municipal Code, Section 10.30.030 – Record retention schedule, is hereby amended as follows: 10.30.030 Public Records Management Schedule and R[R]ecord R[R]etention Policy [SCHEDULE]. (a) The City Clerk shall cause to be prepared a Public Records Management Schedule and Record Retention Policy [SCHEDULE] listing each series [CLASS] of public record for which there is an administrative, legal or historical use requirement. The Public Records Management Schedule and Record Retention Policy [SCHEDULE] shall be formatted to provide the following information for each record series [CLASS]: (1) The authority for any mandated retention period; (2) The retention period [FOR BOTH IN-OFFICE AND STORAGE PERIODS]; [(3) THE RECOMMENDED MAINTENANCE MEDIA (PAPER, MICROFORM, MAGNETIC) FOR EACH RECORD CLASS;] (3)[(4)] The department and office having custodial responsibility for the record [DURING THE PRESCRIBED IN-OFFICE RETENTION PERIOD]; (4)[(5)] Any special destruction methods to be employed for sensitive records. (b) Upon completion of the Public Records Management Schedule and Record Retention Policy [SCHEDULE], the City Clerk shall submit same to the Council for adoption. Section 4. Amendment of Section 10.30.040 of the Kenai Municipal Code: That Kenai Municipal Code, Section 10.30.040 – Retention program operation, is hereby amended as follows: 10.30.040 Public Record Management Schedule and Record Retention Policy [PROGRAM] O[O]peration. Upon Public Records Management Schedule and Retention Policy [SCHEDULE] approval by Council, the City Clerk shall apply the Policy [SCHEDULE]; specifically, the City Clerk shall: (a) Promulgate the Policy [SCHEDULE] to all departments and require each department to assign a departmental retention coordinator to assist the Clerk in Policy [SCHEDULE]implementation and maintenance. (b) Establish the procedures for routine transfer of records for storage and/or destruction. (c) Tabulate the records prepared for destruction, including the appropriate Schedule citation, and shall approve each destruction. (d) Provide witness certification to each authorized destruction. Page 64 of 146 (e) Prepare and promulgate procedures for Policy [SCHEDULE] maintenance; i.e., addition of new record series’ [CLASSES], deletions and modification of retention periods. All new record series [CLASS] additions and any reduction in retention periods shall be submitted to Council for adoption. Section 5. Amendment of Section 10.30.050 of the Kenai Municipal Code: That Kenai Municipal Code, Section 10.30.050 – Support provisions, is hereby amended as follows: 10.30.050 Support provisions. (a) To the extent permitted by Federal, State and City statute and regulations, electronic document imaging, microforms and/or magnetic media may be the official record media where such an application satisfies use requirements and/or contributes to maintenance efficiencies. Section 6. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application. Section 7. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect 30 days after adoption. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 17th day of May, 2017. BRIAN GABRIEL SR., MAYOR ATTEST: ___________________________________ Sandra Modigh, City Clerk Introduced: May 3, 2017 Enacted: May 17, 2017 Effective: June 17, 2017 Page 65 of 146 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Sandra Modigh, City Clerk FROM: Jamie Heinz, Deputy City Clerk DATE: 04/27/2017 SUBJECT: Record Retention Amendments – Ordinance 2954-2017 The Clerk’s Office, in conjunction with the City Attorney, recognized the need for the City’s record retention schedule and policy to be brought up to date and improved upon. Through the process of reviewing Alaska Statutes, the Local Government Model Record Retention Schedule, and schedules and policies from other municipalities, it was decided that reformatting the document was also necessary. In order to make the needed changes to the formatting and incorporate the technologies currently used, it was determined a few minor code amendments were also needed. It is the intent of the Clerk’s Office to bring forward the record retention schedule and policy, which has been created with and approved by each of the City’s department heads, for your consideration and adoption together with the enactment of this ordinance. Your consideration is appreciated. Page 66 of 146 Sponsored by: Administration CITY OF KENAI ORDINANCE NO. 2955-2017 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, ACCEPTING AND APPROPRIATING A GRANT FROM THE SOUTHERN REGION EMERGENCY MEDICAL SERVICES (EMS) COUNCIL TO PROVIDE STAFF TRAINING. WHEREAS the Southern Region EMS Council has provided a grant in the amount of $1000.00 to assist the City of Kenai Fire Department with the cost of providing an annual Paramedic Refresher Course to department personnel; and, WHEREAS, appropriation of this grant for its intended purpose is in the best interest of the City of Kenai and its residents; and, NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows : Section 1. Form : That this is a non-code ordinance. Section 2. That the City Manager is authorized to accept a grant from the Southern Region EMS Council in the amount of $1000.00 for expenditures related to providing an annual Paramedic Refresher Course to department personnel and to execute grant agreements and to expend grant funds to fulfill the purpose and intent of this ordinance .. Section 3. That the estimated revenues and appropriations be increased as follows: General Fund Increase Estimated Revenues : Fire Grants $1.000 Increase Appropriations : Fire -Professional Services $1.000 Section 4. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even w ithout such part, provision, or application. Section 5. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect upon adoption. New Text Underlined; [DELETED TEXT BRACKETED] Page 67 of 146 Ordinance No. 2955-2017 Page 2 of 2 ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 17th day of May, 2017. ATTEST: Sandra Modigh, City Clerk Approved by Finance: ""t-L BRIAN GABRIEL SR, MAYOR Introduced: May 3, 2017 Enacted: May 17·, 2017 Effective: May 17, 2017 New Text Underlined; [DELETED TEXT BRACKETED] Page 68 of 146 "tftff ~ «1/th a PaJ'~ Ct'tf «1/th a Fu.tan " 210 Fidalgo Ave, Kenai, Alaska 99611-7794 Telephone: (907) 283-7535 I Fax: (907) 283-3014 www.kenai.city MEMORANDUM TO: THROUGH: FROM: DATE: SUBJECT: Mayor Brian Gabriel and Kenai City Council Paul Ostrander, City Manager ?, c.::::> - Jeff Tucker, Fire Chief April 24, 2017 Southern Region EMS Grant -Ordinance No. 2955-2017 The City of Kenai Fire Department was awarded an EMS grant in the amount of $1,000.00 from the Southern Region EMS Council. This grant will be used to pay for the department's portion of our annual Paramedic refresher course. Page 69 of 146 Sponsored by: Administration CITY OF KENAI ORDINANCE NO. 2956-2017 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING KENAI MUNICIPAL CODE 13.30.080 -OPERATING A VEHICLE IN A PROHIBITED AREA, AND ASSOCIATED APPENDIX II, TO ALLOW FOR LIMITED OPERATION AND MAINTENANCE OF THE EXISTING AIR STRIP ON A PORTION OF TRACT B, DRAGSETH SUBDIVISION 2016 ADDITION, ACCORDING TO THE OFFICIAL PLAT THEREOF, FILED UNDER PLAT NUMBER 2016-22, AND A PORTION OF GOVERNMENT LOTS 9-15 INCLUSIVE, SECTION 7, TOWNSHIP 5 NORTH, RANGE 11 WEST, AND A PORTION OF THE SE % SE % NE %, SECTION 7, TOWNSHIP 5 NORTH, RANGE 11 WEST, SEWARD MERIDIAN ALL RECORDED IN THE KENAI RECORDING DISTRICT, THIRD JUDICIAL DISTRICT, STATE OF ALASKA. WHEREAS, Kenai Municipal Code 13.30.080 prohibits the operation of vehicles in certain areas, including vegetated areas on the South Beach as delineated in the map in Appendix II to KMC 13.30.080; and, WHEREAS, on City property in the area KMC 13.30.080 prohibits operation of motor vehicles, there is an airstrip that has had intermittent historical use; and, WHEREAS, as part of a grant funded project to improve access to, and infrastructure on the South Beach, the City purchased property that included a house and other improvements to build a new road to the beach on part of the purchased property as an alternative to building the road across sensitive wetlands; and, WHEREAS, the City has subdivided the purchased property and is retaining the portion needed to provide improved access and intends to sell the portion of the property with the house and improvements; and, WHEREAS, the prospective purchaser of the property has conditioned the purchase of the property with the house and other improvements on the purchase of adjacent City property containing the airstrip, with the intent to utilize the airstrip for fixed wing aircraft and airships; and, WHEREAS, the Council finds that the sale of the property to the prospective purchaser is in the best interest of the City as it will likely promote new economic opportunities; and, WHEREAS, in order to allow legal use of the airstrip intended to be purchased , KMC 13.30.080 must be amended; and, WHEREAS, Kenai Municipal Code 13 .30.080 can be amended to allow for operation and use of the airstrip, conditioned through a conditional use permit, in a manner which is consistent with the intent of the prohibition on the operation of motor vehicles which is to protect sensitive vegetated areas. New Text Underlined ; [DELETED TEXT BRACKETED] Page 70 of 146 Ordinance No . 2956-2017 Page 2 of 4 NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: Section 1. Form: That this is a code ordinance. Section 2. Amendment of Section 13 .30.080 of the Kenai Municipal Code : That Kenai Municipal Code, Section 13.30.080 -Operating a Vehicle in a Prohibited Area, is hereby amended as follows : 13.30.080 Operating a Vehicle in a Prohibited Area. (a) North Shore. (1) It is unlawful for any person to operate a motorized vehicle in the area indicated on the map appended to this chapter, designated as Appendix II, and made a part thereof, excepting the established roads within the area of beach road and a portion of Spruce Street and further excepting transit of this prohibited area entering or leaving at the designated area at the beach road and directly to the northwest to the westerly boundary of the prohibited area which may be entered or exited only in the tidal area. City, state or public safety (police, fire, ambulance, rescue) vehicles may operate in the prohibited area if necessary for public safety purposes . (2) Further, specifically prohibited is the operation of a motor vehicle on any portion of the bluff slope in the area above so designated as prohibited, as is indicated on the map appended to this chapter, designated as Appendix II, and made a part thereof. (3) Operation of motorized vehicles in that portion of the prohibited area southerly and easterly from the east end of Beach Road may be permitted for the purpose of working on beached boats and barges provided that a permit is secured prior to such operation. Applications for such permits shall be filed with the City Manager or his designated appointee setting forth details as to the work to be performed and the dates of such performance . The City Manager may issue such permit, if he finds it reasonable under the circumstances, for a specified period of time, which may be extended on application showing good cause for such extension. ( 4) Operation of motorized vehicles in that portion of the prohibited area described in KMC 13 .30 .080(a) above and entry to such area at a point or points other than at the natural end of Spruce Street may be permitted for the purpose of working on the Sewage Treatment Plant and on utility facilities provided that a permit is secured prior to such operation. Applications for such permits shall be filed with the City Manager or his designated appointee setting forth details as to the work to be performed and the dates of such performance, the areas in which such operations are required and the point or points of entry required to expedite the work. The City Manager shall cond ition suc h permit or permits on repair or reconditioning of the beach area or bluff and may require a bond in such amount and with such terms, with or without cash deposit or other surety, as he may deem advisable to secure such repair or reconditioning or to reimburse the City for damages to the areas concerned . (b) South Shore. It is unlawful for any person to operate a motorized vehicle on the vegetated area at all times except for City authorized use. operation and maintenance of the existing airstrip located in the area designated in Appendix II. The area from the intersection of Royal Street and the South Beach south to the City Limits on the South Beach is also closed to motorized vehicles from July 5th to Ju ly 31st each year. The areas closed to motor vehicles are delineated by the map appended to this chapter, designated as Appendix II, and made a part thereof. City, state or public safety (police, fire, ambulance, rescue) vehicles may operate in the prohibited area if necessary the public safety, maintenance, repair cleaning and upkeep purposes . New Text Underlined ; [DELETED TEXT BRACKETED] Page 71 of 146 Ordinance No. 2956-2017 Page 3 of 4 Mouth of Kenai R iver Old Canne ry Road Appendix II Kenai Municipal Code 13 .30.080 Operating a Vehicle in a Prohibited Area =-=-=-Line of Bluff ~No M otorized Vehicles Al lowed ~ No Motorized Vehicles Allo wed July 5 -July 31 (Unless Extended ) ~N o Motorized Vehicles Allowe other than for use . m aintenan e and operations of an airst p as authorized by the c· New Text Underlined ; [DELETED TEXT BRACKETED] Page 72 of 146 Ordinance No. 2956 -2017 Page 4 of 4 Section 3. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application. Section 4. Effective Date : That pursuant to KMC 1.15.070(f), th is ordinance shall take effect 30 days after adoption . ENACTED BY THE COUNCIL OF THE CITY OF KENAI , ALASKA, this 17th day of May, 2017. ATTEST: Sandra Modigh, City Clerk BRIAN GABRIEL SR., MAYOR New Text Underlined ; [DELETED TEXT BRACKETED] Introduced: May 3, 2017 Enacted : May 17, 2017 Effective: June 16, 2017 Page 73 of 146 'll/t'ftije «1/ti o. Po.~~ Ct'tj «1/ti o. Fatu.P-e " 210 Fidalgo Ave, Kenai, Alaska 99611-7794 Telephone: (907) 283-7535 I Fax: (907) 283-3014 www.kenai.city MEMORANDUM TO: FROM: DATE: SUBJECT: Mayor Brian Gabriel and Kenai City Council Paul Ostrander, City Manager ? D April 27, 2017 Ordinance 2956-2017 In 2000 the City adopted Ordinance No. 1877-2000 that prohibited the operation of vehicles in certain areas, including vegetated areas on the South Beach as delineated on the map in Appendix II to KMC 13.30.080. A portion of this area also includes an airstrip that has had intermittent historical use. As a part of a grant-funded project to improve access and facilities on the South Beach, the City purchased property that included a house and other improvements. This purchase prov ided the necessary land to construct a new road for access to the South Beach without significantly impacting wetlands in the area. The City subsequently subdivided the property, creating Tract A, Dragseth Subdivision, 2016 Addition (Tract A), that contains the house and associated improvements with the intent of selling the property and residence . A prospective buyer has made an offer on Tract A and has conditioned the offer on the purchase of City property containing the airstrip (airstrip parcel) with the intent to utilize the airstrip for fixed wing aircraft and airships. To allow for this intended use , KMC 13 .30.080 will need to be amended by allowing City authorized use, operation , and maintenance of the airstrip parcel. If Ordinance 2956-2017 is passed, the City authorized uses would be provided through the issuance of a conditional use permit in a manner that is consistent with the intent to protect sensitive vegetated areas while providing adequate use of the airstrip to support the operations of the prospective buyer . Your consideration of this ordinance is appreciated . Page 74 of 146 Sponsored by: Administration CITY OF KENAI ORDINANCE NO. 2957-2017 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AUTHORIZING THE SALE OF TRACT A, DRAGSETH SUBDIVISION 2016 ADDITION, ACCORDING TO THE OFFICIAL PLAT THEREOF, UNDER PLAT NO. 2016-22, FILED IN THE KENAI RECORDING DISTRICT, THIRD JUDICIAL DISTRICT, STATE OF ALASKA, INCLUDING ALL IMPROVEMENTS THEREON, TO PRL LOGISTICS INC., AND PROVIDING THE SALE PROCEEDS TO THE STATE OF ALASKA FOR REIMBURSEMENT INTO GRANT NO. 15-DC- 078 FOR USE BY THE CITY TO CONTINUE ENHANCING ACCESS AND OTHER RELATED IMPROVEMENTS TO THE SOUTH BEACH . WHEREAS, the City manages dip net access issues on its beaches which includes conflicts between local property owners and dip net fishery participants; and, WHEREAS, in 2014 the City Council appropriated $1,900,000 of State Grant funds (Grant No. 15-DC-078) via Ordinance No. 2771-2014 for the purpose of designing and constructing a new roadway for access to the South Beach and related improvements to help alleviate such conflicts; and, WHEREAS, after numerous meetings with affected property owners and state and federal agencies weighing alternatives for improved access, including obtaining permitting for building a new road across City owned wetlands, the City with State approval, authorized the purchase of seven abutting parcels from Ark Properties, LLC for the purpose of constructing a new road with minimal wetland disturbance through Resolution No. 2015-50 (Substitute); and, WHEREAS, the City needed only a portion of the newly acquired property for the purpose of road construction; and, WHEREAS, the State's approval of the utilization of Grant funds for the purchase of the property was conditioned on proceeds from the sale of the unneeded property and improvements thereon going back into the grant for the City's use for South Beach access and related improvements; and, WHEREAS, the City completed construction of a new road providing beach access and a re-plat of the seven parcels allowing the City to maintain the land needed for the road and maximizing the value of the unneeded land and improvements for resale; and, WHEREAS, the City is expending significant funds maintaining the land and improvements for re- sale and the nature of the improvements limits the available market; and, WHEREAS, PRL Logistics, Inc., (PRL) has made an offer to purchase the property based on numerous conditions; and, New Text Underlined ; [DELETED TEXT BRACKETED] Page 75 of 146 Ordinance No. 2757-2017 Page 2 of 3 WHEREAS, PRL 's business plan is to potentially use the property for office space, lodging, restaurant/bar, event hosting and airport related activities to support its bus iness, including the operation of an airship; and , WHEREAS, all of these uses w ill require the approval by City Planning Comm ission of conditional use permits given the current zoning of the property; and, WHEREAS, PRL's offer is also conditioned on the abi lity to purchase adjacent City owned land for the use of an existing ai rstrip for fix winged and airship uses; and, WHEREAS, PRL 's acqu isition of the adjacent property will require a subd ivision and conditional use permit; and, WHEREAS, PRL has previously refurbished and repurposed old cannery property in the City demonstrating a responsibility towards environmental sensitivity and respect for the history of the City; and , WHEREAS, it is anticipated that PRL's acquisition of additional property in the City will create new economic opportunities and will be managed in a responsible manner; and, WHEREAS, the City Council finds that it is in the best interest of the City to sell Tract A, Dragseth Subdivision 2016 Addition, according to the official plat thereof, under Plat No. 2016-22, filed in the Kenai Recording District, Third Judicial District, State of Alaska, including all improvements thereon to PRL for the purchase price of $825,000 and to finance the sale for up to six months at a rate of four percent with a down payment of $123 ,750; and, WHEREAS, the financing provisions will allow the City to utilize the balance of the purchase funds for South Beach access and related improvements in 2018; and, WHEREAS, in accepting PRL 's offer, the City Council agrees to work cooperatively with PRL for the future sale of the adjacent City owned lands that include the airstrip; and ; WHEREAS, the property being sold is unique in that it is neither General Fund Land , nor Airport Land , but instead land held by the State Grant, therefore City Code provisions governing General Fund Land and Airport Land do not apply; and WHEREAS, the City Council finds that it is in the best interest of the City to sell the property for the aforementioned reasons to PRL without a recent appraisal. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI , ALASKA, as follows: Section 1. Form : That th is is a non-code ordinance. Section 2. Statement of Ownership: That the City of Kenai is the owner of Tract A, Dragseth Subdivision 2016 Addition , according to the official plat thereof, under Plat No. 2016-22, filed in the Kenai Recording Distr ict, Third Judicial District, State of Alaska , includ ing all improvements thereon . Section 3. Public Purpose and Best Interest Findings: That the property is not needed for future public purposes. The sale of the Property is in the best interests of the City as it is intended New T ext Und erlin ed ; [D ELETED TEXT BRACKETED] Page 76 of 146 Ordinance No. 2757-2017 Page 3 of 3 to promote new economic opportunities and the proceeds will be used to continue development of access to the South Beach and related improvements in compliance with Grant No. 15-DC- 078. Section 4. Authorization of Sale: That the Kenai City Council hereby authorizes the City Manager to sell the City-owned lands described as Tract A, Dragseth Subdivision 2016 Addition, according to the official plat thereof, under Plat No. 2016-22, filed in the Kenai Recording District, Third Judicial District, State of Alaska, including all improvements thereon, under the terms established in the attached Purchase and Sale Agreement including the financing conditions contained therein, and subject to the additional essential terms and conditions of sale on page 6 of the Purchase and Sale Agreement. Section 5. Title: That title shall be conveyed by warranty deed . Section 6. Proceeds of Sale: That should a sale of the property be finalized, all revenues from the sale shall be provided to the State of Alaska for Grant No. 15-DC-078 for the City's use for South Beach access and related improvements. Section 7. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application. Section 8. Effective Date: That pursuant to KMC 1.15.0?0(f), this ordinance shall take effect 30 days after adoption. (Emergency ordinances and ordinance making, repealing, transferring, or otherwise changing appropriations, shall go into effect immediately upon passage unless they specify a later time: "That pursuant to KMC 1.15.0?0(f), this ordinance shall take effect upon adoption"). ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 17th day of May, 2017 . ATTEST: Sandra Modigh, City Clerk BRIAN GABRIEL SR., MAYOR New Text Underlined ; [DELETED TEXT BRACKETED] Introduced: May 3, 2017 Enacted: May 17, 2017 Effective: June 16, 2017 Page 77 of 146 DocuSlgn Envelope ID: E1EDF990-C421-400C-AOE5-AOB780AF1BFC Kenai Peninsula Purchase and Sale Agreement (Residential) This form authorized for use ONL V by active Real Estate Licensee Subscribers of Alaska Multiple Listing Service, Inc. ALASKA IVILS Dated 04/2512017 Brokerage Names AK MLS ID# Brokerage Ph Listing Brokerage: ----------------____ _ Selling Brokerage: RE/MAX of the Peninsula AK12001 907-283-5888 MLS# _____ _ licensee Names License # Direct Ph Cell Ph Email Address Listing 1: ----------- Listing 2: ----------- Selling 1: Glenda Feeken AK12001 907-252-2743 907-252-2743 glenda@teamfeeken.com Selling 2: ----------- Licensee Relationships: The Seller and Buyer acknowledge the following: l 2 3 4 5 6 7 8 9 IO II 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 a) Listing Licensee 1 CJ is representing the Seller only (may assist the Buyer); or CJ is assisting both the Buyer and Seller as a Neutral Licensee; or CJ is assisting the Seller without representation. Listing Licensee 2 CJ is representing the Seller only (may assist the Buyer); or CJ is assisting both the Buyer and Seller as a Neutral Licensee; or CJ is assisting the Seller without representation . b) SelUng Licensee 1 l(I is representing the Buyer only (may assist the Seller); or CJ is assisting both the Buyer and Seller as a Neutral Licensee; or CJ is representing the Seller only (may assist the Buyer); or CJ is assisting the Buyer without representation. Selling Licensee 2 CJ is representing the Buyer only (may assist the Seller); or CJ is assisting both the Buyer and Seller as a Neutral Licensee; or CJ is representing the Seller only (may assist the Buyer); or D is assisting the Buyer without representation. 1) Buyer(s), PRL Logistic, INC. , hereby deposit(&) earnest money of Five Thousand Dollars ($ 5,000 )Dollars evidenced by: D Cash CJ Personal Check D Cashier's Check CJ Note, Due on (date) JO Or on acceptance of offer shall be held in trust by CJ Listing Broker ~ Selling Broker as earnest money on and part payment for the purchase of real property and improvements situated in Kenai (city or area) 99611 (zip), in the ._K...,e._.na .... i ________ _ Recording District, State of Alaska, described as: 2=2=7~0'""R~o=y,_,a=l~S~tree-==t,__ ____________________________ (Address) .,.D ..... ra~g ... s,...et.._hwS...,u,..b._.2...,0.._1....,6uA;;iid,...d.._n._I._.ra......,ct..,.A:>...-___________________ (Legal) (the Property). 2) Purchase Price: E_i_g_ht_H_un_d_r_ed_T_w_e_nty~F_iv_e~T_h_o~u_s"'"'a~nd ______________ 00/100 ($-"8=2~5,"""0~00"'-__ _,)Dollars Minimum Down Payment (including earnest money shown above) ............................. $ or% _12_3_,_75_0 ______ _ 3) Terms: Buyer CJ does lJ does not intend to occupy Property as Buyer's primary residence. Property Type (check one): ~ Single Family CJ Condominium CJ PUD CJ Duplex D Triplex D Fourplex CJ Other __________ _ Check one below. a) CJ All Cash Offer: No loan is needed to purchase the Property; Buyer shall provide Seller written third-party documentation verifying sufficient funds to close no later than (date) (time). Seller shall have three (3) business days after receipt of documentation to notify Buyer, in writing, if the verification of funds is not acceptable. If Buyer fails to provide such documentation, or if Seller finds verification of funds unacceptable, Seller may terminate this Purchase Agreement. Failure of Seller to provide Buyer written notice of objection shall be considered ac- ceptance of verification of funds. b) lJ New Financing: Recording is contingent upon Buyer obtaining financing as follows: Check the appropriate block(s) below: CJ Conventional D FHA -(Attach Required Addendums) f orm 70753. Originated 11/04. Revised 07/1 s . © 2015 Ala&ka Multiple Li6ting Service. Inc. (AK MLS) All rights reserved. I I S.119r(•) lnltlale Page 78 of 146 DocuSign Envelope ID: E1EDF99D-C421-400C-AOE5-AOB780AF1BFC I 2 3 4 5 6 7 8 9 IO 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 Kenai Peninsula Purchase and Sale Agreement Regarding Property Described As: Address: 2270 Royal Street Legal (the Property): Dragseth Sub 2016 Addo Tract A This form authorized for use ONLY by active Real Estate Licensee Subscribers of Alaska Multiple Listing Service, Inc. ALASKA MLB D VA -(Attach Required Addendums) D Alaska Housing Finance Corporation under the following program ---------------- 0 RD -Rural Development DOther -----------------------------------i) On or before (date) the Buyer will provide the Seller a letter from ------------------(lender) verifying the following items: (1) a satisfactory credit report, (2) acceptable income, (3) source of down payment, (4) availability of funds to close, and (5) that loan approval Dis or Dis not contingent on the lease, sale or recording of a sale of any property. ii) Buyer agrees to make a complete loan application with Lender, and provide verification to the Seller from the Lender by (date}. iii) If Buyer does not reveal a fact or contingency to the Lender and this purchase does not record because of that nondisclosure after initial application, the Buyer shall be in default. iv) In the event Buyer fails to provide Seller with documentation required in (i) and (ii) by the respective dates above, this Purchase Agreement may be terminated at the election of the Seller. If the Seller terminates this agreement, Seller to provide written notice to Buyer within_ (3 business days if not filled in) days from the dates noted in (i) and (ii) above . v) Buyer must obtain Seller's approval in writing of any change in Lender, type of financing or allocation of closing costs. vi) Buyer agrees to pay all fees and satisfy all conditions. in a timely manner, required by the Lender for pro- cessing of loan application. Buyer agrees the interest rate offered by Lender is not a contingency of this Pur- chase Agreement, so long as Buyer qualifies for the financing herein agreed. Availability of any financing pro- gram may change at any time, Brokers and Licensees are not responsible for representations or guarantees as to availabifity of any loans, project and/or property approvals or interest rates. ~ D Seller Financing: 701 250 i:iayabl~ at$ 3,347.87 • or more, per month including _4 __ % interest per annum or ~years . 8~-.u ~CU:i -~ ct.wt t£·CUCJmX.'°"v -.,j 4--\ &O ,1 The parties are encouraged to negotiate the lfnportant tenns of seller financing now, and to include such terms in Paragraph 25, or in a separate addendum . Important terms may include form of financing documents (con- tract, note and trust deed or mortgage), due on sale clause, prepayment option or penalty, remedies upon de- fault, etc., if any. iii) Buyer shall provide Seller with documentation, as required by Seller, verifying Buyer's ability to purchase ac- cording to the price, terms and conditions of the Purchase Agreement by • (date). iv) Seller Financing is contingent upon the Seller's approval of the above documentation on or before ---------·• (date). In the event Buyer fails to obtain Seller's approval, this Purchase Agreement shall automatically terminate. 4) Costs: The costs shall be paid by Buyer (B) or Seller (S) as indicated below. Costs payable by both Buyer and Seller to be shared equally . Buyer to pay for any fees due to requirements of the lender not covered below. ITEM B S ITEM B S ITEM B S ITEM B S Lender Origination Fee Credit Reoort Owner Title Insurance A Smoke Detectors Commitment Fee Reserves AL TA Title Insurance CO Detectors Discount Points Preoaid Interest Recordina Fee x x As-Built Survev I Recert MIPIPMlldefault insurance! Escrow Closlna Fee x x VA Fundina Fee Sales Tax Annual Escrow Fee ~ Tests for Health Authoriru At proval: Rural Dev. Loan Fee Resale Certificate I Bank Set-Uo Fee l( x Well Flow iQuari+iM Lender Doc. Preo Fee Pub6c Offer Statement AssumefTransfer Fee Basic Water Quatitv HOA Transfer Fees Assessments Levied PIWAWater Flood Certification HOA Assessments Assessments Pendina Other Specified W1ter Test Tax RMriAtnltion HOA Questionaint Attomev Doc Preo Fee lead/Nitrate Test Home Wa1111ntv Aooralsal Brokeraae Fee y Sendclns......,tion DEC Annroval Fees Form 70753. Originated 11/04. Revised 7115 . © 2015 Naska Multiple Listing Service, Inc. (AK MLS) All rights reserved. .... , .. , ~.: ..... Selter(s) Initials Page 79 of 146 DocuSlgn Envelope ID: E1EDF99D-C421-400C-AOE5-AOB780AF1BFC Kenai Peninsula Purchase and Sale Agreement Regarding Property Described As: Address: 2270 Ro_yal Street legal (the Property): Dragseth Sub 2016 Addo Tract A ALASKA This fonn authorized for use ONLY by active Real Estate Licensee Subscribers of Alaska Multiple Listing Service, Inc. M LS 1 5) Funds At Recording: 2 Seller and Buyer agree before recording can take place, funds provided to the Closing Agent shall be in the following 3 form: cash; interbank electronic transfer; money order; a certified check or cashier's check drawn on a financial institu- 4 tion located in the state; or any above combination that permits the Closing Agent to convert the deposit to cash not lat- 5 er than the next business day (AS 34.80.040). 6 7 6) Prorations: 8 Property truces, interest on loans being assumed, prepaid rents. and HOA fees, if applicable, shall be prorated as of the 9 date of recording. 10 11 7) Title/Survey: 12 a) The Seller shall convey title by statutory warranty deed or __________________ _ 13 b) The Property may be subject to restrictions contained on the Plat; in the Deed; in covenants, conditions, and re- 14 strictions; or other documents noted in the preliminary title report. 15 c) On or before (date), Seller will, at Seller's sole expense, order 16 the report and exceptions from First American Title (Title Company) and furnish them to Buyer. 17 d) Upon receipt of the report and exceptions, Buyer shall have business days (three (3) if not filled in) 18 within which to notify Seller, in writing of any matters disclosed in the report, which are unacceptable to Buyer. Buy- 19 er's failure to timely object, in writing shall constitute acceptance of the report. 20 e) If, within business days (three (3) if not filled in) following receipt of the objections, Seller fails to re- 21 move or correct the matters identified in the objections, or does not give written assurances reasonably satisfactory 22 to Buyer that they will be removed or corrected prior to the recording date this transaction shall automatically termi- 23 nate. After recording, Buyer shall receive an owner's standard form policy of title insurance insuring marketable title 24 in the Property to Buyer in the amount of the purchase price, free and clear of the objections and all other title ex- 25 ceptions agreed to be removed as part of this transaction . 26 1) Mineral rights may not pass with title to the Property. 27 g) Neither Seller nor Seller's licensee make any representation as to the location of the lot corners or boundary lines. 28 Buyer accepts sole responsibility for identifying and locating the comers and boundary lines of the lot. 29 h) Survey, as-built survey, or recertification of survey shall be dated on or after , (date) OR 30 Q as required by Lender. 31 32 8) Documents/Disclosures Required By Law: 33 a) Lead-Based Paint Warning: Unless exempt. if the improvements on the Property include one or more residential 34 dwelling(s) constructed prior to January 1 , 1978, the Buyer shall not be obligated under the tenns of this Purchase 35 Agreement unless a completed Lead-Based Paint Disclosure form is signed by Seller and the Seller's real estate li- 36 censee(s). which must occur before the parties sign this Purchase Agreement. (See EPA pamphlet Protect Your 37 Family From Lead in Your Home for more Information.) If applicable, Buyer acknowledges receipt of the lead- 38 based paint disclosure signed by the Seller prior to signing this offer. 39 b) Buyer Ill has 0 has not received a copy of the State of Alaska Residential Real Property Transfer Disclosure 40 Statement. 41 c) Buyer Ill has CJ has not received a copy of the Alaska Real Estate Commission Consumer Disclosure. 42 d) Sex Offenders: The State of Alaska requires the registration of sex offenders residing within the State of Alaska 43 (AS12.63.010). The Alaska Department of Public Safety is charged with maintaining the registry created. For more 44 infonnation, contact the Alaska State Trooper Post, Municipal Police Department or on-line at the State of Alaska 45 /Department of Public Safety (http://www.dps.state.ak.us) Internet site by clicking on the Sex Offender Registry. As 46 a buyer, it is your responsibility to independently investigate and verify for yourself the acceptability of a property 47 with respect to these issues. (AS34.70.050). If Buyer elects to tenninate this agreement based upon this in- 48 vestigation, Buyer must provide Seller with written notice on or before NIA . 49 e) The State of Alaska maintains a list of properties that have been identified by Alaska law enforcement agencies as 50 illegal drug manufacturing sites, including meth labs. For more information on this subject and to obtain a list of 51 these properties, go to http:/lwww.dec.state.ak.us If Buyer elects to tenninate this agreement based upon this 52 investigation, Buyer must provide Seller with written notice on or before NIA . 53 f) If a Resale Certificate or a Public Offering Statement is required by law for the transfer of this Property, it is hereby 54 agreed that the time for the Buyer to review these documents begins on the date the Buyer acknowledges in writing 55 the receipt of these documents. In the event that this Purchase and Sales Agreement terminates and Buyer 56 has received a Resale Certificate or Public Offering Statement, the Buyer agrees to deliver the Resale Cer- 57 tificate or Public Offering Statement to Seller or Seller's Licensee. 58 Form 70 753. Originated 11/04. Revi&ed 7/1U . © 2015 Alaska Multiple Listing Service. Inc . (AK MLS) All rights reserved. Page 3 of 8 ~l~itials I I Soller(a) Initials Page 80 of 146 DocuSign Envelope ID: E1EDF99D-C421-400C-AOE5-AOB780AF1BFC Kenai Peninsula Purchase and Sale Agreement Regarding Property Described As: ~ ... Address: 2270 Beyal St reet Legal (the Property): Qragseth Sub 2016 Addo Tract A ALASKA This form authorized for use ONLY by active Real Estate Licensee subscribers of Alaska Multiple Listing Service, Inc. M LS I 9) Property Condition: 2 a) Until the date of possession or recording, whichever is earlier, Seller agrees to maintain the Property in its current 3 condition, subject to ordinary wear and tear. 4 b) Buyer and Seller understand that Brokers and/or Licensees are not experts in the areas noted below and Buyer and 5 Seller should rely solely on experts Who are qualified in these areas. Brokers and/or their Licensees make no rep- 6 resentations regarding the Property, including whether the residence or other improvements meet current building 7 codes, safety or other requirements; and assume no duty to investigate or verify any disdosures made by Seller. 8 c) In the event the improvements on the Property are destroyed or materially damaged prior to recording, then, at the 9 Buyer's option, this Purchase and Sale Agreement shall terminate upon Buyer's written notice to Seller. IO 11 10) Appraisal: 12 a) Q Buyer Q Seller agrees to advance funds for the appraisal fee to Lender by • (date) and 13 authorizes the Lender to order by , (date). 14 b) The completion of Purchase D is D is not contingent upon the appraisal of the Property being equal to or greater 15 than the agreed upon Purchase Price. I 6 c) If the completion of Purchase is contingent upon the appraisal, and the Property does not appraise for the Purchase 17 Price or greater, the parties shall have __ business days (three (3) if not filled In) from receipt of appraisal to re- 18 negotiate the Purchase Price. In the event the parties do not reach agreement on the Purchase Price within this 19 time, the Purchase Agreement shall automatically terminate. (In the event of FHANA loans, the FHANA Amenda- 20 tory Clause shall supersede). 21 d) In the event the appraisal generates Lender-required repairs, repairs to be negotiated between Seller and Buyer. 22 e) If Seller and Buyer have not reached an agreement regarding Lender-required repairs, within business 23 days (three (3) if not filled in) of Seller's receipt of the appraisal, this Purchase Agreement shall automatically termi- 24 nate. 25 f) If repairs/remedies are subject to re-inspection and approval prior to the recording date, Buyer shall pay for first re- 26 inspection . Thereafter, Seller to pay for all additional re-inspection fees . 27 28 11) Recording/Possession: 29 a) This sale shall be recorded on 06/21/2017 , (date) or earlier by mutual agreement. Prior to recording, 30 Buyer and Seller agree to sign all reasonably necessary closing documents and to perform the reasonable condi- 31 tions required by the Closing Agent and Buyer's Lender. 32 b) If obtaining new financing, and : 33 i) If Buyer is unable to obtain a loan commitment from agreed Lender by Recording Date, through no fault of 34 Buyer, Buyer to provide written notice to Seller immediately upon Buyer learning of their inability to obtain loan 35 commitment from Lender. This Purchase Agreement shall terminate automatically unless Seller and Buyer 36 agree to modifications by Amendment to this Purchase and Sale Agreement. 37 ii) If Buyer fails to provide notice of inability to obtain loan commitment by such date (11 a), or as modified by 38 Amendment, and this transaction does not record , through no fault of the Seller, Buyer shall be in default. 39 c) Seller shall deliver possession of the Property to the Buyer upon confirmation of recording or 40 Q under attached occupancy agreement or Q other----------------- 41 d) Unless otherwise agreed in writing, Seller shall remove all debris, personal property not sold to Buyer, and leave 42 the Property in dean condition . Seller shall provide keys and/or means to operate all locks , including but not limited 43 to: mailboxes, security systems , alarms, garage door openers and any portable control devices for accessing the 44 Property upon c-0nfirmation of recording . 45 e) Buyer may walk through the Property prior to recording to determine there have been no material changes to the 46 condition of the Property. 47 f) If Property is a unit in a condominium or other common interest community, Buyer may be required to pay a deposit 48 to the homeowners' association (HOA) to obtain access to HOA facilities. 49 50 12) Tenant Occupied Property: 51 Seller to provide rental/lease agreement(s) including lead based paint disclosures(s) (if applicable) within three (3) busi- 52 ness days of fully executed Purchase Agreement which are subject to Buyer's approval within the time set forth in Par- 53 agraph 1 of the Kenai Peninsula Right and Duty of Inspection Addendum. Seller and Buyer shall comply with the regu- 54 lations contained in the Alaska Landlord/Tenant Act. All refundable deposits shall be transferred to the Buyer at record- 55 ing . Seller to provide Estoppels Certlficate(s) prior to closing . 56 57 Form 70753. O riginated 11/04. Revi5ed 7/1 5. © 2015 Alaska Multiple Usting Service. Inc. (AK MLS) All r ights rese rved. P.,. "" C« ,'.,w ... Soller(s) Initial& Page 81 of 146 DocuSign Envelope ID: E1EDF99D-C421-400C-AOE5-AOB780AF1BFC I 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 Kenai Peninsula Purchase and Sale Agreement Regarding Property Described As: Address: 2270 Royal Street Legal (the Property): Qragsetb Sub 2016 Addo Tract A This form authorized for use ONLY by active Real Estate licensee Subscribers of Alaska Multiple listing Service, Inc . ALASKA MLS 13) Insurance: It is the Buyers' responsibility to determine whether homeowners' or property owners' insurance can be obtained for this property 00 or before as need before dosing and provide evidence of availability of same as may be required prior to recording . 14) Carbon Monoxide Detectors: Carbon Monoxide (CO) is a colorless , odorless , and potentially fatal gas produced by the burning of fossil fuel. advised to use CO detectors in your property and have heating systems inspected and serviced regularly. Statute AS 18.070.095{a). 15) Home Warranty Protection Plans: You are Alaska Home warranty protection plans (HWPP) may be available to buyers and/or sellers for residential properties, including multi-family units, during and after recording of this transaction . However, the HVVPP does not replace the need for an independent home inspection . The Real Estate Brokerages do not warrant or provide any product or service in connec- tion with the HVVPP. In the event Buyer and/or Seller choose not to purchase a HWPP prior to recording, this paragraph shall serve as acknowledgement Buyer and/or Seller wish to waive their right to purchase the plan. 16) Brokerage Notice Regarding Earnest Money Deposits & Refunds: Under Alaska law (12 ACC 64.250(7)), earnest money must be deposited into the Real Estate Brokerage trust account in a timely manner. Alaska Statutes and Regulations also require real estate brokerages to ensure the bank has cleared the earnest money deposit before funds can be released . If an offer is not accepted, or Purchase and Sale Agreement terminates, there may be up to fourteen (14) business days delay in refunding the earnest money to the Buyer, to allow the Buyer's check to dear the Real Estate Brokerage Trust Account. If Buyer provides written documen- tation from their bank showing funds have been deposited in Broker's Trust Account. Alaska Statutes & Regulations require the Broker refund the earnest money to the Buyer not more than one business day after the Buyer's check has cleared. 17) Tennlnation: In the event this Purchase Agreement is terminated as provided for in this Purchase Agreement, absent a default by the Buyer. all earnest money shall be returned to the Buyer and all parties shall be relieved of their obligations as set forth herein . 18) Time of the Essence and Remedies: Seller and Buyer understand that time is of the essence . If any obligation is not performed or waived as provided, or if any note or check received as earnest money or any other payment is not paid, honored or tendered when due, there shall be the following remedies: a) If Buyer is in Default: Except as provided in Paragraphs 3, 10c, 10e, 11b, 19 and 20, Seller's remedies shall be limited to liquidated damages in the amount of the earnest money set forth in Paragraph 1 above . It is agreed that sudl payments and things of value are liquidated damages and are Seller's sole and only remedy for Buyer's failure to perform the obligations of this contract. The parties agree that Seller's actual damages in the event of Buyer's default would be difficult to measure, and the amount of the liquidated damages herein provided for is a reasonable estimate of such damages. b) If Seller Is in Default: Buyer may elect to treat this Purchase Agreement as canceled, in which case all earnest money paid by Buyer hereunder shall be returned and Buyer may recover such damages as may be proper, or Buyer may elect to treat this Purchase Agreement as being in full force and effect and Buyer shall have the right to specific performance or damages, or both . 19) Earnest Money Dispute: Notwithstanding any termination of this Purchase Agreement, Buyer and Seller agree that , in the event of any contro- versy regarding the earnest money held by Broker, the Broker may: a) Make the determination as to the cause of the failure of this Purchase Agreement and distribute the earnest money accordingly after giving notice to Cooperating Broker, or b) Require the parties to execute an agreement for the release of the earnest money, in which case the earnest mon- ey shall be distributed in accordance with such agreement. If the parties are unwilling to execute an agreement for the release of earnest money, the parties shall submit the matter to mediation as provided below, and if mediation fails , the broker may file an interpleader action in a court of competent jurisdiction requesting the court to determine the distribution of the earnest money. Broker shall be entitled to an award from the earnest money of full reasona- ble attorneys' fees and costs . Form 70753 Originated 11/04. Revised 7/15. © 2015 Alaska Multiple listing Service, Inc. (AK MLS) All rights reserved . Page 5 of 8 [~ '~ltl•I• Seller(a) Initials I I Page 82 of 146 DocuSign Envelope ID: E1EDF99D-C421-400C-AOE5-AOB780AF1 BFC 1 2 3 4 5 6 7 8 9 JO 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 Kenai Peninsula Purchase and Sale Agreement Regarding Property Described As: ~·, Address: 2270 Ro.yal Street Legal (the Property): Dragseth Sub 2016 Addo Tract A This form authorized for use ONLY by active Real Estate Licensee Subscribers of Alaska Multiple Listing Service, Inc. ALASKA MLS c) In the event the Broker makes a determination as to the cause of the failure of the Purchase Agreement and dis- tributes the Earnest Money accordingly, the parties hereto agree to indemnify and hold the Broker harmless from any and all claims, liabilities or losses that either party may incur as a result of the Broker's decision. 20) Mediation: If a dispute arises relating to this Purchase Agreement, between or among Buyer and Seller, and is not resolved prior to or after recording, the parties shall first proceed in good faith to submit the matter to mediation. Costs to be shared by mutual agreement between or among the parties. Unless otherwise agreed in mediation, the parties retain their rights to proceed to arbitration or litigation. If the parties have not agreed to mediation within 30 days from date of original dis- pute, it will be assumed that they do not wish to mediate the dispute and the Broker will act accordingly . 21) Costs and Expenses: In the event of any arbitration or litigation relating to this Purchase Agreement, the arbitrator or court shall award to the prevailing party all reasonable costs and expenses, including attorney fees. 22) Broker: a) It is mutually agreed by all parties that the Brokers and/or their Licensees shall not be held liable in any manner whatsoever for damages arising from defaults or acts by or omissions of Buyer or Seller. b) Both Buyer and Seller acknowledge Brokers are participants of the Alaska Multiple Listing Service, Inc., (AK MLS) and are authorized to report details of the sale to AK MLS. 23) Authorization to Release lnfonnation to Brokers: Buyer and Seller authorize any Lender, escrow agent, closing agent. appraiser. home inspector. surveyor and any other related party to this sale to furnish and provide any and all information and copies of documents related to this sale to both the Listing and Selling Brokers and their Licensees . 24) Foreign Investment in Real Property Tax Act: The Foreign Investment in Real Property Tax Act ("FIRPTA") requires every person who purchases real property locat- ed within the United States from a •toreign person" to deduct and withhold from the Seller's proceeds ten percent (10%) of the gross sales price, with certain exceptions, and to pay the amount withheld to the Internal Revenue Service. A "foreign person" includes a non-resident alien individual, foreign corporation, foreign partnership, foreign trust, and for- eign estate. Seller and Buyer agree to execute and deliver, as appropriate, any Instrument, affidavit or statement, and to perform any acts reasonable or necessary to comply with FIRPTA. 25) Attachments: The following attachments are hereby made part of this Purchase Agreement: see attached addendum 26) Additional Tenns and Conditions: Sales price to be $825,000 Down payment to be 15% ($123,750 .00) Seller Financing : $701 ,250.00 payable at $3,347.87, or more. per month including 4% interest per annum with balloon payment due in 6 months or until December 31 whichever is earlier. Due on sale clause, prepayment option and remedies upon default to be included in documents. Offer Contingent upon special use permits to be put in place for professional office, lodging, restaurant, airport, assemblies on mansion, also contingent on agreement of purchase of acreage for dirt runway from tax parcels #04910128 and 04910051 and permitfor Airport. Insurance on property naming City of Kenai as additional insured to be provided by buyer before closing . Offer subject to Council Approval CJ See attached addendum for additional terms and conditions. Form 70753. Orfginated 11104 . Rovisod 7/1f5. © 2015 Alaska Multiple Listing Service, Inc. (AK MLS) All rights reserved. Pege6 of8 Seller(s) Initials Page 83 of 146 DocuSign Envelope ID: E1EDF99D-C421-400C-AOE5-AOB780AF1BFC Kenai Peninsula Purchase and Sale Agreement Regarding Property Described As: Address: 2270 Royal St reet Legal (the Property): Qragsetb Syb 2016 Addo Tract A ALASKA This form authorized for use ONL V by active Real Estate licensee Subscribers of Alaska Multiple listing Service, Inc. M LS 1 27) Acceptance/Notice of Acceptance/Delivery: 2 This offer may be accepted by being signed, or electronically signed, by the other party with no changes, and such ac- 3 ceptance shall be effective when a complete copy of the fully signed agreement is delivered to the other party by any 4 one of the following methods: 5 a) Hand delivery to the other party or the other party's licensee or the other party's Brokerage; 6 b) Via email to the other party or the other party's licensee, but only if the person transmitting the email receives elec- 7 tronic confirmation that the email was received by the intended recipient; or 8 c) Via facsimile to the other party or the other party's licensee, but only if the transmitting fax machine prints a confir- 9 mation that the transmission was successful. IO 11 This Purchase Agreement may be signed in multiple counterparts with the same effect as if all parties signed the same 12 documents. 13 14 Delivery of a photocopy, telefax, electronic, carbon or carbooless copy of a signed, or electronically signed, original of 15 this Purchase Agreement or any other documents referred to herein shall be treated the same as delivery of the origi- 16 nal. 17 18 28) Entire Agreement: 19 This Purchase Agreement, the Residential Real Property Transfer Disclosure Statement, and any attached addenda 20 constitute the whole agreement between the parties. No warranties , including any warranty of habitability, agreements 21 or representations have been made or shall be binding upon either party unless herein set forth. This document may 22 not be modified except in writing and signed by the Parties. 23 a) Buyer agrees to purchase and pay for the above-described Property on the terms and conditions herein stated . 24 Receipt of a copy of this Purchase Agreement is hereby acknowledged . Buyer understands this is a legally binding 25 contract. 26 b) Buyer agrees that recording of the sale will constitute an acknowledgment that the premises and Its sys- 27 terns are acceptable at the time the sale is recorded. 28 29 In the event the Seller or Seller's Licensee has failed to notify Buyer or Buyer's Licensee, of the Seller's signed ac- 30 ceptance prior to May 17 .20 17 , (date) __ a.m. _5 __ p.m. (time}, this offer shall terminate. 31 32 This Purchase Agreement bas significant legal and financial consequences. You are advised to seek independent legal and 3 3 financial counsel, including tax advice from a tax attorney or CPA, before signing . The Brokers and Licensees cannot give 34 legal, tax or financial advice. 3 5 Buyer Si~~J~~~ 1 :[~ 995BEAB28E94470 ... 2 . ____________ _ 3. __________ _ Date 4/25/2017 Time:. ________ _ __ a.m. __ p.m. 36 P rint name(s) to be on documents ------------------------------- 3 7 38 Address ______________________________________ _ 39 40 41 Phone _________ E-Mail ----------------------------~ 42 Name of Selling Broker's Office ------------------------------- 43 44 45 46 licensee Signature. ______________ Licensee Signature---------------- Selling Licensee #1 Fax Number: Selling Licensee #2 Fax Number:----------- Selling Licensee #1 Email : Selling Licensee #2 E~il : ------------ Fonn 70753. Originated 11/04. Revised 7 /15. I /'1:)fjJ / © 2015 Alaska Multiple Listing Service , Inc (AK ML S) All ri9hts reserved Page 7 of 8 L~ ~Initi als I I Setler(s) Initials Page 84 of 146 DocuSign Envelope ID: E1EDF99D-C421-400C-AOE5-AOB780AF1BFC Kenai Peninsula Purchase and Sale Agreement Regarding Property Described As: Address: 2270 Royal Street Legal (the Property): Dragseth Sub 2016 Addo Tract A ALASKA This form authorized for use ONLY by active Real Estate Licensee Subscribers of Alaska Multiple listing Service, Inc. M LS J Brokerage Fee; 2 A real estate broker may be compensated by any party to a real estate transaction, by a third party, or by one or more of the 3 parties to the transaction splitting or sharing the compensation. Seller and/or Buyer agree to pay forthwith at recording a 4 brokerage fee in cash as stated in the Personal Services Agreement. (i.e . Listing Agreement. Buyer's Agreement) 5 6 Seller Response: (sign only one!) 7 8 • Seller accepts the foregoing offer as written. Seller agrees to sell and convey the Prop- 9 erty described on the terms and conditions herein stated. Seller understands this Is a 10 legally binding contract. II Seller Signature(s) 1: 2 . 3 . Date nme: --a.m. __ p.m. 12 13 • Seller makes the attached Counter Offer 14 Seller Signature(s} 1: 2 . 3 . Date Time: --a.m . __ p.m . 15 16 • Seller hereby rejects the foregoing offer and declines to make a Counter Offer 17 Seller Signature(s} 1:. ____________ ~ 2 . ___________ _ 3 . _________ _ Date ___________________ Time : ________ _ __ a.m. __ p.m . 18 Print name(s} ----------------------------------- 19 Address ___ 2_2_z_o_R_o_y_a_1_s_tr_ee_t ___________________________ _ 20 21 Phone _______ E,-Mail ---------------------------- 22 23 Name of Listing Broker's Office ------------------------------ 24 25 Licensee Signature _____________ Licensee Signature-------------- 26 27 Listing Licensee #1 Fax Number: --------Listing Licensee #2 Fax Number :---------- 28 29 Listing Licensee #1 Email: ----------Listing Licensee #2 Email:------------ 30 Fonn 70 753. O riginated 11/04. Revised 7/15. © 2015 Ala~ka Multiple Listing Service, Inc. (AK MLS) All rights reserved . Seller(s) Initials Page 85 of 146 DocuSign Envelope ID: E1EDF99D-C421-400C-AOE5-AOB780AF1BFC Addendum or Amendment to the Purchase and Sale Agreement This form authaized for use ONLY by active Real Estate Licensee Subscribers of Alaska M!Jtiple Listing Service, Inc. ALASKA MLS Date 0412512017 2 In reference to the Purchase and Sale Agreement between: 3 4 _,_p._.R ... L...,L .... 0'¥g,..js.,.lic......_.INl.1lo<C'----------------------------' the Buyer(s), and _C.=..:;ityt.....=.of;...;K;..;.e;;.;n.:.:a:.;..i ___________________________ ,the Seller(s), dated 5 0412512017 . covering the real property commonly known as: 6 Address: 2270 Royal Street 7 Legal (the Property): Dragseth Sub 2016 Addo Tract A 8 the undersigned Buyer(s) and Seller(s) hereby agree to the following (check onlv one): 9 ~ Addendum -to be used when more space is needed on the Purchase and Sale Agreement 1 O a Amendment-to be used only when changing an existing Purchase and Sale Agreement 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 Escrow to be set at First Nat ional Bank Dining room table and chairs , plus 3rd floor desk to remain Seller to pay 3% brokerage fee Buyer request city turn water back on in mansion before closing and repair leaks if any. To the extent any provision of this Addendum/Amendment is Inconsistent with the provisions of the Purchase and Sale Agreement, the terms of this Addendum/Amendment shall control. All other Terms and Conditions to remain the same. This Addendum/Amendment shall expire unless the party making this Addendum/Amendment is notified of its acceptance no later than 05/17/2017 (date) 5 CJ a .m . fQ p .m . (time). Notification of acceptance of this Amendment/Addendum may be made only by one of the methods specified in the paragraph titled 'Acceptance/Notice of Acceptance/Delivery' as contained in Purchase and Sale Agreement. Date: 4 /25 12017 Time : Cl a .m . Cl p.m. ~Buyer 0 S 3: --...,...--.------ Brokerage • J_censee(s) ... 'SjCo Mo!¢: ,,9 -~'....) rsigned accepts the above Amendment/Addendum Upon execution by both parties, this agreement becomes an integral part of the referenced Purchase and Sale Agreement. Date : a Buyer 0Seller1 : ----------- Time:--------- 2: ~~~-----~ CJ a .m . 0 p .m . 3:~~~~--~- Brokerage _________________ Licensee(s) ------------------" Form 70718. Revised 03113. © 2015 Alaska Multiple Listing Service, Inc. (AK MLS) All r ights reserved . Page 86 of 146 't;lfltije «1/th a. Pa.~~ Ct'tj «1/th a. f"att1?e '' 210 Fidalgo Ave, Kenai , Alaska 99611-7794 Telephone: (907) 283-7535 I Fax: (907) 283-3014 www. kenai.city MEMORANDUM TO: FROM: DATE: SUBJECT: Mayor Brian Gabriel and Kenai City Council Paul Ostrander, City Managef? 0 · April 27, 2017 Ordinance 2957-2017 Tract A, Dragseth Sudivision , 2016 Addition is a City-owned parcel which contains land and a residence. The City acquired the parcel utilizing State grant funds to improve access and facilities on the South Beach . Tract A contains 6.303 acres of land, an approximately 7,500 square foot residence, and several outbuildings not needed for a public purpose. The City has been attempting to sell Tract A, whereby proceeds from the sale will go back into the grant for the Cities use for South Beach related improvements. PRL Log istics has made an offer to purchase Tract A with the condition that the purchase include the adjacent airstrip to the north for the use of fixed wing aircraft and airships in support of their business operations . Additionally, because Tract A is currently zoned Rural Residential , PRL Logistics will be required to apply for a conditional use permit that would allow their intended uses of office space , lodging , restaurant I bar, event hosting , and airport-related uses. The offer by PRL Logistics is for a purchase price of $825,000, financing the sale fo r up to 6 months with an interest rate of 4% and a down payment of $123,750 . If approved, closing on the purchase is tentatively scheduled for June 19, 2017. The conditional use permit process for both Tract A and for the airstrip should be completed prior to closing. If the conditions in those permits do not sufficiently support their business needs or if they are not permitted to purchase the airstrip from the City, PRL Logistics has the option of cancelling the closing and receiving their earnest money payment back. Your consideration of this ordinance is appreciated . Page 87 of 146 'Vttfar «1/t/t, a Pa~t, e~ «1/t/t, a Fa.tfV'e JJ 210 FidalgoAve, Kenai, Alaska 99611-7794 Telephone: (907) 283-75351 Fax: (907) 283-3014 www.kenai.city MEMORANDUM TO: THROUGH: FROM: DATE: SUBJECT: Mayor Brian Gabriel and Kenai City Council Paul Ostrander, City Manager 7, (?'" Mary L. Bondurant -Airport Manager April 19, 2017 United Parcel Service Co., Inc. -Special Use Permit United Parcel Service Co., Inc.is requesting a special use permit for aircraft parking on a paved area consisting of approximately 4,000 square feet. Attached is a special use permit effective one year from July 1, 2017 to June 30, 2018. The FY18 rate is based on the table below passed by City Council at the May 18, 2016 Council meeting. Apron Rate Increases to Arrive at Market in 6 years Apron Lease Rate FY15 $1.80s.f. x .08 $ 0.144 FY2016 $ 0.357 FY2017 $ 0.528 FY2018 $ 0.699 FY2019 $ 0.870 FY2020 $ 1.041 FY2021 $ 1.210 Airport Commission reviewed the request at the April 14, 2017 meeting and recommends Council approve the request. Does Council recommend the City Manager enter into a Special Use Permit with United Parcel Service Co., for aircraft parking on the apron? Page 88 of 146 SPECIAL USE PERMIT The CITY OF KENAI (City) grants to UPSCO United Parcel Service Co., Inc. (Permittee), whose address is 6200 Lockheed Ave., Anchorage, AK 99502, a Special Use Permit to conduct aeronautical and/or aviation-related activities at the Kenai Municipal Airport subject to the requirements and the conditions set forth below. 1. Premises. Permittee shall have the non-exclusive right to use 4,000 square feet as described in the attached Exhibit A for the uses identified in this Permit. 2. Term. The term of this Permit shall be for one year commencing on July 1, 2017 and ending on June 30, 2018. Regardless of the date of signature, this Permit shall be effective as of July 1, 2017. 3. Permit Fees. Permittee shall pay the following fees for the privileges extended to Permittee under this Permit: A. Permit: Permittee shall pay a monthly fee of $233 plus applicable sales tax. B. Proximity Card for Gate Access: In addition to the general permit fee, Permittee shall pay a deposit of One Hundred Dollars ($100) for the use of each proximity card issued to Permittee by City to allow for gate access to the Airport to conduct the uses permitted hereunder. City shall refund this deposit to Permittee when the card is returned to City. City may exercise a right of offset to apply the deposit to any outstanding balance due to City from Permittee at the termination of this Permit. C. Other Fees: City may assess additional fees for aviation or aviation support activities and uses not defined in this Permit. If a fee has not been established for those activities or services, a fee will be established by the Airport Manager. Payment shall be directed to City of Kenai , ATTN: Finance Department, 210 Fidalgo A venue, Kenai, AK 99611 and a courtesy notice of payment provided to Airport Administration at 305 North Willow Street, Suite 200, Kenai, AK 99611 . All permit fees are payable in advance of each month unless otherwise provided. In the event of delinquency, interest at the rate often percent (10%) per annum, and penalty of ten percent (10%) shall also be due (KMC 1.75 .010). Interest shall accrue from the date due until the date paid in full. Failure to timely make payments is grounds for termination of this Permit. (See~ 22 , Termination) 4. Use. City authorizes Permittee's non-exclusive use of the Premises for the fo llowing purpose(s): Special Use Pennit-UPSCO (Aircraft Loading & Parking) Page 1of8 Page 89 of 146 Aircraft Loading and Parking. NOTE: This permit does not guarantee the exclusive use of the area identified in Exhibit A. City reserves the right to re-assign Permittee, upon reasonable notice, to other areas as airport needs may require. Permittee shall have the right of ingress and egress to the Airport using only designated gate access locations (which may require a proximity card) for the use of the Premises. This Permit, and any access rights allowed hereunder, are for Permittee's use only and may not be transferred or assigned. Use of the Premises by Permittee is subject to the reasonable administrative actions of the City of Kenai for the protection and maintenance of the Premises and of adjacent and contiguous lands or facilities and is further subject to the following conditions: Permittee acknowledges that the use granted herein is subject to the Kenai Municipal Code and municipal regulations governing the Kenai Municipal Airport and as those laws and regulations may be amended from time to time. Solicitation of donations or operation of a business or other commercial enterprise not contemplated by this Permit is prohibited without the written consent of City. No person may repair an aircraft, aircraft engine, propeller, or apparatus in an area of the Airport other than that specifically designated for that purpose by the Airport Manager or designated representative. The Airport Manager or designated representative reserves the right to designate reasonable areas where aircraft owners may perform services on their own aircraft. 5. Airport Operations. Permittee shall ensure that the Permittee, its employees, and guests, and anyone else acting by, on behalf of, or under the authority of Permittee on the Airport, that perform any repairs or activities authorized under this Permit act in a manner that ensures the safety of people and the Airport, the protection of public health and the environment, and the safety and integrity of the Airport and any premises on the Airport. Permittee shall employ qualified personnel and maintain equipment sufficient for the purposes of this provision. The Permittee shall immediately notify City of any condition, problem, malfunction, or other occurrence that threatens the safety of the Airport, the safety of persons using the Airport, the public health or the environment, or the safety or integrity of any premises on the Airport. 6. Inspection. The Federal Aviation Administration (FAA) and/or City shall have the right and authority to inspect, at any time for any purpose whatsoever, the Premises as well as any and all equipment used by the Permittee under this Permit. Special Use Permit-UPSCO (Aircraft Loading & Parking) Page 2of8 Page 90 of 146 7. Coordination with Airport Management. Permittee shall coordinate all activities on the Airport with Airport Management, or a designated representative, and shall abide by all reasonable decisions and directives of the Airport Management regarding general use of the Airport by Permittee. 8. Radio Transmitting Equipment. Permittee shall discontinue the use of any machine or device which interferes with any government-operated transmitter, receiver, or navigation aid until the cause of the interference is eliminated. 9. Insurance. Permittee shall secure and keep in force adequate insurance, as stated below, to protect City and Permittee. Where specific limits are stated, the limits are the minimum acceptable limits. If Permittee's insurance policy contains higher limits, City is entitled to coverage to the extent of the higher limits. A. Commercial General Liability insurance, including premises, all operations, property damage, personal injury and death, broad-form contractual, with a per- occurrence limit of not less than $1,000,000 combined single limit. The policy must include an endorsement under which the insurer extends coverage to Permittee's fuel handling activities. The policy must name the City as an additional insured. B. Worker's compensation insurance with coverage for all employees engaged in work under this Permit or at the Premises as required by AS 23.30.045. Permittee is further responsible to provide worker's compensation insurance for any subcontractor who directly or indirectly provides services to Permittee under this Permit. C. Commercial Automobile Coverage with not less than $1,000,000 combined single limit per occurrence. This insurance must cover all owned, hired, and non- owned motor vehicles the Permittee uses on the Airport. The policy must name the City as an additional insured. D. All insurance required must meet the following additional requirements: l. All policies will be by a company/corporation currently rated "A-" or better by A.M. Best. IL Permittee shall submit to the City proof of continuous insurance coverage in the form of insurance policies, certificates, endorsements, or a combination thereof, and signed by a person authorized by the insurer to bind coverage on its behalf. 111. Permittee shall request a waiver of subrogation against City from Special Use Permit-UPSCO (Aircraft Loading & Parking) Page 3of8 Page 91 of 146 Permittee's insurer and the waiver of subrogation, where possible, shall be provided at no cost to City. 1v. Provide the City with notification at least 30 days before any termination, cancellation, or material change in insurance coverage of any policy required hereunder. v . Evidence of insurance coverage must be submitted to City by July 1, 2017. The effective date of the insurance shall be no later than July 1, 2017. City may increase the amount or revise the type of required insurance on written demand without requiring amendments to this Permit. City will base any increase or revision on reasonable and justifiable grounds. Within two weeks of the written demand, Permittee shall submit to City evidence ofinsurance coverage that meets the requirements of the City. 10. Assumption of Risk. Permittee assumes full control and sole responsibility as between Permittee and City for the activities of Permittee, its personnel, employees, and persons acting on behalf of or under the authority of the Permittee anywhere on the Airport. Permittee shall provide all proper safeguards and shall assume all risks incurred in its activities on and access to the Kenai Municipal Airport and its exercise of the privileges granted in this Permit. 11. Indemnity, Defend, and Hold Harmless Agreement. Permittee agrees to fully indemnify, defend, and hold harmless, the City of Kenai, its officers, agents, employees, and volunteers from and against all actions, damages, costs, liability, claims, losses, judgments, penalties, and expenses of every type and description, including any fees and/or costs reasonably incurred by the City's staff attorneys and outside attorneys and any fees and expenses incurred in enforcing this provision (hereafter collectively referred to as "Liabilities"), to which any or all of them may be subjected, to the extent such Liabilities are caused by or result from any negligent act or omission or willful misconduct of the Permittee in connection with or arising from or out of Permittee's activities on or use of the Premises, Permittee's access to the Kenai Municipal Airport, and/or Permittee's exercise of the privileges granted in this Permit. This shall be a continuing obligation and shall remain in effect after termination of this Permit. 12. Fuel Spill Prevention and Response Plan. Areas of the Apron have been seal coated to protect asphalt from adverse effects of petroleum product spills. The City requires that Permittee provide adequate absorbent materials and tools available on the Premises and at the airport in order to maintain a fuel spill and response capability. Permittee shall be liable for any damage caused by and costs associated with any spill, the cleanup of any spill, or the Special Use Permit-UPSCO (Aircraft Loading & Parking) Page 4of8 Page 92 of 146 discharge of petroleum products or hazardous materials due to Permittee's use of the Apron and/or use of the Airport. Permittee shall provide to City an acceptable fuel spill prevention and response plan and will maintain fuel spill and response capability. Permittee further agrees to have a copy of the fuel spill prevention and response plan located in the Permittee's fuel dispensing equipment at all times. Permittee must comply with the Airport's Storm Water Pollution Prevention Plan as appropriate to Permittee's activities. Permittee shall not store any personal property, solid waste, petroleum products, Hazardous Material as defined by 14 CFR § 171.8, hazardous waste (ignitable, corrosive, reactive, or toxic) or any hazardous substance on any portion of the Airport. Permittee is aware that there are significant penalties for improperly disposing of the Hazardous Materials and other waste and for submitting false information regarding Hazardous Materials, including the possibility of fine and imprisonment for knowing violations. Permittee shall immediately remove the material in the event of spillage or dripping of gasoline, oil, grease, or any other material which may be unsightly or detrimental to the pavement or surface in or on any area of the Airport. Permittee may not construct or install any above-ground or underground fuel storage tanks or dispensing systems at the Airport. No person shall smoke on an aircraft-parking ramp , inside an aircraft hangar, or within fifty feet (50') of any aircraft fuel facility or fuel truck. Permittee is subject to FAA Advisory Circular 150/5230-4 Aircraft Fuel Storage, Handling, and Dispensing on Airports , the National Fire Protection Associations' "Standard for Aircraft Fueling Servicing" in NFPA 407 (1996 version), and the current version of the International Fire Codes. All inspections of fuel facilities , by City or other regulating entities to which Permittee is subject, shall be conducted to assure compliance with the fire safety practices listed in these referenced documents. 13. Hazardous Substances and Materials. Permittee shall conform and be subject to the requirements of 14 CFR § 139.321 regarding the handling and storage of hazardous substances and materials. 14. No Discrimination. Permittee shall not discriminate against any person because of the person 's race, creed, color national origin, sex, age , or handicap. Permittee recognizes the right of City to take any action necessary to enforce this requirement of the Permit. Permittee will furnish services provided under this Permit on a reasonable , and not unjustly Special Use Permit-UPSCO (Aircraft Loading & Parking) Page 5of8 Page 93 of 146 discriminatory, basis to all users of the Airport and shall charge reasonable, and not unjustly discriminatory, prices for each product or service provided at the Airport. 15. Licenses and Permits. Permittee shall obtain and maintain all required federal, state, and local licenses, certificates, and other documents required for its operations under the Permit. Permittee shall provide proof of compliance to City upon request by the City. 16. Compliance with Law/Grant Assurances. This Permit, and Permittee's activities conducted under this Permit, is subject to all executive orders, policies and operational guidelines and all applicable requirements of federal, state, and City statutes, ordinances, and regulations in effect during the term of this Permit. Further, Permittee shall comply with all applicable requirements imposed on the Airport by federal law to ensure that the Airport's eligibility for federal money or for participation in federal aviation programs is not jeopardized. This Permit is subordinate to the City's grant assurances and federal obligations. 17. No Exclusivity. The privileges granted under this Permit are not exclusive to Permittee. City has the right to grant to others any right or privilege on the Airport. 18. Assignment. The privileges granted under this Permit are personal to Permittee and may not be assigned by Permittee. 19. No Joint Venture. City shall not be construed or held to be a partner or joint venturer of Permittee in the conduct of its business or activities on the Premises or elsewhere at the Kenai Municipal Airport. 20. No Waiver. Failure to insist upon a strict compliance with the terms, conditions, and requirements herein contained, or referred to, shall not constitute or be construed as a waiver or relinquishment of the right to exercise such terms, conditions, or requirements. 21. Personalty. Permittee shall remove any and all personal property, including all vehicles, from the Premises at the termination of this Permit (or any renewal thereof). Personal property placed or used upon the Premises will be removed and/or impounded by the City, if not removed upon termination of this Permit and when so removed and/or impounded, such property may be redeemed by the owner thereof only upon the payment to the City of the costs of removal plus storage charges of $25 per day. The City of Kenai is not responsible for any damage to or theft of any personalty of Permittee or of its customers. 22. Termination; Default. This Permit may be terminated by either party hereto by giving 30 days advance written notice to the other party. City may terminate the Permit immediately, or upon notice shorter than 30 days, to protect public health and safety or due Special Use Permit-UPSCO (Aircraft Loading & Parking) Page 6of8 Page 94 of 146 to a failure of Permittee to comply with condition or term of this Permit which failure remains uncured after notice by City to Permittee providing Permittee with a reasonable time period under the circumstances to correct the violation or breach. 23. Landing Fees; Fee Schedule. Timely payment of landing fees and other required Airport fees is a condition of this Permit and, as such, failure to timely pay landing and other airport fees is grounds for termination. Without limiting the foregoing, Permittee shall pay landing fees for aircraft landings as set out in the City's comprehensive schedule of rates, charges and fees. Permittee shall make payment within 30 days following the end of each month and without demand or invoicing from City. Permittee shall also provide Airport Administration with monthly certified gross take-off weight reports within ten days following the end of each month for landings for the preceding month. Airport landing fees shall be paid at the Airport Administration Building, 305 North Willow Street, Suite 200, Kenai, AK 99611. 24. Impoundment. At the discretion of the Airport Manager, City may impound any aircraft parked on the Premises after termination of this Permit. Impoundment may be accomplished by affixing a seal to the door of the aircraft or the moving of the aircraft for impoundment purposes. Inconvenience or damage that may result from such movement will be at the risk of Permittee. An impoundment fee plus a towage fee shall be charged on each aircraft impounded. In addition, a daily storage fee shall be charged for each day the aircraft remains impounded. Any impounded aircraft that is not redeemed within 90 days after impoundment shall be considered abandoned and shall be subject to sale at public auction. Notice of any auction shall be published. Publication shall be in a newspaper of general circulation in that area for at least once during each of three consecutive weeks not more than 30 days nor less than seven days before the time of the auction. 25. Definitions. As used in this Permit, "Permittee" means UPSCO, United Parcel Service Co., Inc. and where the context reasonably indicates, its officers, agents, and employees. "Airport" means the Kenai Municipal Airport. CITY OF KENAI Paul Ostrander City Manager Date UPS CO Doug Berry Date Extended Centers Manager Special Use Permit-UPSCO (Aircraft Loading & Parking) Page 7of8 Page 95 of 146 ACKNOWLEDGMENTS STATE OF ALASKA ) ) SS. THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this __ day of , 2017, the foregoing instrument was acknowledged before me by Paul Ostrander, City Manager, of the City of Kenai, an Alaska municipal corporation, on behalf of the City. Notary Public for Alaska My Commission Expires: ____ _ STATE OF ALASKA ) ) SS. THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this __ day of , 2017, the foregoing instrument was acknowledged before me by Doug Berry, the Extended Centers Manager, on behalf ofUPSCO, United Parcel Service Co., Inc. ATTEST: Sandra Modigh, City Clerk SEAL: RM: Scott M. Bloom, City Attorney Y:\Airport\SUP\UPSC0\2017 0405 UPS SUP.docx Notary Public for Alaska My Commission Expires: ____ _ Special Use Permit-UPSCO (Aircraft Loading & Parking) Page 8of8 Page 96 of 146 Page 97 of 146 'Vttl~ «1/t/t, a Pa~~ °''t/ «1/t/t, a ratU?e JI 210 FidalgoAve, Kenai, Alaska 99611-7794 Telephone: (907) 283-7535 I Fax: (907) 283-3014 www.kenai.city MEMORANDUM TO: THROUGH: FROM: DATE: SUBJECT: Mayor Brian Gabriel and Kenai City Council Paul Ostrander, City Manager ":\>, <.::> • Mary L. Bondurant -Airport Manager April 19, 2017 Empires Airlines -Special Use Permit Empire Airlines, Inc., is requesting a special use permit for aircraft parking on the apron consisting of approximately 11,250 square feet on the commercial apron. Attached is a special use permit effective one year from July 1, 2017 to June 30, 2018. The FY18 rate is based on the table below passed by City Council at the May 18, 2016 Council meeting. Apron Rate Increases to Arrive at Market in 6 years Apron Lease Rate FY15 $1.80s.f. x .08 $ 0.144 FY2016 $ 0.357 FY2017 $ 0.528 FY2018 $ 0.699 FY2019 $ 0.870 FY2020 $ 1.041 FY2021 $ 1.210 Airport Commission reviewed the request at the April 14, 2017 meeting and recommends Council approve the request. Does Council recommend the City Manager enter into a Special Use Permit with Empire Airlines, Inc., for aircraft parking on the apron? Page 98 of 146 SPECIAL USE PERMIT The CITY OF KENAI (City) grants to EMPIRE AIRLINES, INC. (Permittee), whose address is 11559 N. Atlas Road, Hayden, ID 83835, a Special Use Permit for the purpose of aircraft parking at the Kenai Municipal Airport subject to the requirements and the conditions set forth below. 1. Premises. Permittee shall have the non-exclusive right to use 11,250 square feet as described in the attached Exhibit A for the uses identified in this Permit. 2. Term. The term of this Permit shall be for 1 year commencing on July 1, 2017 and ending on June 30, 2018. Regardless of the date of signature, this Permit shall be effective as of July 1, 2017. 3. Permit Fees. Permittee shall pay the following fees for the privileges extended to Permittee under this Permit: A. Permit: Permittee shall pay a monthly fee of$655.31 plus applicable sales tax. B. Proximity Card for Gate Access: In addition to the general permit fee, Permittee shall pay a deposit of one hundred dollars ($100.00) for the use of each proximity card issued to Permittee by City to allow for gate access to the Airport to conduct the uses permitted hereunder. City shall refund this deposit to Permittee when the card is returned to City. City may exercise a right of offset to apply the deposit to any outstanding balance due to City from Permittee at the termination of this Permit. C. Other Fees: City may assess additional fees for aviation or aviation support activities and uses not defined in this Permit. If a fee has not been established for those activities or services, a fee will be established by the Airport Manager. Payment shall be directed to City of Kenai, ATTN: Finance Department, 210 Fidalgo A venue, Kenai, AK 99611 and a courtesy notice of payment provided to Airport Administration at 305 North Willow Street, Suite 200, Kenai, AK 99611. All permit fees are payable in advance of each month unless otherwise provided. In the event of delinquency, interest at the rate of ten percent ( 10%) per annum, and penalty of ten percent (10%) shall also be due (KMC 1.75.010). Interest shall accrue from the date due until the date paid in full. Failure to timely make payments is grounds for termination of this Permit. (See~ 22, Termination) 4. Use. City authorizes Permittee's non-exclusive use of the Premises for the following purpose(s): Special Use Permit-Empire Airlines, Inc. (Parking) Page 1of8 Page 99 of 146 Aircraft Parking. NOTE: This permit does not guarantee the exclusive use ofthe area identified in Exhibit A. City reserves the right to re-assign Permittee. upon reasonable notice, to other areas as airport needs may require. Permittee shall have the right of ingress and egress to the Airport using only designated gate access locations (which may require a proximity card) for the use of the Premises. This Permit, and any access rights allowed hereunder, are for Permittee's use only and may not be transferred or assigned. Use of the Premises by Permittee is subject to the reasonable administrative actions of the City of Kenai for the protection and maintenance of the Premises and of adjacent and contiguous lands or facilities and is further subject to the following conditions: Permittee acknowledges that the use granted herein is subject to the Kenai Municipal Code and municipal regulations governing the Kenai Municipal Airport and as those laws and regulations may be amended from time to time. Solicitation of donations or operation of a business or other commercial enterprise not contemplated by this Permit is prohibited without the written consent of City. No person may repair an aircraft, aircraft engine, propeller, or apparatus in an area of the Airport other than that specifically designated for that purpose by the Airport Manager or designated representative. The Airport Manager or designated representative reserves the right to designate reasonable areas where aircraft owners may perform services on their own aircraft. 5. Airport Operations. Permittee shall ensure that the Permittee, its employees, and guests, and anyone else acting by, on behalf of, or under the authority of Permittee on the Airport, that perform any repairs or activities authorized under this Permit act in a manner that ensures the safety of people and the Airport, the protection of public health and the environment, and the safety and integrity of the Airport and any premises on the Airport. Permittee shall employ qualified personnel and maintain equipment sufficient for the purposes of this provision. The Permittee shall immediately notify City of any condition, problem, malfunction, or other occurrence that threatens the safety of the Airport, the safety of persons using the Airport, the public health or the environment, or the safety or integrity of any premises on the Airport. 6. Inspection. The Federal Aviation Administration (FAA) and/or City shall have the right and authority to inspect, at any time for any purpose whatsoever, the Premises as well as any and all equipment used by the Permittee under this Permit. Special Use Permit-Empire Airlines, Inc. (Parking) Page 2of8 Page 100 of 146 7. Coordination with Airport Management. Permittee shall coordinate all activities on the Airport with Airport Management, or a designated representative, and shall abide by all reasonable decisions and directives of the Airport Management regarding general use of the Airport by Permittee. 8. Radio Transmitting Equipment. Permittee shall discontinue the use of any machine or device which interferes with any government-operated transmitter, receiver, or navigation aid until the cause of the interference is eliminated. 9. Insurance. Permittee shall secure and keep in force adequate insurance, as stated below, to protect City and Permittee. Where specific limits are stated, the limits are the minimum acceptable limits. If Permittee's insurance policy contains higher limits, City is entitled to coverage to the extent of the higher limits. A. Commercial General Liability insurance, including premises, all operations, property damage, personal injury and death, broad-form contractual, with a per- occurrence limit of not less than $1,000,000 combined single limit. The policy must include an endorsement under which the insurer extends coverage to Permittee's fuel handling activities. The policy must name the City as an additional insured. B. Worker's compensation insurance with coverage for all employees engaged in work under this Permit or at the Premises as required by AS 23.30.045. Permittee is further responsible to provide worker's compensation insurance for any subcontractor who directly or indirectly provides services to Permittee under this Permit. C. Commercial Automobile Coverage with not less than $1 ,000,000 combined single limit per occurrence. This insurance must cover all owned, hired, and non- owned motor vehicles the Permittee uses on the Airport. The policy must name the City as an additional insured. D. All insurance required must meet the following additional requirements: 1. All policies will be by a company/corporation currently rated "A-" or better by A.M. Best. 11. Permittee shall submit to the City proof of continuous insurance coverage in the form of insurance policies, certificates, endorsements, or a combination thereof, and signed by a person authorized by the insurer to bind coverage on its behalf. 111. Permittee shall request a waiver of subrogation against City from Special Use Permit-Empire Airlines, Inc . (Parking) Page 3of8 Page 101 of 146 Permittee's insurer and the waiver of subrogation, where possible, shall be provided at no cost to City. 1v. Provide the City with notification at least thirty (30) days before any termination, cancellation, or material change in insurance coverage of any policy required hereunder. v. Evidence of insurance coverage must be submitted to City by July 1, 2017. The effective date of the insurance shall be no later than July 1, 2017. City may increase the amount or revise the type of required insurance on written demand without requiring amendments to this Permit. City will base any increase or revision on reasonable and justifiable grounds. Within two weeks of the written demand, Permittee shall submit to City evidence of insurance coverage that meets the requirements of the City. 10. Assumption of Risk. Permittee assumes full control and sole responsibility as between Permittee and City for the activities of Permittee, its personnel, employees, and persons acting on behalf of or under the authority of the Permittee anywhere on the Airport. Permittee shall provide all proper safeguards and shall assume all risks incurred in its activities on and access to the Kenai Municipal Airport and its exercise of the privileges granted in this Permit. 11. Indemnity, Defend, and Hold Harmless Agreement. Permittee agrees to fully indemnify, defend, and hold harmless, the City of Kenai, its officers, agents, employees, and volunteers from and against all actions, damages, costs, liability, claims, losses, judgments, penalties, and expenses of every type and description, including any fees and/or costs reasonably incurred by the City's staff attorneys and outside attorneys and any fees and expenses incurred in enforcing this provision (hereafter collectively referred to as "Liabilities"), to which any or all of them may be subjected, to the extent such Liabilities are caused by or result from any negligent act or omission or willful misconduct of the Permittee in connection with or arising from or out of Permittee's activities on or use of the Premises, Permittee's access to the Kenai Municipal Airport, and/or Permittee's exercise of the privileges granted in this Permit. This shall be a continuing obligation and shall remain in effect after termination of this Permit. 12. Fuel Spill Prevention and Response Plan. Areas of the Apron have been seal coated to protect asphalt from adverse effects of petroleum product spills. The City requires that Permittee provide adequate absorbent materials and tools available on the Premises and at the airport in order to maintain a fuel spill and response capability. Permittee shall be liable for any damage caused by and costs associated with any spill, the cleanup of any spill, or the Special Use Permit-Empire Airlines, Inc. (Parking) Page 4of8 Page 102 of 146 discharge of petroleum products or hazardous materials due to Permittee's use of the Apron and/or use of the Airport. Permittee shall provide to City an acceptable fuel spill prevention and response plan and will maintain fuel spill and response capability. Permittee further agrees to have a copy of the fuel spill prevention and response plan located in the Permittee's fuel dispensing equipment at all times. Permittee must comply with the Airport's Storm Water Pollution Prevention Plan as appropriate to Permittee's activities. Permittee shall not store any personal property, solid waste, petroleum products, Hazardous Material as defined by 14 CFR § 171.8, hazardous waste (ignitable, corrosive, reactive, or toxic) or any hazardous substance on any portion of the Airport. Permittee is aware that there are significant penalties for improperly disposing of the Hazardous Materials and other waste and for submitting false information regarding Hazardous Materials, including the possibility of fine and imprisonment for knowing violations. Permittee shall immediately remove the material in the event of spillage or dripping of gasoline, oil, grease, or any other material which may be unsightly or detrimental to the pavement or surface in or on any area of the Airport. Permittee may not construct or install any above-ground or underground fuel storage tanks or dispensing systems at the Airport. No person shall smoke on an aircraft-parking ramp, inside an aircraft hangar, or within fifty feet (50') of any aircraft fuel facility or fuel truck. Permittee is subject to FAA Advisory Circular 150/5230-4 Aircraft Fuel Storage, Handling, and Dispensing on Airports, the National Fire Protection Associations' "Standard for Aircraft Fueling Servicing" in NFPA 407 (1996 version), and the current version of the International Fire Codes. All inspections of fuel facilities, by City or other regulating entities to which Permittee is subject, shall be conducted to assure compliance with the fire safety practices listed in these referenced documents. 13. Hazardous Substances and Materials. Permittee shall conform and be subject to the requirements of 14 CFR § 13 9 .3 21 regarding the handling and storage of hazardous substances and materials. 14. No Discrimination. Permittee shall not discriminate against any person because of the person's race, creed, color national origin, sex, age, or handicap. Permittee recognizes the right of City to take any action necessary to enforce this requirement of the Permit. Permittee will furnish services provided under this Permit on a reasonable, and not unjustly Special Use Permit-Empire Airlines, Inc. (Parking) Page 5of8 Page 103 of 146 discriminatory, basis to all users of the Airport and shall charge reasonable, and not unjustly discriminatory, prices for each product or service provided at the Airport. 15. Licenses and Permits. Permittee shall obtain and maintain all required federal, state, and local licenses, certificates, and other documents required for its operations under the Permit. Permittee shall provide proof of compliance to City upon request by the City. 16. Compliance with Law/Grant Assurances. This Permit, and Permittee's activities conducted under this Permit, is subject to all executive orders, policies and operational guidelines and all applicable requirements of federal, state, and City statutes, ordinances, and regulations in effect during the term of this Permit. Further, Permittee shall comply with all applicable requirements imposed on the Airport by federal law to ensure that the Airport's eligibility for federal money or for participation in federal aviation programs is not jeopardized. This Permit is subordinate to the City's grant assurances and federal obligations. 17. No Exclusivity. The privileges granted under this Permit are not exclusive to Permittee. City has the right to grant to others any right or privilege on the Airport. 18. Assignment. The privileges granted under this Permit are personal to Permittee and may not be assigned by Permittee. 19. No Joint Venture. City shall not be construed or held to be a partner or joint venturer of Permittee in the conduct of its business or activities on the Premises or elsewhere at the Kenai Municipal Airport. 20. No Waiver. Failure to insist upon a strict compliance with the terms, conditions, and requirements herein contained, or referred to, shall not constitute or be construed as a waiver or relinquishment of the right to exercise such terms, conditions, or requirements. 21. Personalty. Permittee shall remove any and all personal property, including all vehicles, from the Premises at the termination of this Permit (or any renewal thereof). Personal property placed or used upon the Premises will be removed and/or impounded by the City, if not removed upon termination of this Permit and when so removed and/or impounded, such property may be redeemed by the owner thereof only upon the payment to the City of the costs of removal plus storage charges of $25 per day. The City of Kenai is not responsible for any damage to or theft of any personalty of Permittee or of its customers. 22. Termination; Default. This Permit may be terminated by either party hereto by giving 30 days advance written notice to the other party. City may terminate the Permit immediately, or upon notice shorter than 30 days, to protect public health and safety or due Special Use Permit-Empire Airlines, Inc. (Parking) Page 6of8 Page 104 of 146 to a failure of Permittee to comply with condition or term of this Permit which failure remains uncured after notice by City to Permittee providing Permittee with a reasonable time period under the circumstances to correct the violation or breach. 23. Landing Fees; Fee Schedule. Timely payment of landing fees and other required Airport fees is a condition of this Permit and, as such, failure to timely pay landing and other airport fees is grounds for termination. Without limiting the foregoing, Permittee shall pay landing fees for aircraft landings as set out in the City's comprehensive schedule of rates, charges and fees. Permittee shall make payment within 30 days following the end of each month and without demand or invoicing from City. Permittee shall also provide Airport Administration with monthly certified gross take-off weight reports within ten days following the end of each month for landings for the preceding month. Airport landing fees shall be paid at the Airport Administration Building, 305 North Willow Street, Suite 200, Kenai, AK 99611. 24. Impoundment. At the discretion of the Airport Manager, City may impound any aircraft parked on the Premises after termination of this Permit. Impoundment may be accomplished by affixing a seal to the door of the aircraft or the moving of the aircraft for impoundment purposes. Inconvenience or damage that may result from such movement will be at the risk of Permittee. An impoundment fee plus a towage fee shall be charged on each aircraft impounded. In addition, a daily storage fee shall be charged for each day the aircraft remains impounded. Any impounded aircraft that is not redeemed within 90 days after impoundment shall be considered abandoned and shall be subject to sale at public auction. Notice of any auction shall be published. Publication shall be in a newspaper of general circulation in that area for at least once during each of three consecutive weeks not more than 30 days nor less than seven days before the time of the auction. 25. Definitions. As used in this Permit, "Permittee" means Empire Airlines, Inc. and where the context reasonably indicates, its officers, agents, and employees. "Airport" means the Kenai Municipal Airport. CITY OF KENAI EMPIRE AIRLINES, INC. Paul Ostrander City Manager Date Special Use Permit-Empire Airlines, Inc. (Parking) Randy Lanfell Date Director of Flight Operations Page 7of8 Page 105 of 146 ACKNOWLEDGMENTS STATE OF ALASKA ) ) SS. THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this __ day of , 2017, the foregoing instrument was acknowledged before me by Paul Ostrander, City Manager, of the City of Kenai, an Alaska municipal corporation, on behalf of the City. Notary Public for Alaska My Commission Expires: ____ _ STATE OF ALASKA ) ) SS. THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this __ day of 2017, the foregoing instrument was acknowledged before me by Randy Lanfell, Director of Flight Operations, Empire Airlines, Inc., on behalf of the State of Alaska. Notary Public for Alaska My Commission Expires: ____ _ ATTEST: Sandra Modigh, City Clerk SEAL: ·~FORM: Scott M. Bloom, City Attorney Y:\Airport\SUP\Empire\2017 0405 Empire SUP.docx Special Use Permit-Empire Airlines, Inc. (Parking) Page 8of8 Page 106 of 146 Empire Special Use Permit Special Use Permit Approx. \\I aso c;t~ 2A1 FedEx 7 6 3 (2) 3A-1 f::VHL8rr A . ._.t'\.f l:;.,. 1 7A-1 I I I Page 107 of 146 COUNCIL ON AGING MEETING APRIL 13, 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, J. Hollier, B. Modigh, R. Williams, L. Nelson Members Absent: B. Osborn Staff/Council Liaison Present: Senior Center Director R. Craig, Council Member M. Boyle A quorum was present. 2. AGENDA APPROVAL Councilor Williams MOVED to approve the agenda with the addition of Sherri Bedlow and Heather Darius speaking about the Senior Companion Program during Persons Scheduled to be Heard and Council Member Modigh SECONDED the motion. There being no objections; SO ORDERED. 3. APPROVAL OF MEETING SUMMARY a. March 9, 2017 Councilor Hollier MOVED to approve the March 9, 2017 meeting summary; Council Member Nelson SECONDED the motion. There being no objections; SO ORDERED. 4. PERSONS SCHEDULED TO BE HEARD – a. Sherri Bedlow & Heather Darius – Senior Companion Program Sherri Bedlow and Heather Darius provided and overview of the Senior Companion Program explaining that volunteers visited with, shared stories with, and provided companionship for clients; also explained that the volunteers can provide transportation for shopping and respite care if needed. It was noted that the organization was recruiting volunteers as well as clients. 5. UNFINISHED BUSINESS a. Service Animals vs. Emotional Animals at the Senior Center It was suggested that the draft policy was a good one noting the laws protect the person with the disability. There was question about the law requiring the dog to be on a leash. It was recommended the attorney be consulted regarding leashing and requiring vests for the dogs. Page 108 of 146 Councilor Weeks MOVED to accept the policy and procedures for allowing dogs in the facility; Council Member Modigh SECONDED the motion. There being no objections; SO ORDERED. 6. NEW BUSINESS – None. 7. REPORTS a. Senior Center Director – R. Craig reported on the following: • Upcoming Walker and Roller Fun Run; • Upcoming Senior Center Health Fair; • March for Meals was a success. b. Council on Aging Chair – No report. c. City Council Liaison – No report. 8. NEXT MEETING ATTENDANCE NOTIFICATION – May 11, 2017 9. QUESTIONS & COMMENTS Councilor Milewski noted she enjoyed hearing what was happening with City Council. Council Chair Gellar expressed concern that the Moose Lodge had potentially been sold and the new owner had planned on putting in a marijuana establishment. 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 5:40 p.m. Meeting summary prepared and submitted by: _____________________________________ Jamie Heinz, CMC, Deputy Clerk Page 109 of 146 CITY OF KENAI PLANNING & ZONING COMMISSION CITY COUNCIL CHAMBERS APRIL 12, 2017- 7:00 P.M. COMMISSION 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 Commission Chair Twait led those assembled in the Pledge of Allegiance. b. Roll Call Commissioners present: R. Springer, K. Peterson, G. Greenberg, V. Askin, D. Fikes, J. Twait Staff/Council Liaison present: City Planner M. Kelley, Planning Assistant W. Anderson, Deputy City Clerk J. Heinz, and Council Liaison B. Molloy A quorum was present. c. Agenda Approval MOTION: Commissioner Peterson MOVED to approve the agenda and Commissioner Askin SECONDED the motion. There were no objections; SO ORDERED. d. Consent Agenda MOTION: Commissioner Askin MOVED to approve the consent agenda; Commissioner Peterson SECONDED the motion. There were no objections; SO ORDERED. *All items listed with an asterisk (*) are considered to be routine and non-controversial by the Commission and will be approved by one motion. There will be no separate discussion of these items unless a Commission Member so requests, in which case the item will be removed from the Consent Agenda and considered in its normal sequence on the agenda as part of the General Orders. e. *Excused Absences – J. Halstead 2. *APPROVAL OF MINUTES: March 22, 2017 Page 110 of 146 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: a. PZ17-07 – Original Preliminary plat of Kenai Meadows, submitted by Segesser Surveys, 30485 Rosland St., Soldotna, AK 99669 on behalf of the City of Kenai, 210 Fidalgo Ave., Kenai, AK 99611 City Planner Kelley reviewed his staff report provided in the packet noting the plat had been before the Commission before, however, the Kenai Peninsula Borough recommended amending it to include the dedication of a Right-of-Way. It was recommended the resolution approving the previous plat be rescinded and the the amended plat be approved with the following conditions: • Further development of the property shall conform to all Federal, State and local regulations; • The City of Kenai must sign the final plat as property owner; • The preliminary plat should be revised to reflect Paul Ostrander as the City Manager of the City of Kenai; • Tract A, according to KN 76-66 as shown to be outside of the preliminary plat should be revised to show that a 30-foot right-of-way is not located along its eastern property line. MOTION: Commissioner Fikes MOVED to rescind Resolution No. PZ17-02 and approve Resolution No. PZ17-07 and Commissioner Askin SECONDED the motion. Commission Chair Twait opened the public hearing; there being no one wishing to speak, public hearing was closed. VOTE: YEA: Springer, Peterson, Greenberg, Askin, Twait, Fikes NAY: MOTION PASSED UNANIMOUSLY. b. PZ17-08 – Original Preliminary plat of Carl F. Ahlstrom Subdivision RMP’s Replat submitted by Integrity Surveys, Inc. Kenai, Alaska 99611 on behalf of the RPM’s LLC, 14096 Kenai Spur Highway, Kenai, AK 99611 City Planner Kelley reviewed his staff report provided in the packet noting the plat had been seen by the Commission previously, however, the surveyor recognized that utility easements needed to be shown on the plat and vacated. It was recommended the resolution approving the previous plat be rescinded and the amended plat be approved with the following conditions: Page 111 of 146 • Further development of the property shall conform to all Federal, State and local regulations; • The owner’s name and address be corrected in the title block; • The word, “aread,” under the Legend section of the plat be corrected to read, “area.” • A 10-foot utility easement shall be dedicated along the front property line fronting onto Kenai Spur Highway. MOTION: Commissioner Askin MOVED to rescind Resolution No. 17-04 and approve Resolution No. PZ17- 08 and Commissioner Springer SECONDED the motion. Commission Chair Twait opened the public hearing; there being no one wishing to speak, public hearing was closed. VOTE: YEA: Springer, Peterson, Greenberg, Askin, Twait, Fikes NAY: MOTION PASSED UNANIMOUSLY. 6. PUBLIC HEARINGS: None. 7. UNFINISHED BUSINESS: None. 8. NEW BUSINESS: None. 9. PENDING ITEMS: None. 10. REPORTS: a. City Council – Council Member Molloy reviewed the Action Agenda of the April 5 City Council meeting which was provided in the packet and also provided an overview of the April 19 agenda. b. Borough Planning – Borough Planning Commissioner Glendening reviewed actions from the March 27 and April 10 meetings. c. Administration – City Planner M. Kelley reported on the following: • Noted he had begun researching potential updates for the draft site plan ordinance; • There had been progress on the Bluff Erosion Project. 11. PERSONS PRESENT NOT SCHEDULED: Krista Timlin, spoke against the City allowing the property owners adjacent to her parent’s property to transplant and revegetate their lot that had been previously cleared. She noted that Page 112 of 146 the cease and desist order that had previously been in place was forcing the property owners to negotiate with the neighbors and to come to an agreement regarding the landscaping. Dee Timlin also spoke against the City allowing revegetation of the lot adjacent to her property noting they wanted to come to an agreement concerning the cleanup, but if the adjacent property owner was allowed to cleanup on their own, they wouldn’t be forced to reach an agreement. 12. INFORMATIONAL ITEMS: None. 13. NEXT MEETING ATTENDANCE NOTIFICATION: April 26, 2017 14. COMMISSION COMMENTS & QUESTIONS: Vice Chair Peterson thanked Councilors Molloy and Glendening for their reports. Commissioner Fikes thanked the Timlin’s for coming forth and speaking. Commissioner Greenberg noted that the Kenai Peninsula Borough was beginning the process on updating their Comprehensive Plan and would be coming forth with public meetings. 15. ADJOURNMENT: There being no further business before the Commission, the meeting was adjourned at 7:45 p.m. Minutes prepared and submitted by: _____________________________ Jamie Heinz, CMC Deputy City Clerk Page 113 of 146 CITY OF KENAI PLANNING & ZONING COMMISSION CITY COUNCIL CHAMBERS APRIL 26, 2017- 7:00 P.M. COMMISSION 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 Commission Chair Twait led those assembled in the Pledge of Allegiance. b. Roll Call Commissioners present: R. Springer, K. Peterson, G. Greenberg, V. Askin, D. Fikes, J. Twait, J. Halstead Staff/Council Liaison present: City Planner M. Kelley, Planning Assistant W. Anderson, Deputy City Clerk J. Heinz, and Council Liaison J. Glendening. A quorum was present. c. Agenda Approval MOTION: Commissioner Peterson MOVED to approve the agenda and Commissioner Halstead SECONDED the motion. There were no objections; SO ORDERED. d. Consent Agenda MOTION: Commissioner Peterson MOVED to approve the consent agenda; Commissioner Askin 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. e. *Excused Absences – None. 2. *APPROVAL OF MINUTES: April 12, 2017 Page 114 of 146 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. PZ17-09 - Application for an Encroachment Permit to recognize an encroachment into the side yard setback for an existing two story single-family residence. The residence was constructed at a distance of approximately 13.8 feet from the side property line where 15 feet is required. The property is located at 1300 Channel Way; and further described as Lot 11, Block 9, Inlet Woods Subdivision Part One. The Application was submitted by Jason Followell, 1300 Channel Way, Kenai Alaska 99611. City Planner Kelley reviewed his staff report provided in the packet noting staff found that the applicant met the criteria for issuance of an Encroachment Permit pursuant to Kenai Municipal Code and recommended the permit be approved with the following conditions:  Applicant must comply with all Federal State, and local regulations. MOTION: Commissioner Springer MOVED to approve Resolution No. PZ17-09 and Commissioner Peterson SECONDED the motion. Commission Chair Twait opened the public hearing. Jason Followell noted he built the residence himself, was in the process of selling the home, and noted the former building inspector had measured the footer with a tape measure and didn’t think the distance between the wall and side yard setback would be a problem; further noted the way the surveyor measured found the encroachment. There being no one wishing to speak, public hearing was closed. It was clarified the Encroachment Permit satisfied financial institutions for lending and title purposes; code allowed one foot or less to be approved administratively. Commissioners Springer and Greenberg provided insight on their experiences related to the difficulty for inspectors to determine distance without surveying as dirt piles and holes prevented accurate measurement. VOTE: YEA: Springer, Peterson, Greenberg, Askin, Twait, Fikes, Halstead NAY: MOTION PASSED UNANIMOUSLY. Page 115 of 146 Commission Chair Twait noted the 15-day appeal period. 7. UNFINISHED BUSINESS: None. 8. NEW BUSINESS: None. 9. PENDING ITEMS: None. 10. REPORTS: a. City Council – Council Member Glendening reviewed the Action Agenda of the April 19 City Council meeting which was provided in the packet. b. Borough Planning – Borough Planning Commissioner Glendening reviewed actions from the April 24 meeting. c. Administration – City Planner M. Kelley reported on upcoming projects. 11. PERSONS PRESENT NOT SCHEDULED: None. 12. INFORMATIONAL ITEMS: None. 13. NEXT MEETING ATTENDANCE NOTIFICATION: May 10, 2017 14. COMMISSION COMMENTS & QUESTIONS: Commissioner Askin questioned whether it was good practice to charge people for Encroachment Permits when they attempted on good faith. Commissioner Halstead reiterated Commissioner Askin’s concerns. Commissioner Chair Twait noted it is the homeowner’s responsibility to comply with the regulations. 15. ADJOURNMENT: There being no further business before the Commission, the meeting was adjourned at 7:48 p.m. Minutes prepared and submitted by: _____________________________ Jamie Heinz, CMC Deputy City Clerk Page 116 of 146 April25,2017 Enstar Natural Gas Company Attn: Kelsie Anderson "Vt1/"1e with a Pas~ Cily with a Future" Kenai Police Department 107 S. Willow St, Kenai, Alaska 99611 Telephone : 907-283-7879 /Fax: 907-283-2267 Re: Donation to support the Drug Abuse Resistance Education (DARE) program at Kenai elementary schools Dear Ms. Anderson, On behalf of the Kenai Police Department, I would like to offer thanks for the support of Enstar in providing the DARE program in Kenai. The Kenai Police Department employs a School Resource Officer, Investigator Dan Smith, and it is through his efforts and coordination with the schools that we are able to have a local DARE education program. However, we cannot do it alone and we greatly appreciate our partnership with you this year. Your willingness to purchase $2000 in DARE supplies to be used in the schools is a huge asset to the program and its success among the young audience. As Investigator Smith may have informed you, he will be conducting DARE graduation at Kaleidoscope Elementary on May 511 at 11 :30 AM and at Mountain View Elementary on May glh at 6:00 PM. You are welcome to send a representative to be introduced and thanked publicly for your contribution to DARE education in Kenai this year. Sincerely, David Ross Chief of Police Page 117 of 146 'Vtfl~ «1/t/t, a Pa~~ e~ «11'th a Fatfl.IC'e JI 210 Fidalgo Ave, Kenai, Alaska 99611-7794 Telephone: (907) 283-75351 Fax: (907) 283-3014 www.kenai.city MEMORANDUM TO: THROUGH: FROM: DATE: SUBJECT: Mayor Brian Gabriel and Kenai City Council Paul Ostrander, City Manager 'f?c:::::> · Terry Eubank, Finance Director t{ April 25, 2017 Quarterly Financial Report Attached is a quarterly financial report for the General Fund, Personal Use Fishery Fund, Airport Fund, Water/Sewer Fund, and Senior Fund as of March 31, 2017. This report is essentially on a cash basis, so there are accounts that may not look reasonable. In the General Fund for example, sales and property tax revenue only includes payments made to the City by the Borough through February. The first calendar quarter 2017 sales tax filings and tax payments are not in at this point and we will not be rece ived for this quarter until the end of April or early May. State and Federal is below budget in all funds because of PERS aid . The State doesn 't actually give us any money . Instead they make an 'on-behalf' payment to the pension system. Similarly we have not booked expenditures for the PERS the State is covering, so the Non-Departmental department is way under budget. At year-end we will record revenue and expenditures for these items . Page 118 of 146 Quarterly General Fund Expenditure Report For Quarter Ended March 31, 2017 7/1/2015 7/1/2016 7/1/2016 7/1/2016 6/30/2016 7/1/2016 6/30/2017 3/31/2017 Original* FY2016 FY2017 Amended YTD Actual Budget Budget Actual Variance !2 REVENUES Appropriation of Fund Balance $ $ 630,583 $ 665,583 $ $ (665,583) 0.00% Taxes 11,030,476 11,139,858 11,139,858 7,683, 125 (3,456,733) 68.97% Licenses/Permits and Ambulance 508,921 546,500 546 ,500 373,142 (173,358) 68.28% State/Federal 1,202,084 869,654 876,554 512,597 (363,957) 58.48% Dock/Multipurpose/Miscellaneous 122,324 115,500 115,500 118,474 2,974 102.57% Fines and Forfeitures 82,679 101,000 101,000 69,454 (31,546) 68.77% Interest and Miscellaneous 368,378 380,985 389,546 322,304 (67,242) 82.74% Transfers/Central Admin Fees 1,497,200 1,676,209 1,676,209 1,301 ,546 (374,663) 77.65% Total Revenues 14,812,062 15,460,289 15,510,749 10,380,642 (5, 130, 107l 66.93% EXPENDITURES & TRANSFERS General Government 01 City Clerk $ 241,051 $ 276,258 $ 276,258 $ 171 ,855 $ 104,403 37.79% 11 Legislative 180,123 175,870 179,370 130,392 48,978 27.31% 12 Legal 352,121 348,902 348,902 220,799 128, 103 36.72% 13 City Manager 378,405 379,531 380,131 274,324 105,807 27.83% 15 Finance 625,649 652,304 652,304 453,483 198,821 30.48% 16 Land Administration 25,518 26,270 26,270 11,631 14,639 55.73% 18 Non-Departmental 646,054 759,4 17 758,81 7 298,089 460,728 60.72% 19 Planning and Zoning 234,782 213,850 213,850 148,803 65,047 30.42% 20 Safety 2,976 23,250 23,250 1,985 21 265 91.46% Total General Government 2,686,679 2,855,652 2,859, 152 1 711 361 1 147 791 40.14% Public Safety 21 Police 2,701,523 2,946,426 2,946,426 1,972,036 974,390 33.07% 22 Fire 3,165,263 3,077,473 3,077,473 2,095,957 981,516 31 .89% 23 Communications 748,439 839,274 839,274 553,678 285,596 34.03% 29 Animal Control 372,385 421,265 421 ,265 291,299 129 966 30 .85% Total Public Safety 6 987 610 7 284 438 7,284,438 4 912 970 2 371 468 32.56% Public Works 31 Public Works Administration 196,624 236,648 236,648 167,703 68,945 29.13% 32 Shop 712,870 658,827 658,827 468,409 190,418 28.90% 33 Streets 902,179 998,852 998,852 447,429 551 ,423 55.21% 34 Buildings 283,263 335,507 335,507 221,765 113,742 33.90% 35 Street Lighting 156,8 75 165,851 165,851 95,006 70,845 42.72% 60 Dock 70,985 116,198 116,198 20,080 96,118 82.72% Tota l Public Works 2 ,322,796 2,511,883 2 ,5 11,883 1,420,392 1 091 491 43.45% Parks and Recreation & Culture 03 Visitor Center 179,033 181 ,747 181,747 132,157 49,590 27.29% 40 Library 843,603 917,768 929,729 608,001 321,728 34.6 0% 45 Parks, Recreation & Beautification 1,079,222 1,125,502 1,125,502 748 ,092 377 410 33.53% Total Parks and Rec reation & Culture 2, 101,858 2,225,017 2,236,978 1,488,250 748 728 33.47% Total Operating Expenditures 14,098,943 14,876,990 14,892,45 0 9,532,973 5 359 477 35.99% Transfer to other funds Street Improvement Capital Project Fund 15,000 78,000 78,000 78,000 0.00% Park Improvements Capital Project Fund 123,000 35,000 35,000 35,000 0.00% Senior Center lmpr. Capital Projects 158,400 158,400 158,400 0 .00% Kenai Rec . Center Capital Project Fund 20,000 20,000 20,000 100.00% City Dock Capital Project Fund 35,000 35,000 100.00% New City Shop Capital Project Fund 280,000 City of Kenai Comprehensive Plan Fund 36,000 Senior Citi zen Spec ial Revenue Fund 88,339 151 ,385 151,385 37,846 11 3,539 75.00% Debt Service 143 9 14 140 5 14 140 514 140 440 74 0.05% Total Transfer to other funds 686,253 583,299 618 299 449 686 168 613 27.27% Total Expenditures & Transfers 14,785,196 15,460,289 15,510,749 9,982,659 5,528,090 35.64% Net Revenues over(under) Expenditures $ 26,866 $ $ $ 397,983 $ 397,983 * Note: The original budget includes outstanding encumbrances at 6/30/2016. Page 119 of 146 Quarterly Personal Use Fishery Fund Expenditure Report For Quarter Ended March 31, 2017 7/1/2015 7/1/2016 7/1/2016 7/1/2016 6 /30/2016 7/1/2016 6 /30/2017 3/31 /2017 Original* FY2016 FY2017 Amended YTD Actua l Budget Budget Actual Variance %2 REVENUES Appropriation of Fund Balance $ 182,739 $ 180,350 $ 14,473 $ $ (14,473) -100.00% Beach Parking 182 ,739 180,350 182 ,854 182 ,854 0 .00 % Beach Camping 230 ,729 227 ,650 238 ,752 238 ,752 0 .00 % Dock Launch & Park 133, 181 131 ,700 128,388 128,229 (159) -0 .12% Dock Parking Onl y 15 ,238 15,000 14,807 14,807 0 .00 % Participant Drop-off Fee 28 ,950 10,717 10,717 0 .00 % Interest Earnings 1,580 750 750 (71) (82 1) 0 .00% PERS Grant 2 ,167 1,986 3 ,020 (3 ,020) -100 .00% Credit Card Fees (6 ,888) (3 ,500) (4 ,500) (3 ,603) 897 -19.93% Total Revenue 741,485 763,236 589,261 571,685 (17,576) -2 .98% EXPENDITURES Public Safety $ 113,943 $ 111 ,599 $ 111 ,599 $ 101 ,832 $ 9 ,767 8 .75 % Streets 34 ,116 49 ,258 49 ,258 45 ,648 3 ,610 7 .33% Boating Facility 71 ,417 72,417 77 ,319 67 ,976 9 ,343 12 .08 % Parks , Recreation & Beautification 266 ,996 346 ,935 342 ,033 219,128 122 ,905 35 .93 % Total Expenditures 486,472 580,209 580,209 434,584 145,625 25 .10% Net Revenues over Expenditures $ 255,013 $ 183 ,027 $ 9,052 $ 137,101 $ 128,049 * Note: The original budget includes outstanding encumbrances at 6/30/2016 . Page 120 of 146 Quarterly Airport Fund Expenditure Report For Quarter Ended March 31, 2017 7/1/2015 7/1/2016 7/1/2016 7/1/2016 6/30/2016 7/1/2016 6/30/2017 3/31/2017 Original* FY2016 FY2017 Amended YTD Actual Budget Budget Actual Variance .'.'12 REVENUES Appropriation of Fund Balance $ $ $ $ $ 0.00% State/Federal 30 ,048 30,961 30 ,961 (30,961) 0.00% Interest , Leases & Fees 776,427 858,968 858 ,968 652 ,515 (206,453) 75.96% Terminal Revenues 784 ,184 783,414 903,414 507 ,210 (396 ,204) 56.14% Landing Fees 418,644 375 ,000 375 ,000 391 ,869 16,869 104.50% Transfers In 1,142,714 1, 184,356 1, 184,356 (1 ,184,356) 0.00% Total Revenues 3,152,017 3,232,699 3,352,699 1,551,594 {1,801,105} 46.28% EXPENDITURES & TRANSFERS Terminal Area $ 548,308 $ 630 ,953 $ 628,150 $ 394,142 $ 234,008 37.25% Airfield 1,522 ,298 1,710,321 1 ,708,674 1 , 197,006 511 ,668 29.95% Administration 287 ,087 315 ,259 431,210 324 ,799 106,411 24.68% Other Buildings & Areas 110,734 174 ,924 241 ,380 84 ,218 157,162 65.11% Training Facility 32,620 36 ,768 42 ,017 26,487 15,530 36.96% Total Expenditures 2,501,047 2,868,225 3,051,431 2,026,652 1,024,779 33.58% Transfer to other funds Airport Improvement Capital Projects 203,007 0.00% Total Transfer to other funds 203,007 #DIV/O! Total Expenditures & Transfers 2,704,054 2,868,225 3,051,431 2,026,652 1,024,779 33.58% Net Revenues over Expenditures $ 447,963 $ 364,474 $ 301,268 $(475,058) $ (776,326) * Note : The original budget includes outstanding encumbrances at 6/30/2016. Page 121 of 146 Quarterly Water Sewer Fund Expenditure Report For Quarter Ended March 31, 2017 7/1/2015 7/1/2016 7/1 /2016 7/1/2016 6/30/2016 7/1/2016 6/30/2017 3/31/2017 Original• FY2016 FY2017 Amended YTD Actual Budget Budget Actual Variance ~ REVENUES Appropriation of Fund Balance $ $ $ $ $ #DIV/O! State/Federal 30,836 24,2 55 24,255 (24,255) 0.00% Water/Sewer Fees 2,570,242 2,756,781 2,756,781 2,056 ,359 (700,422) 74.59% Penalty and Interest 39,679 40,000 40 ,000 31 ,534 (8,466) 78.84% Interest and M iscellaneous 13,708 15,000 15,000 2,758 (12 ,242) 18.39% Total Revenues 2,654,465 2,836,036 2,836,036 2,090,651 {745,385} 73.72% EXPENDITURES & TRANSFERS Water $ 829,081 $ 880,772 $ 900,427 $ 506,565 $ 393 ,862 43.74% Sewer 384,963 450 ,651 805 ,388 614,559 190,829 23.69% Wastewater Treatment Plant 923,882 1,121,757 1,1 21,757 680,321 441 436 39.35% Total Ex penditures 2,137,926 2,453,180 2,827,572 1 801 445 1,026, 127 36 .29% Transfer to other funds - Water & Sewer Capital Projects Total Transfer to other funds Total Expenditures & Transfers 2,137,926 2,453,180 2,827,572 1,801,445 1,026, 127 36.29% Net Revenues over Expenditures $ 516,539 $ 382,856 $ 8,464 $ 289,206 $ 280,742 • Note: The original budget includes outstanding encumbrances at 6/30/2016. Page 122 of 146 Quarterly Senior Fund Expenditure Report For Quarter Ended March 31 , 2017 7/112015 7/1/2016 7/112016 7/1/2016 6/30/2016 7 /1/2016 6 /30/2017 3/31 /2017 Original• FY2016 FY2017 Amended YTD Actual Budget Budget Actual Variance !! REVENUES Appropriation of Fund Balance $ $ 37 ,813 $ 37,813 $ $ (37 ,8 13) 0.00% State Grants 196,978 192,939 200 ,939 143,136 (57 ,803) 71.23% USDA Grant 15,780 13,000 13,000 13,403 403 103.10% Choice Waiver 252 ,604 275,000 275,000 150,864 (1 24,136) 54.86 % KPB Grant 126,207 126,207 12 6 ,207 126 ,207 100.00% United Way 9 ,582 9 ,582 9 ,582 2 ,989 (6,593) 31 .19% Rents & Leases 12,971 13,000 13,000 6 ,81 2 (6 ,188) 52.40% Donations 24,720 31 ,000 31,000 11 ,240 (19 ,760) 36.26% Meal Donations 59,842 66 ,500 70,000 56,085 (13 ,915) 80.12% Transfer from General Fund 88,339 151 ,385 151 ,385 37,846 (113,539) 25.00% Other (620) 300 300 239 (6 1) Total Revenues 786,403 916,726 928,226 548,821 (379,405) 59.13% EXPENDITURES & TRANSFERS Senior Citizen Access $ 175,261 $ 164,631 $ 164,381 $ 109,077 $ 55 ,304 33.64% Congregate Meals 179,437 226,133 232 ,533 152,886 79 ,647 34.25% Home Meals 148,045 178,274 183,374 124,703 58 ,671 32 .00% Senior Transportation 108,564 68,439 68,689 45 ,793 22,896 33.33% Choice Waiver 33 1,887 2 79,249 279,249 177,702 101 547 36.36% Total Ex penditures 943 194 916 726 928,226 610 161 3 18,065 34 .2 7% Transfe r to other fund s - Total Transfer to other funds Total Expenditures & Transfers 943,194 916,726 928,226 610,161 318,065 34.27% Net Revenues over Expenditures $(156,791) $ $ $ (61,340) $ (61 ,340) • Note : The original budget includes outstanding encumbrances at 6/30/2016. Page 123 of 146 'Utt~ «1/th, tl PaO'~ e~ «1/t~ tl Fatfl.H,, II MEMORANDUM 210 FidalgoAve, Kenai, Alaska 99611-7794 Telephone: (907) 283-7535 I Fax: (907) 283-3014 www.kenai.city TO: THROUGH: FROM: DATE: Mayor Brian Gabriel and Kenai City Council Paul Ostrander, City Manager ?. O - Terry Eubank, Finance Director j(. April 25, 2017 SUBJECT: March 2017 Quarterly Investment Report City of Kenai Investment Portfolio At March 31, 2017 the City had investments with a market value of $20,201,258 that is down from $21,211,220 at December 31, 2016 . The City's portfolio is yielding 0 .98% that is up from 0.84% at December 31, 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 AML Investment Pool Wells Fargo Money Market FDIC Insured Certificates of Deposit Bank Balance Total Permanent Fund Investments $ 5,000,985 1,371, 137 3,077,267 9,882,891 863.978 $ 20.201 .258 The first quarter of 2017 saw a continued rally in the equity markets despite the second Federal Funds Rate change in 8 years, occurring in December. 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 3.33% for the first quarter of 2017, annualized this return would be in excess of 13%. Since inception the portfolio has returned 8.55%. As of March 31, 2017 the portfolio value was $27,705,648, comprised of $24,477,380 (88.35%) Airport Land Sale Permanent Fund, $3,095,588 (11.17%) General Land Sale Permanent Fund monies, and $132,680 (0.48%) Kenai Community Foundation holdings . Page 124 of 146 CITY OF KENAI INVESTMENT PORTFOLIO SUMMARY March 31, 2017 Cash & Cash Equivalents Wells Fargo Checking Wells Fargo Secured Money Market FDIC Insured Certificates of Deposit Alaska Municipal League Investment Pool Total Cash & Cash Equivalents Government Securities Maturities Less than 1 Year Maturities 1 to 2 Years Maturities Greater than 2 Years Total Government Securities Total Portfolio Investment Portfolio -Purchase Price $ 21 ,262,318 Investment Portfolio -Fair Value 06/30/16 21,309,506 Fair Value Adjustment -06/30/16 47 ,188 Fair Value Adjustment thru -3/31/17 (99 ,160) Cummulative Change in Fair Value $ (51 972) $16,000,000 $12,000,000 $8 ,000 ,000 $4,000,000 $0 March 31, 2017 Fair Market Value $ 863,978 3 ,077,267 9 ,882,891 1 371 137 15,195,273 2,995 ,920 2,010 ,065 5,005,985 $ 20,201,258 Portfolio Liquidity Current Yield 0.00% 0 .58% 1.09% 0 .89% Average Yield 0 .00% 1.18% 1.40% Li quidity 20 % Maturity 1 • 2 yea rs Maturity over 2 yea rs Mini mum 30% Maximu m •Po licy Minim um/Maxim um •Actual [ Page 125 of 146 CITY OF KENAI INVESTMENTS 3/31/2017 FNMA 1.375 3/30/21 FNMA 1.50 5/25/21 TVA 3.875 2/15/21 TOTAL FDIC Insured CD's 0 .55 BKRSTN 5/30/17 0.90 BRKL 12/27/17 0.55 BKORWV 5/4/17 0 .65 COF 4/5/17 1.15 COF 7/17/17 0 .60 CARCBK 4/17/17 1.15ADS7/13/17 1.65 CWBKNA 12/30/19 1.0 MERI CK 6/9/17 0 .60 NEWREP 7/13/17 0 .65 NORPBK 6/12/17 0.60 PPBKMA 7/14/17 0.65 sov 4/12/17 0 .90 SONA 12/28/17 1.00 WFC 12/18/17 • TOTAL FD IC Insured CD's WELLS MONEY MKT AM L POOL -City ACCT WF Cash TOTAL TOTAL CURRE NT YIELD Maturity over 2 years 30% Maximum Li uidit 20% Minimum 9/30/2016 Quarterly w/10 days. Step 3/17 1.50, 3/18 1.75, 3/19 2.0, 3/20 3 .25 11/25/2016 Quarterly w/10 days. Bullet CD -12/31/10 Agreed to Amlip Agreed to GL Agreed to WF Max/Min 6,060,377.42 4,040,25 1.61 CITY OF KENAI Investments 03-31-17 COK Expected Call 3136G3DV4 1,000,000 3136G3MW2 502.479 880591EL2 555,678 5,057,648 .07 29700 06427LBU8 249,000 34147 064577CHO 245,000 845 064657AQ2 249,000 33954 140420G95 249,000 4297 14042E4QO 248,000 32393 14470PAR7 249,000 57570 20033ALN4 248,000 57176 20084TJW4 247,000 4365 32082BEL9 247,000 34519 59013JFE4 34860 64828QBJ6 34953 666613FU3 902 13 29950 80280JQJ3 249,000 57968 83540RFJ7 245,000 3511 9497485V5 245,000 9,883,200 .69 3,077,267 .18 1,371,136.94 19 ,389,252 .88 863,978.27 20,253,231 .15 MONTHS Return Actual 1.4522% 2,749.447 0.4985% 9,529,026 0 .9198% 20.201,258 Current year cost or Unrealized 06/30/16 03/31/17 Gain Accrued 1,000,070.00 984,470 .00 (1 5 ,600.00) 38.19 502,479 .17 488,115.00 (14,364 .1 7) 2,625.00 555,677.71 537,480.00 (18,197 .71 ) 2,475.69 5,081,978.07 5 ,005,985.00 (75,993.07) 13,198.95 249,000.00 248,930.28 (69.72) 581 .57 245,009 .80 244,936.30 (73.50) 30 .2 1 249,037.20 248,975.10 62 .10 105.06 249,000.00 248,997.51 789.30 248,572.88 248, 168.64 593.84 249,000.00 248,990.04 691.74 248,602.64 248, 171.12 148.46 247,000 .00 246,644.32 247,000 .00 246,313.34 248,071 .92 149.48 248,902.89 77.77 248,925.30 88.68 249,000.00 248,992.53 (7.47) 758.26 245,004.90 244,933.85 71 .05 24.16 245,034 .30 244,960 .80 (73.50) 93 .97 9,905,757.88 9,882,890.68 (22 ,867.20) 15,571 .24 3,077,267.18 3,077,267 .18 1,247.41 1,371, 136.94 1,371 , 136.94 639.55 19.436.140.07 19,337,279.80 (98,860.27) 30,657.15 863,978.27 863,978.27 20,300, 11 8.34 20,201,258 0 7 (98,860.27) 30,657.15 (51 ,973.08) Difference 3,310 ,930.27 OK 5 ,488,773.93 OK Page 126 of 146 CITY OF KENAI PERMANENT FUND INVESTMENT PORTFOLIO SUMMARY March 31 , 2017 Current or Current Fair Market Value Average Portfolio Target Portfolio 30-Jun-16 30-Sep-16 31-Dec-16 31-Mar-17 Yield Weight Weight Maximum Fixed Income Cash & Cash Equivalents 1,642.134 1,597,365 1,531,191 1,676,898 0.58% 6.05% Total Cash & Cash Equiva lents 1,642 ,134 1,597,365 1,531 ,191 1,676 ,898 Government & Corporate Securities Government Securities 4,966,107 5 ,324 ,096 5 ,381 ,797 4 ,872 ,143 1.86% 17.59% Corporate Securities 5,169 ,918 5,111 ,978 5,040 ,425 5.438.448 3.86% 19.63% Total Government & Corporate Securities 10, 136 ,025 10.436,074 10.422,222 10,310,591 2.69% 37 .22% Total Fixed Income 11 ,778 ,159 12 ,033.439 11 ,953.413 11 ,987.489 2.62% 43.27% 45.00% 65.00 % Equities Domestic Equities Standard & Poor's 500 Index 5,084,866 5 ,352 ,519 5,537, 151 5 ,555 ,087 20.06% 20.00% 25.00% Standard & Poor's 600 Small-Cap Index 1,226 ,016 1,3 09,783 1.450,836 1,616,615 5.83% 5.00% 10.00% Standard & Poor's 400 Mid-Cap Index 2,502,283 2 ,653,277 2 ,835 ,581 2 ,992,070 10.80% 10.00% 15.00% Total Domestic Equities 8,813 ,165 9 ,315 ,579 9 ,823,568 10 ,163,772 36.69% 35.00% 50.00% International Equities Vanguard Europe Pacific ETF 2 ,822 ,816 2 ,656 ,370 2 ,583 ,625 2 ,791,741 10.08% 10.00% 15.00% Vanguard Emerging Market ETF 1,194,532 1,302,166 1,21 1,948 1.420 ,558 5.13% 5 .00% 10.00% Total International Equities 4,017,348 3 ,958 ,536 3 ,795 ,573 4,212 ,299 15.20% 15.00% 25 .00% Real Estate Vanguard REIT ETF 1,356 ,651 1,305.437 1,242,077 1,342 ,088 4.84% 5.00% 10.00% Total Real Estate 1,356,651 1,305,437 1,242 ,077 1,342,088 4.84% 5.00% 10 .00% Total Equities 14,187,164 14,579,552 14,861,218 15 ,718 ,159 Total Portfolio 25 ,965 ,323 26,612 ,991 26,814,631 27,705 ,648 ~ 1QQ;QQ% 1QQ;QQ% .2QQ.;QQ% Total ALSPF Balance 22,939,838 23 ,512 ,038 23,690,184 24.477,380 Total GLSPF Balance 2,901 , 139 2,973 ,504 2 ,996,033 3,095,588 Total Kenai Community Foundation 124,345 127,447 128.413 132 ,680 Portfolio Composition Fixed Income Standard & Poor's Standard & Poor's Standard & Poor's Vanguard Europe Vanguard Emerging Vanguard REIT ETF 500 Index 600 Small-Cap 400 Mid-Cap Index Pacific ETF Market ETF •Current Portfolio Weight •Target Portfolio Weight CJ Maximum Portfolio Weight Portfolio Performance 15.00% ..----------------------------------------------------. 10.00% 5.00% 0 .00% ·5.00% -r-----.,----.,..-----,-----.,----.,-------,------.,--------r---------~-----------l Current Month Current Quarter Year to Date Last 1 Year Inception to Date •Portfo lio 0 .35% 3.33% 3.33% 8.79% 8.55% •Benchm ark 0.26% 3.28% 3 .28% 8.97% 8.65% Page 127 of 146 $27,000,000 $25,000,000 $23,000,000 $21,000,000 $19,000,000 $17,000,000 $15,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $- Transfer of $1,011,485 Transfer of $135,668 to General Fund Operations. Total ALSPF Balance to Airport Operations. to Airport Operations. Transfer of $1,075,123 to Airport Operations. Total GLSPF Balance Transfer of $154,172 to General Fund Operations. Transfer of $153,493 to General Fund Operations. Transfer of $1,147,714 to Airport Operations. Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $- Total Kenai Community Foundation Balance $50,000 investment. Initial investment of $66,143. ~.: ,.· ~'b Page 128 of 146 CITY OF KENAI PERMANENT FUNDS Account Statement -Period Ending March 31, 2017 ACCOUNT ACTIVITY Portfolio Value on 02-28-17 Contributions Withdrawals Change in Market Value Interest Dividends Portfolio Value on 03-31-17 INVESTMENT PERFORMANCE 27,610,325 0 -367 18,614 25,503 51,292 27,705,368 Current Account Benchmark: Equity Blend 10 .00 9.00 - "' 8.00 -;-- "' f! 7 00 -;--Cl E 600 " --;-- ~ ai: -~ :B S.00 0 ~ 4.00 -;-- 'C " --u 3 .00 f----,_____ -;--;; ... 2.00 ---;-- 1.00 f----,_____ ---0 .00 I -~--~~ --~ --Current Current Year to Latest 1 Inception to Month Ouarter Date Year Date I• Portfolio 0.35 I 3.33 3.33 8.79 8.55 I• Benchmark 0.26 I 3.28 3.28 8.97 8.65 Performance Is AnnuaRzed for Periods Greater than One Year r· , re. ar1 c: ncour lP,f rJ p 1· 1 ·epo:t "' _ T IUc 3 1r rom -''' _Jstodian. MANAGEMENT TEAM Client Relationship Manager: Your Portfolio Manager: Contact Phone Number: PORTFOLIO COMPOSITION Erner Mkts Real Estate 5% 5% ALASKA PERMANENT CAPITAL MANAGEMENT -----Re-g 1$tt'tf?d lm•es tmentAd-..1is.e-r Amber Frizzell, AIF ® Amber@apcm.net Bill Lierman, CFA ® 907/272 -7575 Page 129 of 146 Alaska Pennanent Capital Management Co. PORTFOLIO SUMMARY AND TARGET CITYOFKENAIPERMANENTFUNDS March 31 , 2017 O/o Asset Class & Target Market Value Assets Range FIXED INCOME (45%) US Fixed Income (40.0%) 10,310,585 37.2 35% to 65% Cash (5.0%) 1,694 ,808 6.1 0% to 10% Subtotal: 12,005,393 43.3 EQUITY (55%) US Large Cap (20.0%) 5,536,904 20.0 15% to 25% US Mid Cap (10.0%) 2,992,069 10.8 5% to 15% US Small Cap (5 .0%) 1,616,615 5.8 0% to 10% Developed International Equity (10.0%) 2,791,741 10.1 5%tol5% Emerging Markets (5 .0%) 1,420,558 5.1 0% to 10% Real Estate (5 .0%) 1,342,087 4 .8 0% to 10% Subtotal: 15,699,975 56.7 TOTAL PORTFOLIO 27,705,368 JOO Page 130 of 146 Alaska Permanent Capital Management Co. PORTFOLIO APPRAISAL CITYOFKENAIPERMANENTFUNDS March 31, 2017 Yield Average Total Market Pct. Annual Accrued to Quantity Security Cost Average Cost Price Value Assets Income Interest Maturity U.S. TREASURY 280,000 US TR EASU RY NOTES 99.65 279,016 99.53 278 ,698 1.01 2,450 1,131 1.1 8 0.875% Due 10-15-1 8 350,000 US TREASURY NOTES 99.64 348,742 99.61 348,631 1.26 4 ,3 75 1,837 1.40 1.250% Due 10-31-19 375,000 US TREASURY NOTES 100.33 376,230 99.28 372,3 19 1.34 4 ,687 414 1.50 1.250% Due 02-29-20 350,000 US TREASURY NOTES 101.1 2 353,917 103.26 361,4 17 1.30 9 ,187 3,477 1.69 2.625% Due 11-15-20 450 ,000 US TR EASU RY NOTES 100.06 450 ,2 8 1 97.11 436,977 1.5 8 5,062 1,2 73 1.84 1.125% Due 06-30-21 375,000 US TREASURY NOTES 99.34 372,510 101.19 379,481 1.37 7,969 2,003 1.83 2.125% Due 06-30-21 750,000 US TREASURY NOTES 100.59 754 ,414 100.46 753,427 2.72 15 ,000 6,298 1.90 2.000% Due 10-31-21 225 ,000 US TREASURY NOTES I 01.00 227 ,250 99.53 223,936 0.81 4,2 19 1,414 1.97 1.875% Due 05-31-22 500,000 US TREASURY NOT ES 98.24 491 ,2 11 102.02 510 ,115 1.84 12 ,500 1,554 2.16 2.500% Due 0 8-15-23 500 ,000 US TREASURY NOTES 100.23 501 ,133 100.80 504,005 1.82 11 ,875 1,476 2.26 2.375% Due08-15-24 425 ,000 US TREASURY NOTES 100 .65 427 ,756 93 .80 398 ,65 4 1.44 6,906 2,614 2.38 1.625% Due 05-15-26 250,000 US TREASURY NOTES 95.26 . 238,145 96.60 241 ,5 05 0.87 5,000 1,892 2.40 2.000% Due 11-15-26 Acc rned Interest 25,383 0.09 4 ,820,605 4,834,549 17.45 25,383 FNMA&FHLMC 35,585 FHLMC POOL Gl4203 104.56 37,209 105.33 37,482 0.14 1,423 119 1.43 4.000% Due 04-01-26 Accrued Interest 119 0.00 37 ,209 37,60 1 0.14 119 CORPORATE BONDS 200 ,000 STATOILASA IOI.I I 202 ,212 100.64 201 ,274 0.73 6,250 764 1.41 3.125% Due 0 8-17-17 250,000 UNITED PARCEL SERVICE 121.23 303 ,075 103.24 258 , I 05 0 .93 13 ,750 2,903 1.35 5.500% DueOl-15-1 8 200,000 MC DONALDS CORP M/T/N 104.35 20 8,698 I 03.43 206 ,860 0.75 10 ,700 892 1.56 5.350% Due03-0I-18 200 ,000 CHEVRON CORP 99.86 199 ,712 99.94 199 ,88 4 0.72 2,730 220 1.42 1.365% Due 03-02-1 8 Page 131 of 146 Alaska Permanent Capital Management Co. PORTFOLIO APPRAISAL CITYOFKENAIPERMANENTFUNDS March 31 , 201 7 Yield Average Total Market Pct. Annual Accrued to Quantity Security Cost Average Cost Price Value Assets Income In terest Maturity 200,000 BERKSHIRE HATHAWAY FINANCE 11 7 .86 235,7 14 I 04.43 208,860 0.75 10,800 4 ,080 1.40 5 .400% Due 05 -1 5-1 8 200,000 COMMONWEAL TH EDISON 12 3.20 246,400 105.98 211 ,962 0.77 13,900 2,934 2 .21 6.950% Due07-15-1 8 200,000 SOUTHERN CAL EDISON 122.07 244,134 105.13 210,264 0 .76 11 ,000 1,406 1.70 5.500% Due 0 8-1 5-1 8 200,000 TOYOTA MOTOR CRED IT CORP I 00.48 200,958 100.85 201 ,704 0.73 4,200 863 1.6 1 2.100% Due 01-17-19 500,000 GOLDMAN SACHS GROU P INC. 116.5 1 582,570 109.75 548,730 1.98 37,500 4 ,792 2 .16 7.500% Due02-15-19 200,000 MICROSOFT CORP 11 7.24 234,472 105.79 211 ,578 0.76 8,4 00 2,800 1.47 4.200% Due 06-01-19 200,000 TORONTO-DOMINION BANK I 01.89 203,78 2 100.68 201,368 0.73 4,500 75 1.96 2.250% Due 09-25-19 200,000 HSBC USA INC 99.61 199,2 16 I 00.47 200,938 0 .73 4,750 1,82 1 2.19 2.375% Due 11-13-19 250,000 CAPITA L ONE 99.94 249,850 100 .02 250,052 0 .90 5,875 995 2.34 2 .3 50 % Due 01-31-20 200,000 ENTER PR~EPRODUCTSO PE R 11 2.75 225,494 108.92 217,8 42 0.79 10 ,400 867 2.46 5 .200% Due 09-01-20 250,000 PN C BANK NA 99.72 249,300 100 .43 251,085 0.91 6,125 2,484 2.32 2.450% Due 11 -05-20 200,000 NB C UN IVERSAL MED IA LLC 109.20 218,408 107.40 214,800 0.78 8 ,750 4,375 2.42 4.375% Due 04-01-21 200,000 AMER ICAN EXPRESS CREDIT 99.92 199,850 99.10 19 8,2 10 0 .72 4 ,500 1,8 25 2.48 2.250% Due 05-05-21 200,000 MORGAN STANLEY 114.98 229,964 110.89 22 1,790 0 .8 0 11 ,000 1,925 2.80 5.500% Due 07-28-21 200,000 G LLEAD SCIENCES INC 96.28 192,564 96.81 193,624 0.70 3,900 325 2 .64 1.950% Due 03-01-22 200,000 BANK AMER CORP 99.34 198,686 100.62 201,242 0.73 6,600 1,467 3.18 3.300% Due 0 1-11 -23 200,000 Waste Management lnc 100.24 200,4 78 98.2 1 196,412 0.71 4,800 1,800 2.72 2.400% Due 05-15-23 200,000 JPMORGAN C HAS E & CO 105.18 210,362 103 .95 207,894 0.75 7,750 1,292 3.22 3.875% Due 02-01-24 175 ,000 PRUDENTIAL FINANC IA L INC 103.15 180,505 102.87 180,028 0.65 6 ,125 2,314 3.05 3.500% Due 05 -1 5-24 200,000 WELLS FARGO & COMPANY 99.88 199 ,764 100.15 200,308 0 .72 6,600 403 3.27 3 .300% Due 09-09-24 Accrued Interest 43,62 1 0.16 5 ,6 16,168 5,438,435 19.63 43 ,62 1 2 Page 132 of 146 Alaska Permanent Capital Management Co. PORTFOLIO APPRAISAL CITYOFKENAIPERMANENTFUNDS March 31, 2017 Yield Average Total Market Pct. Annual Accrued to Quantity Security Cost Average Cost Price Value Assets Income Interest Maturity DOMESTIC FIXED INCOME FUNDS/ETF 1,000,000 GOLDMAN SACHS PRIME OBLIGATIONS FUND 1.00 1,000 ,000 1.00 1,000,300 3.61 NA DOMESTlC LARGE CAP EQUITY FUNDS/ETF 34,000 FLEXSHARES QUAL DIV ETF 40.67 1,382 ,644 40.82 1,387 ,88 0 5.01 NA 17,600 SPDR S&P 500 ETF 110.49 1,944,571 235.74 4,149,024 14.98 NA 3 ,327,215 5,536,904 19.98 DOMESTIC MID CAP EQUITY FUNDS/ETF 17 ,475 IS HARES CORE S&P MIDCAP 400 ETF 66.27 I , 158 ,075 171.22 2,992,069 10.80 NA DOMESTIC SMALL CAP EQUITY FUNDS/ETF 23,375 ISHARES S&P SMALLCAP 600 INDEX ETF 31.00 724,633 69.16 1,616 ,6 15 5.84 NA INTERNATIONAL EQUITY FUNDS/ETF 48,175 ISHARES ETF CORE MSCI EAFE 49.54 2,386,349 57.95 2,791,741 10 .08 NA EMERGING MARKET FUNDS/ETF 29,725 ISHARES ETF CORE MSC! EMERGING MKTS 37.29 I, I 08,389 47.79 1,420,558 5.13 NA REAL ESTATE 16 ,250 VANGUARD REIT ETF 35.19 571 ,8 29 82.59 1,342,087 4.84 NA CASH AND EQUIVALENTS DIVIDEND ACCRUAL 18 ,183 18 ,183 0.07 WF ADV GOVT MM FD-INSTL # 1751 676,325 676,325 2.44 -- 694,508 694,508 2.51 TOT AL PORTFOLIO 21,444,979 27 ,705,368 100 301,560 69,123 3 Page 133 of 146 Alaska Permanent Capital Management Co. TRANSACTION SUMMARY CITYOFKENAIPERMANENTFUNDS From 03-01-17 To 03-31-17 Trade Date Settle Date Security DEPOSITS AND EXPENSES MANAGEMENT FEES 03-31-17 03-31-17 MANAGEMENTFEES DIVIDEND DOMESTIC FIXED INCOME FUNDS/ETF 03-02-17 03-02-17 GOLDMAN SACHS PRIME OBLIGATIONS FUND DOMESTIC LARGE CAP EQUITY FUNDS /ETF 03-17-17 04-28-17 SPDR S&P 500 ETF 03-20-17 03-24-17 FLEXSHARES QUAL DIV ETF DOMESTIC MID CAP EQUITY FUNDS/ETF 03-24-17 03-30-17 !SHARES CORE S&P MIDCAP 400 ETF DOMESTIC SMALL CAP EQUITY FUNDS/ETF 03-24-17 03-30-17 !SHARES S&P SMALLCAP 600 INDEX ETF REAL ESTATE 03-22-17 03-28-17 VANGUARD REIT ETF INTEREST CASH AND EQUIVALENTS 03-01-17 03-01-17 WELLS FARGO SECURED MONEY MARKET ACCOUNT Quantity Trade Amount 3,975.45 3,975.45 653.42 18,182.88 8,216.07 26,398.95 9,336.32 5,234 .85 9,668.75 51,292.29 170.42 Page 134 of 146 Trade Settle Date Date Alaska Pennanent Capital Management Co . TRANSACTION SUMMARY CITYOFKENAIPERMANENTFUNDS From 03-01-17 To 03-31-17 Security Quantity CORPORATE BONDS 03-01-17 03-01-17 ENTERPRISE PRODUCTS OPER 5.200% Due 09-01-20 03-01-17 03-01-17 GILEAD SCIENCES INC 1.950% Due 03-01-22 03-01-17 03-01-17 MCDONALDS CORP MITIN 5.350% Due 03-01-18 03-02-17 03-02-17 CHEVRON CORP 1.365% Due 03-02-18 03-09-17 03-09-17 WELLS FARGO & COMPANY 3.300% Due 09-09-24 03-24-17 03-25-17 TORONTO-DOMINION BANK 2.250% Due 09-25-19 FNMA&FHLMC 03-15-17 03-15-17 FHLMC POOL G14203 4 .000% Due 04-01-26 PRINCIPAL PAYDOWNS FNMA&FHLMC 03-15-17 03-15-17 FHLMC POOL 014203 760.32 4.000% Due 04-01-26 2 Trade Amount 5,200.00 1,744.17 5,350.00 1,365.00 3,300.00 2,250.00 19 ,209 .17 121.15 19,500.74 760 .32 760.32 Page 135 of 146 Alaska Permanent Capital Management Co. TRANSACTION SUMMARY CITYOFKENAIPERMANENTFUNDS From 03-01-17 To 03-31-17 Trade Date Settle Date TRANSFER IN LONG CASH AND EQUIVALENTS Security 03-30-17 WF ADV GOVT MM FD-INSTL #1751 TRANSFER OUT LONG CASH AND EQUIVALENTS 03-30-17 WELLS FARGO SECURED MONEY MARKET ACCOUNT WITHDRAW CASH AND EQUIVALENTS 03-20-17 03-20-17 WELLSFARGOSECURED MONEY MARKET ACCOUNT 3 Quantity Trade Amount 676,325.26 676,325.26 676,325.26 676,325.26 366.55 366.55 Page 136 of 146 Date Quantity Alaska Permanent Capital Management Co. REALIZED GAINS AND LOSSES CITYOFKENAIPERMANENTFUNDS From 03-01-17 Through 03-31-17 Avg. Cost Security Basis Proceeds 03-15-17 760.32 FHLMC POOL Gl4203 795 .01 760.32 4 .000 % Due 04-01-26 TOTAL GAINS TOTAL LOSSES 795.01 760.32 Gain Or Loss -34.69 0.00 -34 .69 -34.69 Page 137 of 146 Alaska Pennanent Capital Management Co. CASH LEDGER CITY OF KENAI PERMANENT FUNDS From 03-01-17 To 03-31-17 Trade Date Settle Tran Date Code Activity WF ADV GOVT MM FD-INSTL #1751 03-01-17 Beginning Balance 03-30-17 03-30-17 ti Addition 03-31-17 Ending Balance DIVIDEND ACCRUAL 03-01-17 Beginning Balance 03-17-17 04-28-17 dp Dividend 03-31-17 Ending Balance Security to Portfolio SPDR S&P 500 ETF WELLS FARGO SECURED MONEY MARKET ACCOUNT 03-01-17 Beginning Balance 03-01-17 03-01-17 dp Interest ENTERPRISE PRODUCTS OPER 5 .200% Due 09-01-20 03-01-17 03-01-17 dp Interest GILEAD SCIENCES INC 1.950% Due 03-01-22 03-01-17 03-01-17 dp Interest MCDONALDS CORP M/T/N 5 .350% Due 03-01-18 03-01-17 03-01-17 dp Interest WELLS FARGO SECURED MONEY MARKET ACCOUNT 03-02-17 03-02-17 dp Interest CHEVRON CORP 1.365% Due 03-02-18 03-02-17 03-02-17 dp Dividend GOLDMAN SACHS PRIME OBLIGATIONS FUND 03-09-17 03-09-17 dp Interest WELLS FARGO & COMPANY 3.300% Due 09-09-24 03-15-17 03-15-17 dp Interest FHLMC POOL G 14203 4.000% Due 04-01-26 Amount 0.00 676 ,325.26 676,325.26 0.00 18,182.88 18,182.88 623 ,321.34 5,200.00 1,744 .17 5,350.00 170.42 1,365.00 653.42 3,300.00 121.15 Page 138 of 146 Alaska Pennanent Capital Management Co . CASH LEDGER CITYOFKENAIPERMANENTFUNDS From 03-01-17 To 03-31-17 Trade Settle Tran Date Date Code Activity Security Amount 03-15-17 03-15-17 dp Paydown FHLMC POOL 014203 760.32 4 .000 % Due 04-01-26 03-20-17 03-20-17 wd Withdrawal from Portfolio -366 .55 03-20-17 03-24-17 dp Dividend FLEXSHARES QUAL DIV ETF 8,216 .07 03-22-17 03 -28-17 dp Dividend VANGUARD REIT ETF 9 ,668 .75 03-24-17 03-25-17 dp Interest TORONTO-DOMINION BANK 2 ,250.00 2 .250 % Due 09-25-19 03-24-17 03-30-17 dp Dividend ISHARES CORE S&P MIDCAP 9 ,336 .32 400 ETF 03-24-17 03-30-17 dp Dividend !SHARES S&P SMALLCAP 600 5,234.85 INDEXETF 03-30-17 03-30-17 to Withdrawal from Portfolio -676 ,325 .26 03-31-17 Ending Balance 0.00 2 Page 139 of 146 PURCHASE ORDERS BETWEEN $2,500.00 AND $15,000.00 FOR COUNCIL REVIEW COUNCIL MEETING OF: MAY 3, 2017 VENDOR DESCRIPTION DEPT. ACCOUNT AMOUNT INGRAM LIBRARY SERVICES BOOKS LIBRARY BOOKS 4,000.00 PENINSULA PUMPING PORTA-POTTIES MAY-JUNE RECREATION RENTALS 3,500.00 EBSCO ANNUAL SUBSCRIPTIONS LIBRARY BOOKS 3,447.55 ZONES CAMERAS PERSONAL USE FISHERY SMALL TOOLS 6,367.00 ALASKA TACTICAL & SECURITY TEO BALLISTIC VESTS POLICE SMALL TOOLS 3,645.00 Page 140 of 146 Cook Inlet RCAC (CIRCAC) Board of Directors Regular and Annual Meeting Friday, April 7, 2017 – Cook Inlet Aquaculture Association, Kenai Directors Update from John Williams, Representing the City of Kenai CIRCAC’s Board of Directors held its Regular and Annual Meetings in Kenai on Friday, April 7. In his opening remarks, City of Kenai Mayor Brian Gabriel welcomed the Council and guests to Kenai and spoke of the particular challenges to navigation in Cook Inlet. The meeting was very well attended by the Board, members of the pubic and representatives from the United States Coast Guard (USCG), Alaska Department of Environmental Conservation (ADEC), Alaska Department of Fish and Game, Tesoro Alaska, Cook Inlet Spill Prevention & Response, Inc. (CISPRI), Southwest Alaska Pilots Association, Alaska Chadux and Hilcorp Alaska. In light of several recent incidents in Cook Inlet which have raised questions about Cook Inlet’s aging infrastructure, the Board requested updates from the USCG, Hilcorp Alaska, and ADEC on response actions and future plans for improvements. Captain Marc Bayer of Tesoro was also asked to update the Board on the loss of propulsion of a Tesoro Charter Vessel while under pilotage in Cook Inlet with a full load of jet fuel. Below are the highlights of the presentations. Captain Paul Albertson, Commander Sector Anchorage—went over the sequence of events of the Platform Anna oil spill, including USCG coordination with ADEC, NOAA, EPA and Hilcorp. The Captain specifically commended CIRCAC for its contributions in the Unified Command (UC) and the environmental summary compiled by CIRCAC’s Director of Science and Research, Susan Saupe. He observed that the UC would have benefited from having a very robust Joint Information Center (JIC). The cause and source of the leak are still under investigation. Captain Albertson said his impulse going forward will be to immediately call for a UC for any incident in the Inlet. Commissioner Larry Hartig, ADEC—focused his comments on the path forward to address Cook Inlet’s aging infrastructure. The gas line leak alone raised questions nationwide of whether a subsea gas pipeline can operate safely in Alaska, particularly under ice. The Commissioner summarized actions ADEC had already taken after the 2006 North Slope oil spills, which could inform a Cook Inlet infrastructure risk assessment going forward, including conducting infield inspections and technical audits of corrosion management programs--inspections and audits which included Cook Inlet’s flow lines. The Commissioner suggested that while corrosion is not his biggest concern in Cook Inlet because of this, the corrosion management program can be revisited to make sure it is functioning as it should. Despite CIRCAC’s efforts, the Legislature did not appropriate funding to fully assess Cook Inlet, along with the North Slope and Cook Inlet pipelines and infrastructure did not undergo the same scrutiny. Figure 1 (From left) CIRCAC Executive Director Mike Munger, City of Kenai Mayor Brian Gabriel and ADEC Commissioner Larry Hartig. Page 141 of 146 His recommendations for Cook Inlet going forward: • Update the inventory, to include regulatory jurisdiction, overlaps and gaps with a focus on offshore lines and maybe some higher risk onshore lines. • Compile a spill history, although the records are not as robust and may not include root cause. • Consider recommendations from the North Slope for systematic way of investigating. • Prepare a collective white paper to summarize the current situations, concerns and what should be considered. • Utilize the white paper as a springboard scoping out a risk assessment or analysis. Dave Wilkins, Senior VP of Hilcorp Alaska—pledged to the Council that Hilcorp is in Alaska for the long haul, is a highly regulated business and complies with all regulations. In response to CIRCAC’s concerns regarding staffing at key facilities, he noted that many changes are efficiencies and that Hilcorp has reassigned, but not laid off any Alaska staff. Mark McKinley, Facilities and Outreach Engineer; Joe Kaiser, Operating Engineer; and Juliana Orczewska, Environmental Manager—Hilcorp staff provided an overview of their Offshore Platforms (which is included in a PowerPoint Presentation at https://www.circac.org/who-we-are/council-meetings- minutes/), discussed pigging of the lines, and recent actions to secure the lines and monitor potential environmental impacts following the incidents. Susan Saupe noted that during the past few months, many requests came in for CIRCAC's background data about Cook Inlet and she is working with AOOS to make the data more readily accessible in the future. Molly McCammon encouraged Hilcorp to work with AOOS and CIRCAC to also post their monitoring and post-leak study data. Rich Novcaski, Midstream Manager, Harvest Alaska—provided an update of plans to decommission the Drift River Oil Terminal and shift to a subsea pipeline transport system to move crude directly to Tesoro. Options under consideration include 1) refurbishing the Drift River Oil Terminal facility; 2) constructing a new pipeline directly across inlet; or 3) utilizing the existing Cook Inlet Gas Gathering System or CIGGS (which was installed in 1985-86). They are leaning toward the third option. The project could be completed as early as 2018. CIRCAC’s support for the subsea pipeline requires assurance that the existing CIGGS line is secure and has utmost structural integrity. Decommissioning, removal and restoration (DR&R) of the Drift River Oil Terminal would entail removing the oil, cleaning it up, and removing equipment. Graham Wood, Program Manager and Ex Officio to CIRCAC for ADEC—presented ADEC’s program level perspective on the recent spills, and responded to CIRCAC’s Position Paper on the Tyonek diesel spill (see Board Packet at www.circac.org/who-we-are/council-meetings-minutes/). Mr. Munger noted that Figure 2 Juliana Orczewska explains Hilcorp's environmental sampling plan, pictured with (from l), Carla Stanley and Graham Wood, ADEC. Page 142 of 146 many of the concerns expressed in the Position Paper have been resolved although the transition is still ongoing. Mr. Wood agreed that a Unified Command should have been stood up sooner and information management by ADEC needed improvement during the Middle Ground Shoal Release (Platform Anna). ADEC continues working with Hilcorp to identify the source of the leak. With regard to CIRCAC’s Position Paper, Mr. Wood acknowledged that ADEC should have identified the incident as a spill to the environment. ADEC maintained its position, however, to not send a responder to the platform as an issue of safety. To be more responsive to CIRCAC’s concerns, ADEC is consolidating the master training plan into one single program to ensure consistency in oil spill response training statewide with emphasis on forcing staff outside their comfort zones of what they’re used to doing. CIRCAC’s Director of Operations noted improved communications with the department as demonstrated during the recent incidents. Mr. Munger noted that there are always lessons to be learned in every incident. Regarding the Anna Platform response and other incidents in the future, there should be no variabilities in standing up a Unified Command to err on the side of safety. He also criticized the lack of a Joint Information Center during the Middle Ground Shoal incident. Mr. Munger also disagreed with Mr. Wood on the decision not to send ADEC personnel to the Tyonek Platform during the diesel spill incident. Captain Marc Bayer, Tesoro—addressed the temporary loss of power for Tesoro’s C/V Jurkaline as it was under pilotage en route to the Port of Anchorage in December 2016. The Jurkaline, a 640 foot-long ice- class vessel, delivers jet fuel to Anchorage once a month. The cause of the shutdowns was a clogged primary and then secondary lube oil filter. Corrective actions now include regularly scheduled inspections of residual tank valves, among other steps that have been taken to prevent this type of situation from recurring. Executive Director’s Report (Mike Munger)—prior to the most recent spills, CIRCAC was already in the process of updating its 2000 report, which was an overview of the pipelines, inventory, the maze of jurisdictional authority and other aspects. With recent incidents focusing much needed attention on Cook Inlet and highlighting the need for an infrastructure assessment, CIRCAC envisions its study to be a component of the larger comprehensive infrastructure assessment, and is working with State and Federal agency partners to develop the project scope and secure funding. Mr. Munger said one potential bottleneck is the difficulty of accessing industry information which will be integral to assessing these pipelines. In discussions with Hilcorp, they have indicated their willingness to be as transparent as possible. Figure 3 Chris Burns, Preparedness Manager, Alaska Chadux, greets Director Bob Flint who represents Recreation Groups. Page 143 of 146 Special Recognitions and Awards Outstanding Service to the Council and Cook Inlet Captain Paul Albertson Ex Officio, US Coast Guard 2016 Captain Glen Glenzer Volunteer of the Year Carla Stanley Years of Service • 5 Years--Walt Sonen, Director (City of Seldovia); Ginny Litchfield (Ex Officio) and Jan Hansen, PROPS Public Member • 10 Years--Bob Flint, Director (Recreation Groups) and Ted Moore, EMC Public Member • 20 Years--Paul Shadura, Director (Commercial Fishing Groups) Board and Committee Appointments: Following the regular meeting, the Council held its Annual Meeting and seated elected and appointed board members and public members to committees, elected officers, and established committee assignments. Grace Merkes, Michael Opheim and Deric Marcorelle were all re- seated to the Board of Directors, and John Tuttle appointed as Public Member to the Environmental Monitoring Committee. Kyle Crow, appointed by the Kodiak Island Borough, attended his first Board Meeting. The Council also welcomed the newest certified member of the Tourism Stakeholder Group, the Kenai Peninsula Tourism Marketing Council. Staff Reports and presentations are available online at www.circac.org/who-we-are/council-meetings-minutes/. The next Council meeting will be September 8 at Land’s End Resort, in Homer. Cook Inlet Regional Citizens Advisory Council 8195 Kenai Spur Highway Kenai, Alaska 99611 www.circac.org 907.283.7222 Figure 6 CIRCAC Executive Director Mike Munger with Kyle Crow, Kodiak Island Borough representative on the Board. Figure 5 Carla Stanley, 2016 Captain Glen Glenzer Volunteer of the Year (with John Williams) Figure 4 John Williams honors Captain Paul Albertson (r.) for Outstanding Service to the Council and Cook Inlet. Page 144 of 146 RCAC Members Tourism Group Alaska Native Group Environmental Group Recreation Group Aquaculture Associations Commercial Fishing Group City of Kodiak City of Kenai City of Seldovia City of Homer Kodiak Island Borough Kenai Peninsula Borough Municipality of Anchorage "The mission of the Council is to represent the citizens of Cook Inlet in promoting environmentally safe marine transportation and oil facility operations in Cook Inlet. " April20,2017 The Honorable Brian Gabriel Mayor City of Kenai 210 Fidalgo Kenai, AK 99611 Mayor Gabriel: ~sOFF/c~ ~~ CJ' ce\\Je6 ~e .'i t\\\1 "" ')! f\. On behalf of the Cook Inlet Regional Citizens Advisory Council (CIRCAC) I would like to thank you for welcoming and addressing our Directors during its April 7 Board meeting. Your commitment to support our work is very much appreciated, and your remarks were very timely and give us optimism as we pursue our mandates moving forward. Also, we thank the City of Kenai for its continued support of our ice camera on the beach at the mouth of the Kenai River. As part of our Ice Forecasting Network, this camera helps provide a great service to the maritime community during winter months. CIRCAC is a nonprofit corporation organized exclusively for the oversight, monitoring, assessing and evaluation of oil spill prevention, safety and response plans, terminal and oil tanker operations, and environmental impacts of oil tanker and oil facilities operations in Cook Inlet under the provisions of Section 5002 of the Oil Pollution Act of 1990. The education -and such meaningful insights as you offered -provided by government officials, industry and agency representatives, and other partners significantly assists the Council and its committees in making sound decisions and recommendations. Once again, I thank you for your time and your interest in the work of CIRCAC. Sincerely, Mic~d~~ Executive Director Cook Inlet Regional Citizen s Advisory Council* 8195 Kenai Spur Hwy, Kenai, AK 99611-8033 Phone: (907) 283-7222 *Fax (907) 283-6102 www.circ ac.org Page 145 of 146 KENAI PENINSULA BOROUGH 144 North Binkley Street• Soldotna. Alaska 99669-7520 To ll -free w ithin the Borough: 1-800-478-4441 PHONE: (907) 262-4441 •FAX: (907) 262-1892 April 10 ,2017 Mayor Brian Gabriel City of Kenai 210 Fidalgo Ave. Kenai. AK 99611 Dear Mayor Gabriel, O F kpb .us ~s c~ ~~ (! Rece'"eo "\ ! t\\\1 l\\lR l MIKE NAVARRE BOROUG H MAYOR Mr. James Glendening represented the City of Kenai on the Kenai Peninsula Borough Planning Commission since March 2015. Mr. Glendening recently submitted his resignation from the Commission. In accordance with AS 29.40.020. appointments to the Kenai Peninsula Borough Planning Commission are made by the Borough Mayor. Commission members from a home rule or first class city shall be selected by the Borough Mayor from a list of recommendations made by the City Council. l would appreciate a list of recommended candidates to fill the vacancy for this post. Candidates must be qualified voters of the· Kenai Peninsula Borough who reside within the City of Kenai . It would be helpful if I could receive your council approved suggestions by May 22, 2017. Assembly confirmation of appointments to the Kenai Peninsula Borough Planning Commission is tentatively scheduled for June 6. 2017. Thank you for your time and attention with this request. I look forward to receiving your list of candidates for this service. Sincerely, htL~ Mike Navarre Mayor cc: Planning Commission Chair KPB Planning Department City of Kenai Page 146 of 146 LAWTON ACRES Why listen to me? ●New perspective ●No dog in this fight ●No emotional attachment ●More objective Stakeholders ●Airport ●Business Community ●Neighborhood Residence ●All residents of Kenai ●Dr. Sorbus Airport ●FAA deed ●Importance of airport to the region –Ecconmic –Businesses –Standard of living Business community ●Prime business location ●Empty properties in the business area ●Do we have the natural traffic? Neighborhood Residents ●“Quality of Life” -why may mooved here or remain ●Traffic concerns ●Noise polution ●Light polution ●As major if not the major life investment ●The part many have had in building the community All Residents of Kenai ●Quality of life ●Area ambiance ●Taxes –To purchase –From the development –Addition cost to provide service – Dr. Sorhus ●Will benefit community ●Is willing to make the investment ●Has done a lot to make address neighborhood residents concerns The McPlan ●Binding election for the city to buy Lawton Acres (It’s their money) ●If approved, airport sells Lawton Acres to the city ●The city sells to Dr. Sorhus ●The city can then decide what to do with the rest. ●If not airport does what they want In conclusion ●Not everyone is going to get everything they want ●Let those who will pay for the property make the decision ●The airport will be out of the equation ●Neighborhood and Dr. Sorus seem to be the most resonable