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HomeMy WebLinkAbout2017-06-07 Council Packet KENAI CITY COUNCIL – REGULAR MEETING JUNE 7, 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) C. UNSCHEDULED PUBLIC COMMENTS (Public comment limited to three (3) minutes per speaker; thirty (30) minutes aggregated) D. PUBLIC HEARINGS 1. Ordinance No. 2960-2017 – Amending Kenai Municipal Code 14.25.015- Landscaping/Site Plan for Land Clearing, and Kenai Municipal Code 14.25.020-Application, to Prohibit Land Clearing of More Than Twenty Percent of a Parcel Without an Approved Landscaping/Site Plan. ....................... Pg. 5 2. Ordinance No. 2961-2017 – Adopting the Annual Budget for the Fiscal Year Commencing July 1, 2017 and Ending June 30, 2018 and Committing $1,000,000 of General Fund, Fund Balance for Capital Improvements. .. Pg. 8 3. Ordinance No. 2962-2017 – Amending the Kenai Municipal Code, Title 23, “Personnel Regulations,” Chapter 23.55 Fiscal Year 2018 Operating Budget Salary Schedule. ................................................................................... Pg. 28 4. Ordinance No. 2963-2017 – Authorizing Budget Adjustments and Increasing General Fund Estimated Revenues and Appropriations for Costs in Excess of Budgeted Amounts. ............................................................................... Pg. 31 5. Ordinance No. 2964-2017 – Repealing Kenai Municipal Code Chapter 5.15- Private Detective Agencies, Removing Specific Local Regulation of Detective Agencies. ............................................................................................... Pg. 40 Kenai City Council Meeting Page 2 of 4 June 7, 2017 6. Resolution No. 2017-25 – Authorizing the Purchase of Real Property Described as U.S. Survey 257, Located within Section 5, Township 5 North, Range 11 West, Seward Meridian, from Russell Clark, for the Public Purpose of Including the Property in the Bluff Erosion Restoration Project and Determining that the Public Interest will Not be Served by an Appraisal. .............................................................................................................. Pg. 46 7. Resolution No. 2017-26 – Awarding an Agreement for Engineering of Kenai Recreation Center Mechanical Improvements. ...................................... Pg. 55 8. Resolution No. 2017-27 – Fixing the Rate of Levy of Property Tax for the Fiscal Year Commencing July 1, 2017 and Ending June 30, 2018. ........ Pg. 57 9. Resolution No. 2017-28 – Amending its Comprehensive Schedule of Rates, Charges, and Fees to Incorporate Changes to be Adopted in the FY2018 Budget Process to Include Adjusting Monthly Rental Rates at Vintage Pointe, Increasing Fees at the Kenai Municipal Airport, Increasing Fees for Water and Sewer Service, and Increasing Fees at the Kenai Multipurpose Facility. .............................................................................................................. Pg. 59 10. Resolution No. 2017-29 – Authorizing the City Manager to Enter into a Contract with Premera Blue Cross Blue Shield Of Alaska to Provide Employee Health Care to City Employees Effective July 1, 2017. .......................... Pg. 70 11. Resolution No. 2017-30 – Authorizing the City Manager to Renew the City’s Insurance Coverage with Alaska Public Entity Insurance (APEI) for July 1, 2017 through June 30, 2018. ................................................................. Pg. 73 E. MINUTES 1.*Work Session of May 15, 2017 ................................................................ Pg. 77 2.*Regular Meeting of May 17, 2017 ........................................................... Pg. 80 F. UNFINISHED BUSINESS 1. Resolution No. 2017-24 – Amending Policy No. 2016-01, Procedures for Commissions, Committees and Council on Aging – To Provide Procedures for Council Involvement in Commissions, Committees and Council on Aging Meetings. ............................................................................................... Pg. 97 G. NEW BUSINESS 1. *Action/Approval – Bills to be Ratified. ............................................. Pg. 103 2. *Ordinance No. 2965-2017 – Amending Kenai Municipal Code 4.32.015 – Local Amendments to the 2012 International Residential Code, to Facilitate Fee Schedule Changes for Building Permits and Plan Reviews. ......... Pg. 104 3. *Ordinance No. 2966-2017 – Increasing General Fund Estimated Revenues and Appropriations for Costs in Excess of Budgeted Amounts. .......... Pg. 108 Kenai City Council Meeting Page 3 of 4 June 7, 2017 4. *Ordinance No. 2967-2017 – Appropriating Transfers for FY2018 Budgeted Capital Projects in the Public Safety Capital Project Fund, the Kenai Animal Shelter Improvements Capital Project Fund, the Municipal Roadway Improvements Capital Project Fund, the City Shop Improvements Capital Project Fund, and the Cemetery Improvements Capital Project Fund. ........................................................................................................... Pg. 111 5. *Ordinance No. 2968-2017 – Appropriating General Fund Balance Funds into General Fund Land Administration-Lands Fund for the Purchase by the City of Kenai’s General Fund of Airport Property Outside the Airport Reserve Constituting Approximately 16.49 Acres of Real Property Described as S1/2 S1/2 SW1/4, Section 33,T6N, R11W, Seward Meridian, Commonly Referred to as ‘Lawton Acres’ and Deed Restricting the Future Use Of the Property to Parks and Recreational Uses to be Retained by the City for a Public Purpose. ........................................................................................................... Pg. 115 6. Action/Approval – Approving Notification to the Kenai Peninsula Borough that the City of Kenai will not be Utilizing Consolidated Public Safety Dispatching. ........................................................................................................... Pg. 120 7. Action/Approval – Special Use Permit to Crowley Petroleum Distribution Alaska, LLC for Fueling on the Apron at the Kenai Municipal Airport. . Pg. 122 8. Action/Approval – Special Use Permit to Evert’s Air Fuel, Inc. for Aircraft Taking Delivery of Bulk Fuel on the Apron at the Kenai Municipal Airport. ........................................................................................................... Pg. 132 9. Action/Approval – Special Use Permit to Evert’s Air Fuel, Inc. for Aircraft Loading and Parking on the Apron at the Kenai Municipal Airport. ...... Pg. 143 10. Action/Approval – Special Use Permit to Pacific Star Seafoods, Inc. for On Loading and Offloading Fish at the Kenai Municipal Airport. ............... Pg. 153 11. Action/Approval – Mayoral Nomination and Council Confirmation of Jennifer Joanis to the Parks and Recreation Commission. ............................... Pg. 163 12. Action/Approval – Approving a Hiring Process for the City Clerk Position. ........................................................................................................... Pg. 164 H. COMMISSION/COMMITTEE REPORTS 1. Council on Aging 2. Airport Commission ............................................................................ Pg. 169 3. Harbor Commission ............................................................................ Pg. 172 4. Parks and Recreation Commission ..................................................... Pg. 174 5. Planning and Zoning Commission ...................................................... Pg. 176 6. Beautification Committee .................................................................... Pg. 187 7. Mini-Grant Steering Committee I. REPORT OF THE MAYOR Kenai City Council Meeting Page 4 of 4 June 7, 2017 J. ADMINISTRATION REPORTS 1. City Manager ...................................................................................... Pg. 189 2. City Attorney 3. City Clerk K. ADDITIONAL PUBLIC COMMENT 1. Citizens Comments (Public comment limited to five (5) minutes per speaker) 2. Council Comments L. EXECUTIVE SESSION – None. M. PENDING ITEMS – None. N. ADJOURNMENT **************************************************************************************************** INFORMATION ITEMS 1. Purchase Orders between $2,500 and $15,000 for Council Review. 2. Notification of Selection of Brittany Gilman as Student Representative. 3. Alaska LNG Update. 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. New Text Underlined; [DELETED TEXT BRACKETED] Sponsored by: Council Member’s Knackstedt and Glendening CITY OF KENAI ORDINANCE NO. 2960-2017 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING KENAI MUNICIPAL CODE 14.25.015-LANDSCAPING/SITE PLAN FOR LAND CLEARING, AND KENAI MUNICIPAL CODE 14.25.020-APPLICATION, TO PROHIBIT LAND CLEARING OF MORE THAN TWENTY PERCENT OF A PARCEL WITHOUT AN APPROVED LANDSCAPING/SITE PLAN. WHEREAS, Kenai Municipal Code Chapter 14.25–Landscaping/Site Plan Regulations, regulates landscaping and site plan requirements in the City; and, WHEREAS, landscaping plans provide for landscaping and/or the retention of natural vegetation for commercial, industrial and multifamily development, to enhance the community environment and visual character, and to provide attractive and functional separation, providing visual and sound screening between uses, and reducing erosion and storm runoff; and, WHEREAS, site plans provide for orderly and safe development of the City commensurate with protecting the health, safety and welfare of its citizens, and support the establishment of adequate and convenient open spaces, light and air, in order to avoid congestion of commercial and industrial areas; and, WHEREAS, amendments to KMC Chapter 14.25 are needed to ensure that landscaping and site plans are approved prior to land clearing that will result in removal of more than 20% of existing trees, shrubs or natural vegetation even when no building permit is requested or required, in order to prohibit land clearing in a manner that conflicts with the purpose and intent of landscaping and site plans; and, WHEREAS, while a more comprehensive review of KMC Chapter 14.25 is being conducted by the Planning and Zoning Commission, as well as other City commissions, this Ordinance is needed at this time to prohibit land clearing without a landscape/site plan during this construction season. 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 14.25.015 of the Kenai Municipal Code: That Kenai Municipal Code, Section 14.25.015 – Landscaping/site plan for land clearing, is hereby amended as follows: 14.25.015 Landscaping/[S]Site [P]Plan for [L]Land [C]Clearing. For property covered under this chapter, submittal of a preliminary landscaping/site plan and approval by the administrative official is required prior to any land clearing and/or tree cutting where such land clearing and/or tree cutting [REMOVAL] will result in removal of [LESS] more Page 5 of 200 Ordinance No. *-2017 Page 2 of 2 New Text Underlined; [DELETED TEXT BRACKETED] than [TWENTY-FIVE PERCENT (25%)] twenty percent of the lot’s [AREA HAVING] existing trees, shrubs, or natural vegetation cover as determined by the administrative official. Section 3. Amendment of Section 14.25.020 of the Kenai Municipal Code: That Kenai Municipal Code, Section 14.25.020 – Application, is hereby amended as follows: 14.25.020 Application. This chapter shall apply to all retention basins and commercial, industrial and multifamily development within the City of Kenai and shall apply to both the landscaping and site plans. “Commercial, industrial and multifamily development” and “all development” shall be defined as any land clearing and/or tree cutting resulting in removal of more than twenty percent of the lot’s existing trees, shrubs, or natural vegetation cover as determined by the administrative official or improvements requiring a building permit for new construction or any improvements of twenty thousand dollars ($20,000.00) or more, which adds square footage, and is: (1) located on properties within the Central Commercial (CC), General Commercial (CG), Limited Commercial (CL), Heavy Industrial (IH), Townsite Historic (TSH), Light Industrial (IL) and Education (ED) zoning districts; or (2) a multifamily development in any zone; or (3) a change of use as required in KMC 14.20.250(a). It is unlawful for any person to construct, erect or maintain any structure, building, fence or improvement, including landscaping, parking and other facilities on property requiring a landscape/site plan unless such improvements are constructed or reconstructed in a manner consistent with the approved plan. Properties zoned residential (except multifamily dwellings) are exempt from this chapter with the following exception: (1) structures identified as a commercial occupancy in Title 4 of the Kenai Municipal Code located in residential or mixed use zones requiring a building permit for new construction or any improvements of twenty thousand dollars ($20,000.00) or more, which adds square footage or a change of use as required in KMC 14.20.250(a). Section 4. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application. Section 5. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect 30 days after adoption. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 7th day of June, 2017. BRIAN GABRIEL SR., MAYOR ATTEST: Sandra Modigh, City Clerk Introduced: May 17, 2017 Enacted: June 7, 2017 Effective: July 7, 2017 Page 6 of 200 Page 7 of 200 Sponsored by: Administration CITY OF KENAI ORDINANCE NO. 2961-2017 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA ADOPTING THE ANNUAL BUDGET FOR THE FISCAL YEAR COMMENCING JULY 1, 2017 AND ENDING JUNE 30, 2018 AND COMMITTING $1,000 ,000 OF GENERAL FUND, FUND BALANCE FOR CAPITAL IMPROVEMENTS. WHEREAS, it is a requirement of the Code of the City of Kenai , Alaska , that the City Council, not later than the tenth day of June, adopt a budget for the following fiscal year and make appropriation of the monies needed; and, WHEREAS , committed fund balance represents resources whose use is constrained by limitations that Council imposes upon itself at its highest level of decision making , an Ordinance , and that remain binding unless removed in the same manner; and, WHEREAS , in recognition of deferred and ongoing maintenance needs of City facilities, Council commits $1,000,000 for future renovation and improvements to City facilities. 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 certain document entitled "City of Kenai Fiscal Year 2018 Annual Budget" which is available for examination by the public in the Office of the City Clerk, the City's website and is in corporated herein by reference is hereby adopted as the budget for the City of Kenai for the fiscal year commencing July 1 , 2017 and ending June 30, 2018. Section 3. The following sums of money are hereby appropriated for the operations of the City of Kenai for the fiscal year commencing on the first day of July, 2017, and ending the 30th day of June , 20 18, to be expended consistent with and subject to the restrictions , procedures, and purposes set forth in the Code of the City of Kenai and to be expended substantially by line item in the manner shown in the budget adopted by Section 1 hereof: General Fund Enterprise/Internal Service Funds: Congregate Housing Fund Employee Health Care Fund Total Enterprise/Internal Service Funds Special Revenue Funds: Personal Use Fishery Fund Water & Sewer Fund $15,536,722 452 , 133 2, 143.283 2,595,416 512,127 2,453,479 New Text Und erlin ed ; [DELETED T EXT BRACKETED] Page 8 of 200 Ordinance No. 2961-2017 Page 2 of 2 Airport Fund Senior Citizen Fund Airport Land Sale Permanent Fund General Land Sale Permanent Fund Total Special Revenue Funds Debt Service Fund -Library Expansion Bonds Total All Funds 2 ,885 ,3 99 959 ,554 1,191,711 150.993 8, 153,263 176,998 $26.462.399 Section 4. Council herby commits $1,000,000 of Unassigned General Fund, Fund Balance for future renovation and improvements to City facilities. 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 th is ordinance even without such part, provision, or application. Section 6. Effective Date: That pursuant to KMC 1. 15 .070(f), this ordinance shall take effect July 1, 2017. ENACTED BY THE COUNCIL OF THE CITY OF KENAI , ALASKA, this 7th day of June , 2017 . ATTEST: Sandra Modigh , City Clerk Approved by Finance : ~ BRIAN GABRIEL SR., MAYOR Introduced : May 17, 2017 Enacted : June 7, 2017 Effective : July 1, 2017 New Text Underlined; [DELETED TEXT BRACKETED) Page 9 of 200 'Vtfl~ «1/t!fl a Pa&'~ Ot'tf «11'tli a Fat~ " 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 '?·O · Terry Eubank, Finance Director 1 / May 10 , 2017 Ordinance 2961-2017 to adopt the FY18 Budget The purpose of this memo is to summarize the changes that have been proposed to the FY18 Budget since disbursement of the draft document on April 2nd, and to communicate the result of these changes on each of the City's operating funds. The following are the Administration's recommended changes that have been incorporated into the draft budget and appropriating ordinance. New summary pages for the all funds, after incorporating the changes, are attached for your review. Revenues: Administration Recommended Amendments: General Fund -PERS On-behalf funding resulting from Airport/Street Operator staffing changes Personal Use Fishery Fund -PERS On-behalf funding resulting from Airport/Street Operator staffing changes Airport Fund -PERS On-behalf funding resulting from Airport/Street Operator staffing changes Senior Citizen Fund -Transfer from General Fund resulting from increase in insurance renewal premiums ($632) ($18) $542 $1,668 Page 10 of 200 Page 2 of 5 Ordinance 2961-2017 Expenditure Changes: Administration Recommended Amendments: 1 . Decrease Street Department staffing by one Equipment Operator, eliminate the annual five month transfer to the Airport of two Equipment Operator's , and increase the Airport staffing by one Fulltime equipment Operator. General Fund: Non-Departmental -PERS Streets -Salaries Streets -Overtime Streets -Leave Streets -Medicare Streets -PERS Streets -Unemployment Insurance Streets -Workers ' Compensation Streets -Health & Life Insurance Streets -Supplemental Retirement Personal Use Fishery Fund: Streets -Salaries Streets -Overtime Streets -Leave Streets -Medicare Streets -PERS Streets -Unemployment Insurance Streets -Workers ' Compensation Dock -Salaries Dock -Overtime Dock -Leave Dock -Medicare Dock-PERS Dock -Unemployment Insurance Dock -Workers' Compensation Airport Fund: Airfield -Salaries Airfield -Overtime Airfield -Leave Airfield -Medicare Airfield -PERS Airfield -Unemployment Insurance Airfield -Workers ' Compensation Airfield -Health & Life Insurance Airfield -Supplemental Retirement $ (632) (16,468) (4,496) (1,509) (326) (4,612) (112) (885) (3,575) {192) $(32.807) (171) (54) (48) (4) (60) ( 1 ) ( 12 ) (249) (108) (71) (7) (94) (3) -11fil $~) 17,393 625 1,629 285 4 ,506 98 602 3,574 300 $29 .012 Page 11 of 200 Page 3 of 5 Ordinance 2961-2017 Net of projected lapse and the change in PERS On-behalf funding in each fund , the increase (decrease) in each fund's projected surplus (deficit) for this staffing change is as follows: General Fund Personal Use Fishery Fund Airport Fund $30,535 843 (26,729) $ 4 .649 2 . City General Liability, Property, Auto, and Equipment coverage renewal amounts in excess of budgeted amounts. The City signed a three year commitment with its insurance carrier, Alaska Public Entity Insurance (APEi), for policy years commencing July 1 , 2016 and ending June 30, 2019 in e x change for an annual premium discount of 5%. The agreement would terminate should the renewal premium increase by more than 10% over the preceding year's premium . This year's renewal is an increase of 7% of the FY17 premium and is a result of negative pool liability and property claims experience . APEi is an insurance pool with many members besides the City and while the benefits of pooling is the sharing of risk, sometimes the claims of other pool members can negatively impact other members. The administration will monitor the City's participation in the pool and make sure continued participation is in the City's best interest. General Fund: Non-Departmental -Insurance Non-Departmental -Transfer to Senior Citizen Fund Personal Use Fishery Fund: Public Safety-Insurance Streets -Insurance Parks, Recreation & Beautification -Insurance Dock -Insurance Airport Fund: Terminal -Insurance Airfield -Insurance Administration -Insurance Congregate Housing Fund -Insurance Water & Sewer Fund: Water -Insurance Sewer -Insurance Waste Water Treatment Plant -Insurance $21,369 1,668 $23.037 $230 20 142 48 $440 $1 ,372 3,919 248 $5.539 $2 ,211 $1,981 320 2,777 $5,078 Page 12 of 200 Page 4 of 5 Ordinance 2961-2017 Senior Citizen Fund: Senior Access -Insurance Congregate Meals -Insurance Home Meals -Insurance Transportation -Insurance Choice Waiver -Insurance $ 263 275 97 691 394 $1 .720 Net of projected lapse in each fund , the (decrease) in each fund's projected surplus (deficit) for the increase in insurance costs is as follows : General Fund Personal Use Fishery Fund Airport Fund Congregate Housing Fund Water & Sewer Fund Senior Citizen Fund (Includes $1 ,668 in additional funding from the City 's General Fund) $(21 ,969) (424) (5 ,207) (2,211) (4,773) $(34.584) The total change in projected surplus (deficit) from these changes is as follows : General Fund Budget Draft Projected Deficit Street/Airport Equipment Operator staffing change Insurance renewal increase Projected FY2018 Deficit Personal Use Fishery Fund Budget Draft Projected Surplus Street/Airport Equipment Operator staffing change Insurance renewal increase Projected FY2018 Deficit Airport Fund Budget Draft Projected Surplus Street/Airport Equipment Operator staffing change Insurance renewal increase Projected FY2018 Deficit Congregate Housing Fund Budget Draft Projected Loss Insurance renewal increase Proj ected FY2018 Deficit Water & Sewer Fund Budget Draft P rojected Surplus Insurance renewal increase Projected FY20 18 Deficit $(125 ,603) 30 ,535 (21,969) $(1 17.037) $83,997 843 (424) $84.416 $445,580 (26,729) (5,207) $41 3,644 $(56 ,385) (2,211) $(58 ,596) $620,485 (4,773) $6 15,7 12 Page 13 of 200 Page 5 of 5 Ordinance 2961-2017 Senior Citizen Fund Budget Draft Projected Surplus Insurance renewal increase Projected FY2018 Deficit $ - $ - These are the only two proposed amendments to the April 2, 2017 Draft City Budget which have been included in proposed budget adoption ordinance. Your support for passage of the budget adoption ordinance is respectfully requested. attachments Page 14 of 200 Ci ty of Kenai Fiscal Year 2018 Op erat ing Budget Ge nera l Fund Budg et Project ion Ori ginal Actual A ctual Budget Projectio n Pro posed Pr oject i on Projection FY2015 FY2016 FY2017 FY2017 F Y2018 FY2019 FY2020 TAXABLE VALUES (OOO'S ) $ 828,385 $ 851,638 $ 866,235 $ 868 ,724 $ 876,530 $ 899, 157 $ 922,646 MILL RATE 4 .35 4 .35 4 .35 4 .35 4 .35 4.35 4 .35 REVENUES Property & Sales Taxes Property Tax 3,656,927 3,782,539 3,810,759 3,902,208 3 ,874,650 3 ,983 , 106 4 ,083,240 Sales Tax 7,257,451 7 ,247 ,938 7 ,329,099 6 ,936,040 6,934,917 7 ,038 ,9 41 7 ,214 ,720 Total Property & Sales Taxes 10,914,378 11,030,477 11 ,139,858 10 ,838,248 10,809,567 11 ,022,047 11 ,297,960 State/Federal Revenue : P E RS Funding 2 ,977 ,564 379,467 281 ,404 282,952 204,235 210,362 216,673 Community Ass istance 441 ,046 415,798 277 ,930 278,232 170,598 129,651 63,946 Fish Tax 292 ,718 198,649 200,000 165,000 165,000 169,950 175,049 Other 81 058 155,849 58,000 66 150 58,000 60,900 63 945 Total State/Federal Revenue 3 .792,386 1, 149, 763 817 334 792 .334 597 833 570 863 519613 Other Revenue Licenses and Permits 71,973 62,629 76,500 63,000 63,500 65 ,405 67,367 Ambulance Fees 412 ,509 408,558 400,000 425,000 425 ,000 437,750 450,883 Interest 56,992 76,212 75,000 90,000 100,000 151 ,477 291 ,986 Other 636 453 587,224 644 805 626 374 605,895 513 347 528 747 Total Other Revenue 1 177 927 1, 134,623 1, 196,305 1 204 37 4 1, 194,395 1, 167,979 1,338,983 Total Rev e nues 15 ,884 ,691 13,314,863 13, 153,497 12,834 ,956 12,601,795 12,760,88 9 13,156,556 Transfer From Other Funds Charges to other funds 1,505,886 1,458,900 1,494 ,200 1,494,200 1,492,400 1,537 , 172 1,583,287 Capital Projects I Special Revenue 11 124,303 Enterprise 36 ,900 38,300 34,000 34,000 439,000 40 ,170 41 ,375 Trust Fund 147 093 148 009 149 802 150 993 150,993 150,9 93 Total Transfers 1,689.890 1,497,200 1,676,209 1,802,305 2 ,082,393 1,728,335 1,775,655 Tota l Rev e nues and Transf er s 17 ,574 ,581 14,812,063 14,829,706 14,637,261 14,684,188 14,489,224 14,932,211 EX PENDITURES/ APPROPRIATIONS General Government 5 ,357 ,342 2,865,713 3,013,609 3 ,113,122 2 ,909,709 2,969 ,945 3,029,344 Public Safety 6 ,876,330 6 ,987 ,609 7,284,438 7 ,288,580 7 ,299,722 7,445 ,716 7,6 16 ,967 Public Works 2,269,516 2,251,812 2,381,685 2,395,685 2,375,314 2,422,820 2,471,276 Parks, Recreat ion & Cultural 1911792 1,993,809 2 156 949 2,172,679 2 .125, 189 2, 167 ,693 2,211,047 Tota l Ope rating Expe nditures 16,414,980 14 ,098,943 14,836,681 14,970,066 14,709,934 15 ,006 ,174 15,328 ,634 T ransfers or Non-Operating 670 394 686,253 583 ,299 618 299 826 788 598 ,952 609 421 Total Expend itures/Appropriations 17 ,08 5 ,37 4 14 ,785, 196 15,419,980 15,588,365 15,536,722 15,605 ,126 15 ,938 ,055 Total Surplus (Deficit) 489,207 26 ,867 (590,274) (951 ,104) (852,534) ( 1, 115 , 902) (1,005,844) Projected Lapse -5% 741 834 748 503 735 497 750,309 766.432 Adj usted Surplus (Deficit) 489,207 26,867 151 ,560 (202,601) (117,037) (365 ,593) (239,412) Beginning Fund Balance 9 .902 ,026 10,391,233 9,830,242 10,418.100 10,215,499 10,098,462 9 .732.869 Endi ng Fund Balance 10,391,233 10,418,100 9 ,981 ,802 10,215,499 10,098,462 9,732,869 9 ,493 ,457 Restricted (546,706) (588,937) (6 18,706) (618,706) (624 ,937) (660 ,937) (696,937) C ommitted (409,746) (409,746) (509,746) (6 ,651,471) (6 ,850,913) (6,886,067) (6,632,045) Assigned (1 .497,756) (1,409,610) (1,776,805) (2,3 70, 141) (2,378,978) (2, 185,865) (2 ,164 ,475) Unassigned Fund Balance $ 7,937,025 $ 8,009,807 $ 7 ,076,545 $ 575,181 $ 243,634 $ $ Page 15 of 200 City of Kenai Fiscal Year 2018 Operating Budget Budget Projection Fund: 006 -Personal Use Fishery Fund Original Ma nager Actual Actual Budget Projection Proposed FY2015 FY2016 FY2017 FY2017 FY2018 Revenues PERS Grant $ 17,437 $ 2,167 $ 1 ,986 $ 3,020 $ 2 ,312 Usage Fees Beach Parking 219 ,705 182,7 39 180,350 182 ,8 54 183,000 Beach Camping 199,203 230,729 227,650 238,752 239,000 Dock Laun ch & Park 100,970 133 ,181 13 1 ,700 128,388 130,000 Dock Parking Only 15,868 15,238 15,000 14,807 15,000 Participant Drop-off Fee 28 ,950 10,717 11 ,000 Total Usage Fees 535,746 561 ,887 583,650 575,518 578,000 Miscell an eous Revenues In vestment earnings 680 1,580 750 750 750 Other (3 ,235) (6 ,888) (3,500) (4 ,500) (4 ,500) Total Miscellaneous Revenues (2 ,555) (5,308) (2 ,750) (3 ,750) (3 ,750) Total Revenu e 550 ,628 558,746 582 ,886 574 ,788 576 ,562 E xpe nditures Public Safety 122,473 113,943 111 ,599 128,999 109,195 Streets 54,632 34 ,116 4 9 ,258 4 8,013 51 ,506 Boating Facility 90,410 71,417 72,417 79,718 72,347 Parks, Recreation & Beautification 244,514 266 ,996 346,935 332,531 279,079 Tota l Expenditures 5 12 ,029 486 ,472 580,209 589,261 5 12 ,127 Contribution To/(From) Fund Balance: 38,599 72 ,274 2,677 (14,473) 6 4 ,435 Projected Lapse 23 , 150 23 ,603 19,981 Adj usted (Deficit)/Surplus 38 ,599 72,274 25,827 9 ,130 84,416 Beginning Fund Balan c e 29,063 67,662 124 ,188 139,936 149,066 Ending Fund Balance $ 67 ,662 $ 139,936 $ 150 ,0 15 $ 149,066 $ 233,482 Page 16 of 200 City of Kenai Fi scal Year 2018 Operating Budget Budget Projection Fund: 008 -A i rport Fund Original Manager Actual Actual Budget Projection Proposed FY2015 FY2 016 FY2017 FY2017 FY2018 Revenues State & Federal Grants $ 225,082 $ 30,048 $ 30,961 $ 28,461 $ 23 ,552 Usage Fees Fuel Sales 9,300 1 ,3 72 10,000 10,000 10,000 Fuel Flowa ge 37,546 27 ,772 35,000 35,000 35,000 Float Plane 1 ,33 1 812 1 ,500 1 ,500 1 ,500 Tie Down 7,602 5,576 10,000 7,500 7 ,500 Landing 369,824 418,644 375,000 475 ,000 375,000 Plane Parking 5,128 5 ,526 5 ,000 5,000 5,000 Total Usage Fees 430,731 459,702 436 ,500 534,000 434 ,000 Rents and Leases Land 674,609 687,256 698,755 698,755 650,117 Total Rents and Leases 674,609 687,256 698,755 698,755 650,117 Miscellaneous Penalty and Interest 18,378 5 ,886 15,000 15,000 5,000 Interest on Investments 22,445 33 ,213 25 ,000 25 ,000 25 ,000 Other 40,042 9,627 25 ,000 26,200 25,000 Tota l Miscellaneous 80 ,865 48,726 65,000 66 ,200 55 ,000 Terminal Revenue Parking Fees 272,698 261,036 300,000 300 ,000 300,000 Rents and Leases 300,807 283 ,5 25 310,127 310,127 317,723 Penalty and Interest 3,058 1 ,957 4 ,500 4,500 4 ,500 Car Rental Commissions 193,011 226 , 130 195,000 195,000 195,000 Advertising Commissions 4 ,852 10,315 6,000 9,000 9,000 Miscellaneous 3,468 608 1,500 1 ,500 1 ,500 T otal Terminal Rev enue 777,894 783,571 817, 127 820, 127 827,723 Transfers In Airport Land Trust Fund 1,135,3 13 1 , 142,714 1 , 184,356 1 ,175,414 1,191 ,711 Total Transfers In 1 ,135,313 1,142,714 1, 184,3 56 1,175,414 1,191 ,711 Total Revenues 3 ,324,494 3,152,017 3,232,699 3,322,957 3,182,103 Expenditures Airport Terminal 623,320 548,308 630,953 628, 150 645,425 Airport Airfield 1,705,814 1,522 ,298 1,710,321 1,708,674 1,697,523 A irport Administration 348 ,841 287 ,087 315,259 431 ,210 336,914 Airport Other Bui ldings and Areas 388,777 313 ,741 169,654 241,380 167,211 Airport T raini ng Faci lity 34,011 32,620 36 ,768 42 ,017 38,326 Total Expenditures 3 ,100,763 2,704,054 2 ,862 ,9 55 3,051,431 2,885,399 Contribution To/(Fro m) Fund Balance : 223,731 447,963 369 ,744 271,526 296,704 Projected Lapse (6%) 115,347 119,455 116,940 Page 17 of 200 City of Kenai Fiscal Year 2018 Operating Budget Budget Projection Fund: 008 -Airport Fund Original Manager Actual Actual Budget Projection Proposed FY2015 FY2016 FY2017 FY2017 FY 201 8 Adjusted (Deficit)/Su rp lus 4 85,091 390,98 1 41 3 ,644 Beginning Fund Ba lance 4 ,010,808 4 ,234 ,539 4,558 ,150 4 ,682 ,502 5,073,483 Ending Fund Bala nce $ 4 ,234 ,539 $ 4,682 ,502 $ 5,043,24 1 $ 5 ,073,483 $ 5,4 8 7,127 Page 18 of 200 Re ve nu e s PERS Grant Rents and Leases Interest on I nvestments Transfer from General Fund M iscellaneous Total Rev enues E x pe ns es Net Income (loss) Beg inning Reta ined Earnings Capital Asset Acquistions Allocated to Capital Projects Cr edit for Depreciation Available Retained Earnings City of Kenai Fiscal Year 2018 Operating Budget Budget Projection Fund : 009 -Cong regate Hous ing Fund Or igin al Actual Actu al Bud get FY2015 F Y 2016 FY2017 $ 16,482 $ 2 ,077 $ 1,627 365,430 382,253 382,414 2,533 3,880 3,000 20 77 384,465 388,287 387 ,041 454,429 425,986 460,619 (69,964) (37,699) (73,578) 469,418 418,765 417,601 (116,826 ) (46,666 ) 136,137 139 ,857 136,137 $ 418 ,765 $ 474,257 $ 480 , 160 Ma nager Projection Proposed F Y 2017 FY2018 $ 1,627 $ 1, 192 393,414 388 ,345 3,000 4,000 398,041 393 ,537 511 ,993 452, 133 (113,952) (58,596) 474,257 496,442 136, 137 139 ,85 7 $ 496 ,442 $ 577 , 703 Page 19 of 200 City of Kenai Fiscal Year 2018 Operating Budget Budget Projection Fund : 010 -Wate r and Sewer Fund Original Manager Actual Actual Budget Projection Proposed FY2015 FY2016 FY2017 FY2017 FY2018 Reve nues PERS Grant $ 255,777 $ 30,836 $ 24,255 $ 24 ,255 $ 17,228 Usa ge Fees Se rvice Hook-up 9,82 7 4 ,001 8 ,630 3,927 3,929 Residential Water 654,383 716,095 764 ,901 797 ,286 832,278 Comm ercial Water 256 ,492 283,168 335,420 335,420 350,14 1 Residential Sewer 1,109,172 1 ,136,029 1 ,154 ,566 1 ,178 ,610 1,182 ,298 Commercial Sewer 411,520 430,949 493 ,264 493 ,264 494 ,807 T otal Usage Fees 2 ,44 1,394 2 ,570 ,242 2 ,756 ,781 2,808,507 2 ,863,453 Miscellaneo us Revenues Penalty and Interest 41 ,987 39 ,679 4 0,000 4 3,235 4 3,250 Interest Earnings 8 ,391 10 ,896 12,000 12,000 16,000 Ot her 2 ,207 2 ,812 3,000 3 ,000 3,000 Total Miscellaneous Revenues 52 ,585 53,387 55,000 58 ,235 62,250 Total Revenues 2 ,749,756 2 ,654 ,465 2,836,036 2 ,890,997 2 ,942,931 Expe nditures Water Department 1, 157 ,685 829,080 880 ,772 900,427 864 ,277 Sewer De partm ent 478 ,031 384,963 450 ,651 805,388 513 ,830 Wastewater Trea tm ent Plant Department 1,074,016 923,883 1 ,121,757 1 ,121,757 1,075 ,372 Total Expend itures 2 ,709,732 2 ,137,926 2,453 ,180 2 ,827 ,5 72 2,4 53,479 Contribution To/(From) Fund Balance : 40,024 516 ,539 382 ,856 63,425 4 89,452 Projected Lapse (6%) 12 9,479 130,715 126,260 Adjusted (Deficit)/Surpl us 512,335 194, 140 615,712 Begin nin g Fund Balance 1,148,989 1,189,013 1,614,533 1,705 ,552 1,899,692 Ending Fund Balance $ 1,189 ,013 $ 1 ,705 ,552 $ 2 ,126 ,868 $ 1,899,692 $ 2,515,404 Page 20 of 200 City of Ken a i Fisc al Year 2018 Operating Budget Budget Projection Fund: 019 ·Senior Citizen Fund Orig i nal Manag er Actual Actual Budget Projection Propo sed FY2015 FY2 016 FY2017 FY20 17 FY2018 Rev enues State Gran ts $ 295,773 $ 196,978 $ 192 ,9 39 $ 200,939 $ 198 ,299 USDA Grant 13,949 15 ,780 13,000 15 ,000 15,000 Choice Waiver 322 ,8 26 252,604 275 ,000 225 ,0 00 225,000 KP B Grant 126,207 126,207 126,207 126 ,207 126,207 Uni ted Way 8 ,762 9,582 9 ,582 5,977 5,977 Rents and Leases 5 ,660 12 ,971 13 ,000 13,000 13 ,000 Donations 33 ,323 23,497 31 ,000 30 ,000 80 ,000 Meal Donations 54,428 61 ,066 66 ,500 75,000 75 ,000 Transfer from General Fund 88 ,339 15 1,385 205,160 196,730 Ot her 3 16 {621) 300 300 300 Tota l Revenue 86 1,2 44 786,4 03 878 ,9 13 896,583 935,513 Expenditures Senior Citizen Access 207 ,975 175,262 163,881 164 ,631 166,319 Congregate Meals 192 ,265 179,434 223 ,133 228,533 236 ,396 Home Meals 163,31 4 14 8,048 175,274 179,374 195,103 Senior Transportation 64 ,289 108,562 67,689 68,4 39 80 ,523 Choice Wa iver 336 ,444 33 1,888 27 1,74 9 279,249 281,213 Tota l Expenditures 964 ,2 87 943 , 194 90 1,726 920 ,226 959,554 Contribution To/(From ) Fund Balance : (103 ,043) (156, 791) (2 2 ,813) (23,643) (24,041) Projected Lapse (3%) 22 ,813 23 ,368 24,04 1 Adjusted (Deficit)/S urplus (103 ,0 4 3) (156 ,79 1) (2 75) Beginning Fund Balance 260 , 109 157,066 275 Ending Fund Balance $ 157 ,066 $ 275 $ . $ -$ Page 21 of 200 'Vtfl'ap «1/t/z, a Pa.J't, e'tt «1/t/z, a Fat~ JI 210 Fidalgo Ave, Kenai, Alaska 99611-7794 Telephone : (907) 283-7535 I Fax: (907) 283-3014 www.kenai.city MEMORANDUM TO: THROUGH: FROM: DATE: Mayor Brian Gabriel and Kenai City Council Paul Ostrander, City Manager Terry Eubank, Finance Director 1/. May 9, 2017 SUBJECT: FY2018 Budget Request for Information -Fulltime Deputy Clerk The purpose of this memo is to respond to Council's request for the fiscal impact of increasing the City's Deputy Clerk position to fulltime status from its current 24-hour per week part-time schedule. The fiscal impact by account would be as follows : Expenditure Increases: City Clerk -Salaries City Clerk -Leave City Clerk -Medicare City Clerk -PERS City Clerk -Unemployment Insurance City Clerk -Workers ' Compensation City Clerk -Health Insurance Non-Departmental -PERS Total Expenditure Increases Revenue Increases - PERS On-behalf Funding FY2018 Budgetary Impact $20, 100 523 299 4,422 103 78 8,937 605 $35,067 $ 605 $34.462 If the Deputy Clerk was increased to a fulltime position, projections show the FY2020 use of fund balance to be $36,699 after elimination of proposed $250,000 one-time capital expenditures. The policy limits the use of fund balance for operational expenditures to a period of not more than two years with the third budget year showing sufficient revenues to support operational expenditures. This scenario will require identification of a supplemental revenues source or elimination of other operational expenditures to comply with the City's fund balance policy. Page 22 of 200 'Vttt~ tt1/th a. Pa.irt, e~ tt11'th a. Fat~" 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 Council Members Molloy and Pettey May 31, 2017 Ordinance No. 2961-2017, Adopting the Annual Budget for the Fiscal Year Commencing July 1, 2017 and Ending June 30, 20 18 and Committing $1,000,000 of General Fund, Fund Balance for Capital Improvements. After public hearing on Ordinance No. 2961-2017, we intend to put on the table a series of budget document amendments and an amendment to the budget adoption ordinance , for Council 's consideration and action, that will provide the needed appropriations to increase the Administrative Assistant II position in the Clerk's Office from 24 to 40 hours per week, if approved by Council. The City Clerk's office is a major point of contact and interaction of the public with their city government. The volume of business handled and services performed in the City Clerk's office has increased significantly in the past several budget years, but the City Clerk has only 24 hours support by the Deputy Clerk position. A full time Deputy Clerk position will better support the Clerk 's Office in processing its work flow more timely , which is in the best interest of the City and the public served by the Clerk's Office . Finance Director Eubank's FY2018 Budget Amendment Memorandum sets out the financial impact of the amendments , for Council's consideration . The expenditure increase associated with this change to the FY 2018 budget is $35,067 . In the Finance Director's opinion , the proposed FY2018 budget, after inclusion of this amendment, will be compliant with the City's Fund Balance Policy and ordinances . The amount for FY2018 is based on the position remaining an Administrative Assistant II. The Finance Director advises that once a new job description is completed the position will be reviewed and classified using the City's classification matrix to assure accurate placement on the City's salary schedule. Council's support of the amendments is respectfully requested, to increase the Administrative Assistant 11 position in the Clerk's Office from 24 to 40 hours per week. Page 23 of 200 'lltff~ «1/th a Pa6'~ Ct'tf «1/th a Fat~" 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: Council Members Molloy and Pettey Paul Ostrander, City Manager 'f. 0 · Terry Eubank, Finance Director 1f May 30, 2017 FY2018 Budget amendment for increasing the Clerk Department Administrative Assistant II position to fulltime . The purpose of this memo is to provide amendment language for increasing the Administrative Assistant II position in the Clerk's Office from a 24 hour per week position to a fulltime 40 hour per week position. Three sections of the proposed budget document will require amendment as will Ordinance 2961-2017, the budget adoption ordinance . Financial projections , after incorporation of this change, show no use of fund balance for recurring expenditures in FY2018 , an $119,721 use of fund balance for recurring e xpenditures in FY2019, and no use of fund balance for recurring expenditures in FY2020 . The City's Fund Balance Policy limits the use of fund balance for operational expenditures to a period of not more than two years with the third budget year showing sufficient revenues to support operational expenditures. The proposed budget, after inclusion of this change , will be compliant with the City's Fund Balance Policy. Budget Document Amendments: Revenues: 1. PERS On-behalf funding will increase by $605 with this proposed change. Amendment Language: Amend PERS Funding on page 16 of the Annual Budget for the City of Kenai , Alaska July 1, 2017 -June 30, 2018 to $204,840 in FY2018, to $210,985 in FY2019, and to $217 ,315 in FY2020. Expenditures: The expenditure increase associated with the change is $35,067 . The City Clerk Department must be amended by $34,462 and Non-departmental will increase $605. Page 24 of 200 Page 2 of 2 Requested Budget Amendment Language Amendment Language: 1. Amend amounts in the Council Adopted Column of the City Clerk Department, page 26 of the Annual Budget for the City of Kenai, Alaska July1, 2017 -June 30, 2018 for the following accounts: 0100 Salaries $145, 143 0300 Leave 4 ,833 0400 Medicare 2,174 0500 PERS 31,931 0600 Unemployment Insurance 750 0700 Workers Compensation 566 0800 Health & Life Insurance 35 ,748 2. Amend amounts in the Council Adopted Column of the Non-Departmental Department, page 4 7 of the Annual Budget for the City of Kenai , Alaska July1, 2017 - June 30, 2018 for the following accounts : 0500 PERS $204,840 Ordinance 2961-2017 Amendment Amendment Language: Amend the "General Fund " amount of Section 3 to $15 ,571 ,789 and the "Total All Funds" of Section 3 to $26,497,466. These amendments will provide the needed appropriations to increase the Administrative Assistant 11 position in the Clerk's Office from 24 to 40 hours per week . These amounts are based on the position remaining an Administrative Assistant 11. Once a new job description is completed the position will be reviewed and classified using the City's classification matrix to assure accurate placement on the City's salary schedule. Page 25 of 200 'Vtfl~ «1/th a Po.6'~ Ct'tf «1/th a Fat~ " 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 ? o . Terry Eubank , Finance Director }/ May 31 , 2017 FY2018 Budgeted Revenue Update The purpose of this memo is to provide Council the latest update to FY2018 projected revenues and the implications to the FY2018 Budget. On May 19th I received first calendar quarter 2017 sales tax data from the Kenai Peninsula Borough. Projections for this quarter were a one-percent decline in taxable sales compared to the same quarter of 2016 . Taxable sales for this period actually grew by 0.88%. Year over year ta xable sales have been negative for the previous 5 calendar quarters, a trend that was projected to continue through the calendar quarter ending June 30 , 2017. Incorporating this new data into the FY2018 Budget slows the use of General Fund , Fund Balance over the next few years . Compliance with the City's Fund Balance Policy, after update proj ections , was confirmed . Attached is an updated General Fund Project ion . While not an absolute indication the slowdown in the local economy has ended, this is a positive indication . Sales ta x projections include the following assumptions : 1. Taxable sales for the second calendar quarter 2017 will decrease 1 % compared to the same calendar quarter of 2016 . 2. Ta xable sales for each calendar quarter of FY2018 will increase by 1 % year over year. 3. Ta xable sales for each calendar quarter of FY2019 wi ll increase by 1.5 % year over year. 4. Taxable sales for each calendar quarter of FY2020 will increase by 2 .5 % year over year. attachm ent Page 26 of 200 City of Kenai Fiscal Year 2018 Operating Budget General Fund Budget Projection Original Actual Actual Budget Projection Proposed Projection Projection F Y20 15 FY2016 FY2017 FY2017 FY2018 FY2019 FY2020 TAXAB LE VALUES (OOO'S) $ 828,385 $ 851 ,638 $ 866,235 $ 868,724 $ 876,530 $ 899, 157 $ 922 ,646 MI LL RATE 4 .35 4.35 4.35 4 .35 4 .35 4.35 4 .35 REVENUES Property & Sales T axes Property Tax 3,656,927 3,782,539 3,810,759 3 ,902,208 3,874,650 3,983, 106 4 ,083 ,240 Sales Tax 7 ,257,451 7 ,247,938 7,329,099 6 ,936,040 6,962,613 7,067,052 7,243,535 Total Property & Sales T axes 10,914 ,378 11,030,477 11,139,858 10,838,248 10,837,263 11,050, 158 11,326,775 State/Federal Revenue : PERS Funding 2 ,977,564 379,467 281,404 282,952 204,235 2 10,362 216,673 Community Assistance 441 ,046 415,798 277,930 278,232 170,598 129,651 63,946 Fish Tax 292,7 18 198,649 200,000 165,000 165,000 169,950 175,049 Other 81 058 155 849 58 000 66, 150 58,000 60,900 63 945 Total State/Federal Revenue 3,792,386 1 149 763 817 334 792 334 597 .833 570,863 519 613 Other Revenue Licenses and Permits 71,973 62,629 76,500 63,000 63,500 65,405 67 ,367 Ambulance Fees 412 ,509 4 08 ,558 400,000 425,000 425,000 437,750 450,883 I nterest 56,992 76,212 75,000 90,000 100,000 151 ,892 293,709 Other 636,453 587,224 644 805 626,374 605,895 513 347 528 747 Total Other Revenue 1 177 927 1, 134 ,623 1, 196,305 1 204 374 1,194,395 1, 168,394 1,340,706 Total Revenues 15,884 ,691 13,314,863 13, 153,497 12,834,956 12,629,491 12,789,415 13 187 094 Transfer From Other Funds Charges to other funds 1,505,886 1,458,900 1,494,200 1,494,200 1,492,400 1,537 , 172 1,583,287 Capital Projects I Specia l Revenue 11 124,303 Enterprise 36 ,900 38,300 34 ,000 34 ,000 439 ,000 40, 170 41 ,375 Trust Fund 147 093 148 009 149,802 150,993 152 193 153 403 Tota l Transfers 1,689,890 1,497,200 1,676,209 1,802,305 2,082,393 1,729,535 1 778.065 Total Revenues and Transfers 17 574 581 14,812 ,063 14,829,706 14,637,261 14 711 884 14 ,518,950 14,965,159 EXPENDITURES/APPROPRIATIONS General Government 5,357 ,342 2 ,865,713 3 ,013 ,609 3,1 13,122 2,909,709 2 ,969,945 3,029,344 Public Safety 6,876,330 6,987,609 7,284,438 7,288,580 7,299,722 7,445,716 7,594,630 Public Works 2 ,269,516 2,25 1,8 12 2,381,685 2,395,685 2,375,314 2,422,820 2,471 ,276 Parks , Recreation & Cultural 1911792 1,993,809 2,156,949 2, 172 ,679 2, 125, 189 2, 167,693 2 211 047 Total Operating Ex penditures 16,414,980 14 ,098 ,943 14 ,836,681 14,970,066 14,709,934 15,006,174 15,306,297 Transfers or Non-Operating 670 394 686,253 583 299 618,299 826,788 598,952 609.421 Tota l Expendi tu res /Appropriations 17 ,085 ,374 14 ,785,196 15 ,419,980 15 ,588,365 15,536,722 15,605, 126 15,915,718 Tota l Su rplus (Deficit) 489,207 26,867 (590,27 4 ) (951, 104) (824 ,838) (1,086 , 176) (950 ,559 ) Projected Lapse -5% 741 834 748 503 735 497 750,309 765 315 Adjusted Surplus (Deficit) 489,207 26,867 151,560 (202,601) (89 ,34 1) (335,867) (185,244 ) Beginning Fund Balan ce 9,902,026 10,391,233 9,830.242 10,418,100 10,215,499 10,126,158 9,790.291 Ending F un d Balance 10,391 ,233 10,418, 100 9,981,802 10,215,499 10,126,158 9 ,790,29 1 9,605,047 Restricted (546,706) (588,937 ) (618,706) (6 18,706) (624,937) (660,937) (696 ,937 ) Committed (409,746) (409 ,746) (509,746) (6,651,471) (6 ,823,217) (6,856 ,341) (6 ,569 ,646) Assig ned (1 ,497,756) (1,409 ,610) (1 ,776,805) (2,370, 141 ) (2,378 ,978) (2,273,0 13) (2 ,338,464 ) Unassigned Fund Balance $ 7 ,937 ,025 $8 ,009,807 $ 7,076,545 $ 575,181 $ 299 ,026 $ $ Page 27 of 200 Sponsored by : Administration CITY OF KENAI ORDINANCE NO. 2962-2017 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI , ALASKA, AMENDING THE KENAI MUNICIPAL CODE , TITLE 23, "PERSONNEL REGULATIONS," CHAPTER 23.55 FISCAL YEAR 2018 OPERATING BUDGET SALARY SCHEDULE . WHEREAS , the FY2018 Budget includes a 0 .80% increase to the City 's Salary Schedule ; and , WHEREAS , the 0.80 % increase is the combined changed in the Anchorage Consumer Price Index, second half over second half, for 2015 and 2016; and , WHEREAS , the pay increase will go into effect beginn ing July 1, 2017, corresponding to the start of FY2018 . 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 23 .55 of the Kenai MuniciQal Code entitled Fiscal Year 2017 OQerating Budget Salary Schedule: The Kenai Municipal Code, Section 23.55 Fiscal Year 2017 Ope rating Budget Salary Schedule is hereby amended as follows : FISCAL YEAR 2018 OPERATING BUDGET PAY SCHEDULE FOR ALL CLASSIFIED EMPLOYEES EXCLUDING THOSE ENGAGED IN FIRE PROTECTION ACTIVITIES R ange A B c D E F AA BB cc Step 10 .27 10 .53 10 .78 11 .04 11 .3 0 11 .55 11.81 12 .07 12 .32 1 .1 10 .78 11 .05 11.32 11 .59 11.86 12.13 12.40 12.67 12.94 2 11.47 11 .76 12.04 12.33 12.62 12 .90 13.19 13.48 13.76 2.1 12.08 12.38 12.68 12 .9 9 13.29 13 .59 13.89 14.19 14.5 0 2 .2 12.76 13.08 13 .40 13.7 2 14 .04 14.36 14 .67 14.99 15.31 2.3 13.41 13.75 14.08 14.42 14 .75 15.09 15.42 15.76 16.09 2.4 15.66 16.05 16.44 16.83 17 .23 17.62 18.01 18.40 18.79 2 .5 17.74 18.18 18.63 19.07 19 .51 19.96 20.40 20.84 2 1 .29 3 17 .85 18.30 18.74 19 .19 19.64 20 .08 20.53 20.97 2 1.42 4 18.75 19.22 19.69 20.16 20.63 2 1 .0 9 2 1 .56 22 .03 22 .50 5 19.69 20 .18 20.67 21 .17 2 1.66 22.1 5 22 .64 23.1 4 23 .63 6 20 .66 21.18 2 1.69 22.21 22.73 23.24 23.76 24 .28 2 4 .79 7 21 .71 22 .25 22.80 23.34 23.88 24.42 24.97 25.51 26.05 8 22 .80 23.37 23.9 4 24.51 25.08 25 .65 26 .22 26.79 27.36 9 23.94 2 4 .54 25.14 25 .74 26 .33 26 .93 27 .53 28.13 28.73 10 25.12 25.75 26.38 27 .00 27 .63 28.26 28 .89 29.52 3 0 .1 4 11 26.38 27.04 27.70 28.36 29.02 29.68 30 .34 3 1.00 3 1.66 12 27.72 28.41 29.11 29 .80 30.49 3 1 .19 31 .88 32.57 33.26 New Text Underl ined ; [DELETED TEXT BRACKETED] Page 28 of 200 Ordinance No. 2962-2017 Page 2 of 2 13 29.08 29.81 30.53 31.26 31.99 32.72 33.44 34.17 34.90 14 30.55 31.31 32.08 32.84 33.61 34.37 35.13 35.90 36.66 15 32.07 32.87 33.67 34.48 35.28 36.08 36.88 37.68 38.48 16 33.67 34.51 35.35 36.20 "37.04 37.88 38.72 39.56 40.40 17 35.35 36.23 37.12 38.00+ 38.89 39.77 40 .65 41 .54 42.42 18 37.12 38.05 38.98 39.90 40.83 41 .76 42.69 43.62 44.54 19 38.97 39.94 40.92 41 .89 42 .87 43.84 44.82 45.79 46.76 20 40.93 41.95 42.98 44.00 45.02 46 .05 47.07 48.09 49.12 21 42 .99 44.06 45.14 46.21 47.29 48.36 49.44 50.51 51.59 22 45 .11 46.24 47 .37 48.49 49.62 50.75 51.88 53.00 54.13 23 47.38 48.56 49.75 50.93 52.12 53.30 54.49 55.67 56.86 24 49.81 51.06 52.30 53.55 54.79 56.04 57.28 58.53 59.77 FISCAL YEAR2018 OPERATING BUDGET PAY SCHEDULE FOR CLASSIFIED EMPLOYEES ENGAGED IN FIRE PROTECTION ACTIVITIES Range A B c D E F AA BB cc Step 13 20 .77 21.29 21 .81 22.33 22.85 23.37 23.89 24.40 24 .92 14 21 .82 22.37 22.91 23.46 24 .00 24.55 25 .09 25.64 26.18 15 22.91 23.48 24.06 24.63 25 .20 25.77 26.35 26 .92 27.49 16 24.06 24.66 25.26 25.86 26.47 27.07 27.67 28.27 28.87 17 25.26 25.89 26 .52 27 .15 27.79 28.42 29.05 29.68 30.31 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 jurisd iction , 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 wo uld have enacted the remainder of this ordinance even without such part, provision, or application. Section 4. Effective Date : That pursuant to KMC 1.15.0?0(f), this ordinance shall take effect 30 days after adoption, but shall apply to all ho urs worked beginning July 1, 2017. ENACTED BY THE COUNCIL OF THE CITY OF KENAI , ALASKA, thi s 7th day of June , 2017 . BRIAN GABRIEL SR., MAYOR ATTEST: Sandra Modigh, City Clerk Approved by Finance : Contingent on passage of Ordinance 2961-2017 New Text Underlined ; [DELETED TEXT BRACKETE D) Introduced: May 17, 2017 Ena cted: June 7, 2017 Effective: July 6, 2017 Page 29 of 200 'lftff ~ U1/th a Pa.ft, Ot'tf U1/th a Fat~ " 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 '(.0J · Terry Eubank , Finance Director 1 ~. May10,2017 Ordinance 2962-2017 The purpose of this memo is to respectfully request adoption of Ordinance 2962-2017 . Ordinance 2962-2017 codifies the changes to the personnel section of the Kenai Municipal Code that will adopted with the passage of the FY18 City of Kenai Budget. Changes are required with the adoption of the FY 18 Pay Schedule that incorporated a 0.8% Cost of Living Allowance (COLA) increase . The COLA increase has an estimated FY18 salary and benefit cost to the City of $86 ,959 for all funds , comprised of $61, 779 in employee pay increases and $25 , 180 in associated employee benefits. Page 30 of 200 Suggested by: Administration CITY OF KENAI ORDINANCE NO. 2963-2017 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AUTHORIZING BUDGET ADJUSTMENTS AND INCREASING GENERAL FUND ESTIMATED REVENUES AND APPROPRIATIONS FOR COSTS IN EXCESS OF BUDGETED AMOUNTS . WHEREAS, the General Fund Finance , Planning and Zoning , and Parks , Recreation & Beautification Departments project a shortfall in budgeted amounts for employee health insurance because of changes in employee coverage elections ; and, WHEREAS , due to employee vacancies, the police department has excess funds in its health insurance budget to cover the shortfall of these departments; and , WHEREAS, the Fire Department's overtime budget is currently 93.3% expended with two months of the fiscal year to go; and, WHEREAS, higher than budgeted use of overtime is related to excess shift coverage for employees on medical leave and an increase in call volumes; and , WHEREAS , the Fire Department estimates the need for an additional $19 ,835 in overtime and benefits for the completion of FY2017; and, WHEREAS , excess budget exist in the Fire Department's Professional Services Account for transfer to cover the additional overtime; and , WHEREAS, the FY2017 Budget forecasted the vacation of portions of the Old City Shop with the completion of the new Warm Storage Facility ; and , WHEREAS, vacation was delayed until construction of the new Warm Storage Facility was complete ; and , WHEREAS, due to extended occupancy, budgeted amounts for land lease and utilities are not sufficient requiring supplemental funding of $36 ,325; and, WHEREAS , Public Works Departments of the City have identified sufficient funds in other budget categories which are available for transfer to cover the shortfall in the land lease and utilities accounts ; and, WHEREAS , the Parks, Recreation & Beautification Department projects a shortfall in its leave budget due to leave employee leave cash-outs in e xcess of budgeted amounts; and, WHEREAS, annual department budget estimates for leave cash-outs include each employee cashing-out two weeks of leave; and , New Text Und e rlined ; [DELETED TEXT BRACKETED ] Page 31 of 200 Ordinance No. 2963-2017 Page 2 of 4 WHEREAS, when employees cash in more than this estimated amount, budget deficits are created and budget adjustments are needed to cover the deficit; and, WHEREAS , the Parks, Recreation & Beautification Department has cancelled the budgeted replacement of a 72" mower in FY2017 providing sufficient budget for coverage of the deficit in its leave budget; and, WHEREAS, the number of eligible Choice Waiver meals being provided by the Kenai Senior Center is less than originally budgeted creating a $57 ,000 deficit in the funds projected FY2017 revenues; and, WHEREAS, as a result of the revenue deficit, the General Fund will need to provide supplementa l funding for the remainder of FY2017 in the amount of $57,000 . NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1: Form : That this is a non-code ordinance. Section 2: That following budget adjustment is authorized: General Fund In crease: Finance -Health & Life Insurance Planning & Zoning -Health & Life Insurance Parks, Recreation & Beautification -Health & Life Insurance Decrease - Police -Health & Life Insurance Section 3: That following budget adjustment is authorized : General Fund In crease: Fire -Overtime Fire-PERS Fire -Medicare Fire -Workers' Compensation Decrease: Fire -Professional Services New Text Underlined; [DELETED TEXT BRACKETED) $14,513 13,992 13.460 $41.965 $41,965 $15,475 3,400 225 735 $19,835 $19,835 Page 32 of 200 Ordinance No. 2963-2017 Page 3 of 4 Section 4: That following budget adjustment is authorized: General Fund Increase : Non-Departmental -Rentals Shop -Utilities Streets -Utilities Decrease: Section 5: Streets -Repair & Maintenance Streets -Rentals Streets -Operating & Repair Supplies Shop-Small Tools & Minor Equipment Shop -Dues & Publications Shop -Office Supplies Shop -Rentals Buildings -Operating & Repair Supplies That following budget adjustment is authorized: General Fund In crease : Parks , Recreation & Beautification -Leave Decrease : Parks , Recreation & Beautification -Machinery & Equipment $ 8 ,825 24 ,000 3,500 $36,325 $15,025 7,200 6 ,100 2 ,000 2,000 600 400 3,000 $36,325 $M.QQ $M.QQ Section 6: That estimated revenues and appropriations be increased as follows: General Fund Increase Estimated Revenues - Appropriation of Fund Balance In crease Appropriations : Non-Departmental -Transfer to Senior Citizen Fund $57,000 $57,000 Section 7. Severabil ity : 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 , suc h 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 appli catio n . New Text Underlined; [DELETED TEXT BRACKETED] Page 33 of 200 Ordinance No. 2963-2017 Page 4 of 4 Section 8. Effective Date: "That pursuant to KMC 1.15.0?0(f), this ordinance shall take effect upon enactment. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 7th day of June, 2017. ATTEST: Sandra Modigh , City Clerk Approved by Finance ~ BRIAN GABRIEL SR., MAYOR Introduced: May 17, 2017 Enacted: June 7, 2017 Effective : June 7, 2017 New Text Underlin e d ; [DELETED TEXT BRACKETED] Page 34 of 200 'Vtfl'~ t<J/th Q Pacf~ e~ t<J/th Q h.tar-e JI 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 ?-&· Terry Eubank, Finance Director 1?'. May 10, 2017 Ordinance 2963-2017 The purpose of this memo is to respectfully request adoption of Ordinance 2963-2017. Ordinance 2963-2017 authorizes budget transfers within numerous General Fund Departments and authorizes a supplemental appropriation to provide additional funding for operations of the Kenai Senior Center in FY2017. The remainder of this memo will provide justification for the requested adjustment to Health & Life Insurance budgets . Memos in support of other requested budget revisions and the supplemental appropriation have been provided seperately by the impacted departments. Budget adjustments are needed in the Finance, Planning & Zoning , and Parks , Recreation & Beautification Departments for employee health and life insurnance amounts. The FY2017 City budget allocated employee health care costs based on the projected coverage of employees in each department. In each of these departments the actual coverage election by employees differed from what was budgeted creating shortfalls. Funding for the needed budget transfer is available in the Police Department's employee health and life insurance account. Vacancies in the Police Department during FY2017 resulted in the available budget. The change in allocation method incorporated in the FY2018 Budget should eliminate the needed for similar budget revision in subsequent fiscal years. Page 35 of 200 'Utt~ (,(/;tit-a Pai!~ e~ (,(/;tit-a Fu.t~" 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 ~ ,C) · Rachael S. Craig K_R._~l!fl-. 05-07-17 Senior Citizen Fund Supplemental Funding This memo is in reference Ordinance 2963-2017. This memo is requesting a transfer of $57,000 from the General Fund to provide supplemental funding for the Senior Citizen Fund . Due to continual denials of Choice Waiver Client's Care Plans by the State of Alaska, the fund continues to see a decline in Choice Waiver Revenue. When a client, who is 60 years and older, is refused service under the Choice Waiver Program, they are likely to continue receiving services under the center's NTS (Nutrition, Transportation and Services) Grant. The Choice Waiver Program is a fee for service and is paid through a reimbursement per meal. The client is approved for a certain number of meals through the individual's annual plan of care. Currently, the Choice Waiver reimbursement rate is $21.47 per meal. The NTS grant, through the Older American's Act of 1964, states a suggested donation may be requested but a person is not required to make a donation. There is no means test that can be used for the suggested donation. Last fiscal year, the suggested donation was $6.00. As of May 1, 2017, the suggested NTS donation has been increased to $7 .00. The cost to produce a meal at the senior center is approximately $15.00. Comparing November 2016 through April 2017 to the 2015 -2016, we have seen a 12.4% loss in the number of Choice Waiver Clients as well as a 14% decrease in the number of meals provided. I request that you support an increase of $57,000 from the general fund to the Choice Waiver Revenue to cover the loss. Page 36 of 200 MEMORANDUM 'Vtff ~ «1/th a Pacf'~ Ct'tj «11'th a Fatfd'e, " 210 FidalgoAve, Kenai, Alaska 99611-7794 Telephone: (907) 283-7535 I Fax: (907) 283-3014 www. kenai.city TO: THROUGH: Mayor Brian Gabriel and Kenai City Council Paul Ostrander, City Manager ?,<..:?· FROM: Jeff Tucker, Fire Chief DATE: May 8, 2017 SUBJECT: End of Fiscal Year Overtime Budget Transfer As we approach the end of FY 17 the Fire Department is in need of transfering funds to cover unanticipated overtime expenses. The need is percipitated by an increase in calls for service and the need to cover for staff who have suffered off-duty injuries. Our anticipated budget shortfall is estimated to be $19,835.00 which includes $15,475 in overtime , $3 ,400 in PERS , $225 in Medicare , and $735 in Workers ' Compensation Insurance. We have identified the following internal funding sources to cover the budget transfers. 4531 -Professional Services • Employee Physicals • Posichek Calibration Servicing • Shredding Services • Ambulance Billing Services $10,000.00 $1,200 .00 $200 .00 $8,435.00 Page 37 of 200 'V/fl~ a1/t~ a Pa~~ tt'tj a1/t~ a Fu.tan 11 210 Fidalgo Ave, Kenai , Alaska 99611-7794 Telephone: (907) 283-7535 I Fax: (907) 283-3014 www.kena i.city MEMORANDUM TO: THROU ~ FROM:l\fi) DATE: SUBJECT: Mayor Brian Gabriel and Kenai City Council Paul Ostrander, City Manager <;>, CJ · Robert J. Frates, Parks & Recreation Director May 10, 2017 Leave Account -Shortage FY17 The Parks & Recreation Department experienced a deficit in its FY17 Leave Account (001 -445-0300). The deficit of $6,000 is primarily a result of the Director cashing in available hours . To cover this shortfall , funds can be used from the department's Machinery & Equipment account (001-445-8064) in the amount of $6,000 . The reason funds exist is because we will not be purchasing a mower. Page 38 of 200 "tl/tltlfe tfl/th a PaJ'~ tt'tt tfl/th a Fat~ " 210 Fidalgo Ave, Kenai , A laska 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 · Sean Wedemeyer, Public Works Director/Capital Projects Manager S ,All tJ May 11 , 2017 Ordinance No. 2963-2017 This purpose of this memo is to recommend adoption of ordinance 2963-2017. During the fiscal year 2017 budget process in late 2015 and early 2016, it was anticipated that the new warm storage and subsequent Streets/Buildings offices and work areas would be constructed in time for these departments to move out of the Airport owned property at 332 Airport Way by July 1, 2016. At that time it was envisioned that the office/work area would be constructed with wood framing. It was later determined that fire and building codes required we construct with non- combustible materials, e .g . steel framing . The time it required to complete design and procure the materials increased significantly. Therefore budgeted amounts for land lease and utilities at this location are not sufficient. I tasked my foremen with assisting me in identifying budgeted purchases that can be postponed to FY 18 without a significant impact to operations and services. They diligently provided me with a list to choose from. In order to fund the budget shortfall I propose to postpone crack sealing streets, renting equipment to restore ditches to proper profile , and the purchase of various items e .g. small tools and a Volvo diagnost ic subscription. Thank you for your consideration . Page 39 of 200 New Text Underlined; [DELETED TEXT BRACKETED] Sponsored by: Administration CITY OF KENAI ORDINANCE NO. 2964-2017 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, REPEALING KENAI MUNICIPAL CODE CHAPTER 5.15-PRIVATE DETECTIVE AGENCIES, REMOVING SPECIFIC LOCAL REGULATION OF DETECTIVE AGENCIES. WHEREAS, Kenai Municipal Code Chapter 5.15 provides for the regulation of detective agencies; and, WHEREAS, the last license issued to a detective agency was in July 2011; and, WHEREAS, the State does not license private detective and rejected legislation to do so as recently as 2015; and, WHEREAS, few, if any municipalities of a similar size in the State regulate private detectives; and WHEREAS, the Police Chief and City Clerk recommend a repeal of the Chapter because it is not utilized, is outdated making it difficult to administer, and carries an administrative burdening of updating associated fees each year as a part of the City’s Fee Schedule; and, WHEREAS, issuing City licenses may allow private investigators to use the license as a credential to access certain data bases which is not an intent of the City’s regulations. WHEREAS, it is in the best interest of the City to repeal KMC Chapter 5.15 rather than leave it on the books, as the burden and potential for misuse outweighs any benefit. 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 of Chapter 5.15 of the Kenai Municipal Code: That Kenai Municipal Code, Chapter 5.15-Private Detective Agencies, is hereby Repealed in its entirety: [Chapter 5.15 PRIVATE DETECTIVE AGENCIES SECTIONS: 5.15.010 DEFINITIONS. 5.15.020 DETECTIVE AGENCY LICENSE FEE. 5.15.030 DETECTIVE AGENCY APPLICATION—BOND. Page 40 of 200 Ordinance No. 2964-2017 Page 2 of 5 New Text Underlined; [DELETED TEXT BRACKETED] 5.15.040 PRIVATE DETECTIVE LICENSE—FEE. 5.15.050 PRIVATE DETECTIVE LICENSE—APPLICATION. 5.15.060 PENALTY. 5.15.070 GROUNDS FOR DENIAL OF LICENSE. 5.15.080 UNLAWFUL ACTS. 5.15.010 DEFINITIONS. THE WORDS AND PHRASES USED HEREIN, UNLESS THE CONTEXT OTHERWISE INDICATES, SHALL HAVE THE FOLLOWING MEANINGS: (A) “PRIVATE DETECTIVE BUSINESS” MEANS AND INCLUDES THE BUSINESS OF OR THE REPRESENTATION OF BEING ENGAGED IN THE BUSINESS OF, MAKING FOR HIRE, OR REWARD INVESTIGATION, OR INVESTIGATIONS WITH REFERENCE TO ANY OF THE FOLLOWING MATTERS: (1) DETECTING, DISCOVERING, OR REVEALING CRIME OR CRIMINALS OR SECURING SECRET INFORMATION OR EVIDENCE RELATING THERETO; (2) DISCOVERING OR REVEALING THE IDENTITY, WHEREABOUTS, CHARACTER, OR ACTIONS OF ANY PERSON OR PERSONS, THING OR THINGS; (3) THE HABITS, CONDUCT, MOVEMENTS, WHEREABOUTS, ASSOCIATIONS, TRANSACTIONS, REPUTATION, OR CHARACTER OF ANY PERSON, FIRM, OR CORPORATION; (4) THE CREDIBILITY OF WITNESSES OR OTHER PERSONS; (5) THE LOCATION OR RECOVERY OF LOST OR STOLEN PROPERTY; (6) THE CAUSES, ORIGIN, OR RESPONSIBILITY FOR FIRES, ACCIDENTS, OR INJURIES TO REAL OR PERSONAL PROPERTY; (7) THE AFFILIATION, CONNECTION, OR RELATION OF ANY PERSON, FIRM, OR CORPORATION WITH ANY UNION OR NON-UNION ORGANIZATION, WITH ANY OFFICIAL MEMBER OR REPRESENTATIVE THEREOF, OR WITH ANY PERSON OR PERSONS SEEKING EMPLOYMENT IN THE PLACE OF ANY PERSON OR PERSONS WHO HAVE QUIT WORK BY REASON OF STRIKE; (8) THE TRUTH OR FALSITY OF ANY STATEMENT OR REPRESENTATION; (9) THE BUSINESS OF SECURING FOR HIRE OR REWARD EVIDENCE TO BE USED BEFORE AUTHORIZED INVESTIGATION COMMITTEES, BOARDS OF AWARD OR ARBITRATION, OR IN THE TRIAL OF CIVIL OR CRIMINAL CASES. (B) “MERCHANT PATROL SYSTEM” MEANS AND INCLUDES THE BUSINESS OF FURNISHING FOR HIRE OR REWARD GUARDS OR OTHER PERSONS TO PROTECT PERSONS OR PROPERTY, PREVENT THEFT OR UNLAWFUL TAKING OF GOODS, WARES, AND MERCHANDISE, OR THE MISAPPROPRIATION OR CONCEALMENT OF GOODS, WARES, AND MERCHANDISE, MONEY, BONDS, STOCKS, CASES IN ACTION, NOTES, OR OTHER VALUABLE DOCUMENTS OR PAPERS; OR THE BUSINESS OF PERFORMING THE SERVICE OF SUCH GUARD OR OTHER PERSON FOR ANY OF SAID PURPOSES. (C) NOTHING IN THIS CHAPTER SHALL APPLY TO ANY OFFICER OR EMPLOYEE OF THE UNITED STATES OF AMERICA, THE STATE OF ALASKA, OR POLITICAL SUBDIVISION OF THE STATE OF ALASKA, APPOINTED OR ELECTED BY DUE AUTHORITY OF LAW; TO ANY PERSON, FIRM, OR CORPORATION WHOSE BUSINESS IS THE FURNISHING INFORMATION AS TO THE BUSINESS, FINANCIAL STANDINGS, CREDITS OF FIRMS, OR CORPORATIONS; NOR TO ANY PERSON, FIRM, OR CORPORATION INQUIRING AS TO THE PERSONAL HABITS AND Page 41 of 200 Ordinance No. 2964-2017 Page 3 of 5 New Text Underlined; [DELETED TEXT BRACKETED] FINANCIAL RESPONSIBILITY OF APPLICANTS FOR INSURANCE, INDEMNITY, BONDS, OR COMMERCIAL CREDIT, OR OF CLAIMANTS UNDER INSURANCE POLICIES. 5.15.020 DETECTIVE AGENCY LICENSE FEE. IT IS UNLAWFUL FOR ANY PERSON TO ENGAGE IN BUSINESS AS A DETECTIVE AGENCY WITHOUT HAVING FIRST OBTAINED A CITY LICENSE SO TO DO, TO BE KNOWN AS A “DETECTIVE AGENCY LICENSE.” THE FEE FOR SAID LICENSE SHALL BE AN ANNUAL FEE AS SET FORTH IN THE CITY’S SCHEDULE OF FEES ADOPTED BY THE CITY COUNCIL. IF THE APPLICANT IS AN ASSOCIATION, FIRM, OR CO-PARTNERSHIP, SUCH APPLICATION SHALL BE SIGNED PERSONALLY BY EACH PERSON COMPOSING OR INTENDING TO COMPOSE SUCH ASSOCIATION, FIRM, OR CO-PARTNERSHIP. IF THE APPLICANT IS A CORPORATION, SUCH APPLICATION SHALL BE SIGNED BY THE OFFICER OF THE CORPORATION AUTHORIZED TO SIGN SUCH DOCUMENTS IN THE STATE OF ALASKA. SUCH APPLICATION SHALL BE SWORN TO BY ALL PERSONS SIGNING THE SAME BEFORE SOME PERSON AUTHORIZED TO ADMINISTER OATHS. 5.15.030 DETECTIVE AGENCY APPLICATION – BOND. (A) APPLICATION FOR A DETECTIVE AGENCY LICENSE SHALL BE MADE TO THE KENAI POLICE DEPARTMENT ON FORMS TO BE FURNISHED BY THEM FOR THAT PURPOSE AND EACH PERSON SIGNING THE APPLICATION MUST STATE HIS OR HER FULL NAME, AGE, RESIDENCE, PRESENT AND PREVIOUS OCCUPATIONS OF HIS OR HER PRESENT OR FORMER EMPLOYERS, AND SHALL GIVE PERMISSION FOR A COMPLETE INVESTIGATION OF THE APPLICANT. (B) EACH PERSON SIGNING THE APPLICATION MUST HAVE ALREADY OBTAINED OR HAVE CONTINGENT APPROVAL FOR A PRIVATE DETECTIVE LICENSE AS PROVIDED FOR BY THIS CHAPTER, AND SAID APPLICATION SHALL BE ACCOMPANIED BY A SURETY BOND COMPANY AUTHORIZED TO DO BUSINESS IN THE STATE IN THE PRINCIPAL SUM OF FIVE THOUSAND DOLLARS ($5,000.00), CONDITIONED THAT THE LICENSEE SHALL, AND ALL HIS OR HER EMPLOYEES WILL, COMPLY WITH ALL THE REQUIREMENTS OF THIS CHAPTER INSOFAR AS THEY RELATE TO THE BUSINESS OF PRIVATE DETECTIVE OR DETECTIVE AGENCIES. 5.15.040 PRIVATE DETECTIVE LICENSE – FEE. IT IS UNLAWFUL FOR ANY PERSON, WHETHER LICENSED AS A DETECTIVE AGENCY OR NOT, TO ENGAGE IN THE PRIVATE DETECTIVE BUSINESS OR TO ACT OR ENGAGE IN BUSINESS AS A PRIVATE DETECTIVE WITHOUT HAVING FIRST OBTAINED A CITY LICENSE SO TO DO, TO BE KNOWN AS A “PRIVATE DETECTIVE LICENSE.” THE FEE FOR SAID LICENSE SHALL BE AN ANNUAL FEE AS SET FORTH IN THE CITY’S SCHEDULE OF FEES ADOPTED BY THE CITY COUNCIL. SUCH PRIVATE DETECTIVE LICENSE SHALL CARRY THE NAME OF THE DETECTIVE AGENCY BY REASON OF WHICH THE PRIVATE DETECTIVE LICENSE IS ISSUED, AND SUCH LICENSE SHALL BE IN FORCE AND EFFECT ONLY AS LONG AS SUCH PERSON IS POSSESSED OF, OR IS A MEMBER OF A PARTNERSHIP OR OFFICER OF A CORPORATION HOLDING, OR IS EMPLOYED BY THE HOLDER OF SUCH DETECTIVE AGENCY LICENSE. Page 42 of 200 Ordinance No. 2964-2017 Page 4 of 5 New Text Underlined; [DELETED TEXT BRACKETED] 5.15.050 PRIVATE DETECTIVE LICENSE – APPLICATION. APPLICATION FOR A PRIVATE DETECTIVE LICENSE SHALL BE MADE TO THE KENAI POLICE DEPARTMENT ON FORMS TO BE FURNISHED BY THEM FOR THAT PURPOSE; SHALL BE SIGNED BY THE APPLICANT AND SHALL STATE HIS OR HER FULL NAME, AGE, RESIDENCE, HIS OR HER PRESENT AND FORMER EMPLOYERS AND SHALL GIVE PERMISSION FOR A COMPLETE INVESTIGATION OF THE APPLICANT. SUCH APPLICATION MUST BE ACCOMPANIED BY A COMPLETE SET OF FINGERPRINTS AND A PHOTOGRAPH. NO APPLICATION SHALL BE APPROVED BY THE KENAI POLICE DEPARTMENT UNLESS THE APPLICANT IS TWENTY-ONE (21) YEARS OF AGE OR OLDER, A CITIZEN OF THESE UNITED STATES, AND OF GOOD MORAL CHARACTER AND REPUTATION; NOR SHALL THE KENAI POLICE DEPARTMENT BE AUTHORIZED TO ISSUE A LICENSE TO ANYONE WHO IS ADDICTED TO THE USE OF INTOXICANTS OR NARCOTICS; HAS BEEN CONVICTED OF A FELONY WITHIN TEN (10) YEARS PREVIOUS TO THE DATE OF APPLICATION, OR HAS BEEN CONVICTED AT ANY TIME OF A FELONY OR MISDEMEANOR INVOLVING MORAL TURPITUDE OR ASSAULT WITH A DEADLY WEAPON OR THE USE OF OR TRAFFIC IN NARCOTIC DRUGS OR TRAFFIC IN WOMEN FOR IMMORAL PURPOSES. 5.15.060 PENALTY. ANY PERSON FAILING TO COMPLY WITH, OR VIOLATE ANY PROVISION OF THIS CHAPTER SHALL BE GUILTY OF A VIOLATION, AND UPON CONVICTION SHALL BE FINED AS PROVIDED FOR VIOLATIONS IN KMC 13.05.010. EVERY DAY UPON WHICH A VIOLATION SHALL CONTINUE SHALL CONSTITUTE A SEPARATE OFFENSE. 5.15.070 GROUNDS FOR DENIAL OF LICENSE. IF, IN THE OPINION OF THE KENAI POLICE DEPARTMENT, THE APPLICANT DOES NOT MEET THE REQUIREMENTS AND QUALIFICATIONS ESTABLISHED BY THIS CHAPTER, HE OR SHE MAY DENY THE ISSUANCE OF EITHER A TEMPORARY OR A PERMANENT LICENSE. WHEN THE KENAI POLICE DEPARTMENT SHALL REFUSE TO ISSUE EITHER A TEMPORARY OR PERMANENT LICENSE, IT SHALL BE DONE IN WRITING, STATING BRIEFLY AND CONCISELY THE REASONS FOR SUCH DECISION. 5.15.080 UNLAWFUL ACTS. IT IS UNLAWFUL FOR ANY PERSON, UNLESS DULY LICENSED SO TO DO PURSUANT TO THIS CHAPTER, TO ENGAGE IN, ADVERTISE, OR TO HOLD HIM OR HERSELF OUT AS A PRIVATE DETECTIVE OR REPRESENT HIM OR HERSELF AS BEING ENGAGED IN THE PRIVATE DETECTIVE BUSINESS. IT IS UNLAWFUL FOR ANY LICENSEE UNDER THIS CHAPTER TO ASSUME TO ACT AS ANY OFFICER OF THE LAW WITHOUT PROPER AUTHORITY.] 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), this ordinance shall take effect 30 days after adoption. Page 43 of 200 Ordinance No. 2964-2017 Page 5 of 5 New Text Underlined; [DELETED TEXT BRACKETED] ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 7th day of June, 2017. BRIAN GABRIEL SR., MAYOR ATTEST: City Clerk Introduced: May 17, 2017 Enacted: June 7, 2017 Effective: July 7, 2017 Page 44 of 200 Page 45 of 200 Sponsored by: Administration CITY OF KENAI RESOLUTION NO. 2017-25 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AUTHORIZING THE PURCHASE OF REAL PROPERTY DESCRIBED AS US SURVEY 257, LOCATED WITHIN SECTION 5, TOWNSHIP 5 NORTH, RANGE 11 WEST, SEWARD MERIDIAN , FROM RUSSELL CLARK, FOR THE PUBLIC PURPOSE OF INCLUDING THE PROPERTY IN THE BLUFF EROSION RESTORATION PROJECT AND DETERMINING THAT THE PUBLIC INTEREST WILL NOT BE SERVED BY AN APPRAISAL. WHEREAS, the subject real property is described as : US Survey 257 , located in Section 5 , Township 5 North, Range 11 West, Seward Meridian, Kenai Recording District , Third Judicial District, State of Alaska; and, WHEREAS, the total purchase price for the subject parcel containing 2.78 acres is $5,000, plus estimated closing costs of $51 O; and , WHEREAS , pursuant to Kenai Municipal Code 22.05.135(a) the City may acquire property needed for a public use on such terms and conditions as the Council shall determine; however, no purchase shall be made until a qualified appraiser has appraised the property and given the Council and independent opinion as to the full and true value thereof unless the Council, upon resolution so finding , determines that the public interest will not be served by an appraisal ; and, WHEREAS, the City Council has authorized the City Manager to enter into negotiations with property owners who's parcels have been identified by the Department of the Army, Corps of Engineers as being needed for the construction of erosion-control structures or to provide permanent access to support the bluff stabilization project ; and, WHEREAS , the Lower Kenai River has eroded the Kenai River Bluff through the original town site of Kenai at an estimated rate of three feet per year, causing the loss of public and priva te infrastructure , buildings , and lands ; and , WHEREAS , the subject parcel will be included in the project to stabil ize the erosion of the bluff at the mouth of Kenai River; and , WHEREAS, funds are available for the subject parcel purchase through Legislative Grant 12-DC- 377. NOW , THEREFORE , BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI , ALASKA: Section 1. That the Kenai City Council hereby authorizes the City Manager to purchase the real property known as US Survey 257 located in Section 5 , Township 5 North , Range 11 West, Seward Meridian, Kenai Recording Dist rict, Third Judicial District, State of Alaska for the total purchase price of $5 ,000 plus estimated closi ng costs of $510, on a form approved by the City Attorney, to be reta ined by the City for public use. Section 2. That the Kenai City Council further finds the acquisition of the s ubject parcel to be in the best interests of the citizens of the City of Kenai and that the pub lic interest shall be served by its acquisition for the tota l purchase price of $5 ,000 plus estimated closing costs of $510, in accordance with the recitals above which are incorporated herein. Page 46 of 200 Resolution No . 2 017-25 Page 2 of 2 Section 3. That this resolution takes effect immediately upon passage . PASSED BY THE COUNCIL OF THE CITY OF KENAI , ALASKA, this 7 th day of June , 2017. BRIAN GABRIEL SR., MAYOR AITEST: Jamie Heinz , Acting City Clerk Approved by Finance : __ f:.,..__.-~--=----- Page 47 of 200 'Vtff qp-e «1/t/i a Paif~ Ct'tj «1/ti a Fat~ 11 210 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 .::p. 0 - Matt Kelley, City Planner A t:_ May 31 , 2017 Resolution No. 2017-25 The purpose of this communication is to provide additional information in support of Resolution No. 2017-25. The proposed Resolution, would appropriate funding for the purchase of real property described as US Survey 257, located in Section 5, Township 5 North , Range 11 West, Seward Meridian , Kenai Recording District, Third Judicial District , State of Alaska , consist ing of approximately 2. 78 acres. The subject parcel is located within the Kenai River and has been completed eroded away due to erosion of the Kenai River Bluff. The subject parcel has been identified by the Department of the Army , Corps of Engineers as being needed for the construction of erosion-control structures or to provide permeant access to support the bluff stabilization project. The agreed upon purchase price as negotiated with Mr. Clark , as authorized by the City Council is $5,000 plus estimated closing costs of $510. Funding for the purchase will be provided through Legislative Grant 12-DC-3 77 . Attached , please find an aerial photograph identify the subject parcel. Thank you for your consideration. Page 48 of 200 Zoning: Central Commercial KPB Parcel No: 047-103-11 Owner: Russell S. Clark Acreage: 2.78 Legal: US Survery 257, T5N, R11W, Section 5, Seward Meridian ~ KBW~A 0 165 330 66 0 ---====i _____ Feet Page 49 of 200 EARNEST MONEY RECEIPT AND AGREEMENT Received from C itv of Kenai hereinafter call ed PURCHASER, the sum of $0.00, in the fonn of a check payable to Professional Escrow Services, Inc ., in trust for Russell S . C lark hereinafter call ed SELLER, as Earnest Money on NIA (date), in part payment of the purchase price of the following described real property: Legal Description: US Survey 257 (KPB Parcel No. 04 710311) In the Kenai Recording District, Third Judicial Di strict, State of Alaska. The total purchase price is $5,000.00, payable as follows: $ ___ earnest money r81balance due at closing OR OBank loan with OR O Owner Finance $ __ payable at $ __ or more per __ . Including/Plus interest at __ %. Interest accrues from __ . First payment due __ . Amortized years __ . ODue on Sale Clause Late fee of$ __ for _past due. OFull Coverage Insurance Required. Co ll ect at __ . Other terms: __ . THE CLOSING COSTS are to be paid between Seller and Purchaser as follows: Indicate: (S) = Seller; (P) =Purchaser; (50150) = Split equally between Seller and Purchaser _P __ Owners Title insurance Lenders Insurance f Escrow Settlement/Clos in g Fee f Recording Fee __ Escrow Set Up Fee Escrow Annual Fee __ Attorney Doc Prep Fees __ Delinquent Property Taxes __ Pending/Levied Assessments __ C lear Existing Liens __ As-Built Survey Fee __ Appraisal __ Final Inspection on Appraisal Other Co sts __ __ Origination Fee Commitment Fee Discount Points __ Tax Registration Fee Flood Certificati on __ Credit Report __ Document Preparation Fee MIP/PMI __ V.A. Funding Fee __ Establish/Replace Reserves on New Loan __ Interest to Closing Date New Loan __ Well/Septic Testing (if required by lender) __ Home In spection Fee Smoke D etectors w ARNING: IT rs PURCHASER'S AND SELLER'S RESPONSIBILITY TO SEEK AND CONSULT WITH OWN INDEPENDENT LEGAL ADVISOR, TAX ADVISOR, BUILDING & SOIL INSPECTOR, LAND SURVEYOR, WATER & SEWER ENGINEER, OR OTHER APPROPRIATE ADVISOR FOR THIS TRANSACTION AND AT THE SOLE COST TO THE PARTY REQUESTING SUCH SERVICE(S) UNLESS OTHERWISE STATED ABOVE. SUCH SERVICE OR DILIGENT INQUIRY SHALL BE COMPLETED WITHIN 10 DAYS OF SELLER'S SIGNATURE HEREON OR ANY OTHER TIME FRAME AND MUTUALLY AGREED TO IN WRITING BETWEEN SELLER AND PURCHASER. J. The title is to vest and read: City of Kenai (ohusband and wife, o married , o unmarried ,) Page 50 of 200 Purchase and Sales Agreement City of Kenai and Clark S. Russell Kenai Peninsula Borough Parcel Number: 04 710311 2. Seller agrees to furnish and deliver to Purchaser as soon as procurable a purchaser's policy ohitle insurance to be issued by Title Company. If the title cannot be made clear as aforesaid within 20 days from the issuance of a preliminary title report, Purchaser may cancel this agreement and Seller must refund the earnest money. It is also agreed that the Purchaser may waive defects or require the price to be renegotiated to cover any defects or encumbrances at the Purchaser 's sole dis cretion without loss of the earnest money refund. 3 . If title is made good on or before closing and the Purchaser neglects or refuses to complete the purchase, the earnest money may, at Seller's sole option, be forfeited as liquidated damages, which shall not preclude any other remedy available at law or in equity, if any. 4. The property shall be conveyed by WARRANTY DEED free of encumbrances except for rights reserved in federal patents or state deeds, building or use restrictions general to the district, and building or zoning regulations and provisions shall not be deemed defects nor encumbrances. Any defects or encumbrances may be discharged at closing out of the purchase money. 5. Taxes for the current year , rents, interest, mortgage reserves, will b e prorated as of the date of closi ng. 6. Possession will occur on recording. 7. Purchaser offers to purchase the prope1ty on the tenns noted in its present condition and this agreement is issued s ubject to: a. Subject to approval of the Council of the City of Kenai b. c. d. e . 8 . The sale shall be closed in the offices of Professional Escrow Services with an escrow or closing agent on or before 30-Days after approv al of the Resolution or Ordinance approving the purchase by the Coun cil of the City of Kenai. "Closed" shall mean the day the deed of contact is recorded and funds are to be disbursed. 9. Purchaser and the Seller w ill, on demand of either, deposit in escrow with the closing agent all instruments and monies necessary to complete t he purchase. Jo. There are no verbal or other agreements which modify or affect this agreement. Tim e i s of the essence of this agreement. WHEREFORE the Seller and purchaser being in accord do bind themselves hereto by their signatures hereunder: 2 Page 51 of 200 Purchase a nd Sales Agreement City of Kenai and Clark S. Russell Kenai Peninsula Borough Parcel Numb er: 04710311 PURCHASER: Date: (sign name) City of Kenai, Paul Ostrander, City Manager (print name) Telephone: (907) 283-8222 Fax : email:· postrander@keni.city Address: 210 Fidalgo Avenue Kenai, AK 99611 Date: (sign name) (print name) T elephone : Fax : email : Address: - SE LLER: ~//_14 d_ Date: 11.ML J . - (Sign name) I./" • { 7 Russell S. Clark (print name) Telephone: (918) 774-4561 Fax: email: clarkfarm@windstrem.net Address: 27067 Reichert Summerfield Rd Heavener, OK 74937 Date: (sign name) (print name) Telephone : Fax: emai l: Address: Existina Lien Pavoff I Assumotion Information : 1. Lend e r : Loan#: te lephone #: 1. Lender: Loan#: telephone #: 3 Page 52 of 200 Fi le for Record at the Request of: Professional Escrow Services, Jnc. (PESJ) AFTER RECORDING PLEASE MAIL TO: C ity o f Kenai 2 10 Fidal go A ve. Kenai , AK 996 11 Fi le Ref. o. 17 1896305 STATUTORY W~Y DEED The Grantor(s), RUSSELL S. C LARK, w hose address I 27067 OK 74937, fo r and in consideration of th e sum of TEN DOLL ($10.00) a nd other good and val uable co nside ration to him in hand paid , re ce ipt fo r wli"c h is he reby acknowledge , d oes hereb y convey a nd warrant to th e Gra ntee(s), CITY OF KENAI , whose address 2 I F ida lgo AYe. -Kenai, A 99611, all ri g ht, titl e and interest in and to that ce11ain real property , s itu ated in th e Kenai Reco rdin g Di strict, Third udi c ial Di strict, State of A laska, to- w it : US SURVE Y 257, acco rding to the officia l plat thereof, filed in the r ecord s of the Kenai Recording District, hird J udicia l District, S tate f A laska. (KPB Tax Par susfuc ;ro taxes and assessm~nts for th e year 201 7 and subseque nt years, reservati ons, rest ri ctions , co ndi tions, covena nts , easements, ri g ht s of wa) of record , and any set of fac ts an acc urate s urvey o r physical in spectio n wou ld reveal. TOGETHER WITH , A LL A D SINGULAR , the ten e me nts, h ereditam ents, appui1enances a nd p ri v il eges the reto inc id ent , unto said Grantee(s) a nd to hi s he irs, executo rs, admini strato rs and assign s, FOREVER . ---------Be low This Lin e Rrse rved For O ffi cia l Us e Only---------- Page 53 of 200 SIGNED, SEALED AND DELIVERED this ____ day of ________ .2017. RUSSELLS. CLARK STATE OF ___ _ Cou nty of _____ _ On thi s ____ day of , 2017 , be fore me the unders igned Notary Public in and fo r the State of ________ , personally appeared RUSS lJ S. CLARK, w ho ac k:nowle dged to me th at he executed th e within Page 2 of2 ---------Below This Line Reserved For Official Use Only---------- Page 54 of 200 Sponsored by: Administration CITY OF KENAI RESOLUTION NO. 2017-26 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AWARDING AN AGREEMENT FOR ENGINEERING OF KENAI RECREATION CENTER MECHANICAL IMPROVEMENTS WHEREAS, on May 12, 2017 proposals were received from AMC Engineers , Jernstrom Engineering , MBA Consulting Engineers, CRW Engineering Group , RSA Eng ineering , and PDC Engineers; and, WHEREAS , the proposals were scored based on the criteria set forth in the Request For Proposals (RFP); and , WHEREAS, based on the scoring of the proposal review committee Jernstrom Engineering is the highest ranked proposer; and, WHEREAS, award of an agreement to Jernstrom Engineering LLC would be in the best interest of the city; and, WHEREAS, the recommendation from City Administration is to award the agreement to Jernstrom Engineering LLC for the total approximate cost of $39,010.00 ; and , WHEREAS , sufficient monies are appropriated . NOW , THEREFORE , BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI , ALASKA: Section 1. That the City Manager is authorized to award an agreement for the project entitled "MECHANICAL AND ELECTRICAL ENGINEERING OF KENAI RECREATION CENTER MECHANICAL IMPROVEMENTS" to Jernstrom Engineering LLC for the amount of $39 ,010.00 Section 2. That this resolution takes effect immediately upon passage . PASSED BY THE COUNCIL OF THE CITY OF KENAI , ALASKA, this 7th day of June , 2017 . BRIAN GABRIEL SR., MAYOR ATTEST: Jamie Heinz, Acting City Clerk Page 55 of 200 'llttlQ/e «1/th a Pa~~ Ct'tj «11'th a ratfV'e " 210 Fidalgo Ave , Kenai , A laska 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 'V .0 · Sean Wedemeyer, Public Works Director/Capital Projects Manager May 31 , 2017 Awarding an agreement to design mechanica l improvements The purpose of this memo is to recommend adoption of a resolution awarding an agreement to perform the mechanical and electrical engineering for the Kenai recreation center mechanical improvements project. On May 12, 2017 proposals were received from AMC Engineers , Jernstrom Engineering , MBA Consulting Engineers , CRW Engineering Group, RSA Engineeri ng , and PDC Engineers . The review committee scored the proposals based on the criteria outlined in the Request For Proposals (RFP.) Jernstrom Engineering is the highest ranked proposer. The scope of work includes providing bid documents for the fo ll owing improvements . Demolition and replacement of the six existing gas fired packaged rooftop units . New volume dampers, supply air diffusers, return air grilles, and performa nce specify cleaning of the existing ducted systems . General exhaust in the weight room and cardio rooms . Central exhaust fan to accommodate exhaust for the existing restrooms , locker rooms , and demolish the existing ceiling mounted cabinet local exhaust fans. Replacement of the existing domestic water heaters with one centra l sy stem utilizing high efficiency gas fired water heaters, possibly with hot water recircu lati on. Thank you for your consideration . Page 56 of 200 lhec/~ef, KENAI, ALASKA "V" CITY OF KENAI RESOLUTION NO. 2017-27 Sponsored by : Administration A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA FIXING THE RATE OF LEVY OF PROPERTY TAX FOR THE FISCAL YEAR COMMENCING JULY 1, 2017 AND ENDING JUNE 30, 2018. WHEREAS, the Code of the City of Kenai requires that the rate of levy of property tax be set annually not later than the tenth day of June; and, WHEREAS, the Council has adopted the "City of Kenai 2018 Annual Budget," which estimates property tax revenue based upon a tax rate of 4 .35 mills. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Secti on 1. That the rate of levy of property tax for the fiscal year commencing July 1, 2017 and ending June 30, 2018 be fixed at 4 .35 mills. Section 2. That this resolution takes effect immediately upon passage. PASSED BY THE COUNCIL OF THE CITY OF KENAI , ALASKA, this 7th day of June , 2017. BRIAN GABRIEL SR., MAYOR ATTEST: Jamie Heinz, Acting City Clerk Page 57 of 200 'Vtfl'~ «1/t/t, a PaJ'~ Ct~ «1/t/t, a Fat~" 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 Manage(X. 0- Terry Eubank, Finance Director 1 /. May 31 , 2017 Resolution 2017-27 Establishing the City of Kenai FY2018 Property Tax Mill Rate Resolution 2017-27 will establish the rate of levy of property tax for FY2018, tax year 2017 . The proposed rate of levy is 4.35 and will result in $435 in taxes being paid for each $100 ,000 of assessed property value . The rate is unchanged and will generate the necessary property taxes to support the adopted FY18 budget. The last mill rate change for the City was in FY2015. Your support is respectfully requested. Page 58 of 200 Sponsored by: Administration CITY OF KENAI RESOLUTION NO. 2017-28 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING ITS COMPREHENSIVE SCHEDULE OF RATES, CHARGES, AND FEES TO INCORPORATE CHANGES TO BE ADOPTED IN THE FY2018 BUDGET PROCESS TO INCLUDE ADJUSTING MONTHLY RENTAL RATES AT VINTAGE POINTE , INCREASING FEES AT THE KENAI MUNICIPAL AIRPORT, INCREASING FEES FOR WATER AND SEWER SERVICE, AND INCREASING FEES AT THE KENAI MULTIPURPOSE FACILITY. WHEREAS, below market monthly rental rates at Vintage Pointe , the City's senior housing facility , are budgeted to increase in FY2018 in an effort to bring the rental rates closer to market rate rents as determined by the 2015 market rent study by Derry and Associates; and, WHEREAS, charging market rates will assist in providing adequate funds for ongoing and long- term maintenance of the facility; and, WHEREAS , the Administration has determined the rental rates for apron space on the Kenai Airport are significantly undervalued taking into account land values , construction cost of improvements, and maintenance costs; and, WHEREAS, undervalued rental rates for apron space is a significant deterrent to development of airport lease lots; and, WHEREAS, the proposed increase is part of the administration 's si x year plan to increase apron rental rates to market value with FY18 being the third year of this plan; and, WHEREAS , in 2011 the City commissioned a Water and Sewer Rate Study to study the City 's water & sewer rate structure and to determine and recommend any changes to that structure to ensure the utility can continue to operate and provide the necessary funding to maintain its infrastructure; and , WHEREAS, the Water and Sewer Rate Study recommended annual increases in water and sewer rates to provide funding for infrastructure maintenance and expansion and to ensure the financial stability of the fund; and , WHEREAS , the FY2018 increase to water rates is proposed to be 5.0%, future water rate increases are projected to be equal to the change in the Anchorage Consumer Price Index; and , WHEREAS , the FY2018 increase to sewer rates is proposed to be 0.90%, the 2016 change in Anchorage 's Consumer Price Index; and , WHEREAS, increased utility and operating costs at the Kenai Multipurpose facility necessitate an increase in the hourly rate for ice rental from $135.00 per hour to $145 .00 per hour. New Text Un derlined ; [DELETED TEXT BRACKETED] Page 59 of 200 Resolution No. 2017-28 Page 2 of 9 NOW , THEREFORE , BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1. The Vintage Pointe Rents section of the City's Comprehensive Schedule of Rates, Charges and Fees be amended as follows: FOR UNITS WITH RENTAL AGREEMENTS GRANDFATHERED PER THE CITY'S POLICY BEFORE JUNE 30, 201 [6]Z: 2-A apartment=826 Sq. Ft. Ocean Side (3) 2-B apartment=876 Sq. Ft. Ocean Side (2) [2-B APARTMENT=876 SQ. FT . STREET SIDE (2) Monthly Automatic ACH Payment Fee [$ 942.44) [$ 954.68) Note: All Vintage Pointe Rents are subject to a 2% discount for payment by means other than credit card. FOR UNITS WITH MARKET RATE RENTAL AGREEMENTS 1-A apartment=586 Sq. Ft. Ocean Side (8) 1-A apartment=586 Sq. Ft. Street Side (5) 1-B apartment=637 Sq. Ft. Ocean Side (4) 1-B apartment=637 Sq . Ft. Street Side (6) 1-C apartment=682 Sq. Ft. Ocean Side (4) 1-C apartment=682 Sq. Ft. Street Side (4) 2-A apartment=826 Sq. Ft. Ocean Side (3) 2-A apartment=826 Sq. Ft. Street Side (1) 2-B apartment=876 Sq. Ft. Ocean Side (2) 2-B apartment=876 Sq . Ft. Street Side (2) 2-C apartment=789 Sq. Ft. Ocean Side (1) Monthly Automatic ACH Payment Fee [$ 864 .14) [$ 814 .19) [$ 879.12) [$ 829.17) [$ 879.12) [$ 829.17) [$ 994.01) [$ 939 .06) [$ 994 .01) [$ 939 .06) [$ 979.02) Note: All Vintage Pointe Rents are subject to a 2% discount for payment by means other than credit card. $ 977.44 $ 989.68 $ 917.96] $- $ 871 .92 $ 821.52 $ 887.03 $ 836.63 $ 887.03 $ 836 .63 $ 1,002 .96 $ 947.51 $ 1,002.96 $ 947.51 $ 987.83 $- Section 2. The Airport Fees section of the City 's Comprehensive Schedule of Rates, Charges and Fees be amended as follows : 21.05 .085 APX -Airport Regulations 6.05.070 (c) 14.05.010 Fuel Flowage Fee per gallon Aircraft Parking Fees -transient, under 4,000 lbs . 0 -4 hrs. -transient, under 4,000 lbs . over 4 hrs -transient, 4,001 -25,000 lbs per day -transient, 12,501 -100 ,000 lbs [OVER 4 HRS] per day -transient, 100 ,001 lbs and over [AND OVER 4 HRS] per day Landing Fees (a)(2) Signatory per thousand pounds 14.05 .010 (b )(2) Non-signatory per thousand pounds New Text Underlined; [DELETE D TEXT BRACK ETED] [$ 1.60) [$ 2.10 ) $ 0.02 FREE $ 5.00 $ 50.00 $ 100.00 $ 250.00 Page 60 of 200 Resolution No. 2017-28 Page 3of9 exempt --float planes, test landings due to mechanical or weather, government aircraft Tie-down Fees, General Aviation Paved Areas -wheels , per month -wheels, per year -wheels, w/electric per month -wheels, w/electric per year Gravel Area -wheels/skis, per month -wheels/skis, per year Float Plane Basin, Private -daily -monthly -season --May to October -floats/wheels per year -floats/wheels/skis per year -floats/wheels w/electric per year Float Plane Basin, Commercial -daily -monthly -season --May to October -floats/skis/wheels -monthly w/electric -season w/electric Terminal Building Rent --Exclusive Space -signatory -per square foot per year -signatory --arriva l hallway, departure hallway, passenger hold room & baggage claim area (per square foot per year) Terminal Building Rent --Joint Use Space -signatory --baggage make up area (per square foot per year) -signatory --baggage break down area (per square foot per year) -non-signatory terminal rates 30% higher Vehicle Parking Fees at Terminal -short term 0 -2 hours -24 hours -annual permit -annual parking permit w/electric Vehicle Parking Fees [at GA Lot] Greater Than % Mile From Terminal Building -calendar day -annual permit Business Activity & Airport Access Permit -mechanic access (per each) -fueling access (annual) -dispensing fee (per gallon) New Text Underlined ; [DE LETED TEXT BRACKETED] [$ 31.95] [$ 31.95] [$ 19.36] [$ 19.36] $ 40 .00 $ 360.00 $ 60 .00 $ 420.00 $ 40.00 $ 360.00 $ 5.00 $ 40.00 $ 250.00 $ 360.00 $ 360.00 $ 420.00 $ 10.00 $ 50.00 $ 300.00 $ 450 .00 $ 75.00 $ 550.00 $ 32.24 $ 32.24 $ 19.53 $ 19.53 FREE $ 7.00 $ 700 .00 $ 1,000.00 $ 3.00 $ 420.00 $ 50.00 $ 100.00 $ 0.02 Page 61 of 200 Resolution No. 20 17 -28 Page 4of9 -water extraction access (annual) -non-tenant use of basin parking apron -float plane parking apron (annual) -Deposit/replacement proximity card fee (each) -Catering/mobile food service Commercial Turn Fees -turn fee (narrow body-(1 aisle) -turn fee (regional 50 -99 seats) -turn fee (commuter-fewer than 50 seats) Helicopter Landing Fees -Per landing Other Fees -Taxi cab (per vehicle per pickup -Terminal building key replacement (per key ) -Airport apron rental rate per square foot [$ 0.528] $ 100.00 $ 75 .00 $ 25.00 $ 100.00 $ 50.00 $ 200.00 $ 150.00 $ 100.00 $ 25.00 $ 1.00 $ 10.00 $ 0.699 Section 3. The Water Fees section of the City 's Comprehensive Schedule of Rates, Charges and Fees be amended as follows: APX • Public Utility Regulations and Rates 1. Schedule A - General Domestic Service Rates (non-metered) -one or two family residence , per family unit -single or double unit apartment, per family unit -apartment, 3 or more units on a single parcel, per family unit -si ngle bill assumed by owner -separate bill -trailers, one or two on single lot, each -trailer, 3 or more on single lot -single billing -separate billing -boarding houses, per available room 2. Schedule B - Commercial service (non-metered) -demand -1.00 inch service -1 .25 inch service -1.50 inch service -2 .00 inch service -3.00 inch service -larger than 3.00 inch service -use charge -bakery New Text Underlined; [DE LE TED TEXT BRACKETED] [$33.96] ~35 .66 [$33.96] $35 .66 [$25.58] ~26.86 [$33.96] ~35.66 [$33.96] $35.66 [$25.58] ~26.86 [$33 .96] ~35.66 [$9 .04] $9.49 [$34.44] ~36.16 [$52.47] ~55.09 [$86.89 ] ~91.23 [$131 .14] ~137.70 [$196.74] ~206.58 [$295 .0 9] $309.84 [$99 .99] ~104.99 Page 62 of 200 Resolution No. 2017-28 Page 5of9 -bath house, tub or shower, each -bottling works, per bottling machine -bowling alleys, amusement parks, doctor -car lot, with car wash facilities -car wash, automatic, per facility -car wash, self-service, per stall -churches, lodges, clubs, banquet rooms , per seat -cleaners and commercial laundries, per facility -dairies , installation of water meter required -day ca re center/preschool, per child, maximum capacity -doctor and dentist offices, per room or chair -ga rage , service stations -recreational vehicle dump facility (May -September) -hangar, airplane repair -with washing facilities -hospital , per bed -hotel , motel , resort , per room -laundry, self-service , per machine -markets, meat -office building single bill assumed by owner, per business -offi ce building, tenants are billed , per business -restaurants , cafes, taverns, bars, per seat -public office building, per restroom -recreation facility, per restroom, sauna, shower -rv/camper park , per space -schools, per seating capacity -shopping center -shops , beauty , per station or chair -shops , misc. (in cludes barber), per shop -sl eeping room, per room -studio, photo or photo lab -supermarket -theater, indoor, per seat -theater, outdoor, per seat -taverns, lounges, bars (without kitchens), per seat -x-ray or lab office 3. Schedule C - Industrial Service (non-metered) -concrete mi xing plant -concrete products -confectioner -greenhouse, commercia l New Text Underlined; [DE LETED TEXT BRACKETED) [$22.98] [$790.16] [$95.07] [$47.55] [$426.21] [$63.92] [$0.36] [$2 73.77 ] [$1.36] [$20.49] [$40.99] [$47.55] [$40 .99] [$47 .53] [$27.07] [$21 .30] [$38.56 ] [$52.47] [$45 .88] [$52 .47] [$2.95] [$11 .81] [$22.98] [$22.98] [$1 .36] [$23 .80] [$23 .80] [$23.80] [$9.04] [$112.30] [$269.69] [$0 .15] [$0 .15] [$2 .8 1] [$67.23] [$432 .76] [$216.41] [$144 .24] [$144.24] ~24.13 ~829.67 ~99 .82 ~49 .93 ~447 .52 ~67.12 $0.38 $287.46 $1.43 ~21.51 ~43.04 ~49.93 ~43.04 ~49 .91 ~28.42 ~22 .37 ~40.49 ~55.09 ~48.17 ~55.09 $3 .10 ~12.40 ~24.13 ~24.13 $1.43 ~24.99 ~24.99 ~24 .9 9 $9.49 ~117.92 ~283 .17 $0.16 $0.16 $2.95 ~70.59 $454.40 $227.23 $151.45 $151.45 Page 63 of 200 Resolution No. 2017-28 Page 6 of 9 -ice cream plant -cold storage plant or locker -hydrant use (per day) 4. Schedule D - Fire Protection 5. Schedule E - Metered Service -general usage, per thousand gallons -hydrant use, per thousand gallons -minimum monthly charge, general usage 6. Schedule F - Water Connection Permit fee Hydrant Permit deposit [$216.41) [$101 .65) [$88.00] [$3 .28) [$4.93) [$49.20) [$204.00] $227.23 $106 .73 $92.40 None $3.44 $5 .18 $51.66 $214.20 $200.00 Note : All Water Fees are subject to a 2% discount for payment by means other than credit card. Section 4. The Sewer Fees section of the City's Comprehensive Schedule of Rates , Charges and Fees be amended as follows : APX -Public Utility Regulations and Rates 1. Schedule A - General Domestic Service Rates (non-metered) -one or two family residence, per family unit -single or double unit apartment, per family unit -apartment, 3 or more units on a single parcel, per family unit -single bill assumed by owner -separate bill -trailers , one or two on single lot, each -trailer, 3 or more on s ingle lot -single billing -separate billing -boarding houses , per available room 2. Schedule B - Commercial service (non-metered) -demand -1.00 inch service -1 .25 inch service -1.50 inch service New Tex t Underl in ed; [DELETED TEXT BRACKETED] [$50 .96] [$50 .96] [$38.32) [$50.96) [$50.96] [$38.32] [$50 .96] [$1 3.76) [$51.44) [$76.28) [$129 .51] ~51.42 $51.42 ~38.66 ~51.42 $51.42 ~38.66 ~51.42 ~13.88 $51 .90 $76 .97 $130 .68 Page 64 of 200 Resolution No. 20 17-28 Page 7 of 9 -2.00 inch service -3 .00 inch service -larger than 3.00 inch service -use charge -bakery -bath house, tub or shower, each -bottling works, per bottling machine -bowling alleys , amusement parks , doctor -car lot, with car wash facilities -car was h, automatic, per facility -car wash, self-service, per stall -churches, lodges, clubs, banquet rooms, per seat -cleaners and commercia l laundries, per facility -d airies, installation of water meter required -day care center/preschool, per child, maximum capacity -doctor and dentist offices, per room or chair -garage, service stations -recreational vehicle dump facility (May-September) -hangar, airplane repair -with washing facilities -hospital , per bed -hotel , motel, resort , per room -laundry, self-service , per machine -markets, meat -office building single bill assumed by owner, per business -office building, tenants are billed , per business -restaurants, cafes , taverns, bars, per seat -publ ic office building , per restroom -recreation facility, per restroom, sauna, shower -rv/camper park , per space -schools, per seating capacity -shopping center -shops, beauty, per station or chair -shops, misc. (includes barber), per shop -sleeping room, per room -studio , photo or photo lab -superma rket -theater, indoor, per seat -theater, outdoor, per seat -taverns, lounges, bars (without kitchens), per seat -x-ray or lab office New Text Underlined ; [DELETED TEXT BRACKETED ] [$193.38] ~195.12 [$292.75] ~295.38 [$440.00] $443.96 [$149 .0 2] ~150.36 [$33.70] ~34.00 [$1, 181.59] ~1, 192.22 [$142.83] ~144.12 [$70.97] ~71.61 [$635.15] ~640.87 [$94.91 ] ~95.76 [$0 .54] $0.54 [$408.06] $411.73 [$2.05] $2 .0 7 [$30 .61] ~30.89 [$62.1 O] ~62.66 [$70.97] ~71.61 [$61.65] ~62.20 [$70.97] ~71.61 [$40 .81] ~41.18 [$31.49] ~31.77 [$57 .23] ~57.75 [$78.07] ~78.77 [$67.43] ~68.04 [$78.07] ~78.77 [$4.53] $4.57 [$17.74] ~17.90 [$34.15] ~34.46 [$34.15] ~34.46 [$2 .05] $2.07 [$35.48] ~35.80 [$35.48] ~35.80 [$35.48] ~35.80 [$13.76] ~13.88 [$168.55] ~170.07 [$402.74] ~406.36 [$0.25] $0.25 [$0 .25] $0.25 [$4.25] $4.29 [$100.24] ~101.14 Page 65 of 200 Resolution No. 2017-28 Page 8of9 3. Schedule C - Industrial Service (non-metered) -concrete mixing plant -concrete products -confectioner -greenhouse, commercial -ice cream plant -cold storage plant or locker 4. Schedule D - Fire Protection 5. Schedule E - Metered Service -general usage, per thousand gallons -hydrant use, per thousand gallons -minimum monthly charge , general usage 6. Schedule F - Sewer Connection Permit fee [$647 .58] ~653.41 [$322.91] ~325.82 [$214.67] ~216 .60 [$214.67] ~216.60 [$3 22 .91] ~325.82 [$150.80] ~152.16 None [ $ 5.05] [ $ 75.80] $76.48 [$200.00] $20 5.84 Note: All Sewer Fees are subject to a 2% discount for payment by means other th a n credit card . Section 5. The Parks and Recreation Fees section of the Ci ty 's Comprehensive Schedule of Rates , Charges and Fees be amended as follow s : PARKS AND RECREATION FEES Multipurpose Facility -hourly rate (reservation) Ice Rink Pass -Family pass -Adult pass -You th pass Public Skate Picnic Shelter/Gazebo Rese rv atio n -Picnic Shelter (Refundable deposit $50 .00) -Gazebo (Refundable deposit $200.00) Community Garden Plot (each) Adopt-A-Bench (Includes bench , shi pping , installation and maintenance.) Pe rsonal Use Fishery Da y Use Parki ng -5 am to Midnight (vehicle or up to two atv's) Persona l Use Fishery O vernight Park in g -Before noon of the first day to noon of the second day (veh icle New Text Underl ined ; [DELETED TEXT BRACKETED] [$135.00] $145.00 $45.00 $30.00 $20.00 $1.00 $15 .00 $20 .00 $20.00 $450.00 $20.00 Page 66 of 200 Resolution No. 2017-28 P age 9of9 or up to two atv's and one tent) -After noon of the first day to noon of the second day (vehicle or up to two atv's and one tent) Personal Use Fishery Camping (one tent) Personal Use Fishery Vehicle Drop Off (vehicle or up to two atv's per day) Section 6. That this resolution takes effect July 1, 2017. PASSED BY THE COUNCIL OF THE CITY OF KENAI , ALASKA, this 7th day of June, 2017. BRIAN GABRIEL SR., MAYOR ATTEST: Jamie Heinz, Acting City Clerk New Text Underlined ; [DELETED TEXT BRACKETED] $55.00 $45.00 $2 5.00 $10.00 Page 67 of 200 ''{!;ti~ «1/t~ a Pa~~ e'tf «1/t~ a Fat~ II 210 F idalgo Ave, Kenai, Alaska 99611-7794 Telephone : (907) 283-7535 I Fa x: (907) 283-3014 www. kenai.city MEMORANDUM TO: THROUGH: FROM: DATE: SUBJECT: Mayor Brian Gabriel and Kenai City Council Paul Ostrander, City Manager::?. c:;;> · Terry Eubank , Finance Director fr.{. May 31, 2017 FY2018 Budgeted Fee Schedule Changes The purpose of the memo is to recommend passage of Resolution 2017-28 that amend the City's Comprehensive Schedule of Rates, Charges and Fees for changes proposed in the FY2018 Budget. Vintage Point Rents Vintage Pointe Manor was built with the intention of being an independent senior house facility with rents to be based upon market rates. In 2015 the City commissioned a market rate study that was performed by Derry & Associates. That study determined that rents were below market rate. The City instituted a plan to increase rents to market rates by increasing rents annually by a maximum of $35.00 until market rate was reached and then annually by the change in the Anchorage Consumer Price Index. Any new tenants would immediately be charged market rates. The FY2018 Budget includes a continuation of this plan with 34 units increas ing 0 .90 %, the increase in the Anchorage Consumer Price Index and six units increase the maximum of $35.00 per month. The next schedu led market rent study will be performed in FY2019 for implementation in FY2020 . Airport Fees The Airport's Airline Operating Agreement ca ll s for increase in landing fees and terminal rents based on the change in the Anchorage Consumer Price Index. The proposed FY20 18 increase to these fees is 0.90%. The rate for apron rental is in the third -year of a six-year plan to achieve market rate for the space. The FY2018 Budget includes an increase of $0.171 per square foot per month from $0.528 to $0.699. Water and Sewer Utility Rates The City's consultant , CH2M Hill completed a water and sewer rate study for t he City in 2011 . The study concluded a schedule of rate increases is needed that based upon current opera ting costs Page 68 of 200 Page 2 of 2 FY2018 Budgeted Fee Schedule Changes and capital needs of the Water and Sewer Fund. The FY2018 Budget includes the year six recommended increase for the fund . Water rates will increase by 5%, the last scheduled increase in excess of the change i n the Anchorage Consumer Price Index and se wer rates w ill increase 0.90 %, the change in the Anchorage Consumer Price Inde x. Futu re water a nd sew e r rate s w ill increase or decrease based on the change in the Anchorage Co nsume r Pric e Index. Increasing rates w ill ensure the City has operating rese rves suffic ie nt to maintain and operate the uti lity for its customers as well as prov ide matching funds for rep laceme nt and upgrades to the ut ilities infrastructure. T he combined rate for single fami ly water and sew er service wi ll increase from $84 .92 to $87 .08 , not including sales ta x, for customers pa ying by means other than credit card . Kenai Multipurpose Rental Fee Hourly ice rental fees at the Kenai Multipurpose Facility have not in crea sed since 20 13 desp ite increases in uti lities and operating expenses of the faci lity. The proposed $10 .00 per ho ur increase is commensurate with the increase in the Anchorage Con s umer Price Inde x for th e same period of time . Your support for Reso lution 2017-28 is respectfull y requested . Page 69 of 200 Sponsored by: Administration CITY OF KENAI RESOLUTION NO. 2017-29 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO A CONTRACT WITH PREMERA BLUE CROSS BLUE SHIELD OF ALASKA TO PROVID E EMPLOYEE HEAL TH CARE TO CITY EMPLOYEES EFFECTIVE JULY 1, 2017. WHEREAS, Pursuant to KMC 23.40.120 the City provides major medical , dental , and vision insurance to its employees; and , WHEREAS , the City's current provider for this insurance, PRE MERA Blue Cross Blue Shield of Alaska; and , WHEREAS , PREMERA Blue Cross Blue Shield of Alaska has prov ided a no-shop renewal quote for continuing coverage at a premium increase of 12.0%; and, WHEREAS, providing quality health care is a component of a comprehensive compensation package which allows the City to recruit and retain quality employees to provide the services of the City for its residents. NOW, THEREFORE , BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI , ALASKA: Section 1. That the City Council authorizes the City manager to execute a contract with PREMERA Blue Cross Blue Shield of Alaska to provide group medical, dental and vision benefits to the employees of the City of Kenai effective July 1, 2017. PASSED BY THE COUNCIL OF THE CITY OF KENAI , ALASKA, this 7 th day of June, 2017 . BRIAN GABRIEL SR., MAYOR ATTEST: Jamie Heinz, Acting City Clerk Approved by Finance 1~contingent upon passage of Ordina nce 2961-2017 ) Page 70 of 200 MEMORANDUM 'Z!/tl~ t11/t~ a Pa~~ e~ t11lt~ a Fat~ " 210 FidalgoAve, Kenai, Alaska 99611-7794 Telephone: (907) 283-75351 Fax: (907) 283-3014 www.kenai.city TO: THROUGH: FROM: DATE: Mayor Brian Gabriel and Kenai City Council Paul Ostrander, City Manager Y D ' Terry Eubank, Finance Director 14. May 31 , 2017 SUBJECT: Employee Health Insurance Renewal The purpose of the memo is to recommend passage of Reso lution 2017-29 that will authorize renewal of the City's employee health care plan with PREMERA Blue Cross Blue Shield of Alaska . KMC 23.40 .120 requires the City to provide medical, dental and v ision coverage to its employees . This coverage has been provided by PREMERA Blue Cross Blue Shield of Alaska since July 2014. The City received a no bid renewal quote from PREMERA Blue Cross Blue Shie ld of Alaska to renew its current insurance , PREMERA's Plus Envoy Plan , at a 15.0 % increase o ver FY17 rates . Through negotiations the increase was reduced to a no bid offer of 12.0%. Acceptance of a no bid quote or offer precludes the City from soliciting quotes from oth e r providers . Quoted premiu ms were compared to the premiums of the State of Alaska Political Subdivision Health Insurance Plan , which the City participated in , to assure competiveness . PREMERA's quote, despite the 12 .0°io increase , is still lower than the State 's plan . The following is a financial comparison of the City's current plan and the proposed plan . Health Care Premium City Self-Insured Deductible FSA/HRA Administration Employee Life Insurance Broker Fee Employee Wellness Program Total Cost of Health Care City Funded Portion Employee Funded Portion Total FY17 PREMERA $1 ,675,422 159,656 4,022 16,800 25,000 20,000 $1 ,900.900 $1 ,728,433 90 .93% 172.467 9 .07% $1 .900.900 100,00% FY18 PREMERA $1,912,468 164,775 4 ,200 16,800 25 ,000 20 ,000 $2.143.2 43 Difference $237,046 5 , 11 9 178 -0- -0- -0- $2 42,3 4 3 $1 ,916,947 89.44% 188 ,514 226,296 10.56% 5 3,829 $2.143 .243 100.00% $242.3 4 3 Page 71 of 200 Page 2 of 2 Employee Health Insuran ce Renewal A comparison of employee monthly health care premiums is as follows : Employee Employee/Child( ren) Employee/Spouse Employee/Fa mily Part time Employee FY17 PREMERA $ 71 .00 128 .00 140.00 191.00 369.00 Monthly Premium FY18 PREMERA $ 92.00 166 .00 182.00 249 .00 420.00 Difference $ 21 .00 38.00 41 .00 58.00 51 .00 I recommend renewal with PREMERA Blue Cross Blue Shield of Alaska and believe it is in the best interest of the City and its employees . Page 72 of 200 Sponsored by: Administration CITY OF KENAI RESOLUTION NO. 2017-30 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AUTHORIZING THE CITY MANAGER TO RENEW THE CITY'S INSURANCE COVERAGE WITH ALASKA PUBLIC ENTITY INSURANCE (APEi ) FOR JULY 1, 2017 THROUGH JUNE 30 , 2018 . WHEREAS, the City has been a member of APEi since July 1, 2000 receiving competitive rates and quality insurance coverage for the City; and , WHEREAS, the City has entered into a three yea r commitment with APEi for insurance coverage for the period of Jul y 1, 2016 through June 30, 2019; and, WHEREAS, the three-year commitment allows the City to terminate the agreement should the City's net premium increase by more than 10% in any single year; and , WHEREAS, the FY18 increase in insurance premiums is $34,356 .36 or 7.01%; and , WHEREAS, the three year commitment with APEi entitles the City to a 5% annual discount , $27 ,594 for FY18 , on renewal premiums ; and, WHEREAS, as a long-term member of APEi the City receives annual premium renewal credits based upon APE l 's prescribed member dividend program . The City 's FY18 member dividend is $33 ,731 .07 and is based upon the City's longev ity with APEi and the C ity's insurance loss history ; and , WHEREAS, in addition to receiving a member dividend the City will also receive a premi um credit of $52 , 146.56 for its loss control programs; and, WH EREAS , coverage for FY2018 will include flood and insurance co verage for City facilities at a cost of $22, 185.00. Earthq uake and flood coverage was added in FY16 and was decl ined prior to that; and, W HEREAS , based upon the high quality coverage , competitive premiums and credits totaling $113,471 .63 for FY18 it is in the City 's best interest to retain coverage with APEi for the City's insurance needs. NOW , THEREFORE , BE IT RESOLVED BY THE COUNCIL OF THE CITY OF K ENAI , ALASKA: Section 1. APEi. The Council authorizes the City Manager to renew its coverage for FY2018 w ith Page 73 of 200 Resolution No . 2017-30 Page 2 of 2 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 7th day of June, 2017. BRIAN GABRIEL SR., MAYOR ATTEST: Jamie Heinz, Acting City Clerk Approved by Finance t( (Contingent upon passage of Ordi nance 2961-2017 ) Page 74 of 200 'Vtff ar «J/t~ a Pa~~ °''tt «J/t~ a Fat(IH; II 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? o · Terry Eubank, Finance Director// May 30 , 2017 Resolution No. 2017-30 Annual Property , Liability , Workers' Compensation , Airport, and Marine Insurance Renewal. Each year the City goes through a process of renewing its insurance coverages. The City has purchased its coverage from Alaska Public Entity Insurance (APEi) since July 1, 2000 and has always received quality insurance at competitive rates. As an insurance pool , APEi provides insurance coverage to its members . APEi has implemented a premium credit program to return excess equity to its members . Excess equity is created when insurance premiums are in excess of actual claims and reinsurance costs . APEi has determined its retained earnings are in excess of its needs and has instituted a rebate program to its members. The program rewards members for longevi ty with APEi and for a positive loss history. The credit is only available to entities that renew their coverage with APEi. The FY18 City credit will be $33 , 731 .07 upon renewal. APEi provides a premium credit for active safety programs of its insured . The credit is for up to a 4% of the City 's property insurance premium , 15% of the City 's liab ilit y insurance premium , and 15% of the City 's workers compensation premium , all credits are net of APEl's premiums for reinsurance. Reinsurance is coverage provided by other insurance companies for liability in excess of APEi self-retention . The City will receive the maximum for each insurance type in FY18 totaling $52 , 146.56. The loss control credit requires the City to establish and operate a safety committee and provide safety training for its employees . APEi also provides a 5% longevity premium credit to members who e nter into a three yea r commitment for coverage with APEi. The FY18 longevity credit offered to the City is $22, 185.00. The three-year agreement required to receive the credit allows the City to terminate the agreement at any time should the net premium for coverage increase by more than 10 % from one fiscal year to the ne xt. Exclusion to this limit are increases in declared p roperty values, vehicle counts or covered payroll . The FY18 premium increase is 7.01 %. Page 75 of 200 Page 2 of 2 Based upon the quality coverage , competitive rates , excellent service , and $113,471.63 in credits offered to the City for renewing it coverage , I recommend renewing coverage with APEi. Page 76 of 200 KENAI CITY COUNCIL JOINT WORK SESSION LAWTON ACRES MAY 15, 2017 – 6:00 P.M. KENAI CITY COUNCIL CHAMBERS MAYOR GABRIEL, PRESIDING NOTES Council present: R. Molloy, M. Boyle, B. Gabriel, H. Knackstedt, T. Navarre, G. Pettey, J. Glendening Others present: City Manager P. Ostrander, Acting City Clerk J. Heinz, City Attorney S. Bloom, M. Kelley, M. Bondurant Mayor Gabriel began the work session at approximately 6:00 p.m. advising the work session was called to discuss the Administration’s report to City Council regarding Lawton Acres. Greg Daniels noted he was against development of Lawton Acres due to light and noise pollution and long-term negative effects; suggested that most residents didn’t know Council was considering Commercial development; pointed out that the City didn’t benefit from selling the property until the properties were sold; also pointed out that the property was zoned as conservation in the Comprehensive Plan. Roy Wells noted he recognized there was no resolution in deferring and that the land was there to be sold or leased at market value to support the airport; suggested a land swap noting the buffer was reasonable due to the narrow parcels. Wanda Carlson spoke against development noting she was not in favor of the additional traffic it brought; had her home built when the subdivision was smaller and since it’s grown the noise was too loud to take a nap. Bruce Steiner noted he lived on Lawton Drive and enjoyed the quiet nature of where he lived; didn’t understand the push to sell the property as there were vacant buildings around town; suggested offering tax breaks for businesses moving into vacant buildings. Scott Romain suggested land sales be left to private industry; noted several lots in town that were vacant and for sale; pointed out the buffer zone for Aspen Hotel was 100-feet and asked that the City find a way to keep the buffer zone for the residents. Ed Steiner suggested the derelict buildings around town be improved. Melissa Frates noted publicly owned property was less expensive; suggested preserving the green space and revitalizing the derelict properties. Mike Beck noted the flowers were across the street from him and there was not buffer; explained it felt like he was in the Walmart parking lot when in his back yard. Mike Christian pointed out bigger cities build walls to push the noise up and buffer noise; suggested leaving the trees so that it wasn’t necessary to build expensive walls. Also pointed out that the same group of people had been speaking against development over the years and suggested putting the topic on a ballot. Page 77 of 200 Kenai City Council Work Session May 15, 2017 Page 2 Patty See noted that there were many areas in Kenai that had vacant buildings if commercial space was needed. Sheila Henks spoke in favor of retaining the buffer as her property was across from Lawton Acres and the trees made it feel like it wasn’t in town even though it was. Barb Christian spoke in favor of doing something permanent such as a land swap; noted the expense of water and sewer connection seemed cost prohibitive; described the noise level on the Kenai Spur Highway. Marian Austin noted the trees had diminished tremendously since she moved here; didn’t want walls to keep the noise out; enjoyed the wildlife that the trees provide. Mary Whitely spoke in favor of retaining the buffer of trees for the benefits they provide such as cooling, improving public health by absorbing C02, ash, dust, etc., and providing visual screening and protection. Kelly Kelso spoke in favor of a permanent solution; suggested the Airport Commission look at a land swap. Betty Osborn pointed out the residents loved the space and didn’t want the area developed; wanted it left alone. Richard Kelso pointed out there had been two referendums when, not just the neighborhood, but the entire City asked that the area not be developed. City Manager Ostrander pointed out that Council had specific questions they wanted answered in the form of a recommendation from Administration on what the property would look like if it were to be developed; also pointed out that Council and Administration were trying to be transparent and show what the entire subdivision would look like. Ostrander noted a local improvement district was a viable option and that a land swap would have to be of equal value and approved by the FAA. Finally, it was reiterated that the proceeds from the sale of the property go to support operations of the Airport which the entire community benefitted from, that there was no mandate to sell the property, but if sold, must go to support operations of airport. City Attorney Bloom noted an advisory vote was a feasible option; suggested a multiple choice option; clarified the reversion clause on the deed would go into effect when the City dedicated the property as a park forever or never be used for the benefit of the Airport. City Manager Ostrander indicated he had visited with Mr. Sorhus and confirmed he was still interested in a portion of the property. Council Member Knackstedt noted he did not have a burning desire to sell the property; recognized it was airport property; noted Tract C, if subdivided out, would be difficult to develop and Tract E offered the best the buffers; also noted he was not opposed to a local improvement district. Council Member Molloy noted the FAA approved the buffer on Walker Lane; was not in favor of a local improvement district; was in favor of a ballot proposition; was also supportive of a trade depending on what land was available to be traded; saw an opportunity to resolve the issue. Page 78 of 200 Kenai City Council Work Session May 15, 2017 Page 3 Councilor Boyle provided clarification on the land benefitting the airport; noted it was clear time after time that the property remain a buffer; was not in favor of a local improvement district; was supportive of a ballot proposition and of the general fund purchasing the property and leaving it as it is. Council Member Pettey pointed out it was responsible to recognize fair market value and the property was for the benefit of the airport, which the entire community benefitted from. She recognized the trees left a legacy; noted Council had had to make a decision that affected someone’s pocket books pointing out that many neighbors not present could be concerned about how their tax dollars were spent; supportive of ballot proposition. Vice Mayor Navarre pointed out that citizens getting involved was what made a city work; that there would be winners and losers in the situation; that Council had to be good stewards of tax money and City property. Noted he was willing to continue the discussion to work out a solution and was supportive of a local improvement district. Also pointed out that if nothing was done the trees would have to be limbed or trails built to ensure homeless wouldn’t live there, all of which cost tax dollars. Council Member Glendening noted 1,800 acres had been given to the City for the benefit of the airport from the FAA and funds recognized from the acreage were for support of the airport; pointed out Lawton Acres was a small portion and the City had grown over the years; also pointed out the bluff erosion was affecting Old Town and until it was known the Bluff Erosion Prevention Plan was working, there was pressure to move the commercial center. Mayor Gabriel noted that at the last work session, residents asked that the topic not be brought back up over and over, however the nature of unsolicited offers on the property would make the topic continually come back up; agreed that conclusion was necessary. Also noted that his private property was adjacent to industrial property and understood the desire for retaining buffers. Those that attended and participated in the meeting were thanked and it was agreed that a significant list of new information had been brought forward. The work session adjourned at 8:00 p.m. Notes prepared by: _______________________________ Jamie Heinz, CMC Acting City Clerk Page 79 of 200 KENAI CITY COUNCIL – REGULAR MEETING MAY 17, 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 May 17 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: **Mackenzie Lindeman, Student Representative Paul Ostrander, City Manager Scott Bloom, City Attorney Jamie Heinz, Acting City Clerk 3. Agenda Approval Mayor Gabriel noted the following revisions to the agenda and packet: Add to Item D. 4. Ordinance No. 2953-2017 • Scope of Work Outline Add to Item D. 7. Ordinance No. 2957-2017 • Plat Map Add to Item D.9. Resolution No. 2017-20 • Correspondence from Mr. Hyde Add to Item J. 1. City Manager’s Report Page 80 of 200 City of Kenai Council Meeting Page 2 of 17 May 17, 2017 • Correspondence from Timothy Dillon, Executive Director, Kenai Peninsula Economic Development District • Memo Regarding Loss of Water Pressure MOTION: Council Member Molloy MOVED to approve the agenda with the requested additions to the packet and requested UNANIMOUS CONSENT. Council Member Knackstedt SECONDED the motion. VOTE: There being no objections, SO ORDERED. 4. Recognition of Volunteer Services for Shauna Thornton and Mackenzie Lindeman Mayor Gabriel thanked Shauna Thornton for her service on the Parks and Recreation Commission and the Harbor Commission; also thanked Mackenzie Lindeman for her service on the Parks and Recreation Commission and City Council. 5. Proclamation for Men’s Health Month Mayor Gabriel read a Proclamation dedicating June as Men’s Health Month. 6. Consent Agenda MOTION: Council Member Knackstedt MOVED to approve the consent agenda and requested UNANIMOUS CONSENT. Council Member Navarre 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. Audre Gifford, Kenaitze Indian Tribe – Awareness for the Yinihugheltani (Youth Suicide Awareness) Program Audre Gifford explained the Tribe had been awarded a grant, provided local youth suicide data, discussed the Tribe’s goals, explained the community readiness assessment they had commissioned, and noted past events and events on the horizon. Also explained a friendly challenge between City Council and Kenaitze Tribal Council noting the Council with the highest attendance for the SafeTALK trainings would achieve a “Committed Council” award. Page 81 of 200 City of Kenai Council Meeting Page 3 of 17 May 17, 2017 C. UNSCHEDULED PUBLIC COMMENTS Fred Braun introduced John Schweiger as new owner of the old Kambe Theater and the adjacent building. John Schweiger noted his company specialized in movie theaters in communities the size of Kenai; explained he fell in love a few years ago and what his plans had been for renovations. Mr. Schweiger complimented the City Manager and staff for the assistance provided and explained he was growing the theater from three to seven screens and converting the adjacent building to an extreme mini fun-center, which would serve community members of all ages. Also explained Kenai was his second business location in Alaska, Wasilla being the first. D. PUBLIC HEARINGS 1. 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. MOTION: Council Member Knackstedt MOVED to enact Ordinance No. 2950-2017 and the motion was SECONDED by Council Member Glendening. Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment was closed. The Library Director was thanked for applying for the grant. VOTE: YEA: Knackstedt, Gabriel, Molloy, Boyle, Glendening, Pettey, Navarre NAY: ** Student Representative Lindeman: YEA MOTION PASSED UNANIMOUSLY. 2. 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. MOTION: Council Member Molloy MOVED to enact Ordinance No. 2951-2017 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. It was clarified that the overall rating was defined as the overall average of six categories. Page 82 of 200 City of Kenai Council Meeting Page 4 of 17 May 17, 2017 VOTE: YEA: Knackstedt, Gabriel, Molloy, Boyle, Glendening, Pettey, Navarre NAY: ** Student Representative Lindeman: YEA MOTION PASSED UNANIMOUSLY. 3. 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. MOTION: Council Member Knackstedt MOVED to enact Ordinance No. 2952-2017 and the motion was SECONDED by Council Member Glendening. Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment was closed. VOTE: YEA: Knackstedt, Gabriel, Molloy, Boyle, Glendening, Pettey, Navarre NAY: ** Student Representative Lindeman: YEA MOTION PASSED UNANIMOUSLY. 4. Ordinance No. 2953-2017 – Accepting and Appropriating Additional Funds from the Federal Aviation Administration for the 2016 Improved Airport Drainage Project. MOTION: Council Member Knackstedt MOVED to enact Ordinance No. 2953-2017. The motion was SECONDED by Council Member Navarre. Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment was closed. Administration was thanked for providing the scope of work. VOTE: YEA: Knackstedt, Gabriel, Molloy, Boyle, Glendening, Pettey, Navarre NAY: ** Student Representative Lindeman: YEA MOTION PASSED UNANIMOUSLY. 5. Ordinance No. 2954-2017 – Amending Kenai Municipal Code Chapter 10.30 – Record Retention, to Update and Clarify the Form, Operations, and Procedures Regarding the Page 83 of 200 City of Kenai Council Meeting Page 5 of 17 May 17, 2017 Public Records Management Schedule and Record Retention Policy, and Making other Housekeeping Changes. MOTION: Council Member Molloy MOVED to enact Ordinance No. 2954-2017. The motion was SECONDED by Council Member Glendening. Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment was closed. The City Clerk and Deputy Clerk were thanked for their effort and the final product. VOTE: YEA: Knackstedt, Gabriel, Molloy, Boyle, Glendening, Pettey, Navarre NAY: ** Student Representative Lindeman: YEA MOTION PASSED UNANIMOUSLY. 6. Ordinance No. 2955-2017 – Accepting and Appropriating a Grant from the Southern Region Emergency Medical Services (EMS) Council to Provide Staff Training. MOTION: Council Member Navarre MOVED to enact Ordinance No. 2955-2017. 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. 7. 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. MOTION: Council Member Navarre MOVED to enact Ordinance No. 2957-2017. The motion was SECONDED by Council Member Knackstedt. Page 84 of 200 City of Kenai Council Meeting Page 6 of 17 May 17, 2017 Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment was closed. MOTION TO AMEND: Council Member Navarre MOVED to amend Ordinance No. 2957-2017 by substitution and requested UNANIMOUS CONSENT. The motion was SECONDED by Council Member Knackstedt. VOTE ON THE AMENDMENT: There was no objection; SO ORDERED The Attorney explained that the difference between the original ordinance and the substitute ordinance was that the Special Use Permit and the Conditional Use Permits were contingencies so the buyer could back out. VOTE ON THE MAIN MOTION: YEA: Knackstedt, Gabriel, Molloy, Boyle, Glendening, Pettey, Navarre NAY: ** Student Representative Lindeman: YEA MOTION PASSED UNANIMOUSLY. 8. 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. MOTION: Council Member Knackstedt MOVED to enact Ordinance No. 2956-2017. The motion was SECONDED by Council Member Navarre. Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment was closed. It was noted the airstrip had been in existence for over forty years and there were no known issues with the FAA tower, airspace, or neighbors. It was also noted that it would be nice to have someone to look after the property and offer protection for the dunes from inadvertent abuse. VOTE: YEA: Knackstedt, Gabriel, Molloy, Boyle, Glendening, Pettey, Navarre NAY: ** Student Representative Lindeman: YEA MOTION PASSED UNANIMOUSLY. Page 85 of 200 City of Kenai Council Meeting Page 7 of 17 May 17, 2017 9. Resolution No. 2017-20 – Approving a Special Use Permit for PRL Logistics, Inc., for the Contingent Use of an Airstrip on City Owned Property Adjacent to the South Beach. MOTION: Council Member Navarre MOVED to approve Resolution No. 2017-20 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. Administration pointed out the area that the Special Use Permit covered, the area that would eventually be considered for selling to PRL Logistics, and the area being reserved for public access in perpetuity. Also pointed out that until the Conditional Use Permit was approved, there wasn’t authority for conducting activities there. It was noted that there had not been good control of the area in the past and it was hoped it would improve with private ownership going forward. It was also noted that the use plan would be governed by the Conditional Use Permit and that the operational plan was self-limiting as the airstrip was grass. There was question regarding references to the Kenai Municipal Airport in the Special Use Permit. MOTION TO AMEND: Council Member Molloy MOVED to amend the first paragraph on the first page of the Special Use Permit by removing, “parking at the Kenai Municipal Airport,” and replacing it with, “aircraft landing, take off, parking, and loading,” and requested UNANIMOUS CONSENT and the motion was SECONDED by Council Member Knackstedt. VOTE ON THE AMENDMENT: There was no objection; SO ORDERED. MOTION TO AMEND: Council Member Molloy MOVED to amend by deleting, “(Parking),” in the footer of the Special Use Permit and requested UNANIMOUS CONSENT and the motion was SECONDED by Council Member Knackstedt. VOTE ON THE AMENDMENT: There was no objection; SO ORDERED. MOTION TO AMEND : Council Member Molloy MOVED to amend the first paragraph on page 2 of the Special Use Permit to read, “Permittee acknowledges that the use granted herein is subject to the Kenai Municipal Code as those laws may be amended from time to time.,” and requested UNANIMOUS CONSENT and the motion was SECONDED by Council Member Boyle. VOTE ON THE AMENDMENT: There was no objection; SO ORDERED. MOTION TO AMEND : Page 86 of 200 City of Kenai Council Meeting Page 8 of 17 May 17, 2017 Council Member Molloy MOVED to amend the Special Use Permit by deleting the second and third paragraphs, in their entirety, on page 2 of the Special Use Permit and requested UNANIMOUS CONSENT and the motion was SECONDED by Council Member Knackstedt. VOTE ON THE AMENDMENT: There was no objection; SO ORDERED. MOTION TO AMEND : Council Member Molloy MOVED to amend by replacing the word, “Airport,” with the word, “premises,” in section C., clause 7. of the Special Use Permit and requested UNANIMOUS CONSENT and the motion was SECONDED by Council Member Knackstedt. VOTE ON THE AMENDMENT: There was no objection; SO ORDERED. MOTION TO AMEND : Council Member Molloy MOVED to amend the first paragraph in clause 10. of the Special Use Permit by replacing the words, “Apron and/or use of the Airport,” in the last sentence with the word, “premises.,” and requested UNANIMOUS CONSENT and the motion was SECONDED by Council Member Knackstedt. VOTE ON THE AMENDMENT: There was no objection; SO ORDERED. MOTION TO AMEND : Council Member Molloy MOVED to amend the second paragraph in clause 10. of the Special Use Permit by removing the last sentence, so the paragraph would read, “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.,” and requested UNANIMOUS CONSENT and the motion was SECONDED by Council Member Knackstedt. VOTE ON THE AMENDMENT: There was no objection; SO ORDERED. MOTION TO AMEND : Council Member Molloy MOVED to amend the Special Use Permit by removing, in its entirety, clause 12. and renumber the remainder of the document appropriately, and requested UNANIMOUS CONSENT and the motion was SECONDED by Council Member Boyle. VOTE ON THE AMENDMENT: There was no objection; SO ORDERED. MOTION TO AMEND: Council Member Molloy MOVED to amend the definitions clause of the Special Use Permit by removing the statement, “”Airport” means the Kenai Municipal Airport.,” and requested UNANIMOUS CONSENT and the motion was SECONDED by Council Member Boyle. VOTE ON THE AMENDMENT: There was no objection; SO ORDERED. Page 87 of 200 City of Kenai Council Meeting Page 9 of 17 May 17, 2017 Clarification was provided that the area being reserved for public access was not providing for vehicular access and that the restrictions on private planes landing in the area would remain the same. VOTE ON THE MAIN MOTION: YEA: Knackstedt, Gabriel, Molloy, Boyle, Glendening, Pettey, Navarre NAY: ** Student Representative Lindeman: YEA MOTION PASSED UNANIMOUSLY. 10. Resolution No. 2017-21 – Awarding an Agreement for Construction of Senior Center Dining Room Roof Repair and Atrium Replacement 2017. MOTION: Council Member Navarre MOVED to approve Resolution No. 2017-21 and requested UNANIMOUS CONSENT. The motion was SECONDED by Council Member Glendening. Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment was closed. Gratitude was expressed to Kenai Senior Connection, Inc. for the financial help to move the project forward. VOTE: There being no objection; SO ORDERED. 11. Resolution No. 2017-22 – Repealing the City of Kenai Record Retention Schedule Adopted on July 6, 2011 by Resolution No. 2011-51 and Enacting a Public Records Management Schedule and Record Retention Policy. MOTION: Council Member Knackstedt MOVED to approve Resolution No. 2017-22 and the motion was SECONDED by Council Member Molloy. Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment was closed. Clarification was provided that the State’s Local Government Model was used as a guide, that local, state, and federal laws, including the Alaska statute of limitations had been considered, that all department heads had input in and approved their associated sections, and that the Attorney had approved the entire document. The City Clerk and Deputy Clerk were thanked for their efforts. VOTE: YEA: Knackstedt, Gabriel, Molloy, Boyle, Glendening, Pettey, Navarre NAY: Page 88 of 200 City of Kenai Council Meeting Page 10 of 17 May 17, 2017 ** Student Representative Lindeman: YEA MOTION PASSED UNANIMOUSLY. 12. Resolution No. 2017-23 – Authorizing Budget Adjustments in the Airport Fund for Costs in Excess of Budgeted Amounts. MOTION: Council Member Knackstedt MOVED to approve Resolution No. 2017-23 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. It was clarified that the changes made in personnel took care of the additional costs of snow removal. VOTE: There being no objection; SO ORDERED. 13. Resolution No. 2017-24 – Amending Policy No. 2016-01, Procedures for Commissions, Committees and Council on Aging – To Provide Procedures for Council Involvement in Commissions, Committees and Council on Aging Meetings. MOTION: Council Member Navarre MOVED to approve Resolution No. 2017-24 and the motion was SECONDED by Council Member Glendening. Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment was closed. It was noted that the policy had been reviewed with the Attorney and that it was good to have consensus regarding the influence to committees and commissions. It was pointed out that once an ordinance was introduced, it belonged to the body, but if it were to stay in draft form, the sponsor had the opportunity to seek comments. It was asked that consideration be given to that aspect. It was also asked if the intent of the policy was to limit ways for collaboration with committees and commissions or if anything could be sent to a committee or commission, not specifically an ordinance. MOTION: Council Member Molloy MOVED to postpone to the June 7 meeting and the motion was SECONDED by Council Member Boyle. UNANIMOUS CONSENT was requested. VOTE: There being no objection; SO ORDERED. E. MINUTES 1.*Work Session of April 29, 2017 Page 89 of 200 City of Kenai Council Meeting Page 11 of 17 May 17, 2017 Meeting minutes approved by the consent agenda. 2.*Regular Meeting of May 3, 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. *Action/Approval – Liquor License Renewal for Oaken Keg #1808. Approved by the consent agenda. 3. *Ordinance No. 2960-2017 – Amending Kenai Municipal Code 14.25.015- Landscaping/Site Plan for Land Clearing, and Kenai Municipal Code 14.25.020- Application, to Prohibit Land Clearing of More Than Twenty Percent of a Parcel Without an Approved Landscaping/Site Plan. Introduced by the consent agenda and public hearing set for June 7, 2017. 4. *Ordinance No. 2961-2017 – Adopting the Annual Budget for the Fiscal Year Commencing July 1, 2017 and Ending June 30, 2018 and Committing $1,000,000 of General Fund, Fund Balance for Capital Improvements. Introduced by the consent agenda and public hearing set for June 7, 2017. 5. *Ordinance No. 2962-2017 – Amending the Kenai Municipal Code, Title 23, “Personnel Regulations,” Chapter 23.55 Fiscal Year 2018 Operating Budget Salary Schedule. Introduced by the consent agenda and public hearing set for June 7, 2017. 6. *Ordinance No. 2963-2017 – Authorizing Budget Adjustments and Increasing General Fund Estimated Revenues and Appropriations for Costs in Excess of Budgeted Amounts. Introduced by the consent agenda and public hearing set for June 7, 2017. 7. *Ordinance No. 2964-2017 – Repealing Kenai Municipal Code Chapter 5.15-Private Detective Agencies, Removing Specific Local Regulation of Detective Agencies. Introduced by the consent agenda and public hearing set for June 7, 2017. Page 90 of 200 City of Kenai Council Meeting Page 12 of 17 May 17, 2017 8. Action/Approval – Authorizing the City Manager to Work with the Kenai Chamber of Commerce to Create a Partnership with the Chamber through a Memorandum of Understanding to Hold a Silver Salmon Derby. MOTION: Council Member Molloy MOVED to authorize the City Manager to work with the Kenai Chamber of Commerce to create a partnership with the Chamber through a Memorandum of Understanding to hold a Silver Salmon Derby and requested UNANIMOUS CONSENT. The motion was SECONDED by Council Member Boyle. Chamber of Commerce President, Johna Beech, was thanked for her work. It was recognized that there were concerns regarding conservation, catch and release, depth of hooks in the fish when using bait, and the fish’s loss of scales. Clarification was provided that the rules for the derby would eliminate as many of the concerns as possible. VOTE: YEA: Knackstedt, Gabriel, Molloy, Boyle, Glendening, Pettey, Navarre NAY: ** Student Representative Lindeman: YEA MOTION PASSED UNANIMOUSLY. 9. Action/Approval – Approving a Special Use Permit to Kenai Rotary for Use of the Multi-Purpose Facility for the Kenai Rotary Soap Box Derby. MOTION: Council Member Knackstedt MOVED to approve a Special Use Permit for use of the Multi- Purpose Facility for the Kenai Rotary Soap Box Derby and the motion was SECONDED by Council Member Molloy who requested UNANIMOUS CONSENT. VOTE: There being no objection; SO ORDERED. 10. Action/Approval – Approving an Amended Special Use Permit for use of the Softball Green Strip to Golden Wheel Amusements for a Carnival. MOTION: Council Member Knackstedt MOVED to approve an amended Special Use Permit for use of the Softball Green Strip to Golden Wheel Amusements for a carnival and requested UNANIMOUS CONSENT. The motion was SECONDED by Council Member Boyle. Clarification was provided that the dates of the carnival had changed. The Airport Manager noted that she had no concerns with the use of the property. VOTE: YEA: Knackstedt, Gabriel, Molloy, Boyle, Glendening, Pettey, Navarre NAY: Page 91 of 200 City of Kenai Council Meeting Page 13 of 17 May 17, 2017 ** Student Representative Lindeman: YEA MOTION PASSED UNANIMOUSLY. 11. Action/Approval – Mayoral Nomination and Council Confirmation of Mike Dunn to the Harbor Commission. MOTION: Council Member Molloy MOVED to confirm the Mayor’s nomination of Mike Dunn to the Harbor Commission and the motion was SECONDED by Council Member Boyle. Mr. Dunn was thanked for volunteering. VOTE: YEA: Knackstedt, Gabriel, Molloy, Boyle, Glendening, Pettey, Navarre NAY: ** Student Representative Lindeman: YEA MOTION PASSED UNANIMOUSLY. 12. Action/Approval – Mayoral Nomination and Council Confirmation of Recommending Applicants to the Borough Mayor for Appointment to the Kenai Peninsula Borough Planning & Zoning Commission. MOTION: Council Member Knackstedt MOVED to recommend Christine Hutchison and Diane Fikes be considered by the Borough Mayor for appointment to the Kenai Peninsula Borough Planning and Zoning Commission. The motion was SECONDED by Council Member Molloy who requested UNANIMOUS CONSENT. VOTE: There being no objection; SO ORDERED. 13. Action/Approval – Approving an Employment Agreement between the City of Kenai and City Clerk Sandra Modigh. [Clerk’s Note: Council May Convene into Executive Session to Discuss this Agenda Item 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)] MOTION: Council Member Navarre MOVED to recognize the end date of the City Clerk’s Contract effective 4/30/17 and conclude the City Clerk’s employment relationship with the City effective tonight, providing a 120 day severance package to include salary and life insurance premiums paid in lump sum and continued medical benefits with effective date 05/18/17. The motion was SECONDED by Council Member Knackstedt. Page 92 of 200 City of Kenai Council Meeting Page 14 of 17 May 17, 2017 MOTION TO DIVIDE THE QUESTION: Council Member Molloy MOVED to divide the question with the first component being to recognize the end date of the City Clerk’s Contract effective 4/30/17 and conclude the City Clerk’s employment relationship with the City effective tonight, and the second component being providing a 120 day severance package to include salary and life insurance premiums paid in lump sum and continued medical benefits with effective date 05/18/17. The motion was SECONDED by Council Member Boyle. VOTE ON DIVISION OF THE QUESTION: YEA: Knackstedt, Gabriel, Molloy, Boyle, Glendening, Pettey, Navarre NAY: ** Student Representative Lindeman: YEA MOTION PASSED UNANIMOUSLY. Council Member Boyle noted he was not supportive; felt the City Clerk had been loyal; saddened by the actions of the body. VOTE ON THE FIRST COMPONENT: YEA: Knackstedt, Gabriel, Glendening, Navarre NAY: Molloy, Boyle, Pettey ** Student Representative Lindeman: YEA MOTION PASSED. UNANIMOUS CONSENT was requested on the second component. VOTE ON THE SECOND COMPONENT: There being no objection; SO ORDERED. H. COMMISSION/COMMITTEE REPORTS 1. Council on Aging – It was reported that the May 11 meeting was cancelled; Next meeting June 8. 2. Airport Commission – It was reported that on May 11, the Commission approved three Special Use Permits, recommended a change in fees, and requested that a fix for the mural be looked at. It was also reported that there was discussion regarding the T-33 aircraft on loan that may need maintenance, that the annual Air Fair was set for June 10, and that the Commission toured the PRL Logistics facility. 3. Harbor Commission – It was reported that on May 8 the Commission continued discussion regarding their service to the City and thanked Commission Chair Thornton for her service; next meeting June 12. 4. Parks and Recreation Commission – It was reported that on May 4, the Commission requested funds to purchase replacement bleachers and thanked Commissioner Shauna Thornton for her service; June meeting canceled. Page 93 of 200 City of Kenai Council Meeting Page 15 of 17 May 17, 2017 5. Planning and Zoning Commission – It was reported that on May 10, the Commission approved a plat and authorized a letter be sent agreeing to a two-year extension for Keys Turn Subdivision; next meeting May 24. 6. Beautification Committee – It was reported that on May 9, the Committee discussed volunteer plant day being held on June 3 and the beautification brochure that was to be published soon. It was also reported that the Committee received an update regarding summer hires and the pathway to poetry project; next meeting September 12. 7. Mini-Grant Steering Committee – No report. I. REPORT OF THE MAYOR Mayor Gabriel noted the request in the packet, under informational items, from the Kenai Watershed Forum for sponsorship of an iPad. MOTION: Council Member Navarre MOVED to provide a $300 sponsorship, out of legislative grant funds, for an iPad for a youth prize for the Kenai Watershed Forum and Council Member Boyle SECONDED the motion. VOTE: YEA: Knackstedt, Gabriel, Molloy, Boyle, Glendening, Pettey, Navarre NAY: ** Student Representative Lindeman: YEA MOTION PASSED UNANIMOUSLY. [Clerk’s Note: Council Member Navarre left the meeting at 8:17 p.m.] Mayor Gabriel reported on the following: • Attended Brian Springer’s Retirement Party; • Attended a Kenai Historical Society meeting in Hope; • Met with Governor Walker regarding the legislature during a brief visit; • Threw the first pitch for the kickoff of the Kenai Little League season; • Attended a Food Bank Fundraiser; noted a Kenai Central High School student won a competition as a part of the fundraiser; • Provided a reminder of future Memorial Day activities at Kenai Cemetery and then the Veteran’s Memorial at Leif Hansen Park; • Double O Express at the airport hosting the June 3 Coffee with the Mayor; J. ADMINISTRATION REPORTS 1. City Manager – P. Ostrander reported on the following: Page 94 of 200 City of Kenai Council Meeting Page 16 of 17 May 17, 2017 • Introduced the City of Kenai Eagle Cam; • Attended Brian Springer’s retirement party; • Noted he had been assured by the Corps of Engineers that they had what was needed to release the draft for the Bluff Erosion Project; • Met with Governor Walker regarding the legislature and the BEACON building during a brief visit; • City officials and FAA officials met and discussed availability of funds for BEACON building maintenance. 2. City Attorney – S. Bloom reported that he had recently attended Alaska Bar Association meetings which provided needed continuing education credits for his license; provided an update that the legislation regarding municipal liens had passed and noted he would be making changes to the code so the City could benefit; also reported that a scope of work had been prepared so a consultant could be utilized for the airport lease program. 3. City Clerk – Deputy Clerk J. Heinz reported any ballot propositions needing adopted had to be adopted by August 2 in order to be submitted to the Kenai Peninsula Borough timely and also provided a reminder that there was only one Council meeting in July. K. ADDITIONAL PUBLIC COMMENT 1. Citizens Comments (Public comment limited to five (5) minutes per speaker) 2. Council Comments Councilor Knackstedt thanked Student Representative Lindeman for her hard work and noted he was excited about the Eagle Cam. Council Member Boyle wished Ms. Modigh farewell and good luck, also wished Student Representative Lindeman farewell. Council Member Molloy thanked Ms. Modigh for her service and noted his and Council Member Pettey’s intention to amend the budget to make the Deputy Clerk position, full-time. Student Representative Lindeman reported upcoming sporting events, concerts, and graduation events; also reported that the seniors were walking the halls of Mountain View Elementary to inspire the students to graduate; noted she was going to Boise State University to obtain a degree in elementary education to teach. Council Member Glendening noted he had attended a grandson’s baseball game. Council Member Pettey thanked Ms. Gifford for her presentation regarding suicide prevention and encouraged the City Council members to attend the safe talk course; thanked Ms. Modigh for her service to the City. L. EXECUTIVE SESSION – See G. 13. Page 95 of 200 City of Kenai Council Meeting Page 17 of 17 May 17, 2017 1. Review and Discussion of the City Clerk’s Evaluation a Matter which may be a Subject that Tends to Prejudice the Reputation and Character of the City Clerk [AS 44.62.310(C)(2)]. [Clerk’s Note: This item was not considered due to action taken on item G. 13.] M. PENDING ITEMS – None. N. ADJOURNMENT There being no further business before the Council, the meeting was adjourned at 8:41 p.m. I certify the above represents accurate minutes of the Kenai City Council meeting of May 17, 2017. _____________________________ Jamie Heinz, CMC Acting 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 96 of 200 _____________________________________________________________________________________ Sponsored by: Council Member Navarre CITY OF KENAI RESOLUTION NO. 2017-24 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING POLICY NO. 2016-01, PROCEDURES FOR COMMISSIONS, COMMITTEES AND COUNCIL ON AGING -TO PROVIDE PROCEDURES FOR COUNCIL INVOLVEMENT IN COMMISSIONS, COMMITTEES AND COUNCIL ON AGING MEETINGS. WHEREAS, Resolution 2016-03, repealed the existing policy on procedures for City commissions, committees, and the Council on Aging, and created a new policy in its place; and, WHEREAS, the replacement policy does not address Council interaction with these bodies, nor how Council or individual Council Members may cause an item to be placed on their agenda; and, WHEREAS, these bodies are advisory to the Council and Council interaction at the committee and commission level should be minimal to allow for the process at the advisory level to be completed as independently as possible; and, WHEREAS, each advisory body has a Council Liaison to share information between the Council and advisory body as necessary; and, WHEREAS, Council interaction at an advisory meeting should be limited to introduction of sponsored legislation by a Council Sponsor and other communications by Council to the advisory body is generally discouraged; and WHEREAS, items referred to advisory bodies for review should be referred by the Council, as opposed to referral by individual Council Members for purposes of clarity and cohesion. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1. That Council Policy No. 2016-01: Procedures for Commissions, Committees and Council on Aging is amended to address Council participation in advisory body meetings as provided in the attached Amended Policy. Section 2. That this resolution takes effect immediately upon passage. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 17th day of May, 2017. BRIAN GABRIEL SR., MAYOR ATTEST: ______________________________________ City Clerk Page 97 of 200 POLICY NO. 2016-01 (Amended): Procedures for Commissions, Committees and Council on Aging Purpose The purpose of this policy is to establish procedures, other than those provided in KMC 1.90, for Commissions, Committees and Council on Aging. Scope This policy applies to all advisory bodies appointed by the City Council. The Planning and Zoning Commission is also regulated by KMC 14.05. Policy 1. Appointment and Reappointments a. An application for consideration of appointment or reappointment to a [C]Commission, [C]Committee or Council on Aging must be submitted to the City Clerk. b. The Mayor nominates an applicant for appointment or reappointment and by motion, the City Council confirms. 2. Establishing Subcommittees a. A subcommittee of a commission or committee may be established for a specific function upon approval of Council. 3. Meeting Schedules a. Commission, [C]Committee and Council on Aging meeting schedule is as follows: Commission/ Committee/Council on Aging Meeting Schedule Scheduled Meeting Days Airport Commission Monthly Second Thursday of the month Beautification Committee Meetings held January, April, May, September and October Second Tuesday of the month Council on Aging Monthly Second Thursday of the month Harbor Commission Monthly First Monday after first council meeting of the month Library Commission (Suspended as of 2015, Ordinance No. 2815-2015) N/A N/A Parks & Recreation Commission Monthly, except for July First Thursday of the month Planning & Zoning Commission Twice monthly Second & fourth W ednesdays Page 98 of 200 Kenai City Council Policy No. 2016-01 (Amended) Page 2 of 4 b. All regular meetings will be held in the Kenai City Hall Council Chambers with the exception of the Council on Aging who shall meet at the Senior Center, unless offsite arrangements are approved by the Clerk. Exceptions for subcommittee meetings may be made with the advance notice of the City Clerk. c. Regularly scheduled meetings shall begin at 7:00 p.m. unless otherwise approved by Council via motion, with the exception of the Council on Aging, which begins at 4:30 p.m. d. Commissions, Committees and Council on Aging may, with the City Clerk’s approval and notification to Council and the City Manager, hold special meetings (for a specific purpose) on an as-needed basis. e. Commissions, Committees and Council on Aging meetings may be cancelled by the City Clerk, with notification to Council and the City Manager, if cancellation is warranted, i.e. lack of agenda items, pre-knowledge of lack of a quorum, etc. f. Any additional commissions or committees established will be set and incorporated into the meeting schedule by the City Council. 4. Minutes & Meeting Recordings a. With exception of the Planning & Zoning Commission, taking notes and electronically recording meetings shall be the responsibility of department liaison to the specific meeting body. The Clerk’s Office shall take notes and record the meeting for the Planning and Zoning Commission. b. Summary minutes will be produced by the Clerk’s Office from the department liaisons notes and provided to the City Council as official records of the meetings. c. Regularly scheduled meetings shall be electronically recorded and with the exception of Planning & Zoning Commission, shall be kept for two years. d. Planning & Zoning Commission meeting recordings shall be kept for 6 years. 5. Work Sessions a. Work sessions may not be held without the approval of the City Clerk unless they occur on the night of and at the time of a regularly scheduled advertised meeting. Notification of scheduled work session shall be provided to City Council and the City Manager. Work session may be requested by Council, the liaison or Chair of the body. b. During work sessions, only items on the work session agenda may be discussed and no formal actions may be taken. c. At a minimum, work sessions shall be posted on the Official City Bulletin Board in Kenai City Hall and on the city website at least [5]five days prior to the meeting. Page 99 of 200 Kenai City Council Policy No. 2016-01 (Amended) Page 3 of 4 6. Basic Meeting Information a. All meetings shall be open to the public. b. At a minimum, meeting notices shall be posted on the Official City Bulletin Board in Kenai City Hall and on the city website at least [5]five days prior to the meeting. c. Meeting agenda’s shall be established by the Chair and the department liaison. The City Council, by motion, may refer an item to be placed on an agenda seeking a recommendation from the respective Committee, Commission, or Council on Aging. d. The department liaison shall submit items for the agenda and supporting documentation to the Clerk’s Office [1]one week prior to a meeting, no later than 2:00 p.m. The Clerk’s Office will compile meeting material and distribute. The Planning & Zoning Commission is exempt from this requirement as the Planning Department advertises, compiles meeting material and distributes for its commission. e. Rules of Order: Pursuant to KMC 1.15.120(b) and KMC 1.90.050(c), in all matters of parliamentary procedure, Robert's Rules of Order, as revised shall be applicable and govern all meetings, except as specified in KMC 1.15.060 ([M]Motions), KMC 1.15.100 ([S]Speaking), and KMC 1.15.110 ([V]Voting). f. Quorum: No meeting may proceed in the absence of a quorum, i.e. a quorum is more than one-half of the board/commission (quorum of the whole). g. Motion: Pursuant to KMC 1.15.060(k), all motions require a second. A majority of votes is required to pass a motion. h. Speaking: In a meeting, members should be recognized by the Chair before speaking. i. When is it a Meeting: If any public business is discussed collectively by four or a majority of members of one body. 7. Council Participation a. Any Council Member may attend a meeting or work session of any Commission, Committee or the Council on Aging. Only the Council Liaison to the respective, Commission, Committee or Council on Aging may speak on behalf of the Council. Participation by Council Members at Commission, Committee or Council on Aging meetings should be limited to introduction of legislation by one Council Legislative Sponsor. Participation by any other Council Members, written or oral, is discouraged. b. Exception: Council Members may fully participate in any joint work session or other meeting with a Commission, Committee, or the Council on Aging when it has been noticed that the City Council will be in attendance, or there has been a specific delegation of authority by the Council for a member(s) to represent the Council. Page 100 of 200 Kenai City Council Policy No. 2016-01 (Amended) Page 4 of 4 Effective Date: Approved by Resolution 2016-01 (Amended) BRIAN GABRIEL SR., MAYOR ATTEST: City Clerk Page 101 of 200 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council FROM: Council Member Navarre DATE: May 9, 2017 SUBJECT: Resolution Amending Policy Commissions, Committees & Council on Aging This Resolution amending the City’s Policy on Commissions, Committees and Council on Aging is intended to establish procedures for Council Members referring agenda items to the City’s advisory bodies. The recommended amendments also provide guidelines limiting Council Member participation in meetings of advisory bodies to allow the advisory bodies to make independent recommendations to Council. Your consideration is appreciated. Page 102 of 200 PAYMENTS OVER $15,000.00 WHICH NEED COUNCIL RATIFICATION COUNCIL MEETING OF: JUNE 7, 2017 VENDOR DESCRIPTION PERS PERS ENSTAR NATURAL GAS GAS USAGE PREMERA BLUE CROSS HEAL TH INSURANCE INVESTMENTS VENDOR DESCRIPTION PIPER JAFFRAY U.S. GOVT SECURITY DEPARTMENT ACCOUNT AMOUNT VARIOUS LIABILITY 87,604 .74 VARIOUS UTILITIES 23 ,257.60 VARIOUS LIABILITY 132,082 .38 MATURITY DATE AMOUNT Effect. Int. 8/24/2020 1,000,000.00 1.70% Page 103 of 200 Sponsored by: Administration CITY OF KENAI ORDINANCE NO . 2965-20 17 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI , ALASKA, AMENDING KENAI MUNICIPAL CODE 4 .32 .015 -LOCAL AMENDMENTS TO THE 2012 INTERNATIONAL RESIDENTIAL CODE, TO FACILITATE FEE SCHEDULE CHANGES FOR BUILDING PERMITS AND PLAN REVIEWS . WHEREAS, KMC 4.32.015 currently provides that the City will charge a plan review fee and a separate building permit fee for residential properties ; and , WHEREAS, amending KMC 4 .32 .015 as provided will allow the C ity to charge one combined fee for a building permit and plan review as recommended by the Public Works Department. 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 4.32 .015 of the Kenai Municipal Code : That Kenai Municipal Code , Section 4 .32.015 -Residential Code, is hereby amended as follows: The fees for construction of Group R-3 and Group U-1 occupancies , or portions thereof, are as set forth in the City's schedule of rates , charges and fees adopted by the City Council. [PLAN REVIEW FEES SHALL BE FIFTY PERCENT (50%) OF THE BUILDING PERMIT FEE FOR GROUP R-3 AND GROUP U-1. PLAN REVIEW FEES SHALL BE PAID AT THE TIME APPLICATIONS FOR BUILDING PERMITS ARE SUBMITTED.] Secti on 3. Severability: That if any part or provision of this ordinance or app lication 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, provis ion , or application di rectly invol ved 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 . Sect ion 4. Effective Date: That pursuant to KMC 1.15 .0?0(f), this ordinance shall take effect 30 days after adoption. New Text Underl ined; [DE LETED T EXT B RAC KE TE D] Page 104 of 200 Ordinance No. 2965-2017 Page 2 of 2 ENACTED BY THE COUNCIL OF THE CITY OF KENAI , ALASKA , this 21st day of June , 2017. ATTEST: City Clerk BRIAN GABRIEL SR., MAYOR New Text Underl ined; [DE LETED TEXT BRACKETED] Introduced: June 7, 2017 Enacted : June 21, 2017 Effective: J uly 21 , 2017 Page 105 of 200 'Vtfffl/e «1/t~ a Pa.?~ Ct'tj «1/t~ a h.tu.r-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 Manage ~~· Sean Wedemeyer, Public Works Director/Capital Projects Manager S,Nt ~ May 30, 2017 Modifying KMC 4.32.015 Local Amendments to the 2012 International Residential Code This purpose of this memo is to recommend adoption of an ordinance modifying KMC 4.32.015 . Mike Wesson , our Building Official , investigated the method and rate other municipalities h f b 'Id ' 't d I . f Th It . d h c aroe or UI rnq oermr s an pan review ees . e resu s are summarize ere. Municipality Permit cost Cost of permit and plan review based based on on 2000 sf home with 1000 sf garaqe Kenai currently Square Footaqe $1 ,050 Kenai to be proposed on 6/21 Valuation $1 ,581 Soldotna Valuation $1 ,962 Ketchikan Valuation $2 ,348 Seward Valuation $3,238 Kodiak Valuation $2,422 The current fee schedule for residential permits has been in place since 2003 without any modifications that would reflect the substantial rise of inflation during that time. Further, the residential permitting fee we are currently using is not an industry standard. It is based solel y on square footage . All municipalities we surveyed are using the Valuation Method process for their residential buildings, which is what Kenai uses for commercial construction permits. The Valuation Method calculates fees based on the cost of construction published by the International Code Council to calculate the permit fee . This results in increased permit fees due to inflation without requiring future changes to the code or fee schedule . KMC 4 .32 .015 states in part Page 106 of 200 Page 2 of 2 Subject Plan review fees shall be fifty percent (50%) of the building permit fee for Group R-3 and Group U-1. Plan review fees shall be paid at the time applications for building permits are submitted. At the June 21s t meeting a resolution will be offered for adoption that will change the way we charge for building permits and plan reviews based on the information provided in this memo. The proposed permit fee calculation will eliminate the separate charge for the plan review based on the industry standard. Subsequently I recommend adopting this ordinance removing the code language above. Thank you for your consideration. Page 107 of 200 Suggested by: Administration CITY OF KENAI ORDINANCE NO. 2966-2017 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA , INCREASING GENERAL FUND ESTIMATED REVENUES AND APPROPRIATIONS FOR COSTS IN EXCESS OF BUDGETED AMOUNTS. WHEREAS, the General Fund Clerks Office budget has been e xhausted with the conclusion of the City Clerk's Employment Contract and the payment of a 120 day severance package to include salary and life insurance premiums paid in lump sum and continued medical benefits ; and , WHEREAS , supplemental funding of $26,600 is need for the remainder of FY2017; and, WHEREAS, supplemental funding of $26,600 will provide sufficient budget for the employment of the interim City Clerk and a temporary Administrative Assistant II for the remainder of FY2017. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI , ALASKA : 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 - Appropriation of Fund Balance Increase Appropriations: City Clerk -Salaries City Clerk -Overtime City Clerk -Leave $26 .600 $26,050 500 50 $26.600 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 Underlined ; [DELETED TEXT BRACKETED] Page 108 of 200 Ordinance No. 2966-2017 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 21 51 day of June, 2017. ATTEST: Jamie Heinz , Acting City Clerk Approved by Finance ~ BRIAN GABRIEL SR., MAYOR Introduced: June 7, 2017 Enacted : June 21 , 2017 Effective: June 21 , 2017 New Text Underlined; [DELETED TEXT BRACKETED] Page 109 of 200 'Vttlar «1/t~ a Pa~~ e~ «1/t~ a Fu.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 Gab rie l and Kenai City Council Paul Ostrander, City Manager? o - Terry Eubank , Finance Director 1£. May 31, 2017 Ordinance 2966-2017 The purpose of this memo is to respectfully request adoption of Ordinance 2966-2017. At the May 17, 2017 Council Meeting the City Council recognized the end date of the City Clerk 's Contract and provided a 120 day severance package to include salary and life insurance premiums paid in lump sum and continued medical benefits with an effective date of May 18, 2017. Payment of severance was not a budgeted item and Ordinance 2966-2017 will provide sufficient funding for an acting City Clerk and a temporary Administrative Assistant II through the end of FY2017 . The FY2018 Budget is sufficient for this staffing until such time as the permanent Clerk is hired. Page 110 of 200 Sponsored by : Administration CITY OF KENAI ORDINANCE NO. 2967-2017 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, APPROPRIATING TRANSFERS FOR FY2018 BUDGETED CAPITAL PROJECTS IN THE PUBLIC SAFETY CAPITAL PROJECT FUND, THE KENAI ANIMAL SHELTER IMPROVEMENTS CAPITAL PROJECT FUND , THE MUNICIPAL ROADWAY IMPROVEMENTS CAPITAL PROJECT FUND , THE CITY SHOP IMPROVEMENTS CAPITAL PROJECT FUND , AND THE CEMETERY IMPROVEMENTS CAPITAL PROJECT FUND. WHEREAS , at its June 7, 2017 meeting , Council adopted the FY2018 Citywide Budget which included $488,000 in capital projects; and, WHEREAS, $120,000 was appropriated to the Public Safety Capital Project Fund for replacement of the facilities heating system; and, WHEREAS , $35,000 was appropriated to the Kenai Animal Shelter Improvements Capital Project Fund to provide supplemental funding for the facility recoating project ; and, WHEREAS , $48,000 was appropriated to the Municipal Roadway Improvements Capital Project Fund for repair of the Ryan 's Creek outflow culvert on Frontage Road ; and, WHEREAS , $35,000 was appropriated to the City Shop Improvements Capital Project Fund for expansion of the facilities pad ; and , WHEREAS , $250 ,000 was appropriated to the Cemetery Improvements Cap ital Project Fund for design and construction of Phase I of the Kenai Cemetery Exp ans ion ; and, WHEREAS, appropriation is required in the individual capital project funds prior to funds being extended . 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 estima te d revenues and appropriations be increased as follows : Public Safety Capital Project Fund Increase Estimated Revenues - Transfer from General Fund Increase Appropriation - Construction New Text Underlined ; [DE LETE D TE XT BRACKETED] $120 ,000 $120.000 Page 111 of 200 Ordinance No. 2967-2017 Page 2 of 3 Section 3. That estimated re venues and appropriations be increased as follows: Kenai An imal Shelter Improvements Capital Project Fund Increase Estimated Revenues - Transfer from General Fun d Increase Appropriation - Construction $35.000 $35 .000 Section 4 That estimated revenues and appropriations be increased as follows : Municipal Roadway Improvements Capital Project Fund Increase Estimated Revenues - Tran sfer from General Fund Increase Appropriation - Construction $48.000 $48.000 Section 5. That estimated revenues and appropriations be increased as follows : City Shop Improvements Capital Project Fund In c rea se Estimated Revenues - Transfer from General Fund Increase Appropriation - Construction $35 .000 $35.000 Section 6 That estimated revenues and appropriations be increased as follows: Cemetery Improvements Capital Project Fund In c rease Estimated Revenues - Transfer from General Fund In crease Appropriation - Construction $250 .000 $250.000 Section 7. Severability: That if any part or provision of this ordinance or application thereof to any person or c ircumstances is adjudged invalid by any court of competent jurisd iction , 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 ci rcumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance eve n wi thout such part, provision , or application. Ne w Text Underlined; !DELET ED TEXT BRAC KETED ] f Page 112 of 200 Ordinance No. 2967-2017 Page 2 of 3 Section 8. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect July 1, 2017 . ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 21 51 day of June, 2017. ATTEST: Jamie Heinz, Acting City Clerk Approved by Finance _:;1L BRIAN GABRIEL SR., MAYOR Introduced: June 7, 2017 Enacted : June 21, 2017 Effective: July 1, 2017 New Text Underline d ; [DELETED TEXT BRACKETED ] Page 113 of 200 1Vttl~ «J/t/i a Pa~~ e~ «Jt'tli a Fata.re II 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 Kena i City Council Paul Ostrander, City Manager <(.CJ· Terry Eubank , Finance Director 1£. May 31 , 2017 Appropriation of FY2018 Budgeted Capital Projects The purpose of this memo is to provide supporting information for Ordinance 2967-2017. Ordinance 2967-2017 will appropriate funds transferred from the General for capital projects in the FY2018 Budget. Funds transferred by other funds require appropriation prior to e xpending in the fund receiving the transfers . The FY2018 Budget appropriated a transfer of $120 ,000 to the Public Safety Capital Project Fund for rep lacement of boi lers at the City's Public Safety Building . These funds will be combin e d with a State of Alaska Department of Commerce , Community, and Economic Developmen t Grant for completion of the project. $35 ,000 was transferred to the Kenai Animal Shelter Improvements Capita l Project Fund to provide supplemental funding for a project to recoat the facilities walls and floors in the an imal area . Previous appropriations were not suffic ient and this supplemental funding is needed to complete the project. $48 ,000 to the Municipal Roadway Improvements Capital Project Fund for repair of the Ryan 's Creek outflow culvert on Frontage Road. The outflow is failing , threatening to undermine the sidewalk and roadway. $3 5,000 was transferred to the City Shop Improvements Capital Project Fund for ex pansion of the facilities pad . Pad e xpansion will allow material stored at the Old City Shop Yard to be moved , reducing the General Funds annual lease pa y ment to the Airport . $250 ,000 was transferred to the Cemetery Improvements Capital Project Fund for the Phase 1 expansion of the facil ity. At current burial rates an estimated 3 or 4 years of burial plots are ava ila ble . Expansion will take place across Float Plane Basin Road from the existing cemetery. Passag e of th is Ordinance will allow each of these projects to proceed and you support is respectfull y requested . Page 114 of 200 Sponsored by: Council Member Boyle thuityef. KENAI, AlASKA 'V CITY OF KENAI ORDINANCE NO. 2968-2017 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI , ALASKA, APPROPRIATING GENERAL FUND BALANCE FUNDS INTO GENERAL FUND LAND ADMINISTRATION-LANDS FUND FOR THE PURCHASE BY THE CITY OF KENAl'S GENERAL FUND OF AIRPORT PROPERTY OUTSIDE THE AIRPORT RESERVE CONSTITUTING APPROXIMATELY 16.49 ACRES OF REAL PROPERTY DESCRIBED AS S1/2 S1/2 SW1/4, SECTION 33,T6N, R11W, SEWARD MERIDIAN , COMMONLY REFERRED TO AS 'LAWTON ACRES' AND DEED RESTRICTING THE FUTURE USE OF THE PROPERTY TO PARKS AND RECREATIONAL USES TO BE RETAINED BY THE CITY FOR A PUBLIC PURPOSE. WHEREAS , the City obtained the 16.49 acre parcel (Lawton Acres) from the Federal Aviation Administration (FAA) in 1964, via a Quit Claim Deed generally restricting the use of the property to development, improvement, operation or maintenance of the Airport; and, WHEREAS, pursuant to a request by the City on April 20, 1983, the FAA issued a Deed of Release for Lawton Acres containing a Reverter Clause similar to the original Quit Claim Deed that provides that if the terms and conditions of the conveyance document are not followed, the property will revert to the federal government at its option ; and, WHEREAS, in accepting the Deed of Release, the City Council passed Resolution 83-48 providing that proceeds from any sale or lease of the property would be devoted to the Airport for development, improvement, operation or maintenance ; and , WHEREAS, Lawton Acres is not needed by the Airport for Airport purposes; and, WHEREAS , the funds utilized for the purchase will not leave the City, but transfer from the General Fund to the Airport for Airport uses; and , WHEREAS , Lawton Acres is currently and has historically been zoned as Conservation allowing for Parks and Recreational uses; and , WHEREAS, the City's 2016 Comprehensive Plan provides for Lawton Acres to be parks, recreation and open space; and, WHEREAS , historic and recent efforts by the City to sell Lawton Acres for development purposes has been met with public opposition in favor of maintaining the existing uses; and , WHEREAS , the City Council and majority of public comments reflect a desire for a permanent resolution for the property eliminating future uncertainty and conflict; and , WHEREAS, there is significant public support, expressed in writ ing and orally at public meetings , for the purchase of Lawton Acres by the General Fund to allow for preservation of property; and, New T ext Underlined; [DE LETED TEXT BRACK ETED] Page 115 of 200 Ordinance No. 2968-2017 Page 2 of 4 WHEREAS , preserving the property in its current state or allowing limited Parks and Recreational development will maintain the sanctity of the surrounding residential neighborhoods and provide separation from industrial and commercial areas ; and, WHEREAS, at least parts of the 16.49 acres, which specifically includes the 'Field of Flowers ,' is already used as a public park; and , WHEREAS, the City's General Fund has sufficient funds to purchase the property without significant negative implications ; and , WHEREAS, KMC 21.15.080-Appraisal, requires that Airport land be appraised within the last 12 months prior to a sale, and KMC 21 .15 .180-Sale, requires the sale to be at fair market value; and , WHEREAS , KMC 22 .05 .135-Acquisition of Property, allows the Council to authorize the purchase of property for a public use, after a qualified appraiser has appraised the property; and , WHEREAS , it is in the best interest of the City to purchase the property at its appraised value for the public use of preserving the property in its current state or allowing limited Parks and Recreational development to maintain the sanctity of the surrounding residential neighborhoods and provide separation from industrial and commercial areas and create public parks and recreational opportunities for all residents of the City; and , WHEREAS , placing a deed restriction on the property restricting its use in perpetuity for parks and recreational uses, will accomplish the public purpose in the property acquisition. 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 . Statement of Ownership: That the City of Kenai, on behalf of the Airport is the Owner of the real property described as S 1/2 S 1/2 SW 1/4, Section 33 , T6N , R11W, Seward Meridian. Section 3. Public Purpose and Best Interest Findings: That the Kenai City Council further finds the acquisition of the subject parcel to be in the best interests of the citizens of the City of Kenai and that the public interest shall be served by its acquisition for the total purchase price as established by a fair market value appraisal, in accordance with the recitals above which are incorporated herein . That it is further found that the property is not needed for Airport purposes. Section 4. Authorization of Purchase: That the Kenai City Council hereby authorizes the City Manager to purchase the real property described as S 1/2 S 1/2 SW 1/4, Section 33 , T6N, R11W , Seward Meridian , for the total purchase price as appraised, on a form approved by the City Attorney , to be retained by the City for public use and restricted as provided below. New Text Underlined ; [DELET ED TEXT BRACKETED] Page 116 of 200 Ordinance No . 2968-2017 Page 3 of 4 Section 5. That estimated revenues and appropriations be increased as follows: General Fund Increase Estimated Revenues - Appropriation of Fund Balance: Increase Appropriations: Land Administration -Land: Section 6. Title : That Title shall be conveyed by a Quit Claim Deed . Any instrument conveying Title to the property shall include the following restrictions , promises , and /or covenants: (a) that the City of Kenai reserves unto that the Grantee ex pressly agree for itself and its heirs, e xecutors , administrators, successors , transferees, and assigns , for the use and benefit of the public a right of flight for the passage of aircraft in the airspace above the surface of the property, together with the right to cause in said airspace such noise as may be inherent in the operation of aircraft, now known or hereafter used, for navigation of or flight in the said airspace, and for use of said airspace for landing on or at and for taking off from or operating on Kenai Municipal Airport; and , (b) that the Grantee expressly agree for itself and its heirs , executors, administrators , successors , transferees , and assigns to restrict the height of structures , objects of natural grown , and other obstructions on the property to a height of not more than 242 above mean sea level ; and , (c) that the Grantee expressly agree for itself and its heirs, executors, administrators, successors, transferees, and assigns to prevent any use of the property which would interfere with landing or taking off of aircraft at the Kenai Municipal Airport , or otherwise constitute an airport hazard; and, ( d) that in perpetuity, the use of the property shall be restricted for public park , recreation ; and , ( e) that all covenants heretofore stated , shall run with the land and shall inure to the benefit of, and be binding upon the heirs , executors, administrators, successors , transferees, and assigns of the parties to the contract for sale and conveyance. Section 7. Proceeds of Sale: That should a sale of the property be finalized, all revenues from the sale shall be deposited in the Airport Land Sale Permanent Fund for use in the development, improvement, and operation of the Kenai Municipal Airport and as otherwise required in that Deed of Release executed on April 20, 1983 and recorded at Book 209 , Pages 30-31 , Kenai Recording District. Section 8. 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 Underl ined ; [DELETED T EXT BRACKETED] Page 117 of 200 Ordinance No. 2968-2017 Page 4 of 4 Section 9. 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 21st day of June, 2017. ATTEST: City Clerk BRIAN GABRIEL SR., MAYOR New Text Underlin ed ; (DE LETED TEXT BRACKETED] Introduced: June 7, 2017 Enacted : June 21, 2017 Effective : July 21, 2017 Page 118 of 200 'Vtff~e a1/t~ a PaJ'~ Ct'ti a1/t~ a Fat~ 11 210 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 Council Member Boyle June1 ,2017 Ordinance No . 2968-2017 regarding Lawton Acres Ordinance 2968-2017 proposes to purchase Lawton Acres utilizing General Fund , Fund Balance and deed restrict the property for Parks and Recreational uses . The funds utilized for the purchase will stay within the City and will be utilized for the benefit of the City's Airport. This direction is consistent with historic and recent public testimony and provides a final solution and direction for Lawton Acres. Kenai Municipal Code requires that the property be appraised and the purchase price reflect fair market value. There is not a recent appraisal on the property. This Agenda includes an Action Approval item authorizing the City Manager or City Attorney to obtain an appraisal. It is my understanding that an appraisal can be accomplished by June 19 , 2017 . This would allow the Council to know the purchase price of the property prior to voting on enactment of this Ordinance at Council 's June 21 , 2017 meeting . Your consideration is appreciated. Page 119 of 200 ''(ltff qfe «1/th a Pa.f~ ft'tj «11'th a f"atare " 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 Kena i Ci ty Counc il Paul Ostrande r, City Manager and Dave R~Police Chief?,D · May 31, 2017 Dispatch Consolidation After careful consideration of the costs and benefits of consolidating the Kenai Communications Center with Soldotna Public Safety Communications Center (SPSCC), it is the recommendation of the Police Chief and City Manager that we not move forward at this time. The risks of higher potential costs and the risks of reductions to service appear to outweigh the potential for cost savings . The FY16 cost of operating the communications center was $748 ,000 (five year average of $734,211 ), and of that, cost the City annually recieves $52,800 from the borough-collected 911 taxes . Another nearly $40 ,000 in operating costs to support the police department would mostly have to remain in the budget. This leaves a potential savings of approximately $655 ,000 . The proposed contract with the Kenai Peninsula Borough (KPB ), in early estimates is around $270,000 per year. However, th is estimate carries with it significant risks of being higher not only in the long term with contract adjustments , but in the short term as call volumes are sorted out to apportion costs. The savings prior to considering additional personnel that would be required in the absence of a dispatch center could be $350,000-$400 ,000. Additional personnel required by the Police Department to maintain police and administrative services in their current capacity will be significant and will likely have costs that equal or go beyond the projected savings , and again carry risk of significantly exceeding the anticipated savings . There are two components of the staffing issue created by removing the eight dispatch personnel from the Police Department. The first is admin istrative work required to operate a police department. Currently there is one adm inistrative employee in the Police Department's budget to carry out those tasks, and remaining administrative tasks are spread acrosss the dispatch personnel. We would anticipate the need for 2 to 2.5 additional adminsistrive personnel required by the Police Department, bringing the adm inistrative staff to 3 to 3.5 positions total. The second component of the staffing issue is much more d ifficult to measure, and that is the effect on officer staffing when you take away the 24/7 administrative support supplied by an Page 120 of 200 Page 2 of 2 Dispatch Consolidation onsite dispatch center. It is apparent that police agencies, like Kenai PD, that operate their own dispatch center have significantly integrated them into operations and have maintained departments with less officers by shifting administrative work from officers to dispatchers . The level of this integration and the cost to police staffing time may not be consistent across police agencies and makes comparisons between police agencies and dispatch centers less intuitive. We looked at this a couple ways: 1) We evaluated unallocated officer time which is a common measure to look at when staffing a police department and determined that officers taking on additional administrative tasks would unacceptably reduce the unallocated officer time available for patrolling, deterring crime, and community policing, at current police staffing levels. 2) We compared police officer staffing to other agencies in the State and determined that our staffing levels are low and less than the average of department's our size when compared to the populations they serve. For instance, Soldotna PD operates under the contracted dispatch model with SPSCC, and has 3.2 officers per thousand residents while Kenai has 2.42 per thousand residents. The above information is a very consolidated and synopsized explanation of the staffing issues that would need to be resolved in a consolidated dispatch scenario. We would estimate an additional 2-2.5 administrative positions required at the Police Department and 2 officers added to maintain police services in their current form. Those estimates and the financial impact to the City are shown below. Annual dispatch budget Annual KPB contribution Absorbed operational Costs Adjusted annual dispatch budget Estimated annual KPB charge Estimated annual cost for two police officers Estimated annual cost for two admin II employees Total estimated annual cost differential $748,000 $52,800 $40,000 $655,200 $270,000 $250,000 $196,000 -$60 ,800 There are a number of pros and cons to a consolidated dispatch model , some of them tangible and many less tangible . We primarily focused on the potential for cost savings and the risks of higher costs and reduced police services . We appreciate the Borough 's time and resources that have been dedicated to looking into this project. Their initiative and professional approach , willingness to evaluate it, and to hammer out ideas and problems has been valuable. We are asking the Council to auhorize the City Manager to send a letter to Kenai Peninsula Borough Mayor Mike Navarre providing this information and explaining our decision to not pursue consolidation at this time. Page 121 of 200 'Vtf I~ a1/tifl a Po.J'~ Ct'tj a1/till a Fatfl.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 ?. o. · Mary L. Bondurant -Airport Manager May 15 , 2017 CPD Alaska, LLC -Special Use Permit CPD Alaska , LLC. is requesting a special use permit for a fueling area on the apron consisting of approximately 35,000 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 May 11 , 2017 meeting and recommends Council approve the request. Does Council recommend the City Manager enter into a Special Use Permit with CPD Alaska, LLC, for a fueling area on the apron? Please contact me if you have any questions. Attachment: Original Special Use Permit Page 122 of 200 SPECIAL USE PERMIT -2017 The CITY OF KENAI (City) grants to CPD ALASKA, LLC. (Permittee), whose address is 201 Arctic Slope Ave., Anchorage, AK 99518, a Special Use Permit for the fueling area on the apron 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 35,000 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 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 $2,038 .75 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 10% per annum , and penalty of 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 if 22, Termination) 4. Use. City authorizes Permittee's non-exclusive use of the Premises for the following purpose(s): Special Use Permit-Crowley (Apron Fueling Area) Page 1of8 Page 123 of 200 Aviation Fueling on Apron Fueling Area. 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-Crowley (Apron Fueling Area) Page 2of8 Page 124 of 200 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: i. All policies will be by a company/corporation currently rated "A-" or better by A.M. Best. 1i. 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. Special Use Permit-Crowley (Apron Fueling Area) Page 3of8 Page 125 of 200 111. Permittee shall request a waiver of subrogation against City from Permittee's insurer and the waiver of subrogation, where possible, shall be provided at no cost to City. iv. 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 e ffective 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 o f 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 absorb ent 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 Special Use Permit-Crowley (Apron Fueling Area) Page 4of8 Page 126 of 200 any damage caused by and costs associated with any spill, the cleanup of any spill, or the discharge of petroleum products or hazardous materials due to Permittee 's us e 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 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 sh all 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-Crowley (Apron Fueling Area) Page 5of8 Page 127 of 200 discriminatory, basis to all users of the Airport and shall charge reasonable, and not unjustly discrim inatory, 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 or ders , 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-Crowley (Apron Fueling Area) Page 6of8 Page 128 of 200 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 CDP Alaska, LLC., and where the context reasonably indicates, its officers , agents , and employees. "Airport" means the Kenai Municipal Airport. CITY OF KENAI CPD ALASKA, LLC Paul Ostrander Date Robert E. Cox Date City Manager Vice President Special Use Permit-Crowley (Apron Fueling Area) Page 7 of 8 Page 129 of 200 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 Robert E. Cox, Vice President, CPD Alaska, LLC, on behalf of the State of Alaska. ATTEST: Sandra Modigh, City Clerk SEAL: APPROVED AS TO FORM: / )' Scott M. Bloom, City Attorney Y:Wrport\SUP\Crowley\2017 0425 Crowley Ramp SUP.docx Notary Public for Alaska My Commission Expires: ____ _ Special Use Permit-Crowley (Apron Fueling Area) Page 8of8 Page 130 of 200 EXHIBIT A --- Crowley I I EXHIBIT A Page 131 of 200 'Vtt'I~ «1/th a. Pa.J'~ tt't; «11't~ a. h.t(lfl; '' 210 Fidalgo Ave , Kenai, Alaska 99611-7794 Telephone: (907) 283-7535 I Fax: (907) 283-3014 www.kena i.city MEMORANDUM TO: THROUGH: FROM: DATE: SUBJECT: Mayor Brian Gabriel and Kenai City Jl Cu ~ · Paul Ostrander, City Manager 7,(\ \ Mary L. Bondurant -Airport Managj\ May 15, 2017 Everts Air Fuel, Inc. -Special Use Permit Everts Air Fuel , Inc., is requesting a special use permit for the purchasing of fuel for use in Permittee's aircraft and to take delivery of bu lk fuel for purposes of resale off airport property on approximately 12 ,000 square feet of the commercial apron . Attached is a special use permit effective one year from J uly 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 May 11, 2017 meeting and recommends Council approve the special use permit. Does Council recommend the City Manager enter into a Special Use Permit with Everts Air Fuel, Inc.? Please contact me if you have any questions . Attachment: Origi na l Special Use Permit Page 132 of 200 SPECIAL USE PERMIT -2017 The CITY OF KE NAI (City) grants to EVERTS AIR FUEL, INC. (Permittee), whose address is P.O . Box 60908, Fairbanks, AK, 99076, 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 12 ,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 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$699.00 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 Avenue, 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 10% per annum, and penalty of 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 if 22 , Termination) 4. Use. City authorizes Permittee's non-exclusive use of the Premises for the following purpose(s): Special U se Permit-Everts Air Fuel, Inc. (Fueling Area) Page 1 of9 Page 133 of 200 To purchase fuel for use in Permittee's aircraft and to take delivery of bulk fuel (for purposes of resale off airport property) delivered to aircraft of Permittee on the Premises . 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. Special Use Permit-Everts Air Fuel, Inc. (Fueling Area) Page 2 of9 Page 134 of 200 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. 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 premise s, 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 : i. 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, Special Use Permit-Everts Air Fuel, Inc. (Fue ling Area) Page 3 of9 Page 135 of 200 or a combination thereof, and signed by a person authori zed by the insurer to bind coverage on its behalf. 111. Permittee shall request a waiver of subrogation against City from Permittee's insurer and the waiver of subrogation, where possible, shall be provided at no cost to City. iv. 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 th is 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 C ity 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 Muni cipal Airport, and/or Permittee 's exercise of the priv ileges granted in this Permit. This shall be a continuing obligation and shall remain in effect after termination of th is Permit. Special Use Permit-Everts Air Fuel, Inc. (Fueling Area) Page 4 of9 Page 136 of 200 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 Pennittee provide adequate absorbent materials and tools available on the Premises and at the airport in order to maintain a fuel spill and response capability. Pennittee shall be liable for any damage caused by and costs associated with any spill, the cleanup of any spill, or the discharge of petroleum products or hazardous materials due to Pennittee'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. Pennittee is aware that there are significant penalties for improperly disposing of the Hazardous Materials and other waste and for submitting false infonnation 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 gaso line, 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 insta ll 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 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 fue l facilities , by Cit y 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 s ub stances and materials. Special Use Permit-Everts Air Fuel, Inc. (Fueling Area) Page 5 of9 Page 137 of 200 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 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 . Special Use Permit-Everts Air Fuel, Inc . (Fueling Area) Page 6 of9 Page 138 of 200 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 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 Everts Air Fuel, Inc . and where the context reasonably indicates, its officers, agents , and employees. "Airport" means the Kenai Municipal Airport. Special Use Permit-Everts Air Fuel, Inc. (Fueling Area) Page 7 of9 Page 139 of 200 CITY OF KENAI Paul Ostrander City Manager Date EVERTS AIR FUEL, INC. Cliff Everts President Date ACKNOWLEDGMENTS STATE OF ALASKA ) ) SS . TillRD JUDICIAL DISTRICT ) TillS 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 Cliff Everts , President, Everts Air Fuel, Inc., on behalf of the State of Alaska. Notary Public for Alaska My Commission Expires: ____ _ Special Use Permit-Everts Air F uel, Inc. (Fueling Area) Page 8 of9 Page 140 of 200 AITEST: Sandra Modigh, City Clerk SEAL: APPRO /)O FORM: L ScottM. Bloom, City Attorney Y :\A irport\SUP\Everts\2017 0428 Everts Fueling Area SUP.docx Special Use Permit-Everts Air Fuel, Inc. (F ueling Area) Page 9 of9 Page 141 of 200 ~ \. 5! --~ ---. I > 11 Everts Air Fuel Fueling Area \ 12,000 sq.ft. -+ \ I ~ \ \ \_ __ _// ;( \ 1 M/l \ ---~--- -~-~------ \ ) l_ Sl oi 0 ,~ I I .., ~ I ;: w uiz ~-~-' ~ ~o z z :l 00 ZGl ' 0 0 ---· ~/ //. // / . I. . II) -' ...... ..---···-·-.. -·· ---j I l-.... _____ _ ! r-···-··-·-·-········· I ( . ·-·-·····) I ... -' ---,- / I I I I I I I I I I I E x h ibit A 1:aw ~-.. \1 'F n....,...,.,?O!!Te • .,._..,--__,.., ..... ,., ,...~ ... 1 Page 142 of 200 ''Vtff ~ «1/t~ a Pa.f~ tt'tj «11't~ a Fu.tfif'e 11 210 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 \y.0-{}, Mary L. Bondurant -Airport Mana \ r'1Y May 15, 2017 Everts Air Fuel, Inc. -Special Use Permit Everts Air Fuel , Inc., is requesting a special use permit for aircraft loading and parking on approximately 30 ,000 square feet of 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 May 11 , 2017 meeting and recommend s Council approve the special use permit. Does Council recommend the City Manager enter into a Special Use Permit with Everts Air Fuel, Inc.? Please contact me if you have any questions . Attachment: Original Special Use Permit Page 143 of 200 SPECIAL USE PERMIT -2017 The CITY OF KENAI (City) grants to EVERTS AIR FUEL, INC . (Permittee), whose address is P.O. Box 60908, Fairbanks, AK 99706 , 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-exclus ive right to use 30 ,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 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 $1 , 7 4 7 .50 plus applicable sales tax. B. Proximity Car d 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 Avenue, 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 10% per annum, and penalty of 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 if 22 , Termination) 4. Use. City authorizes Permittee's non-exclusive use of the Premises for the following purpose(s): Special Use Permit-Everts Air Fuel , Inc. (Ramp Aircraft Loading & Parking) Page I of 8 Page 144 of 200 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 an y 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-Everts Air Fuel, Inc. (Ramp Aircraft Loading & Parking) Page 2of8 Page 145 of 200 7. Coordination with Airport Management. Perrnittee 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 Perrnittee. 8. Radio Transmitting Equipment. Perrnittee 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. Perrnittee shall secure and keep in force adequate insurance, as stated below , to protect City and Perrnittee. Where specific limits are stated, the limits are the minimum acceptable limits . If Perrnittee'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 . Perrnittee 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. It. 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. m. Perrnittee shall request a waiver of subrogation against City from Special Use Permit-Everts Air Fuel , Inc. (Ramp Aircraft Loading & Parking) Page 3of8 Page 146 of 200 Permittee's insurer and the waiver of subrogation, where possible, shall be provided at no cost to City. iv. 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 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-Everts Air Fuel, Inc. (Ramp Aircraft Loading & Parking) Page 4of8 Page 147 of 200 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 han gar, or within 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 Fuelin g 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-Everts Air Fuel, Inc. (Ramp Aircraft Load in g & Parking) Page 5 of 8 Page 148 of 200 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 u sed 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 Pennittee 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-Everts Air Fuel, Inc. (Ramp Aircraft Loading & Parking) Page 6of8 Page 149 of 200 to a fail ure 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. lmpoundment 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 Everts Air Fuel, 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 EVERTS AIR FUEL, INC. Cliff Everts President Special Use Permit-Everts Air Fuel, Inc. (Ramp Aircraft Loading & Parking) Date Page 7of8 Page 150 of 200 ACKNOWLEDGtvffiNTS 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 Cliff Everts, President, Everts Air Fuel, Inc., on behalf of the State of Alaska. ATTEST: Sandra Modigh, City Clerk SEAL: APPROVED AS TO FORM: --? :;: --------Scott M. Bloom, City Attorney Y :\Airport\SUP\Everts\2017 0428 Everts Ramp SUP .docx Notary Public for Alaska My Commission Expires: ____ _ Special Use Permit-Everts Air Fuel, Inc. (Ramp Aircraft Loading & Parking) Page 8of8 Page 151 of 200 Everts Air Fuel 30,000 sqft --- EXHIBIT A I EXHIBIT A Page 152 of 200 'Vtfl~ «1/t/i a Pa&'~ Ot'tf «1/t/i a Fo.tal"e 11 210 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 Kena i City Council Paul Ostrander, City Manager ?~O Mary L. Bondurant -Airport Manage May 26, 2017 Pacifi c Star Seafood's, Inc. -Special Use Permit Pacific Star Seafood 's , Inc., called on May 25, 2017 requesting a special use permit for the on or off-loading of fish on approximately 15,000 square feet of the commercial apron effective June 8, 2017. Attached is a special use permit effective for three months; June, July and August 2017. June's monthly fee is based on the FY17 rate and July and August will be based on the FY18 rate reflected in the table below passed by City Council at the May 18, 2016 Council meeting. Apron Rate Increases to Arrive at Market i n 6 vears 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 will review the Special Use Permit at the June 8, 2017 meeting. Does Council recommend the Ci ty Manager enter i nto a Special Use Permi t w i th Pacific Star Seafood's, Inc., subject to a favorable recommendation from the Airport Commissi on? P lease contact me if you have any questions . Attachment: Original Special Use Permit Page 153 of 200 SPECIAL USE PERMIT 2017 The CITY OF KENAI (City) grants to PACIFIC STAR SEAFOODS, INC., (Permittee), whose address is 672 Bridge Access, Kenai. AK 99611 , a Special Use Permit for the purpose of on or off-loading fish 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 15,000 square feet as described in the attached diagram shown in the attached Exhibit A for the uses identified in this Permit. 2. Term. The term of this Permit shall be June 8, 2017 , and ending on August 31 , 201 7 . Regardless of the date of signature, this Permit shall be effective as of June 8, 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 plus applicable sales tax as follows: June $ 546.25 July $ 873.75 August $ 873 .75 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 fee s 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 often 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 ii 22, Termination). Special Use Permit-Pacific Star Seafoods, Inc. -Fish Haul Page I of 8 Page 154 of 200 4. Use. City authorizes Permittee's non-exclusive use of the Premjses for the following purpose(s): On or off-loading fish. NOTE: This permit does not guarantee the exclusive use of the area identified in Exhibit A. City reserves th e right to re -assign Permittee, upon reasonable notice, to other areas as Airport ne eds may require. Permittee shall have the right of ingress and egress to the Airpo1t using only designated gate access locations (wruch may require a proximity card) for the use of the Premises. This Permit, and any access rights allowed hereunder, are for Permjttee's use only and may not be tran sferred or assigned. Use of the Premises by Permittee is subject to the reasonable admirustrative actions of the City of Kenai for the protection and maintenance of the Prenti ses 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 Murucipal Code and municipal regulations governing the Kenai Murucipal Airport and as tho se laws and regu lation s may be amended from time to time. Solicitation of donations or operation of a bu sines s or other commercial enterprise not contemplated by this Pe1mit is prorubited wi tho ut the written consent of City. No person may repair an aircraft. aircraft engine, propeller, o r apparatus in an area of the Airport other than that specifically des ignated 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 mav 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 Pem1ittee on the Airport, that perfo1m any repairs or activities authorized under this Pennit act in a manner that ensures the safety of people and the Airpo1t , the protection of public health and the environment, and the safety and integrity of the Airport and any premi ses on the Airp01t. Perrnittee shall employ qualified personnel and maintain equipment suffi cient for the purposes of this provision. The Permittee shall immediately notify City of any condi tion, problem, malfunction, or other occ utTence that threatens the safety of th e Airpo1t , the safety of persons usin g the Airport, the public health or the environment, o r the safety or integrity of any premises on the Airport. Special Use Permit-Pacific Star Seafoods, Inc. -Fish Haul Page 2of8 Page 155 of 200 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 Pennittee under this Pem1it. 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 d is continue 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 Pennittee'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 han.dling 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. Pennittee is further responsible to provide worker's compensation insurance for any subcontractor who directly or indirectly provides services to Pem1ittee 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/c01poration currently rated "A-" or better by A.M. Best. 11. Pennittee shall submit to the City proof of continuous insurance coverage in the fom1 of insurance policies, ce1iificatcs, endorsements, Special Use Permit-Pacific Star Seafoods, Inc. -Fish Haul Page 3 of 8 Page 156 of 200 or a combination thereof, and signed by a perso n authorized by the insurer to bind coverage on its behalf. 111. Permittee shall request a waiver of subrogation against City from Perrnittee 's insurer and the wa iver of s ubrogation , where possible , sha ll be provided at no cost to City. iv. Provide the City with notification at least thirty (30) days before any tem1ination , cancellation , or material change in insurance coverage of any policy required hereunder. v. Evidence of insurance coverage must be submitted to City by June 1, 2017 . The effective date of the insurance shall be no later than June 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 rev ision on reasonable a11d 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. Pemuttee shall provide all proper safeguards and shall as sume aJI risks incurred in its activities on and access to the Kenai Municipal Airpo1t and its exercise of the privileges granted in this Pe1111it. 11. Indemnity, Defend, and Hold Harmless Agreement. Pennittee agrees to fully indemnify, defend , and hold harmles s, 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 provis ion (hereafter collectively referred to as "Liabilities"), to which any or all of them ma y be subjected, to the extent such Liabilities are caused by or result from any negligent act or omission or willful misconduct of the Pennittee in connection w ith or arising from or out of Permittee's activities on or use of the Premises, Permittee's access to the Kenai Municipal Airpo1i, and/or Pennittee 's exercise of the p1ivileges granted in this Penn it. This shall be a continuing obligation and shall remain in effect after termination of this Permit. Special Use Permit-Pacific Star Seafoods, Inc. -Fish Haul Page 4of8 Page 157 of 200 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 too ls available on the Premises and at the airport in order to maintain a fuel spill and response capabi lity. Pe1mittee shall be liable for any damage caused by and costs associated with any spill, the cleanup of any spill , or the discharge of petroleum products or hazardous materials du e to Perrnittee'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 Res ponse Plan located in the Pem1ittee 's fuel dispensing equipment at all times. Pe1mittee mu st comply with the Airp011's Storm Water Pollution Prevention Plan as appropriate to Permittee 's activities. Permittee shall not store any persona l property, sol id waste, petroleum products, Hazardous Materia l as defined by 14 CFR § 171.8 , hazardous waste (igni table, corrosive, reacti ve, or toxic) or any hazardo u s substance on any portion of the Airp011. 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 possibi li ty of fine and imprisonment for knowi ng violations. Permittee sha ll immediately remove the material in the event of sp illage or dripping of gaso line , oil, grease, or any other material which may be unsightl y or detrimental to the pa ve ment or surface in or on any area of the Ai11Jort . Permittee may not construct or in stall any above-ground or underground fuel storage tanks or dispensing sys tems at the Airpo11. No person shall smoke on an aircraft-parking ramp , inside an aircraft h angar, or w ithin fifty feet (50') of any aircraft fuel facility or fue l truck. Permittee is subject to FAA Advisory Circular 150/5230-4 Aircraft Fuel Storage , Hand ling , and Di spensing on Airpo1ts , the National Fire Protection Associations ' "Standard for Aircraft Fueling Servicing" in NFP A 40 7 ( 199 6 vers ion), and the current version of the International Fire Codes. All inspections of fuel facilities , by City or other re g ulating entities to which Permittee is s ubj ect, shall be conducted to assure compliance with the fire safety practices li sted in these referenced documents. 13 . Hazardous Substances and Materials. Pe1mittee shall conform and be subject to the requi rements of 14 CFR § 13 9 .321 rega rdin g the handling and storage of ha zardou s substances and materials. Special Use Permit-Pacific Star Seafoods, Inc. -Fish Haul Page 5of8 Page 158 of 200 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 recogni zes 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 unju stly 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 Airp01i. 15. Licenses and Permits . Permittee shall obtain and maintain all r equired federal, state, and local licenses, ce1iificates , and other documents required for its operations under the Pe1mit. 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 federa l, state, and City statutes, ordinances, and regulations in effect during the term of thi s Permit. Fmiher, Pem1ittee s hall comply with all applicable requirements imposed on the Airp01i 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 ha s 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 Pennittee. 19. No Joint Venture. C ity shall not be construed or held to be a pa1iner or joint venturer of Permittee in the conduct of its business or activities on the Premises or el sewhere 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 ex ercise suc h terms, condition s, or requirements. 21. Personalty . Permittee shall remove any and all personal prope1iy , including all vehic les, from the Premises at the termination of this Pe1mit (or any renewal thereof). Personal prope1iy placed or used upon the Premises will be removed and/or impounded by the C ity, if not removed upon te1mination of this Permit and when so removed an d/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 $25.00 per da y . The City of Kenai is not responsible for any damage to or theft of any personalty of Permittee o r of its customers. Special Use Permit-Pacific Star Seafoods, Inc. -Fish Haul Page 6of8 Page 159 of 200 22. Termination; Default. This Permit may be terminated by either patiy hereto by giving thi11y (30) days advance written notice to the other party. C ity may terminate the Permit immediately, or upon notice shorter than thirty (30) days, to protect public health and safety or due 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 sha ll make payment within thirty (30) days following the end of each month and without demand or invoicing from City. Pennittee shall also provide Airport Administration with monthly certified gross take-off weight reports within ten ( 10) 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 996 11. 24. lmpoundment. At the discretion of the Airport Manager, City may impound any aircraft parked on the Premises after termination of this Pem1it. Impoundment may be accomplished by affixing a seal to the door of the a ircraft or the moving of the aircraft for impoundment purposes. Inconvenience or drunage that may result from such movement will be at the ri sk of Pem1ittee . 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 ninety (90) days after impoundment sha ll 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 c irculation in that area fo r at least once during each of three (3) consecutive weeks not more than thirty (30) days nor less than seven (7) days before the time of the auction. 25. Definitions. As used in this Permit, "Permittee" means Pacific Star Seafoods, Inc .. and where the context reasonably indicates, its officers, agents , and employees . "Airport" means the Kenai Municipal Airport. CITY OF KENAI PACIFIC STAR SEAFOODS, INC. Paul Ostrander Date Nate Berga Date Its: City Manager Its: Plant Manager Special Use Pe1111it-Pacific Star Seafoods, Inc. -Fish Haul Page 7of8 Page 160 of 200 ACKNOWLEDGMENTS STATE OF ALASKA ) ) SS . THIRD JUDICIAL DISTRJCT ) 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 A laska My Commission Expires : ____ _ STA TE OF ALASKA ) ) SS . THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this __ day of 2017 , the foregoing instrument was acknowledged before me by NATE BERGA , Plant Manager, Pacific Star Seafoods , Inc., an Alaska corporation , on behalf of the corporation. Approved as to Fmm: Scott Bloom C ity Attorney Notary Public for Alaska My Commission Expires: ____ _ Special Use Permit--Pacific Star Seafoods , Inc. -Fish Haul Page 8of8 Page 161 of 200 / ·/ \ ( 'lf't~!~':tlXl•_H\'f:.i'}l~~~ f ,-' (/) "O 0 .£2 ro Q) (/) ...... m -(/) (..) '+= ·u ro a.. , J ==========~ s: ___ 1'::'.".". --·-~- RUN WAV Pft0lEC110N lOM~ APPRO"CH St.OPE 20: 1 ~~ F'BO #7 . fi7'..,.-~.A suan. Y"'~~ · ARf'F /SRE TRACT 3 . --· , $ / 'flrA"' I"_,,,,_,,,,~ / ,,. " \ FISH HAUUCARGO SPOTS \ <( Kenai Municipal Airport ....., ·15 305 N. Willow , Suite 200 «c x Kenai, Alaska 99611 UJ ..4!1iiil!llii l!UnilllMlllll4it.Ql/f:i; , -~ Page 162 of 200 210 Fidalgo Avenue, Kenai, Alaska 99611-7794 Telephone: 907-283-7535 / Fax: 907-283-3014 www.kenai.city MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: FROM: Jamie Heinz, Acting City Clerk DATE: May 31, 2017 SUBJECT: Parks & Recreation Commission Appointment ______________________________________________________________________ With Shauna Thornton’s resignation from the Parks & Recreation Commission on May 2, 2017, the Parks & Recreation Commission currently has a vacancy that needs to be filled. Jennifer Joanis has submitted an application expressing interest in filling the vacancy. The term expires December 2019. Mayor Gabriel has requested this applicant be added to the meeting agenda for her nomination and consideration by Council for confirmation. A committee/commission vacancy shall be filled by nomination of the Mayor and confirmation by the Council (KMC 1.90.010). Your consideration is appreciated. Page 163 of 200 'V/ffar «1/t/t, a Po..f~ e'tff «1/t/t, a f"atu.J<-e JI 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 · Christine Cunningham, Assistant to City Manage ~ May 31, 2017 C ity Clerk Recruitment The attached City Clerk position announcement has been posted on the City of Kenai website as well as advertised as follows : Peninsula Job Center Alaska Municipal League Fairbanks Daily News-Miner (5/31, 6/4) Alaska Association of Municipal Clerks International Institute of Municipal Clerks Pen insula Clarion (5/28 , 5/31 , 6/2 , 6/4, 6/9) Alaska Dispatch (5/28, 5/31, 6/4) Below is a proposed (genera l) timeline and process for the C ity Clerk recru itment and selection: May23 June 16 June 19 June 20 June21 * June 26 July 5* July 10 August 2 * August 5 Advertise Position (Posting Period of 5/23 -6/16) Application Deadline/ Pos ition Closes Screen Applications for Minimum Qualifications Forward Applications & Proposed Interview Questions to Council for Review Council Review of Applicants/Questions and Develop Short List Schedule Interviews/ Reference and Background Checks Council Conducts Interviews and Discusses Interviewees Follow-Up Interviews Scheduled, if necessary Council Selects Successful Candidate Finalize Recruitment and Make Offer *City Council Meeting If Council approves the above timeline, it wi ll allow for a m id-August start date, however, if Council wishes to schedule a Special Meeting to conduct interviews or discuss candidates , t he recruitment could be finalized as early as m id-July. Attachment Page 164 of 200 CITY OF KENAI, ALASKA Position Announcement City Clerk City Clerk . Salary Based on Experience. The City Clerk is appointed by and reports to the Mayor and the City Council and serves as clerical officer of the Kenai City Council The Clerk is responsible for administrative support to the Mayor and Council, and works with the broadest level of independence in supervising City elections, administration of certain permitting and licensing programs , and records management. This position requires attendance at City Council meetings, daily contact with the public and outside agencies . In the past, the Clerk has been required to reside in the City of Kenai , and moving expenses may be reimbursable subject to negotiation at the time of an offer of acceptance of appointment. The City of Kenai has been nationally recognized as an All- America City in 1992 and 2011 , and is located on the Kenai Peninsula where the world- famous Kenai River meets Cook Inlet. Position announcement, job description and application are available through the Alaska Job Center Network, (907 ) 335-3010. Submit resume and City of Kenai application form by June 16 , 2017 to Peninsula Job Service, 11312 Kenai Spur Hwy., Kenai , AK 99611. The City of Kenai is an equal opportunity employer. For more information about the City of Kenai, visit our home page at www.kenai .city Page 165 of 200 TITLE: SUPERVISOR: NO. SUPERVISED: NORMAL HOURS/WK: SERVICE TYPE: CITY OF KENAI OFFICE OF THE CITY CLERK CITY CLERK CITY COUNCIL 1 Monday through Friday 8:00 a .m. -5 :00 p .m. but also requires frequent evening assignments EXEMPT (Supervisory and Professional) GENERAL DESCRIPTION The City Clerk is appointed by and reports to the Mayor and the City Council. The appointee serves as clerical officer of the Council and performs all duties and assumes all responsibilities required by Alaska Statutes, the City Code and the Charter of the City of Kenai. The Clerk works with the broadest level of independence with only guidelines established for final results . Areas of responsibility include provision of administrative support to the Mayor and Council , supervising City elections, administration of certain permitting and licensing programs, and records management. This position requires daily contact with the public, other City employees, and outside agencies. ESSENTIAL DUTIES AND RESPONSIBILITIES 1. Manage all functions, operations, activities and personnel in the Office of the City Clerk. 2 . Attends all meetings and work sessions of the Council as well as meetings of the Planning and Zoning Commission; serves as clerical officer of the Council and keeps the journal of proceedings . 3. Prepares agendas and packets for council meetings (including work sessions and special meetings) and gives notice of the time and place of all public meetings (including those of boards and commissions) in accordance with state and lo cal public notice requirements. 4. Supervises City elections, assures compliance with the Federal Voting Rights Act of 1965 (as amended), assists with state elections , and acts as voter registrar for the State of Alaska . 5 . Acts as liaison between the City Council , administrative departments, state and federal agencies , and the general public. 6. Pro vides for the codification of City ordinances . 7. Responsible for the management of all City records development and implementation of a Records Retention Program , including retention schedules and procedures for inventory , storage, and destruction of records as necessary . Page 166 of 200 8 . Maintains custody of the official city seal and attests to all deeds, contracts and other legal documents of the City. 9 . Maintains and keeps a correct and up-to-date record of the City boundaries and changes to the City boundaries. 10. Maintains Municipal Cemetery burial records and assigns plots upon request. 11 . Maintains and provides copies upon request of official records and documents, including all current contracts of the City. 12. Prepares and administers the annual budget for the City Council, the City Clerk and the Records Management Division . 13. Administers oaths of office and acts as notary public. 14. Provides necessary transcripts and certifications for bond issues. 15. Composes proclamations and resolutions as requested . 16. Acts as parliamentary advisor for the City Council. 17. Administers the petition process for initiative, referendum and recall , including preparation, issuance and certification of the petitions. 18. Administers the Local Improvement District (LID) petition process and maintains files of current LIDs . 19. Serves as secretary to the Board of Adjustment and other boards of appeal. 20. Administers perm itting and licensing programs for the City. 21 . Performs other related duties as requested by the City Council or as required by law. MINIMUM QUALIFICATIONS 1 . A Bachelor's degree in public administration or an equivalent combination of experience and training displaying at least five (5) years of high level administrative and/or management experience requiring independent judgment and initiative, preferably in the area of municipal government. 2. Certified Municipal Clerk (CMG) certification within three (3) years of appointment. Appointee must be familiar with state and local legislative and election procedures . Page 167 of 200 3 . Possess or obtain a regular or limited governmental notary commission within thirty (30 ) days of employment. 4. Possess or obtain a valid Alaska driver's license w ithin thirty (30) days of employment and p rior to operating a City vehicle . Applicants will be required t o submit a Division of Motor Vehicles re cord upon request. 5. The appli cant (or appointee after hire) must pass a background investigation , including but not limited to a criminal background check. 6 . The applicant must possess any combination of training and ex perience that provide the applicant with the know ledge, skill , and ability to perform the essential job functions. 7 . The appointee must be available to work varying schedules including wee kend days and evenings, City holidays a nd the employee may be asked to respond to emergency call outs when available . WORKING ENVIRONMEN T The work environment is typically in an indoor office and community room setting , adequately heated , lighted , and ventilated . The City Clerk must work during daytime and nighttime hours. The employee must attend public meetings, often at night. The appointee must occasionally travel to other areas in the community, particularly public office buildings. PHYSICAL DEMANDS While performing the duties of this job , the employee is regularly required to communicate orally and to use hands dexterously to operate office equipment (e .g ., computers , telephones, photocopiers , keyboards , scanners, and other general office equipment). The employee must be able to communicate orally in person and on the telephone . The employee is frequently required to sit for long periods of t ime and is occasionally required to stand , walk , stoop , bend, crouch , lift, and reach with hands and arms. Specific vision abilities required include close vision and ability to adjust focus . MISCE LLANEOUS INFORMATION The City of Kenai is an equal opportunity employer. Employment is based on qualifications free of personal and political considerations , with equal opportunity for all , with no discrimination on the basis of race , co lor, religion , se x, national origin , age, disability, marital status , changes in marital status , pregnancy, parenthood , geneti c information or any other basis prohibited by law. Review and Approv al: Hu man Res o urces City Attorney City M anager l nitia ls/Sig natu r e Dat e Page 168 of 200 KENAI AIRPORT COMMISSION MAY 11 , 2017 – 6:00 P.M. KENAI CITY COUNCIL CHAMBERS CHAIR GLENDA FEEKEN, PRESIDING MEETING SUMMARY 1. CALL TO ORDER Chair Feeken called the meeting to order at 6:00 p.m. a. Pledge of Allegiance Chair Feeken led those assembled in the Pledge of Allegiance. b. Roll was confirmed as follows: Commissioners Present: Commissioners Absent: G. Feeken, J. Bielefeld, C. Henry, P. Minelga, D. Pitts J. Zirul, K. Dodge Staff/Council Liaison Present: Airport Manager M. Bondurant, Airport Assistant E. Shinn, Council Member H. Knackstedt A quorum was present. c. Agenda Approval MOTION: Commissioner Bielefeld MOVED to approve the agenda and Commissioner Pitts SECONDED the motion. There were no objections; SO ORDERED. 2. PERSONS SCHEDULED TO BE HEARD – None. 3. UNSCHEDULED PUBLIC COMMENT – None. 4. APPROVAL OF MEETING SUMMARY a. April 13, 2017 MOTION: Commissioner Bielefeld MOVED to approve the meeting summary from April 13, 2017 and Commissioner Minelga SECONDED the motion. There were no objections; SO ORDERED. 5. UNFINISHED BUSINESS a. Discussion/Recommendation – Master Plan Update Page 169 of 200 Airport Commission May 11, 2017 Page 2 of 3 It was reported that the Technical Advisory Committee was meeting May 12 to discuss chapters nine and ten. 6. NEW BUSINESS a. Discussion/Action – Special Use Permit to CPD Alaska, LLC Staff pointed out that the permit would provide for 35,000 square feet for aviation fueling on the apron. MOTION: Commissioner Bielefeld MOVED to approve the Special Use Permit to CPD Alaska, LLC and Commissioner Minelga SECONDED the motion. There were no objections; SO ORDERED. b. Discussion/Recommendation – Special Use Permit to Evert’s Air Fuel It was noted that the Special Use Permit was for use of 12,000 square feet for aircraft fueling on the apron. MOTION: Commissioner Bielefeld MOVED to approve the Special Use Permit to Evert’s Air Fuel and Commissioner Minelga SECONDED the motion. There were no objections; SO ORDERED. c. Discussion/Recommendation – Special Use Permit to Evert’s Air Fuel Staff reported that the Special Use Permit was for 30,000 square feet for aircraft loading and parking. MOTION: Commissioner Bielefeld MOVED to approve the Special Use Permit to Evert’s Air Fuel and Commissioner Minelga SECONDED the motion. There were no objections; SO ORDERED. d. Discussion/Recommendation – Revision to Airport Aircraft Tie Down Rates Airport Manager M. Bondurant recommended eliminating the option of annual payment of tie- down fees as it offered a discount. MOTION: Commissioner Pitts MOVED to approve the elimination of a discounted rate for aircraft tie-down and Commissioner Henry SECONDED the motion. VOTE: YEA: Feeken, Pitts, Henry, Minelga NAY: Page 170 of 200 Airport Commission May 11, 2017 Page 3 of 3 Commissioner Bielefeld noted he had a conflict of interest and abstained from voting. MOTION PASSED. 7. REPORTS a. Airport Manager – reported on the following: • Airport Marking Project beginning; • Runway action meeting was held May 10; • Float Plane Basin opened May 8; • Airport Operations staff cleaning the T-33. b. City Council Liaison – reported on various actions at recent Council meetings. 8. NEXT MEETING ATTENDANCE NOTIFICATION – June 8, 2017. Commissioner Minelga noted he would be unable to attend the meeting. 9. COMMISSIONER COMMENTS AND QUESTIONS – None. 10. ADDITIONAL PUBLIC COMMENT – None. 11. INFORMATION ITEMS – None. 12. ADJOURNMENT There being no further business before the Commission, the meeting was adjourned at 6:37 p.m. Meeting summary prepared and submitted by: _____________________________________ Jamie Heinz, CMC Acting City Clerk Page 171 of 200 KENAI HARBOR COMMISSION MEETING MAY 8, 2017 – 6:00 P.M. CITY HALL COUNCIL CHAMBERS CHAIR SHAUNA THORNTON, PRESIDING MEETING SUMMARY 1. CALL TO ORDER & ROLL CALL Commission Chair Thornton called the meeting to order at 6:00 p.m. Roll was confirmed as follows: Commissioners present: B. Peters, J. Desimone, S. Thornton, C. Hutchison, R. Koch, N. DuPerron Commissioners Absent: G. Greenberg Staff/Council Liaison present: Public Works Director S. Wedemeyer, City Manager P. Ostrander, Council Member G. Pettey A quorum was present. 2. AGENDA APPROVAL MOTION: Commissioner Hutchison MOVED to approve the agenda with the addition of the manager as Persons Scheduled to be Heard and agenda item number correction; Commissioner Peters SECONDED the motion. There were no objections; SO ORDERED. 3. APPROVAL OF MEETING SUMMARY a. April 10, 2017 MOTION: Commissioner Peters MOVED to approve the meeting summary of April 10, 2017 and Commissioner Koch SECONDED the motion. There were no objections; SO ORDERED. 5. PERSONS SCHEDULED TO BE HEARD a. City Manager, Paul Ostrander City Manager, Paul Ostrander thanked the Commission for their service and provided a brief overview of his past. 6. UNFINISHED BUSINESS – None. 7. NEW BUSINESS Page 172 of 200 Harbor Commission Meeting May 8, 2017 Page 2 a. Discussion – Glaser’s process to Determine Harbor Commission’s Future Commissioner Koch discussed the Glaser’s Process provided in the laydown and led the Commission through the process and suggested a few work sessions; individuals to be invited to the work sessions were identified 8. REPORTS a. Public Works Director – S. Wedemeyer noted the boating facility had been opened. b. Commission Chair – S. Thornton noted she had resigned and was moving to Sitka; thanked the Commission for their work. c. City Council Liaison – G. Pettey noted the Bluff Erosion Project had been delayed; thanked Commissioner Thornton for her service. 9. NEXT MEETING ATTENDANCE NOTIFICATION – June 12, 2017 10. COMMISSIONER COMMENTS/QUESTIONS Commissioner Peters thanked Councilor Pettey for the update on the Bluff Erosion Project; noted he was interested in the sale of the Dragseth property; thanked Commissioner Thornton. Commissioners DuPerron, Desimone, and Hutchison echoed gratitude to Commissioner Thornton 11. PERSONS NOT SCHEDULED TO BE HEARD – None. 12. INFORMATION – None. 13. ADJOURNMENT There being no further business before the Commission, the meeting was adjourned at 7:15 p.m. Meeting summary prepared and submitted by: _____________________________________ Jamie Heinz, CMC, Acting City Clerk Page 173 of 200 KENAI PARKS & RECREATION COMMISSION MAY 4, 2017 CITY HALL COUNCIL CHAMBERS 7:00 P.M. CHAIR CHARLIE STEPHENS, PRESIDING MEETING SUMMARY 1. CALL TO ORDER & ROLL CALL Chair Stephens called the meeting to order at 7:05 p.m. Roll was confirmed as follows: Commissioners present: C. Stephens, N. Widmayer, J. Halstead, T. Wisniewski, J. Hudson, S. Thornton Commissioners absent: Staff/Council Liaison present: Parks & Rec Director B. Frates, Council Liaison T. Navarre A quorum was present. 2. AGENDA APPROVAL MOTION: Commissioner Widmayer MOVED to approve the agenda; Commissioner Hudson SECONDED the motion. There were no objections; SO ORDERED. 3. APPROVAL OF MEETING SUMMARY a. April 6, 2017 MOTION: Commissioner Widmayer MOVED to approve the meeting summary of April 6, 2017 and Commissioner Thornton SECONDED the motion. There were no objections; SO ORDERED. 4. PERSONS SCHEDULED TO BE HEARD – None. 5. PERSONS PRESENT NOT SCHEDULED – None 6. UNFINISHED BUSINESS – None 7. NEW BUSINESS a. Bleachers for Steve Shearer Memorial Ball Park Parks and Recreation Director B. Frates reported that the Kenai Rotary Club was interested in applying for a grant, which could be utilized for the purchase of a bleacher. Director Frates recommended utilizing FY18 funds to match the grant and purchase two. There was discussion regarding the need for replacement and advantages of ordering four rather Page 174 of 200 Parks and Recreation Commission Meeting April 6, 2017 Page 2 than two. MOTION: Commissioner Halstead MOVED to request an appropriation from Council in the FY18 budget for the purchase of four bleachers; Commissioner Widmayer SECONDED the motion. There were no objections; SO ORDERED. 8. REPORTS a. Parks and Recreation Director – Parks and Recreation Department Director Frates reported on the following: • Summer crews were set to begin June 5; • Ball fields were up and running; • Red Line Sports getting prepped for summer hockey camp; • Crews busy turning on water, opening restrooms, and clearing sand off turf areas; • Donation of metal fish art for display. b. Commission Chair – Commission Chair Stephens noted administration from Kaleidoscope School was appreciative of the play equipment for younger children at Municipal Park. c. City Council Liaison - Council Member Navarre thanked Commissioner Thornton for her service. 9. NEXT MEETING ATTENDANCE NOTIFICATION – June 1, 2017 It was requested that the June meeting be cancelled; next meeting August 3. 10. COMMISSION QUESTIONS & COMMENTS – None 11. PERSONS PRESENT NOT SCHEDULED TO BE HEARD – None 12. INFORMATION – None. 13. ADJOURNMENT There being no further business before the Commission, the meeting was adjourned at 7:45 p.m. Meeting summary prepared and submitted by: _____________________________________ Jamie Heinz, CMC Acting City Clerk Page 175 of 200 CITY OF KENAI PLANNING & ZONING COMMISSION CITY COUNCIL CHAMBERS MAY 24 , 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, G. Greenberg, V. Askin, J. Twait Staff/Council Liaison present: City Planner M. Kelley, Acting City Clerk J. Heinz, and Council Liaison B. Molloy A quorum was present. c. Agenda Approval Commission Chair Twait noted the following revisions to the packet: Add to Item 6. a. Resolution PZ17-10 • Correspondence from Michael and Joyce Nelson Add to Items 6. b. – g. Resolutions PZ17-12 thru PZ17-16, and PZ17-19 • Memo from staff MOTION: Commissioner Springer 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 Greenberg 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 Page 176 of 200 Planning and Zoning Commission Meeting May 24, 2017 Page 2 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, K. Peterson, D. Fikes 2. *APPROVAL OF MINUTES: May 10, 2017 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. PZ17-10 - Application for a Conditional Use Permit to operate an approximately 500- square-foot Marijuana Cultivation Facility, Limited, within an existing approximately 576 square foot detached garage; located on the property known as 1030 Angler Drive, Kenai, AK 99611, and further described as Lot 2, James H Cowan Subd. Application submitted by: Kathryn Staskon, 1030 Angler Dr., Kenai, Alaska 99611. City Planner Kelley reviewed his staff report provided in the packet noting the Conditional Use Permit would allow a Marijuana Cultivation Facility, Limited in a detached garage, which, based on the review of criteria found that the permit could be approved with the following conditions: • Further development of the property shall conform to all Federal, State, and local regulations; • A building permit will be required for the construction of the Commercial Marijuana Establishment as shown on the submitted floor plan and to recognize the construction of the existing detached garage; • Prior to operation of the facility, an Encroachment Permit for the existing detached garage will need to be reviewed and approved by the Planning Commission; • Prior to operation of the facility, the property owner shall submit a copy of the approved and fully executed license for the Marijuana Cultivation Facility, Limited. The applicant shall comply with all regulations as stipulated by the State of Alaska Marijuana Control Board; • There are to be no signs placed on the subject parcel or on the subject Commercial Marijuana Establishment, which advertises its use on the property; • All security lighting for the establishment shall be downcast and shielded; • Pursuant to KMC 14.20.330(e), the establishment shall not emit an odor that is detectable by the public from outside the establishment; • Pursuant top KMC 14.20.150(f), the applicant shall submit an annual report to the City. MOTION: Page 177 of 200 Planning and Zoning Commission Meeting May 24, 2017 Page 3 Commissioner Springer MOVED to approve Resolution No. PZ17-10 and Commissioner Greenberg SECONDED the motion. Commission Chair Twait opened the public hearing. Greg Anderson spoke against the operation of the facility noting most of the residents in the area were against it and that the use didn’t fit with the neighborhood; suggested there was no precedent for the staff’s finding that the property values wouldn’t be affected. Katherine Staskon explained that she had always had a passion for horticulture and the business was an extension of that and being used to make money from home which the guides in the area were also able to do. She pointed out that her business wouldn’t have walk up customers or signage and it wouldn’t be visible from the street that the property was anything but a residence. Ms. Staskon also provided an overview of her business plan and clarification on the state regulations requiring the Conditional Use Permit, security, and testing. Amber Buta, Staskon’s sister, spoke in favor of her sister’s endeavor pointing out that Alaskans came together to allow for commercial marijuana; noted her sister was a responsible and reliable person, was following the legally applicable processes, and seeking the permits to run her business legally. Debra Shuey spoke against the operation of the facility noting that she had testified in the past, when the regulations were being developed, that the areas being allowed for commercial marijuana needed to be thought about; expressed having a cultivation facility in her residential area would be a worst case scenario. Also noted that she was of Baha’i faith, a religion that met in homes and that youth walked the neighborhood streets; expressed concern for the security of the neighborhood. Aaron Langlois spoke in favor of the business noting that his internet based research on land values in other states found that property values were not decreasing but increasing when in proximity to marijuana establishments except warehouses, which did show a decrease; clarified the business was a residential garage. Helen Groeneveld expressed concern about the German Shepherd dogs that the business owner mentioned having and wanted to know if they would be restrained as other residents in the neighborhood walked their dogs. It was confirmed that the business owner would have proper restraining for the dogs. There being no one else wishing to speak, the public hearing was closed. It was clarified that the property met the 40,000 square foot requirement, but not required to as it was a Cultivation Facility - Limited; no fencing required as the entire facility was enclosed; also clarified that driveway easements were forever. It was noted that the nature of the Conditional Use Permit was that if the conditions weren’t met, the permit would go back to the Planning and Zoning Commission for review and that the permittee had to submit annual reports showing compliance. Commissioner Springer noted the application appear to meet the criteria and would be voting in favor. Page 178 of 200 Planning and Zoning Commission Meeting May 24, 2017 Page 4 Commission Chair Twait noted the new industry could be difficult to embrace; felt the application met the criteria. Also noted that the industry needed to be scrutinized and the Conditional Use Permit provided the needed reviews; would be voting in favor. VOTE: YEA: Greenberg, Askin, Twait, Springer NAY: MOTION PASSED UNANIMOUSLY. Commission Chair Twait noted the fifteen-day appeal period. b. PZ17-12 - Application for a Conditional Use Permit to operate an airport utilizing the current/historically use hangar facility on the property, tie downs for small aircraft, staging, light maintenance for small aircraft (up to a Twin Otter) and fueling; located on the property known as 2270 Royal Street, Kenai, Alaska, 99611, and further described as Tract A, Dragseth Subdivision 2016 Addition. Application submitted by PRL Logistics, LLC, 421 W. 1st Ave., Suite 250, Anchorage, AK 99501 City Planner Kelley reviewed his staff report provided for Resolutions PZ17-12, 13, 14, 15, 16, and 19 in the packet noting the permits would allow a proposed private lodge, professional office, and private use airport and, based on the review of criteria, found that the permit could be approved with the following conditions: • Further development of the property shall conform to all Federal, State, and local regulations; • The operation of the Limited Use Airport (Airstrip) shall comply with all regulations of the FAA; • The US Corps of Engineers shall approve the filling or impact to any wetlands; • Prior to operation of the airstrip, PRL, Inc. shall submit an operational plan for review by the City. Every two years following the submittal of the first operational plan, a revised Plan shall be submitted to the City of Kenai for review; any revisions to the operational plan will require approval of the City Manager before their implementation; • The existing airstrip shall remain a grass surface vegetated with Alaska native grasses and there shall be no placement of fill material on the subject parcels without an amendment to the Conditional Use Permit and approval of the Planning and Zoning Commission; • The footprint shall not be expanded without an amendment to the Conditional Use Permit and approval of the Planning and Zoning Commission; • Within 16-months of the issuance of the Conditional Use Permits, the existing post and chain fence that is fronting the dunes shall be extended south to Royal Street by PRL, Inc. The posts and chain fence shall be of similar materials and colors and shall be subject to inspection by the City of Kenai after their installation; • The operation of the Limited Use Airport or Airstrip shall at no time damage or impact the dune area to the west of the Airstrip. There shall be no construction or the placement of any material on or in the dune area. PRL, Inc. shall remedy any damages done to the dunes because of the operation or construction of the Limited Use Airport or Airstrip to the satisfaction of the City of Kenai; Page 179 of 200 Planning and Zoning Commission Meeting May 24, 2017 Page 5 • The loading or unloading of aircraft or airships shall take place during the period between morning civil twilight and the end of evening civil twilight at the south end of the existing Airstrip; • Unless for safety or weather conditions the flight path for all aircraft approaching or departing the Airstrip shall be located over the waters of Cook Inlet; • At no time shall the use of any aircraft or airships endanger any participants of the Personal Use Fishery; • At no time shall there be any hazing or disturbing of any migratory birds utilizing the wetland areas to the north or east of the existing Airstrip; • Until such time as a Subdivision Plat is recorded, the use of that portion of Tract B Dragseth Subdivision and a portion of Government Lots 9-15, inclusive, and a portion of the SE ¼, SE ¼, NE ¼, Section 7, T5N, R11W for a Limited Use Airport and Airstrip shall be restricted to the area shown on Attachment A. • At no time shall members of the public be restricted from accessing the beach area shown on Attachment A as “Area Reserved for Public Access Easement”; • Prior to operation of the restaurant or lodge, the applicant shall submit documentation from the Alaska DEC of approval for the septic and water systems for the Conditional Uses; • Prior to operation of the lodge or bed and breakfast, the City of Kenai Fire Marshal shall inspect the premises compliance with the International Fire Code. Thereafter, the City of Kenai Fire Marshal shall inspect the premises every other year pursuant to KMC 147.20.321; • Until such time as it expires, the Conditional Use Permits shall also be subject to the conditions of approval in the Special Use Permit issued as a part of Resolution No. 2017-20; • Loud music and other loud noises related to assemblage shall not occur between the ours of 8:00 P.M. and 9:00 A.M. Sunday through Thursday and 11:00 P.M. through 9:00 A.M. Friday through Saturday; • Operation of the professional office shall be subject to the requirements of this Conditional Use Permit; • Pursuant to KMC 14.20.150(f), the applicant shall submit annual reports to the City of Kenai. MOTION: Commissioner Springer MOVED to approve Resolution No. PZ17-12 and Commissioner Askin SECONDED the motion. Commission Chair Twait opened the public hearing; there being no one wishing to speak, public hearing was closed. MOTION TO AMEND : Commissioner Springer MOVED to amend by replacing condition #9 to read as follows, “Loading or unloading of all aircraft or airships shall not unreasonable interfere with the enjoyment of neighboring private property given their residential character,” and Commissioner Greenberg SECONDED the motion. It was clarified that the Planning and Zoning Commission or the nuisance laws in Kenai Page 180 of 200 Planning and Zoning Commission Meeting May 24, 2017 Page 6 Municipal Code would determine what was “unreasonable.” VOTE ON THE AMENDMENT: YEA: Greenberg, Askin, Twait, Springer NAY: MOTION PASSED UNANIMOUSLY. VOTE ON THE MAIN MOTION: YEA: Greenberg, Askin, Twait, Springer NAY: MOTION PASSED UNANIMOUSLY. Commission Chair Twait noted the fifteen-day appeal period. c. PZ17-13 Application for a Conditional Use Permit to operate a private lodge in the existing single-family residence which could be used as a bed & breakfast, vacation rental home, hotel, and general living quarters; located on the property known as 2270 Royal Street, Kenai, Alaska, 99611, and further described as Tract A, Dragseth Subdivision 2016 Addition. Application submitted by PRL Logistics, LLC, 421 W. 1st Ave., Suite 250, Anchorage, AK 99501. MOTION: Commissioner Springer MOVED to approve Resolution No. PZ17-13 and Commissioner Askin SECONDED the motion. Commission Chair Twait opened the public hearing; there being no one wishing to speak, public hearing was closed. MOTION TO AMEND : Commissioner Springer MOVED to amend by replacing condition #9 to read as follows, “Loading or unloading of all aircraft or airships shall not unreasonable interfere with the enjoyment of neighboring private property given their residential character,” and Commissioner Greenberg SECONDED the motion. VOTE ON THE AMENDMENT: YEA: Greenberg, Askin, Twait, Springer NAY: MOTION PASSED UNANIMOUSLY. VOTE ON THE MAIN MOTION: YEA: Greenberg, Askin, Twait, Springer Page 181 of 200 Planning and Zoning Commission Meeting May 24, 2017 Page 7 NAY: MOTION PASSED UNANIMOUSLY. Commission Chair Twait noted the fifteen-day appeal period. d. PZ17-14 - Application for a Conditional Use Permit to operate assemblies which could consist of weddings, private parties, and other outdoor events located on the property known as 2270 Royal Street, Kenai, Alaska, 99611, and further described as Tract A, Dragseth Subdivision 2016 Addition. Application submitted by PRL Logistics, LLC, 421 W. 1st Ave., Suite 250, Anchorage, AK 99501 MOTION: Commissioner Springer MOVED to approve Resolution No. PZ17-14 and Commissioner Askin SECONDED the motion. Commission Chair Twait opened the public hearing; there being no one wishing to speak, public hearing was closed. MOTION TO AMEND : Commissioner Springer MOVED to amend by replacing condition #9 to read as follows, “Loading or unloading of all aircraft or airships shall not unreasonable interfere with the enjoyment of neighboring private property given their residential character,” and Commissioner Askin SECONDED the motion. VOTE ON THE AMENDMENT: YEA: Greenberg, Askin, Twait, Springer NAY: MOTION PASSED UNANIMOUSLY. VOTE ON THE MAIN MOTION: YEA: Greenberg, Askin, Twait, Springer NAY: MOTION PASSED UNANIMOUSLY. Commission Chair Twait noted the fifteen-day appeal period. e. PZ17-15 – Application for a Conditional Use Permit to operate professional offices for PRL staff and contractors; located on the property known as 2270 Royal Street, Kenai, Alaska, 99611, and further described as Tract A, Dragseth Subdivision 2016 Addition. Application submitted by PRL Logistics, LLC, 421 W. 1st Ave., Suite 250, Anchorage, AK 99501 MOTION: Page 182 of 200 Planning and Zoning Commission Meeting May 24, 2017 Page 8 Commissioner Springer MOVED to approve Resolution No. PZ17-15 and Commissioner Greenberg SECONDED the motion. Commission Chair Twait opened the public hearing; there being no one wishing to speak, public hearing was closed. MOTION TO AMEND : Commissioner Springer MOVED to amend by replacing condition #9 to read as follows, “Loading or unloading of all aircraft or airships shall not unreasonable interfere with the enjoyment of neighboring private property given their residential character,” and Commissioner Greenberg SECONDED the motion. VOTE ON THE AMENDMENT: YEA: Greenberg, Askin, Twait, Springer NAY: MOTION PASSED UNANIMOUSLY. VOTE ON THE MAIN MOTION: YEA: Greenberg, Askin, Twait, Springer NAY: MOTION PASSED UNANIMOUSLY. Commission Chair Twait noted the fifteen-day appeal period. f. PZ17-16 - Application for a Conditional Use Permit to operate a restaurant and mobile concession; located on the property known as 2270 Royal Street, Kenai, Alaska, 99611, and further described as Tract A, Dragseth Subdivision 2016 Addition. Application submitted by PRL Logistics, LLC, 421 W. 1st Ave., Suite 250, Anchorage, AK 99501 MOTION: Commissioner Springer MOVED to approve Resolution No. PZ17-16 and Commissioner Greenberg SECONDED the motion. Commission Chair Twait opened the public hearing; there being no one wishing to speak, public hearing was closed. MOTION TO AMEND : Commissioner Springer MOVED to amend by replacing condition #9 to read as follows, “Loading or unloading of all aircraft or airships shall not unreasonable interfere with the enjoyment of neighboring private property given their residential character,” and Commissioner Askin SECONDED the motion. VOTE ON THE AMENDMENT: Page 183 of 200 Planning and Zoning Commission Meeting May 24, 2017 Page 9 YEA: Greenberg, Askin, Twait, Springer NAY: MOTION PASSED UNANIMOUSLY. VOTE ON THE MAIN MOTION: YEA: Greenberg, Askin, Twait, Springer NAY: MOTION PASSED UNANIMOUSLY. Commission Chair Twait noted the fifteen-day appeal period. g. PZ17-19 – Application for a Conditional Use Permit to operate an airport to be utilized for small aircraft, airship operations, cargo loading and unloading, light maintenance for small aircraft and fueling; located on property described as a portion of Tract B, Dragseth Subdivision 2016 Addition, and a portion of Government Lots 9 through 15, inclusive, and a portion of the SE ¼ SE ¼ NE ¼, Section Seven, Township 5 North, Range 11 West, Seward Meridian. Application submitted by PRL Logistics, LLC, 421 W. 1st Ave., Suite 250, Anchorage, AK 99501 MOTION: Commissioner Springer MOVED to approve Resolution No. PZ17-19 and Commissioner Greenberg SECONDED the motion. Commission Chair Twait opened the public hearing; there being no one wishing to speak, public hearing was closed. MOTION TO AMEND : Commissioner Springer MOVED to amend by replacing condition #9 to read as follows, “Loading or unloading of all aircraft or airships shall not unreasonable interfere with the enjoyment of neighboring private property given their residential character,” and Commissioner Askin SECONDED the motion. VOTE ON THE AMENDMENT: YEA: Greenberg, Askin, Twait, Springer NAY: MOTION PASSED UNANIMOUSLY. It was clarified that it was unknown when the airstrip was put into use, but had been in place for many years; also noted that the homeowner had been asked to notify the FAA in 2007 but it was unclear whether that happened or not. It was also clarified that when the tower was open, aircraft landing at the airstrip needed tower approval and when the tower was closed, aircraft landed at the airstrip at their own risk. Page 184 of 200 Planning and Zoning Commission Meeting May 24, 2017 Page 10 VOTE ON THE MAIN MOTION: YEA: Greenberg, Askin, Twait, Springer NAY: MOTION PASSED UNANIMOUSLY. Commission Chair Twait noted the fifteen-day appeal period. 7. UNFINISHED BUSINESS: None. 8. NEW BUSINESS: a. Discussion – Ordinance No. 2960-2017 Amending Kenai Municipal Code 14.25.015- Landscaping/Site Plan for Land Clearing, and Kenai Municipal Code14.25.020-Application, to Prohibit Land Clearing of More Than Twenty Percent of a Parcel Without an Approved Landscaping/Site Plan Kelley reported that the ordinance was a stop gap until the ordinance being worked on could be adopted which would likely be next building season. 9. PENDING ITEMS: None. 10. REPORTS: a. City Council – Council Member Molloy reviewed the Action Agenda of the May 17 City Council meeting which was provided in the packet. b. Borough Planning – Borough Planning Commissioner Glendening reviewed actions from the May 22 meeting. c. Administration – City Planner M. Kelley reported on the following: • Properties donated to Habitat for Humanity had been transferred; construction would begin in the summer; • Airport leases that were up for renewal were coming forth; • Kenai Peninsula Housing Initiative had applied for their Conditional Use Permit to build low-income housing; • His office was busy with permitting and projects. 11. PERSONS PRESENT NOT SCHEDULED: None. 12. INFORMATIONAL ITEMS: None. 13. NEXT MEETING ATTENDANCE NOTIFICATION: June 14, 2017 Commissioner Springer and Chair Twait noted they would not be present. 14. COMMISSION COMMENTS & QUESTIONS: None. 15. ADJOURNMENT: Page 185 of 200 Planning and Zoning Commission Meeting May 24, 2017 Page 11 There being no further business before the Commission, the meeting was adjourned at 8:57 p.m. Minutes prepared and submitted by: _____________________________ Jamie Heinz, CMC Acting City Clerk Page 186 of 200 KENAI BEAUTIFICATION COMMITTEE MAY 9, 2017 – 7:00 P.M. CITY HALL COUNCIL CHAMBERS CHAIR LISA GABRIEL, PRESIDING MEETING SUMMARY 1. CALL TO ORDER & ROLL CALL Chair Gabriel called the meeting to order at 7:05 p.m. Roll was confirmed as follows: Members present: Chair L. Gabriel, B. Madrid, S. Peterson, R. Sierer, T. Canady Members absent: Staff/Council Liaison present: Parks and Recreation Operator R. Dodge, Council Liaison J. Glendening. A quorum was present. 2. AGENDA APPROVAL MOTION: Committee Member Canady MOVED to approve the agenda and Member Peterson SECONDED the motion. There were no objections; SO ORDERED. 3. APPROVAL OF MEETING SUMMARY a. April 11, 2017 MOTION: Committee Member Madrid MOVED to approve the meeting summary of April 11, 2017 with the correction of the name of the Council Liaison, and Committee Member Sierer SECONDED the motion. There were no objections; SO ORDERED. 4. PERSONS SCHEDULED TO BE HEARD – None. 5. UNFINISHED BUSINESS a. Discussion – Volunteer Plant Day It was decided Committee Member Sierer would be in charge of the flower beds at Municipal Park and Carrs Mall, Members Gabriel and Madrid would be in charge of the flower beds near ReMax and the Fire Station, and Members Peterson and Canady would be in charge of the flower beds in Leif Hansen Park. 6. NEW BUSINESS b. Discussion – Beautification Brochure It was noted the overall design was liked; there was suggestion to make the photos larger, include photos of static displays, gazebos, and Wildflower Field. It was also suggested that the photos be tagged. Page 187 of 200 Beautification Committee Meeting May 9, 2017 Page 2 7. REPORTS a. Parks and Recreation – Director B. Frates reported on the following: • Provided an update on summer hiring; • Had eighty entries for the Pathways to Poetry project. b. Committee Chair – None. c. City Council Liaison – J. Glendening provided an update on the actions from the May 3 council meeting; thanked the committee for their work. 8. NEXT MEETING ATTENDANCE NOTIFICATION – September 12, 2017 MOTION: Committee Member Sierer MOVED to move the next meeting to August 8 with a garden tour and Committee Member Madrid SECONDED the motion. There were no objections; SO ORDERED. 9. COMMITTEE MEMBER QUESTIONS AND COMMENTS Committee Member Sierer noted repairs were needed for some of the circle planters. 10. PERSONS NOT SCHEDULED TO BE HEARD – None. 11. INFORMATION – None. 12. ADJOURNMENT There being no further business before the Committee, the meeting was adjourned at 7:53 p.m. Meeting summary prepared and submitted by: _____________________________________ Jamie Heinz, CMC, Acting City Clerk Page 188 of 200 'Vttltife «1/t~ a PaJ'~ tt'tj «1/t~ a rat~ " 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 C: 0 · June1 ,2017 Silver Salmon Derby MOU Between the City and the Kenai Chamber of Commerce and Visitor's Center At the May 17, 2017 City Council meeting, I provided a memo asking the Council to Authorize the City Manager to work with the Kenai Chamber of Commerce to create a partnership with the Chamber through a memorandum of understanding to hold a silver salmon derby. The final draft of that memorandum of understanding is attached for Council review and comment. As stated at the Council meeting of May 17, 2017 any amendments that the Council would like in the memorandum can be made at tonight's meeting . Page 189 of 200 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF KENAI AND THE KENAI CHAMBER OF COMMERCE AND VISITOR'S CENTER This Memorandum of Understanding (this "MOU" or this "Agreement") is entered into this __ day of May, 2017 by and between the CITY OF KENAI, an Alaska Home Rule Municipal Corporation ("City") whose address is 210 Fidalgo A venue, Kenai, Alaska 99611 and the Kenai Chamber of Commerce and Visitor's Center whose address is 11471 Kenai Spur Hwy, Kenai, Alaska 99611 (collectively, "Parties"). 1. Pumose of Agreement The purpose of this Agreement is to outline a cooperative partnership between the Parties to create and hold an annual silver salmon derby in the City of Kenai. 2. Goals 2.1 Create a mutually agreed upon plan for the derby consisting of the following: 2.2 Establish contestant rules for the derby 2.3 Establish dates for the derby to be held 2.4. Establish prize categories and winners criteria 2.5 Identify locations where ticket sales may occur and weigh in station locations 2.6 Coordinate in any other planning aspects of the derby 3. General Provisions 3.1 The Parties agree to work together at all times in good faith, and keep each other informed as to activities of the other. 3.2 Each Party shall be responsible for all costs and expenses associated with the preparation and adoption of this MOU. 3.3 This MOU does not create a financial obligation for either party. Memorandum of Understanding Page 1 of 2 Page 190 of 200 KENAI CHAMBER OF COMMERCE AND VISITOR'S CENTER Johna Beech, President I COO Date: __________ _ ATTEST: Jamie Heinz, Acting City Clerk CITY OF KENAI Paul Ostrander, City Manager Date: __________ _ ACKNOWLEDGMENTS ST A TE OF ALASKA ) ) SS. THIRD JUDICIAL DISTRICT ) The foregoing instrument was acknowledged before me this __ day of 2017, by Johna Beech, President I COO of the Kenai Chamber of Commerce and Visitor's Center. Notary Public for State of Alaska My Commission Expires: _____ _ STATE OF ALASKA ) ) SS. THIRD JUDICIAL DISTRICT ) The foregoing instrument was acknowledged before me this __ day of 2017, by Paul Ostrander, the City Manager of the City of Kenai , an Alaska municipal corporation, for and on behalf of the corporation. Notary Public for State of Alaska My Commission Expires: _____ _ Memorandum of Understanding Page 2 of2 Page 191 of 200 'lftfl~e «1/th a Pa~~ Ct'tj «1/th a Fatfl.l'e " 210 Fidalgo Ave, Kenai, Alaska 99611-7794 Telephone : (907) 283-7535 I Fax: (907) 283-3014 www.kenai.c ity MEMORANDUM TO: FROM: DATE: SUBJECT: Mayor Brian Gabriel and Kenai City Council Paul Ostrander, City Manager Y 0 . June 2, 2017 Guide activities on Watergate Way The following letter from Matt Kelley, City Planner to Mr. Reubin Payne Ill closing code violation case number 061602 is provided for the Council's information. Mr. Chris Every, the neighbor of Mr. Payne , testified at the Council meeting of April 19, 2017 stating that Mr. Payne was operating a business out of his residence in violation of Kenai Municipal Code . After review of the case and follow up discussions with Reuben and Mindy Payne , administration has determined that the activities on the Payne's property are consistent with a Rural Residential Zone and therefore are closing the code violation case . I am availabe to discuss further with any Council members who may have additional questions. Page 192 of 200 "Vt1/"'je with a Past, City with a Future" 210 Fidalgo Avenue, Kenai , Alaska 99611-7794 ~,-111; Telephone : 907-283-7535 I Fax: 907-283-3014 www.ci.kenai.ak .us 199 2 • June 1, 2017 Certified Mail : 7016 1970 0000 3406 4556 Reubin Payne Ill PO Box 1171 Soldotna, Alaska 99669 RE: Operating a Guide Service in Violation of Kenai Municipal Code Section 14 .22 .010 in a Rural Residential Zone CODE VIOLATION CASE NUMBER: 061602 Dear Mr. Payne : On August 2, 2016 , you met with former City Manager, Rick Koch and myself. The purpose of this meeting was to discuss complaints received by the City regarding the operation of a Guide Service at 2535 Watergate Way, Kenai, Alaska , 99611, Kenai Peninsula Borough Parcel No. 04943015 in violation of Kenai Municipal Code Section 14.22.010. At that time , the meeting discussed staff's observation on July 26 , 2016 of approximately eight commercial guide boats parked and being prepared for use on the subject property from Watergate Way. It was also discussed that on the above date, staff observed the clean ing of a commercial guide boat on the subject property with a power washer. Furthermore , it was discussed at the meeting of August 2, 2016, that on May 6, 2010 a similar meeting with City Administration had occurred to discuss the operation of a Guide Service on the subject parcel. At the meeting of May 6 , 2010 it was determined that the storage of 1 to 2 boats at your residence and the operation of the office portion of your guide service could be allowed. At our meeting of August 2 , 2016 , you had indicated that the observation of staff made on July 26, 2016 was a one-time event and that it would not occur in the future. Furthermore, it was discussed that pursuant to Kenai Municipal Code 14.20.230(g)(1) the office portion of your Guide Service is an exempted and allowable use and therefore does not require the issuance of a Home Occupation Permit. You also stated that no clients or employees would be staying or residing at your reside nce or in the detached cabin and that, all clients or employees would be staying at your lodge on Funny River Road in Soldotna . It was stated that preparation for the fishing day of the boats and fishing equipment would occur at your lodge . Routine maintenance of the boats owned and used by the residents of 2535 Watergate Way could be performed at the residence as can any boat owner residing in the City of Kenai. Maintenance was defined as normal routine maintenance of the boat , trailer and motor. You also stated that any cleaning by use of a power washer would be limited to between the hours of 9:00 AM and 5:00 PM . Page 193 of 200 CODE VIOLATION CASE NUMBER: 061602 Page 12 Staff reminded you that VIP Subdivision has been declared by the City as a Bear Probl em Area and therefore, no fish waste could be deposited onto or around your property. At the meeting of August 2, 2016, you asked if it would be permissible to store and maintain up to three (3) boats at your residence . At that time you discussed that, your wife Mindy Payne was also a guide and that she would like to store her drift boat at the residence. City Administration felt that the storage of these boats owned a nd used by you and Mindy Payne is allowable, again, as is allowed for any other resident of the City. It was further clarified by City Administration that if clients or employees started staying at your residence or if more boats were to be stored or maintained at yo ur residence, a Conditional Use Permit for a Guide Service would likely be required pursuant to Kenai Municipal Code Section 14.22.010 -Land use Table and Section 14.20.080(c) -Conditional Uses . A Conditional Use Permit would be subject to approval by the Planning and Zoning Commission At the meeting of August 2, 2016 , staff stated t hat they would send you a letter in the spring of 2017 to again clarify our meeting . You subsequently met with the City's new City Manager Paul Ostrander on May 19, 2017 and reaffirmed your activities on the parcel. Code Violation Case Number: 061602 will now be closed. If you have any questions, please feel free to contact me directly. Sincerely, ~~ Matthew Kelley --- City Planner 907-283-8235 mkelley@kenai . city CC: File : Code Violation Case Number: 061602 Page 194 of 200 PURCHASE ORDERS BETWEEN $2,500.00 AND $15,000.00 FOR COUNCIL REVIEW COUNCIL MEETING OF: JUNE 7, 2017 VENDOR DESCRIPTION DEPT. ACCOUNT AMOUNT ZUMAR INDUSTRIES STREET SIGNS AND HARDWARE STREETS OPERATING S UPPLIES 2,8 18.00 NORTH STAR PAVING REPAIR LINWOOD DRIVE WATER REPAIR & MAINTENANCE 13,840.00 AIRPORT RESERVE LEASING NORTHERN HORIZON PROGRAM REVIEW LEGAUAIRPORT PROFESSIONAL SERVICES 9,500.00 J-B STOR N LOK CONEX CONTAINER DOCK OPERATING SUPPLIES 4 ,200.00 FESTIVE OUTFITTERS REFRIGERANT RECREATION OPERATING SUPPLIES 5,750.00 HYDRO SEED WILDFLOWER WOODCOCK'S HYDRO SEEDING GARDEN RECREATION REPAIR & MAINTENANCE 5,472.50 Page 195 of 200 KENAI CENTRAL HIGH SCHOOL May 22 , 2017 Kena i City Council : Kenai Pen i n sula B o ro u g h Schoo l Distr i ct 9583 K e n a i Spur Highway Ke n ai -A la s ka 99611 (907) 283 -2 1 00 Fax: (907) 283-323 0 <:;,~Y,.S OFr:;C. 0v ~ Rece ived MAY 2 4 2017 Alan Fiel ds Princi pal Bri anna Ra ndle As s istant Pr inci pal Ch ris Han s on At hle ti c Director Je sse Se tt lem yer Ac tiv ity Dir ec tor Kena i Central High School is very appreciative of the support it has received from the City of Kenai. The partnerships between the Council and the School have provided outstanding "real life" learning experiences for our students . Th is letter is an introduction of the student selected to fill that vacant pos ition. Brittany Gilman , who will be a senio r at KCHS , will be an excellent Student Representative to the Council. Brittany possesses the knowledge , leadership , and character necessary to fill this position. She is person who gets along with all students and treats everyone with the greatest level of respect. She is always thoughtful and trustworthy in her actions . We are proud to have her selected as the next Kenai Central H igh Sc hool Student Representative to the City Counci l. We have greatly appreciated the support that the City of Kenai has given to our school. Thank you for making a difference in the lives of the young people in our community. Sincerely, Alan Fields , Pr incipal HOME OF THE KARDINALS Page 196 of 200 1 | Page Alaska LNG filing attracts opponents, supporters By Larry Persily lpersily@kpb.us May 30, 2017 (This update, provided by the Kenai Peninsula Borough mayor’s office, is part of an ongoing effort to help keep the public informed about the Alaska LNG project.) While it waits for federal regulators to review its application and request any missing data, the Alaska LNG project has attracted opposition from two national environmental groups — and also letters of support from more than 35 Alaska municipalities and Native corporations, businesses and individuals. The state-sponsored Alaska LNG project applied last month to start the federal environmental impact statement (EIS) process toward approval to construct and operate a North Slope natural gas project, 800-plus-mile pipeline through the state, and liquefaction plant and export terminal on Cook Inlet in Nikiski. The Alaska Gasline Development Corp. (AGDC) has started the multi-year process with the Federal Energy Regulatory Commission (FERC) at the same time it is looking for the customers, investors and partners needed to finance the $45 billion development and justify further state spending on design and permitting efforts. The corporation has close to $100 million from past legislative appropriations — enough to start working with FERC while marketing efforts continue. The deadline was May 22 for parties to file motions to intervene in the FERC proceeding. The Sierra Club and Center for Biological Diversity each filed its own motion to intervene in the proceeding, both raising similar environmental objections against the pipeline, compressor stations and liquefied natural gas plant: increased air pollution and greenhouse-gas emissions, risk to wildlife and disruption of fish habitat. VALDEZ CONTINUES ITS ADVOCACY The city of Valdez, which believes the gas pipeline should end at an LNG plant in its community on Prince William Sound, 170 miles east of Nikiski, was the only Alaska municipality to file a motion to intervene. Valdez has previously submitted two other filings with FERC, arguing that the EIS should take a hard look at requiring the project developer to build in Valdez, not Nikiski. The city claimed in its May 22 motion that Valdez is a lower-risk, lower-cost option than Nikiski, with less “environmental degradation.” In addition, the city told FERC that bringing the project to Valdez would ensure that “its citizens and businesses have access to inexpensive natural gas.” Page 197 of 200 2 | Page The state gasline corporation and the North Slope producers-led team that previously managed the project have all pointed to Nikiski as their preferred site, judged for cost, environmental and construction considerations. FERC has always planned for the EIS to look at the Valdez alternative, and the city’s filing as an intervenor does not change that plan. Intervenors, if accepted by FERC, are allowed to request rehearing of commission orders and challenge final commission decisions in federal court. Their input during preparation of the environmental impact statement, however, is pretty much the same as anyone else — file comments with FERC to put issues, questions and objections on the record to be addressed in the EIS. SIERRA CLUB OBJECTIONS A REPEAT OF 2014 In its motion, the Sierra Club raised the issue of greenhouse-gas emissions not just during project construction and operation but also during natural gas production to feed the LNG plant and from emissions when the gas is burned by the end user. The group has raised the same production-to-consumption issues for other LNG projects reviewed by FERC elsewhere in the country, and has not prevailed in blocking any of those approvals. The Sierra Club raised the same objections against the Alaska venture in 2014 when it protested the project’s application to the Department of Energy for export authority. The department in 2015 dismissed the objections and approved the export request filed by North Slope oil and gas producers ExxonMobil, BP and ConocoPhillips. In its May 22 filing with FERC, the Center for Biological Diversity — based in Arizona, with offices in Alaska and 11 other states — objected to the project on the grounds that it would result in more drilling for natural gas in the Arctic. The organization also objected to the state corporation’s request for expedited FERC review. “The project’s overwhelming size and myriad significant environmental impacts certainly counsel in favor of more review, not less,” the group said. The state has asked FERC to complete the EIS process in 18 months and issue a decision by Dec. 31, 2018. FERC has 90 days from the state’s April 17 application to issue a Notice of Schedule for Environmental Review — a timeline for the EIS — or to request more information from the applicant to fill data gaps. In a conference call with federal and state regulatory agency personnel four days before AGDC filed its application, FERC staff explained they would review the filing and “note which areas need additional information and create a data request for the applicant,” according to notes from the meeting. “An incomplete application could result in FERC issuing multiple data requests.” Page 198 of 200 3 | Page Staff further explained, “Once all information necessary f or the draft EIS is received, writing of the document will begin and FERC will issue a Notice of Schedule for the release date … and the projected date for completion of the f inal EIS.” NO SET SCHEDULE FOR EIS There is no deadline or EIS schedule in federal law; each project is different in its environmental impacts and controversies, and each project sponsor decide s how quickly it wants to respond to data requests from FERC and other federal regulatory agencies. Of the nine FERC-approved LNG export terminals in the Lower 48 states, most were proposed as expansions of existing import terminals that were underutilized as the shale gas boom took out the need to bring in overseas LNG cargoes for North American consumers. And though some required short connecting pipelines for gas deliveries to the liquefaction plant, none of the projects included anything close to the more than 800 miles of pipeline through Alaska. The smallest of the six LNG export terminals under construction is at Lusby, Md., on Chesapeake Bay, where Virginia-based Dominion Energy is adding a single liquefaction train to a 1970s import terminal. Start-up is scheduled for late this year. In part because the project had the advantage of an existing LNG storage facility and marine terminal, and the liquefaction facility is entirely within the fencing of the import operation, the project went through an environmental assessment, not a full environmental impact statement. Even then, the assessment and FERC decision took 18 months, though the project faced strong opposition from many of its neighbors and environmental groups, adding to the regulatory review. LNG projects of similar capacity to the proposed Alaska development took even longer to work their way through FERC. Golden Pass LNG took more than 29 months from date of application to FERC decision late last year. Freeport LNG required almost 32 months from application to approval. Both are on the Texas coast, and both are liquefaction expansions to underutilized LNG import terminals. Freeport LNG is under construction and Golden Pass is waiting on a final investment decision by its owners. OPPONENT RAISES ISSUE OF ENVIRONMENTAL EXEMPTIONS Besides objecting to the Alaska LNG project on environmental-protection issues, the Center for Biological Diversity also noted in its motion to FERC that the state has asked for fast-track consideration and exemptions of several federal regulatory requirements. Alaska Gov. Bill Walker on Feb. 7 wrote President Donald Trump, touting the development’s economic benefits and asking the president to exempt the project from: • All “wetlands compensatory mitigation requirements” of the federal Clean Water Act. • EPA oversight of any programs delegated to the state under the Clean Water Act and Clean Air Act. Page 199 of 200 4 | Page • The National Marine Fisheries Service’s Beluga whale recovery program management conditions in Cook Inlet; and to “re-evaluate and define” with the concurrence of the state the exclusion zone for Beluga protections. The letter also asked for a waiver of the requirement to reimburse the federal pipeline safety agency for its costs incurred in reviewing the project’s construction and operating plans, and requested limits on the agency’s ability to object to the project’s pipeline design plans . The governor’s letter asked that any federal action on the project under the Endangered Species Act “should require concurrence from the state,” and that the president direct the U.S. Army Corps of Engineers not to declare any project areas “with underlying permafrost” as jurisdictional wetlands. In separate comments to FERC on May 22, Gov. Walker reiterated his request for timely action by regulators: “In order to capitalize on export opportunities, monetize the state’s stranded gas resources, and put Alaskans to work, it is imperative the Alaska LNG project be ready to deliver in-service first cargoes by the mid-2020s. To accomplish this, I respectfully request FERC prioritize AGDC’s application.” PRODUCERS, ALYESKA ALSO FILE TO INTERVENE ExxonMobil, BP and ConocoPhillips also filed motions to intervene in the FERC proceeding to ensure their interests are represented in the review — the producers hold the leases on the North Slope fields that would produce gas for the project. Though all three companies decided more than a year ago to pull out of spending more money on the LNG project dur ing a period of low oil and gas prices and weak global LNG market conditions, they have long been supportive of efforts to find an economic way to move the gas to market. A motion to intervene also came from Alyeska Pipeline Service Co., which operates the trans- Alaska oil pipeline system (TAPS). The proposed gas pipeline would “run parallel to and in close vicinity to TAPS for approximately 400 miles from Prudhoe Bay to Livengood,” Alyeska said in its filing. The gas line would cross the oil line at multiple locations and come within 200 feet of the oil pipe at 17 more locations, raising issues that Alyeska said warrants its participation in the FERC review. “Furthermore, given the proximity of the proposed project’s gasline and related facilities to TAPS in several locations, Alyeska’s own regulatory permits and approvals may be significantly affected, including becoming more burdensome,” the company said in its FERC filing. The Fairbanks-based Northern Alaska Environmental Center also filed a motion to intervene, not to take a position on the project, the group told FERC, but rather because of its members’ interests in the project and its environmental, socioeconomic and energy impacts in the state. Page 200 of 200 JUNE 7, 2017 CITY COUNCIL MEETING ADDITIONAL MATERIAL/REVISIONS REQUESTED REVISIONS TO THE AGENDA/PACKET: ACTION ITEM REQUESTED BY Add to Item D.2. Ordinance No. 2961-2017 • Correspondence from C. Freas Acting City Clerk Add to Item D.7. Resolution No. 2017-26 • Supplemental Information City Manager Add Item G. 13. Action/Approval Authorize the City Manager or City Attorney to Obtain an Appraisal for Lawton Acres. Acting City Clerk Add to Item J. 1. City Manager’s Report • Broker’s Opinion of Value – Lawton Acres City Manager Add to Information Firetruck Photos Acting City Clerk Page 2 of 16 Page 3 of 16 Page 4 of 16 Page 5 of 16 Page 6 of 16 Page 7 of 16 Page 8 of 16 Page 9 of 16 Page 10 of 16 Page 11 of 16 Page 12 of 16 Page 13 of 16 Page 14 of 16 Page 15 of 16 Page 16 of 16